CMC Markets Feels the Heat: Profit Slides 24% as Broker Bets Big on Web3
Despite a strong start to FY2025, CMC Markets is ending the year on a cold note — reporting an 8% revenue drop and a 24% profit decline in the second half. But beyond the numbers, the real story is strategic: CMC is reshuffling its leadership and pivoting toward DeFi and Web3 to future-proof its business. Will it work?
Profits Down, Pressure Up
Revenue for H2 FY2025 came in at £162.7 million, marking the second consecutive decline. Net profit fell to £26.9 million. Competition is clearly biting — from brokers like IG and Plus500 to crypto-first players like Crypto.com and Kraken, who are now invading CMC’s traditional turf.
With retail trading volume plateauing and client acquisition costs rising, even established players like CMC are struggling to maintain growth momentum.
Board Shake-Up Signals Strategic Realignment
- David Fineberg, Deputy CEO since 2019, steps off the board to take on a new role: Global Head of Strategic Partnerships, focusing on alliances like Revolut and StrikeX.
- Laurence Booth joins the board as Executive Director, while Matthew Lewis steps down to focus fully on growing the ANZ region — especially in digital assets.
This realignment suggests CMC is placing its chips on crypto infrastructure and institutional partnerships for its next growth phase.
Web3 or Bust? CMC’s New Vertical Strategy
CMC unveiled a “three-vertical” future:
- Direct-to-Consumer brokerage (D2C)
- Institutional services (B2B)
- Decentralised Finance & Web3
Already launched:
- 24/7 crypto trading
- Enhanced digital asset treasury tools
- Acquisition of StrikeX to bolster blockchain infrastructure
This bold third pillar puts CMC in a race to reinvent itself — from legacy broker to next-gen financial ecosystem. But with share price volatility and earnings pressure mounting, the market isn’t fully convinced just yet.
Conclusion:
With traditional revenue under strain and digital disruption accelerating, CMC’s full-stack Web3 play may be its most ambitious pivot yet. The big question is: can a legacy brokerage move fast enough to compete with the native crypto-first crowd?
