Marex Refutes Ningi Research Allegations, Disputes Accounting Claims.

Marex Group Plc has refuted claims from Ningi Research about the quality of its financial reporting. The company denies having off-balance-sheet entities and disputes other allegations made by Ningi. Marex CEO Ian Lowitt said the firm's audit committee is comfortable with its rebuttal and that the impact of the report has been "extremely muted." Despite some client retrenchment, two of the world's largest hedge funds have extended their clearing mandates with Marex.

Marex Group Plc has strongly denied allegations of financial reporting irregularities made by activist short seller Ningi Research. The company maintains that it has no off-balance-sheet entities and disputes the significance of a Luxembourg-based entity to its operations. CEO Ian Lowitt expressed confidence in the firm's audit committee's assessment and stated that the impact of the report has been minimal. Despite some client retrenchment, two major hedge funds have extended their clearing mandates with Marex. The company's shares rose following the rebuttal, but the impact on the stock price remains to be seen.

Marex Group's Q2 earnings report, released on August 13, showed adjusted earnings per share (EPS) of $1.02, beating analysts' expectations of $0.92 per share. Revenue increased by 18.5% to $500.10 million, also surpassing analyst estimates. The company reported a net income of $76.7 million for the quarter. Wall Street's consensus remains bullish on Marex, with an average analyst rating of "buy" and a median 12-month price target of $53.00, about 34.9% above its last closing price of $34.48.

Marex Group's stock has shown resilience despite the short seller's allegations. It has fallen by 12.6% this quarter and gained 10.6% year-to-date. The stock's long-term price trend remains strong, but short and medium-term momentum is weaker. Despite the recent volatility, Marex Group continues to perform well, with earnings and revenue growth outpacing analyst expectations.

References:
[1] https://www.benzinga.com/markets/equities/25/08/47024126/activist-short-seller-ningi-says-marex-group-uses-off-balance-sheet-funds-to-inflate-results-calls-it-house-of-cards-built-on-fake-profits
[2] https://www.bloomberg.com/news/articles/2025-08-13/marex-says-it-rebuts-all-allegations-from-short-seller-report
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3U510J:0-marex-group-plc-reports-results-for-the-quarter-ended-june-30-earnings-summary/