Marex Group plc, a diversified global financial services platform, saw its shares plummet over 5% on Tuesday despite posting a 32% jump in revenue for the third quarter of 2024, as higher costs weighed on profitability.

The company reported revenue of $391.2 million for the three months ended September 30, 2024, up from $296.6 million a year earlier. The increase was driven by strong performance across all its business segments, particularly in Market Making and Agency and Execution, benefiting from favorable market conditions and increased client activity.

However, Marex's reported profit before tax for the quarter rose only 66% to $79.0 million, falling short of analysts' estimates. The company attributed the weaker-than-expected profit growth to higher front office and control costs, as it continued to invest in expanding its geographic footprint, product capabilities, and support functions.