Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended September 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 000-23554 StoneX Group Inc. (Exact name of registrant as specified in its charter) Delaware 59-2921318 (State or other jurisdiction ...

Financial Performance Highlights - StoneX's Q4 2022 operating revenues increased by 50% to $583.4 million compared to Q4 2021[12, 35] - Net income for Q4 2022 surged by 616% to $52.3 million, with diluted EPS at $2.49, up by 592%[12, 35] - Full year 2022 net income reached $207.1 million, a 78% increase, with diluted EPS at $10.01, up by 74%[12] - The company's Return on Equity (ROE) for Q4 2022 was 19.8%, compared to 3.2% in Q4 2021, and 21.0% for the full year 2022, compared to 13.9% in the prior year[12] Segment Performance (Q4 2022) - Commercial segment operating revenue increased by 40% to $185.2 million, with segment income up by 82% to $80.2 million[19, 36] - Institutional segment operating revenue increased by 87% to $258.6 million, with segment income up by 84% to $45.0 million[23, 37] - Retail segment operating revenue increased by 18% to $101.8 million, with segment income up by 70% to $20.2 million[27, 39] - Global Payments segment operating revenue increased by 29% to $44.3 million, with segment income up by 33% to $24.4 million[31, 40] Product Results (Fiscal Year 2022) - Listed Derivatives revenue increased by 11% to $430.5 million, with contract volume up by 10% to 160,609 thousands contracts[10] - OTC Derivatives revenue increased by 45% to $208.3 million, with contract volume up by 16% to 2,968 thousands contracts[10] - Securities revenue increased by 14% to $610.4 million, with Average Daily Volume (ADV) up by 25% to $3,459 million[10] - Global Payments revenue increased by 25% to $167.8 million, with ADV up by 15% to $62 million[10] - FX/CFDs revenue increased by 40% to $339.3 million, with ADV up by 25% to $13,273 million[10]

Start Time: 09:00 January 1, 0000 9:58 AM ET StoneX Group Inc. (NASDAQ:SNEX) Q4 2022 Earnings Conference Call November 22, 2022, 09:00 AM ET Company Participants Sean O’Connor - President and CEO Bill Dunaway - CFO Conference Call Participants Dan Fannon - Jefferies Operator Good day and thank you for standing by. Welcome to the StoneX Group Inc. Q4 Fiscal Year '22 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-a ...

StoneX Group Inc. (NASDAQ:SNEX) Q3 2022 Earnings Conference Call August 4, 2022 9:00 AM ET Corporate Participants Sean O’Connor - President and Chief Executive Officer Bill Dunaway - Chief Financial Officer Conference Call Participants Daniel Fannon - Jefferies Operator Welcome to the FY '22 Third Quarter StoneX Group Earnings Conference Call. At this time, all participants are in listen-only mode. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ FORM 10-Q ____________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to Commission File Number 000-23554 StoneX Group Inc. (Exact name of registrant as specified in its ...

StoneX Group Inc. (NASDAQ:SNEX) Q2 2022 Results Conference Call May 5, 2022 9:00 AM ET Company Participants Sean O’Connor - President, Chief Executive Officer Bill Dunaway - Chief Financial Officer Conference Call Participants Daniel Fannon - Jefferies Operator Welcome to StoneX Group's Second Quarter Earnings Call. All participants will be in a listen-only mode. [Operator Instructions] After the speakers’ presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this ...

Financial Highlights - StoneX Group Inc 的第二季度运营收入为 5.447 亿美元，同比增长 16%[24] - 第二季度净利润为 6400 万美元，同比增长 16%[24] - 调整后的净利润为 6590 万美元，同比增长 18%[12] - 过去 12 个月的运营收入为 18 亿美元，同比增长 20%[13] - 过去 12 个月调整后的净利润为 1.52 亿美元，同比增长 21%[13] Segment Performance (Q2 2022 vs Q2 2021) - 商业部门运营收入为 1.841 亿美元，同比增长 28%[17] - 机构部门运营收入为 2.028 亿美元，同比增长 6%[17] - 零售部门运营收入为 1.2 亿美元，同比增长 17%[17] - 全球支付部门运营收入为 4100 万美元，同比增长 22%[17] Product Results (Q2 2022 vs Q2 2021) - 上市衍生品收入为 1.23 亿美元，同比增长 22%[8] - 场外交易 (OTC) 衍生品收入为 6240 万美元，同比增长 78%[8] - 证券收入为 1.513 亿美元，同比下降 4%[8] - 外汇/差价合约 (FX/CFDs) 收入为 9890 万美元，同比增长 32%[8] Key Metrics - 上市衍生品客户权益为 52.67 亿美元，同比增长 38%[8] - 货币市场基金/联邦存款保险公司 (MMF/FDIC) 扫款余额为 17.51 亿美元，同比增长 29%[8]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) This section provides the company's unaudited financial statements and management's analysis of financial performance and condition [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income statements, statements of comprehensive income, cash flows, and stockholders' equity, along with detailed notes explaining the basis of presentation, accounting policies, and specific financial instrument disclosures [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity at specific points in time | Metric | March 31, 2022 (in millions) | September 30, 2021 (in millions) | Change (in millions) | % Change | | :----------------------------------- | :----------------------------- | :------------------------------- | :------------------- | :------- | | Total Assets | $21,195.7 | $18,839.6 | $2,356.1 | 12.5% | | Total Liabilities | $20,190.1 | $17,935.6 | $2,254.5 | 12.6% | | Total Equity | $1,005.6 | $904.0 | $101.6 | 11.2% | - Cash and cash equivalents increased from **$1,109.6 million** at September 30, 2021, to **$1,299.7 million** at March 31, 2022[9](index=9&type=chunk) - Payables to clients increased significantly from **$7,835.9 million** at September 30, 2021, to **$9,497.8 million** at March 31, 2022[9](index=9&type=chunk) [Condensed Consolidated Income Statements](index=5&type=section&id=Condensed%20Consolidated%20Income%20Statements) This section outlines the company's financial performance over specific periods, including revenues, expenses, and net income Three Months Ended March 31, | Metric | 2022 (in millions) | 2021 (in millions) | Change (in millions) | % Change | | :----------------------------------- | :----------------- | :----------------- | :------------------- | :------- | | Total Revenues | $16,382.7 | $11,244.8 | $5,137.9 | 45.7% | | Operating Revenues | $544.7 | $471.4 | $73.3 | 15.5% | | Net Operating Revenues | $400.3 | $334.2 | $66.1 | 19.8% | | Net Income | $64.0 | $55.3 | $8.7 | 15.7% | | Basic EPS | $3.18 | $2.81 | $0.37 | 13.2% | | Diluted EPS | $3.11 | $2.73 | $0.38 | 13.9% | Six Months Ended March 31, | Metric | 2022 (in millions) | 2021 (in millions) | Change (in millions) | % Change | | :----------------------------------- | :----------------- | :----------------- | :------------------- | :------- | | Total Revenues | $30,724.1 | $20,495.3 | $10,228.8 | 49.9% | | Operating Revenues | $995.2 | $851.5 | $143.7 | 16.9% | | Net Operating Revenues | $714.1 | $590.3 | $123.8 | 21.0% | | Net Income | $105.7 | $74.8 | $30.9 | 41.3% | | Basic EPS | $5.27 | $3.81 | $1.46 | 38.3% | | Diluted EPS | $5.15 | $3.71 | $1.44 | 38.8% | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section details the company's comprehensive income, including net income and other comprehensive gains or losses Three Months Ended March 31, | Metric | 2022 (in millions) | 2021 (in millions) | Change (in millions) | | :----------------------------------- | :----------------- | :----------------- | :------------------- | | Net Income | $64.0 | $55.3 | $8.7 | | Other comprehensive (loss)/gain, net of tax | $(16.9) | $(1.6) | $(15.3) | | Comprehensive income | $47.1 | $53.7 | $(6.6) | - Cash flow hedges resulted in a **$(18.1) million loss** in other comprehensive income for the three months ended March 31, 2022, compared to zero in the prior year[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's cash inflows and outflows from operating, investing, and financing activities Six Months Ended March 31, | Metric | 2022 (in millions) | 2021 (in millions) | Change (in millions) | % Change | | :----------------------------------- | :----------------- | :----------------- | :------------------- | :------- | | Net cash provided by operating activities | $2,102.0 | $665.0 | $1,437.0 | 216.1% | | Net cash used in investing activities | $(24.1) | $(40.4) | $16.3 | (40.3)% | | Net cash provided by financing activities | $222.2 | $46.4 | $175.8 | 378.9% | | Net increase in cash, segregated cash, cash equivalents, and segregated cash equivalents | $2,300.0 | $683.7 | $1,616.3 | 236.4% | | Cash, segregated cash, cash equivalents, and segregated cash equivalents at end of period | $8,809.5 | $5,152.1 | $3,657.4 | 71.0% | - The significant increase in operating cash flow was driven by changes in operating assets and liabilities, notably a **$1,661.9 million increase** in payables to clients and a **$986.3 million increase** in financial instruments sold, not yet purchased[17](index=17&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section details changes in the company's equity, including net income, other comprehensive income, and share transactions Six Months Ended March 31, | Metric | March 31, 2022 (in millions) | September 30, 2021 (in millions) | Change (in millions) | % Change | | :----------------------------------- | :----------------------------- | :------------------------------- | :------------------- | :------- | | Total Equity | $1,005.6 | $904.0 | $101.6 | 11.2% | | Retained Earnings | $788.2 | $682.5 | $105.7 | 15.5% | | Accumulated other comprehensive loss, net | $(43.4) | $(25.1) | $(18.3) | 72.9% | - Net income contributed **$105.7 million** to retained earnings for the six months ended March 31, 2022[23](index=23&type=chunk) - Accumulated other comprehensive loss increased by **$18.3 million** for the six months ended March 31, 2022, primarily due to cash flow hedges[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [Note 1 – Basis of Presentation and Consolidation and Accounting Standards Adopted](index=10&type=section&id=Note%201%20%E2%80%93%20Basis%20of%20Presentation%20and%20Consolidation%20and%20Accounting%20Standards%20Adopted) This note describes the financial statement presentation, consolidation principles, and recently adopted accounting standards - StoneX Group Inc. operates a global financial services network, serving over **52,000 commercial, institutional, and global payments clients** and over **370,000 active retail clients** in more than **180 countries**[24](index=24&type=chunk) - The company adopted ASU 2019-12 (Income Taxes) and ASU 2016-13 (CECL model) on October 1, 2021, and October 1, 2020, respectively. The CECL adoption resulted in a **$6.2 million cumulative-effect adjustment** to retained earnings[33](index=33&type=chunk)[36](index=36&type=chunk) [Note 2 – Earnings per Share](index=12&type=section&id=Note%202%20%E2%80%93%20Earnings%20per%20Share) This note provides the calculation and reconciliation of basic and diluted earnings per share EPS Reconciliation - Three Months Ended March 31 | Metric | 2022 | 2021 | | :----------------------------------- | :----- | :----- | | Net income allocated to common stockholders (in millions) | $62.2 | $53.6 | | Basic weighted-average common shares outstanding | 19,573,871 | 19,112,216 | | Diluted weighted-average common shares outstanding | 20,012,709 | 19,670,539 | - Options to purchase **468,763 shares (2022)** and **212,892 shares (2021)** were anti-dilutive and excluded from diluted EPS calculation for the three months ended March 31[43](index=43&type=chunk) [Note 3 – Assets and Liabilities, at Fair Value](index=12&type=section&id=Note%203%20%E2%80%93%20Assets%20and%20Liabilities,%20at%20Fair%20Value) This note details assets and liabilities measured at fair value, categorized by valuation input levels - The company had no Level 3 assets as of March 31, 2022, and September 30, 2021[52](index=52&type=chunk) - Total assets at fair value were **$5,490.7 million** as of March 31, 2022, with Level 1 inputs accounting for **$12,217.7 million** (before netting) and Level 2 for **$5,235.5 million** (before netting)[67](index=67&type=chunk) - Total liabilities at fair value were **$2,289.2 million** as of March 31, 2022, with Level 1 inputs accounting for **$11,777.7 million** (before netting) and Level 2 for **$2,363.0 million** (before netting)[67](index=67&type=chunk) [Note 4 – Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk](index=17&type=section&id=Note%204%20%E2%80%93%20Financial%20Instruments%20with%20Off-Balance%20Sheet%20Risk%20and%20Concentrations%20of%20Credit%20Risk) This note discusses the company's exposure to off-balance sheet risks and concentrations of credit risk from financial instruments - Total financial instruments sold, not yet purchased, increased from **$1,771.2 million** (Sept 30, 2021) to **$2,781.8 million** (March 31, 2022)[74](index=74&type=chunk) - The company uses interest rate swaps to hedge against variability in overnight rates, converting floating-rate interest income to fixed-rate. As of March 31, 2022, **$1,000.0 million** in notional value of interest rate swaps were outstanding[79](index=79&type=chunk)[172](index=172&type=chunk) Net Gains from Derivative Contracts - Three Months Ended March 31 | Derivative Type | 2022 (in millions) | 2021 (in millions) | % Change | | :---------------------- | :----------------- | :----------------- | :------- | | Commodities | $135.2 | $59.0 | 129.2% | | Foreign exchange | $56.7 | $25.5 | 122.4% | | Interest rate, equities, and indices | $27.4 | $30.6 | (10.5)% | | TBA and forward settling securities | $94.1 | $8.6 | 994.2% | | **Total Net Gains** | **$313.4** | **$123.7** | **153.4%** | [Note 5 – Allowance for Doubtful Accounts](index=21&type=section&id=Note%205%20%E2%80%93%20Allowance%20for%20Doubtful%20Accounts) This note details the activity and balances of the allowance for doubtful accounts related to client receivables Allowance for Doubtful Accounts Activity - Six Months Ended March 31, 2022 | Metric | Amount (in millions) | | :-------------------------- | :------------------- | | Balance as of September 30, 2021 | $39.8 | | Provision for bad debts | $10.6 | | Allowance charge-offs | $(0.4) | | Other | $0.8 | | Balance as of March 31, 2022 | $50.8 | - Allowance for doubtful accounts related to receivables from clients increased from **$38.5 million** (Sept 30, 2021) to **$47.7 million** (March 31, 2022)[89](index=89&type=chunk) [Note 6 – Physical Commodities Inventory](index=21&type=section&id=Note%206%20%E2%80%93%20Physical%20Commodities%20Inventory) This note provides a breakdown and valuation methods for the company's physical commodities inventory Physical Commodities Inventory, Net | Commodity Type | March 31, 2022 (in millions) | September 30, 2021 (in millions) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Physical Ag & Energy | $262.3 | $248.6 | | Precious metals - held by broker-dealer subsidiary | $100.1 | $111.2 | | Precious metals - held by non-broker-dealer subsidiaries | $185.0 | $87.7 | | **Total Physical commodities inventory, net** | **$547.4** | **$447.5** | - Physical Ag & Energy and precious metals held by non-broker-dealer subsidiaries are valued at net realizable value or lower of cost or net realizable value, while precious metals held by broker-dealer subsidiaries are at fair value[92](index=92&type=chunk) [Note 7 – Goodwill](index=22&type=section&id=Note%207%20%E2%80%93%20Goodwill) This note presents the allocation of goodwill across the company's operating segments Goodwill by Segment | Segment | March 31, 2022 (in millions) | September 30, 2021 (in millions) | | :---------------- | :----------------------------- | :------------------------------- | | Commercial | $32.5 | $32.5 | | Institutional | $9.8 | $9.8 | | Retail | $5.8 | $5.8 | | Global Payments | $10.0 | $10.0 | | **Total Goodwill** | **$58.1** | **$58.1** | [Note 8 – Intangible Assets](index=22&type=section&id=Note%208%20%E2%80%93%20Intangible%20Assets) This note details the company's intangible assets, including amortization schedules and related expenses Intangible Assets, Net | Intangible Asset Class | March 31, 2022 (in millions) | September 30, 2021 (in millions) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Total intangible assets subject to amortization | $29.6 | $36.9 | | Total intangible assets not subject to amortization | $5.8 | $5.8 | | **Total intangible assets** | **$35.4** | **$42.7** | - Amortization expense for intangible assets was **$3.7 million** for the three months ended March 31, 2022, and **$7.4 million** for the six months ended March 31, 2022[94](index=94&type=chunk) Estimated Future Amortization Expense | Fiscal Year | Amount (in millions) | | :-------------------------- | :------------------- | | 2022 (remaining six months) | $7.1 | | 2023 | $12.7 | | 2024 | $5.2 | | 2025 | $1.9 | | 2026 and thereafter | $2.7 | | **Total** | **$29.6** | [Note 9 – Credit Facilities](index=23&type=section&id=Note%209%20%E2%80%93%20Credit%20Facilities) This note outlines the company's committed credit facilities, outstanding borrowings, and covenant compliance - As of March 31, 2022, the company had four committed credit facilities totaling **$851.5 million**, with **$515.3 million** outstanding[105](index=105&type=chunk) - The company amended its senior secured syndicated loan facility on April 21, 2022, expanding revolving credit to **$475.0 million** and extending it through April 2025[109](index=109&type=chunk)[343](index=343&type=chunk) - Total outstanding borrowings from all credit facilities and notes were **$974.8 million** as of March 31, 2022, up from **$755.6 million** as of September 30, 2021[105](index=105&type=chunk) - The company was in compliance with all financial covenants under its credit facilities as of March 31, 2022[110](index=110&type=chunk) [Note 10 – Securities and Commodity Financing Transactions](index=25&type=section&id=Note%2010%20%E2%80%93%20Securities%20and%20Commodity%20Financing%20Transactions) This note describes the company's securities and commodity financing activities, including repurchase agreements and collateral - Financial instruments owned of **$1,448.7 million** (March 31, 2022) and **$843.3 million** (Sept 30, 2021) were pledged as collateral under repurchase agreements[112](index=112&type=chunk) - The fair value of accepted collateral that the company is permitted to sell or repledge was **$4,606.6 million** as of March 31, 2022[115](index=115&type=chunk) Gross Obligations under Repurchase and Securities Lending Agreements - March 31, 2022 | Maturity | Securities sold under agreements to repurchase (in millions) | Securities loaned (in millions) | | :---------------- | :------------------------------------------------- | :---------------------------- | | Overnight and Open | $2,563.4 | $2,103.7 | | Less than 30 Days | $725.6 | — | | 30-90 Days | $512.3 | — | | Over 90 Days | $6.6 | — | | **Total** | **$3,807.9** | **$2,103.7** | [Note 11 – Commitments and Contingencies](index=27&type=section&id=Note%2011%20%E2%80%93%20Commitments%20and%20Contingencies) This note discloses the company's various commitments and potential liabilities, including legal and operational contingencies - The company recorded a **$3.0 million allowance** for a potential shortfall related to **2.8 million bushels of soybeans** held in a third-party facility that filed for Chapter 11 bankruptcy. Receivables from clients, net, includes **$31.6 million** related to this matter[121](index=121&type=chunk)[328](index=328&type=chunk) - Net Client Accounts Receivable from OptionSellers.com Inc. related to natural gas market fluctuations was **$28.1 million** as of March 31, 2022, with an allowance of **$8.0 million**. The company prevailed in the first arbitration case related to this[124](index=124&type=chunk)[126](index=126&type=chunk)[330](index=330&type=chunk) - Loss contingency accruals are not material, individually or in aggregate, to the company's financial position or liquidity[130](index=130&type=chunk) [Note 12 – Accumulated Other Comprehensive Loss, Net](index=28&type=section&id=Note%2012%20%E2%80%93%20Accumulated%20Other%20Comprehensive%20Loss,%20Net) This note details the components and changes in accumulated other comprehensive loss, net of tax Changes in Accumulated Other Comprehensive Loss, Net - Six Months Ended March 31, 2022 | Metric | Foreign Currency Translation Adjustment (in millions) | Pension Benefits Adjustment (in millions) | Cash Flow Hedge (in millions) | Accumulated Other Comprehensive Loss, net (in millions) | | :----------------------------------- | :------------------------------------------ | :---------------------------------------- | :---------------------------- | :------------------------------------------------------ | | Balances as of September 30, 2021 | $(22.7) | $(2.4) | $— | $(25.1) | | Other comprehensive loss, net of tax (Dec 31, 2021) | $(1.3) | $— | $(0.1) | $(1.4) | | Balances as of December 31, 2021 | $(24.0) | $(2.4) | $(0.1) | $(26.5) | | Other comprehensive income/(loss), net of tax (March 31, 2022) | $1.2 | $— | $(18.1) | $(16.9) | | **Balances as of March 31, 2022** | **$(22.8)** | **$(2.4)** | **$(18.2)** | **$(43.4)** | - Cash flow hedges contributed **$(18.2) million** to accumulated other comprehensive loss for the six months ended March 31, 2022[135](index=135&type=chunk) [Note 13 – Revenue from Contracts with Clients](index=28&type=section&id=Note%2013%20%E2%80%93%20Revenue%20from%20Contracts%20with%20Clients) This note provides a breakdown of revenues from contracts with clients by geographic region and revenue recognition details - Revenues from contracts with clients subject to Topic 606 represented approximately **5.9% of total revenues** for the three months ended March 31, 2022, and **6.2%** for the six months ended March 31, 2022[139](index=139&type=chunk) Total Revenues by Primary Geographic Region - Three Months Ended March 31 | Region | 2022 (in millions) | 2021 (in millions) | % Change | | :------------------ | :----------------- | :----------------- | :------- | | United States | $1,204.6 | $853.6 | 41.1% | | Europe | $933.6 | $490.1 | 90.5% | | South America | $23.6 | $14.5 | 62.8% | | Middle East and Asia | $14,218.5 | $9,885.1 | 43.8% | | Other | $2.4 | $1.5 | 60.0% | | **Total revenues** | **$16,382.7** | **$11,244.8** | **45.7%** | Operating Revenues by Primary Geographic Region - Three Months Ended March 31 | Region | 2022 (in millions) | 2021 (in millions) | % Change | | :------------------ | :----------------- | :----------------- | :------- | | United States | $364.5 | $349.7 | 4.2% | | Europe | $131.3 | $87.1 | 50.7% | | South America | $23.6 | $14.5 | 62.8% | | Middle East and Asia | $23.0 | $18.6 | 23.7% | | Other | $2.3 | $1.5 | 53.3% | | **Total operating revenues** | **$544.7** | **$471.4** | **15.5%** | [Note 14 – Other Expenses](index=31&type=section&id=Note%2014%20%E2%80%93%20Other%20Expenses) This note itemizes and compares various other operating expenses for the reported periods Other Expenses - Three Months Ended March 31 | Expense Type | 2022 (in millions) | 2021 (in millions) | % Change | | :-------------------------- | :----------------- | :----------------- | :------- | | Non-income taxes | $5.5 | $3.5 | 57.1% | | Insurance | $3.0 | $1.9 | 57.9% | | Employee related expenses | $1.8 | $1.4 | 28.6% | | Other direct business expenses | $2.9 | $1.7 | 70.6% | | Membership fees | $1.1 | $0.8 | 37.5% | | Director and public company expenses | $0.6 | $0.5 | 20.0% | | Office expenses | $0.4 | $0.4 | 0.0% | | Other expenses | $1.6 | $1.9 | (15.8)% | | **Total other expenses** | **$16.9** | **$12.1** | **39.7%** | [Note 15 – Income Taxes](index=31&type=section&id=Note%2015%20%E2%80%93%20Income%20Taxes) This note details the company's income tax expense, effective tax rates, and factors influencing tax variations - Income tax expense was **$23.4 million** for the three months ended March 31, 2022 (up from **$21.0 million** in 2021), and **$34.2 million** for the six months ended March 31, 2022 (up from **$28.4 million** in 2021)[151](index=151&type=chunk) - The effective tax rate was **27%** for the three months ended March 31, 2022 (down from **28%** in 2021), and **24%** for the six months ended March 31, 2022 (down from **28%** in 2021)[152](index=152&type=chunk)[233](index=233&type=chunk) - The effective tax rate was higher than the U.S. federal statutory rate of **21%** due to state and local taxes, global intangible low taxed income ("GILTI"), and foreign earnings taxed at higher rates[152](index=152&type=chunk)[234](index=234&type=chunk) [Note 16 – Regulatory Capital Requirements](index=32&type=section&id=Note%2016%20%E2%80%93%20Regulatory%20Capital%20Requirements) This note outlines the regulatory capital requirements for the company's subsidiaries and their compliance status - All of the company's subsidiaries were in compliance with their local regulatory requirements as of March 31, 2022[154](index=154&type=chunk) Regulatory Capital for Key Subsidiaries - March 31, 2022 | Subsidiary | Regulatory Authority | Actual (in millions) | Minimum Requirement (in millions) | | :---------------------- | :------------------- | :------------------- | :-------------------------------- | | StoneX Financial Inc. | SEC and CFTC | $357.6 | $256.9 | | StoneX Financial Ltd. | FCA | $403.4 | $358.0 | | Gain Capital Group, LLC | CFTC and NFA | $54.3 | $29.4 | | StoneX Markets LLC | CFTC and NFA | $176.8 | $119.4 | | StoneX Financial Pte Ltd | MAS | $53.6 | $11.2 | [Note 17 – Segment Analysis](index=32&type=section&id=Note%2017%20%E2%80%93%20Segment%20Analysis) This note provides financial performance data and key metrics for each of the company's operating segments - The company manages its business across four operating segments: Commercial, Institutional, Retail, and Global Payments, serving clients in over **180 countries** with approximately **3,300 employees**[155](index=155&type=chunk)[169](index=169&type=chunk) - Key performance measures include total revenues, operating revenues, net operating revenues, net contribution, and segment income[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[239](index=239&type=chunk)[240](index=240&type=chunk)[241](index=241&type=chunk) Total Revenues by Segment - Three Months Ended March 31 | Segment | 2022 (in millions) | 2021 (in millions) | % Change | | :---------------- | :----------------- | :----------------- | :------- | | Commercial | $15,792.5 | $10,516.4 | 50.2% | | Institutional | $202.8 | $191.6 | 5.8% | | Retail | $349.6 | $503.5 | (30.6)% | | Global Payments | $41.0 | $33.5 | 22.4% | | Corporate Unallocated | $1.9 | $4.2 | (54.8)% | | Eliminations | $(5.1) | $(4.4) | 15.9% | | **Total** | **$16,382.7** | **$11,244.8** | **45.7%** | Segment Income - Three Months Ended March 31 | Segment | 2022 (in millions) | 2021 (in millions) | % Change | | :---------------- | :----------------- | :----------------- | :------- | | Commercial | $70.1 | $55.6 | 26.1% | | Institutional | $50.0 | $52.0 | (3.8)% | | Retail | $45.5 | $32.0 | 42.2% | | Global Payments | $23.9 | $19.4 | 23.2% | | **Total Segment Income** | **$189.5** | **$159.0** | **19.2%** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance and condition for the periods presented, highlighting key drivers of revenue and expense changes, segment-specific results, and an assessment of liquidity and capital resources [Overview](index=35&type=section&id=Overview) This section provides a high-level introduction to the company's business operations and segment structure - StoneX operates a global financial services network with approximately **3,300 employees** as of March 31, 2022, serving clients in over **180 countries**[169](index=169&type=chunk) - The company's business is segmented into Commercial, Institutional, Retail, and Global Payments, based on client type[170](index=170&type=chunk) [Executive Summary](index=35&type=section&id=Executive%20Summary) This section highlights key financial performance indicators and significant market events for the reporting period - Q2 fiscal 2022 was marked by increased inflationary concerns, rising interest rates and commodity prices, and widespread volatility, especially following the Russian invasion of Ukraine, leading to significant increases in client volumes and wider spreads[171](index=171&type=chunk) - Operating revenues increased **$73.3 million (16%)** to **$544.7 million** for the three months ended March 31, 2022, with record operating revenues in Commercial, Institutional, and Retail segments[173](index=173&type=chunk) - Net income increased **$8.7 million** to **$64.0 million**, and diluted EPS was **$3.11** for the three months ended March 31, 2022[179](index=179&type=chunk) - Bad debt expense increased by **$11.4 million** for the three months ended March 31, 2022, due to heightened market volatility impacting certain clients[171](index=171&type=chunk) [Selected Summary Financial Information](index=37&type=section&id=Selected%20Summary%20Financial%20Information) This section presents key financial metrics, including operating revenues by product and various volume data Operating Revenues by Product - Three Months Ended March 31 | Product | 2022 (in millions) | 2021 (in millions) | % Change | | :----------------------------------- | :----------------- | :----------------- | :------- | | Listed derivatives | $123.0 | $101.1 | 21.7% | | Over-the-counter ("OTC") derivatives | $62.4 | $35.1 | 77.8% | | Securities | $151.3 | $157.8 | (4.1)% | | FX / Contract For Difference ("CFD") contracts | $98.9 | $74.7 | 32.4% | | Global payments | $40.1 | $32.8 | 22.3% | | Physical contracts | $40.7 | $49.5 | (17.8)% | | Interest / fees earned on client balances | $10.4 | $5.8 | 79.3% | | Other | $21.1 | $14.8 | 42.6% | | Corporate Unallocated | $1.9 | $4.2 | (54.8)% | | Eliminations | $(5.1) | $(4.4) | 15.9% | | **Total Operating Revenues** | **$544.7** | **$471.4** | **15.5%** | Volumes and Other Select Data - Three Months Ended March 31 | Metric | 2022 | 2021 | % Change | | :----------------------------------- | :------- | :------- | :------- | | Listed derivatives (contracts, 000's) | 42,033 | 37,119 | 13% | | Listed derivatives, average rate per contract | $2.77 | $2.59 | 7% | | Average client equity - listed derivatives (millions) | $5,267 | $3,813 | 38% | | OTC derivatives (contracts, 000's) | 738 | 623 | 18% | | OTC derivatives, average rate per contract | $84.98 | $56.05 | 52% | | Securities average daily volume ("ADV") (millions) | $3,492 | $3,003 | 16% | | Securities rate per million ("RPM") | $567 | $714 | (21)% | | Average money market / FDIC sweep client balances (millions) | $1,751 | $1,356 | 29% | | FX / CFD contracts ADV (millions) | $14,937 | $11,143 | 34% | | FX / CFD contracts RPM | $104 | $106 | (2)% | | Global Payments ADV (millions) | $56 | $52 | 8% | | Global Payments RPM | $11,668 | $10,420 | 12% | [Operating Revenues](index=38&type=section&id=Operating%20Revenues) This section analyzes the drivers and changes in operating revenues across different product lines - Listed derivatives operating revenues increased **22% (3-month)** and **14% (6-month)** due to increased contract volumes and average rates, driven by market volatility[188](index=188&type=chunk)[197](index=197&type=chunk) - OTC derivatives operating revenues surged **78% (3-month)** and **84% (6-month)**, driven by strong growth in contract volumes and average rates due to heightened volatility in global commodity and interest rate markets[189](index=189&type=chunk)[198](index=198&type=chunk) - Securities operating revenue declined **4% (3-month and 6-month)** due to a decrease in RPM, as prior year benefited from wider spreads during COVID-19[190](index=190&type=chunk)[199](index=199&type=chunk) - Interest and fee income on client balances increased **79% (3-month)** and **68% (6-month)**, driven by a **38% (3-month)** and **37% (6-month)** increase in average client equity and a modest increase in short-term interest rates[194](index=194&type=chunk)[203](index=203&type=chunk) [Interest and Transactional Expenses](index=40&type=section&id=Interest%20and%20Transactional%20Expenses) This section details the company's interest and transaction-based expenses, including clearing and commissions Total Interest Expense - Three Months Ended March 31 | Category | 2022 (in millions) | 2021 (in millions) | % Change | | :----------------------------------- | :----------------- | :----------------- | :------- | | Trading activities | $14.1 | $11.1 | 27% | | Corporate funding | $10.6 | $10.5 | 1% | | **Total interest expense** | **$24.7** | **$21.6** | **14%** | - Transaction-based clearing expenses increased **2% (3-month)** and **5% (6-month)** due to higher OTC and listed derivative contract volumes and increased costs in Retail Forex[205](index=205&type=chunk)[208](index=208&type=chunk) - Introducing broker commissions increased **6% (3-month)** and **3% (6-month)** due to increased activity in Independent Wealth Management, Financial Ag & Energy, and Exchange-Traded Futures and Options businesses[206](index=206&type=chunk)[209](index=209&type=chunk) [Net Operating Revenues](index=41&type=section&id=Net%20Operating%20Revenues) This section analyzes the company's net operating revenues by product, reflecting revenue after direct expenses Net Operating Revenues by Product - Three Months Ended March 31 | Product | 2022 (in millions) | 2021 (in millions) | % Change | | :----------------------------------- | :----------------- | :----------------- | :------- | | Listed derivatives | $62.8 | $45.9 | 37% | | OTC derivatives | $62.5 | $35.0 | 79% | | Securities | $104.1 | $109.0 | (4)% | | FX / CFD contracts | $85.8 | $62.7 | 37% | | Global Payments | $38.0 | $31.0 | 23% | | Physical contracts | $35.8 | $44.9 | (20)% | | Interest, net / fees earned on client balances | $9.1 | $4.9 | 86% | | Other | $16.2 | $11.0 | 47% | | Corporate Unallocated | $(14.0) | $(10.2) | 37% | | **Total Net Operating Revenues** | **$400.3** | **$334.2** | **20%** | - Net operating revenues increased **20% (3-month)** and **21% (6-month)**, driven by strong performance in listed and OTC derivatives, FX/CFD contracts, and global payments[213](index=213&type=chunk) [Compensation and Other Expenses](index=42&type=section&id=Compensation%20and%20Other%20Expenses) This section details the company's compensation, benefits, and other operating expenses, including bad debt Total Compensation and Other Expenses - Three Months Ended March 31 | Expense Category | 2022 (in millions) | 2021 (in millions) | % Change | | :----------------------------------- | :----------------- | :----------------- | :------- | | Compensation and benefits | $207.1 | $185.0 | 12% | | Trading systems and market information | $16.9 | $14.8 | 14% | | Professional fees | $13.8 | $9.0 | 53% | | Non-trading technology and support | $12.8 | $10.6 | 21% | | Occupancy and equipment rental | $8.8 | $7.5 | 17% | | Selling and marketing | $14.3 | $6.5 | 120% | | Travel and business development | $3.0 | $0.5 | 500% | | Communications | $2.1 | $2.4 | (13)% | | Depreciation and amortization | $11.3 | $8.6 | 31% | | Bad debt expense, net | $12.3 | $0.9 | n/m | | Other | $16.9 | $12.1 | 40% | | **Total compensation and other expenses** | **$319.3** | **$257.9** | **24%** | - Bad debt expense, net, increased significantly by **$11.4 million (3-month)** and **$9.7 million (6-month)** over the prior year, primarily due to client trading account deficits in Commercial and Institutional segments[222](index=222&type=chunk)[230](index=230&type=chunk) - Selling and marketing costs increased **120% (3-month)** and **65% (6-month)** due to increased retail forex campaigns and global sales meetings[220](index=220&type=chunk)[228](index=228&type=chunk) - A nonrecurring gain of **$6.4 million** from a foreign exchange antitrust class action settlement was recognized in March 2022[223](index=223&type=chunk)[232](index=232&type=chunk) [Variable vs. Fixed Expenses](index=45&type=section&id=Variable%20vs.%20Fixed%20Expenses) This section categorizes the company's non-interest expenses into variable and fixed components Variable vs. Non-Variable Expenses - Three Months Ended March 31 | Expense Type | 2022 (in millions) | % of Total | 2021 (in millions) | % of Total | | :----------------------------------- | :----------------- | :--------- | :----------------- | :--------- | | Variable compensation and benefits | $124.1 | 28% | $106.0 | 28% | | Transaction-based clearing expenses | $76.5 | 17% | $74.8 | 21% | | Introducing broker commissions | $43.2 | 10% | $40.8 | 11% | | **Total variable expenses** | **$243.8** | **55%** | **$221.6** | **60%** | | Fixed compensation and benefits | $83.0 | 19% | $79.0 | 21% | | Other fixed expenses | $99.9 | 23% | $72.0 | 19% | | Bad debts, net of recoveries | $12.3 | 3% | $0.9 | 0% | | **Total non-variable expenses** | **$195.2** | **45%** | **$151.9** | **40%** | | **Total non-interest expenses** | **$439.0** | **100%** | **$373.5** | **100%** | - Variable expenses were **55% of total non-interest expenses** for the three months ended March 31, 2022, down from **60%** in the prior year, reflecting the company's focus on a variable cost model[178](index=178&type=chunk)[236](index=236&type=chunk) [Segment Information (Summary)](index=45&type=section&id=Segment%20Information%20(Summary)) This section provides a summary of net contribution and segment income across all operating segments - Net contribution for all segments increased **23%** to **$304.7 million (3-month)** and **22%** to **$544.7 million (6-month)**[243](index=243&type=chunk)[244](index=244&type=chunk) - Segment income for all segments increased **19%** to **$189.5 million (3-month)** and **22%** to **$334.8 million (6-month)**[243](index=243&type=chunk)[244](index=244&type=chunk) [Commercial Segment Analysis](index=46&type=section&id=Commercial%20Segment%20Analysis) This section analyzes the financial performance of the Commercial segment, including revenue and income drivers Commercial Segment Operating Revenues - Three Months Ended March 31 | Product | 2022 (in millions) | 2021 (in millions) | % Change | | :----------------------------------- | :----------------- | :----------------- | :------- | | Listed derivatives | $73.0 | $57.5 | 27% | | OTC derivatives | $62.4 | $35.1 | 78% | | Physical contracts | $37.2 | $43.1 | (14)% | | Interest / fees earned on client balances | $6.3 | $3.0 | 110% | | Other | $5.2 | $5.6 | (7)% | | **Total Operating Revenues** | **$184.1** | **$144.3** | **28%** | - Commercial segment operating revenues increased **28% (3-month)** and **35% (6-month)**, driven by strong performance in OTC derivatives (**78% 3-month increase**) and interest/fees on client balances (**110% 3-month increase**)[248](index=248&type=chunk)[250](index=250&type=chunk)[253](index=253&type=chunk)[256](index=256&type=chunk)[258](index=258&type=chunk)[260](index=260&type=chunk) - Segment income increased **26% (3-month)** and **55% (6-month)**, partially offset by a significant increase in bad debt expense (**$8.9 million 3-month increase**)[255](index=255&type=chunk)[262](index=262&type=chunk) [Institutional Segment Analysis](index=51&type=section&id=Institutional%20Segment%20Analysis) This section analyzes the financial performance of the Institutional segment, including revenue and income drivers Institutional Segment Operating Revenues - Three Months Ended March 31 | Product | 2022 (in millions) | 2021 (in millions) | % Change | | :----------------------------------- | :----------------- | :----------------- | :------- | | Listed derivatives | $50.0 | $43.6 | 15% | | Securities | $125.3 | $133.1 | (6)% | | FX contracts | $8.9 | $3.5 | 154% | | Interest / fees earned on client balances | $4.0 | $2.5 | 60% | | Other | $14.6 | $8.9 | 64% | | **Total Operating Revenues** | **$202.8** | **$191.6** | **6%** | - Institutional segment operating revenues increased **6% (3-month)** and **2% (6-month)**, driven by listed derivatives and FX contracts, but securities revenue declined due to lower RPM[267](index=267&type=chunk)[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk)[276](index=276&type=chunk)[277](index=277&type=chunk) - Segment income decreased **4% (3-month)** and **15% (6-month)**, primarily due to increased interest expense, variable compensation, and non-variable direct expenses, including bad debt expense[177](index=177&type=chunk)[273](index=273&type=chunk)[280](index=280&type=chunk) [Retail Segment Analysis](index=54&type=section&id=Retail%20Segment%20Analysis) This section analyzes the financial performance of the Retail segment, including revenue and income drivers Retail Segment Operating Revenues - Three Months Ended March 31 | Product | 2022 (in millions) | 2021 (in millions) | % Change | | :----------------------------------- | :----------------- | :----------------- | :------- | | Securities | $26.0 | $24.7 | 5% | | FX / CFD contracts | $90.0 | $71.2 | 26% | | Physical contracts | $3.5 | $6.4 | (45)% | | Interest / fees earned on client balances | $0.1 | $0.3 | (67)% | | Other | $0.4 | $(0.4) | (200)% | | **Total Operating Revenues** | **$120.0** | **$102.2** | **17%** | - Retail segment operating revenues increased **17% (3-month)** and **18% (6-month)**, largely driven by FX/CFD contracts (**26% 3-month increase**) due to heightened volatility and increased customer trading activity[284](index=284&type=chunk)[285](index=285&type=chunk)[290](index=290&type=chunk)[291](index=291&type=chunk) - Segment income increased **42% (3-month)** and **38% (6-month)**, benefiting from a **$6.4 million nonrecurring foreign exchange antitrust class action settlement**[175](index=175&type=chunk)[289](index=289&type=chunk)[294](index=294&type=chunk) [Global Payments Segment Analysis](index=56&type=section&id=Global%20Payments%20Segment%20Analysis) This section analyzes the financial performance of the Global Payments segment, including revenue and income drivers Global Payments Segment Operating Revenues - Three Months Ended March 31 | Product | 2022 (in millions) | 2021 (in millions) | % Change | | :----------------------------------- | :----------------- | :----------------- | :------- | | Payments | $40.1 | $32.8 | 22% | | Other | $0.9 | $0.7 | 29% | | **Total Operating Revenues** | **$41.0** | **$33.5** | **22%** | - Global Payments operating revenues increased **22% (3-month)** and **23% (6-month)**, driven by an **8% (3-month)** and **13% (6-month)** increase in average daily notional payment volume and a **12% (3-month)** and **9% (6-month)** increase in RPM[176](index=176&type=chunk)[299](index=299&type=chunk)[301](index=301&type=chunk)[302](index=302&type=chunk) - Segment income increased **23% (3-month)** and **22% (6-month)**, primarily due to increased net operating revenues[300](index=300&type=chunk)[303](index=303&type=chunk) [Unallocated Costs and Expenses](index=57&type=section&id=Unallocated%20Costs%20and%20Expenses) This section details the company's unallocated corporate costs and other general expenses Total Unallocated Costs and Other Expenses - Three Months Ended March 31 | Expense Category | 2022 (in millions) | 2021 (in millions) | % Change | | :----------------------------------- | :----------------- | :----------------- | :------- | | Compensation and benefits | $44.8 | $39.0 | 15% | | Occupancy and equipment rental | $8.7 | $7.4 | 18% | | Non-trading technology and support | $9.5 | $7.6 | 25% | | Professional fees | $7.3 | $5.2 | 40% | | Depreciation and amortization | $5.6 | $4.1 | 37% | | Communications | $1.4 | $1.6 | (13)% | | Selling and marketing | $2.2 | $0.2 | n/m | | Trading systems and market information | $1.3 | $0.9 | 44% | | Travel and business development | $0.6 | $0.1 | 500% | | Other | $6.7 | $6.4 | 5% | | **Total unallocated costs and other expenses** | **$88.1** | **$72.5** | **22%** | - Unallocated costs increased **22% (3-month)** and **16% (6-month)**, driven by higher variable compensation due to improved performance and increased headcount in IT, compliance, and HR[306](index=306&type=chunk)[308](index=308&type=chunk)[309](index=309&type=chunk) [Liquidity, Financial Condition and Capital Resources](index=58&type=section&id=Liquidity,%20Financial%20Condition%20and%20Capital%20Resources) This section assesses the company's liquidity, financial position, capital structure, and regulatory compliance - The company's liquidity is supported by funds from operations, debt and equity issuance, and committed credit facilities, with **98% of assets** being liquid as of March 31, 2022[310](index=310&type=chunk)[318](index=318&type=chunk) - Total equity was **$1,005.6 million** as of March 31, 2022, with outstanding loans of **$471.3 million**, a senior secured term loan of **$165.3 million**, and senior secured notes of **$338.2 million**[317](index=317&type=chunk) - The company's subsidiaries are subject to significant governmental and regulatory capital requirements (e.g., SEC, CFTC, FINRA, FCA) and were in compliance as of March 31, 2022[311](index=311&type=chunk)[312](index=312&type=chunk)[313](index=313&type=chunk)[314](index=314&type=chunk)[345](index=345&type=chunk) - Cash, segregated cash, cash equivalents, and segregated cash equivalents increased by **$2,300.0 million** to **$8,809.5 million** as of March 31, 2022[352](index=352&type=chunk) - Net cash provided by operating activities was **$2,102.0 million** for the six months ended March 31, 2022[352](index=352&type=chunk) [Off Balance Sheet Arrangements](index=64&type=section&id=Off%20Balance%20Sheet%20Arrangements) This section describes the company's off-balance sheet exposures, particularly from derivative financial instruments - The company is exposed to off-balance sheet market risk from derivative financial instruments, which are managed through diversification, position limits, capital allocation, and daily monitoring[362](index=362&type=chunk)[376](index=376&type=chunk) - Total financial instruments sold, not yet purchased, were **$2,781.8 million** as of March 31, 2022, representing obligations to purchase financial instruments at a future date[367](index=367&type=chunk) - The company mitigates credit risk by requiring margin deposits, monitoring collateral levels daily, and establishing credit limits for clients and counterparties[363](index=363&type=chunk)[368](index=368&type=chunk) [Effects of Inflation](index=65&type=section&id=Effects%20of%20Inflation) This section discusses the potential impact of inflation on the company's expenses and financial performance - Inflation may increase expenses (compensation, clearing, rental) which may not be recoverable, and while rising interest rates are generally favorable, other adverse effects of inflation on financial markets could negatively impact the company[370](index=370&type=chunk) [Critical Accounting Policies](index=65&type=section&id=Critical%20Accounting%20Policies) This section confirms no material changes to the company's critical accounting policies - No material changes to critical accounting policies since the filing of the most recent Annual Report on Form 10-K[371](index=371&type=chunk) [Other Accounting Policies](index=65&type=section&id=Other%20Accounting%20Policies) This section details other significant accounting policies, including the use of interest rate swaps for hedging - The company began executing interest rate swaps as hedging instruments in Q1 fiscal 2022, with changes in fair value recorded in other comprehensive income, and settlements reclassified to earnings[372](index=372&type=chunk) [Accounting Development Updates](index=65&type=section&id=Accounting%20Development%20Updates) This section confirms no recently issued accounting pronouncements impacting the company - No recently issued accounting pronouncements[373](index=373&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section provides quantitative and qualitative information about the company's exposure to market risks, including credit risk, general market risk, interest rate risk, and foreign currency risk, and outlines the strategies employed to manage these exposures [Credit Risk](index=66&type=section&id=Credit%20Risk) This section refers to detailed disclosures on credit risk from financial instruments - Credit risk information is detailed in Note 4, covering financial instruments with off-balance sheet risk and concentrations of credit risk[374](index=374&type=chunk) [Market Risk](index=66&type=section&id=Market%20Risk) This section describes the company's exposure to market risks from trading activities and mitigation strategies - The company's capital is exposed to significant market risks from market-making and trading activities, including price movements, volatility, and liquidity changes[375](index=375&type=chunk) - Mitigation techniques include diversification, position limits, capital allocation based on risk, and daily monitoring of positions and profitability[376](index=376&type=chunk) - The company does not initiate market positions for its own account in anticipation of future price movements[377](index=377&type=chunk) [Interest Rate Risk](index=67&type=section&id=Interest%20Rate%20Risk) This section quantifies the company's exposure to interest rate fluctuations and hedging strategies - An immediate **25 basis point decrease** in short-term interest rates would result in approximately **$5.9 million less** in annual net income, assuming a **27.5% effective tax rate**[382](index=382&type=chunk) - The company uses interest rate swaps to convert floating-rate interest income from client deposits into fixed-rate income, mitigating uncertainty[383](index=383&type=chunk)[384](index=384&type=chunk) - As of March 31, 2022, **$636.7 million** of outstanding principal debt was variable-rate, and **$348.4 million** was fixed-rate long-term debt (fair value **$364.8 million**)[385](index=385&type=chunk) [Foreign Currency Risk](index=69&type=section&id=Foreign%20Currency%20Risk) This section discusses the company's exposure to foreign currency fluctuations and their potential impact - The company is exposed to foreign currency risk from assets and liabilities denominated in currencies other than the functional currency of its entities, which can impact earnings and assets[386](index=386&type=chunk) [Item 4. Controls and Procedures](index=69&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures as of March 31, 2022, concluding they were effective to provide reasonable assurance. No material changes to internal controls over financial reporting were reported - Disclosure controls and procedures were effective as of March 31, 2022, providing reasonable assurance that objectives were met[387](index=387&type=chunk) - No material changes in internal controls over financial reporting occurred during the quarter ended March 31, 2022[389](index=389&type=chunk) [PART II. OTHER INFORMATION](index=64&type=section&id=Part%20II.%20OTHER%20INFORMATION) This part includes disclosures on legal proceedings, risk factors, equity sales, exhibits, and signatures [Item 1. Legal Proceedings](index=69&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 11 for detailed information regarding legal proceedings, indicating no material changes since the last annual report beyond what is disclosed there - Information on legal proceedings is provided in Note 11, "Commitments and Contingencies"[390](index=390&type=chunk) [Item 1A. Risk Factors](index=69&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the risk factors discussed in the Annual Report on Form 10-K, stating that there have been no material changes to these risk factors since its filing - No material changes to risk factors since the filing of the Form 10-K[391](index=391&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the common stock repurchase program authorized by the Board of Directors, noting that no shares were repurchased during the three months ended March 31, 2022 - The Board authorized a repurchase of up to **1.0 million shares** of common stock from October 1, 2021, to September 30, 2022[392](index=392&type=chunk) - No shares were repurchased under the program during the three months ended March 31, 2022[393](index=393&type=chunk) [Item 6. Exhibits](index=70&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including various certifications and XBRL documents - The exhibits include CEO and CFO certifications (Rule 13a-14(a) and 18 U.S.C. Section 1350) and Inline XBRL documents[397](index=397&type=chunk) [Signatures](index=70&type=section&id=Signatures) This section contains the signatures of the Chief Executive Officer and Chief Financial Officer, certifying the report - The report is signed by Sean M. O'Connor (CEO) and William J. Dunaway (CFO) on May 4, 2022[397](index=397&type=chunk)

Financial Data and Key Metrics Changes - Operating revenues increased by 19% year-over-year, reaching $450.5 million, with notable increases in all product areas except for securities, which declined by 3% [9][18][19] - Net earnings for Q1 2022 were $41.7 million, representing a 114% increase over the prior year and a 471% increase over the previous quarter [32][19] - Return on equity (ROE) was reported at 18% on stated book value and 20% on tangible book value [58] Business Line Data and Key Metrics Changes - The commercial segment saw operating revenues increase by 45% and segment income by 104%, both setting new records [21] - Global payments operating revenue rose by 23%, with segment income up 20%, marking a record quarter for this segment [22][44] - Securities operating revenue decreased by 3%, with segment income down 29% due to a decline in revenue capture [22][38] Market Data and Key Metrics Changes - Average client float in listed derivatives and securities clearing grew by 36% and 26% respectively, totaling $6.2 billion, a 32% increase from the previous year [12][19] - Interest earnings on client balances increased by 57% year-over-year, driven by higher client balances and the beginning of interest rate increases [13][19] Company Strategy and Development Direction - The company is focused on expanding its global payments capabilities, including a new digital offering for midsize corporations, set to launch in 2022 [51][52] - A new digital merchandising system, StoneHedge, was launched to enhance client engagement in the grain industry [53] - The company is also working on refinancing and restructuring its debt to optimize its capital structure [57] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market environment for the next year, citing potential volatility due to the Fed's actions on interest rates [8][58] - The company anticipates a steady rise in average yield earned on client float as interest rates increase [56] - Management emphasized the importance of organic growth opportunities over acquisitions, given the current high valuations in the market [89] Other Important Information - The company reported a significant increase in transaction volumes across most product areas, with a notable 93% increase in OTC and 72% in physical commodities [9][10] - The average client equity increased by 36%, contributing to higher interest earnings [37] Q&A Session Summary Question: Context around the rationale for interest rate swaps - Management explained the disciplined approach to locking in rates, emphasizing the benefits of immediate higher earnings versus waiting for potential future increases [66][67] Question: Incremental margin from higher rates - Management confirmed that higher interest earnings contribute directly to the pretax line, representing a high-margin revenue source [73] Question: Momentum in global payments business - Management indicated that the recent quarter's performance was considered normal, with expectations for continued growth driven by new digital offerings [76][81] Question: Notable items in expenses for the remainder of the year - Management noted potential increases in non-variable compensation and interest expenses due to refinancing efforts, but no significant changes were expected [82][84] Question: Focus on organic versus inorganic growth - Management reiterated a preference for organic growth opportunities, citing high market valuations for acquisitions as a deterrent [89]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ FORM 10-Q ____________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended December 31, 2021 For the Transition Period From to Commission File Number 000-23554 StoneX Group Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 59-29213 ...