StoneX(US:SNEX)2025-11-28 22:27Financial Performance - Record net operating revenues reached $132.4 billion, up 33% from the previous year, with net income increasing 17% to $305.9 million[295][299][302] - Net operating revenues increased by 16% to $2.05 billion, with a diluted earnings per share of $5.89 compared to $5.31 in the previous year[299][302] - Operating revenues increased by $690.7 million, or 20%, to $4,126.9 million for the fiscal year ended September 30, 2025, compared to $3,436.2 million in 2024[305] - Total revenues for the fiscal year ended September 30, 2025, increased to $132,375.0 million, a 32% rise from $99,890.2 million in 2024[350] - Segment income for the fiscal year ended September 30, 2025, was $1,027.7 million, up 16% from $885.6 million in 2024[350] Client Balances and Equity - Average client equity and average money market/FDIC sweep client balances increased by 25% and 21%, respectively, compared to the prior year[296] - Average client equity for listed derivatives increased by 25% to $7,785 million, including an incremental $5.6 billion per month from RJO for two months post-acquisition[310] - Average client equity for listed derivatives rose to $2,114 million, a 23% increase from $1,715 million in 2024[355] - Average client equity for listed derivatives increased by 26% to $5,671 million for the fiscal year ended September 30, 2025[372] Acquisitions - The acquisition of R.J. O'Brien was completed for approximately $651.9 million in cash and stock, significantly enhancing the company's position in the global financial market[290] - The acquisition of Benchmark was completed for approximately $57.1 million in cash, with additional contingent payments valued at $25.3 million[292] - The acquisition of RJO contributed $141.0 million in operating revenues, with listed derivatives revenues increasing by $104.6 million, primarily due to RJO's contribution of $89.5 million[306] - The acquisition of RJO contributed 4.1 million listed derivative contracts in the fiscal year ended September 30, 2025[355] Revenue Sources - Operating revenues from securities transactions rose by $390.9 million, driven by a 27% increase in average daily volume (ADV) and a 9% increase in revenue per million (RPM)[307] - Operating revenues derived from listed derivatives increased by $53.8 million, driven by a 29% increase in contract volumes[357] - Operating revenues from physical contracts increased by $69.1 million, with significant contributions from agricultural and energy sectors[309] - Operating revenues from FX/CFD contracts increased by $59.0 million, driven by a 37% increase in FX/CFD contracts RPM[401] Expenses - Variable expenses accounted for 54% of total expenses, up from 52% in the previous fiscal year[298] - Total fixed compensation and other expenses increased by 14% to $1.04 billion, reflecting growth in acquired businesses and professional fees[302] - Total non-interest expenses for the fiscal year ended September 30, 2025, were $2,243.1 million, up from $1,907.4 million in 2024[337] - Total contractual obligations as of September 30, 2025 amounted to $152,343.7 million, with significant purchase obligations of $149,968.9 million due within one year[470] Interest and Fees - Interest income increased by $337.5 million to $1.7 billion, driven primarily by the acquisition of RJO, which contributed $50 million[296][302] - Total interest expense increased by $297.0 million, or 25%, to $1,480.5 million, driven by growth in the securities repo and lending businesses[314] - Interest expense rose by $259.8 million, or 24%, to $1,332.3 million for the fiscal year ended September 30, 2025, compared to $1,072.5 million in the previous year[372] - Interest and fee income earned on client balances increased by $45.7 million, mainly due to RJO's contribution of $50.0 million[310] Employee and Compensation - The number of employees increased by 874, or 19%, to 5,430 at the end of the fiscal year[323] - Total compensation and other expenses increased by $227.6 million, or 16%, to $1,649.5 million for the fiscal year ended September 30, 2025, compared to $1,421.9 million for the previous year[322] - Variable compensation and benefits rose to $607.1 million, a 20% increase from $506.5 million in 2024, representing 30% of net operating revenues[323] - Fixed compensation and benefits increased by 15% to $500.6 million, up from $435.9 million in 2024[323] Financial Position and Liquidity - Total assets as of September 30, 2025, were $45,268.0 million, compared to $27,466.3 million as of September 30, 2024, reflecting significant growth[445] - As of September 30, 2025, total equity was $2,377.4 million, with outstanding loans under revolving credit facilities and other payables amounting to $782.0 million[437] - The company reported cash, segregated cash, cash equivalents, and segregated cash equivalents increased by $4,847.6 million from $6,672.6 million as of September 30, 2024 to $11,520.2 million as of September 30, 2025[463] - The company had various committed bank credit facilities totaling $1,705.0 million, with $621.8 million outstanding as of September 30, 2025[454] Risk Management and Compliance - The company has implemented credit guidelines to limit current and potential credit exposure to any one counterparty, ensuring risk management in trading activities[479] - Inflation may lead to increased expenses in compensation, transaction-based clearing, and occupancy, potentially affecting the company's financial position and results of operations[481] - The company is in compliance with all financial covenants under its outstanding facilities as of September 30, 2025[456] Taxation - The effective income tax rate was 25% for the fiscal year ended September 30, 2025, down from 26% in 2024[335] - The company repatriated $73.5 million and $100.0 million of earnings previously taxed in the U.S. for the fiscal years ended September 30, 2025, and 2024, respectively[449]