StoneX(US:SNEX)2026-02-04 21:37Financial Performance - Record net operating revenues increased by 47% to $39.03 billion, and net income rose by 63% to $139.0 million for the three months ended December 31, 2025[167][172]. - Total revenues for the three months ended December 31, 2025, reached $39,036.4 million, a significant increase from $27,945.1 million in the same period of 2024, representing a growth of 39%[218]. - Net operating revenues increased to $755.8 million in Q4 2025 from $513.2 million in Q4 2024, reflecting a growth of 47%[218]. - EBITDA for the same period was $697.9 million, a 54% increase compared to $454.0 million in 2024[326]. - Adjusted EBITDA reached $250.9 million, reflecting a 64% increase from $153.4 million in the prior year[326]. - Net income for the three months ended December 31, 2025, was $139.0 million, representing a 63% increase from $85.1 million in the same period of 2024[326]. Revenue Growth - Operating revenues increased by $493.9 million, or 52%, to $1,438.2 million for the three months ended December 31, 2025, compared to $944.3 million in the same period of 2024[178]. - Operating revenues for the same period were $1,444.8 million, up from $954.1 million in 2024, marking a 51% increase[218]. - Operating revenues from listed derivatives rose by $157.3 million, with Commercial and Institutional segments increasing by $71.7 million and $85.6 million, respectively[179]. - Operating revenues from securities transactions increased by $174.1 million, driven by a 22% increase in average daily volume (ADV) and a 35% increase in revenue per million (RPM)[180]. - Operating revenues from listed derivatives in the Institutional segment increased by $85.6 million, driven by a 57% increase in contract volumes[236]. - Operating revenues from physical transactions increased by $64.1 million, primarily due to an $83.9 million increase in the precious metals business[226]. Acquisitions and Contributions - The acquisition of RJO contributed $93.0 million in net operating revenues and $63.8 million in interest and fee income from an additional $5.8 billion in average client equity, driving a 100% growth in average client equity[167][168]. - The acquisition of RJO contributed $201.0 million in operating revenue and an incremental $5.8 billion in average client equity for the period[178][183]. - The company completed multiple acquisitions, including GEA Capital for $5.2 million in cash and $18.1 million in deferred consideration, and Intercam Securities and Advisors, enhancing its wealth management services[162][163]. Expenses and Costs - Total interest expense rose by $166.6 million, or 52%, to $488.0 million, largely due to growth in fixed income securities and securities borrowing[186]. - Compensation and other expenses increased by $158.2 million, or 42%, to $539.1 million, primarily due to acquisitions[192]. - Variable expenses accounted for 58% of total expenses, up from 52% in the prior year, indicating a focus on maintaining a variable cost model[171]. - Other non-compensation expenses increased by 43% to $183.2 million in Q4 2025, compared to $128.4 million in Q4 2024[197]. - Incremental costs from recent acquisitions added $15.5 million in non-variable salary expenses during Q4 2025[194]. Employee and Compensation Metrics - The number of employees increased by 18% to 5,436 at the end of Q4 2025, up from 4,620 in Q4 2024[193]. - Total compensation and benefits rose to $355.9 million in Q4 2025, up 41% from $252.5 million in Q4 2024[193]. - Variable compensation and benefits accounted for 30% of net operating revenues in Q4 2025, compared to 27% in Q4 2024[193]. - For the three months ended December 31, 2025, variable compensation and benefits decreased by 36% to $13.8 million from $21.5 million in 2024[261]. - Fixed compensation and benefits increased by 17% to $78.9 million in 2025 from $67.6 million in 2024[261]. Assets and Equity - Total assets grew by 62% to $47.78 billion, while stockholders' equity increased by 42% to $2.52 billion[175]. - Total equity as of December 31, 2025, was $2,522.2 million, with outstanding loans of $488.8 million and $1,159.6 million on senior secured notes[278]. - Total assets increased to $47.8 billion as of December 31, 2025, from $45.3 billion as of September 30, 2025[287]. Interest and Debt Management - Interest expense on corporate funding increased by $11.1 million due to the issuance of $625 million in notes due 2032[169]. - Interest expense for the three months ended December 31, 2025, was $488.0 million, a 52% increase from $321.4 million in 2024[326]. - As of December 31, 2025, $488.8 million of outstanding principal debt was variable-rate debt, while $1,175.0 million was fixed-rate long-term debt[341]. - The company issued $550.0 million in senior secured notes due 2031, accruing interest at a rate of 7.875% per annum, with issuance costs of $7.6 million[291][292]. Tax and Regulatory Considerations - The effective income tax rate decreased to 25% in Q4 2025 from 27% in Q4 2024[205]. - The company repatriated $27.0 million and $16.0 million of earnings previously taxed in the U.S. for the three months ended December 31, 2025 and 2024, respectively, resulting in no significant incremental taxes[290]. - The company is evaluating the impact of recently issued accounting standards on its disclosures, including ASU No. 2023-09 effective for the fiscal year ending September 30, 2026[321]. Currency and Risk Management - Currency risk arises from fluctuations in foreign exchange rates impacting earnings and assets[342]. - The company has executed hedging transactions to mitigate exposure to volatility in certain foreign currency exchange rates[342]. - Consideration of larger hedges in certain contracts or additional currencies to further mitigate exposure[342]. - Hedging transactions may not always be successful[342].