Financial Data and Key Metrics Changes - Fourth quarter net income reached a record $85.7 million, representing a 12% growth year-over-year, while diluted earnings per share (EPS) grew by only 1% due to an increase in shares outstanding from the acquisition of RJ O'Brien [2][3] - Operating revenues exceeded $1.2 billion, up 31% compared to the previous year and 17% sequentially [3] - Full fiscal year net income was a record $305.9 million, up 17%, with an EPS of $5.89 and a return on equity (ROE) of 15.6% [4][23] Business Line Data and Key Metrics Changes - Transactional volumes increased across all product offerings except for FXCFDs, with operating revenues from listed contracts rising by 76% year-over-year, driven by the acquisition of RJO [5][6] - Operating revenues from OTC derivatives increased by 27% year-over-year but declined by 1% sequentially [5] - The self-directed retail segment saw a decline in net operating revenues by 35% and segment income by 51%, primarily due to a decrease in average daily volumes [7] Market Data and Key Metrics Changes - Interest and fee income on client balances increased by $52 million or 46% year-over-year, with the acquisition of RJO contributing $50 million [5] - Average client equity increased by 71% and average money market FDIC sweep client balances rose by 25% [5] - The payments segment's net operating revenues increased by 8% year-over-year but decreased by 3% sequentially [5] Company Strategy and Development Direction - The company has been active in M&A, completing six transactions in 2025, including the transformational acquisition of RJ O'Brien, which positions the company as the largest non-bank FCM in the U.S. [8][11] - The strategy focuses on organic growth and leveraging acquisitions to enhance product offerings and market share [8][9] - The company aims to achieve significant cost and capital synergies from the RJO acquisition, estimating $50 million in annual run rate cost synergies [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the transformative potential of the RJO acquisition, highlighting strong client growth and integration progress [15][22] - The company anticipates that the combination of acquisitions and organic growth will drive results for 2026 [23] - Management noted that the overall attrition of clients post-acquisition has been limited, indicating successful integration efforts [22] Other Important Information - The company reported a notable increase in client assets under custody, contributing to a stable and predictable income stream [23] - The company has made significant enhancements to its product offerings, including the build-out of a metals vault and improvements in digital asset services [13][14] Q&A Session Summary Question: How are early cross-selling efforts with RJO clients going? - Management indicated that cross-selling efforts are progressing well, with significant interest from RJO clients in new products, although tracking revenue synergies remains challenging [25][26] Question: Did precious metals trading improve after gold was exempted from tariffs? - Management noted that the precious metals business faced challenges due to low volatility and tariff disruptions but has shown improvement in the current quarter [28] Question: What drove the increase in RPC for listed derivatives? - The increase was attributed to the introduction of the RJO business, which had higher average rates per contract compared to the company's previous offerings [30]

Financial Data and Key Metrics Changes - Fourth quarter net income reached a record $85.7 million, representing a 12% growth year-over-year, while diluted earnings per share (EPS) grew by only 1% due to an increase in shares outstanding from the acquisition of RJ O'Brien [2][3] - Operating revenues exceeded $1.2 billion, up 31% compared to the previous year and 17% sequentially [3] - Net income for the full fiscal year was a record $305.9 million, up 17%, with an EPS of $5.89 and a return on equity (ROE) of 15.6% [4][22] Business Line Data and Key Metrics Changes - Operating revenues from listed contracts increased by 76% year-over-year, driven by the acquisition of RJO, contributing $89.5 million [5] - OTC derivatives revenues grew by 27% year-over-year but declined by 1% sequentially [5] - Payments revenues increased by 8% year-over-year but decreased by 3% sequentially, primarily due to a decline in rate per million [5] Market Data and Key Metrics Changes - Average client equity increased by 71% year-over-year, with the acquisition of RJO contributing significantly to this growth [5] - FXCFD revenues declined by 34% year-over-year, attributed to low volatility in FX markets [5] - The institutional segment saw record net operating revenues and segment income growth of 67% and 73%, respectively, largely due to the RJO acquisition [6] Company Strategy and Development Direction - The company has been active in M&A, completing six transactions in 2025, including the transformational acquisition of RJ O'Brien, which positions the company as the largest non-bank FCM in the U.S. [8][11] - The strategy focuses on being opportunistic in acquisitions while ensuring they are accretive to the company's ecosystem and shareholder value [9][10] - The integration of RJO is expected to yield significant cost and capital synergies, with a target of $50 million in annual run rate cost synergies [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential stemming from the RJO acquisition and the overall market dynamics, including the withdrawal of banks and consolidation of smaller firms [8][22] - The company anticipates that the integration of RJO will enhance its product offerings and client base, driving future revenue growth [17][21] - Management remains focused on executing with discipline and precision, emphasizing the importance of collaboration between leadership teams [21][22] Other Important Information - The company recorded pre-tax acquisition-related charges of approximately $9.3 million in the current quarter, impacting diluted EPS by about $0.13 [2][4] - The company has made significant enhancements to its product offerings, including the build-out of a metals vault and improvements in digital asset services [13][14] Q&A Session Summary Question: How are early cross-selling efforts with RJO clients going? - Management indicated that early cross-selling efforts are progressing well, with significant interest from RJO clients in new products, although tracking revenue synergies remains challenging [25][26] Question: Did precious metals trading improve after gold was exempted from tariffs? - Management noted that while the precious metals business faced challenges due to market dislocation, conditions have improved, and they expect a positive trend moving forward [28][29] Question: What drove the increase in RPC for listed derivatives? - The increase in RPC was attributed to the introduction of the RJO business, which had higher average rates per contract compared to the company's previous offerings [30][31]

Core Insights - StoneX Group Inc. reported record fiscal year results with net income of $305.9 million, a 17% increase year-over-year, and quarterly net operating revenues of $585.1 million, up 29% [1][2] - The company achieved a record quarterly net income of $85.7 million, with a quarterly return on equity (ROE) of 15.2% [1][2] - The strong performance was attributed to growth in equities trading, prime brokerage, and fixed income, alongside the successful acquisitions of R.J. O'Brien and The Benchmark Company, LLC [2][3] Financial Performance - For the fiscal year ended September 30, 2025, total revenues reached $132.4 billion, a 33% increase from $99.9 billion in the previous year [5] - Quarterly net operating revenues increased to $585.1 million from $454.8 million, marking a 29% rise [26] - The company reported a diluted earnings per share (EPS) of $1.57 for the quarter and $5.89 for the fiscal year, reflecting increases of 1% and 11% respectively [1][5] Revenue Breakdown - Operating revenues from listed derivatives increased by 76% to $207.6 million for the quarter, driven by the acquisition of R.J. O'Brien [13][17] - Securities transactions saw a revenue increase of 26% to $519.4 million, supported by a 25% rise in average daily volume [19][20] - Operating revenues from physical contracts rose by 24% to $65.9 million, primarily due to increased agricultural and energy revenues [21] Segment Performance - The Commercial segment reported revenues of $31.8 billion for the fiscal year, a 33% increase, while the Institutional segment's revenues grew by 27% to $2.5 billion [33] - The Self-Directed/Retail segment experienced a decline in quarterly revenues by 22% to $81.1 million, although it saw a slight annual increase of 4% [9][10] - Payments segment revenues increased by 7% to $52.1 million for the quarter, with a 2% annual growth [9][10] Cost and Expense Analysis - Total interest expense for the quarter was $436.3 million, a 29% increase from the previous year, primarily due to growth in the securities repo and lending businesses [23][24] - Variable compensation and benefits increased by 52% to $183.2 million for the quarter, reflecting the company's growth [27] - Total non-variable expenses were reported at $293.8 million, accounting for 45% of total expenses, compared to 49% in the previous year [27] Strategic Outlook - The company aims to enhance its product offerings and client base through the integration of recent acquisitions, focusing on expanding geographic reach and maintaining high client service standards [3][2] - The acquisition of R.J. O'Brien is expected to significantly contribute to future revenue growth, with an incremental $5.6 billion in average client equity post-acquisition [22][17]

Core Insights - The partnership between OTCX and BlackRock's Aladdin represents a significant advancement in the digital transformation of OTC derivatives trading, aiming to enhance automation and transparency throughout the trade lifecycle [3][5]. Group 1: Partnership Overview - OTCX has entered a multi-year partnership with Aladdin, BlackRock's technology platform, to digitize dealer-to-client "voice" trading, moving away from manual workflows to more efficient electronic solutions [1][2]. - The integration will provide buy-side and sell-side participants with streamlined tools for price discovery, order execution, and post-trade management, reducing reliance on traditional communication methods [2][4]. Group 2: Workflow Modernization - The integration will offer Aladdin clients comprehensive end-to-end workflow support, covering price discovery, request-for-market, execution, and post-trade processing, thereby improving operational efficiency and cost-effectiveness for institutions [4][6]. - OTCX aims to provide market participants with more choices, lower costs, and efficient workflows in a historically complex and fragmented market [5]. Group 3: Operational Efficiency - By connecting to Aladdin, OTCX enables institutional traders to compare quotes, manage risk, and execute trades in a regulated environment, enhancing visibility into pricing and liquidity [6][8]. - The initiative addresses inefficiencies caused by manual, voice-based interactions, which have historically limited transparency and increased the risk of human error in OTC derivatives trading [7][8].

Core Insights - StoneX Group Inc. reported a quarterly net operating revenue of $488.3 million, reflecting a 4% increase year-over-year, and a net income of $63.4 million, with a return on equity (ROE) of 13.1% for the quarter [1][3][21]. Financial Performance - The company achieved total revenues of $34,828.8 million for the three months ended June 30, 2025, a 29% increase compared to $27,069.7 million in the same period of 2024 [6]. - The net operating revenues for the nine months ended June 30, 2025, were $1,467.7 million, up 12% from $1,312.4 million in the prior year [21]. Segment Performance - The Institutional segment saw a significant revenue increase of 23% to $626.0 million for the three months ended June 30, 2025, compared to $508.9 million in 2024 [10]. - The Self-Directed/Retail segment also grew by 19%, reaching $114.2 million, up from $96.2 million year-over-year [10]. - Conversely, the Commercial segment experienced a decline of 14%, with revenues of $225.8 million compared to $262.2 million in the previous year [10]. Acquisitions - The company completed the acquisitions of R.J. O'Brien and The Benchmark Company, enhancing its market position in global derivatives and expanding its capital markets offerings [4][5]. Expenses and Profitability - Total compensation and other expenses increased by 5% to $401.4 million for the three months ended June 30, 2025, compared to $382.3 million in 2024 [7]. - The company incurred $8.9 million in acquisition-related charges during the quarter, impacting diluted EPS by approximately $0.12 [3]. Key Metrics - The diluted earnings per share (EPS) for the quarter was $1.22, a decrease of 2% from $1.25 in the same quarter of the previous year [8]. - The year-to-date ROE stood at 15.9%, down from 16.4% in the prior year [8].

Financial Data and Key Metrics Changes - Second quarter net income was $71.7 million with diluted earnings per share of $1.41, representing a 3529% increase year-over-year but down 1617% from the previous quarter [6][50] - Operating revenues reached a record $956 million, up 17% year-over-year and up 1% from the previous quarter [6][50] - Return on equity was 15.7%, despite a 51% increase in book value over the last two years [6] Business Line Data and Key Metrics Changes - Operating revenues from physical contracts increased by 58% year-over-year, driven by strong growth in precious metals and physical agriculture and energy businesses [8] - Operating revenues from listed derivatives were up 15% year-over-year and quarter-over-quarter, primarily from the commercial segment [9] - Operating revenues from OTC derivatives increased by 14% year-over-year and 65% from the previous quarter, particularly in Brazil and European markets [9] - Payments operating revenues were up 2% year-over-year but down 13% from the previous quarter [9] - FX and CFD revenues decreased by 12% despite a 10% increase in average daily volume, due to a 19% decline in rate per million [10] Market Data and Key Metrics Changes - The company experienced a challenging market environment for FX and CFDs, with a significant decline in rate per million [11] - Interest and fee income from client balances decreased by 2% year-over-year, primarily due to lower short-term interest rates [16] Company Strategy and Development Direction - The company announced a planned acquisition of RJ O'Brien, which is expected to enhance its position in global derivatives and financial market infrastructure [18][24] - The acquisition is anticipated to provide significant revenue synergies and enhance margins, EPS, and return on equity [24][51] - The company is also expanding its ecosystem through partnerships, such as with Bamboo Payment Systems for local payment services in Latin America [27] Management's Comments on Operating Environment and Future Outlook - Management expects higher volatility in the next twelve months due to geopolitical tensions and supply chain uncertainties, which could be beneficial for the company [56][60] - The company is optimistic about its growth trajectory following the acquisition of RJ O'Brien and believes it will capitalize on ongoing industry transformations [51] Other Important Information - The company received CME approval for its New York-based metals vault, enhancing its capabilities in the metals market [30] - The company is actively expanding its presence in the Indian market through its establishment in Gift City [46] Q&A Session Summary Question: Health of the markets and near-term outlook - Management noted that while volatility had declined over the past year, recent months have seen a dramatic increase in volatility due to tariffs and trade reform, which is expected to be a net positive for the company [55][60] Question: Catalysts for growth in the payments business - Management discussed the recent technology upgrades that have increased capacity and allowed for higher transaction volumes, indicating a potential turnaround in the payments segment [62][64] Question: Fee per million in the retail segment - Management explained that the decline in fee per million was due to a normalization from previously high levels and a product mix that included tighter spreads [74][75] Question: Risk management policies during higher volatility - Management highlighted the effectiveness of their risk management systems during periods of high volatility, noting that they performed well without significant issues [82]

Financial Data and Key Metrics Changes - Second quarter net income was $71,700,000 with diluted earnings per share of $1.41, representing a 3529% growth year-over-year but down 1617% from the previous quarter [6] - Record operating revenues reached $956,000,000, up 17% year-over-year and up 1% from the previous quarter [6] - Return on equity was 15.7% despite a 51% increase in book value over the last two years [6] Business Line Data and Key Metrics Changes - Operating revenues from physical contracts increased by 58% year-over-year, driven by strong growth in precious metals and physical agriculture and energy businesses [9] - Operating revenues from listed derivatives were up 15% year-over-year and quarter-over-quarter, primarily from the commercial segment [10] - Operating revenues from OTC derivatives increased by 14% year-over-year and 65% from the previous quarter, particularly in Brazil and European markets [10] - Payments operating revenues were up 2% year-over-year but down 13% from the previous quarter [10] - FX and CFD revenues decreased by 12% despite a 10% increase in average daily volume, due to a 19% decline in rate per million [11] Market Data and Key Metrics Changes - The commercial segment saw an 18% increase in net operating revenues, driven by strong performance in physical contracts [12] - The institutional segment experienced record net operating revenues and segment income growth of 28% and 41% respectively [13] - The self-directed retail segment reported a 14% decline in net operating revenues and a 34% decline in segment income [14] Company Strategy and Development Direction - The company announced a planned acquisition of RJ O'Brien, which is expected to enhance its position in global derivatives and improve its market access and service capabilities [18][19] - The acquisition is anticipated to provide significant revenue synergies and enhance margins, EPS, and return on equity [24] - The company is also expanding its ecosystem through partnerships, such as with Bamboo Payment Systems for local payment services in Latin America [27] Management's Comments on Operating Environment and Future Outlook - Management anticipates higher volatility in the next twelve months due to geopolitical tensions and regulatory changes, which could benefit the company's performance [56] - The company is optimistic about its growth trajectory following the acquisition of RJ O'Brien and believes it is well-positioned to capitalize on industry transformations [49] - Management emphasized the importance of maintaining a strong risk management framework during periods of high volatility [80] Other Important Information - The company received CME approval for its New York-based metals vault, enhancing its capabilities in the metals market [30] - The company completed the acquisition of JBR Recovery, a silver recycler, which strengthens its position in the metals ecosystem [31] Q&A Session Summary Question: Health of the markets and near-term outlook - Management noted that while volatility had declined over the past year, recent geopolitical events have led to increased volatility, which is expected to continue [54][56] Question: Prospects for the payments business - Management discussed recent technology upgrades that have improved capacity and efficiency, leading to increased volumes in the payments segment [62][64] Question: Retail segment performance and fee per million - Management explained that the decline in fee per million was due to a normalization from previously high levels and a product mix that included tighter spreads [73][74]