Core Insights - StoneX Group reported a very strong start to fiscal 2026, achieving record net operating revenues, net income, and earnings per share for the quarter ended December 31, 2025 [4][7] Financial Performance - Operating revenues totaled just over $1.4 billion, reflecting a 52% increase year-over-year and a 20% increase sequentially [1] - Net operating revenues increased 47% year-over-year and 24% sequentially [1] - The company posted record net income of $139 million and diluted EPS of $2.50, with net income rising 63% year-over-year and EPS increasing 48% [3][7] - Return on equity was reported at 22.5%, with a book value per share of $48.17 [2][7] Business Segments and Growth Drivers - Growth was primarily driven by listed derivatives, which saw revenues rise by $157.3 million year-over-year, including $130.7 million from the R.J. O'Brien acquisition [6][8] - Precious metals segment generated $75 million in income, with revenues increasing by $83.9 million [6][10] - Operating revenues from OTC derivatives climbed 72% year-over-year, while physical contracts saw a 69% increase [8] Integration and Synergies - The integration of R.J. O'Brien and Benchmark contributed pre-tax net income of $28.5 million and $4.6 million, respectively [5][14] - Management affirmed expected synergies of $50 million, with milestones anticipated later in fiscal 2026 [5][17] - The U.K. consolidation released $20 million in capital, with further consolidations planned [16] Client Activity and Market Position - Average client equity increased by 100%, with R.J. O'Brien contributing $5.8 billion in average client equity during the quarter [9] - StoneX's precious metals operation is described as an "ecosystem," providing various services including OTC liquidity and logistics for physical metal [11][12] Stock Actions - The board approved a 3-for-2 stock split, with shares expected to be distributed on March 20, 2026 [22]

Financial Data and Key Metrics Changes - The company reported record net income of $139 million and diluted earnings per share (EPS) of $2.50, representing a 63% growth in net income and a 48% growth in EPS year-over-year [11][38] - Operating revenues exceeded $1.4 billion, up 52% compared to the prior year and up 20% from the previous quarter [12] - Total fixed compensation and other expenses increased by $75.6 million or 31% year-over-year, with $44.4 million attributed to the acquisition of R.J. O'Brien [12][13] Business Line Data and Key Metrics Changes - The commercial segment's net operating revenues increased by 65%, driven by growth in listed and OTC derivatives [21] - The institutional segment reported record net operating revenues and segment income, with growth of 86% and 78% respectively, primarily due to a $54.9 million increase in securities revenues [22] - The self-directed retail segment saw a decline in net operating revenues by 34% and segment income down 67%, largely due to a 41% decline in rate per million captured in FX CFD contracts [23] Market Data and Key Metrics Changes - Operating revenues derived from physical contracts increased by 69% year-over-year, primarily driven by an increase in precious metals operating revenues [17] - Average client equity and average money market FDIC sweep client balances increased by 100% and 5% respectively [18] - Payments revenues were down 4% year-over-year but up 7% compared to the previous quarter, primarily due to an increase in average daily volume [18] Company Strategy and Development Direction - The company aims to leverage its diversified product offerings and global footprint to capture growth opportunities across various markets [5][10] - The integration of R.J. O'Brien is expected to enhance cross-selling opportunities and expand the company's capabilities in the financial services sector [27][28] - The company is focusing on expanding its global hedging business and enhancing its digital platforms to improve client engagement and operational efficiency [30][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capitalizing on current market volatility due to the company's diverse offerings and strong balance sheet [38] - The company benefits from increased market volatility but is cautious about extreme volatility that could negatively impact clients [54][55] - Management remains optimistic about the potential for revenue growth from regional banks and the integration of new capabilities from the R.J. O'Brien acquisition [66][70] Other Important Information - The company announced a 3-for-2 stock split of its common stock, which will be effective after the close of trading on March 20, 2026 [25][26] - The integration of R.J. O'Brien is on track, with significant capital released from the consolidation of entities [28] Q&A Session Summary Question: How much of the strength in physical trading came from cross-selling RJO clients? - Management indicated that the strength was primarily driven by heightened interest in precious metals rather than from traditional R.J. O'Brien clients [42] Question: Are cost synergies from the RJO acquisition on track? - Management confirmed that they are still affirming the $50 million figure for cost synergies, with expectations for continued progress throughout the fiscal year [46] Question: What is the outlook for the institutional segment and rate per million? - Management noted that the institutional segment is still in early stages of expansion, with a more normalized rate per million expected moving forward [49][72] Question: How is the health of the customer post-quarter? - Management stated that while they benefit from increased volatility, extreme volatility can stress clients, and they focus on maintaining strong relationships to support them [54][55] Question: What are the near-term cross-sale opportunities from the R.J. O'Brien deal? - Management highlighted the importance of integration and education for R.J. O'Brien clients to introduce new capabilities and products [58][59]

Financial Data and Key Metrics Changes - The company reported record net income of $139 million and diluted earnings per share (EPS) of $2.50, representing a 63% growth in net income and a 48% growth in EPS year-over-year [11][38] - Operating revenues exceeded $1.4 billion, up 52% compared to the prior year and up 20% from the previous quarter [12] - Total fixed compensation and other expenses increased by $75.6 million or 31% year-over-year, with $44.4 million attributed to the acquisition of R.J. O'Brien and Benchmark [12][13] - The trailing 12-month results showed net income at a record $359.8 million, up 30%, with diluted EPS of $6.70 and a return on equity (ROE) of 16.9% [15] Business Line Data and Key Metrics Changes - The commercial segment's net operating revenues increased by 65%, driven by growth in listed and OTC derivatives [21] - The institutional segment reported record net operating revenues and segment income, with growth of 86% and 78% respectively, primarily due to a $54.9 million increase in securities revenues [22] - The self-directed retail segment saw a decline in net operating revenues by 34% and segment income down 67%, attributed to a 41% decline in rate per million captured in FX CFD contracts [23] Market Data and Key Metrics Changes - Operating revenues derived from physical contracts increased by 69% year-over-year, primarily driven by an $83.9 million increase in precious metals operating revenues [18] - Average client equity and average money market FDIC sweep client balances increased by 100% and 5% respectively [18] - Payments revenues were down 4% year-over-year but up 7% compared to the previous quarter, primarily due to an increase in average daily volume [18] Company Strategy and Development Direction - The company aims to leverage its diversified product offerings and global footprint to capture growth opportunities across various markets [5][10] - The integration of R.J. O'Brien is on track, with expectations of achieving synergies and enhancing cross-sell opportunities [27][28] - The company is focusing on expanding its global hedging business and enhancing its digital capabilities to improve client engagement and operational efficiency [30][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capitalizing on current market volatility due to the company's diverse offerings and strong balance sheet [38] - The company benefits from increased market volatility but is cautious about extreme volatility that could negatively impact clients [54][55] - Management remains optimistic about the potential for revenue growth from regional banks and the integration of new products and services [66][70] Other Important Information - The company announced a 3-for-2 stock split of its common stock, effective March 23, 2026 [25][26] - The integration of R.J. O'Brien is expected to release $20 million in capital following the consolidation of the U.K. entity [28] Q&A Session Summary Question: How much of the strength in the physical trading business came from cross-selling RJO clients? - Management indicated that the strength was primarily driven by heightened interest in precious metals rather than from traditional R.J. O'Brien clients [42] Question: Are cost synergies from the RJO acquisition on track? - Management confirmed that they are still affirming the $50 million figure for cost synergies, with expectations for continued progress throughout the fiscal year [46] Question: What is the outlook for the institutional segment and rate per million? - Management noted that the institutional segment is still in early stages of expansion, with a more normalized rate per million expected moving forward [49] Question: How is the health of the customer post-quarter? - Management stated that while they benefit from increased volatility, extreme volatility can stress clients, and they focus on maintaining client liquidity [54] Question: What are the near-term cross-sale opportunities from the R.J. O'Brien deal? - Management highlighted the importance of integration and education for R.J. O'Brien clients to introduce new capabilities and products [58]

Financial Data and Key Metrics Changes - The company reported record net income of $139 million, representing a 63% increase year-over-year, with diluted earnings per share (EPS) of $2.50, up 48% [12][40] - Operating revenues exceeded $1.4 billion, marking a 52% increase compared to the previous year and a 20% increase from the preceding quarter [13] - Net operating revenues increased by 47% year-over-year, driven by strong performance across various segments [20] Business Line Data and Key Metrics Changes - The commercial segment's net operating revenues rose by 65%, with significant growth in listed and OTC derivatives [22] - The institutional segment achieved record net operating revenues and segment income, growing by 86% and 78% respectively, primarily due to increased securities revenues [23] - The self-directed retail segment saw a decline in net operating revenues by 34%, attributed to a significant drop in FX CFD contracts [23] Market Data and Key Metrics Changes - Operating revenues from physical contracts increased by 69% year-over-year, driven by a substantial rise in precious metals revenues [19] - The company experienced a 72% increase in OTC derivatives revenues, reflecting heightened client activity in Brazilian and European markets [18] - Payments revenues decreased by 4% year-over-year but increased by 7% compared to the previous quarter [19] Company Strategy and Development Direction - The company is focused on integrating R.J. O'Brien to enhance cross-selling opportunities and expand its ecosystem [28] - The strategic direction includes deepening market access and expanding product offerings, particularly in new markets such as power and carbon [37] - The company aims to strengthen its global hedging business by enhancing digital capabilities and client engagement [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capitalizing on current market volatility due to the company's diverse offerings and strong balance sheet [40] - The company noted that while increased volatility benefits its operations, extreme volatility can pose risks to clients, emphasizing the importance of client engagement [56] - Management remains optimistic about the potential for revenue growth from regional banks and the integration of R.J. O'Brien [69] Other Important Information - The company announced a 3-for-2 stock split, which will be effective on March 20, 2026 [27] - The integration of R.J. O'Brien is on track, with successful migration of entities and expected capital release [29] Q&A Session Summary Question: How much of the strength in physical trading came from cross-selling RJO clients? - Management indicated that the strength was primarily driven by heightened interest in precious metals rather than from R.J. O'Brien's traditional client base [43][44] Question: Are cost synergies from the R.J. O'Brien acquisition on track? - Management confirmed that they are still affirming the $50 million synergy target, with some early wins already realized [47][48] Question: What is the outlook for the institutional segment and rate per million? - Management noted that the institutional segment is still in early stages of expansion, with a more normalized rate per million expected moving forward [49][51] Question: How is the health of the customer post-quarter? - Management stated that while they benefit from increased volatility, extreme volatility can stress clients, and they focus on maintaining client liquidity [54][56] Question: What are the near-term cross-sale opportunities from the R.J. O'Brien deal? - Management highlighted ongoing integration efforts and the introduction of new capabilities to R.J. O'Brien clients as key opportunities [58][60]

Financial Performance - The company reported record quarterly net operating revenues of $724.4 million, representing a 47% increase compared to the previous year [1][16] - Net income for the quarter reached $139.0 million, a 63% increase year-over-year, with a quarterly return on equity (ROE) of 22.5% [1][7] - Quarterly diluted earnings per share (EPS) was $2.50, up 48% from $1.69 in the same quarter last year [1][7] Revenue Breakdown - Total revenues for the quarter were $39,029.9 million, a 40% increase from $27,935.3 million in the previous year [6] - The company saw significant growth in various revenue streams, including: - Sales of physical commodities increased by 39% to $37,689.1 million [6] - Commission and clearing fees surged by 104% to $305.0 million [6] - Interest income rose by 54% to $581.2 million [6] Segment Performance - The Commercial segment generated $427.4 million in operating revenues, an 82% increase from the previous year [10] - The Institutional segment reported operating revenues of $866.0 million, a 60% increase [10] - The Self-Directed/Retail segment experienced a decline, with revenues of $94.4 million, down 22% [10] Strategic Developments - The company announced a three-for-two stock split, aimed at increasing liquidity and making shares more accessible to a broader range of investors [1][3] - The CEO highlighted the company's strategic objective of building a unique ecosystem to enhance client service and capitalize on market activity [4][3] Key Metrics - The company achieved an adjusted EBITDA of $250.9 million, reflecting a 64% increase from the previous year [14] - The average client equity in listed derivatives doubled to $13,244 million, indicating strong client engagement [14] - The number of listed derivatives contracts increased by 58% to 84,120, showcasing robust trading activity [14]

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].