Quarterly Net Operating Revenues of $488.3 million, up 4% Quarterly Net Income of $63.4 million, Quarterly ROE of 13.1%, YTD ROE of 15.9% Quarterly Diluted EPS of $1.22 per share NEW YORK, Aug. 05, 2025 (GLOBE NEWSWIRE) -- StoneX Group Inc. (the “Company”; NASDAQ: SNEX), a global financial services network that connects companies, organizations, traders and investors to the global market ecosystem through a unique blend of digital platforms, end-to-end clearing and execution services, high touch service an ...

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]