StoneX Group (SNEX) Q2 FY26 earnings call: the analyst Q&A

Earnings call· Mar 2026 (Q2 FY26)· Financials· May 7, 2026

Source: earnings call transcript

Executive summary

StoneX Group Q2 FY26 — Record Net Operating Revenues, Net Income, and EPS Driven by Broad-Based Strength

StoneX Group delivered a record Q2 FY26, achieving new highs in net operating revenues, net income, and EPS, driven by strong performance across all four operating segments and increased market volatility. The R.J. O'Brien integration remains on track for substantial completion this fiscal year, contributing significantly to results and expanding the firm's nonbank FCM presence. The company is also leveraging AI to enhance operational efficiency and accelerate product development, positioning for continued growth despite geopolitical complexities.

Highlights

Record net operating revenues of $1.6 billion, up 70% YoY.
Record net income of $174.3 million, up 143% YoY.
Record diluted EPS of $2.07, up 120% YoY.
Return on equity of 26.5% for the quarter, and 19.8% for the trailing 12 months, exceeding the 15% target.
R.J. O'Brien integration on track, contributing $35 million in pretax net income for the quarter.

Concerns

Bad debt expense increased $12.3 million, primarily in the Commercial segment.
Net payment of $1.9 million made to BTIG to resolve arbitration matter.
Average money market FDIC sweep client balances declined 7% YoY.

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Commercial Record net operating revenues and segment income. Growth in listed derivatives and interest income primarily driven by RJO acquisition and base metal markets on LME. Listed derivatives growth: 52%OTC derivatives growth: 98%Physical contracts growth: 239%Net interest income and fee income growth: 55%Segment income sequential growth: 36%	Record	111%	30%	Record
Institutional Strong growth in net operating revenues and segment income. Growth in listed derivatives and interest and fee income primarily driven by RJO acquisition. Segment income growth YoY: 40%Securities revenues increase: $33.3 millionListed derivatives increase: $60.4 millionInterest and fee income increase: $14 millionSegment income sequential decline: 13%	—	65%	-3%	—
Self-Directed Retail Demonstrates strong operating leverage. Growth driven by increased rate per million captured and average daily volumes in FX CFD contracts. Segment income growth YoY: 40%Rate per million captured in FX CFD contracts increase: 9%Average daily volumes increase: 3%Segment income sequential growth: 65%	—	15%	18%	—
Payments Net operating revenues up, but rate per million was down despite strong average daily volume growth. Segment income growth YoY: 30%Average daily volume growth: 19%Rate per million decline: 7%Segment income sequential decrease: 6%	—	10%	-3%	—

SNEX operating KPIs by quarter

SNEX operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Mar 2026 Q2 FY26	Jun 2026 Q3 FY26	Change vs prior quarter
Return on tangible common equity (ROTCE)	37% On a tangible book basis, this equates to a 37% return on tangible equity for the quarter. Source: earnings call transcript	25% On a tangible book value basis, we achieved a return on tangible equity of 25% for the quarter. Source: earnings call transcript	-12 pt

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Risks & headwinds

Geopolitical uncertainty current

complex

Mitigation:disciplined risk management will remain at the heart of our business

Increased credit losses due to heightened volatility ongoing

expected increased risk

Mitigation:work very closely with our clients each and every day to help mitigate that because communication with our clients through these extreme volatile periods is -- whilst unusual, it is important that we maintain that level of communication and ensure that we help our clients to minimize their own exposure, their own liquidity risks.

Moderation in activity Q3 FY26

some moderation coming into April

Mitigation:still an elevated volatility market

What to watch in Q3 FY26

R.J. O'Brien integration completion

End of May 2026 (Q3 FY26)

Current U.S. FCM consolidation progressing, non-U.S. completed.

Target Full U.S. FCM consolidation by end of May 2026.

Why it matters

Completion of integration is key to realizing full synergies and expanding the nonbank FCM platform.

This quarter we're currently and it is obviously an important quarter for us, and we've begun the process of the integration of our U.S. FCMs. And it's on a much more gradual basis, whereby we begin testing with some small group of clients. We then have a second group, which has already occurred, and then we have a gradual buildup to the entirety of the FCM consolidation at the end of this month.

Find out whether SNEX delivers this. Inve re-checks your case every morning.

Q&A highlights

Asked about the nature of volatility (good vs. bad), customer losses in natural gas (peer comment), and how business activity looks in April (Q3 start) given moderation in exchange volumes.

Management acknowledged that heightened volatility increases credit risk but noted minimal actual credit losses due to strong client communication. They confirmed some moderation in activity in April compared to Q2's record levels, but still described the environment as good with elevated volatility.

“But we do see -- we see that what you see is from the standpoint of some moderation coming into April as we start the third quarter just with a little bit -- I wouldn't -- it's certainly not normal, but off where you saw in Q2 from the standpoint of activity. But overall, a very good environment from the standpoint of interest rates and still an elevated volatility market.”

asked by Dan Fannon · answered by Philip Smith

2 min read 7 chapters

Detailed narrative

Record Performance Across Segments

StoneX reported a consecutive record quarter with record net operating revenues, net income, and EPS, driven by strong performance across all four operating segments. This highlights the depth and breadth of the company's product offerings and capabilities within its ecosystem. Nearly all products reported double-digit growth, benefiting from higher volatility and increased demand for services.

R.J. O'Brien Integration Progress and Contribution

The integration of R.J. O'Brien is on track for substantial completion later this fiscal year, with expected synergies and efficiencies unchanged. RJO contributed $35 million in pretax net income for the quarter and $6.4 billion in average client equity, making StoneX the largest nonbank FCM in the U.S. The U.S. FCM consolidation is progressing gradually, with full completion expected by the end of May 2026.

Impact of Volatility on Key Products

Increased market volatility significantly boosted performance, leading to record listed derivatives volumes approaching 100 million contracts and record OTC derivatives volumes exceeding 1.5 million contracts, a 68% YoY increase. Record securities average day volume surpassed $12 billion. The U.S.-Iran conflict was specifically cited as a driver for heightened volatility in agricultural and energy markets, including renewable fuels.

AI Deployment for Operational Efficiency and Innovation

StoneX is actively deploying AI as an enterprise force multiplier to enhance operational efficiency across the organization. Initiatives include AI-assisted automation in the X-Pay system for payment settlement, AI chatbots for client services, and AI agents to improve software developer productivity. This is expected to accelerate development, enhance agility, and deliver working solutions for commercial teams.

Global Equities Business and Market Making

The company highlighted its principal market-making business within global equities, operating as a global market intermediary. StoneX ranked #1 in over-the-counter American depository receipts and foreign securities in 2025 and makes markets in approximately 18,000 equities globally. Its market-making success is attributed to vertical integration, aggregation of diverse trading flow, and proprietary electronic platforms, with Reg NMS market-making volumes growing at a CAGR of over 130% since 2022.

Strategic Priorities for Market Making and Ecosystem Expansion

Key priorities for the market-making platform include streamlining operations, deepening market share (expanding NMS wholesale capabilities, growing outsourced trading, increasing presence in ETFs and global options), and strengthening global reach and technology (building Asia Pacific footprint, expanding EMEA sales). These efforts aim to process higher volumes, expand global reach, and support high operating leverage, further strengthening the broader equities ecosystem.

Resolution of Significant Litigation

StoneX successfully resolved significant legal matters, including the BTIG arbitration and the patent case inherited from GAIN Capital. A net payment of $1.9 million was made to BTIG, and an immaterial payment on May 4, 2026, fully resolved all differences. This marks the end of large-scale litigation that had resulted in heightened legal expenditures over the past five years.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.