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    SNEX
    Earnings call· Mar 2026(Q2 FY26)

    StoneX Group Q2 FY26 earnings call SNEX

    May 7, 2026 Source

    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

    5

    • 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

    3

    • 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

    4
    SegmentRevenueYoYQoQMargin
    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%
    		Record111%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%—

    Operational metrics

    43
    Net income
    $174.3 millionup 143% YoY
    Q2 FY26

    Record net income.

    Diluted EPS
    $2.07up 120% YoY
    Q2 FY26

    Record diluted EPS. Growth rate lower than net income due to additional shares outstanding from RJO acquisition.

    Return on equity
    26.5%
    Q2 FY26

    Despite a 75% increase in book value over the last 2 years.

    Return on tangible equity
    37%
    Q2 FY26
    Net operating revenues
    $1.6 billionup 70% YoY
    Q2 FY26

    Record net operating revenues.

    Bad debt expense
    $12.3 millionincreased
    Q2 FY26

    Primarily within our Commercial segment.

    Fixed compensation and other expenses (ex-bad debt)
    $16.4 millionup 5% QoQ
    Q2 FY26
    R.J. O'Brien pretax net income contribution
    $35 millionnice improvement QoQ
    Q2 FY26

    Excluding amortization of acquired intangibles and a $7.7 million negative mark-to-market adjustment on their investment portfolio.

    Trailing 12 months net income
    $462.4 millionup 57%
    TTM Q2 FY26

    Record.

    Trailing 12 months diluted EPS
    $5.60
    TTM Q2 FY26
    Trailing 12 months return on equity
    19.8%
    TTM Q2 FY26

    Above our target of 15%.

    Book value per share
    $34.16up $8.43 or 33% YoY
    Q2 FY26
    Return on tangible book value
    25.9%
    TTM Q2 FY26
    Operating revenues (total)
    $1.6 billionup 64% YoY
    Q2 FY26
    Net operating revenues (listed derivatives)
    $84.6 millionincreased
    Q2 FY26

    Versus prior year.

    Net operating revenues (physical contracts)
    $116 millionincreased
    Q2 FY26

    Versus prior year.

    Net operating revenues (OTC derivatives)
    $58.8 millionnearly doubled
    Q2 FY26

    Versus prior year.

    Net operating revenues (securities)
    $36.9 millionadded
    Q2 FY26

    Versus prior year.

    Interest and fee income on client balances (net)
    $33.2 millionincreased
    Q2 FY26

    Versus prior year, with RJO contributing $30.3 million.

    Trailing 12 months net operating revenues (listed derivatives)
    $187.7 millionincreased
    TTM Q2 FY26

    Primarily as a result of the acquisition of R.J. O'Brien as well as strong growth in LME base metal markets.

    Trailing 12 months net operating revenues (securities)
    $180.6 millionup
    TTM Q2 FY26

    Driven by a 27% increase in average daily volume and 17% increase in rate per million.

    Trailing 12 months net operating revenues (physical contracts)
    $162.1 millionadded
    TTM Q2 FY26

    Primarily driven by strong performance in precious metals.

    Trailing 12 months net operating revenues (OTC derivatives)
    $90.4 millionadded
    TTM Q2 FY26

    Off of strong performance in agricultural and energy markets, including renewable fuels.

    Trailing 12 months interest and fee income
    $87.6 millionincreased
    TTM Q2 FY26

    Primarily as a result of the acquisition of R.J. O'Brien.

    Interest and fee income on client balances (gross)
    $54.8 millionup 54% YoY
    Q2 FY26

    RJO contributed $53.9 million.

    Interest and fee income (net of interest paid and swaps)
    $103.6 millionincreased $29.1 million
    Q2 FY26

    RJO contributed $30.3 million in net interest. Declined $7.8 million QoQ, primarily related to an $11.7 million mark-to-market adjustment on our investment portfolio.

    Interest rate sensitivity (net income)
    $47.6 million
    Annualized

    Estimated change to net income for a 100 basis point change in short-term interest rates (up or down).

    Interest rate sensitivity (EPS)
    $0.58
    Annualized

    Estimated change to EPS for a 100 basis point change in short-term interest rates (up or down).

    SOFR swaps (aggregate position)
    $1.8 billionadditional $600 million entered
    Q2 FY26

    Hedges aggregate interest rate exposure.

    Listed derivatives volumes
    approaching 100 million
    Q2 FY26

    Record quarter.

    OTC derivatives volume
    over 1.5 million68% YoY increase
    Q2 FY26

    Record.

    Securities average day volume
    over $12 billion
    Q2 FY26

    Record, driven by strong performance across both equities and fixed income franchises.

    Payments average daily volume
    $92 million19% YoY growth
    Q2 FY26

    Second highest ADV, following the record set last quarter.

    FX CFD revenue capture
    $103up 6%
    Q2 FY26

    Reflecting the higher market volatility seen in this quarter.

    Average client equity
    approaching $14 billion
    Q2 FY26

    Record, reflecting the expanded scale of the platform following the RJO acquisition.

    Average client equity and FDIC sweep balances
    $15.2 billionup 91% YoY
    Q2 FY26

    Up 4% versus the immediately preceding quarter.

    Average client equity (RJO contribution)
    $6.4 billion
    Q2 FY26
    R.J. O'Brien integration synergies
    $6.9 million
    Q2 FY26

    Expected to reach $45 million by end of fiscal year 2026, with remaining piece dribbling in in 2027.

    Equities market making (securities covered)
    approximately 18,000
    current

    Globally.

    Equities market making (rank)
    #1consistently since 2015
    2025

    According to FINRA ORF data.

    Equities market making (rank)
    #1
    current
    Equities market making (global markets access)
    120
    current
    Physical contracts operating revenues (precious metals)
    $150 million
    Q2 FY26

    Out of $190 million total physical contract operating revenues.

    Risks & headwinds

    3
    Geopolitical uncertaintycurrent

    complex

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

    Increased credit losses due to heightened volatilityongoing

    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 activityQ3 FY26

    some moderation coming into April

    Mitigation: still an elevated volatility market

    What to watch in Q3 FY26

    4

    R.J. O'Brien integration completion

    End of May 2026 (Q3 FY26)
    CurrentU.S. FCM consolidation progressing, non-U.S. completed.
    TargetFull 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.

    Q&A highlights

    5

    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 read7 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    07

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.