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    SNEX
    Earnings call· Jun 2026(Q3 FY26)

    StoneX Group Q3 FY26 earnings call SNEX

    Aug 6, 2026 Source

    Executive summary

    StoneX Group Q3 FY26 — Strong Performance Across Commercial and Institutional Segments

    StoneX Group delivered strong Q3 FY26 results, driven by robust performance in its Commercial and Institutional segments, despite a moderation in market volatility. The company highlighted the successful integration of recent acquisitions and the continued scalability of its payments platform, reinforcing its ecosystem approach to client engagement and cross-selling opportunities. Management remains focused on disciplined M&A and leveraging technology for efficiency and product expansion.

    Highlights

    5

    • Total net operating revenues of $719.7 million, up 47% year-on-year.

    • Net income of $127.9 million, up 102% year-on-year.

    • Diluted EPS of $1.00 per share, an 85% increase versus prior year.

    • Global Prime Services client balances grew to over $16 billion, generating nearly $140 million in net operating revenue on a trailing 12-month basis.

    • RJO integration on track, with cost synergies reaching $37 million-$38 million run rate and client assets at nearly $13 billion.

    Concerns

    4

    • Moderation in volatility from exceptional Q2 levels.

    • FX and CFDs operating revenues down 19% year-on-year and 9% sequentially.

    • Self-Directed Retail segment net operating revenues decreased 17% and segment income down 36%.

    • Payments rate per million (RPM) declined 7% year-on-year, continuing a multi-year trend.

    Guidance & targets

    4
    CategoryTargetConfidence
    RJO Cost Synergies Run Rate
    $45 million-$46 million
    medium materiality
    High
    RJO Cost Synergies Run Rate
    $50 million
    medium materiality
    High
    Client Float Balances Growth
    high single-digit percent
    medium materiality
    Medium
    Payments Rate Per Million (RPM)
    continue to be a trend for the foreseeable future
    low materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Commercial
    Growth primarily from physical businesses and OTC derivatives, also increased legacy client activity and RJO acquisition impact on listed derivatives and NII. Sequential net operating revenues down 20%, segment income down 26%.
    Physical businesses revenue increase: $54.1 millionOTC derivatives revenue increase: $43.1 millionListed derivatives revenue increase: $26.3 millionNet interest income increase: $31.7 million
    		—90%down 20%119%
    Institutional
    Growth principally driven by securities revenues, listed derivatives, and interest/fee income, primarily from RJO acquisition. Benchmark contributed significantly to other net operating revenues. Sequential net operating revenues declined 1%, segment income increased 7%.
    Securities revenues increase: $45 millionListed derivatives increase: $38 millionInterest and fee income increase: $6.2 millionOther net operating revenues increase: $24.6 millionBenchmark contribution to other net operating revenues: $29.5 million
    		—56%declined 1%49%
    Self-Directed Retail
    Decreases driven by lower ADV in FX/CFD contracts, partially offset by higher RPM. Sequential net operating revenues declined 11%, segment income decreased 18%.
    Average daily volumes in FX/CFD contracts decrease: 27%Rate per million captured increase: 11%
    		—decreased 17%declined 11%down 36%
    Payments
    Growth driven by increased ADV, partially offset by lower RPM. Sequential net operating revenues increased 7%, segment income increased 8%.
    Average daily volume increase: 20%Rate per million decrease: 7%
    		—up 12%increased 7%increased 22%

    Operational metrics

    36
    Net Operating Revenues
    $719.7 millionup 47% versus prior year, down 13% versus immediately preceding quarter
    Q3 FY26

    Total net operating revenues of $719.7 million were up 47% versus the prior year, alongside net income of $127.9 million, up 102% year-on-year.

    Diluted EPS
    $1.00up 85% versus previous year
    Q3 FY26

    We also recorded a diluted EPS of $1 per share, an 85% increase versus the previous year

    Year-to-Date Diluted EPS
    $3.49up 82% against prior year
    YTD Q3 FY26

    taking our year-to-date EPS to $3.49 per share, up 82% against prior year.

    Return on Equity
    18.4%
    Q3 FY26

    This performance translated into a return on equity of 18.4%, significantly above our 15% ROE target

    Return on Tangible Equity
    25%
    Q3 FY26

    On a tangible book value basis, we achieved a return on tangible equity of 25% for the quarter.

    Operating Revenues
    $1.47 billionup 43% versus the prior year
    Q3 FY26

    We had operating revenues of approximately $1.47 billion, up 43% versus the prior year.

    Total Fixed Compensation and Other Expenses (ex-bad debt)
    $23.2 milliondown 7% versus immediately preceding quarter
    Q3 FY26

    Total fixed compensation and other expenses, excluding bad debt expense, were down 7% or $23.2 million versus the immediately preceding quarter.

    Fixed Compensation and Benefits
    21%up versus a year ago
    Q3 FY26

    Fixed compensation and benefits were up 21% versus a year ago, primarily as a result of the acquisitions noted and include $4.2 million in severance and retention costs.

    Fixed Compensation and Benefits
    $8.9 milliondown 6% versus immediately preceding quarter
    Q3 FY26

    Fixed compensation and benefits were down 6% or $8.9 million versus the immediately preceding quarter, driven by a $6.9 million decline in severance and retention costs, a decrease in back office and administrative salaries, along with a decrease in payroll taxes.

    RJO Net Operating Revenue Contribution
    $78.8 million
    Q3 FY26

    The acquisition of R.J. O'Brien contributed $78.8 million in net operating revenues for the quarter, net of unrealized negative mark-to-market adjustment on their investment portfolio and exchange common stock of $9.8 million

    Benchmark Net Operating Revenue Contribution
    $29.5 million
    Q3 FY26

    while Benchmark contributed $29.5 million for the third quarter, as Philip noted, their best performance to date.

    Trailing 12 Months Operating Revenues
    $5.7 billionup 48%
    LTM Q3 FY26

    our trailing 12 months results show operating revenues were up 48% to nearly $5.7 billion.

    Trailing 12 Months Net Income
    $526.9 millionup 77%
    LTM Q3 FY26

    Net income was a record $526.9 million, up 77%

    Trailing 12 Months Diluted EPS
    $4.19
    LTM Q3 FY26

    with diluted earnings per share of $4.19

    Trailing 12 Months Return on Equity
    20.8%
    LTM Q3 FY26

    an ROE of 20.8% for the trailing 12-month period.

    Book Value Per Share
    $23.70up $5.76 or 32% versus prior year
    Q3 FY26

    with a book value per share of $23.70, up $5.76 or 32% versus the prior year.

    Average Client Equity and FDIC Sweep Balances
    $16.2 billionup 108% versus prior year, up 7% versus immediately preceding quarter
    Q3 FY26

    For the third quarter, our average client equity and FDIC sweep balances were $16.2 billion, up 108% versus the prior year and up 7% versus the immediately preceding quarter.

    RJO Client Equity Contribution
    $6.6 billion
    Q3 FY26

    Average client equity increased 129% as RJO contributed $6.6 billion in average client equity for the quarter

    Interest and Fee Income on Client Float (Net)
    $111.9 millionincreased $38 million
    Q3 FY26

    The interest and fee income, net of interest paid to clients and the effect of interest rate swaps increased $38 million to $111.9 million in the current period, with the acquisition of R.J. O'Brien contributing $30 million in net interest in the current quarter.

    Net Income Sensitivity to Interest Rates
    $46.9 million
    Annualized

    we now estimate a 100 basis point change in short-term interest rates, either up or down, would result in a change to net income by $46.9 million or $0.38 per share on an annualized basis.

    SOFR Swaps (Additional)
    $750 million
    Q3 FY26

    During the third quarter of fiscal '26, we entered into an additional $750 million in fixed rate SOFR swaps to hedge our aggregate interest rate exposure

    SOFR Swaps (Aggregate)
    $2.55 billion
    Q3 FY26

    which brings our aggregate swap position to $2.55 billion with an average duration of approximately 1.5 years and an average rate of 3.51%.

    Global Prime Services Client Accounts
    700
    Q3 FY26

    we now serve more than 700 accounts globally

    Global Prime Services Client Balances
    $16 billion
    Q3 FY26

    with over $16 billion in client balances on the platform

    Global Prime Services Net Operating Revenue
    $140 million
    LTM Q3 FY26

    generating nearly $140 million in net operating revenue in the last 12 months.

    Global Prime Services Client Assets CAGR
    65%
    Since 2023

    with client assets growing at a CAGR of over 65% since 2023.

    RJO Required Client Assets
    $13 billion
    Q3 FY26

    as of the end of the quarter, hold nearly $13 billion in required client assets, further strengthening our position as the #1 nonbank FCM in United States.

    Common Stock Split
    three-for-two
    July 2026

    In July, we completed a three-for-two split of our common stock, and our shares began to trade on a split-adjusted basis at the market open on July 20, 2026.

    Professional Fees Recovery (Net)
    $8.5 million
    Q3 FY26

    There's about a $12.5 million recovery, insurance recovery and professional fees, net of some settlements, it's about $8.5 million, I would say, on a net basis for the quarter.

    Listed Derivatives Operating Revenues
    $68.6 millionup 62%
    Q3 FY26

    This included listed derivatives up 62% to $68.6 million.

    OTC Derivatives Operating Revenues
    $101.9 millionup 73%
    Q3 FY26

    OTC derivatives, up 73% to $101.9 million

    Physical Contracts Operating Revenues
    $87.4 millionup 162%
    Q3 FY26

    physical contracts, up 162% to $87.4 million.

    Payments Average Daily Volume (ADV)
    $96 million20% increase
    Q3 FY26

    In the Payment segment, we reported a 12% increase in net operating revenue and a 20% increase in ADV year-on-year to a record $96 million.

    Payments Rate Per Million (RPM)
    down 7%versus prior year
    Q3 FY26

    Average daily volume was up 20% versus the prior year, while rate per million was down 7%

    Payments Rate Per Million (RPM)
    $10,000
    Q1 FY26

    you did see a trend down a bit in the rate per million from a little over $10,000 to $9,400 per million.

    Payments Rate Per Million (RPM)
    $9,400
    Q3 FY26

    you did see a trend down a bit in the rate per million from a little over $10,000 to $9,400 per million.

    Deals & partnerships

    3
    Shinhan BankStrategic partnership to leverage StoneX's global network for complex cross-border payments.

    Partnership with one of South Korea's oldest and systemically important banks to leverage StoneX's global network for cross-border payments.

    R.J. O'BrienAcquisition of a U.S. FCM, leading to consolidation and client migration.

    Largest transaction completed by StoneX, integration of U.S. FCM substantially completed, client migration largely finished.

    The Benchmark CompanyAcquisition bolstering the Institutional segment.

    Contributed to the Institutional segment's performance, marking its best quarterly performance to date.

    Risks & headwinds

    4
    Moderation in market volatilityQ3 FY26

    moderation in volatility this quarter from exceptional levels of the second quarter

    Mitigation: Diversified business model, continued client engagement, investments in platform and ecosystem.

    Decline in FX/CFD operating revenuesQ3 FY26

    Down 19% year-on-year, down 9% sequentially. ADV and RPM declined 12% and 8% respectively.

    Mitigation: Not explicitly stated, but implied by diversified business model.

    Decreased net operating revenues and segment income in Self-Directed RetailQ3 FY26

    Net operating revenues decreased 17%, segment income down 36%.

    Mitigation: Not explicitly stated.

    Continued decline in Payments Rate Per Million (RPM)Ongoing, "foreseeable future"

    Down 7% year-on-year. Trended from ~$10,000 to $9,400 per million.

    Mitigation: Strategic shift to high-volume, low-value payments enabled by X-Pay system, increasing overall volume and capacity.

    What to watch in Q4 FY26

    5

    RJO Cost Synergies Run Rate

    By end of FY26
    Current$37 million-$38 million
    Target$45 million-$46 million

    Why it matters

    Verifies the successful integration and cost efficiency targets of the largest acquisition.

    still targeting kind of what we talked about last quarter by the end of the fiscal year, so end of next quarter to be mid-40s, $45 million, $46 million run rate

    Q&A highlights

    6

    Seeking color on underlying activity driving strong physical market performance and impact of "Project Vault."

    Philip Smith explained the physical business is split between metals and non-metals. Precious metals saw strong performance due to market dislocations. The non-metals physical business (cotton, coffee, cocoa) continues to grow by leveraging strong financial business and client base, offering unique embedded optionality in physical contracts. Project Vault was not directly addressed.

    “Bringing those together, I think, makes a very formidable product line for us and something we want to highlight in a couple of quarters' time, where we've brought together various parts of the business that we've acquired.”

    asked by Dan Fannon · answered by Philip Smith

    2 min read6 chapters

    Detailed Narrative

    01

    Q3 FY26 Performance Overview

    StoneX reported strong Q3 FY26 results with net operating revenues up 47% to $719.7 million and net income up 102% to $127.9 million. Diluted EPS reached $1.00, an 85% increase year-on-year. This performance was achieved despite a moderation in market volatility🌐 compared to the previous quarter, demonstrating the strength and diversity of the company's business model.

    02

    Acquisition Integration and Contribution

    The integration of R.J. O'Brien (RJO) is substantially complete for the U.S. FCM consolidation, with client migration largely finished this quarter. RJO contributed $78.8 million in net operating revenues, while The Benchmark Company added $29.5 million, marking its best quarterly performance. Cost synergies from RJO are on track, reaching a $37 million-$38 million annualized run rate, with a target of $50 million by Q1 FY27.

    03

    Global Prime Services Growth

    The Global Prime Services platform has emerged as a significant growth driver, serving over 700 accounts globally with more than $16 billion in client balances. It generated nearly $140 million in net operating revenue over the last 12 months, growing at a CAGR of over 65% since 2023. The business focuses on underserved mid-market clients, offering integrated execution, clearing, custody, and financing solutions.

    04

    Payments Business Scalability

    The Payments segment saw a 12% increase in net operating revenue and a 20% increase in average daily volume (ADV) to a record $96 million, driven by the highest number of transactions through the platform. This growth validates continued investment in proprietary technology, enabling the platform to support significantly higher volumes without material expense increases, positioning StoneX for strategic partnerships like the one with Shinhan Bank.

    05

    Physical Business Expansion

    The physical business, encompassing both metals and non-metals, continues to expand, particularly in precious metals due to market dislocations and in agricultural commodities. StoneX leverages its strong financial and OTC derivatives capabilities to offer unique embedded optionality in physical contracts, creating a formidable product line and expanding its ecosystem for clients.

    06

    Technology and AI Adoption

    StoneX is increasingly leveraging AI to accelerate and improve the efficiency of its automated trading platforms, particularly in OTC derivatives. This enterprise-wide capability is central to the company's technology build-out, leading to early wins in areas like electronic swap matching and expected future efficiencies in reconciliations, investigations, and new product rollouts.

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