Inve US ▾
SNSNEX

StoneX Group (SNEX) Q3 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q3 FY26)· Financials· Aug 6, 2026

Source: earnings call transcript

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

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

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%

SNEX operating KPIs by quarter

SNEX operating KPIs stated on its earnings calls, by fiscal quarter
KPI Mar 2026 Q2 FY26This call Jun 2026 Q3 FY26Change 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.

Deals & partnerships

Shinhan Bank Strategic 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'Brien Acquisition 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 Company Acquisition bolstering the Institutional segment.

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

Risks & headwinds

Moderation in market volatility Q3 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 revenues Q3 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 Retail Q3 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

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

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

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

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