Core Insights - StoneX Group Inc. reported quarterly earnings of $1.22 per share, missing the Zacks Consensus Estimate of $1.39 per share, representing an earnings surprise of -12.23% [1] - The company posted revenues of $1.02 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 10.96%, compared to $913.7 million in the same quarter last year [2] - StoneX Group shares have increased approximately 50.4% year-to-date, significantly outperforming the S&P 500's gain of 7.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.42 on revenues of $910.6 million, and for the current fiscal year, it is $5.90 on revenues of $3.81 billion [7] - The estimate revisions trend for StoneX Group was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Financial - Miscellaneous Services industry, to which StoneX Group belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Financial Highlights and Executive Summary](index=1&type=section&id=StoneX%20Group%20Inc.%20Reports%20Fiscal%202025%20Third%20Quarter%20Financial%20Results) [Q3 FY2025 Financial Highlights](index=1&type=section&id=Q3%20FY2025%20Financial%20Highlights) StoneX Group reported a **4%** year-over-year increase in quarterly **net operating revenues** to **$488.3 million** and a **2%** rise in **net income** to **$63.4 million** for the third quarter of fiscal 2025. **Diluted EPS** was **$1.22**, a slight decrease from the prior year, partly due to **$8.9 million** in **acquisition-related charges** Q3 FY2025 Key Financial Metrics | Metric | Q3 FY2025 | Change vs. Q3 FY2024 | | :--- | :--- | :--- | | Net Operating Revenues | $488.3 million | +4% | | Net Income | $63.4 million | +2% | | Diluted EPS | $1.22 | -2% | | Return on Equity (ROE) | 13.1% | -2.6 p.p. | - The quarter's results were impacted by **$8.9 million** in **acquisition-related charges**, which reduced **diluted EPS** by approximately **$0.12**. These charges included **$6.5 million** in **bridge loan financing fees** and **$2.4 million** in **professional fees**[2](index=2&type=chunk) [Executive Commentary and Strategic Developments](index=1&type=section&id=Executive%20Commentary%20and%20Strategic%20Developments) The Executive Vice-Chairman highlighted the company's diversified business model, where strong growth in the Institutional and Self-Directed/Retail segments offset declines in the Commercial segment caused by lower commodity volatility. The company successfully closed the acquisitions of R.J. O'Brien and The Benchmark Company, LLC post-quarter end, which is expected to significantly enhance its global derivatives and capital markets offerings - The company's diversified business model showed resilience, with strong performance in the **Institutional** (notably equities) and **Self-Directed/Retail** segments compensating for weakness in **Commercial** businesses[2](index=2&type=chunk) - On July 31, 2025, the company closed the acquisitions of **R.J. O'Brien** and **The Benchmark Company, LLC**[3](index=3&type=chunk) - **R.J. O'Brien** is positioned to make **StoneX** a **market leader** in global derivatives, having generated approximately **$766 million** in **revenue** and **$170 million** in **EBITDA** in calendar 2024[3](index=3&type=chunk) - **The Benchmark Company, LLC** acquisition enhances the **capital markets offering** with a full-service investment banking firm, expanding the client base and capabilities[3](index=3&type=chunk) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) [Consolidated Financial Statements Summary](index=2&type=section&id=StoneX%20Group%20Inc.%20Summary%20Financials) For the third quarter of FY2025, total revenues grew **29%** YoY to **$34.8 billion**, driven by a significant increase in sales of physical commodities. **Net operating revenues** rose **4%** to **$488.3 million**. **Net income** increased by **2%** to **$63.4 million**, while **diluted EPS** decreased slightly by **2%** to **$1.22**. For the nine months ended June 30, 2025, **net income** grew **20%** to **$220.2 million** Consolidated Financial Results (in millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $34,828.8 | $27,069.7 | 29% | | Net Operating Revenues | $488.3 | $468.5 | 4% | | Income Before Tax | $85.6 | $88.0 | (3)% | | Net Income | $63.4 | $61.9 | 2% | | Diluted EPS | $1.22 | $1.25 | (2)% | | Metric | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $99,654.8 | $68,748.8 | 45% | | Net Operating Revenues | $1,467.7 | $1,312.4 | 12% | | Income Before Tax | $299.6 | $256.0 | 17% | | Net Income | $220.2 | $184.1 | 20% | | Diluted EPS | $4.32 | $3.76 | 15% | [Net Operating Revenues Analysis](index=4&type=section&id=Net%20Operating%20Revenues) Consolidated **net operating revenues** increased **4%** YoY to **$488.3 million** in Q3. This growth was primarily driven by a **46%** surge in **Securities** revenues. However, this was partially offset by significant declines in **Physical Contracts** (**-40%**), **Listed Derivatives** (**-13%**), and **OTC Derivatives** (**-11%**), reflecting reduced commodity market volatility Net Operating Revenues by Product (in millions) | Product | Q3 2025 | Q3 2024 | % Change | | :--- | :--- | :--- | :--- | | Securities | $125.5 | $86.2 | 46% | | FX/CFD contracts | $77.4 | $67.6 | 14% | | Physical contracts | $33.3 | $55.8 | (40)% | | Listed derivatives | $56.9 | $65.3 | (13)% | | OTC derivatives | $58.8 | $66.2 | (11)% | | Interest, net / fees | $73.9 | $86.4 | (14)% | | **Total** | **$488.3** | **$468.5** | **4%** | [Interest Expense Analysis](index=4&type=section&id=Interest%20expense) Total interest expense for Q3 FY2025 rose **22%** YoY to **$391.4 million**. The increase was mainly due to a **25%** rise in interest expense from trading activities, particularly in fixed income securities and securities borrowing, reflecting growth in those businesses. Corporate funding interest expense included a one-time **$6.5 million** fee for bridge loan financing related to the R.J. O'Brien acquisition - Interest expense from trading activities increased **25%** YoY to **$371.3 million**, driven by growth in the **security repo** and **securities lending businesses**[14](index=14&type=chunk) - Corporate funding interest expense for the quarter included **$6.5 million** in **bridge loan financing fees** related to the **R.J. O'Brien** acquisition[15](index=15&type=chunk) [Expense Structure (Variable vs. Fixed)](index=5&type=section&id=Variable%20vs.%20Fixed%20Expenses) The company's expense structure remained consistent year-over-year. In Q3 FY2025, **total non-interest expenses** were **$546.0 million**, with **variable expenses** comprising **53%** and **non-variable expenses** making up **47%**. This is a similar split to the prior-year quarter Expense Structure Breakdown - Q3 2025 vs Q3 2024 (in millions) | Expense Type | Q3 2025 | % of Total | Q3 2024 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Total variable expenses | $288.5 | 53% | $264.7 | 52% | | Total non-variable expenses | $257.5 | 47% | $241.7 | 48% | | **Total non-interest expenses** | **$546.0** | **100%** | **$506.4** | **100%** | [Balance Sheet Summary](index=11&type=section&id=Balance%20Sheet%20Summary) As of June 30, 2025, **StoneX** reported **total stockholders' equity** of **$1.98 billion**, an increase from **$1.71 billion** at the end of fiscal year 2024. Key assets such as 'Securities purchased under agreements to resell' and 'Financial instruments owned' saw significant increases. **Net asset value per share** grew to **$40.36** from **$35.75** over the same period Key Balance Sheet Items (in millions) | Item | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,313.1 | $1,269.0 | | Securities purchased under agreements to resell | $8,159.3 | $5,201.5 | | Financial instruments owned, at fair value | $8,973.9 | $6,767.1 | | Securities sold under agreements to repurchase | $13,375.4 | $8,581.3 | | Stockholders' equity | $1,978.8 | $1,709.1 | - **Net asset value per share** increased to **$40.36** as of June 30, 2025, compared to **$35.75** as of September 30, 2024[33](index=33&type=chunk) [Segment Performance Analysis](index=5&type=section&id=Segment%20Results) [Commercial Segment](index=6&type=section&id=Commercial) The **Commercial** segment experienced a significant downturn in Q3, with **segment income** falling **36%** YoY to **$80.2 million**. This was driven by a **24%** decrease in **net operating revenues** to **$168.3 million**, primarily due to lower performance in physical contracts (**-44%**) and derivatives, reflecting diminished commodity market volatility Commercial Segment Performance (in millions) | Metric | Q3 2025 | Q3 2024 | % Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $225.8 | $262.2 | (14)% | | Net Operating Revenues | $168.3 | $220.5 | (24)% | | Segment Income | $80.2 | $125.7 | (36)% | - **Net operating revenues** from **Physical contracts** fell **44%** YoY, and **Listed Derivatives** fell **18%** YoY, contributing to the segment's decline[24](index=24&type=chunk) [Institutional Segment](index=7&type=section&id=Institutional) The **Institutional** segment delivered strong results, with **segment income** increasing **41%** YoY to **$87.4 million**. This growth was fueled by a **27%** rise in **net operating revenues** to **$200.1 million**. The standout performer was **Securities**, where **net operating revenues** surged **48%** YoY, driven by a **25%** increase in **average daily volume** and a **15%** rise in **rate per million** Institutional Segment Performance (in millions) | Metric | Q3 2025 | Q3 2024 | % Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $626.0 | $508.9 | 23% | | Net Operating Revenues | $200.1 | $157.7 | 27% | | Segment Income | $87.4 | $62.2 | 41% | - **Securities net operating revenues** grew **48%** YoY to **$119.8 million**, supported by a **25%** increase in **average daily volume**[25](index=25&type=chunk)[27](index=27&type=chunk) [Self-Directed/Retail Segment](index=8&type=section&id=Self-Directed/Retail) The **Self-Directed/Retail** segment showed robust growth, with **segment income** jumping **49%** YoY to **$41.2 million**. **Net operating revenues** increased **18%** to **$80.6 million**, primarily driven by a **17%** rise in **net operating revenues** from **FX/CFD contracts**, which benefited from a **34%** increase in **average daily volume** Self-Directed/Retail Segment Performance (in millions) | Metric | Q3 2025 | Q3 2024 | % Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $114.2 | $96.2 | 19% | | Net Operating Revenues | $80.6 | $68.5 | 18% | | Segment Income | $41.2 | $27.6 | 49% | - **FX/CFD contracts net operating revenues** grew **17%** to **$70.2 million**, as **average daily volume** increased **34%** YoY[28](index=28&type=chunk) [Payments Segment](index=9&type=section&id=Payments) The **Payments** segment delivered a stable performance in Q3, with **segment income** remaining flat YoY at **$28.1 million**. **Net operating revenues** saw a modest **3%** increase to **$50.2 million**. While the **average daily volume** of payments increased by **16%**, the **rate per million (RPM)** decreased by **6%**, resulting in steady overall results Payments Segment Performance (in millions) | Metric | Q3 2025 | Q3 2024 | % Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $53.3 | $51.1 | 4% | | Net Operating Revenues | $50.2 | $48.7 | 3% | | Segment Income | $28.1 | $28.2 | 0% | - **Payments average daily volume (ADV)** increased **16%** YoY, but this was offset by a **6%** decrease in **rate per million (RPM)**[29](index=29&type=chunk) [Overhead Costs and Expenses](index=10&type=section&id=Overhead%20Costs%20and%20Expenses) Total **overhead costs and expenses** increased by **9%** YoY to **$140.4 million** in Q3. The rise was primarily driven by a **7%** increase in **compensation and benefits** and a **12%** increase in **other expenses**. Notably, **professional fees** rose **38%** and **non-trading technology support costs** increased **19%**. After allocating **$43.0 million** to operating segments, net overhead costs were **$97.4 million** Overhead Costs Breakdown (in millions) | Expense Category | Q3 2025 | Q3 2024 | % Change | | :--- | :--- | :--- | :--- | | Compensation and benefits | $78.6 | $73.6 | 7% | | Other expenses | $61.8 | $55.2 | 12% | | **Total Overhead Costs** | **$140.4** | **$128.8** | **9%** | - Significant drivers of the increase in 'Other expenses' were **Professional fees** (**+38%**) and **Non-trading technology and support** (**+19%**)[31](index=31&type=chunk) [Other Information](index=12&type=section&id=Other%20Information) [Conference Call & Web Cast](index=12&type=section&id=Conference%20Call%20%26%20Web%20Cast) The company will host a conference call and webcast on Wednesday, August 6, 2025, at **9:00 a.m. Eastern time** to discuss the financial results. A live webcast and replay will be available on the company's corporate website - A conference call to discuss financial results is scheduled for August 6, 2025, at **9:00 a.m. Eastern time**[34](index=34&type=chunk) [About StoneX Group Inc.](index=12&type=section&id=About%20StoneX%20Group%20Inc.) **StoneX Group Inc.** is a **Fortune-500 company** financial services company headquartered in New York City. It operates a global network connecting clients to the market ecosystem through digital platforms and expert services. With over **4,700 employees** in more than 80 offices, the company serves over **54,000 commercial, institutional, and payments clients**, and over **400,000 retail accounts** worldwide - **StoneX** is a **Fortune-500 company** with over **4,700 employees** serving more than **54,000 commercial, institutional, and payments clients**, and over **400,000 retail accounts** globally[36](index=36&type=chunk) [Forward-Looking Statements](index=12&type=section&id=Forward%20Looking%20Statements) This press release contains forward-looking statements regarding the company's financial condition, business strategy, and the anticipated impact of its recent acquisitions. These statements are based on current expectations and are subject to known and unknown risks and uncertainties, including market conditions, competition, and regulatory changes. The company claims safe harbor protection for these statements under the Private Securities Litigation Reform Act of 1995 - The report includes forward-looking statements concerning financial condition, business strategy, and the impact of acquisitions like **R.J. O'Brien**[37](index=37&type=chunk) - These statements involve risks and uncertainties, and the company cautions readers not to place undue reliance on them, claiming protection under the safe harbor provisions of the **Private Securities Litigation Reform Act of 1995**[38](index=38&type=chunk)[39](index=39&type=chunk)

Core Insights - StoneX Group Inc. reported a quarterly net operating revenue of $488.3 million, reflecting a 4% increase year-over-year, and a net income of $63.4 million, with a return on equity (ROE) of 13.1% for the quarter [1][3][21]. Financial Performance - The company achieved total revenues of $34,828.8 million for the three months ended June 30, 2025, a 29% increase compared to $27,069.7 million in the same period of 2024 [6]. - The net operating revenues for the nine months ended June 30, 2025, were $1,467.7 million, up 12% from $1,312.4 million in the prior year [21]. Segment Performance - The Institutional segment saw a significant revenue increase of 23% to $626.0 million for the three months ended June 30, 2025, compared to $508.9 million in 2024 [10]. - The Self-Directed/Retail segment also grew by 19%, reaching $114.2 million, up from $96.2 million year-over-year [10]. - Conversely, the Commercial segment experienced a decline of 14%, with revenues of $225.8 million compared to $262.2 million in the previous year [10]. Acquisitions - The company completed the acquisitions of R.J. O'Brien and The Benchmark Company, enhancing its market position in global derivatives and expanding its capital markets offerings [4][5]. Expenses and Profitability - Total compensation and other expenses increased by 5% to $401.4 million for the three months ended June 30, 2025, compared to $382.3 million in 2024 [7]. - The company incurred $8.9 million in acquisition-related charges during the quarter, impacting diluted EPS by approximately $0.12 [3]. Key Metrics - The diluted earnings per share (EPS) for the quarter was $1.22, a decrease of 2% from $1.25 in the same quarter of the previous year [8]. - The year-to-date ROE stood at 15.9%, down from 16.4% in the prior year [8].

Core Viewpoint - StoneX Group Inc. has successfully completed the acquisition of The Benchmark Company, enhancing its capital markets capabilities and establishing a stronger presence in investment banking and equity research [1][2]. Group 1: Acquisition Details - The acquisition was initially announced on March 11, 2025, and adds a complementary suite of capabilities to StoneX's existing offerings [2]. - Benchmark is recognized for its strong client relationships in high-growth sectors such as Technology, Industrials, Consumer, and Healthcare [2]. Group 2: Strategic Fit and Integration - Benchmark's seasoned investment banking team and professionals across institutional sales, trading, and equity research will integrate into StoneX's Institutional division [3]. - The Benchmark brand will be maintained in the near term to ensure continuity for clients and counterparties [3]. Group 3: Leadership Insights - Jacob Rappaport, Global Head of Equities at StoneX, expressed excitement about the acquisition, highlighting the strategic step in broadening capital markets capabilities [3]. - Richard Messina, Founder and CEO of Benchmark, noted that joining StoneX allows for scaling reach and leveraging a global cross-asset product platform [4]. Group 4: Company Overview - StoneX Group Inc. operates a global financial services network, connecting clients to the markets through digital platforms, clearing and execution services, and deep expertise [5]. - The company serves over 54,000 commercial, institutional, and payments clients, as well as more than 400,000 retail accounts across over 70 offices on six continents [6].

Core Viewpoint - StoneX Group Inc. has successfully completed the acquisition of R.J. O'Brien, making it the largest non-bank Futures Commission Merchant in the U.S. and enhancing its position in the global derivatives market [1][4]. Company Overview - StoneX Group Inc. operates a global financial services network, connecting various market participants through digital platforms and execution services [6][7]. - The company serves over 54,000 commercial and institutional clients, along with more than 260,000 self-directed retail accounts [7]. Acquisition Details - R.J. O'Brien, founded in 1914, supports over 75,000 client accounts and has generated $766 million in revenue and approximately $170 million in EBITDA during 2024 [2][8]. - The acquisition is expected to create significant revenue synergies through cross-selling opportunities in OTC derivatives, physical commodity trading, and fixed income products [4]. Financial Impact - StoneX targets $50 million in expense savings and aims to unlock at least $50 million in capital synergies through operational consolidation [4]. - The acquisition is projected to expand StoneX's client float by nearly $6 billion, enhancing margins and return on equity while being accretive to earnings [4]. Strategic Benefits - The combined company will provide clients access to nearly every major global derivatives exchange and a comprehensive multi-asset platform [3]. - The integration of technologies and tools from both companies is expected to deliver significant benefits in risk management and trading execution across multiple asset classes [5].

Company Overview - StoneX Group Inc. operates a global financial services network connecting companies, organizations, traders, and investors to the market ecosystem through digital platforms and execution services [3] - The company is headquartered in New York City and is listed on the Nasdaq Global Select Market (NASDAQ: SNEX) [3] - StoneX serves over 54,000 commercial, institutional, and global payments clients, along with more than 400,000 self-directed/retail accounts from over 80 offices across six continents [3] Upcoming Financial Results - StoneX will release its fiscal 2025 third quarter results after market close on August 5, 2025 [1] - A conference call to review these results will take place on August 6, 2025, at 9:00 a.m. Eastern Time [1] Conference Call Details - A live web cast of the conference call will be available, along with additional information in PDF form on the company's website [2] - Participants can preregister for the conference call approximately ten minutes before the start time [2] - A replay of the call will be accessible for those unable to attend the live broadcast [2]

Core Viewpoint - The market anticipates StoneX Group Inc. (SNEX) will report a year-over-year increase in earnings driven by higher revenues in its upcoming earnings report for the quarter ended June 2025 [1] Earnings Expectations - The consensus estimate for StoneX Group's quarterly earnings is $1.39 per share, reflecting a year-over-year increase of +9.5% [3] - Expected revenues for the quarter are $923.1 million, which is a 1% increase from the same quarter last year [3] Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 7.17% higher, indicating a positive reassessment by analysts [4] - The Most Accurate Estimate for StoneX Group is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.72% [12] Earnings Surprise History - In the last reported quarter, StoneX Group exceeded the expected earnings of $1.32 per share by delivering $1.41, resulting in a surprise of +6.82% [13] - The company has beaten consensus EPS estimates in all of the last four quarters [14] Industry Context - In the Zacks Financial - Miscellaneous Services industry, Acadian Asset Management is expected to post earnings of $0.52 per share for the same quarter, indicating a year-over-year change of +15.6% [18] - Acadian Asset Management's revenue is projected to be $118.07 million, up 8.3% from the previous year [19]

Core Insights - StoneX Group Inc. (SNEX) has a strong history of beating earnings estimates and is positioned well for future earnings performance [1][5] - The average surprise for the last two quarters was 11.68%, indicating consistent outperformance [1] - Recent earnings estimates for StoneX Group have been revised upward, contributing to a positive Earnings ESP of +0.72% [5][8] Earnings Performance - For the most recent quarter, StoneX Group reported earnings of $1.32 per share, missing the expected $1.41 per share by 6.82% [2] - In the previous quarter, the company exceeded expectations by reporting $1.69 per share against a consensus estimate of $1.45 per share, resulting in a surprise of 16.55% [2] Earnings ESP and Zacks Rank - The Zacks Earnings ESP indicates that analysts have recently become more optimistic about StoneX Group's earnings prospects [8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing nearly 70% success in similar scenarios [6][8]

Group 1 - The articles contain fragmented and unclear data, making it difficult to extract coherent insights about specific companies or industries [1][2]. - There is mention of various numerical figures, but without context or clear relevance to a particular company or industry, the significance remains ambiguous [1][2]. - The presence of names and terms related to financial metrics suggests a focus on market analysis, yet the lack of structured information limits the ability to derive actionable insights [1][2]. Group 2 - The author of the articles is identified as a market reporter with extensive experience, indicating a potential focus on financial news and analysis [3]. - The articles emphasize the importance of accuracy in financial reporting, although the content provided does not reflect this commitment due to its fragmented nature [4].

Group 1 - StoneX Group Inc. (SNEX) has seen a strong performance with a 14.2% increase in stock price over the past month and a 48.7% gain since the start of the year, outperforming the Zacks Finance sector and the Zacks Financial - Miscellaneous Services industry [1] - The company has a consistent record of positive earnings surprises, beating the Zacks Consensus Estimate in the last four quarters, with the latest EPS reported at $1.41 against a consensus estimate of $1.32 [2] - For the current fiscal year, StoneX Group is projected to post earnings of $5.82 per share on revenues of $3.72 billion, reflecting a 9.79% change in EPS and an 8.19% change in revenues [3] Group 2 - The stock currently has a Value Score of B, Growth Score of B, and Momentum Score of D, resulting in a combined VGM Score of B [6] - StoneX Group trades at 16.7X current fiscal year EPS estimates, which is a premium compared to the peer industry average of 11.9X, indicating a valuation that is not in the top echelon from a value perspective [7] - The company holds a Zacks Rank of 2 (Buy) due to a solid earnings estimate revision trend, suggesting potential for further stock price appreciation [8]