Core Viewpoint - The article emphasizes the importance of identifying and maintaining stock price trends for successful short-term investing, highlighting the use of a specific screening strategy to find stocks with strong fundamentals and positive price momentum [1][2]. Group 1: Stock Performance - StoneX Group Inc. (SNEX) has shown a solid price increase of 15.3% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - The stock has maintained a price increase of 0.5% over the last four weeks, suggesting that the upward trend is still intact [5]. - SNEX is currently trading at 81.8% of its 52-week high-low range, indicating a potential breakout opportunity [5]. Group 2: Fundamental Strength - SNEX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like SNEX that have the fundamental strength to sustain their recent uptrends [3]. - The article suggests that investors should explore other stocks that meet the criteria of the screening strategy to find potential winning investments [8].

Core Viewpoint - StoneX Group Inc. announced the pricing of a $625 million offering of 6.875% Senior Secured Notes due 2032, intended to fund the acquisition of R.J. O'Brien [1][2] Group 1: Offering Details - The offering consists of $625 million in aggregate principal amount of 6.875% Senior Secured Notes due 2032, to be issued by StoneX Escrow Issuer LLC [1] - The offering is targeted at qualified institutional buyers under Rule 144A and certain persons outside the U.S. under Regulation S [1] - The expected closing date for the offering is around July 8, 2025, subject to customary closing conditions [1] Group 2: Use of Proceeds - The gross proceeds from the offering will be deposited into a segregated escrow account until certain conditions are met [2] - Upon the closing of the proposed acquisition of R.J. O'Brien, the proceeds will be used to pay the purchase price and related fees, costs, and expenses [2] Group 3: Security and Guarantees - Until the completion of the Merger, the Notes will be secured only by a senior secured first priority lien on the Escrowed Proceeds [3] - After the Merger, the Notes will be fully guaranteed on a senior secured second lien basis by the Company's existing and future subsidiaries [3] - The Notes are expected to pay interest semi-annually at a rate of 6.875% per annum [3] Group 4: Company Overview - StoneX Group Inc. operates a global financial services network, connecting clients to the market ecosystem through digital platforms and execution services [7] - The company is headquartered in New York City, listed on the Nasdaq Global Select Market, and serves over 54,000 clients globally [7]

Core Viewpoint - StoneX Group Inc. announced a private offering of $625 million in Senior Secured Notes due 2032 to fund its proposed acquisition of R.J. O'Brien [1][2] Group 1: Offering Details - The offering will be made by StoneX Escrow Issuer LLC, a wholly-owned subsidiary, and the proceeds will be held in a segregated escrow account until certain conditions are met [2][3] - The Notes will initially be secured only by a senior secured first priority lien on the Escrowed Proceeds and will not be guaranteed until the closing of the Merger [3] - Upon the Merger's closing, the Notes will be fully guaranteed on a senior secured second lien basis by the Company's existing and future subsidiaries [3] Group 2: Use of Proceeds - The proceeds from the offering, along with cash on hand, will be used to pay the purchase price and related fees, costs, premiums, and expenses associated with the Merger [2] Group 3: Company Overview - StoneX Group Inc. operates a global financial services network, connecting various market participants through digital platforms and execution services [7] - The Company is a Fortune-100 entity headquartered in New York City, serving over 54,000 clients and managing more than 400,000 retail accounts across six continents [7]

Core Viewpoint - StoneX Group Inc. has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on an upward trend in earnings estimates, which significantly influences stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates in determining near-term stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors utilize earnings estimates to assess the fair value of stocks, leading to significant price movements based on their buying or selling activities [3]. Business Improvement Indicators - The increase in earnings estimates and the Zacks rating upgrade suggest an improvement in StoneX Group's underlying business, which could lead to higher stock prices as investors respond positively [4]. Earnings Estimate Revisions - For the fiscal year ending September 2025, StoneX Group is expected to earn $5.83 per share, with a 0.4% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [6]. - The upgrade of StoneX Group to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

Core Viewpoint - StoneX Group Inc. has announced the acquisition of Plantureux et Associés, a Paris-based brokerage firm specializing in agricultural commodities, which will enhance its presence in the French agricultural market, a key region for grain production in Europe [1][2]. Company Overview - StoneX Group Inc. operates a global financial services network, connecting various market participants through digital platforms and expertise, serving over 54,000 clients and more than 400,000 retail accounts from over 80 offices worldwide [3]. Acquisition Details - The acquisition of Plantureux is aimed at strengthening StoneX's position in the European agricultural commodities market and is subject to regulatory approval and customary closing conditions [2]. - Plantureux has nearly 40 years of experience in agricultural commodities and is recognized for its strong relationships in the French cereal market [2]. - The acquisition is part of StoneX's broader European growth strategy, following previous investments such as the acquisition of Octo Finances SA to expand fixed income capabilities [2]. Strategic Importance - France, as Europe's largest grain producer, is a critical link in the global agricultural value chain, making this acquisition strategically significant for StoneX [2]. - The acquisition will allow StoneX to provide localized expertise and high-touch service to clients in France and the surrounding region [2].

Financial Data and Key Metrics Changes - Second quarter net income was $71.7 million with diluted earnings per share of $1.41, representing a 3529% increase year-over-year but down 1617% from the previous quarter [6][50] - Operating revenues reached a record $956 million, up 17% year-over-year and up 1% from the previous quarter [6][50] - Return on equity was 15.7%, despite a 51% increase in book value over the last two years [6] Business Line Data and Key Metrics Changes - Operating revenues from physical contracts increased by 58% year-over-year, driven by strong growth in precious metals and physical agriculture and energy businesses [8] - Operating revenues from listed derivatives were up 15% year-over-year and quarter-over-quarter, primarily from the commercial segment [9] - Operating revenues from OTC derivatives increased by 14% year-over-year and 65% from the previous quarter, particularly in Brazil and European markets [9] - Payments operating revenues were up 2% year-over-year but down 13% from the previous quarter [9] - FX and CFD revenues decreased by 12% despite a 10% increase in average daily volume, due to a 19% decline in rate per million [10] Market Data and Key Metrics Changes - The company experienced a challenging market environment for FX and CFDs, with a significant decline in rate per million [11] - Interest and fee income from client balances decreased by 2% year-over-year, primarily due to lower short-term interest rates [16] Company Strategy and Development Direction - The company announced a planned acquisition of RJ O'Brien, which is expected to enhance its position in global derivatives and financial market infrastructure [18][24] - The acquisition is anticipated to provide significant revenue synergies and enhance margins, EPS, and return on equity [24][51] - The company is also expanding its ecosystem through partnerships, such as with Bamboo Payment Systems for local payment services in Latin America [27] Management's Comments on Operating Environment and Future Outlook - Management expects higher volatility in the next twelve months due to geopolitical tensions and supply chain uncertainties, which could be beneficial for the company [56][60] - The company is optimistic about its growth trajectory following the acquisition of RJ O'Brien and believes it will capitalize on ongoing industry transformations [51] Other Important Information - The company received CME approval for its New York-based metals vault, enhancing its capabilities in the metals market [30] - The company is actively expanding its presence in the Indian market through its establishment in Gift City [46] Q&A Session Summary Question: Health of the markets and near-term outlook - Management noted that while volatility had declined over the past year, recent months have seen a dramatic increase in volatility due to tariffs and trade reform, which is expected to be a net positive for the company [55][60] Question: Catalysts for growth in the payments business - Management discussed the recent technology upgrades that have increased capacity and allowed for higher transaction volumes, indicating a potential turnaround in the payments segment [62][64] Question: Fee per million in the retail segment - Management explained that the decline in fee per million was due to a normalization from previously high levels and a product mix that included tighter spreads [74][75] Question: Risk management policies during higher volatility - Management highlighted the effectiveness of their risk management systems during periods of high volatility, noting that they performed well without significant issues [82]

Financial Data and Key Metrics Changes - Second quarter net income was $71,700,000 with diluted earnings per share of $1.41, representing a 3529% growth year-over-year but down 1617% from the previous quarter [6] - Record operating revenues reached $956,000,000, up 17% year-over-year and up 1% from the previous quarter [6] - Return on equity was 15.7% despite a 51% increase in book value over the last two years [6] Business Line Data and Key Metrics Changes - Operating revenues from physical contracts increased by 58% year-over-year, driven by strong growth in precious metals and physical agriculture and energy businesses [9] - Operating revenues from listed derivatives were up 15% year-over-year and quarter-over-quarter, primarily from the commercial segment [10] - Operating revenues from OTC derivatives increased by 14% year-over-year and 65% from the previous quarter, particularly in Brazil and European markets [10] - Payments operating revenues were up 2% year-over-year but down 13% from the previous quarter [10] - FX and CFD revenues decreased by 12% despite a 10% increase in average daily volume, due to a 19% decline in rate per million [11] Market Data and Key Metrics Changes - The commercial segment saw an 18% increase in net operating revenues, driven by strong performance in physical contracts [12] - The institutional segment experienced record net operating revenues and segment income growth of 28% and 41% respectively [13] - The self-directed retail segment reported a 14% decline in net operating revenues and a 34% decline in segment income [14] Company Strategy and Development Direction - The company announced a planned acquisition of RJ O'Brien, which is expected to enhance its position in global derivatives and improve its market access and service capabilities [18][19] - The acquisition is anticipated to provide significant revenue synergies and enhance margins, EPS, and return on equity [24] - The company is also expanding its ecosystem through partnerships, such as with Bamboo Payment Systems for local payment services in Latin America [27] Management's Comments on Operating Environment and Future Outlook - Management anticipates higher volatility in the next twelve months due to geopolitical tensions and regulatory changes, which could benefit the company's performance [56] - The company is optimistic about its growth trajectory following the acquisition of RJ O'Brien and believes it is well-positioned to capitalize on industry transformations [49] - Management emphasized the importance of maintaining a strong risk management framework during periods of high volatility [80] Other Important Information - The company received CME approval for its New York-based metals vault, enhancing its capabilities in the metals market [30] - The company completed the acquisition of JBR Recovery, a silver recycler, which strengthens its position in the metals ecosystem [31] Q&A Session Summary Question: Health of the markets and near-term outlook - Management noted that while volatility had declined over the past year, recent geopolitical events have led to increased volatility, which is expected to continue [54][56] Question: Prospects for the payments business - Management discussed recent technology upgrades that have improved capacity and efficiency, leading to increased volumes in the payments segment [62][64] Question: Retail segment performance and fee per million - Management explained that the decline in fee per million was due to a normalization from previously high levels and a product mix that included tighter spreads [73][74]

Financial Performance - Q2 2025 - Operating revenues reached $956 million, a 17% increase year-over-year[9] - Net income increased by 35% to $71.7 million compared to the prior year quarter[9] - Diluted EPS increased by 29% to $1.41[9] - Return on Equity (ROE) was 15.7%[9] Financial Performance - Trailing Twelve Months (TTM) - Operating revenues reached $3,734.1 million, an 18% increase year-over-year[9] - Net income increased by 22% to $295.4 million[9] - Diluted EPS increased by 18% to $5.90[9] - Return on Equity (ROE) was 17.3%[9] Key Metrics - Average client equity + money-market/FDIC sweep client balances was approximately $7.9 billion, up 11% versus Q2'24[9] - Book value per share increased by 19% to $38.59[9] Segment Performance - Q2 2025 - Commercial segment net operating revenue was $193 million[17] - Institutional segment net operating revenue was $191 million[17] - Self-Directed/Retail segment net operating revenue was $74 million[17] - Payments segment net operating revenue was $64 million[17] Strategic Initiatives - StoneX has entered into a definitive agreement to acquire RJO, which generated approximately $766 million in revenue and approximately $170 million in EBITDA in 2024[36]

分组1 - StoneX Group Inc. reported quarterly earnings of $1.41 per share, exceeding the Zacks Consensus Estimate of $1.32 per share, and up from $1.11 per share a year ago, representing an earnings surprise of 6.82% [1] - The company achieved revenues of $956 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.37%, and an increase from $818.2 million year-over-year [2] - StoneX Group has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has increased approximately 43% since the beginning of the year, contrasting with a -4.7% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1.40 on revenues of $899.1 million, and for the current fiscal year, it is $5.81 on revenues of $3.63 billion [7] - The Zacks Industry Rank for Financial - Miscellaneous Services is in the bottom 43% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) This section presents unaudited financial statements, management's discussion, and market risk disclosures [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Unaudited condensed consolidated financial statements for Q1 and H1 2025, including balance sheets, income, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Snapshot of the company's financial position, detailing assets, liabilities, and equity at specific dates Balance Sheet Summary (in millions) | (in millions) | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total assets | $31,282.9 | $27,466.3 | | Total liabilities | $29,400.9 | $25,757.2 | | Total equity | $1,882.0 | $1,709.1 | - **Total assets** increased by **$3,816.6 million** (**13.9%**) from September 30, 2024, to March 31, 2025, primarily driven by increases in securities purchased under agreements to resell, financial instruments owned, and physical commodities inventory[9](index=9&type=chunk) - **Total liabilities** increased by **$3,643.7 million** (**14.1%**) over the same period, mainly due to a significant rise in securities sold under agreements to repurchase and financial instruments sold, not yet purchased[9](index=9&type=chunk) [Condensed Consolidated Income Statements](index=5&type=section&id=Condensed%20Consolidated%20Income%20Statements) Company's financial performance, including revenues, expenses, and net income for the reported periods Income Statement Highlights (in millions, except share and per share amounts) | (in millions, except share and per share amounts) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Sales of physical commodities | $35,992.6 | $21,321.9 | $63,043.7 | $40,142.8 | | Total revenues | $36,890.7 | $22,106.1 | $64,826.0 | $41,679.1 | | Operating revenues | $956.0 | $818.2 | $1,900.3 | $1,602.4 | | Net income | $71.7 | $53.1 | $156.8 | $122.2 | | Basic EPS | $1.49 | $1.12 | $3.26 | $2.59 | | Diluted EPS | $1.41 | $1.09 | $3.10 | $2.51 | - **Net income** increased by **35%** to **$71.7 million** for the three months ended March 31, 2025, compared to **$53.1 million** in the prior year, and by **28%** to **$156.8 million** for the six months ended March 31, 2025, compared to **$122.2 million** in the prior year[11](index=11&type=chunk) - **Operating revenues** grew by **17%** to **$956.0 million** for the three months ended March 31, 2025, and by **19%** to **$1,900.3 million** for the six months ended March 31, 2025, reflecting strong performance across various revenue streams[11](index=11&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Details changes in equity from non-owner sources, including net income and other comprehensive income components Comprehensive Income Summary (in millions) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $71.7 | $53.1 | $156.8 | $122.2 | | Foreign currency translation adjustment | $12.0 | $(4.6) | $(6.3) | $2.3 | | Cash flow hedges | $6.6 | $(0.8) | $(0.3) | $19.9 | | Total other comprehensive gain/(loss), net of tax | $18.6 | $(5.4) | $(6.6) | $22.2 | | Comprehensive income | $90.3 | $47.7 | $150.2 | $144.4 | - **Comprehensive income** for the three months ended March 31, 2025, was **$90.3 million**, a significant increase from **$47.7 million** in the prior year, driven by higher **net income** and a positive foreign currency translation adjustment[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash inflows and outflows from operating, investing, and financing activities for the periods Cash Flow Summary (in millions) | (in millions) | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash (used in)/provided by operating activities | $(632.3) | $936.4 | | Net cash used in investing activities | $(42.7) | $(26.1) | | Net cash (used in)/provided by financing activities | $(18.3) | $457.0 | | Net (decrease)/increase in cash, segregated cash, cash equivalents, and segregated cash equivalents | $(700.0) | $1,369.5 | | Cash, segregated cash, cash equivalents, and segregated cash equivalents at end of period | $5,972.6 | $7,411.2 | - The company experienced a net decrease of **$700.0 million** in cash, segregated cash, cash equivalents, and segregated cash equivalents for the six months ended March 31, 2025, primarily due to cash used in **operating activities**[17](index=17&type=chunk)[323](index=323&type=chunk) - **Operating activities** used **$632.3 million** in cash, a significant shift from **$936.4 million** provided in the prior year, largely influenced by changes in operating assets and liabilities such as securities purchased under agreements to resell and financial instruments owned[17](index=17&type=chunk)[323](index=323&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Outlines changes in the company's equity, including common stock, retained earnings, and comprehensive loss Stockholders' Equity Summary (in millions) | (in millions) | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Common Stock | $0.5 | $0.5 | | Treasury Stock | $(69.3) | $(69.3) | | Additional Paid-in Capital | $436.9 | $414.2 | | Retained Earnings | $1,545.7 | $1,388.9 | | Accumulated Other Comprehensive Loss, net | $(31.8) | $(25.2) | | Total Equity | $1,882.0 | $1,709.1 | - **Total stockholders' equity** increased by **$172.9 million** to **$1,882.0 million** as of March 31, 2025, from **$1,709.1 million** at September 30, 2024, primarily driven by **net income** and increases in additional paid-in capital[23](index=23&type=chunk) - **Retained earnings** increased by **$156.8 million**, reflecting the **net income** for the six months ended March 31, 2025[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed explanations and disclosures supporting the condensed consolidated financial statements [Note 1 – Basis of Presentation and Consolidation and Accounting Standards Adopted](index=10&type=section&id=Note%201%20%E2%80%93%20Basis%20of%20Presentation%20and%20Consolidation%20and%20Accounting%20Standards%20Adopted) Basis of financial statement presentation, consolidation, and impact of the 3-for-2 stock split - StoneX Group Inc. operates as a global financial services network connecting clients to the global market ecosystem through digital platforms, clearing, execution, and expertise[25](index=25&type=chunk) - On March 21, 2025, the Company completed a **3-for-2** common stock split, retroactively adjusting all share and per share amounts[33](index=33&type=chunk)[156](index=156&type=chunk) - The company's valuation policy for physical commodities inventory includes estimating the cost to complete refining, material type, and market prices to determine the lower of cost or net realizable value[32](index=32&type=chunk) [Note 2 – Earnings per Share](index=11&type=section&id=Note%202%20%E2%80%93%20Earnings%20per%20Share) Details the calculation of basic and diluted earnings per share (EPS) using the two-class method Earnings per Share Data (in millions, except share amounts) | (in millions, except share amounts) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income allocated to common stockholders | $69.6 | $51.2 | $152.0 | $117.9 | | Diluted weighted-average common shares | 49,376,423 | 47,248,414 | 48,981,445 | 47,060,608 | - Options to purchase **259,514** and **2,774,979** shares for the three months ended March 31, 2025 and 2024, respectively, were excluded from diluted EPS calculation as they were anti-dilutive[38](index=38&type=chunk) [Note 3 – Assets and Liabilities, at Fair Value](index=11&type=section&id=Note%203%20%E2%80%93%20Assets%20and%20Liabilities%2C%20at%20Fair%20Value) Fair value measurement framework, classifying assets and liabilities into Level 1, 2, or 3 - Fair value measurements are categorized into three levels: Level 1 (unadjusted quoted prices in active markets), Level 2 (quoted prices for similar assets/liabilities or models with observable inputs), and Level 3 (unobservable inputs)[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) Fair Value Assets and Liabilities (in millions) | (in millions) | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total assets at fair value | $11,838.7 | $10,523.8 | | Total liabilities at fair value | $3,582.5 | $3,120.1 | - The company uses independent price verification controls to validate relevant prices and considers counterparty credit risk for OTC derivative instruments[41](index=41&type=chunk)[43](index=43&type=chunk) [Note 4 – Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk](index=16&type=section&id=Note%204%20%E2%80%93%20Financial%20Instruments%20with%20Off-Balance%20Sheet%20Risk%20and%20Concentrations%20of%20Credit%20Risk) Addresses off-balance sheet risk from financial instruments and concentrations of credit risk Derivative Contracts Fair Value (in millions) | (in millions) | March 31, 2025 Assets | March 31, 2025 Liabilities | September 30, 2024 Assets | September 30, 2024 Liabilities | | :--- | :--- | :--- | :--- | :--- | | Gross fair value of derivative contracts | $6,149.0 | $5,935.7 | $7,235.9 | $7,144.1 | | Impact of netting and collateral | $(6,006.0) | $(5,956.8) | $(6,670.6) | $(6,614.6) | Notional Value of Hedging Instruments (in millions) | (in millions) | March 31, 2025 Notional Value | September 30, 2024 Notional Value | | :--- | :--- | :--- | | Interest rate contracts | $— | $500.0 | | Foreign currency forward contracts (USD equivalent) | $204.4 | $126.3 | Net Gains from Derivative Contracts (in millions) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net gains from derivative contracts | $87.3 | $104.0 | $321.8 | $150.5 | - The company manages credit risk by establishing credit/position limits, monitoring collateral levels daily, and requiring margin deposits from counterparties and clients[80](index=80&type=chunk)[81](index=81&type=chunk) [Note 5 – Allowance for Doubtful Accounts](index=20&type=section&id=Note%205%20%E2%80%93%20Allowance%20for%20Doubtful%20Accounts) Details allowance for doubtful accounts related to receivables and its activity for the six months ended March 31, 2025 Allowance for Doubtful Accounts (in millions) | (in millions) | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Allowance for doubtful accounts (broker-dealers, etc.) | $0.1 | $0.0 | | Allowance for doubtful accounts (clients) | $49.1 | $51.9 | Allowance for Doubtful Accounts Activity (in millions) | (in millions) | Six Months Ended March 31, 2025 | | :--- | :--- | | Balance as of September 30, 2024 | $51.9 | | Provision for bad debts | $1.5 | | Allowance charge-offs | $(4.1) | | Other | $(0.1) | | Balance as of March 31, 2025 | $49.2 | [Note 6 – Physical Commodities Inventory](index=20&type=section&id=Note%206%20%E2%80%93%20Physical%20Commodities%20Inventory) Details the composition of physical commodities inventory, including agriculture, energy, and precious metals Physical Commodities Inventory Composition (in millions) | (in millions) | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Physical agriculture and energy | $255.1 | $169.0 | | Precious metals - held by broker-dealer subsidiary | $248.0 | $207.6 | | Precious metals - held by non-broker-dealer subsidiaries | $293.1 | $304.5 | | Physical commodities inventory, net | $796.2 | $681.1 | - **Physical commodities inventory, net**, increased by **$115.1 million** (**16.9%**) from September 30, 2024, to March 31, 2025[86](index=86&type=chunk) [Note 7 – Goodwill](index=21&type=section&id=Note%207%20%E2%80%93%20Goodwill) Presents the allocation of goodwill across operating segments: Commercial, Institutional, Self-Directed/Retail, and Payments Goodwill by Segment (in millions) | (in millions) | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Commercial | $38.1 | $33.3 | | Institutional | $11.8 | $9.8 | | Self-Directed/Retail | $7.9 | $7.9 | | Payments | $10.0 | $10.0 | | Total Goodwill | $67.8 | $61.0 | - **Total goodwill** increased by **$6.8 million** from September 30, 2024, to March 31, 2025, with increases primarily in the Commercial and Institutional segments[87](index=87&type=chunk) [Note 8 – Intangible Assets](index=21&type=section&id=Note%208%20%E2%80%93%20Intangible%20Assets) Provides gross and net carrying values of intangible assets by class, including amortization expense Intangible Assets Summary (in millions) | (in millions) | March 31, 2025 Net Amount | September 30, 2024 Net Amount | | :--- | :--- | :--- | | Intangible assets subject to amortization | $16.4 | $13.8 | | Intangible assets not subject to amortization | $5.8 | $5.8 | | Total intangible assets | $22.2 | $19.6 | Amortization Expense (in millions) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Amortization expense related to intangible assets | $1.2 | $2.1 | $2.3 | $4.1 | - The company wrote off **$16.2 million** of fully amortized intangible assets during the six months ended March 31, 2025[89](index=89&type=chunk) [Note 9 – Credit Facilities](index=22&type=section&id=Note%209%20%E2%80%93%20Credit%20Facilities) Details committed and uncommitted credit facilities, outstanding balances, and covenant compliance Credit Facilities and Borrowings (in millions) | (in millions) | March 31, 2025 Outstanding | September 30, 2024 Outstanding | | :--- | :--- | :--- | | Committed Credit Facilities | $237.0 | $227.0 | | Uncommitted Credit Facilities | $97.2 | $104.9 | | Note Payable to Bank | $6.7 | $6.9 | | Senior Secured Notes due 2031 | $543.6 | $543.1 | | Total outstanding borrowings | $884.5 | $881.9 | - The company has committed credit facilities totaling **$1,205.0 million**, with **$237.0 million** **outstanding** as of March 31, 2025[91](index=91&type=chunk)[95](index=95&type=chunk) - The company issued **$550 million** in **7.875%** Senior Secured Notes due 2031 on March 1, 2024, with a carrying value of **$543.6 million** as of March 31, 2025[94](index=94&type=chunk)[95](index=95&type=chunk) [Note 10 – Securities and Commodity Financing Transactions](index=23&type=section&id=Note%2010%20%E2%80%93%20Securities%20and%20Commodity%20Financing%20Transactions) Describes repurchase agreements, securities borrowing/lending, and collateralization practices Secured Financing Transactions (in millions) | (in millions) | March 31, 2025 Total | September 30, 2024 Total | | :--- | :--- | :--- | | Securities sold under agreements to repurchase | $24,045.9 | $16,527.9 | | Securities loaned | $1,509.9 | $1,615.9 | | Gross amount of secured financing | $25,555.8 | $18,143.8 | Net Collateralized Transactions (in millions) | (in millions) | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Securities purchased under agreements to resell (Net) | $6,917.6 | $5,201.5 | | Securities borrowed (Net) | $1,803.9 | $1,662.3 | | Securities sold under agreements to repurchase (Net) | $11,137.3 | $8,581.3 | | Securities loaned (Net) | $1,509.9 | $1,615.9 | - The company monitors the fair value of securities loaned and borrowed daily and adjusts collateral as appropriate to limit credit risk[99](index=99&type=chunk) [Note 11 – Commitments and Contingencies](index=25&type=section&id=Note%2011%20%E2%80%93%20Commitments%20and%20Contingencies) Discloses involvement in legal actions and proceedings, including a civil complaint and related subpoenas - BTIG filed a civil complaint against the company and StoneX Financial Inc. in November 2023, alleging theft of trade secrets, which has moved to FINRA arbitration[106](index=106&type=chunk) - The company received subpoenas from the DOJ and SEC related to the BTIG complaint and is cooperating with these agencies[106](index=106&type=chunk) - Management believes that possible exposure from loss contingencies in excess of accrued amounts is not likely to be material to the company's earnings, financial position, or liquidity[107](index=107&type=chunk) [Note 12 – Accumulated Other Comprehensive Loss, Net](index=25&type=section&id=Note%2012%20%E2%80%93%20Accumulated%20Other%20Comprehensive%20Loss%2C%20Net) Summarizes changes in accumulated other comprehensive loss, net, including foreign currency translation and cash flow hedges Accumulated Other Comprehensive Loss Changes (in millions) | (in millions) | September 30, 2024 Balance | Other comprehensive loss, net of tax | March 31, 2025 Balance | | :--- | :--- | :--- | :--- | | Foreign Currency Translation Adjustment | $(31.3) | $(6.3) | $(37.6) | | Pension Benefits Adjustment | $(1.2) | $— | $(1.2) | | Cash Flow Hedge | $7.3 | $(0.3) | $7.0 | | Accumulated Other Comprehensive Loss, net | $(25.2) | $(6.6) | $(31.8) | - **Accumulated other comprehensive loss, net**, increased from **$(25.2) million** at September 30, 2024, to **$(31.8) million** at March 31, 2025, primarily due to foreign currency translation adjustments[110](index=110&type=chunk) [Note 13 – Revenue from Contracts with Clients](index=25&type=section&id=Note%2013%20%E2%80%93%20Revenue%20from%20Contracts%20with%20Clients) Details revenue recognition policies and disaggregates total revenues by source and primary geographic region Total Revenues by Source (in millions) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenues from contracts with clients | $820.4 | $509.2 | $1,483.5 | $1,136.6 | | Other sources of revenues | $36,070.3 | $21,596.9 | $63,342.5 | $40,542.5 | | Total revenues | $36,890.7 | $22,106.1 | $64,826.0 | $41,679.1 | Total Revenues by Geographic Region (in millions) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | United States | $1,880.0 | $1,407.7 | $3,664.4 | $3,011.2 | | Europe | $840.2 | $560.2 | $1,546.0 | $1,218.6 | | South America | $141.7 | $105.0 | $305.0 | $233.0 | | Middle East and Asia | $34,024.2 | $20,025.1 | $59,314.9 | $37,200.7 | | Other | $4.6 | $8.1 | $(4.3) | $15.6 | | Total revenues | $36,890.7 | $22,106.1 | $64,826.0 | $41,679.1 | - Revenues from contracts with clients as a percentage of total revenues were **2.2%** for the three months ended March 31, 2025, and **2.3%** for the six months ended March 31, 2025[115](index=115&type=chunk) [Note 14 – Other Expenses](index=27&type=section&id=Note%2014%20%E2%80%93%20Other%20Expenses) Provides a detailed breakdown of other expenses, including non-income taxes, insurance, and employee-related costs Other Expenses Breakdown (in millions) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Non-income taxes | $2.5 | $2.8 | $5.3 | $5.3 | | Insurance | $2.6 | $3.2 | $6.2 | $6.1 | | Employee related expenses | $1.7 | $1.7 | $3.6 | $3.6 | | Other direct business expenses | $3.9 | $3.5 | $7.9 | $7.9 | | Membership fees | $1.0 | $1.0 | $1.9 | $1.9 | | Director and public company expenses | $0.7 | $0.7 | $1.2 | $1.2 | | Office expenses | $0.6 | $0.5 | $1.3 | $1.1 | | Other expenses | $1.8 | $1.9 | $4.1 | $5.1 | | Total other expenses | $14.8 | $15.3 | $31.5 | $32.2 | [Note 15 – Income Taxes](index=28&type=section&id=Note%2015%20%E2%80%93%20Income%20Taxes) Outlines income tax provision, effective tax rate, and factors differing from the U.S. federal statutory rate Income Tax Expense and Effective Rate (in millions) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Income tax expense | $25.4 | $19.2 | | Effective tax rate | 26% | 26% | - The effective tax rate was higher than the U.S. federal statutory rate of **21%** due to U.S. state and local taxes, GILTI, U.S. and foreign permanent differences, and foreign earnings taxed at higher rates[127](index=127&type=chunk) - The OECD's Pillar Two global corporate minimum tax rate of **fifteen percent** became effective for the company on October 1, 2024, but is not expected to have a material impact for fiscal 2025[125](index=125&type=chunk) [Note 16 – Regulatory Capital Requirements](index=28&type=section&id=Note%2016%20%E2%80%93%20Regulatory%20Capital%20Requirements) Details regulatory capital requirements for key subsidiaries and confirms their compliance as of March 31, 2025 Regulatory Capital Compliance by Subsidiary (in millions) | Subsidiary | Regulatory Authority | Actual (in millions) | Minimum Requirement (in millions) | | :--- | :--- | :--- | :--- | | StoneX Financial Inc. | SEC and CFTC | $426.5 | $252.2 | | StoneX Financial Ltd. | FCA | $563.0 | $437.2 | | Gain Capital Group, LLC | CFTC and NFA | $56.2 | $30.8 | | StoneX Financial Pte. Ltd. | MAS | $112.0 | $24.3 | | StoneX Markets LLC | CFTC and NFA | $245.4 | $134.2 | - All of the company's subsidiaries were in **compliance** with their local regulatory capital requirements as of March 31, 2025[128](index=128&type=chunk)[129](index=129&type=chunk) [Note 17 - Acquisitions](index=28&type=section&id=Note%2017%20-%20Acquisitions) Details recent and pending acquisitions, highlighting their strategic importance and financial terms - On October 1, 2024, StoneX Metals Limited acquired JBR Recovery Limited, a UK-accredited silver recycling and refining business, for **$8.0 million** cash and **$12.6 million** in silver bullion, enhancing supply chain integration[131](index=131&type=chunk)[132](index=132&type=chunk) - On January 31, 2025, the company acquired Octo Finances SA, a fixed income broker in Paris, for **$7.5 million** cash, expanding its fixed income offerings and European capabilities[133](index=133&type=chunk)[134](index=134&type=chunk) - The company announced agreements to acquire R.J. O'Brien for approximately **$900 million** (cash and stock) and The Benchmark Company, LLC for approximately **$75 million**, both expected to close in the third calendar quarter of 2025, strengthening FCM position and capital markets offerings[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk) [Note 18 – Segment Analysis](index=29&type=section&id=Note%2018%20%E2%80%93%20Segment%20Analysis) Describes operating segments, defines key performance measures, and summarizes total segment results - The company manages its business through four reportable segments: Commercial, Institutional, Self-Directed/Retail, and Payments, reflecting its global footprint and diverse client base[139](index=139&type=chunk)[142](index=142&type=chunk) - **Key performance measures** include **Operating revenues** (total revenues less cost of sales of physical commodities), **Net operating revenues** (operating revenues less transaction-based clearing expenses, introducing broker commissions, and interest expense), **Net contribution** (net operating revenues less variable compensation), and **Segment income** (net contribution less non-variable direct segment costs)[146](index=146&type=chunk)[147](index=147&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk) Total Segment Results (in millions) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $36,890.7 | $22,106.1 | $64,826.0 | $41,679.1 | | Operating revenues | $956.0 | $818.2 | $1,900.3 | $1,602.4 | | Net operating revenues (loss) | $487.3 | $422.3 | $979.4 | $843.9 | | Net contribution | $366.6 | $329.0 | $768.0 | $665.8 | | Segment income | $229.7 | $204.7 | $501.0 | $420.8 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's perspective on financial performance, condition, liquidity, capital resources, and off-balance sheet arrangements [Overview](index=32&type=section&id=Overview) General introduction to the company's global financial services network and operating segments - StoneX Group Inc. operates a global financial services network, connecting clients to the global market ecosystem through digital platforms, clearing, execution, and expertise[154](index=154&type=chunk) - The company reports three operating segments based on client nature (commercial, institutional, self-directed/retail) and a fourth segment for its payments business[155](index=155&type=chunk) - As of March 31, 2025, the company had over **4,700** employees, supporting its global infrastructure and client-first approach[154](index=154&type=chunk) [Executive Summary](index=32&type=section&id=Executive%20Summary) Highlights key financial achievements and strategic developments for the reported period - The company achieved strong growth in Q2 fiscal 2025, with a **15%** increase in **net operating revenues** and a **35%** increase in **net income**, driven by increased transaction volumes across all product offerings[157](index=157&type=chunk)[163](index=163&type=chunk) Executive Summary Key Metrics | Metric | Q2 FY2025 | Q2 FY2024 | Change | | :--- | :--- | :--- | :--- | | Net operating revenues | +15% | | | | Net income | +35% | | | | Diluted EPS | $1.41 | $1.09 | +29.4% | | Listed derivatives RPC | +2% | | | | OTC derivatives RPC | +4% | | | | Securities RPM | Increased | | | | FX/CFD RPM | Decreased | | | | Payments RPM | Decreased | | | - **Key acquisitions** announced include R.J. O'Brien for approximately **$900 million** (cash and stock) and The Benchmark Company, LLC for approximately **$75 million**, both expected to close in the second half of calendar 2025[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk) [Selected Summary Financial Information](index=34&type=section&id=Selected%20Summary%20Financial%20Information) Presents key financial metrics and performance indicators for the current and comparative periods Selected Financial Highlights (in millions) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Sales of physical commodities | $35,992.6 | $21,321.9 | 69% | | Operating revenues | $956.0 | $818.2 | 17% | | Net operating revenues | $487.3 | $422.3 | 15% | | Net income | $71.7 | $53.1 | 35% | | Return on average stockholders' equity | 15.7% | 14.0% | | | Total assets | $31,282.9 | $25,651.0 | 22% | | Stockholders' equity | $1,882.0 | $1,542.6 | 22% | - **Operating revenues** increased by **17%** for the three months ended March 31, 2025, and by **19%** for the six months ended March 31, 2025[169](index=169&type=chunk) - **Net income** increased by **35%** for the three months ended March 31, 2025, and by **28%** for the six months ended March 31, 2025[169](index=169&type=chunk) [Operating Revenues](index=35&type=section&id=Operating%20Revenues) Analyzes the company's operating revenues by product offering and their respective growth drivers Operating Revenues by Product (in millions) | Operating Revenues (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Listed derivatives | $128.4 | $111.7 | 15% | | OTC derivatives | $60.3 | $53.0 | 14% | | Securities | $426.7 | $340.7 | 25% | | FX / Contracts For Difference ("CFD") contracts | $70.9 | $80.3 | (12)% | | Payments | $49.2 | $48.4 | 2% | | Physical contracts | $72.6 | $45.9 | 58% | | Interest / fees earned on client balances | $101.7 | $104.2 | (2)% | | Other | $43.7 | $31.0 | 41% | | Corporate | $16.7 | $14.4 | 16% | | Eliminations | $(14.2) | $(11.4) | 25% | | Total Operating Revenues | $956.0 | $818.2 | 17% | Volumes and Other Select Data | Volumes and Other Select Data | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Listed derivatives (contracts, 000's) | 61,153 | 53,805 | 14% | | Listed derivatives, average rate per contract | $2.02 | $1.98 | 2% | | Securities average daily volume ("ADV") (millions) | $8,915 | $7,473 | 19% | | Securities rate per million ("RPM") | $279 | $239 | 17% | | FX/CFD contracts ADV (millions) | $11,539 | $10,453 | 10% | | FX/CFD contracts RPM | $97 | $120 | (19)% | | Payments ADV (millions) | $77 | $64 | 20% | | Payments RPM | $10,526 | $12,327 | (15)% | - **Operating revenues** increased by **$137.8 million**, or **17%**, to **$956.0 million** for the three months ended March 31, 2025, with significant growth in securities (**+25%**) and physical contracts (**+58%**)[174](index=174&type=chunk)[176](index=176&type=chunk)[178](index=178&type=chunk) [Interest and Transactional Expenses](index=37&type=section&id=Interest%20and%20Transactional%20Expenses) Details the company's interest and transaction-based clearing expenses, analyzing their components and changes Interest and Transactional Expenses Breakdown (in millions) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Transaction-based clearing expenses | $91.8 | $78.5 | 17% | | Introducing broker commissions | $45.5 | $42.0 | 8% | | Interest expense (Trading activities) | $316.6 | $259.2 | 22% | | Interest expense (Corporate funding) | $14.8 | $16.2 | (9)% | | Total interest expense | $331.4 | $275.4 | 20% | - **Transaction-based clearing expenses** increased by **17%** for the three months ended March 31, 2025, driven by higher activity in Equity and Debt Capital Markets, Exchange-Traded Futures & Options, and Financial Ag and Energy businesses[186](index=186&type=chunk) - **Interest expense** attributable to trading activities increased by **22%** for the three months ended March 31, 2025, primarily due to growth in security repo and securities lending businesses and increased physical precious metals and commodities activities[188](index=188&type=chunk) [Net Operating Revenues](index=38&type=section&id=Net%20Operating%20Revenues) Analyzes net operating revenues by product, reflecting performance after direct transaction costs Net Operating Revenues by Product (in millions) | Net Operating Revenues (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Listed derivatives | $60.3 | $48.2 | 25% | | OTC derivatives | $60.2 | $53.0 | 14% | | Securities | $120.8 | $88.6 | 36% | | FX/CFD contracts | $62.5 | $71.8 | (13)% | | Payments | $46.5 | $45.9 | 1% | | Physical contracts | $48.6 | $36.8 | 32% | | Interest, net / fees earned on client balances | $74.5 | $74.0 | 1% | | Other | $22.5 | $16.8 | 34% | | Corporate | $(8.6) | $(12.8) | (33)% | | Total Net Operating Revenues | $487.3 | $422.3 | 15% | - **Net operating revenues** increased by **15%** to **$487.3 million** for the three months ended March 31, 2025, with strong growth in securities (**+36%**) and physical contracts (**+32%**)[193](index=193&type=chunk) [Compensation and Other Expenses](index=39&type=section&id=Compensation%20and%20Other%20Expenses) Breakdown of compensation, benefits, and other operating expenses, detailing their changes Compensation and Other Expenses Breakdown (in millions) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Variable compensation and benefits | $146.7 | $123.7 | 19% | | Fixed compensation and benefits | $120.4 | $110.7 | 9% | | Total compensation and benefits | $267.1 | $234.4 | 14% | | Trading systems and market information | $19.5 | $19.4 | 1% | | Professional fees | $16.5 | $19.3 | (15)% | | Non-trading technology and support | $20.9 | $18.0 | 16% | | Occupancy and equipment rental | $13.1 | $13.6 | (4)% | | Selling and marketing | $13.4 | $15.6 | (14)% | | Depreciation and amortization | $15.6 | $12.3 | 27% | | Bad debts, net of recoveries | $0.1 | $(0.4) | n/m | | Total compensation and other expenses | $390.2 | $356.9 | 9% | - **Total compensation and other expenses** increased by **9%** to **$390.2 million** for the three months ended March 31, 2025, primarily due to higher variable and fixed compensation and benefits[195](index=195&type=chunk) - **Fixed compensation and benefits** increased by **9%**, driven by higher non-variable salaries due to increased headcount and annual merit increases, and a **14%** increase in share-based compensation[196](index=196&type=chunk)[197](index=197&type=chunk) - **Depreciation and amortization** increased by **27%** due to incremental depreciation from internally developed software, partially offset by lower amortization as some intangibles became fully amortized[199](index=199&type=chunk) [Variable vs. Fixed Expenses](index=41&type=section&id=Variable%20vs.%20Fixed%20Expenses) Analyzes the proportion of variable versus fixed expenses within the company's cost structure Variable vs. Fixed Expenses Summary (in millions) | (in millions) | Three Months Ended March 31, 2025 | % of Total | Three Months Ended March 31, 2024 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Total variable expenses | $284.0 | 54% | $244.2 | 51% | | Total non-variable expenses | $243.5 | 46% | $233.2 | 49% | | Total non-interest expenses | $527.5 | 100% | $477.4 | 100% | - **Variable expenses** constituted **54%** of total non-interest expenses for the three months ended March 31, 2025, up from **51%** in the prior year, reflecting the company's variable cost model[214](index=214&type=chunk) [Segment Information](index=42&type=section&id=Segment%20Information) Detailed analysis of the financial performance of each operating segment [Commercial Segment](index=43&type=section&id=Commercial%20Segment) Commercial segment operating revenues increased by **24%**, driven by strong performance in derivatives and physical contracts Commercial Segment Operating Revenues (in millions) | Operating Revenues (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Listed derivatives | $75.5 | $59.1 | 28% | | OTC derivatives | $60.3 | $53.0 | 14% | | Physical contracts | $71.4 | $43.9 | 63% | | Interest / fees earned on client balances | $34.7 | $38.1 | (9)% | | Total Operating Revenues | $248.6 | $200.5 | 24% | - **Listed derivatives operating revenues** increased by **$16.4 million**, driven by **19%** higher contract volumes and a **7%** increase in average rate per contract, particularly in agricultural, energy, and base metals markets[228](index=228&type=chunk) - **Physical contracts operating revenues** increased by **$27.5 million**, with precious metals and physical agricultural and energy operating revenues rising due to increased client activity and market volatility[230](index=230&type=chunk) [Institutional Segment](index=46&type=section&id=Institutional%20Segment) Institutional segment operating revenues increased by **21%**, primarily due to significant growth in securities transactions Institutional Segment Operating Revenues (in millions) | Operating Revenues (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Listed derivatives | $52.9 | $52.6 | 1% | | Securities | $398.8 | $314.9 | 27% | | FX contracts | $7.9 | $7.6 | 4% | | Interest / fees earned on client balances | $66.4 | $65.4 | 2% | | Total Operating Revenues | $561.2 | $463.4 | 21% | Institutional Segment Volumes and Data | Volumes and Other Select Data | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Securities ADV (millions) | $8,915 | $7,473 | 19% | | Securities RPM | $279 | $239 | 17% | | Average client equity - listed derivatives (millions) | $4,902 | $4,380 | 12% | | Average money market / FDIC sweep client balances (millions) | $1,283 | $1,047 | 23% | - **Securities operating revenues** increased by **$83.9 million**, driven by **19%** higher ADV and a **17%** increase in securities RPM, attributed to increased client activity and widening spreads in equity markets post-U.S. election volatility[245](index=245&type=chunk) [Self-Directed/Retail Segment](index=49&type=section&id=Self-Directed%2FRetail%20Segment) Self-Directed/Retail segment operating revenues decreased by **8%**, primarily due to a decline in FX/CFD contracts RPM Self-Directed/Retail Segment Operating Revenues (in millions) | Operating Revenues (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Securities | $27.9 | $25.8 | 8% | | FX/CFD contracts | $63.0 | $72.7 | (13)% | | Physical contracts | $1.2 | $2.0 | (40)% | | Interest / fees earned on client balances | $0.6 | $0.7 | (14)% | | Total Operating Revenues | $93.4 | $102.0 | (8)% | Self-Directed/Retail Segment Volumes and Data | Volumes and Other Select Data | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | FX/CFD contracts ADV (millions) | $8,591 | $6,388 | 34% | | FX/CFD contracts RPM | $116 | $177 | (34)% | - **FX/CFD contracts operating revenues** declined by **$9.7 million**, primarily due to a **34%** decrease in RPM, which more than offset a **34%** increase in ADV[263](index=263&type=chunk) [Payments Segment](index=51&type=section&id=Payments%20Segment) Payments segment operating revenues increased by **2%**, driven by higher ADV, partially offset by a decline in RPM Payments Segment Operating Revenues (in millions) | Operating Revenues (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Payments | $49.2 | $48.4 | 2% | | Other | $1.1 | $0.9 | 22% | | Total Operating Revenues | $50.3 | $49.3 | 2% | Payments Segment Volumes and Data | Volumes and Other Select Data | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Payments ADV (millions) | $77 | $64 | 20% | | Payments RPM | $10,526 | $12,327 | (15)% | - The increase in **operating revenues** was principally due to a **20%** increase in Payments ADV, which was partially offset by a **15%** decline in Payments RPM[276](index=276&type=chunk) [Overhead Costs and Expenses](index=53&type=section&id=Overhead%20Costs%20and%20Expenses) Analyzes the company's overhead costs and expenses, including their allocation to operating segments Overhead Costs and Expenses Summary (in millions) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Overhead costs and expenses | $124.0 | $119.6 | 4% | | Allocation of overhead costs | $(43.4) | $(39.4) | 10% | | Overhead costs and expense, net of allocation to operating segments | $80.6 | $80.2 | 0% | - **Overhead costs and expenses** increased by **4%** for the three months ended March 31, 2025, primarily due to increased non-variable compensation related to IT personnel reorganization and hiring in support departments[283](index=283&type=chunk)[284](index=284&type=chunk) - **Non-trading technology and support costs** increased by **$2.5 million** due to higher software maintenance and support costs, driven by increased headcount[285](index=285&type=chunk) [Liquidity, Financial Condition and Capital Resources](index=54&type=section&id=Liquidity%2C%20Financial%20Condition%20and%20Capital%20Resources) Discusses the company's liquidity, overall financial condition, and available capital resources - As of March 31, 2025, the company had **total equity** of **$1,882.0 million**, **outstanding loans** of **$340.9 million**, and **$543.6 million** in **senior secured notes**[300](index=300&type=chunk) - Approximately **97%** of the company's assets were **liquid** as of March 31, 2025, consisting of cash, securities purchased under agreements to resell, securities borrowed, and other financial instruments[301](index=301&type=chunk) - **Net cash used in operating activities** was **$632.3 million** for the six months ended March 31, 2025, while investing activities used **$42.7 million** and financing activities used **$18.3 million**[323](index=323&type=chunk) [Off-Balance Sheet Arrangements](index=58&type=section&id=Off-Balance%20Sheet%20Arrangements) Describes the company's off-balance sheet arrangements and associated risks - The company is party to financial instruments with off-balance sheet risk, including futures, forward, foreign exchange contracts, and options, primarily for client order execution and risk mitigation[331](index=331&type=chunk) - The company manages credit risk by requiring margin deposits, monitoring collateral levels daily, and establishing contract limits for clients[332](index=332&type=chunk) - **Short positions**, totaling **$3,806.1 million** as of March 31, 2025, are held to offset risks related to financial assets owned and physical commodities inventory[337](index=337&type=chunk) [Effects of Inflation](index=59&type=section&id=Effects%20of%20Inflation) Discusses potential impact of inflation on expenses, revenues, and financial position - Inflation may increase expenses such as compensation, clearing, and occupancy, which may not be readily recoverable through price increases[340](index=340&type=chunk) - While higher interest rates are generally favorable, inflation-driven rate changes could adversely affect financial markets and the value of inventory, impacting financial position and results[340](index=340&type=chunk) [Critical Accounting Policies](index=59&type=section&id=Critical%20Accounting%20Policies) Addresses the company's critical accounting policies and any material changes - There have been no **material changes** to the company's critical accounting policies as discussed in the most recent Annual Report on Form 10-K[341](index=341&type=chunk) [Other Accounting Policies](index=59&type=section&id=Other%20Accounting%20Policies) Addresses other significant accounting policies and any material changes - There have been no **material changes** to the company's significant accounting policies as included in Note 1 to the Consolidated Financial Statements in the most recent Annual Report on Form 10-K[342](index=342&type=chunk) [Accounting Development Updates](index=59&type=section&id=Accounting%20Development%20Updates) Provides updates on new accounting pronouncements and their potential impact on the company - ASU No. 2024-03 (Disaggregation of Income Statement Expenses) is effective for the fiscal year ending September 30, 2027, requiring enhanced expense disclosures[343](index=343&type=chunk)[344](index=344&type=chunk) - ASU No. 2023-09 (Improvements to Income Tax Disclosures) is effective for the fiscal year ending September 30, 2026, requiring additional income tax rate reconciliation and disaggregation of taxes paid[345](index=345&type=chunk) - ASU No. 2023-07 (Improvements to Reportable Segment Disclosures) is effective for the fiscal year ending September 30, 2025, requiring disclosure of significant segment expenses and CODM information[346](index=346&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Discloses the company's exposure to market risks, including credit, market, interest rate, and foreign currency risks [Credit Risk](index=60&type=section&id=Credit%20Risk) Addresses the company's exposure to credit risk from clients and counterparties - Information regarding credit risk is cross-referenced to Note 4 of the condensed consolidated financial statements[347](index=347&type=chunk) [Market Risk](index=60&type=section&id=Market%20Risk) Discusses the company's exposure to market risk from price movements, volatility, and liquidity changes - The company's market-making and trading activities expose its capital to significant risks from price movements, volatility, and liquidity changes[348](index=348&type=chunk) - Market risk is mitigated through diversification, position limits, capital allocation based on estimated risks, and daily monitoring of positions and mark-to-market profitability[351](index=351&type=chunk) - The company does not initiate market positions for its own account in anticipation of future price movements, focusing on managing net exposure from client-driven transactions[350](index=350&type=chunk) [Interest Rate Risk](index=61&type=section&id=Interest%20Rate%20Risk) Details the company's exposure to interest rate fluctuations and their potential impact on earnings - The company is exposed to interest rate risk from changes in financial instrument values and interest income earned, particularly from fixed income securities trading and client deposits[356](index=356&type=chunk) - An immediate **25 basis point** decrease in short-term interest rates is estimated to result in approximately **$7.1 million** less in **annual net income** as of March 31, 2025[358](index=358&type=chunk) - As of March 31, 2025, **$340.9 million** of outstanding principal debt was **variable-rate**, and **$550.0 million** was **fixed-rate** long-term debt[359](index=359&type=chunk) [Foreign Currency Risk](index=62&type=section&id=Foreign%20Currency%20Risk) Addresses the company's exposure to foreign currency exchange rate fluctuations and hedging strategies - Currency risk arises from fluctuations in foreign exchange rates impacting earnings and assets, as entities hold assets and liabilities in various currencies[360](index=360&type=chunk) - The company uses foreign currency derivatives, such as forward contracts, to hedge against volatility in certain foreign currency exchange rates[360](index=360&type=chunk) [Item 4. Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The CEO and CFO concluded that **disclosure controls and procedures** were **effective** as of March 31, 2025, providing reasonable assurance that objectives were met[361](index=361&type=chunk)[362](index=362&type=chunk) - There were no **material changes** in internal controls over financial reporting during the quarter ended March 31, 2025[363](index=363&type=chunk) [PART II. OTHER INFORMATION](index=62&type=section&id=Part%20II.%20OTHER%20INFORMATION) Additional information on legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 11 for information regarding the company's legal proceedings - For information on legal proceedings, refer to Note 11, 'Commitments and Contingencies' in the notes to the Condensed Consolidated Financial Statements[364](index=364&type=chunk) [Item 1A. Risk Factors](index=62&type=page&id=Item%201A.%20Risk%20Factors) Directs readers to the Annual Report on Form 10-K for a comprehensive discussion of risk factors - Information regarding risks affecting the company is detailed in Part I, Item 1A of the Annual Report on Form 10-K for the fiscal year ended September 30, 2024[365](index=365&type=chunk) - Additional risks and uncertainties not currently known or considered non-material may adversely affect the business in the future[365](index=365&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=63&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details common stock repurchase program and activity for the three months ended March 31, 2025 - The **Board of Directors authorized** the repurchase of up to **2.3 million** shares of common stock from October 1, 2024, to September 30, 2025[366](index=366&type=chunk) Common Stock Repurchase Activity | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 1, 2025 to January 31, 2025 | 950 | $73.29 | | February 1, 2025 to February 28, 2025 | 2,888 | $79.02 | | March 1, 2025 to March 31, 2025 | 44 | $80.15 | | Total | 3,882 | $77.63 | - As of March 31, 2025, **2,250,000** shares **remained to be purchased** under the program[367](index=367&type=chunk) [Item 5. Other Information](index=63&type=section&id=Item%205.%20Other%20Information) Confirms no directors or officers adopted or terminated Rule 10b5-1 trading arrangements - **No directors or officers adopted or terminated** Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended March 31, 2025[368](index=368&type=chunk) [Item 6. Exhibits](index=64&type=section&id=Item%206.%20Exhibits) Provides a list of exhibits filed as part of the Form 10-Q, including key agreements and certifications - **Key exhibits** include the Agreement and Plan of Merger for R.J. O'Brien, various employment agreements, the 2022 Omnibus Incentive Compensation Plan, and certifications from the CEO and CFO[369](index=369&type=chunk) [Signatures](index=65&type=section&id=Signatures) Contains the official signatures of the company's principal executive and financial officers - The report is signed by Philip A. Smith, Chief Executive Officer, and William J. Dunaway, Chief Financial Officer, on May 7, 2025[372](index=372&type=chunk)