StoneX Group NASDAQ: SNEX opened fiscal 2026 with what management called a “very strong start,” reporting record net operating revenues, net income, and earnings per share for the quarter ended December 31, 2025. On the company’s first-quarter earnings call, executives pointed to broad-based activity across its platform—led by listed derivatives volumes following the R.J. O’Brien acquisition and an “exceptional” quarter in precious metals—as key drivers of the results.
Record quarterly results and profitability
Chief Financial Officer Bill Dunaway said StoneX posted record net income of $139 million and diluted EPS of $2.50. Net income rose 63% year over year, while EPS increased 48%, reflecting a higher share count following the issuance of about 3.1 million shares for the R.J. O’Brien acquisition completed in the prior quarter. Compared with the immediately preceding fourth quarter of fiscal 2025, net income and diluted EPS rose 62% and 59%, respectively.
Dunaway said the quarter produced a 22.5% return on equity despite what he described as a 70% increase in book value over the last two years. StoneX ended the quarter with book value per share of $48.17.
Operating revenues totaled just over $1.4 billion, up 52% from the year-ago quarter and 20% sequentially. Dunaway noted that StoneX’s operating revenue definition includes interest and fee income on client balances as well as carried interest tied to fixed income trading activities. Net operating revenues (which net off interest expense and certain commissions and clearing fees) increased 47% from a year ago and 24% from the prior quarter.
Business mix: strength in listed derivatives and physical metals, softer FX CFDs
Management said growth was broad across products, with notable exceptions in FX CFDs and payments. Dunaway said transactional volumes increased across all product offerings except FX CFDs, while spread and rate capture improved in all products except payments and FX CFDs.
- Listed derivatives: Operating revenues from listed contracts increased $157.3 million, or 141%, year over year, primarily due to the R.J. O’Brien acquisition, which contributed $130.7 million. Dunaway also cited increased activity in base metals and LME markets. Listed derivatives operating revenues rose 30% sequentially.
- OTC derivatives: Operating revenues climbed 72% year over year, driven by increased client activity in Brazilian and European markets, and rose 8% sequentially.
- Physical contracts: Operating revenues increased 69% year over year and 138% sequentially. Dunaway attributed the jump primarily to an $83.9 million increase in precious metals revenues, partially offset by a $19.8 million decline in physical agricultural and energy revenues.
- Securities: Operating revenues increased 43% as volumes rose 22% and rate per million improved 35%, which management said reflected strength across equities and fixed income.
- Payments: Revenues fell 4% from the year-ago quarter but rose 7% sequentially, which Dunaway tied primarily to higher average daily volume.
- FX CFDs: Revenues fell 30% year over year due to a modest decline in average daily volume and a 30% drop in rate per million, which Dunaway said was driven by lower spread retention in the self-directed business, particularly in non-FX markets. FX CFD revenues increased 24% sequentially.
Interest and fee income on aggregate client float increased $66.1 million, or 61%, year over year, with R.J. O’Brien contributing $63.8 million. Average client equity and average money market FDIC sweep balances increased 100% and 5%, respectively; Dunaway said R.J. O’Brien added $5.8 billion in average client equity in the quarter.
Precious metals performance and the broader “ecosystem”
Chief Executive Officer Philip Smith highlighted the company’s record commercial performance, driven by precious metals. Smith said StoneX’s precious metals business generated $75 million in segment income in the quarter—$24 million more than it produced in all of fiscal 2025.
Smith described StoneX’s precious metals operation as an “ecosystem” spanning OTC liquidity provision, futures access, wholesale and retail bullion distribution (including the StoneX Bullion direct-to-consumer platform), logistics for moving physical metal across jurisdictions, and custody and refining capabilities. He added that StoneX’s CME-accredited vault now holds in excess of $1.2 billion of metal in custody after only a couple quarters of operation.
Asked whether the quarter’s strength in precious metals reflected cross-selling from R.J. O’Brien clients, Smith said the benefit from R.J. O’Brien’s traditional client base was limited and that the quarter was “primarily driven” by heightened wholesale and retail interest. He pointed to the growth of StoneX Bullion, saying the business had exceeded expectations since its acquisition (originally Coininvest) and that it recently generated roughly what it used to earn annually in a single day.
Smith also said StoneX’s ability to move physical metal globally allows it to capitalize on jurisdictional price disconnects. He cited an example of a shortage of silver in India and StoneX’s experience as a major importer in that market.
R.J. O’Brien integration, synergies, and expense trends
StoneX said the acquisitions of R.J. O’Brien and Benchmark contributed $28.5 million and $4.6 million in pre-tax net income (excluding acquired intangible amortization), respectively, for the quarter.
On costs, Dunaway said total fixed compensation and other expenses rose $75.6 million, or 31%, year over year, with $44.4 million attributable to the R.J. O’Brien and Benchmark acquisitions. Professional fees increased $13.8 million from a year ago, which Dunaway attributed primarily to higher legal fees, including costs related to the BTIG matter and the commencement of arbitration during the quarter.
Smith said integration of R.J. O’Brien remains on track. He noted StoneX migrated the largest subset of R.J. O’Brien’s non-U.S. entities—its U.K. entity—into StoneX’s U.K. entity in early January and expects other non-U.S. consolidations to be completed in the second quarter of fiscal 2026. Smith said the U.K. consolidation released $20 million in capital. He added that consolidation of the U.S. entities remains targeted for completion by the end of the fiscal year and that StoneX has prioritized client continuity and revenue protection.
On synergy expectations, management said it is still “affirming” the previously communicated $50 million figure, with milestones expected later in fiscal 2026 and additional capture extending into fiscal 2027.
Hedging franchise, interest-rate hedges, and stock split
Smith also used the call to spotlight StoneX’s “global hedging” business within the commercial segment, describing it as core to the firm’s history and accounting for approximately 60% of commercial segment income over the last 12 months. He said StoneX offers access to more than 40 derivative exchanges worldwide, plus customized OTC and structured products, supported by market intelligence, technology platforms, and a global network of risk management consultants.
In addition, Dunaway said StoneX entered into $1.2 billion in fixed-rate SOFR swaps during the quarter to hedge interest rate exposure. The swaps have a two-year duration and an average rate of 3.32%. StoneX now estimates a 100-basis-point move in short-term rates would change annualized net income by $43.2 million, or $0.80 per share.
Finally, Dunaway announced that StoneX’s board approved a 3-for-2 stock split in the form of a stock dividend. Shares are expected to be distributed after the close on March 20, 2026 to shareholders of record on March 10, 2026, with trading expected to begin on a split-adjusted basis at the market open on March 23, 2026.
About StoneX Group NASDAQ: SNEX
StoneX Group Inc NASDAQ: SNEX is a global financial services firm offering execution, risk management, advisory and post-trade solutions across commodities, currencies, securities and digital assets. The company serves commercial businesses, institutional clients and financial intermediaries, providing market access and tailored services designed to help clients manage price risk, optimize working capital and execute complex transactions.
StoneX operates through several core segments.
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