StoneX Group Inc. (SNEX)

StoneX Group Inc. reported net operating revenues of $719.7 million for its fiscal third quarter ended 30 June 2026, up 47 percent, and net income of $127.9 million 1. Net operating revenues are what remains of revenue after the cost of physical commodities sold, interest expense and clearing and broker costs 1. Diluted earnings per share were $1.00 1.

Chief executive Philip Smith credited double-digit growth in the Commercial, Institutional and Payments segments and the integration of the R.J. O'Brien acquisition, which he said makes StoneX the largest non-bank futures broker 1. The 10-Q says the acquired R.J. O'Brien and Benchmark businesses added $78.8 million and $29.5 million of net operating revenue in the quarter 2.

The weak spot was the retail business, where trading in currencies and contracts for difference (bets on price moves without owning the asset) is sold directly to individuals 3. Its operating revenue fell 13 percent to $96.3 million 1.

Two corporate actions followed the quarter: a three-for-two stock split completed on 17 July 2026 25, and a board authorization on 26 August 2026 for repurchases of up to 5.0 million shares in fiscal 2027 4.

A Department of Justice subpoena linked to an earlier trade-secrets dispute with BTIG remains open, and the company says it continues to cooperate 2.

The StoneX name carries forward a foundation laid by Saul Stone in 1924 7. StoneX Group Inc. was formerly INTL FCStone Inc., and the new name took effect on 6 July 2020 with the Nasdaq symbol SNEX 7.

On 31 July 2020 the company bought GAIN Capital Holdings, a provider of spot currency, precious metals and contracts for difference trading to institutional and retail clients 7. It paid for the deal with $350 million of senior secured notes due 2025 7.

That year the company set records of $1,308.3 million in operating revenues and $169.6 million in net income 7. The company said net income was significantly helped by a gain on the Gain acquisition, so the jump overstated the underlying trend 7.

Fiscal 2022 brought inflation, sharp rises in short-term interest rates and volatile commodity markets after Russia invaded Ukraine 8. Operating revenues rose 26 percent to $2,107.4 million from $1,673.1 million 8. Interest and fee income on client balances rose to $89.3 million, up $63.3 million, because balances and rates both grew 8.

Operating revenues were $2,914.1 million in fiscal 2023 and $3,436.2 million in fiscal 2024, up 18 percent, and net income rose from $238.5 million to $260.8 million 3. Securities, the trading and market-making of stocks and bonds, led the gain, with operating revenues up 36 percent to $1,442.7 million in fiscal 2024 3.

In fiscal 2025 operating revenues rose 20 percent to $4,126.9 million and net income rose 17 percent to $305.9 million, even with calmer commodity markets and falling short-term interest rates 3. Diluted earnings per share were $5.89, against $5.31 a year earlier, before later stock splits 3.

On 31 July 2025 the company closed two purchases 3. It bought RTS Investor Corp., parent of the R.J. O'Brien global business, which includes the oldest futures brokerage in the U.S., for about $651.9 million in cash and 3,085,554 shares 3. It also assumed about $125.7 million of R.J. O'Brien debt 3.

The cash was raised on 8 July 2025 through $625.0 million of senior secured notes due 2032 that pay 6.875 percent interest 3. The second purchase, The Benchmark Company, an investment bank with equity research, cost about $57.1 million in cash plus contingent payments 3.

For the nine months to 30 June 2026, operating revenues were $4,473.0 million against $2,924.6 million a year before, up 53 percent, and net income was $441.2 million against $220.2 million 1. The company split its shares three-for-two twice in 2026, in March and July 1.

What the company does

StoneX runs a global network that connects companies, traders and investors to markets, from advice and execution to clearing, custody and settlement 3. It serves more than 80,000 commercial, institutional and payments clients and over 400,000 self-directed accounts in more than 180 countries 3. It had more than 5,400 employees on 30 September 2025 3.

Most of the reported total comes from reselling physical commodities, and sales of physical commodities were $128,462.6 million of $132,378.2 million total revenues in fiscal 2025, while the matching cost was $128,251.3 million 3. That is why the company steers by operating revenues, which subtract that cost 3.

Commercial

The Commercial segment helps farms, energy firms, metals users and other businesses manage price risk, through futures, tailored OTC contracts, physical trading and logistics 3. In the June 2026 quarter its operating revenue was $452.2 million, up 97 percent, and segment income was $181.4 million 1.

Physical contracts operating revenue rose 106 percent to $115.4 million, and listed derivatives rose 110 percent to $152.5 million, helped by R.J. O'Brien 1. In precious metals the company acts as a principal and commits its own capital to buy and sell 3. Rivals include independent futures brokers, global banks and swap dealers 3.

Institutional

Institutional is the largest segment, with $875.3 million of operating revenue in the June 2026 quarter, up 40 percent, and $129.9 million of segment income 1. It covers equity trading, bond dealing, clearing, prime brokerage and investment banking 3.

StoneX makes markets in more than 16,000 equities, including over 7,000 ADRs, GDRs and foreign securities, which are shares of overseas companies sold in the US 3. Securities operating revenue was $604.2 million in the quarter, up 24 percent 1.

It runs two of the largest non-bank futures commission merchants in the U.S., with $7.4 billion and $6.3 billion of required client assets on 30 September 2025 3. Its U.K. unit is one of only eight Category One ring dealing members of the London Metal Exchange 3.

Self-Directed/Retail

This segment sells currency and contracts for difference trading to individuals through FOREX.com and Cityindex.com, and offers wealth management in the United States and Latin America 3. Operating revenue fell 13 percent to $96.3 million in the June 2026 quarter, and segment income fell 36 percent to $24.9 million 1.

Competitors include regulated forex firms and global multi-asset trading firms, and in wealth management large banks, online brokers and regional advisers 3. Volume in this business fell, with currency and contracts for difference average daily volume down 12 percent in the quarter 1.

Payments

Payments moves money across borders for banks, businesses, charities and governments, mostly by buying and selling currencies, in more than 140 currencies through about 375 correspondent banks 3. Operating revenue was $60.3 million in the June 2026 quarter, up 13 percent 1.

Offices and people

The headquarters are at 230 Park Avenue in New York, with significant operations in London, Chicago, Birmingham and Kansas City 3. All principal properties are leased except part of the space in Buenos Aires 3.

Philip Smith is chief executive and William Dunaway is chief financial officer 14. Shareholders elected ten directors at the annual meeting on 10 March 2026 11.

Legal matters

BTIG, a rival firm, sued in November 2023 over alleged trade-secret theft by former BTIG employees who joined StoneX 2. A FINRA arbitration panel awarded StoneX $1.0 million and BTIG $2.9 million, a net payment of $1.9 million that StoneX paid in March 2026 26.

The dispute was fully resolved on 4 May 2026 2. The SEC concluded its investigation without recommending enforcement action, while the Department of Justice subpoena remains open and its outcome cannot yet be determined 2.

The umbrella, in words

The main brands are StoneX, FOREX.com, Cityindex.com and StoneXBullion.com 3. The company sells through its own sites and also through introducing brokers and white label partners, who offer its services under their own brand 3.

Exhibit 21 lists the operating subsidiaries, among them R.J. O'Brien & Associates, LLC, GAIN Capital Group, LLC, StoneX Financial Inc., StoneX Securities Inc. and The Benchmark Company, LLC 10. The list runs across many countries, and no single sentence says which are listed 10.

The proxy statement names two large outside holders of the common stock: BlackRock, Inc. with 12.54 percent and The Vanguard Group, Inc. with 7.68 percent, each from a Schedule 13G 9. Director Sean O'Connor reports 6.27 percent as a person, which includes shares held by a family trust, and all directors and executive officers as a group report 11.79 percent 9.

The board authorized repurchases of up to 5.0 million shares from 1 October 2026 to 30 September 2027, at the discretion of senior management and subject to market conditions 4. The earlier authorization, covering up to 5.062 million split-adjusted shares, expires on 30 September 2026 4.

The company says it has never declared a cash dividend on its common stock and has no current plans to, and that its credit agreements currently prohibit one 3.

On growth, the company says it selectively pursues small- to medium-sized acquisitions and intends to target new geographic locations and expand services where it operates 3. It describes consolidation of sub-scale financial services providers and independent clearing firms as a trend it is positioned for 3.

Chief executive Philip Smith said on 5 August 2026 that the company is beginning to realize the benefits of the R.J. O'Brien integration and expects its ecosystem to keep positioning it for growth 1.

The $625.0 million of senior secured notes due 2032 mature on 15 July 2032 and pay interest each January and July 3. Directors elected on 10 March 2026 serve terms expiring at the 2027 annual meeting 11.

The company says the effects of geopolitical conflict and new or changed tariffs on its results are difficult to predict and could harm them 2. It also says the outcome of the Department of Justice subpoena cannot presently be determined 2.

The company says its strategy uses a centralized, disciplined process for capital allocation, risk management and cost control, with day-to-day management delegated, to build a more scalable and significantly larger organization 3. It also says it works to keep non-interest expenses variable, to the greatest extent possible 3.

In the June 2026 quarter variable expenses were 60 percent of total non-interest expenses, up from 53 percent a year before, as pay tied to results and broker commissions grew 12.

The company says the Department of Justice matter is the one open legal item it describes, and that its accruals for loss contingencies are not material 2.

Past

StoneX Group Inc.'s revenue grew from $15 billion in fiscal 2016 to $132 billion in fiscal 2025, up 27.6% a year, rising in 6 of 9 years with a deepest fall of 21% from fiscal 2020 to fiscal 2021. Net income was positive in 8 of 8 of those years. Over the 3 fiscal years to 2025-09-30, the diluted share count grew about 3.5% a year, and dividends and buybacks returned about 0% of operating cash flow. Officers and directors filed 50 sales (40 under scheduled 10b5-1 plans) and 2 purchases of their own stock on the open market in the year to 2026-10-15, buying about $258 thousand. The filings since 2017 show no warning events: no bankruptcy or receivership notice, no debt default notice, no exchange listing notice, no restatement warning, no auditor change, no material cyber incident and no late-report notice. 1

Present

In its latest annual figures on file, for the fiscal year ended 2025-09-30, StoneX Group Inc. reported revenue of $132 billion and a profit of $306 million. Return on equity is about 13 cents of profit for every dollar of shareholders' money; gross profitability is about 9 cents per dollar of everything the company owns; leverage is about 95 cents per dollar of assets, and net share issuance shows the share count grew 5.7% over the year. StoneX's revenue of $132 billion in fiscal 2025 ranks in the top 4% by size among its 13-member industry family; a net margin of 0.2% ranks in the bottom 42%; revenue growth of 26.1% a year over the last 3 filed years ranks in the top 19%. The chief executive is Smith, Philip Andrew, filing under that title since 2024-12-17, 1.8 years; the 15 officers and directors filing in the last fifteen months have been on the record a median of 13.6 years; 5 officer or director changes were reported on Form 8-K since 2023-10-21, against the 15 people in charge now. 21

Future

The annual report (Form 10-K) for the fiscal year ending 2026-09-30 is due by 2026-11-29. The quarterly report (Form 10-Q) for the quarter ending 2026-12-31 is due by 2027-02-09. Cash of $1.6 billion against debt of $1.9 billion leaves -0.7% of its assets as net cash, bottom 35% of its family; cash from operations less capital spending is 3.3% of revenue (bottom 42%); a gross margin of 3.1% (bottom 38%). Revenue grew 26.1% a year over the last three filed years against 27.6% over all 10, slowing; the newest year grew 32.6%; capital spending grew 9.7% a year (bottom 27%). 31

How the company operates

StoneX Group Inc. is classed by the SEC under Security & Commodity Brokers, Dealers, Exchanges & Services (industry code 6200). In fiscal 2025, sales of physical commodities account for 97% of revenue; interest income net 1%; principal gains net 1%; commission and clearing fees 1%; consulting management and account fees under 1%. By geography, Middle East and Asia account for 91% of revenue; United States 6%; Europe 2%; South America under 1%; other under 1%. The company reported 5 product lines in fiscal 2025: Sales of Physical Commodities at $128 billion (97%), Interest Income Net at $1.7 billion (1%), Principal Gains Net at $1.2 billion (1%), and 2 more; 5 of 5 grew against the year before. 21

New moves

On 2026-08-28, the company filed Form 8-K item 7.01, investor disclosure under Regulation FD, for the period ended 2026-08-26. On 2026-05-26, the company filed Form 8-K item 8.01, another event the company chose to report, for the period ended 2026-05-22. On 2026-03-13, the company filed Form 8-K item 8.01, another event the company chose to report, for the period ended 2026-03-12. On 2026-03-12, the company filed Form 8-K item 5.07 (shareholder vote) and item 7.01 (investor disclosure under Regulation FD), for the period ended 2026-03-10. On 2025-08-29, the company filed Form 8-K item 8.01, another event the company chose to report. 3