SNEX

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 9:00 a.m. ET Chief Executive Officer - Philip Smith CFO - Bill Dunaway Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good day, and thank you for standing by. Welcome to the StoneX Group, Inc. Q3 FY '26 Earnings Conference Call. Please be advised today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Bill Dunaway, CFO. Please go ahead, Bill. William Dunaway: Good morning, and welcome to our earnings conference call for our quarter ended June 30, 2026, our third quarter of fiscal 2026. After the market closed yesterday, we issued a press release reporting our results for the quarter, and this press release is available on our website at www.stonex.com as well as a slide presentation, which we will refer to during this call. The presentation and an archive of the webcast will also be available on our website after the call's conclusion. Before getting underway, we are required to advise you and all participants should note that the following discussion should be considered in conjunction with the most recent financial statements and notes thereto as well as the Form 10-Q filed with the SEC. This discussion may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These forward-looking statements involve known and unknown risks and uncertainties, which are detailed in our filings with the SEC. Although the company believes that its forward-looking statements are based upon reasonable assumptions regarding its business and future market conditions, there can be no assurances that the company's actual results will not differ materially from any results expressed or implied by the company's forward-looking statements. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned that any forward-looking statements are not guarantees of future performance. With that, I'll now turn the call over to Philip Smith, the company's Chief Executive Officer, for a brief introduction. Philip Smith: Thank you, Bill. Good morning, everyone, and thank you for joining our third quarter earnings call for fiscal year 2026. Whilst there's been a moderation in volatility this quarter, I'm pleased to report our third quarter results. Total net operating revenues of $719.7 million were up 47% versus the prior year, alongside net income of $127.9 million, up 102% year-on-year. We also recorded a diluted EPS of $1 per share, an 85% increase versus the previous year, taking our year-to-date EPS to $3.49 per share, up 82% against prior year. This quarter was driven by strong performance across our Commercial and Institutional segments, which reported a 19% and 56% increase, respectively, in net operating revenue year-on-year, underscoring our increasing relevance to a diverse set of clients. In the Commercial segment, strong performance in our global hedging business helped drive this quarter's results. And pleasingly, net operating revenue across all our products recorded double-digit growth, partly driven by the impact of the RJO and Benchmark acquisitions as well as organic growth. This included listed derivatives up 62% to $68.6 million, OTC derivatives, up 73% to $101.9 million and physical contracts, up 162% to $87.4 million. In the Institutional segment, we recorded our highest ever volumes in securities with average daily volume up 33% versus last year, driven by the exceptional performances in our equities market making business, a segment which we highlighted last quarter with growth in both ADRs as well as U.S. listed equities. Also bolstering our Institutional segment, the acquired business of The Benchmark Company contributed $29.5 million in net operating revenues for the quarter, their best quarterly performance to date. In the Payment segment, we reported a 12% increase in net operating revenue and a 20% increase in ADV year-on-year to a record $96 million. In addition, we recorded the highest number of transactions going through the platform this quarter, validating our continued investment in proprietary technology and reinforcing our belief that the platform can support significantly higher volumes without material increases to our expense base. This scalability positions us to support large financial institutions like Shinhan Bank, where we recently announced a strategic partnership with one of South Korea's oldest and systemically important banks to leverage our global network for complex cross-border payments. Lastly, I wanted to give an update on the progress of R.J. O'Brien. The U.S. FCM consolidation work remains on track to be substantially completed later this fiscal year. We completed the vast majority of RJO's remaining U.S.-based client migration this quarter and as of the end of the quarter, hold nearly $13 billion in required client assets, further strengthening our position as the #1 nonbank FCM in United States. More broadly and as anticipated, volatility moderated from the exceptional levels of the second quarter. Even so, client activity remains strong, supported by continued client engagement and pockets of elevated volatility, resulting in nearly all of our products delivering double-digit growth, reflecting the strength of our diversified business model, the investments we have made across our platform and the scale of the ecosystem we have built. Now I will turn over to Bill for a more detailed discussion on our financials this quarter. Over to you, Bill. William Dunaway: Thank you, Philip. I'll start with Slide #5 in the deck. Just a reminder, in July, we completed a three-for-two split of our common stock, and our shares began to trade on a split-adjusted basis at the market open on July 20, 2026. Because the stock split was effective prior to our release of the Q3 financial statements, all per share metrics on this call will be on a split-adjusted basis. As Philip noted, we delivered strong third quarter results, generating net income of $127.9 million, an increase of 102% compared with the prior year. This performance translated into a return on equity of 18.4%, significantly above our 15% ROE target, despite a 77% increase in book value over the last two years. On a tangible book value basis, we achieved a return on tangible equity of 25% for the quarter. While third quarter net income was 27% lower than the record earnings reported in the immediately preceding second quarter, our results continue to reflect the strength, scale and diversity of our business. We had operating revenues of approximately $1.47 billion, up 43% versus the prior year. As a reminder, our operating revenues include not only interest and fees earned on our client balances, but also carried interest that is related to our fixed income trading activities. Net operating revenues, which nets off interest expense, including that which is associated with our fixed income trading activities as well as introducing broker commissions and clearing fees, were up $231.4 million or 47% versus a year ago, while down 13% versus the immediately preceding quarter. Total fixed compensation and other expenses were up $58.1 million or 22% versus the prior year quarter, with $48.5 million of this attributable to the acquisitions made over the last 12 months, most notably R.J. O'Brien and Benchmark. This increase was partially offset by an $18 million decrease in professional fees, largely due to the recovery of legal fees through insurance and reduced legal defense costs related to the BTIG matter. Total fixed compensation and other expenses, excluding bad debt expense, were down 7% or $23.2 million versus the immediately preceding quarter. Fixed compensation and benefits were up 21% versus a year ago, primarily as a result of the acquisitions noted and include $4.2 million in severance and retention costs. Fixed compensation and benefits were down 6% or $8.9 million versus the immediately preceding quarter, driven by a $6.9 million decline in severance and retention costs, a decrease in back office and administrative salaries, along with a decrease in payroll taxes. Moving on, I've mentioned the acquisitions over the last 12 months and wanted to touch on the revenue contribution for two of them, R.J. O'Brien and Benchmark. The acquisition of R.J. O'Brien contributed $78.8 million in net operating revenues for the quarter, net of unrealized negative mark-to-market adjustment on their investment portfolio and exchange common stock of $9.8 million, while Benchmark contributed $29.5 million for the third quarter, as Philip noted, their best performance to date. Looking at it from a longer standpoint, our trailing 12 months results show operating revenues were up 48% to nearly $5.7 billion. Net income was a record $526.9 million, up 77%, with diluted earnings per share of $4.19 and an ROE of 20.8% for the trailing 12-month period. For the third quarter, our average client equity and FDIC sweep balances were $16.2 billion, up 108% versus the prior year and up 7% versus the immediately preceding quarter. Finally, we ended the third quarter of fiscal 2026 with a book value per share of $23.70. Turning to Slide #6 in the earnings deck, which compares quarterly operating revenues by product as well as key operating metrics versus a year ago, we experienced operating revenue growth across all products versus the prior year with the exception of FX and CFDs down 19%. Transactional volumes were up across all of our product offerings with the exception of FX/CFDs, down 12%, and the spread and rate capture increased in listed derivatives securities, while OTC derivatives, payments and FX/CFDs declined. Just touching on a few key highlights for the third quarter. We saw operating revenues derived from listed derivatives increase $157.9 million or 125% versus the prior year, primarily due to the acquisition of RJO, which contributed $132.3 million as well as a $10.4 million increase in base metals listed derivative revenues on LME markets versus the prior year. Listed derivative operating revenues decreased 11% versus the immediately preceding quarter. Operating revenues derived from OTC derivatives increased 73% versus the prior year, driven by an 89% increase in OTC derivative contract volumes. This significant increase in client activity was most prevalent in agricultural, renewable fuel and soft commodity markets as well as continued increasing volumes associated with our automated trading platforms, which have allowed for more efficient processing and hedging of OTC transactions. OTC derivative operating revenues declined 15% versus the immediately preceding quarter, which has benefited from the widening of spreads in the immediately preceding quarter due to the onset of the U.S.-Iran conflict. We had another strong performance in our physical business with operating revenues derived from physical contracts increasing 106% versus the prior year, primarily driven by a $40.5 million increase in precious metals operating revenues as well as an $18.7 million increase in physical supply and trading operating revenues. Operating revenues derived from physical contracts declined 39% versus an immediately preceding record second quarter, which was highlighted by extremely strong performance in precious metals. Securities operating revenues were up 24% as average daily volumes increased 33% versus the prior year and the average rate per million increased 9%. The increase in ADV was driven by strong performance in equities, both in ADRs and U.S. listed markets, while the increase in rate per million was driven by improved spread capture in fixed income markets. Securities operating revenues were up 3% versus the immediately preceding quarter. Payment revenues increased 13% versus the prior year quarter due to a strong 20% increase in ADV, partially offset by lower RPM. Payments revenues were up 6% versus the immediately preceding quarter. FX/CFD revenues were down 19% versus a strong prior year quarter, which had benefited from heightened client activity, most notably in FX markets following Liberation Day tariff announcements with ADV and rate per million declining 12% and 8%, respectively. FX/CFD revenues declined 9% versus the immediately preceding quarter. Our interest and fee income earned on our aggregate client float, including both listed derivative client equity and money market and FDIC sweep balances increased $66.1 million or 64% versus the prior year, with the acquisition of RJO contributing $56.9 million. Average client equity increased 129% as RJO contributed $6.6 billion in average client equity for the quarter and the average money market FDIC sweep client balances declined 2%. Moving on to Slide #7. I'll do a quick review of our segment performance. Our Commercial segment increased net operating revenue 90% versus the prior year, primarily resulting from the performance in our physical businesses, which increased $54.1 million and OTC derivatives, which added $43.1 million. In addition, as a result of the increase in legacy client activity as well as the acquisition of RJO, listed derivatives and net interest income increased $26.3 million and $31.7 million, respectively, versus the prior year. Segment income increased 119% versus the prior year, while on a sequential basis, net operating revenues were down 20% and segment income was down 26% off the record second quarter performance. Our Institutional segment also saw strong growth in net operating revenues and segment income, up 56% and 49%, respectively. The growth in net operating revenues was principally driven by a $45 million increase in securities revenues. In addition, listed derivatives and interest and fee income increased $38 million and $6.2 million, respectively, primarily driven by the acquisition of RJO. Also, other net operating revenues increased $24.6 million with the acquisition of Benchmark contributing $29.5 million, which was partially offset by declines in legacy activities. On a sequential basis, net operating revenues declined 1%; however, segment income increased 7%. In our Self-Directed Retail segment, net operating revenues decreased 17%, and segment income was down 36%. These decreases were driven by a 27% decrease in average daily volumes in FX/CFD contracts, which was partially offset by an 11% increase in rate per million captured. On a sequential basis, net operating revenues declined 11% and segment income decreased 18% in this segment. Our Payments segment. Net operating revenues were up 12%, and segment income increased 22%. Average daily volume was up 20% versus the prior year, while rate per million was down 7% versus the immediately preceding quarter, payment net operating revenues increased 7% and segment income increased 8%. Moving on to Slide #8. Looking at segment performance for the trailing 12 months, we saw strong growth in our Commercial and Institutional segments with net operating revenues up 74% and 68%, respectively, and segment income increasing 92% and 59%, respectively. Our Payments segment added 6% in net operating revenues and 17% in segment income. Our Self-Directed Retail segment reported a 20% decline in net operating revenues and a 39% decline in segment income. Finally, moving on to Slide #9, which depicts our interest and fee earned on client balances by quarter as well as a table which shows the annualized interest rate sensitivity for a change in short-term interest rates. The interest and fee income, net of interest paid to clients and the effect of interest rate swaps increased $38 million to $111.9 million in the current period, with the acquisition of R.J. O'Brien contributing $30 million in net interest in the current quarter. On a sequential basis, interest and fee income, net of interest paid to clients and the effect of interest rate swaps increased $4.2 million as the average client equity and FDIC sweep client balances increased 7%. During the third quarter of fiscal '26, we entered into an additional $750 million in fixed rate SOFR swaps to hedge our aggregate interest rate exposure, which brings our aggregate swap position to $2.55 billion with an average duration of approximately 1.5 years and an average rate of 3.51%. These swaps are reflected in the interest rate sensitivity table on this slide. As shown, we now estimate a 100 basis point change in short-term interest rates, either up or down, would result in a change to net income by $46.9 million or $0.38 per share on an annualized basis. With that, I will hand you back to Philip for a product spotlight on our Global Prime Services business. Philip Smith: Thank you, Bill. As we do each quarter, and turning to Slide 11, we'd like to spotlight one of the business lines driving our growth. And this quarter, I'll turn to our Global Prime Services. Our Prime Services is a global, fully integrated prime brokerage platform, operating from London, Singapore, Atlanta, New York and Park City, Utah. From essentially a standing start in 2018, we now serve more than 700 accounts globally with over $16 billion in client balances on the platform, generating nearly $140 million in net operating revenue in the last 12 months. Prime has become one of the strongest growth stories in the firm, having grown at a 60% plus CAGR over the last 7 years and is one of the clearest examples of our ecosystem at work. The thesis was straightforward and is the same thesis that runs through everything StoneX does. We serve mid-market clients, who need institutional-grade capabilities, but have been historically underserved by the large global banks and broker-dealers. As bulge bracket firms impose return on capital and revenue minimums, we stepped in as the partner of choice, offering flexible, cost-effective and scalable solutions combined with the risk discipline and balance sheet strength that institutional clients expect. Turning to the next slide, Slide 12. We have built a modular platform designed specifically around the mid-market segment, drawing on the core infrastructure StoneX has developed across execution, clearing, custody and finance and of course, backed by the StoneX balance sheet. Clients access the capabilities they need, supported by the scale and stability of the broader franchise. In the United States, our platform covers trading and financing across equities, fixed income and options through both fully self-clearing and introducing clearing models. Our hedge fund segment has grown steadily with recent volatility driving increased engagement in options and futures strategies. Our investment in automation leaves us well positioned for the rapid expansion in the ETF space, and our multi-custodian, multi-asset capabilities have gained meaningful traction with both single and multifamily offices. Securities financing and lending are also central to our U.S. offering. We help clients finance and margin their positions and cover short sales, drawing on our own inventory and an extensive lending network to source hard-to-borrow securities. Our matchbook securities lending activities earn a spread-based return on over $2 billion in balances, and we help clients earn incremental income via our securities lending desk. Outside the U.S., we have seen rapid growth since launching three years ago. For hedge funds, institutional managers and digital asset participants, we provide execution, custody, financing and hedging across both equities and fixed income. A key differentiator is in fixed income, where we offer repo financing at an individual security level rather than a blended portfolio rate that is underpinned by a U.K. custody solution that gives clients confidence, their assets are held securely within a fully regulated framework. For digital asset funds, we provide institutional grade execution and custody across both crypto and traditional assets, along with collateralized lending within the digital asset ecosystem. Managers can hold fiat or fixed income collateral separately from their crypto exposure, while financing their traditional assets on the same platform. Today, in addition to the digital assets we custody, Prime holds nearly $1.5 billion in traditional assets on behalf of those clients. Lastly, StoneX' existing relationships provide a natural cross-selling opportunity for Global Prime. This includes clients in our Commercial segment, whose treasury function can leverage Prime's custody capabilities and earn a return on excess cash balances. On Slide 13, you can see the results of these efforts. Since 2019, client balances have grown from less than $1 billion to more than $16 billion today, generating nearly $140 million of net operating revenue on a trailing 12-month basis. The growth since inception has been rapid with much of the growth coming in the last three years, with client assets growing at a CAGR of over 65% since 2023. This growth has been broad-based across the clients we serve, including hedge funds, ETF and mutual fund providers and family offices. Despite this growth, our share of the addressable market remains relatively modest. We believe the combination of a large market opportunity, increasing demand for multi-asset prime service providers and our disciplined approach to execution provides a substantial runway for growth. On the next slide, I will go through Prime's priorities and outlook. A core priority for StoneX is to remain relevant to our clients through the products we offer, the markets we operate in and the depth of relationships we build. For Global Prime, this means the following: First, we are extending our financing suite to include U.S. equity swaps, fixed income total return swaps and fixed income prime brokerage, capabilities we've always proven in EMEA and are now bringing to the United States. We're also investing in capabilities that span global markets. Our outsourced trading business where we provide clients with a fully embedded trading desk has recently expanded into Asia, where early momentum is being built. Second, we are growing the client base organically, inorganically through M&A and by engaging funds earlier in their life cycle. Our prime consultancy business, which includes capital introduction, helps us build relationships with emerging managers as they launch and scale their funds, creating an early entry point into the relationship. Lastly, as we finalize the integration of Benchmark and R.J. O'Brien, we expect significant cross-sell opportunities through clients who are beginning their relationship with StoneX. Finally, we are focused on making the platform more valuable for clients who choose to do more business with StoneX. Through cross-product margining and collateral relief, integrated coverage teams and consolidated reporting, we are making it easier for clients to access the full breadth of the ecosystem through a single relationship. This is evidenced by clients engaging with us across multiple capabilities from the beginning. And in some cases, we have clients on board across 7 products simultaneously. We believe these initiatives will drive greater client engagement, strengthen retention and create a compounding opportunity to deepen relationships over time. Turning to the last slide of the section, Slide 15. The most important point I want to leave with you is that Global Prime Services does not sit in isolation. It is the connective tissue of the StoneX ecosystem. Prime brings together custody, financing, execution, hedging capabilities that often form the foundation of a client relationship. From there, those same clients can access a broader range of products and capabilities across our ecosystem, whether through FX, payments, clearing, market making and other products and services. As clients engage more, relationships deepen, wallet share expands and the client becomes stickier. In that sense, Prime is not only a growing business in its own right, but also a driver of growth across the broader StoneX platform with the value of the ecosystem compounding as clients do more business with us over time. Now to close, this was another strong quarter in spite of the moderation in volatility with net income of $127.9 million and diluted EPS of $1. Trailing 12 months net income was $526.9 million, up 77% versus the prior year. Our return on equity for the quarter was 18.4% and on the trailing 12 months, 20.8%, both well above our 15% target. On a tangible book value basis, return on tangible equity was 25% for the third quarter and 28.7% on a trailing 12-month basis, with book value per share of $23.70, up $5.76 or 32% versus the prior year. Our performance to date reflects the power and scale of the ecosystem we have built at StoneX and the compounding effect of the investments we have made in technology, people and products. We continue to see a significant total addressable market ahead of us, and we remain excited about the growth prospects of the company and the continued expansion of that ecosystem. With that, operator, would you kindly open the line for questions? Operator: Our first question comes from Dan Fannon from Jefferies. Daniel Fannon: So I wanted to just follow up on the comments around just the physical market, which has been so strong for you year-to-date. Just wanted to get a little bit more color around the underlying activity, what's driving that. We've also read about Project Vault. If that is -- curious if that is something that -- which the government is doing is having an impact on, kind of, the growth of that business? Philip Smith: Yes, sure, Dan. So our physical business, as you know, separates between metals and nonmetals, and it's very much precious metals versus non-precious metals, more in the commodities, agricultural and as such. So we've seen over the last, I guess, two quarters where the metals, the precious metals physical business has just outperformed and done incredibly well and exceeded expectations. And a lot of it was driven by just dislocations in various markets between location A and location B. And I think I went into that in quite a lot of detail in the last two earnings calls. With regards to domestic and non-metals business, that physical business continues to grow. We continue to build out market share and very much as we set out when we made certain acquisitions such as CDI, which put us into the physical cotton business and very much into the expansion into physical coffee and physical cocoa. These are areas where our financial business is very strong, and our client base is very deep. And when we look to expand into those areas, we do take a certain level of comfort in the fact that we are then extending the product offering, extending the ecosystem within that space, but from a very strong position within our financial space. And where we had continued success in building out those businesses is where we've been able to work very closely with our financial business, our financial-based clients and being able to offer them the additional level of service. That's been crucial in terms of our build-out of our physical business, which we continue to strive to add more and more products, more and more capabilities to. And it becomes more of a unique ecosystem for our clients, where some clients will be very eager to operate in the physical space. They want the hedging capability. We have the ability to embed optionality into physical contracts. That's a fairly unique product offering in this space because we have that strong financial business, the strong OTC business and an increasingly strong physical business. Bringing those together, I think, makes a very formidable product line for us and something we want to highlight in a couple of quarters' time, where we've brought together various parts of the business that we've acquired. We've built out organically, new initiatives. And we want to highlight that as a separate division, which is increasingly becoming part of more and more relevant business line for us. Daniel Fannon: Understood. That's helpful. And so then wanted to follow up on some of the comments around the RJO integration. I think the commentary, obviously, is that it's going well. Curious if you could put some numbers around where you are on the cost synergy side? And then at the time of the deal, you announced multiple, I think, or greater revenue synergy potential over time versus the expense synergies outlined. So curious if there's been any early attribution you could attribute to revenue synergies? William Dunaway: Sure. Thanks, Dan. I'll take the first one, and I'll let Philip handle the second one. So on the cost synergy side, as we -- as I mentioned on the last call, we, kind of, were exiting Q2 with about $32 million-ish run rate on an annualized basis of the cost savings. We expect to be -- or we're exiting Q3 here with something closer to $37 million, $38 million, still targeting, kind of, what we talked about last quarter by the end of the fiscal year, so end of next quarter to be mid-40s, $45 million, $46 million run rate and by probably end of first quarter to be at the $50 million we originally announced. So tracking well from where we were last quarter continuing to see that grow here in Q3. Philip Smith: And I think when we last spoke last quarter, we were saying this Q3 was a very important quarter with regards to the integration. This was when the large integration process of the U.S. FCM was going to happen. And that did happen. That has been completed. And we are now able to start looking at the business more holistically, looking at the clients, being able to really go deeper into the cross-selling capability. Now from the moment we announced the deal, even before closing, there was a lot of interaction between StoneX and R.J. O'Brien. That continued into closing. That continued into the integration. And there are early success stories of where increased capability that we can provide from StoneX to R.J. O'Brien clients, who are now StoneX clients, is -- we've seen the benefit of it, we've seen an increased level of momentum, and we are -- we continue to be very positive about the outcome. Now as I said in previous conversations, there are certain products that we can offer to customers on Day 1, increased capability, access to platforms, access to physical products, physical programs that will assist our clients immediately. And there are others where it does involve increased level of engagement in education and also awareness to make sure that products that we are now able to offer legacy R.J. O'Brien clients are correct and suitable for the clients. So it's an important process that we -- which is why we repeat, we never made any revenue synergies because we didn't want to be bound by time line expectations, ensuring that we didn't rush certain aspects of future revenue, which we feel and continue to feel very strongly about because of that suitability and ensuring that we're not doing -- we're not moving too quickly for the sake of achieving a time line that we set out to the market. But that momentum continues. And as the clients are now very much embedded in the StoneX system, we're able to leverage that at a greater rate. And we continue to mark lots of cards of wins along the way. Daniel Fannon: Understood. And then, Bill, just a follow-up on just the quarter's results, and if there were any onetime or where any, kind of, some of the -- in the income statement, like professional fees looked low, if there are any benefits or things that we think about from a normalized basis going forward, we should be aware of as we think about your fiscal fourth quarter? William Dunaway: Sure. And we tried to point that out a bit. There's about a $12.5 million recovery, insurance recovery in professional fees, net of some settlements, it's about $8.5 million, I would say, on a net basis for the quarter. So that would have been one. We did talk about the synergies. There were also about 4 -- a little over $4 million of severance and retention in the quarter. So, kind of, netting those out versus the synergies. I think those are probably the only two I would call out, Dan. Operator: Our next question comes from Jeff Schmitt from William Blair. Jeffrey Schmitt: On the revenue synergies, I know you spent a lot of time getting to know RJO's derivative capabilities and going through their client list. But what are some of the takeaways you have from going through their books? And I think you just started your cross-selling efforts, but for your OTC derivatives. So maybe if you can give us a sense on how long you think that could take? Philip Smith: That does seem to be the question everyone wants to know, isn't it? Look, we -- as I said, we've been able to achieve a lot of interaction between existing parts of R.J. O'Brien and StoneX even before the integration has been completed, very much increasing that awareness of what we have to offer. A lot of our -- and I would say, I want to reiterate what I said before is that we've had some very easy wins with regards to offering platforms and capabilities that perhaps in our physical business. Now those are already being utilized across legacy R.J. O'Brien clients because they see it as an opportunity. And some of them would have liked to have been able to do that in-house at R.J. O'Brien. They didn't have the capability. And in some cases, didn't know there was an alternative or didn't know there was a product of such that would help them. That's been crucial in just increasing the awareness. Now you must remember, R.J. O'Brien have 350 IBs, who themselves have underlying clients. So reaching out to the end client has been a process of integration, a process of awareness and a process in which we have tried as actively and as deeply as possible to engage with those underlying clients and really demonstrate all the capabilities that are on offer. Now equally, things, as we said quite early on, things like foreign exchange provision, things like OTC, access to our physical hedging capability, access to physical contracts, things like -- things that we sometimes take for granted, it does have to have a lead time of rollout. So we've not put any pressure on people to sell. This is -- we made this very clear. We don't want this to be seen as something that we are trying to force on people. It's all about increased awareness and education and highlighting all the capabilities. And I'm not saying that every single client of R.J. O'Brien, who traditionally traded futures to hedge their exposure, their risk mitigation in whatever product it might be, will automatically move to an OTC. But the beauty of an OTC product is that we're able to custom make a hedge for our clients. That's what our client base does benefit from. They enjoy the personal suitability and targeting of specifically their product, their exposure and themselves. And I think that's what makes a difference, but it takes time. And we've built out huge OTC businesses from scratch in parts of the world in EMEA and APAC, where I would say 5, 6 years ago, our OTC capability was almost minimal. That's now a big driving force of our expansion and our relevance to our clients. So we try to apply that same logic to all clients regardless of whether they are legacy R.J. O'Brien or not. So that's very much the direction we're going, very much a strategy, and the RJO client base is part of that. But just like every other client who touches StoneX in one way, we want to ensure there's more that we can offer. And I think that's why I went into the deep dive with our Prime business because that's an illustration, where we've brought all the capabilities within the ecosystem into a single product offering, which I think is a distinction between us and many other participants in the market. Jeffrey Schmitt: And then a question on the payments business. I mean the RPM continues to decline there. It's fallen for a couple of years now. I think in the past, you talked about a client mix shift, having some impact, maybe moving into larger banks. But could you discuss what's driving that? And how much further do you think that can fall? Philip Smith: Well, if you go back to -- I'm trying to remember when we did the deep dive on payments, it coincided with the launch of our proprietary system, X-Pay. And the key there was all about capacity. And you must remember that up until that point, we were turning away business. We had many, many banks, payments companies wanting to move more business towards us, very much high-volume, low-value payments. And our system at the time did not have the capability. And so we were turning away business. Once we rolled out X-Pay, as said, we increased the capacity 15-fold and then allowed those banks, those FIs, those payments companies to use our payment channels, our rails to get into the country that they were lacking, but at a scale that they were not able to provide themselves. And prior to the rollout of X-Pay, we were not able to provide. So that was a key driver for the need to build out a new system and also a desire to take on that business that was -- the world was struggling with. And so we've seen that growth. We continue to see a lot of large companies -- large payment companies, increasing number of banks who have this flow and are now actively directing it to StoneX because we now have that capability and are able to provide that level of service as we do with the lower volume, higher value payments. So it increases that capability. And that's the reason why you're seeing the average -- the volume -- the average daily volume going up, but you're also seeing the revenue per trade going down. And we continue to expect that to be a trend for the foreseeable future. Jeffrey Schmitt: That could be over the next few years. Go ahead. William Dunaway: No, I was going to say you can, kind of, see what Philip is talking about when you look at our first quarter of this fiscal year, that's when you really saw a big spike up in our volumes, and you did see a trend down a bit in the rate per million from a little over $10,000 to $9,400 per million. But then you've seen that actually trend up and the volumes have grown, which has been a nice trend during the fiscal year going up sequentially for three quarters. So it did, kind of, level set shift down, as Philip said, as that system got rolled out. But now we're seeing it. It trended up a little bit. I don't think it's necessarily going to get to where it was, but the volumes are growing quite fast, and it's nice to see rates per million are going up. Philip Smith: And it was just shy of a record quarter and which is -- the reason I say that is because historically, in our payments business, the Q1 has always been the high watermark in most years. And we were just shy of beating the Q1 high watermark from 2024. So I think that's pleasing to see. I am hoping to have a deep dive in payments for our Q1 '27 call because it should coincide with quite a few initiatives and exciting opportunities that we want to throw out and bring together and highlight the strategy, which will probably be about three years after we last did the deep dive. Jeffrey Schmitt: Okay. Great. And then a question on client float. Obviously, up a lot from the RJO deal. But what do you think that can grow at after the deal, kind of, annualizes or lapses? And then any changes in your investment strategy there? Are you increasing duration, using more swaps, anything like that? William Dunaway: Yes. I mean I think that post the deal, I think you can certainly be growing that -- those balances, high single-digit percent, right? The industry continues to grow, and I think that we've got a compelling story being the largest nonbank U.S. FCM and continuing to grow, obviously, in the U.K. and Singapore as well. So definitely becoming more relevant there. And on the investment front, we're not really doing anything different than what we've, kind of, talked over the last 9 months. Post integration, we are continuing to put in some levels. As I said in my remarks today, we did do about another $0.75 billion of 2-year swaps and to, kind of, average in this quarter to, kind of, put a floor. So overall, we've got about $2.5 billion of swaps out there at a little over 350 basis points, which puts a nice, kind of, floor for us on the piece of it. And then we're -- there's a little bit of duration we're taking, but not a lot on the actual investment side. There's probably about $1.5 billion there as well that we've got a little bit out on the curve, but nothing more than two years. And so just trying to continue to maximize and make sure that we're earning a little bit of a premium over SOFR, 10 or 15 basis points is, kind of, what we're targeting. Jeffrey Schmitt: Yes. Okay. And then just one last one. I think in the Q, it had mentioned greater adoption of your automated trading platform with regards to your OTC derivatives business. I don't know if that's a newer initiative or something you've been investing in. I was just curious why that was called out specifically? Philip Smith: No, it's nothing -- it's not new, but I think it's fair to say it's been accelerated and improved and the efficiencies achieved using our -- using AI to speed the upgrades and the increased capability and the increased efficiency from our platforms. That's something we are seeing across the board. And you're seeing it as a highlight in the OTC capability where our electronic swap matching platform has just been rolled out, and it has been rolled out over time, but the acceleration and the efficiency of the capability within the platform has really made a meaningful difference. And a lot of that relates back to my announcement in the last quarter where we went from an AI perspective from, sort of, early adoption, experimenting, sort of just playing around to rolling out an enterprise-wide capability, which is becoming increasingly core and central to our overall technology build-out. And that is a good example. Our swap platform is a good example where we're starting to see early wins on that. And we are similarly rolling out the capability to improve efficiency in reconciliations and investigations and LC management, settlement instruction corrections and technology platform and project acceleration. So a lot of that will be provided as a, sort of, post-6-month announcement in the next earnings call because I think we want to start demonstrating to our investors and the market what we've been able to achieve, whether it's cost savings, reduction in vendors, whether it's efficiency of technology, acceleration of rollout of new product capability, all the such. So that's the objective there in the next quarterly earnings. William Dunaway: And I would just add, Jeff, one of the other nice things that's come out is if you look back 6 -- 7 years ago and a lot of the structured products that were trading in OTC. That was -- those were phone conversations that were going on with our desk and the broker and the clients to kind of customize the solution and find out what it is. And now we have tools to where customers can just be looking at live pricing for structured products that fit the needs that they have. So it's a much quicker execution, much more customizable and gives them a great view. So those kind of things that are -- another thing that's kind of driving that -- those volume growth and revenues. Philip Smith: And it makes expansion geographically that much easier because you're not feeding through to people to pricing transactions, you're able to offer it to more and more parts of our global footprint and the clients that sit in throughout the globe. Operator: Our next question comes from Dan Fannon from Jefferies. Daniel Fannon: So just wanted to get your updated thoughts on M&A here currently and maybe the dialogue or activity as you see in the kind of back half of the calendar year, if you see that picking up for yourselves? Philip Smith: I think I've been asked that before, and I think the response has been we are always looking at transactions. We are known as a consolidator. We're known as an acquirer in the market. And we have stuck to very strict principles of the logic for adding to the StoneX ecosystem, and whether it expands our geographical footprint, whether it expands our product offering or whether it brings us a book of clients that we didn't have before. And that doesn't stop. And we -- I think we said there's always half a dozen transactions that we're looking at. And I think I actually put it out there almost business as usual is for us to be acquiring companies sort of $10 million to $30 million, $10 million to $40 million in size that add to that increased capability. And I don't see that being anything other than almost business as usual now. I think a lot of companies are those small monoline business lines, maybe single -- sole proprietary -- sole proprietors who are looking for an exit strategy. We are seen as an opportunity for those to extract value and bring a capability that will be added and hugely supplement the sort of the product offering across our entire ecosystem and, at the same time, give the entire capability that sits within StoneX to their clients to enhance the relationship to make it look deeper and more meaningful. So those -- that will not change, and that hasn't changed. And we haven't seen any change of any sort from the beginning of the year to where we are today. And then we've obviously been able to demonstrate that even companies the size of R.J. O'Brien, which are the largest transaction we've ever completed, was able to be integrated as on time -- on the time lines within budget and achieving the objectives that we set out on Day 1. So I think we now have a dedicated team -- dedicated resources that continue to look at transactions to make the acquisitions, to complete the acquisitions and then most importantly, to complete the integration. And that's a key part of our business and DNA going forward. But we are not desperate. We don't go out trying to find gaps unless there's an obvious clearing gap in our ecosystem that we'd like to fill, we would actively keep an eye out. But on the whole, we look at many, many transactions. We're very disciplined in our approach, and what we like and what will add to our ecosystem, we will look to see if we can achieve that. Operator: I am showing no further questions at this time. I would now like to turn it back to Philip for closing remarks. Philip Smith: Well, thank you, all, for your time. We're very pleased with our Q3 numbers. And once again, a huge shout-out to all StoneX employees who have helped make this happen by continuing to provide a standout level of service, professionalism and relevance to the market and our ever-increasing number of clients and customers and, of course, to each other. Thank you very much. Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Before you buy stock in StoneX Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and StoneX Group wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. StoneX (SNEX) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

StoneX Group Inc. SNEX combines rapid earnings growth, expanding client activity and acquisition-driven scale. The complication is price. Shares trade above both their five-year median valuation and the Zacks sub-industry multiple, raising the bar for continued execution.That leaves investors weighing two credible forces. Earnings momentum and broader client engagement support the bull case, while revenue-capture pressure, higher costs and a richer multiple argue for discipline. The Zacks Consensus Estimate calls for fiscal 2026 earnings of $4.35 per share, up from $2.62 in fiscal 2025. Fiscal 2027 earnings are projected at $4.45 per share, indicating that the current earnings step-up is expected to hold rather than fully reverse. Earnings Estimates Image Source: Zacks Investment Research The fiscal 2026 consensus revenue estimate implies 41.9% year-over-year growth. StoneX's diversified platform, elevated trading volumes and acquisition activity support that outlook, while higher platform utilization and cross-selling could help sustain profitability as the business scales. Sales Estimates Image Source: Zacks Investment Research SNEX trades at 14.59X forward 12-month earnings. That compares with its five-year median of 10.75X and the industry's 13.28X, so investors are paying a premium to StoneX's own history and its peer group.The premium is manageable if earnings continue to expand, but it leaves less room for disappointment. Slower trading activity, weaker cross-selling or continued pressure on revenue capture could weigh on earnings momentum and compress the valuation multiple. P/E F12M Image Source: Zacks Investment Research Global Prime is one of the clearest growth avenues. The business serves more than 700 accounts with almost $16 billion in client balances and generated nearly $140 million in net operating revenues over the trailing 12 months. StoneX is also investing in automation and artificial intelligence to expand Payments without proportionate cost growth.Industry activity offers useful context. Interactive Brokers Group IBKR reported record client accounts and total client daily average revenue trades in the second quarter of 2026. CME Group Inc. CME reported record June average daily volume of 30.6 million contracts, up 19% year over year. Those trends underscore the broader opportunity for platforms that monetize sustained market participation. Payments remains a pressure point because revenue per million has been declining even as volume grows. Self-Directed/Retail also weakened, with operating revenues down 13% in the fiscal third quarter as lower foreign-exchange and contracts-for-difference activity hurt results.Costs are rising with expansion. Total fixed compensation and other expenses increased 22% year over year in the latest quarter, while non-trading technology and support costs climbed 43%. Net bad debt expense also increased in the first nine months of fiscal 2026, adding another risk if market volatility produces greater client stress. The decision is not simply buy or avoid. StoneX has enough earnings momentum and business expansion to support a constructive view, but the current valuation means investors are relying on continued execution. For those sensitive to entry price, waiting for a better valuation could still be reasonable. Over the past week, shares of StoneX have declined 14%. One Week Price Performance Image Source: Zacks Investment Research SNEX currently sports a Zacks Rank #1 (Strong Buy). Likewise, Interactive Brokers sports a Zacks Rank #1, while CME Group has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.StoneX also has a VGM Score of A and Momentum Score of A, along with a Value Score of B and Growth Score of B. The combination of a top Zacks Rank with A or B Style Scores is generally favorable for near-term stock selection, but it does not remove the valuation, margin and credit risks investors should weigh. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report StoneX Group Inc. (SNEX) : Free Stock Analysis Report CME Group Inc. (CME) : Free Stock Analysis Report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

StoneX Group Inc. SNEX paired a sizable fiscal third-quarter earnings beat with broader contributions from its expanded platform. Earnings, operating revenues and net income all rose sharply year over year as Commercial and Institutional activity strengthened.The next question is whether that momentum can extend beyond the quarter. Progress on R.J. O’Brien integration synergies supports the case, although retail weakness, revenue-capture pressure and a larger expense base remain important offsets. Fiscal third-quarter 2026 earnings rose 85.2% year over year to $1.00 per share, topping the Zacks Consensus Estimate of 76 cents by 31.6%. Operating revenues increased 43.3% to $1.47 billion and exceeded the consensus mark of $1.32 billion. Earnings Surprise History Image Source: Zacks Investment Research Net income more than doubled to $127.9 million from $63.4 million. Net operating revenues also advanced 47% to $719.7 million, reflecting gains across listed derivatives, over-the-counter derivatives, securities, physical contracts and interest and fees earned on client balances. Commercial operating revenues jumped 97% to $452.2 million. Segment income increased 119% to $181.4 million as listed derivatives, over-the-counter derivatives and physical contracts all recorded substantial year-over-year growth.Institutional operating revenues rose 40% to $875.3 million, while segment income increased 49% to $129.9 million. Securities average daily volume climbed 33% to $12.26 billion, and the R.J. O’Brien acquisition contributed 27 million listed derivatives contracts during the quarter.Trading activity across the broader market provides additional context. CME Group Inc. CME reported a record June average daily volume of 30.6 million contracts, up 19% year over year, while Interactive Brokers Group, Inc. IBKR said total client daily average revenue trades reached a record in its second quarter. R.J. O’Brien integration remains on track to be largely completed in fiscal 2026. Annualized synergies reached about $38 million by the end of the fiscal third quarter and are expected to move closer to $45-$46 million by fiscal year-end.Management remains confident in achieving the $50 million annualized synergy target, with the remaining benefits expected in fiscal 2027. The acquired business is already influencing the operating base through higher listed derivatives activity, client balances and related interest income. As such, the Zacks Consensus Estimate for sales suggests year-over-year growth of 41.9% for fiscal 2026 and 2.9% for fiscal 2027. Sales Estimates Image Source: Zacks Investment Research Self-Directed/Retail operating revenues declined 13% to $96.3 million and segment income fell 36% to $24.9 million. Foreign-exchange and contracts-for-difference operating revenues dropped 19% as average daily volume decreased 27%.Costs also moved higher as the platform expanded. Total fixed compensation and other expenses rose 22% to $314.2 million, fixed compensation and benefits increased 21% and non-trading technology and support costs climbed 43%. These trends raise the importance of continued revenue growth and acquisition benefits. The quarter strengthens the case that StoneX can benefit from broader client activity and integration gains, but the investment setup still depends on execution. Reaching the remaining R.J. O’Brien synergy target while offsetting retail softness and higher costs will be important to sustaining earnings momentum.The Zacks Consensus Estimate calls for fiscal 2026 earnings of $4.35 per share, up from $2.62 in fiscal 2025. Fiscal 2027 earnings are projected at $4.45 per share, indicating that the current earnings step-up is expected to hold rather than fully reverse. Earnings Estimates Image Source: Zacks Investment Research SNEX currently sports a Zacks Rank #1 (Strong Buy). Likewise, Interactive Brokers sports a Zacks Rank #1, while CME Group has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.StoneX also has a Momentum Score of A and VGM Score of A, along with a Value Score of B and Growth Score of B. The combination of a top Zacks Rank with A or B Style Scores points to favorable near-term characteristics, though it does not eliminate integration, cost or revenue-capture risks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report StoneX Group Inc. (SNEX) : Free Stock Analysis Report CME Group Inc. (CME) : Free Stock Analysis Report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

StoneX Group Inc. SNEX used its fiscal 2026 third-quarter earnings call to emphasize execution after acquisitions as volatility moderated. Management said the R.J. O’Brien integration is moving from client migration toward cost savings and cross-selling. Operating revenues of $1.47 billion exceeded the Zacks Consensus Estimate of $1.32 billion, while earnings of $1.00 per share topped the $0.76 estimate. StoneX Group Inc. price-consensus-eps-surprise-chart | StoneX Group Inc. Quote Chief financial officer William Dunaway said StoneX exited the quarter with roughly $37 million to $38 million of annualized RJO cost savings, up from about $32 million after the second quarter. Dunaway expects the run rate to reach $45 million to $46 million by fiscal 2026 year-end and the originally announced $50 million target by the end of the first quarter of fiscal 2027. Group CEO Philip Smith said the large U.S. FCM client integration was completed, while broader consolidation work remains on track to be substantially complete later this fiscal year. Revenue synergies will not be forced into a timeline because some products require client education and suitability review. Smith devoted a major portion of the call to Global Prime Services, which serves more than 700 accounts with over $16 billion in client balances and generated nearly $140 million of net operating revenue over the past 12 months. Management is extending the platform with U.S. equity swaps, fixed-income total return swaps and fixed-income prime brokerage, while its outsourced trading business has expanded into Asia. Smith also highlighted cross-selling from the Benchmark and RJO integrations. StoneX is working on cross-product margining, collateral relief, integrated coverage and consolidated reporting to make broader client relationships easier to manage. Payments average daily volume rose 20% year over year to a record $96 million, while payments revenue per million declined 7%. Smith tied the mix shift to X-Pay, which expanded system capacity and opened the platform to more high-volume, lower-value flows. Smith said that mix should keep average revenue per transaction under pressure for the foreseeable future even as larger banks and payments companies direct more volume to StoneX. Dunaway said payments pricing has stabilized from the initial reset and improved sequentially during fiscal 2026. Smith plans another payments deep dive on the first-quarter fiscal 2027 call. Smith said StoneX has moved from early AI experimentation to an enterprise-wide rollout, with early gains showing up in its automated OTC derivatives infrastructure. He cited faster enhancements to the electronic swap-matching platform, along with work in reconciliations, investigations, LC management, settlement instruction corrections and technology project execution. Management plans a six-month AI update next quarter, including evidence around cost savings, vendor reductions, operating efficiency and faster delivery of new capabilities. Average client equity and FDIC sweep balances reached $16.2 billion in the quarter. Dunaway said those balances could grow at a high-single-digit rate after the RJO acquisition annualizes. StoneX added $750 million of fixed-rate SOFR swaps, bringing the total position to $2.55 billion with an average rate of 3.51% and roughly 1.5 years of duration. Management estimated a 100-basis-point move in short-term rates would change annualized net income by $46.9 million. Smith reiterated acquisition discipline, saying StoneX routinely reviews several transactions and favors deals that add geography, products or client relationships to the ecosystem. Smith’s closing message centered on scale, client relevance and deeper relationships across products. He also stressed that results remained strong despite lower volatility than in the prior quarter. Management’s priorities now center on finishing RJO consolidation, expanding cross-selling, building Prime and payments capacity, and using automation to support growth without equivalent infrastructure increases. SNEX carries a Zacks Rank #3 (Hold), with a Value Score of B, Growth Score of A, Momentum Score of D and VGM Score of A. Zacks’ Style Score framework treats A and B grades as more favorable, while the D Momentum Score is weaker on that style dimension. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Rank remains the primary signal, and a #3 rating does not carry the stronger combination associated with #1 and #2 (Buy) ranks paired with high Style Scores. The Rank can change as analyst earnings estimates are revised after the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report StoneX Group Inc. (SNEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in StoneX Group Inc.? Here are five stocks we like better. StoneX reported sharply higher earnings: Fiscal Q3 net income doubled to $127.9 million, while net operating revenue rose 47% to $719.7 million and diluted EPS increased 85% to $1.00. Commercial and Institutional businesses drove growth: Commercial revenue surged 90%, helped by global hedging activity and the R.J. O’Brien acquisition, while Institutional revenue increased 56% on record securities volumes. R.J. O’Brien integration is progressing: Cost synergies were tracking toward a $37 million–$38 million annualized run rate, with StoneX targeting $45 million–$46 million by fiscal year-end and $50 million thereafter. StoneX Group (NASDAQ:SNEX) reported third-quarter fiscal 2026 net income of $127.9 million, up 102% from a year earlier, as growth in its Commercial and Institutional businesses offset a moderation in market volatility from the prior quarter. Net operating revenue rose 47% year over year to $719.7 million, while diluted earnings per share increased 85% to $1 on a split-adjusted basis. The company completed a three-for-two stock split in July, and all per-share figures discussed on the call reflected the split adjustment. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Chief Executive Officer Philip Smith said the results reflected “strong performance across our Commercial and Institutional segments,” despite less volatile markets than the company experienced in its fiscal second quarter. Year-to-date diluted EPS was $3.49, up 82% from the prior-year period. Commercial segment net operating revenue increased 90% from the prior-year quarter, supported by global hedging activity as well as contributions from the R.J. O’Brien acquisition. The company reported double-digit net operating revenue growth across listed derivatives, OTC derivatives and physical contracts. Listed derivatives net operating revenue increased 62% to $68.6 million. OTC derivatives net operating revenue rose 73% to $101.9 million. Physical contracts net operating revenue increased 162% to $87.4 million. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Smith said the physical business benefited from strong precious-metals activity and continued growth in non-metals businesses, including physical cotton, coffee and cocoa. He said StoneX is combining its physical offerings with financial hedging capabilities, including the ability to embed optionality into physical contracts. Institutional segment net operating revenue rose 56% year over year, while segment income increased 49%. The company cited its highest-ever securities volumes, with average daily volume up 33%, driven by equities market-making in American depositary receipts and U.S.-listed stocks. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling The Benchmark Company, which StoneX acquired, contributed $29.5 million in net operating revenue during the quarter, its strongest quarterly performance to date, according to management. R.J. O’Brien contributed $78.8 million in quarterly net operating revenue, net of a $9.8 million unrealized negative mark-to-market adjustment on its investment portfolio and exchange common stock. Chief Financial Officer Bill Dunaway said total operating revenue increased 43% from a year earlier to about $1.47 billion. Net operating revenue increased by $231.4 million, or 47%, from the prior-year period, but fell 13% sequentially from the record fiscal second quarter. Total fixed compensation and other expenses rose $58.1 million, or 22%, from a year earlier. Dunaway said $48.5 million of the increase was attributable to acquisitions completed during the past 12 months, particularly R.J. O’Brien and Benchmark. The expense increase was partly offset by an $18 million decline in professional fees, primarily reflecting insurance recoveries of legal fees and lower legal defense costs related to the BTIG matter. Dunaway identified approximately $8.5 million of net insurance-recovery-related benefit within professional fees during the quarter, along with more than $4 million in severance and retention costs. Average client equity and FDIC sweep balances reached $16.2 billion, up 108% from a year earlier and 7% sequentially. Interest and fee income on aggregate client float increased 64% to $66.1 million, with R.J. O’Brien contributing $56.9 million. StoneX reported quarterly return on equity of 18.4%, above its 15% target, and return on tangible equity of 25%. Book value per share was $23.70 at quarter-end, up 32% from a year earlier. For the trailing 12 months, the company reported record net income of $526.9 million, up 77%, and return on equity of 20.8%. Smith said the company completed the vast majority of the remaining U.S.-based R.J. O’Brien client migrations during the quarter. StoneX expects U.S. futures commission merchant consolidation work to be substantially complete later in fiscal 2026. It held nearly $13 billion in required client assets at the end of the quarter and described itself as the largest non-bank futures commission merchant in the United States. Dunaway said cost-synergy savings from the R.J. O’Brien acquisition were tracking toward an annualized run rate of roughly $37 million to $38 million exiting the third quarter. The company is targeting a $45 million to $46 million run rate by the end of fiscal 2026 and the originally announced $50 million level by the end of its fiscal first quarter. Management said it is pursuing revenue synergies through cross-selling but is not setting a timeline for such gains, emphasizing client suitability and education before offering products such as OTC derivatives, foreign exchange and physical hedging programs to legacy R.J. O’Brien clients. During the quarter, StoneX entered into an additional $750 million of fixed-rate SOFR swaps, bringing its aggregate swap position to $2.55 billion. The swaps have an average duration of approximately 1.5 years and an average rate of 3.51%. The company estimated that a 100-basis-point move in short-term rates, in either direction, would affect annualized net income by $46.9 million, or $0.38 per share. Payments segment net operating revenue increased 12% year over year and segment income rose 22%. Average daily volume reached a record $96 million, up 20%, though revenue per million declined 7% due to a shift toward higher-volume, lower-value payment flows. Smith said investments in the company’s XPay proprietary platform have expanded capacity and enabled StoneX to serve more banks, financial institutions and payment companies. StoneX recently announced a strategic partnership with South Korea’s Shinhan Bank for complex cross-border payments. The company also highlighted its Global Prime Services operation, which serves more than 700 accounts globally and holds more than $16 billion in client balances. The business generated nearly $140 million in net operating revenue over the trailing 12 months, according to Smith, and has grown at a rate exceeding 60% annually over the past seven years. Looking ahead, StoneX said Global Prime Services is expanding its financing offerings, including U.S. equity swaps, fixed-income total return swaps and fixed-income prime brokerage. The company also plans to pursue organic growth, acquisitions and cross-selling opportunities as integrations of Benchmark and R.J. O’Brien progress. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "StoneX Group Q3 Earnings Call Highlights" was originally published by MarketBeat. 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StoneX Group Inc. (SNEX) came out with quarterly earnings of $1 per share, beating the Zacks Consensus Estimate of $0.76 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +31.58%. A quarter ago, it was expected that this company would post earnings of $1.07 per share when it actually produced earnings of $1.38, delivering a surprise of +28.97%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. StoneX Group, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $1.47 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 11.57%. This compares to year-ago revenues of $1.02 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. StoneX Group shares have added about 77.9% since the beginning of the year versus the S&P 500's gain of 13%. While StoneX Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for StoneX Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.77 on $1.31 billion in revenues for the coming quarter and $4.00 on $5.63 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Vinci Compass Investments (VINP), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This investments platform is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of +4.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Vinci Compass Investments' revenues are expected to be $56.05 million, up 31.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report StoneX Group Inc. (SNEX) : Free Stock Analysis Report Vinci Compass Investments Ltd. (VINP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

StoneX Group Inc. (SNEX reported third-quarter fiscal 2026 earnings of $1.00 per share, which handily surpassed the Zacks Consensus Estimate of 76 cents. The bottom line jumped 85.2% year over year.Operating revenues increased 43.3% to $1.47 billion. The top line beat the consensus mark of $1.32 billion by 11.57%. Shares fell 1.6% in after-hours trading.Results benefited from broad-based strength across Commercial and Institutional segments, with higher volatility and increased demand supporting client activity. However, weakness in the Self-Directed/Retail segment and higher expenses were the headwinds.Net income more than doubled to $127.9 million from $63.4 million. Net operating revenues rose 47% year over year to $719.7 million. Listed derivatives net operating revenues increased 113% to $121.2 million, while over-the-counter derivatives advanced 73% to $101.9 million.Securities net operating revenues grew 36% to $171.3 million. Physical contracts surged 162% to $87.4 million, and interest and fees earned on client balances increased 51% to $111.9 million. However, FX and contracts-for-difference revenues declined 19% to $62.4 million. Commercial operating revenues jumped 97% to $452.2 million. Segment income more than doubled to $181.4 million from $82.7 million in the prior-year quarter. Growth was broad-based. Listed derivatives operating revenues rose 110% to $152.5 million, OTC derivatives increased 73% to $101.8 million and physical contracts climbed 106% to $115.4 million. Average client equity in listed derivatives soared 162% to $4.54 billion.Institutional operating revenues increased 40% to $875.3 million, while segment income rose 49% to $129.9 million. Net operating revenues for the segment jumped 56% to $312.3 million. Listed derivatives operating revenues surged 145% to $131.8 million, supported by an 83% increase in contract volume. Securities revenues grew 26% to $573.8 million as average daily volume (ADV) increased 33% to $12.26 billion. The R.J. O’Brien acquisition contributed 27 million listed derivatives contracts during the quarter.Self-Directed/Retail operating revenues declined 13% to $96.3 million. Segment income fell 36% to $24.9 million, reflecting pressure from lower FX and CFD activity. FX and CFD operating revenues decreased 19% to $64.7 million as ADV plunged 27% to $6.81 billion. Securities revenues provided a partial offset, rising 3% to $30.4 million. Revenue per million for FX and CFD contracts improved 11% to $147.Payments operating revenues rose 13% to $60.3 million, while segment income increased 22% to $34.4 million. Net operating revenues grew 12% to $56.4 million. Segment’s ADV increased 20% to $96 million. Revenue per million declined 7% to $9,915, indicating that stronger activity levels more than offset lower revenue capture. Total fixed compensation and other expenses increased 22% year over year to $314.2 million. Fixed compensation and benefits rose 21% to $149.8 million, while non-trading technology and support costs climbed 43% to $30.1 million.Variable compensation and benefits jumped 70% to $244 million. Transaction-based clearing expenses increased 52% to $144.3 million, and introducing broker commissions rose 87% to $93.1 million. As of June 30, 2026, return on equity improved to 18.4% from 13.1%, while return on tangible book value increased to 25% from 13.8%. Adjusted EBITDA rose 70% to $229.5 million.Cash and cash equivalents totaled $2.19 billion as of June 30, 2026, compared with $1.61 billion at fiscal 2025-end. Total stockholders’ equity increased to $2.84 billion from $2.38 billion. Management highlighted continued integration benefits from R.J. O’Brien, which has strengthened StoneX’s futures commission merchant position. A volatile operating backdrop continues to aid StoneX, with growth in client assets, average client funds, securities clearing, prime brokerage, digital assets and metals providing stable recurring income. Its broad product ecosystem, geographic reach, acquisitions, scaling equities and payments via automation and AI, and large addressable market will support growth. However, operating margin risk, higher credit costs and a premium valuation leave little room for execution missteps or unfavorable market conditions. StoneX Group Inc. price-consensus-eps-surprise-chart | StoneX Group Inc. Quote Currently, SNEX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. BGC Group, Inc.’s BGC second-quarter 2026 adjusted earnings of 35 cents per share surpassed the Zacks Consensus Estimate by a penny. The bottom line improved 12.9% from the prior-year quarter.Results were aided by an improvement in revenues to record levels, primarily driven by higher brokerage revenues. An increase in Fenics revenues was another positive. However, higher total expenses hurt BGC Group results to some extent.Interactive Brokers Group’s IBKR second-quarter 2026 adjusted earnings per share of 69 cents surpassed the Zacks Consensus Estimate of 64 cents. The bottom line reflected a rise of 35.3% from the prior-year quarter.Results primarily benefited from an increase in revenues, growth in customer accounts and a rise in daily average revenue trades. However, higher expenses were the undermining factor for Interactive Brokers. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report StoneX Group Inc. (SNEX) : Free Stock Analysis Report BGC Group, Inc. (BGC) : Free Stock Analysis Report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Quarterly Net Operating Revenues of $719.7 million, up 47% Quarterly Net Income of $127.9 million, Quarterly ROE of 18.4% Quarterly Diluted EPS of $1.00 per share NEW YORK, Aug. 05, 2026 (GLOBE NEWSWIRE) -- StoneX Group Inc. (the “Company”; NASDAQ: SNEX), a leading financial services franchise connecting clients to global markets, today announced its financial results for the fiscal 2026 third quarter ended June 30, 2026. “We are pleased to report another strong quarter of year-over-year growth in the third quarter of fiscal 2026,” said Philip Smith, the Company’s Chief Executive Officer. “We continue to deliver double-digit growth in our Commercial, Institutional and Payments segments, reflecting the increasing value of the StoneX ecosystem to our expanding client base. We are also beginning to realize the benefits of the successful integration of the R.J. O’Brien acquisition, further strengthening our market position and establishing StoneX as the largest non-bank FCM,” continued Mr. Smith. “We believe the depth and breadth of our ecosystem continues to position us for growth and we remain focused on providing our clients with best-in-class service and execution,” Mr. Smith concluded. StoneX Group Inc. Summary Financials Consolidated financial statements for the Company will be included in our Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission (the “SEC”). Upon filing, the Quarterly Report on Form 10-Q will also be made available on the Company’s website at www.stonex.com. The following table presents our consolidated operating revenues by segment for the periods indicated. The following table presents our consolidated income by segment for the periods indicated. Key Operating Metrics The tables below present operating revenues disaggregated across the key products we provide to our clients and select operating data and metrics used by management in evaluating our performance, for the periods indicated. Interest expense The increase in interest expense attributable to fixed income securities and securities borrowing was principally due to the growth in the size of the security repo and securities lending businesses. The business activities of RJO added an incremental $27.4 million and $80.5 million of interest expense, with $25.1 million and $73.0 million attributable to client balances for the three and nine months ended June 30, 2026. The increase in interest expense attributable to corporate funding was principally due to the issuance of $625 million in aggregate principal amount of the Notes due 2032, which closed on July 8, 2025. The three and nine months ended June 30, 2025 included $6.5 million of bridge loan financing fees related to the June 2025 renewal of the corporate revolving credit facility and the issuance of the Notes due 2032. The table below presents a disaggregation of consolidated net operating revenues used by management in evaluating our performance, for the periods indicated: Variable vs. Fixed ExpensesThe table below sets forth our variable expenses and non-variable expenses as a percentage of total non-interest expenses for the periods indicated. Other (Losses) Gains, net The results of the three months ended June 30, 2026 included a $1.5 million charge on the abandonment of certain capitalized expenditures and an equity investment loss of $0.2 million. The results of the three months ended June 30, 2025 included a $2.3 million loss on disposal of certain capitalized hardware expenditures, partially offset by a gain of $1.0 million resulting from proceeds received from a class action settlement. Segment Results Our business activities are managed through four operating segments, including Commercial, Institutional, Self-Directed/Retail and Payments. The tables below present the financial performance, a disaggregation of operating revenues, select operating data and metrics, and a disaggregation of net operating revenue used by management in evaluating the performance of our segments, for the periods indicated. During the three month period ended September 30, 2025, our acquisition of RJO triggered a reassessment of the financial information reviewed by management. We determined the acquired business activities of RJO were similar to our existing businesses, and the reassessment confirmed the current composition of the Company’s operating segments, except for one change resulting in the combination of all physical trading capabilities in precious metals being reported within the Commercial segment. Previously, the Self-Directed/Retail segment contained a portion of our precious metals activities. All segment information has been revised to reflect all precious metals business within the Commercial segment retroactive to October 1, 2024. Additional information on the performance of our segments will be included in our Quarterly Report on Form 10-Q to be filed with the SEC. Commercial Institutional Self-Directed/Retail Payments Overhead Costs We incur overhead costs, including certain shared services such as information technology, accounting and treasury, credit and risk, legal and compliance, and human resources and other activities. The following table provides information regarding overhead costs and expenses. The allocation of overhead costs to operating segments includes costs associated with compliance, technology, and credit and risk costs. The share of allocated costs is based on resources consumed by the relevant businesses. In addition, the allocation of human resources and occupancy costs is principally based on employee costs within the relevant businesses. Balance Sheet Summary The following table below provides a summary of asset, liability and stockholders’ equity information for the periods indicated. Conference Call & Web Cast A conference call to discuss the Company’s financial results will be held tomorrow, Thursday, August 6, 2026 at 9:00 a.m. Eastern time. The call may also include discussion of Company developments, and forward-looking and other material information about business and financial matters. A live webcast of the conference call as well as additional information to review during the call will be made available in PDF form on-line on the Company’s corporate web site at https://register-conf.media-server.com/register/BI082a743921f5404c91827f24dc2c4996 approximately ten minutes prior to the start time. Participants may preregister for the conference call here. For those who cannot access the live broadcast, a replay of the call will be available at https://www.stonex.com. About StoneX Group Inc. StoneX Group Inc., through its subsidiaries, operates a global financial services network that connects companies, organizations, traders and investors to the global market ecosystem through a unique blend of digital platforms, end-to-end clearing and execution services, high touch service and deep expertise. The Company strives to be the one trusted partner to its clients, providing its network, product and services to allow them to pursue trading opportunities, manage their market risks, make investments and improve their business performance. A Fortune-500 company headquartered in New York City and listed on the Nasdaq Global Select Market (NASDAQ:SNEX), StoneX Group Inc. and its more than 5,200 employees serve more than 80,000 commercial, institutional, and payments clients, and more than 400,000 retail accounts, from more than 80 offices spread across six continents. Further information on the Company is available at www.stonex.com. Forward Looking Statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such as those pertaining to the Company’s financial condition, results of operations, business strategy, financial needs of the Company, impact of the R.J. O’Brien transaction. All statements other than statements of current or historical fact contained in this press release are forward-looking statements. The words “believe,” “expect,” “anticipate,” “should,” “plan,” “will,” “may,” “could,” “intend,” “estimate,” “predict,” “potential,” “continue” or the negative of these terms and similar expressions, as they relate to StoneX Group Inc., are intended to identify forward-looking statements. These forward-looking statements are largely based on current expectations and projections about future events and financial trends that may affect the financial condition, results of operations, business strategy and financial needs of the Company. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the control of the Company, including statements about the benefits of our acquisition of RJO, including expected synergies and future financial and operating results, the plans, objectives, expectations and intentions of StoneX with respect to the acquisition, adverse changes in economic, political and market conditions, including losses from our market-making and trading activities arising from counterparty failures, global trade policies and tariffs, the loss of key personnel, the impact of increasing competition, the impact of changes in government regulation, uncertainty concerning fiscal or monetary policies established by central banks and financial regulators, the possibility of liabilities arising from violations of foreign, United States (“U.S.”) federal and U.S. state securities laws, the impact of changes in technology in the securities and commodities trading industries, and other risks discussed in our filings with the SEC, including Part I, Item 1A of our Annual Report on Form 10-K for the year ended September 30, 2025. Although we believe that our forward-looking statements are based upon reasonable assumptions regarding our business and future market conditions, there can be no assurances that our actual results will not differ materially from any results expressed or implied by our forward-looking statements. These forward-looking statements speak only as of the date of this press release. StoneX Group Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Appendix - Non-GAAP Financial Information The following table reconciles net income to EBITDA(1) and Adjusted EBITDA(1). EBITDA, a non-GAAP measure used to measure operating performance, is defined as net income plus interest expense, depreciation and amortization, and income tax expense. Adjusted EBITDA represents EBITDA plus amortization of share-based compensation and less interest expense attributable to trading activities, including the credit facilities of our subsidiaries, gain on acquisitions, acquisition-related expenses, and gain on class action settlements. Each of the EBITDA-based measures described above is not a presentation made in accordance with GAAP and should not be considered as an alternative to net income or any other performance measures derived in accordance with GAAP as a measure of operating performance or to cash flows as a measure of liquidity. Additionally, each such measure is not intended to be a measure of free cash flows available for management’s discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. Such measures have limitations as analytical tools, and you should not consider any of such measures in isolation or as substitutes for our results as reported under GAAP. Management compensates for the limitations of using non-GAAP financial measures by using them to supplement GAAP results to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone. Because not all companies use identical calculations, these EBITDA-based measures may not be comparable to other similarly titled measures of other companies. The Company believes EBITDA is helpful in highlighting the business’s trends because EBITDA excludes the results of decisions that are outside the control of management and can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate and capital investments. In addition, EBITDA provides more comparability between the historical operating results that reflect purchase accounting and the new capital structure. StoneX Group Inc.Investor inquiries:Kevin Murphy(212) 403 - 7296 [email protected] SNEX-G

StoneX Group Inc. SNEX is scheduled to report third-quarter fiscal 2026 results after market close on Wednesday.In the fiscal second quarter, SNEX’s earnings beat the Zacks Consensus Estimate. Results primarily benefited from broad-based strength across all four operating segments, driven by higher volatility and increased demand, which supported client activity. The top line jumped 64% to $1.57 billion. StoneX is expected to have witnessed solid revenue growth in the fiscal third quarter as well. The Zacks Consensus Estimate for sales of $1.32 billion suggests a 28.5% surge on a year-over-year basis. Additionally, in the past week, the consensus estimate for earnings has remained unchanged at 76 cents. This indicates an increase of 40.7% from the prior-year quarter. Earnings Estimates Image Source: Zacks Investment Research StoneX doesn’t have an impressive earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, with the average beat being 9.47%. Earnings Surprise Image Source: Zacks Investment Research With SNEX’s latest earnings release approaching, should investors buy the stock now or wait until after the results are announced? Let’s examine how the company is positioned ahead of earnings. During the to-be-reported quarter, client activity was robust, driven by heightened volatility. Hence, StoneX’s commission and clearing fees are expected to have increased like its peers, Robinhood Markets HOOD and Interactive Brokers Group IBKR. HOOD, which announced quarterly numbers on July 29, recorded a 44% year-over-year jump in transaction-based revenues. Interactive Brokers, which released second-quarter results on July 21, witnessed a 30% rise in commissions. Coming back to SNEX, the rise in its commission and clearing fees is likely to be driven by solid trading volume across different asset classes, including derivatives, FX and securities. Also, given the rise in higher interest-earning assets and securities lending activity, the company’s net interest income is expected to have increased. StoneX’s total fixed compensation and other expenses are likely to have remained elevated in the fiscal third quarter, driven by efforts to expand platform capabilities and improve customer support. Further, expansion through acquisitions is expected to have added to expenses. Our quantitative model doesn’t conclusively predict an earnings beat for StoneX this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you see below.Earnings ESP: StoneX has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Zacks Rank: It carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. StoneX shares had an impressive start to fiscal 2026. In the fiscal third quarter, the stock jumped 46.9%, outperforming the Zacks Investment Bank industry’s growth of 15%. Also, it fared better than Robinhood and Interactive Brokers. Q3 2026 Price Performance Image Source: Zacks Investment Research Now, let’s look at the value StoneX offers investors at current levels. Currently, SNEX is trading at 4.78X 12-month trailing price/tangible book (P/TB), above the industry’s P/TB TTM multiple of 3.35X. Hence, the stock is trading at a premium compared with the industry. P/TB TTM Image Source: Zacks Investment Research StoneX stock is trading at a discount to Robinhood, while being expensive compared with Interactive Brokers. At present, Robinhood and Interactive Brokers have a P/TB TTM of 8.99X and 1.78X, respectively. StoneX serves a diversified base of commercial, institutional and retail clients through commodity risk management, derivatives, securities execution, foreign exchange, clearing, physical commodities and cross-border payments. It supports more than 80,000 institutional, commercial and payments clients and over 400,000 self-directed retail accounts across nearly 180 countries.Targeted acquisitions have expanded StoneX’s scale, product capabilities and geographic reach across commodities, wealth management, clearing, investment banking, payments, fixed income, metals and agricultural brokerage. The company is also deploying AI-enabled automation to improve processing efficiency, reconciliation, client service and software development.StoneX’s diversified and volatility-sensitive business model generates revenues from commissions, spreads, fees and interest income. As of March 31, 2026, average client equity and sweep balances totaled nearly $15.2 billion, supporting recurring income. Sustained market volatility, higher client activity and the integration of acquired businesses should drive further revenue growth.On the other hand, StoneX faces margin and earnings risks from declining Payments revenue per million, volatile Securities pricing and sensitivity to interest-rate and mark-to-market movements. Rising compensation, operating expenses and bad-debt provisions could further pressure profitability. Though hedging, higher transaction volumes and low relative credit losses provide some protection, unfavorable rate moves, persistent spread compression, elevated client leverage and market volatility may keep quarterly earnings uneven and limit operating leverage. Although StoneX’s fiscal third-quarter revenues are expected to have increased, the overall setup appears unfavorable amid rising cost pressures and a premium valuation.Investors may be better off waiting for the quarterly results and management’s commentary on the performance and industry trends. Existing shareholders may hold the stock, but fresh positions seem unwarranted ahead of the earnings release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report StoneX Group Inc. (SNEX) : Free Stock Analysis Report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research