Executive Summary

Q3 FY25 delivered resilient results: operating revenues $1.024B (+12% YoY), net operating revenues $488.3M (+4% YoY), net income $63.4M (+2% YoY), and diluted EPS $1.22 (-2% YoY), with EPS reduced by ~$0.12 from $8.9M acquisition-related charges (bridge financing $6.5M, professional fees $2.4M) .
Mix shift favored Institutional (record net operating revenues and segment income) led by equities; Self-Directed/Retail was strong. Commercial lagged on diminished commodity volatility, tariff uncertainty, and higher metals-related interest costs .
Strategic catalysts: closed R.J. O’Brien (RJO) on 7/31 (largest non-bank FCM; ~~$766M revenue/~~$170M EBITDA in 2024; targeted ~$50M expense saves and ≥$50M capital synergies; ~+$6B client float; EPS/ROE accretive) and closed The Benchmark Company (investment banking/equity research) on 7/31–8/5 .
On S&P Global “Primary EPS” basis, Q3 EPS was above consensus (1.45 actual vs 1.39 est, +$0.06); Street revenue consensus not meaningful for gross “total revenues” at SNEX. Expect estimate revisions to reflect Institutional outperformance and Commercial headwinds (S&P Global data)*.

What Went Well and What Went Wrong

What Went Well
- Record Institutional performance: net operating revenues $200.1M (+27% YoY) and segment income $87.4M (+41% YoY), driven by securities (net operating revenues $119.8M, +48% YoY; RPM +15% YoY) and elevated ADV (+25% YoY) .
- Self-Directed/Retail scaling: net operating revenues $80.6M (+18% YoY) and segment income $41.2M (+49% YoY), with FX/CFD ADV up 34% YoY (RPM stable to slightly down), showcasing operating leverage .
- Strategic expansion closed: “This is a proud moment… positions [StoneX] as the counterparty of choice” (RJO); Benchmark broadens capital markets capabilities and distribution .
What Went Wrong
- Commercial softness: net operating revenues -24% YoY to $168.3M, with physical contracts -40% YoY and listed/OTC pressure (lower ag volatility; tariff uncertainty disrupted cross-border physical flows) .
- EPS impact from deals financing: $8.9M acquisition costs cut diluted EPS by ~$0.12 in the quarter .
- Overhead and professional fees rose: overhead costs +9% YoY; professional fees within overhead +38% YoY, reflecting integration/activity levels .

Financial Results

Metric	Q1 2025	Q2 2025	Q3 2025
Operating Revenues ($USD Millions)	$944.3	$956.0	$1,024.3
Net Operating Revenues ($USD Millions)	$492.1	$487.3	$488.3
Net Income ($USD Millions)	$85.1	$71.7	$63.4
Diluted EPS ($)	$2.54	$1.41	$1.22
ROE (%)	19.5%	15.7%	13.1%

Segment operating revenues (YoY and sequential context)

Segment Operating Revenues ($M)	Q3 2024	Q2 2025	Q3 2025
Commercial	262.2	248.6	225.8
Institutional	508.9	561.2	626.0
Self-Directed/Retail	96.2	93.4	114.2
Payments	51.1	50.3	53.3
Corporate	8.3	16.7	15.7
Eliminations	(13.0)	(14.2)	(10.7)
Total Operating Revenues	913.7	956.0	1,024.3

Net operating revenues by product

Net Operating Revenues ($M)	Q3 2024	Q2 2025	Q3 2025
Listed Derivatives	65.3	60.3	56.9
OTC Derivatives	66.2	60.2	58.8
Securities	86.2	120.8	125.5
FX/CFD Contracts	67.6	62.5	77.4
Payments	47.5	46.5	49.1
Physical Contracts	55.8	48.6	33.3
Interest, net / Fees on Client Balances	86.4	74.5	73.9
Other	20.4	22.5	24.3
Corporate	(26.9)	(8.6)	(10.9)
Total	468.5	487.3	488.3

Key KPIs and operating metrics

KPI	Q1 2025	Q2 2025	Q3 2025
Securities ADV (millions)	$8,733	$8,915	$9,219
Securities RPM	$237	$279	$276
FX/CFD ADV (millions)	$11,685	$11,539	$12,190
FX/CFD RPM	$133	$97	$111
Listed Derivatives Contracts (000s)	53,180	61,153	56,759
Listed Derivatives RPC	$2.03	$2.02	$2.13
Payments ADV (millions)	$84	$77	$80
Payments RPM	$10,414	$10,526	$10,614
Avg Money Market/FDIC Sweep Balances (millions)	$1,197	$1,283	$1,208

Guidance Changes

StoneX did not issue formal quantitative revenue/EPS margin guidance; management discussed acquisition accretion and synergy timing/targets.

Metric	Period	Previous Guidance	Current Guidance	Change
RJO deal accretion	Starting Q4 FY25	N/A	“Materially accretive” to EPS and ROE; enhances margins	New
RJO expense synergies	Integration window	N/A	Target ~$50M expense savings; ~40–45% of synergies (International) in 3–6 months; US in 9–12 months	New
RJO capital synergies	Integration window	N/A	≥$50M capital synergies via consolidation	New
Client float uplift	Ongoing	N/A	~+$6B client float from RJO	New
Benchmark contribution	Ongoing	N/A	Accretive; integrated into Institutional/Securities; small single-digit $M near term	New
Interest-rate sensitivity	Annualized	Prior framework	±100 bps ≈ ±$27M net income or ~$0.54/share annualized	Maintained
Corporate funding/notes	Q3–Q4 FY25	N/A	Bridge fees $6.5M in Q3; issued Senior Secured Notes due 2032 on 7/8/25	New

Earnings Call Themes & Trends

Topic	Q1 2025 (Dec-24 qtr)	Q2 2025 (Mar-25 qtr)	Q3 2025 (Jun-25 qtr)	Trend
Macro/volatility vs rates	Low vol; strong client engagement	Increased vol offset lower short rates	Tariff uncertainty hurt Commercial physical; ag vol muted; lower short rates reduced client-fee income	Volatility mixing positive; tariffs weigh on Commercial
Institutional Equities	Strong securities growth; RPM lower YoY	Securities +25% YoY; RPM +17% YoY	Securities net op rev +48% YoY; ADV +25%; RPM +15%; record segment results	Accelerating
RJO integration	LOI/announcement stage	Definitive agreement; accretive expectations	Closed 7/31; synergy phasing 3–6m (Intl), 9–12m (US); accretive to EPS/ROE	Execution underway
Benchmark (IB/research)	Announced 3/11 [27]	Pending	Closed 8/5; slots into Institutional/Securities	Adds IB/research
Retail multi-asset roadmap	Not highlighted	Not highlighted	Retail expansion to securities/listed derivatives starts late FY25/into FY26; phased rollout	Product expansion
Custody/Clearing & Digital assets	Not highlighted	Not highlighted	Highlighted as core; Q4 launch of regulated digital custody/lending/collateral tools; >$60B client assets	Strategic focus
Interest-rate sensitivity	Not highlighted	Not highlighted	±100 bps ≈ ±$27M NI annualized	Risk lever articulated
Payments	RPM pressured	RPM -15% YoY; ADV +20%	RPM -6% YoY; ADV +16% YoY; strategic BMG partnership (8/26)	Stable; platform wins

Management Commentary

“Significant growth in our Institutional segment… and strong performance in Self-Directed/Retail… offset declines in our Commercial businesses due to diminished commodity volatility and tariff related uncertainty… $8.9 million in acquisition-related charges… reduced approximately $0.12 in diluted EPS” — Sean O’Connor .
“For the quarter net operating revenues increased 4% principally from securities (+$39.3M) and FX/CFDs (+$9.8M), partially offset by declines in physical contracts (-$22.5M), listed (-$8.4M) and OTC (-$7.4M). Interest/fee income on client balances decreased $12.5M.” — CFO Bill Dunaway .
“RJO… transformational… expected to be materially accretive… We issued ~~3.1M shares (~~+6% share count)… integration synergies: 3–6 months international; 9–12 months US.” — Sean O’Connor .
“In Q4, we will broaden our digital asset custody capabilities to include regulated custody for cryptocurrencies, tokenized securities, stablecoins, and real world assets” — Charles Lyon .

Q&A Highlights

Commercial weakness drivers: tariff uncertainty weighed on physical flows; OTC (ag) spread capture down amid muted ag volatility; added interest expense moving metals cross-border .
RJO revenue synergies: expected to be multiples of cost synergies over time, focused on cross-selling OTC/structured/physical/logistics to RJO’s commercial/IB clients and combining interest-rate hedging franchise with StoneX fixed income .
Retail roadmap: infrastructure rebuild completing toward late FY25; phased rollout of securities/listed derivatives for retail through FY26; futures derivatives already expanding .
Integration phasing: 40–45% of synergies (International) achievable in 3–6 months; US migration 9–12 months due to complexity and client touchpoints .
Banks in FCMs: no notable posture change or renewed push by large banks into these activities observed .

Estimates Context

EPS: On S&P Global’s “Primary EPS” basis, Q3 FY25 actual 1.45 vs consensus 1.39 (beat by $0.06); Q2 actual 1.46 vs 1.32 (beat by $0.14); Q1 consensus 1.447 (actual Primary EPS not shown in feed). GAAP diluted EPS reported by the company was $1.22 in Q3, impacted by $0.12 acquisition-related costs; differences versus “Primary EPS” reflect differing methodologies/adjustments . Values retrieved from S&P Global*.
Revenue: S&P “Revenue” reflects gross total revenues (dominated by physical commodity sales) and did not provide a consensus mean for Q3 in feed; Street typically evaluates SNEX on net operating revenues; thus revenue estimate comparisons are not meaningful this quarter . Values retrieved from S&P Global*.

EPS vs S&P Global Consensus (Primary EPS)*

Metric	Q1 2025	Q2 2025	Q3 2025
Primary EPS Consensus Mean (Estimate)	1.4467*	1.32*	1.39*
Primary EPS (Actual)	—	1.46*	1.45*

Note: Company-reported diluted EPS were $2.54 (Q1), $1.41 (Q2), and $1.22 (Q3) .

Key Takeaways for Investors

Mix tailwind: Institutional (equities) strength and Retail scaling offset Commercial softness; with RJO/Benchmark, the platform tilts further toward fee/flow businesses with higher durability .
Tariff risk is the main near-term headwind for Commercial physical and OTC ag; watch policy clarity and ag volatility for a rebound .
Accretion/setup into Q4: RJO and Benchmark closed post-quarter; synergy capture should start contributing in Q4 with faster International realization and US lag; cost/capital synergy targets are tangible .
Rate sensitivity remains a lever: ±100 bps ≈ ±$27M NI annualized; however, lower short-term rates pressured client-balance fee income in Q3; balances grew 10% YoY, partly cushioning rates .
Balance sheet scale expanded (repo/securities lending growth); watch interest expense trajectory as fixed income and securities financing scale .
Retail roadmap into FY26 (adding securities/listed) and custody/digital assets launch in Q4 support multi-asset cross-sell and ecosystem stickiness .
Near-term estimate implications: Raise Primary EPS near term (beat), but temper Commercial expectations; securities/retail trajectory and synergy cadence should drive medium-term upward bias (S&P Global data; company commentary)*.

Appendix: Additional Details and Data Points

Interest expense detail: Total interest expense $391.4M (+22% YoY) with growth in fixed income securities and securities borrowing driving the increase; corporate funding included $6.5M bridge loan fees (RJO financing) .
Overhead: Overhead costs and expenses $140.4M (+9% YoY); professional fees within overhead +38% YoY .
Balance sheet: Securities purchased under agreements to resell $8.159B (vs $5.202B Sep-24); securities sold under agreements to repurchase $13.375B (vs $8.581B); stockholders’ equity $1.979B; NAV/share $40.36 .

Footnote: *Values retrieved from S&P Global.

StoneX Group Inc. (SNEX)·Q3 2025 Earnings Summary