0000913760-26-000031
SEC filingRecord net operating revenues and net income driven by acquisitions and heightened market volatility.
For the three months ended March 31, 2026, StoneX Group Inc. reported record net operating revenues of $1,566.8 million, up 70% from $956.0 million in the prior year, and net income of $174.3 million, up 143% from $71.7 million. Diluted earnings per share rose to $2.07 from $0.94. The revenue growth was driven by strong performances across all operating segments, with significant contributions from the RJO acquisition (which added $213.5 million in operating revenues) and heightened market volatility linked to the U.S.-Iran conflict and rising metals prices. Total operating revenues increased 64% to $1,566.8 million, with principal gains up 56%, commission and clearing fees up 112%, and interest income up 49%. Net operating revenues (after transaction-based clearing expenses, introducing broker commissions, and interest expense) grew 70% to $829.1 million. Variable compensation and benefits increased 69% to $248.5 million, but as a percentage of net operating revenues remained stable at 30%. Total non-interest expenses rose 54% to $599.3 million, including $12.4 million in bad debts (versus $0.1 million in prior year) and $11.1 million in severance related to RJO integration. The effective tax rate was 23%, down from 26% in the prior year.
All four operating segments delivered revenue growth. The Commercial segment saw operating revenues more than double (+115%) to $537.6 million, driven by a 162% surge in physical contracts (notably precious metals up $116.1 million) and a 112% increase in listed derivatives. Net operating revenues rose 111% to $410.2 million, and segment income increased 151% to $244.3 million. The Institutional segment reported operating revenues of $868.4 million, up 55%, with listed derivatives up 199% on a 57% increase in contract volumes and a 64% higher rate per contract. Securities ADV grew 35%, but RPM declined 3%. Segment income increased 40% to $120.9 million. The Self-Directed/Retail segment saw operating revenues up 16% to $106.5 million, led by FX/CFD contracts (+12% on higher ADV and RPM) and securities (+23% from acquisitions). Net operating revenues grew 15% to $72.4 million, and segment income rose 40% to $30.2 million. The Payments segment posted operating revenues of $56.0 million, up 11%, with ADV growth of 19% partially offset by a 7% decline in RPM. Segment income increased 30% to $31.8 million.
The MD&A does not provide explicit forward guidance but highlights the potential impacts of global instability, new tariffs, and changes to existing tariffs on future financial results. Management notes the successful integration of the RJO and Benchmark acquisitions and the continued focus on maintaining a variable cost model. The text references ongoing investments in technology platforms to drive efficiency. No specific revenue or earnings outlook is given.
As of March 31, 2026, StoneX Group Inc. reported total assets of $53.6 billion, a significant increase from $45.3 billion at September 30, 2025. Cash and cash equivalents stood at $2.12 billion, up from $1.61 billion. Financial instruments owned, at fair value, increased to $11.26 billion from $8.60 billion, reflecting growth in trading inventory. Total debt, including payables to lenders under loans ($564.8M), senior secured borrowings ($1.16B), and other credit facilities, amounted to approximately $1.73 billion. Shareholders' equity rose to $2.70 billion from $2.38 billion, driven by net income of $313.3 million for the six-month period.
The filing does not disclose specific purchase commitments or contractual obligations in a structured format. However, Note 11 (Commitments and Contingencies) details legal proceedings, including a FINRA arbitration award resulting in a net payment of $1.9 million to BTIG, which was paid in March 2026. The Company also received subpoenas from the DOJ and SEC related to the BTIG matter, with the SEC concluding its investigation without recommending enforcement. No material loss contingencies were accrued beyond immaterial amounts.
During the six months ended March 31, 2026, the Company did not repurchase any shares or pay dividends. Capital expenditures totaled $36.5 million, primarily for property and equipment. Debt activity included a net decrease of $215.9 million in payables to lenders under loans, repayment of a $6.3 million note payable, and no new debt issuance. The Company issued $625.0 million in 6.875% Senior Secured Notes due 2032 in July 2025, which are reflected in the current period's borrowings. Share-based compensation expense was $28.0 million, and the Company exercised stock options worth $8.6 million.
Segment data (Note 18) reveals strong performance across all segments. The Commercial segment generated $44.73 billion in total revenues and $244.3 million in segment income, up from $97.2 million in the prior year quarter. Institutional segment income rose to $120.9 million from $86.5 million. Self-Directed/Retail segment income increased to $30.2 million from $21.5 million, and Payments segment income grew to $31.8 million from $24.5 million. Geographic revenue breakdown shows the Middle East and Asia as the largest region at $41.4 billion, followed by the United States at $2.75 billion, Europe at $1.42 billion, and South America at $183.4 million for the three months ended March 31, 2026.
The company generated $1,536.9 million in operating cash flow for the six months ended March 31, 2026, reversing an operating cash outflow of ($632.3) million in the prior-year period. Net income increased to $313.3 million (from $156.8 million), providing a solid base, but the primary driver of operating cash flow was large, favorable working capital movements, particularly a $2,887.6 million increase in payables to clients and $3,823.5 million in securities sold under agreements to repurchase. These were partially offset by outflows from securities purchased under agreements to resell ($4,875.7 million) and financial instruments owned ($2,664.8 million).
Capital expenditures (capex) were $36.5 million, up from $28.9 million, representing a modest capex intensity of 2.4% of operating cash flow. Free cash flow (operating cash flow less capex) was $1,500.4 million, fully covering zero reported share repurchases and dividends.
No significant tax or debt repayment anomalies were noted; cash paid for interest increased to $935.4 million from $635.1 million, reflecting higher financing activity. The cash flow profile is heavily influenced by the company’s broker-dealer operations, leading to large swings in short-term receivables and payables. Overall, cash generation is strong but dependent on continued favorable working capital dynamics.