Research Reports

Prepared Highlights

Q4 FY2025 net income was a record $85.7 million, with diluted EPS of $1.57 (12% net income growth; EPS grew 1% due to ~3.1M shares from RJO acquisition) (CFO).
Q4 operating revenues were just over $1.2 billion, up 31% YoY and 17% sequentially (CFO).
Q4 net operating revenues (net of interest expense, IB commissions, clearing fees) were up 29% YoY and 20% sequentially (CFO).
Q4 pretax acquisition-related charges: $9.3 million ($1.3M bridge loan financing, $8M investment banking fees), equating to ~$0.13 per diluted share (CFO).
RJO and Benchmark contributed $22.1 million and $2.4 million in pretax net income (excluding acquired intangible amortization) in Q4 (CFO).
Full FY2025: net income $305.9 million (record, up 17%), EPS $5.89, ROE 15.6% (above 15% target) (CFO).
Q4 book value per share: $45.56 (CFO).
Q4 segment highlights:
- Commercial: net operating revenues +25% YoY (+$42.9M); segment income +25% YoY (CFO).
- Institutional: record net operating revenues and segment income, +67% and +73% YoY respectively (CFO).
- Self-directed retail: net operating revenues -35% YoY; segment income -51% YoY (CFO).
- Payments: net operating revenues +7% YoY; segment income +21% YoY (CFO).
Q4 interest and fee income on client float (net) increased $28.8M to $112.2M; RJO contributed $32.5M (CFO).
Estimated annualized net income sensitivity to a 100bp change in short-term rates: $53.8 million or $1.02 per share (CFO).
RJO integration: $20 million in annualized cost savings realized within 4 months of close; target of $50 million run-rate cost synergies within 24 months (IR).
Capital synergies: $20M–$30M expected from U.K. and broker-dealer integrations in Q2 FY2026; additional north of $30M from U.S. FCM merger in Q4 FY2026 (IR).
RJO average client equity increased from $5.5B to $5.8B since close; combined client equity at quarter-end: $13.7 billion (record) (IR).

Official Guidance

No explicit forward guidance (next quarter or full-year ranges) provided in prepared remarks.

Mgmt Quotes

"This quarter was a record for us to close out what was, in fact, a record 2025." (Sean O'Connor, Executive Vice Chairman)
"We have managed to exceed our ROE targets despite our stockholders' equity increasing by 72% over the last 2 years." (Sean O'Connor)
"We are very opportunistic around acquisitions... we pride ourselves on being very disciplined and we can afford to be disciplined because we have such a strong organic growth track ahead of us." (Sean O'Connor)
"We are confident that we will achieve our targets of $50 million in run rate cost synergies within 24 months of deal close." (Abigail Perkins, IR)
"The common thread across all our acquisitions is the exceptional collaboration between company leadership teams and the exceptional work being performed by a talented and dedicated employees." (Sean O'Connor)

Prepared Metrics

Metric	Value	Speaker/Context
Q4 Net Income	$85.7M	CFO
Q4 Diluted EPS	$1.57	CFO
Q4 Operating Revenues	~$1.2B	CFO
Q4 Net Operating Revenue Growth (YoY)	+29%	CFO
Full FY Net Income	$305.9M	CFO
Full FY Diluted EPS	$5.89	CFO
Full FY ROE	15.6%	CFO
Q4 Book Value Per Share	$45.56	CFO
Q4 Net Interest & Fee Income (client float)	$112.2M	CFO
Annualized Net Income Sensitivity (per 100bp rate change)	$53.8M / $1.02 per share	CFO
RJO Cost Synergies Realized (annualized, 4 months post-close)	~$20M	IR
RJO Cost Synergy Target (run-rate, within 24 months)	$50M	IR
Combined Client Equity (end of Q4)	$13.7B	IR

Q&A Batch (1-2 of 2)

Q1 — Jeffrey Schmitt

Topic: RJO cross-selling progress and precious metals weakness
Key points:
- Cross-selling is going "as well as expected"; RJO shows "tremendous interest" in new products; fixed-income teams already co-pitching and generating revenue; some IBs have signed documentation and a few trades have occurred.
- No hard revenue synergy target will be provided because tracking is "really hard to do" and revenue often splits across groups; management prefers to watch overall revenue uptick.
- Precious metals business was hurt by CME tariff dislocation; delivering metal into CME added costs and eroded profitability; ag volatility remained muted due to tariff disruptions.
Mgmt stance: Bullish on cross-selling (tangible signs of new clients and increased activity); cautious on precious metals (dislocation persists, profitability eroded).

Q2 — Daniel Fannon

Topic: Securities rate per million, expense synergies, and interest rate hedging
Key points:
- Rate per million improved QoQ due to better equity market conditions, fixed-income volatility, and prime brokerage contribution; management believes the "trough" from expanding into lower-margin/higher-volume products is now behind.
- Expense synergies: $20 million annualized run rate achieved; next uptick expected in spring (U.K. combination); final wave post U.S. integrations (late Q4 2026); $50 million total synergy target remains unchanged, management is "pretty comfortable" with it.
- Interest rate hedging: will continue to be active, targeting 2–3 year window with swaps as "insurance policy"; RJO’s portfolio management capabilities expected to help exceed 1-month Treasury benchmark.
Mgmt stance: Neutral-to-bullish on rate per million (trough reached, now market-driven); neutral on synergies (no change to $50M target); cautious on rate cuts (hedging to put a floor, but not hedging all).