StoneX's Record Revenues Highlight RJO-Driven Surge

Date of Call: Feb 5, 2026

Financials Results

• Revenue: $1.4B operating revenues, up 52% YOY and up 20% sequentially
• EPS: $2.50 per diluted share, up 48% YOY and up 59% sequentially

Business Commentary:

Record Financial Performance:

• StoneX Group Inc. reported record net operating revenues of just over $1.4 billion for Q1 2026, up 52% versus the prior year and 20% versus the immediately preceding quarter.
• The growth was driven by record net income and EPS, showcasing the power and scale of the ecosystem built by StoneX, particularly enhanced by the acquisition of R.J. O'Brien and strong performance in global metals.

Precious Metals and Institutional Segment Growth:

• The company's precious metals business generated $75 million in segment income for the quarter, which is $24 million more than it did in the entire financial year '25.
• This growth, along with a record performance in the Institutional segment, was boosted by the addition of R.J. O'Brien's institutional business and the strong demand in global metals markets.

Interest and Fee Income Increase:

• Interest and fee income earned on aggregate client float increased by 61% to $115.5 million, with the acquisition of R.J. O'Brien contributing significantly.
• The increase was due to higher average client equity and money market FDIC sweep balances, reflecting the strong client engagement and expanded operations.

RJO Integration and Cost Synergies:

• The integration of R.J. O'Brien is progressing on track, with the consolidation of non-U.S. entities completed and capital released.
• The integration is expected to yield cost synergies, with the largest part of the U.S. entity consolidation targeted to be completed by the end of fiscal year 2026.

Sentiment Analysis:

Overall Tone: Positive

• CEO reported a 'very strong start' with 'record net operating revenues, net income and EPS,' citing 'the power and the scale of the ecosystem.' He stated the integration of RJO is 'on track' and they are 'making strong progress.' The quarter saw 'record' performance in several areas including precious metals and institutional business.

Q&A:

• Question from Jeffrey Schmitt (William Blair): In the physical trading business, obviously, a really strong quarter there due to precious metals. How much of that strength came from cross-selling RJO clients? Or was that really kind of mainly volatility driven? And then just curious how that business is trending here in January, February with now that gold is pulling back?
  Response: Strength was primarily driven by heightened market interest and the successful expansion of the StoneX Bullion retail platform, not significantly from traditional RJO clients. The business continues to benefit from its unique global logistics capabilities.

• Question from Jeffrey Schmitt (William Blair): On the cost synergies, those appear to be on track or maybe you're realizing them even faster than expected. As you dig into the RJO business, I guess, are you seeing any potential upside to the $50 million? Or is it still kind of too early to tell?
  Response: Management is still affirming the $50 million synergy target, with progress on integration milestones expected to continue through fiscal 2026 and 2027.

• Question from Jeffrey Schmitt (William Blair): And then just one quick one on the institutional segment. The securities business there had a great quarter. And you mentioned moving into U.S. stocks in the market maker business. I'm just curious how much of the mix that is? And maybe if you could talk about that. The rate per million there, I know you've talked about that inflecting up, but are we at a point where we're at a better run rate there? Or is there more upside to that?
  Response: Growth in the institutional securities business is still early-stage and smaller relative to the entire market. The rate per million has returned to a more normalized level around 320-330, up from a low inflection point a year ago.

• Question from Daniel Fannon (Jefferies): Just wanted to follow up on the environment. And obviously, you've seen a lot of movement in the underlying, whether it's gold, silver, all this stuff. So I was just curious about the health of the customer kind of post quarter, if there's been any changes in losses or as you just think about activity levels still being good and just the environment being constructive versus maybe this point in time, we've seen bad volatility. And so I just want to understand if this is still a constructive environment for you guys.
  Response: Increased volatility benefits the business, but extreme volatility can stress clients. Management engages closely with clients to manage positions and ensure they have sufficient liquidity, aiming to maintain constructive relationships.

• Question from Daniel Fannon (Jefferies): And then just on the R.J. O'Brien deal in the context of what you see as the kind of most near-term kind of cross-sell opportunity in the context of some of -- there weren't numbers that were outlined when the deal was announced, but obviously, you've talked about multiples in size versus the expense synergies. So I just want to, again, if you could reprioritize kind of where you see those opportunities and what we should see as we think about the next couple of quarters.
  Response: Cross-sell opportunities are being pursued through a dual approach of integration and product expansion. Early wins include introducing StoneX's foreign exchange capabilities to RJO clients. Revenue synergies are expected but not yet quantified, with optimism about future potential.

• Question from Daniel Fannon (Jefferies): And then Bill, just in the context of the expenses and since we -- this is the full quarter with both the last couple of acquisitions in there. As we think about the run rate and the kind of go forward, anything to normalize based on integration or other things from an expense perspective or areas where you think the growth and/or movement of -- at a line item level might be most?
  Response: Expenses are expected to see a normal tick-up in Q2 due to annual merit increases and benefit resets. Beyond that, synergies should drive a downtrend in non-variable compensation and other costs over the longer term.

• Question from Lukas Jaeger (Liberty One Investment Management): So long time listener, first-time caller. I have a question in regards to sort of the pre-existing business of StoneX not really focused on the R.J. O'Brien and Benchmark acquisitions. This time last year, some of the discussion was within the securities business and sort of the sort of client group in the active ETF space sort of adding an additional piece of growth. And I guess I'm just sort of further looking for a discussion on some client groups that are going to come into the existing pre-existing StoneX client business that will kind of show sustained interest within sort of your risk management contracts and trading services?
  Response: New opportunities are emerging, such as deeper relationships with regional U.S. community banks, where StoneX's broad product ecosystem acts as a door opener. The company is also seeing rapid growth in unexpected areas like fixed income in APAC due to a lack of local alternatives.

• Question from Lukas Jaeger (Liberty One Investment Management): Moving on to sort of the FX and sort of CFD area of the business. I'm kind of just curious, so I saw that the rate per million is down around 30% compared to last year. And I was hoping to unpack sort of the reasons for that. My understanding would probably be that's largely because of some lower volatility. So I think the CVIX like average from this period compared to the last period is down around 15%. But I'm wondering if you could have further unpacked that rate per million figure just so that I can understand it.
  Response: The decline in rate per million is due to a normalized environment following an exceptionally strong prior-year quarter driven by high retail spreads. Current rates are in line with expectations, with FX volatility remaining muted.

Contradiction Point 1

FX/CFD Rate per Million Environment

Contradiction on whether the current FX/CFD rate per million is a normalized run rate or a return to an outlier level.

What factors contributed to the ~30% YoY decline in the FX/CFD rate per million, including potential impacts of lower volatility (e.g., CVIX down)? - Lukas Jaeger (Liberty One Investment Management)

2026Q1: The current environment is more in line with expectations, with a normalized rate hovering around the 300-320 range. - [William Dunaway](CFO)

Are there factors other than volatility affecting the retail segment's rate per million? - Daniel Fannon (Jefferies LLC, Research Division)

2025Q4: The previous year's quarter was an outlier, representing the highest rate per million since the GAIN Capital acquisition in 2020. - [William Dunaway](CFO)

Contradiction Point 2

RJO Cost Synergy Realization Timeline

Contradiction on the timeline for achieving the dominant wave of cost synergies from the RJO acquisition.

Is there potential to exceed the $50 million target for cost synergies from the RJO acquisition, or is it too early to determine? - Jeffrey Schmitt (William Blair & Company L.L.C., Research Division)

2026Q1: The U.S. entity consolidation is targeted for completion by the end of fiscal 2026, with most synergies expected to be in the run rate by the end of fiscal 2026, and the remainder captured in fiscal 2027. - [William Dunaway](CFO)

How sustainable is the significant quarter-over-quarter increase in the securities rate per million? - Daniel Fannon (Jefferies LLC, Research Division)

2025Q4: The dominant savings wave will come after the U.S. FCM merger in late Q4 2026. - [Abigail Perkins](CFO)

Contradiction Point 3

Market Volatility Outlook and Business Environment

Contradiction on the expected level of market volatility for the near-term business environment.

How is the customer base faring amid recent market volatility in gold and silver, and have there been changes in client losses or activity levels? Is the environment still constructive? - Daniel Fannon (Jefferies LLC)

2026Q1: Increased volatility benefits StoneX's ecosystem... The company aims to prevent clients from being forced to unwind positions at unfavorable times. They welcome volatility but manage the risks it poses to clients. - [Philip Smith](CEO)

How has the start of 2023 compared to the 2022 backdrop? - Daniel Fannon (Jefferies)

2023Q1: The environment is expected to have moderately elevated volatility, higher than pre-pandemic but lower than the intense levels of the past two years... This combination... is viewed as a positive environment for the next 12-18 months... - [Sean O’Connor](CEO)

Contradiction Point 4

Revenue Capture Rate for Retail FX/CFD Business

Contradiction on whether the business is trending towards a normalized revenue capture rate.

What is the current mix of the institutional segment's securities business, particularly in U.S. stocks, and is the rate per million improving or expected to increase further? - Jeffrey Schmitt (William Blair & Company L.L.C.)

2026Q1: The rate per million for securities is likely getting back to a more normalized run rate.... The current environment is more in line with expectations, with a normalized rate hovering around the 300-320 range. - [William Dunaway](CFO)

How are you thinking about fixed expenses for 2023? - Daniel Fannon (Jefferies)

2023Q1: The long-term average revenue capture rate for Retail (FX/CFDs) is around $90-$95 per million. ... Expect revenue capture to trend back toward the mean of ~$95-$100 over the coming quarters as market conditions stabilize. - [Sean O’Connor](CEO)

Contradiction Point 5

Commercial Segment Performance Drivers

Different primary drivers cited for commercial segment underperformance in similar volatility environments.

How is market volatility (e.g., gold, silver) impacting the customer base's health, client losses/activity levels, and the overall environment? - Daniel Fannon (Jefferies LLC)

2026Q1: Increased volatility benefits StoneX's ecosystem, but extreme volatility can stress clients. The close relationships allow for daily engagement to help clients manage their hedges. - [Philip Smith](CEO)

Can you provide more detail on the commercial segment's weakness in trading volumes and whether the decline in hedging activity was unexpected given the higher-than-typical volatility? - Jeffrey Paul Schmitt (William Blair & Company L.L.C.)

2025Q3: The decline was primarily driven by tariff-related uncertainties impacting physical commodity contracts and diminished volatility in agricultural markets, which reduced revenue capture on OTC derivatives. - [Sean Michael O'Connor](CEO), [William John Dunaway](CFO)