StoneX Group Inc. (SNEX) Q4 2025 Earnings Call Transcript
Net Income (Q4 FY 2025) $85.7 million, a 12% growth year-over-year. Reasons for change include strong performance across segments and acquisitions like R.J. O'Brien.
Diluted Earnings Per Share (EPS) (Q4 FY 2025) $1.57, a 1% growth year-over-year. The slower growth compared to net income is due to additional shares issued for the R.J. O'Brien acquisition.
Operating Revenues (Q4 FY 2025) $1.2 billion, up 31% year-over-year. Growth driven by increased transactional volumes and contributions from acquisitions like R.J. O'Brien.
Net Operating Revenues (Q4 FY 2025) Up 29% year-over-year. Growth attributed to increased interest and fee income and contributions from acquisitions.
Fixed Compensation and Other Expenses (Q4 FY 2025) Up 24% year-over-year. Increase driven by acquisition-related costs, including R.J. O'Brien and Benchmark.
Professional Fees (Q4 FY 2025) Increased by $12.2 million year-over-year, primarily due to $8 million in investment banking fees related to acquisitions.
Acquisitions' Contribution to Pretax Net Income (Q4 FY 2025) R.J. O'Brien contributed $22.1 million, and Benchmark contributed $2.4 million.
Operating Revenues from Listed Contracts (Q4 FY 2025) Increased by $89.4 million (76%) year-over-year, with R.J. O'Brien contributing $89.5 million.
Operating Revenues from OTC Derivatives (Q4 FY 2025) Increased by 27% year-over-year, driven by higher transactional volumes.
Operating Revenues from Physical Contracts (Q4 FY 2025) Increased by 24% year-over-year, driven by a $19.5 million increase in agricultural and energy revenues, partially offset by a $6.8 million decline in precious metals revenues.
Securities Operating Revenues (Q4 FY 2025) Up 26% year-over-year, driven by a 25% increase in volumes and a 23% increase in rate per million.
Payments Revenues (Q4 FY 2025) Up 8% year-over-year, but down 3% sequentially, primarily due to a decline in rate per million.
FX CFD Revenues (Q4 FY 2025) Down 34% year-over-year, driven by a 7% decline in ADV and a 32% decline in rate per million due to low FX market volatility.
Interest and Fee Income on Client Balances (Q4 FY 2025) Increased by $52 million (46%) year-over-year, with R.J. O'Brien contributing $50 million.
Net Operating Revenues from Securities (Full FY 2025) Increased by $126.1 million year-over-year, driven by a 27% increase in ADV and a 9% increase in rate per million.
Net Operating Revenues from Listed Derivatives (Full FY 2025) Increased by $46.3 million year-over-year, primarily due to the acquisition of R.J. O'Brien.
Net Operating Revenues from Physical Contracts (Full FY 2025) Increased by $34.7 million year-over-year.
Net Income (Full FY 2025) $305.9 million, up 17% year-over-year. Growth driven by strong performance across segments and acquisitions.
Earnings Per Share (EPS) (Full FY 2025) $5.89, with a return on equity of 15.6%, above the 15% target.
Book Value Per Share (End of Q4 FY 2025) $45.56 per share.
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StoneX (SNEX.US) Executive Plans to Sell $4.95 Million in Common Stock via Form 144
Stock Sale Announcement: Sean O'Connor, an officer at StoneX, plans to sell 40,000 shares of its common stock on February 10, with a market value of approximately $4.95 million.
Reduction in Shareholding: O'Connor has reduced his shareholding in StoneX by 40,000 shares since February 9, 2026, with a total value of around $5 million.
StoneX Reports Strong Earnings and Stock Split Announcement
- Strong Earnings Report: StoneX's Q1 GAAP EPS of $2.50 exceeded expectations by $0.52, indicating robust performance in the market, which is likely to boost investor confidence further.
- Significant Revenue Growth: The company reported revenue of $39.03 billion, marking a 39.7% year-over-year increase, reflecting successful strategies in diversified business and market demand, potentially attracting more investor interest.
- Record Net Income: The quarterly net income reached $139 million with a quarterly ROE of 22.5%, demonstrating excellent capital efficiency, which enhances the company's long-term investment appeal.
- Stock Split Announcement: StoneX announced a three-for-two stock split aimed at increasing stock liquidity and attracting more retail investors, thereby enhancing market participation and broadening the shareholder base.
StoneX Scheduled to Announce Q1 Earnings on February 4
- Earnings Announcement Schedule: StoneX is set to announce its Q1 earnings on February 4, after market close, with a consensus EPS estimate of $1.98, reflecting investor confidence in the company's consistent profitability.
- Hedge Against Market Volatility: StoneX is viewed as a hedge against market volatility, and as uncertainty increases, investors may favor its stable financial performance, potentially boosting its stock price.
- Transformational Acquisition Impact: The confirmation of the RJO acquisition is expected to have a transformational impact on StoneX's outlook for 2026, with a synergy target of $50 million that will further enhance its competitive position in the market.
- Quant Rating Analysis: Seeking Alpha's quant rating on StoneX highlights its potential as a consistent compounder, attracting more investor attention and possibly leading to positive stock price movements.
Senate Cryptocurrency Legislation Faces Setback After Coinbase Withdraws Support
Crypto Bill Status: A proposed crypto bill aimed at establishing clear industry regulations is facing significant setbacks after Coinbase withdrew its support.
Committee Vote Delay: Senator Tim Scott has postponed a scheduled committee vote on the bill, indicating further complications in the legislative process.
Ongoing Efforts: Despite the current challenges, advocates for the bill are determined to continue fighting for its passage.
Industry Impact: The developments highlight the ongoing uncertainty and volatility within the cryptocurrency regulatory landscape.
StoneX Partners with EDG to Enhance Digital Asset Offerings
- Strategic Partnership: StoneX Digital has entered into a strategic partnership with Enhanced Digital Group, leading EDG's Series A funding round and acquiring a minority stake, aimed at expanding the scope and sophistication of their digital asset offerings.
- Market Demand Response: By integrating EDG's bespoke OTC derivatives solutions with StoneX's digital asset trading platform, both firms will provide institutional clients with more comprehensive risk management and investment strategies, addressing the growing market demand.
- Enhanced Innovation Capability: Since its launch in June 2022, StoneX Digital has focused on providing sophisticated trading tools for institutional clients, and this partnership will expedite its time to market, enhancing its competitive edge in the digital asset space.
- Industry Integration: EDG's founders noted that partnering with StoneX will strengthen their capabilities in the digital asset derivatives space, reflecting the industry trend of convergence between traditional finance and digital assets.
Trump's Capture of a Russian Oil Tanker Reveals the Limits of His Authority in the Market.
- Market Reaction: Wall Street showed little concern over the U.S. seizing a Russian oil tanker that was transporting Venezuelan oil, despite the presence of a Russian submarine.
- Stock Performance: Stocks continued to trade in a mixed manner, remaining near record highs.
- Oil Prices: The price of oil experienced a modest decline during this period.
- Geopolitical Context: The incident highlights ongoing tensions between the U.S. and Russia regarding oil and international trade.
StoneX (SNEX.US) Executive Plans to Sell $4.95 Million in Common Stock via Form 144
Stock Sale Announcement: Sean O'Connor, an officer at StoneX, plans to sell 40,000 shares of its common stock on February 10, with a market value of approximately $4.95 million.
Reduction in Shareholding: O'Connor has reduced his shareholding in StoneX by 40,000 shares since February 9, 2026, with a total value of around $5 million.
StoneX Reports Strong Earnings and Stock Split Announcement
- Strong Earnings Report: StoneX's Q1 GAAP EPS of $2.50 exceeded expectations by $0.52, indicating robust performance in the market, which is likely to boost investor confidence further.
- Significant Revenue Growth: The company reported revenue of $39.03 billion, marking a 39.7% year-over-year increase, reflecting successful strategies in diversified business and market demand, potentially attracting more investor interest.
- Record Net Income: The quarterly net income reached $139 million with a quarterly ROE of 22.5%, demonstrating excellent capital efficiency, which enhances the company's long-term investment appeal.
- Stock Split Announcement: StoneX announced a three-for-two stock split aimed at increasing stock liquidity and attracting more retail investors, thereby enhancing market participation and broadening the shareholder base.
StoneX Scheduled to Announce Q1 Earnings on February 4
- Earnings Announcement Schedule: StoneX is set to announce its Q1 earnings on February 4, after market close, with a consensus EPS estimate of $1.98, reflecting investor confidence in the company's consistent profitability.
- Hedge Against Market Volatility: StoneX is viewed as a hedge against market volatility, and as uncertainty increases, investors may favor its stable financial performance, potentially boosting its stock price.
- Transformational Acquisition Impact: The confirmation of the RJO acquisition is expected to have a transformational impact on StoneX's outlook for 2026, with a synergy target of $50 million that will further enhance its competitive position in the market.
- Quant Rating Analysis: Seeking Alpha's quant rating on StoneX highlights its potential as a consistent compounder, attracting more investor attention and possibly leading to positive stock price movements.
Senate Cryptocurrency Legislation Faces Setback After Coinbase Withdraws Support
Crypto Bill Status: A proposed crypto bill aimed at establishing clear industry regulations is facing significant setbacks after Coinbase withdrew its support.
Committee Vote Delay: Senator Tim Scott has postponed a scheduled committee vote on the bill, indicating further complications in the legislative process.
Ongoing Efforts: Despite the current challenges, advocates for the bill are determined to continue fighting for its passage.
Industry Impact: The developments highlight the ongoing uncertainty and volatility within the cryptocurrency regulatory landscape.
StoneX Partners with EDG to Enhance Digital Asset Offerings
- Strategic Partnership: StoneX Digital has entered into a strategic partnership with Enhanced Digital Group, leading EDG's Series A funding round and acquiring a minority stake, aimed at expanding the scope and sophistication of their digital asset offerings.
- Market Demand Response: By integrating EDG's bespoke OTC derivatives solutions with StoneX's digital asset trading platform, both firms will provide institutional clients with more comprehensive risk management and investment strategies, addressing the growing market demand.
- Enhanced Innovation Capability: Since its launch in June 2022, StoneX Digital has focused on providing sophisticated trading tools for institutional clients, and this partnership will expedite its time to market, enhancing its competitive edge in the digital asset space.
- Industry Integration: EDG's founders noted that partnering with StoneX will strengthen their capabilities in the digital asset derivatives space, reflecting the industry trend of convergence between traditional finance and digital assets.
Trump's Capture of a Russian Oil Tanker Reveals the Limits of His Authority in the Market.
- Market Reaction: Wall Street showed little concern over the U.S. seizing a Russian oil tanker that was transporting Venezuelan oil, despite the presence of a Russian submarine.
- Stock Performance: Stocks continued to trade in a mixed manner, remaining near record highs.
- Oil Prices: The price of oil experienced a modest decline during this period.
- Geopolitical Context: The incident highlights ongoing tensions between the U.S. and Russia regarding oil and international trade.
