StoneX Group Inc. Reports Fiscal 2025 First Quarter Financial Results

Record Quarterly Net Operating Revenues of $492.1 million, up 17% Record Quarterly Net Income of $85.1 million, ROE of 19.5% Record Quarterly Diluted EPS of $2.54 per share, up 19% Announces a Three-for-Two Stock Split NEW YORK, Feb. 05, 2025 (GLOBE NEWSWIRE) -- StoneX Group Inc. (the “Company”; NASDAQ: SNEX), a global financial services network that connects companies, organizations, traders and investors to the global market ecosystem through a unique blend of digital platforms, end-to-end clearing and execution services, high touch service and deep expertise, today announced its financial results for the fiscal year 2025 first quarter ended December 31, 2024. In addition and as discussed further below, on February 5, 2024, the Company’s Board of Directors approved a three-for-two split of the Company’s common stock. Sean O’Connor, the Company’s Executive Vice-Chairman of the Board, stated, “We achieved another record quarterly result, building on momentum realized through fiscal 2024, reporting net income of $85.1 million, a 23% increase over the prior year quarter, diluted EPS of $2.54, and a 19.5% return on equity for the first fiscal quarter of 2025. We experienced continued strong client engagement with increased volumes across all operating segments and products despite relatively low volatility.” StoneX Group Inc. Summary Financials Consolidated financial statements for the Company will be included in our Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission (the “SEC”). Upon filing, the Quarterly Report on Form 10-Q will also be made available on the Company’s website at www.stonex.com. Three Months Ended December 31,(Unaudited) (in millions, except share and per share amounts) 2024 2023 % ChangeRevenues: Sales of physical commodities$27,051.1 $18,820.9 44%Principal gains, net 308.9 293.8 5%Commission and clearing fees 149.3 129.7 15%Consulting, management, and account fees 47.8 38.5 24%Interest income 378.2 290.1 30%Total revenues 27,935.3 19,573.0 43%Cost of sales of physical commodities 26,991.0 18,788.8 44%Operating revenues 944.3 784.2 20%Transaction-based clearing expenses 86.5 74.3 16%Introducing broker commissions 44.3 39.1 13%Interest expense 306.2 236.0 30%Interest expense on corporate funding 15.2 13.2 15%Net operating revenues 492.1 421.6 17%Compensation and other expenses: Variable compensation and benefits 133.3 121.9 9%Fixed compensation and benefits 119.2 96.2 24%Trading systems and market information 20.0 18.7 7%Professional fees 19.0 15.7 21%Non-trading technology and support 19.7 16.9 17%Occupancy and equipment rental 13.0 7.7 69%Selling and marketing 12.0 11.7 3%Travel and business development 8.4 7.1 18%Communications 2.1 2.2 (5)%Depreciation and amortization 15.7 11.2 40%Bad debts (recoveries), net 1.8 (0.3) n/mOther 16.7 16.9 (1)%Total compensation and other expenses 380.9 325.9 17%Other gains 5.7 — n/mIncome before tax 116.9 95.7 22%Income tax expense 31.8 26.6 20%Net income$85.1 $69.1 23%Earnings per share:(1) Basic$2.66 $2.20 21%Diluted$2.54 $2.13 19%Weighted-average number of common shares outstanding:(1) Basic 30,976,042 30,233,107 2%Diluted 32,444,772 31,274,307 4% Return on equity (“ROE”)(1) 19.5% 19.3% ROE on tangible book value(1) 20.5% 20.5% n/m = not meaningful to present as a percentage (1)The Company calculates ROE on stated book value based on net income divided by average stockholders’ equity. For the calculation of ROE on tangible book value, the amount of goodwill and intangibles, net is excluded from stockholders’ equity. The following table presents our consolidated operating revenues by segment for the periods indicated. Three Months Ended December 31,(in millions) 2024 2023 % ChangeSegment operating revenues represented by: Commercial$232.3 $198.4 17%Institutional 539.6 435.7 24%Self-Directed/Retail 124.1 92.5 34%Payments 58.1 60.6 (4)%Corporate 11.1 9.2 21%Eliminations (20.9) (12.2) 71%Operating revenues$944.3 $784.2 20% The following table presents our consolidated income by segment for the periods indicated. Three Months Ended December 31,(in millions) 2024 2023 % ChangeSegment income represented by: Commercial$102.2 $87.2 17%Institutional 78.1 65.2 20%Self-Directed/Retail 56.9 28.7 98%Payments 34.1 35.0 (3)%Total segment income$271.3 $216.1 26%Reconciliation of segment income to income before tax: Segment income$271.3 $216.1 26%Net operating loss within Corporate(1) (21.1) (15.6) 35%Overhead costs and expenses (133.3) (104.8) 27%Income before tax$116.9 $95.7 22% (1)Includes interest expense on corporate funding. Key Operating Metrics The tables below present operating revenues disaggregated across the key products we provide to our clients and select operating data and metrics used by management in evaluating our performance, for the periods indicated. Three Months Ended December 31, 2024 2023 % ChangeOperating Revenues (in millions): Listed derivatives$111.8 $109.2 2%Over-the-counter (“OTC”) derivatives 36.6 44.5 (18)%Securities 401.8 316.2 27%FX/Contracts for difference (“CFD”) contracts 98.6 74.6 32%Payments 56.8 59.4 (4)%Physical contracts 92.6 51.4 80%Interest/fees earned on client balances 107.6 98.4 9%Other 48.3 33.5 44%Corporate 11.1 9.2 21%Eliminations (20.9) (12.2) 71% $944.3 $784.2 20%Volumes and Other Select Data: Listed derivatives (contracts, 000’s) 53,180 50,759 5%Listed derivatives, average rate per contract (“RPC”)(1)$2.03 $2.03 —%Average client equity - listed derivatives (millions)$6,620 $6,170 7%OTC derivatives (contracts, 000’s) 859 814 6%OTC derivatives, average RPC$42.84 $54.92 (22)%Securities average daily volume (“ADV”) (millions)$8,733 $6,224 40%Securities rate per million (“RPM”)(2)$237 $295 (20)%Average money market/FDIC sweep client balances (millions)$1,197 $1,060 13%FX/CFD contracts ADV (millions)$11,685 $10,917 7%FX/CFD contracts RPM$133 $109 22%Payments ADV (millions)$84 $75 12%Payments RPM$10,414 $12,557 (17)% (1)Give-up fee revenues, related to contract execution for clients of other FCMs, as well as cash and voice brokerage revenues are excluded from the calculation of listed derivatives, average rate per contract.(2)Interest expense associated with our fixed income activities is deducted from operating revenues in the calculation of Securities RPM while interest income related to securities lending is excluded. Interest expense Three Months Ended December 31,(in millions) 2024 2023 % ChangeInterest expense attributable to: Trading activities: Institutional dealer in fixed income securities$223.6 $172.1 30%Securities borrowing 22.0 14.6 51%Client balances on deposit 33.8 36.3 (7)%Short-term financing facilities of subsidiaries and other direct interest of operating segments 26.8 13.0 106% 306.2 236.0 30%Corporate funding 15.2 13.2 15%Total interest expense$321.4 $249.2 29% Increased interest expense attributable to trading activities principally resulted from an increase in our fixed income, securities borrowing, and physical business activities. The increase in interest expense for the three months ended December 31, 2024 attributable to corporate funding was principally due to an increase in the aggregate amount of senior secured notes outstanding, related to the March 1, 2024 issuance of our 7.875% Senior Secured Notes due 2031 (the “Notes due 2031”), effectively replacing our 8.625% Senior Secured Notes due 2025 (“the Notes due 2025”). This increase was partially offset by lower average borrowings on our revolving credit facility. Variable vs. Fixed ExpensesThe table below sets forth our variable expenses and non-variable expenses as a percentage of total non-interest expenses for the periods indicated. Three Months Ended December 31,(in millions) 2024 % ofTotal 2023 % ofTotalVariable compensation and benefits$133.3 26% $121.9 28%Transaction-based clearing expenses 86.5 17% 74.3 17%Introducing broker commissions 44.3 9% 39.1 9%Total variable expenses 264.1 52% 235.3 54%Fixed compensation and benefits 119.2 23% 96.2 22%Other fixed expenses 126.6 25% 108.1 24%Bad debts (recoveries), net 1.8 —% (0.3) —%Total non-variable expenses 247.6 48% 204.0 46%Total non-interest expenses$511.7 100% $439.3 100% Other Gains, net The results of the three months ended December 31, 2024 included nonrecurring gains of $5.7 million resulting from proceeds received from class action settlements. Segment Results Our business activities are managed through four operating segments, including Commercial, Institutional, Self-Directed/Retail and Payments. The tables below present the financial performance, a disaggregation of operating revenues, and select operating data and metrics used by management in evaluating the performance of our segments, for the periods indicated. Additional information on the performance of our segments will be included in our Quarterly Report on Form 10-Q to be filed with the SEC. Commercial Three Months Ended December 31,(in millions) 2024 2023 % ChangeRevenues: Sales of physical commodities$27,033.7 $18,809.5 44%Principal gains, net 67.2 77.1 (13)%Commission and clearing fees 48.7 44.3 10%Consulting, management and account fees 6.5 5.8 12%Interest income 52.9 41.3 28%Total revenues 27,209.0 18,978.0 43%Cost of sales of physical commodities 26,976.7 18,779.6 44%Operating revenues 232.3 198.4 17%Transaction-based clearing expenses 17.6 15.8 11%Introducing broker commissions 11.3 10.4 9%Interest expense 14.2 8.8 61%Net operating revenues 189.2 163.4 16%Variable compensation and benefits 43.5 37.0 18%Net contribution 145.7 126.4 15%Fixed compensation and benefits 17.0 15.5 10%Other fixed expenses 25.3 23.8 6%Bad debts (recoveries), net 1.2 (0.1) n/mNon-variable direct expenses 43.5 39.2 11%Segment income 102.2 87.2 17%Allocation of overhead costs 9.7 8.8 10%Segment income, less allocation of overhead costs$92.5 $78.4 18% Three Months Ended December 31, 2024 2023 % ChangeOperating Revenues (in millions): Listed derivatives$62.2 $59.4 5%OTC derivatives 36.6 44.5 (18)%Physical contracts 90.1 50.6 78%Interest/fees earned on client balances 36.6 37.2 (2)%Other 6.8 6.7 1% $232.3 $198.4 17% Volumes and Other Select Data: Listed derivatives (contracts, 000’s) 10,608 9,523 11%Listed derivatives, average RPC (1)$5.67 $5.95 (5)%Average client equity - listed derivatives (millions)$1,727 $1,700 2%OTC derivatives (contracts, 000’s) 859 814 5%OTC derivatives, average RPC$42.84 $54.92 (22)% (1)Give-up fee revenues, related to contract execution for clients of other FCMs, as well as cash and voice brokerage revenues are excluded from the calculation of listed derivatives, average RPC. Institutional Three Months Ended December 31,(in millions) 2024 2023 % ChangeRevenues: Sales of physical commodities$— $— —%Principal gains, net 108.6 103.2 5%Commission and clearing fees 85.7 73.3 17%Consulting, management and account fees 20.3 17.3 17%Interest income 325.0 241.9 34%Total revenues 539.6 435.7 24%Cost of sales of physical commodities — — —%Operating revenues 539.6 435.7 24%Transaction-based clearing expenses 63.0 52.9 19%Introducing broker commissions 8.1 7.7 5%Interest expense 294.5 226.5 30%Net operating revenues 174.0 148.6 17%Variable compensation and benefits 56.2 48.4 16%Net contribution 117.8 100.2 18%Fixed compensation and benefits 18.6 16.4 13%Other fixed expenses 22.4 19.0 18%Bad debts (recoveries), net — (0.4) (100)%Non-variable direct expenses 41.0 35.0 17%Other gain 1.3 — n/mSegment income$78.1 $65.2 20%Allocation of overhead costs 14.8 12.8 16%Segment income, less allocation of overhead costs$63.3 $52.4 21% Three Months Ended December 31, 2024 2023 % ChangeOperating Revenues (in millions): Listed derivatives$49.6 $49.8 —%Securities 373.5 293.6 27%FX contracts 9.6 8.0 20%Interest/fees earned on client balances 70.3 60.5 16%Other 36.6 23.8 54% $539.6 $435.7 24% Volumes and Other Select Data: Listed derivatives (contracts, 000’s) 42,572 41,236 3%Listed derivatives, average RPC (1)$1.12 $1.12 —%Average client equity - listed derivatives (millions)$4,893 $4,470 9%Securities ADV (millions)$8,733 $6,224 40%Securities RPM (2)$237 $295 (20)%Average money market/FDIC sweep client balances (millions)$1,197 $1,060 13%FX contracts ADV (millions)$4,082 $3,970 3%FX contracts RPM$36 $34 6% (1)Give-up fee revenues, related to contract execution for clients of other FCMs, revenues are excluded from the calculation of listed derivatives, average RPC.(2)Interest expense associated with our fixed income activities is deducted from operating revenues in the calculation of Securities RPM, while interest income related to securities lending is excluded. Self-Directed/Retail Three Months Ended December 31,(in millions) 2024 2023 % ChangeRevenues: Sales of physical commodities$17.4 $11.4 53%Principal gains, net 79.5 55.6 43%Commission and clearing fees 13.5 11.2 21%Consulting, management and account fees 19.3 14.1 37%Interest income 8.7 9.4 (7)%Total revenues 138.4 101.7 36%Cost of sales of physical commodities 14.3 9.2 55%Operating revenues 124.1 92.5 34%Transaction-based clearing expenses 3.4 3.5 (3)%Introducing broker commissions 24.0 20.4 18%Interest expense 2.1 1.6 31%Net operating revenues 94.6 67.0 41%Variable compensation and benefits 3.0 4.4 (32)%Net contribution 91.6 62.6 46%Fixed compensation and benefits 9.4 10.3 (9)%Other fixed expenses 29.2 23.5 24%Bad debts, net of recoveries 0.5 0.1 400%Non-variable direct expenses 39.1 33.9 15%Other gain 4.4 — n/mSegment income 56.9 28.7 98%Allocation of overhead costs 12.6 11.5 10%Segment income, less allocation of overhead costs$44.3 $17.2 158% Three Months Ended December 31, 2024 2023 % ChangeOperating Revenues (in millions): Securities$28.3 $22.6 25%FX/CFD contracts 89.0 66.6 34%Physical contracts 2.5 0.8 213%Interest/fees earned on client balances 0.7 0.7 —%Other 3.6 1.8 100% $124.1 $92.5 34% Volumes and Other Select Data: FX/CFD contracts ADV (millions)$7,603 $6,948 9%FX/CFD contracts RPM$185 $151 23% Payments Three Months Ended December 31,(in millions) 2024 2023 % ChangeRevenues: Sales of physical commodities$— $— —%Principal gains, net 54.4 57.5 (5)%Commission and clearing fees 1.8 1.5 20%Consulting, management, account fees 1.3 0.9 44%Interest income 0.6 0.7 (14)%Total revenues 58.1 60.6 (4)%Cost of sales of physical commodities — — —%Operating revenues 58.1 60.6 (4)%Transaction-based clearing expenses 1.8 1.8 —%Introducing broker commissions 0.9 0.6 50%Interest expense — — —%Net operating revenues 55.4 58.2 (5)%Variable compensation and benefits 9.1 10.6 (14)%Net contribution 46.3 47.6 (3)%Fixed compensation and benefits 6.6 7.3 (10)%Other fixed expenses 5.5 5.2 6%Bad debts, net of recoveries 0.1 0.1 —%Total non-variable direct expenses 12.2 12.6 (3)%Segment income 34.1 35.0 (3)%Allocation of overhead costs 5.6 5.1 10%Segment income, less allocation of overhead costs$28.5 $29.9 (5)% Three Months Ended December 31, 2024 2023 % ChangeOperating Revenues (in millions): Payments$56.8 $59.4 (4)%Other 1.3 1.2 8% $58.1 $60.6 (4)% Volumes and Other Select Data: Payments ADV (millions)$84 $75 12%Payments RPM$10,414 $12,557 (17)% Overhead Costs and Expenses We incur overhead costs and expenses, including certain shared services such as information technology, accounting and treasury, credit and risk, legal and compliance, and human resources and other activities. The following table provides information regarding overhead costs and expenses. The allocation of overhead costs to operating segments includes costs associated with compliance, technology, and credit and risk costs. The share of allocated costs is based on resources consumed by the relevant businesses. In addition, the allocation of human resources and occupancy costs is principally based on employee costs within the relevant businesses. Three Months Ended December 31,(in millions) 2024 2023 % ChangeCompensation and benefits: Variable compensation and benefits$20.2 $19.4 4%Fixed compensation and benefits 61.0 40.6 50% 81.2 60.0 35%Other expenses: Occupancy and equipment rental 12.1 7.3 66%Non-trading technology and support 15.3 13.0 18%Professional fees 8.7 7.5 16%Depreciation and amortization 6.4 5.5 16%Communications 1.5 1.6 (6)%Selling and marketing 0.9 1.3 (31)%Trading systems and market information 1.6 1.7 (6)%Travel and business development 2.6 1.7 53%Other 3.0 5.2 (42)% 52.1 44.8 16%Overhead costs and expenses 133.3 104.8 27%Allocation of overhead costs (42.7) (38.2) 12%Overhead costs and expense, net of allocation to operating segments$90.6 $66.6 36% Balance Sheet Summary The following table below provides a summary of asset, liability and stockholders’ equity information for the periods indicated. (Unaudited) (in millions, except for share and per share amounts)December 31, 2024 September 30, 2024Summary asset information: Cash and cash equivalents$1,398.2 $1,269.0Cash, securities and other assets segregated under federal and other regulations$3,156.6 $2,841.2Securities purchased under agreements to resell$5,479.2 $5,201.5Securities borrowed$2,120.7 $1,662.3Deposits with and receivables from broker-dealers, clearing organizations and counterparties, net$7,783.9 $7,283.2Receivables from clients, net and notes receivable, net$1,096.3 $1,013.1Financial instruments owned, at fair value$6,918.1 $6,767.1Physical commodities inventory, net$861.4 $681.1Property and equipment, net$145.1 $143.1Operating right of use assets$159.7 $157.0Goodwill and intangible assets, net$87.0 $80.6Other$379.1 $367.1 Summary liability and stockholders’ equity information: Accounts payable and other accrued liabilities$491.3 $548.8Operating lease liabilities$198.6 $195.9Payables to clients$11,338.2 $10,345.9Payables to broker-dealers, clearing organizations and counterparties$445.5 $734.2Payables to lenders under loans$550.0 $338.8Senior secured borrowings, net$543.3 $543.1Securities sold under agreements to repurchase$8,872.9 $8,581.3Securities loaned$1,826.5 $1,615.9Financial instruments sold, not yet purchased, at fair value$3,541.6 $2,853.3Stockholders’ equity$1,777.4 $1,709.1 Common stock outstanding - shares 32,034,629 31,874,447Net asset value per share$55.48 $53.62 Three-for-Two Stock Split On February 5, 2025, the Company’s Board of Directors approved a three-for-two split of its common stock to make stock ownership more accessible to employees and investors. The stock split will be effected as a stock dividend entitling each stockholder of record to receive one additional share of common stock for every two shares owned. Additional shares issued as a result of the stock dividend will be distributed after close of trading on March 21, 2025, to stockholders of record at the close of business on March 11, 2025. Cash will be distributed in lieu of fractional shares based on the opening price of a share of common stock on March 12, 2025. Trading is expected to begin on a stock split-adjusted basis at market open on March 24, 2025. All share and per share amounts contained herein have not been retroactively adjusted for this subsequent stock split. Conference Call & Web Cast A conference call to discuss the Company’s financial results will be held tomorrow, Thursday, February 6, 2025 at 9:00 a.m. Eastern time. The call may also include discussion of Company developments, and forward-looking and other material information about business and financial matters. A live webcast of the conference call as well as additional information to review during the call will be made available in PDF form on-line on the Company’s corporate web site at https://register.vevent.com/register/BIe20141cf7fd043c89fde461964a3582e approximately ten minutes prior to the start time. Participants may preregister for the conference call here. For those who cannot access the live broadcast, a replay of the call will be available at https://www.stonex.com. About StoneX Group Inc. StoneX Group Inc., through its subsidiaries, operates a global financial services network that connects companies, organizations, traders and investors to the global market ecosystem through a unique blend of digital platforms, end-to-end clearing and execution services, high touch service and deep expertise. The Company strives to be the one trusted partner to its clients, providing its network, product and services to allow them to pursue trading opportunities, manage their market risks, make investments and improve their business performance. A Fortune-500 company headquartered in New York City and listed on the Nasdaq Global Select Market (NASDAQ:SNEX), StoneX Group Inc. and its more than 4,600 employees serve more than 54,000 commercial, institutional, and payments clients, and more than 400,000 retail accounts, from more than 80 offices spread across six continents. Further information on the Company is available at www.stonex.com. Forward Looking Statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such as those pertaining to the Company’s financial condition, results of operations, business strategy, financial needs of the Company and the stock split. All statements other than statements of current or historical fact contained in this press release are forward-looking statements. The words “believe,” “expect,” “anticipate,” “should,” “plan,” “will,” “may,” “could,” “intend,” “estimate,” “predict,” “potential,” “continue” or the negative of these terms and similar expressions, as they relate to StoneX Group Inc., are intended to identify forward-looking statements. These forward-looking statements are largely based on current expectations and projections about future events and financial trends that may affect the financial condition, results of operations, business strategy and financial needs of the Company. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the control of the Company, including adverse changes in economic, political and market conditions, including losses from our market-making and trading activities arising from counterparty failures, the loss of key personnel, the impact of increasing competition, the impact of changes in government regulation, the possibility of liabilities arising from violations of foreign, United States (“U.S.”) federal and U.S. state securities laws, the impact of changes in technology in the securities and commodities trading industries, and other risks discussed in our filings with the SEC, including Part I, Item 1A of our Annual Report on Form 10-K for the year ended September 30, 2024. Although we believe that our forward-looking statements are based upon reasonable assumptions regarding our business and future market conditions, there can be no assurances that our actual results will not differ materially from any results expressed or implied by our forward-looking statements. These forward-looking statements speak only as of the date of this press release. StoneX Group Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. StoneX Group Inc. Investor inquiries: Kevin Murphy(212) 403 - 7296 kevin.murphy@stonex.com SNEX-G

StoneX Group Inc. Reports Fiscal 2025 First Quarter Financial Results

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