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SNEX Q3 Earnings Top on Commercial and Institutional Gains, Stock Dips
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Key Takeaways
StoneX's fiscal Q3 earnings jumped 85.2%, while revenues rose 43.3% and topped estimates.
Commercial and Institutional strength benefited from volatility, demand and higher client activity.
Retail weakness and rising compensation, clearing and technology costs weighed on results.
StoneX Group Inc. (SNEX - Free Report) reported third-quarter fiscal 2026 earnings of $1.00 per share, which handily surpassed the Zacks Consensus Estimate of 76 cents. The bottom line jumped 85.2% year over year.
Operating revenues increased 43.3% to $1.47 billion. The top line beat the consensus mark of $1.32 billion by 11.57%.
Shares fell 1.6% in after-hours trading.
Results benefited from broad-based strength across Commercial and Institutional segments, with higher volatility and increased demand supporting client activity. However, weakness in the Self-Directed/Retail segment and higher expenses were the headwinds.
Net income more than doubled to $127.9 million from $63.4 million.
SNEX's Revenue Mix Broadens
Net operating revenues rose 47% year over year to $719.7 million. Listed derivatives net operating revenues increased 113% to $121.2 million, while over-the-counter derivatives advanced 73% to $101.9 million.
Securities net operating revenues grew 36% to $171.3 million. Physical contracts surged 162% to $87.4 million, and interest and fees earned on client balances increased 51% to $111.9 million. However, FX and contracts-for-difference revenues declined 19% to $62.4 million.
StoneX’s Segment Performance and Key Products
Commercial operating revenues jumped 97% to $452.2 million. Segment income more than doubled to $181.4 million from $82.7 million in the prior-year quarter. Growth was broad-based. Listed derivatives operating revenues rose 110% to $152.5 million, OTC derivatives increased 73% to $101.8 million and physical contracts climbed 106% to $115.4 million. Average client equity in listed derivatives soared 162% to $4.54 billion.
Institutional operating revenues increased 40% to $875.3 million, while segment income rose 49% to $129.9 million. Net operating revenues for the segment jumped 56% to $312.3 million. Listed derivatives operating revenues surged 145% to $131.8 million, supported by an 83% increase in contract volume. Securities revenues grew 26% to $573.8 million as average daily volume (ADV) increased 33% to $12.26 billion. The R.J. O’Brien acquisition contributed 27 million listed derivatives contracts during the quarter.
Self-Directed/Retail operating revenues declined 13% to $96.3 million. Segment income fell 36% to $24.9 million, reflecting pressure from lower FX and CFD activity. FX and CFD operating revenues decreased 19% to $64.7 million as ADV plunged 27% to $6.81 billion. Securities revenues provided a partial offset, rising 3% to $30.4 million. Revenue per million for FX and CFD contracts improved 11% to $147.
Payments operating revenues rose 13% to $60.3 million, while segment income increased 22% to $34.4 million. Net operating revenues grew 12% to $56.4 million. Segment’s ADV increased 20% to $96 million. Revenue per million declined 7% to $9,915, indicating that stronger activity levels more than offset lower revenue capture.
StoneX Costs Rise With Business Expansion
Total fixed compensation and other expenses increased 22% year over year to $314.2 million. Fixed compensation and benefits rose 21% to $149.8 million, while non-trading technology and support costs climbed 43% to $30.1 million.
Variable compensation and benefits jumped 70% to $244 million. Transaction-based clearing expenses increased 52% to $144.3 million, and introducing broker commissions rose 87% to $93.1 million.
SNEX Capital Metrics Strengthen
As of June 30, 2026, return on equity improved to 18.4% from 13.1%, while return on tangible book value increased to 25% from 13.8%. Adjusted EBITDA rose 70% to $229.5 million.
Cash and cash equivalents totaled $2.19 billion as of June 30, 2026, compared with $1.61 billion at fiscal 2025-end. Total stockholders’ equity increased to $2.84 billion from $2.38 billion.
Management highlighted continued integration benefits from R.J. O’Brien, which has strengthened StoneX’s futures commission merchant position.
Our Take on StoneX
A volatile operating backdrop continues to aid StoneX, with growth in client assets, average client funds, securities clearing, prime brokerage, digital assets and metals providing stable recurring income. Its broad product ecosystem, geographic reach, acquisitions, scaling equities and payments via automation and AI, and large addressable market will support growth. However, operating margin risk, higher credit costs and a premium valuation leave little room for execution missteps or unfavorable market conditions.
StoneX Group Inc. Price, Consensus and EPS Surprise
BGC Group, Inc.’s (BGC - Free Report) second-quarter 2026 adjusted earnings of 35 cents per share surpassed the Zacks Consensus Estimate by a penny. The bottom line improved 12.9% from the prior-year quarter.
Results were aided by an improvement in revenues to record levels, primarily driven by higher brokerage revenues. An increase in Fenics revenues was another positive. However, higher total expenses hurt BGC Group results to some extent.
Interactive Brokers Group’s (IBKR - Free Report) second-quarter 2026 adjusted earnings per share of 69 cents surpassed the Zacks Consensus Estimate of 64 cents. The bottom line reflected a rise of 35.3% from the prior-year quarter.
Results primarily benefited from an increase in revenues, growth in customer accounts and a rise in daily average revenue trades. However, higher expenses were the undermining factor for Interactive Brokers.
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SNEX Q3 Earnings Top on Commercial and Institutional Gains, Stock Dips
Key Takeaways
StoneX Group Inc. (SNEX - Free Report) reported third-quarter fiscal 2026 earnings of $1.00 per share, which handily surpassed the Zacks Consensus Estimate of 76 cents. The bottom line jumped 85.2% year over year.
Operating revenues increased 43.3% to $1.47 billion. The top line beat the consensus mark of $1.32 billion by 11.57%.
Shares fell 1.6% in after-hours trading.
Results benefited from broad-based strength across Commercial and Institutional segments, with higher volatility and increased demand supporting client activity. However, weakness in the Self-Directed/Retail segment and higher expenses were the headwinds.
Net income more than doubled to $127.9 million from $63.4 million.
SNEX's Revenue Mix Broadens
Net operating revenues rose 47% year over year to $719.7 million. Listed derivatives net operating revenues increased 113% to $121.2 million, while over-the-counter derivatives advanced 73% to $101.9 million.
Securities net operating revenues grew 36% to $171.3 million. Physical contracts surged 162% to $87.4 million, and interest and fees earned on client balances increased 51% to $111.9 million. However, FX and contracts-for-difference revenues declined 19% to $62.4 million.
StoneX’s Segment Performance and Key Products
Commercial operating revenues jumped 97% to $452.2 million. Segment income more than doubled to $181.4 million from $82.7 million in the prior-year quarter. Growth was broad-based. Listed derivatives operating revenues rose 110% to $152.5 million, OTC derivatives increased 73% to $101.8 million and physical contracts climbed 106% to $115.4 million. Average client equity in listed derivatives soared 162% to $4.54 billion.
Institutional operating revenues increased 40% to $875.3 million, while segment income rose 49% to $129.9 million. Net operating revenues for the segment jumped 56% to $312.3 million. Listed derivatives operating revenues surged 145% to $131.8 million, supported by an 83% increase in contract volume. Securities revenues grew 26% to $573.8 million as average daily volume (ADV) increased 33% to $12.26 billion. The R.J. O’Brien acquisition contributed 27 million listed derivatives contracts during the quarter.
Self-Directed/Retail operating revenues declined 13% to $96.3 million. Segment income fell 36% to $24.9 million, reflecting pressure from lower FX and CFD activity. FX and CFD operating revenues decreased 19% to $64.7 million as ADV plunged 27% to $6.81 billion. Securities revenues provided a partial offset, rising 3% to $30.4 million. Revenue per million for FX and CFD contracts improved 11% to $147.
Payments operating revenues rose 13% to $60.3 million, while segment income increased 22% to $34.4 million. Net operating revenues grew 12% to $56.4 million. Segment’s ADV increased 20% to $96 million. Revenue per million declined 7% to $9,915, indicating that stronger activity levels more than offset lower revenue capture.
StoneX Costs Rise With Business Expansion
Total fixed compensation and other expenses increased 22% year over year to $314.2 million. Fixed compensation and benefits rose 21% to $149.8 million, while non-trading technology and support costs climbed 43% to $30.1 million.
Variable compensation and benefits jumped 70% to $244 million. Transaction-based clearing expenses increased 52% to $144.3 million, and introducing broker commissions rose 87% to $93.1 million.
SNEX Capital Metrics Strengthen
As of June 30, 2026, return on equity improved to 18.4% from 13.1%, while return on tangible book value increased to 25% from 13.8%. Adjusted EBITDA rose 70% to $229.5 million.
Cash and cash equivalents totaled $2.19 billion as of June 30, 2026, compared with $1.61 billion at fiscal 2025-end. Total stockholders’ equity increased to $2.84 billion from $2.38 billion.
Management highlighted continued integration benefits from R.J. O’Brien, which has strengthened StoneX’s futures commission merchant position.
Our Take on StoneX
A volatile operating backdrop continues to aid StoneX, with growth in client assets, average client funds, securities clearing, prime brokerage, digital assets and metals providing stable recurring income. Its broad product ecosystem, geographic reach, acquisitions, scaling equities and payments via automation and AI, and large addressable market will support growth. However, operating margin risk, higher credit costs and a premium valuation leave little room for execution missteps or unfavorable market conditions.
StoneX Group Inc. Price, Consensus and EPS Surprise
StoneX Group Inc. price-consensus-eps-surprise-chart | StoneX Group Inc. Quote
Currently, SNEX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of StoneX Peers
BGC Group, Inc.’s (BGC - Free Report) second-quarter 2026 adjusted earnings of 35 cents per share surpassed the Zacks Consensus Estimate by a penny. The bottom line improved 12.9% from the prior-year quarter.
Results were aided by an improvement in revenues to record levels, primarily driven by higher brokerage revenues. An increase in Fenics revenues was another positive. However, higher total expenses hurt BGC Group results to some extent.
Interactive Brokers Group’s (IBKR - Free Report) second-quarter 2026 adjusted earnings per share of 69 cents surpassed the Zacks Consensus Estimate of 64 cents. The bottom line reflected a rise of 35.3% from the prior-year quarter.
Results primarily benefited from an increase in revenues, growth in customer accounts and a rise in daily average revenue trades. However, higher expenses were the undermining factor for Interactive Brokers.