StoneX Group Inc. 10-Q Summary: Fiscal Q2 2026
Business Context and Reporting Period
This summary covers StoneX Group Inc.'s (SNEX) unaudited quarterly report on Form 10-Q for the period ended March 31, 2026. StoneX operates as a global financial services network providing clearing, execution, and risk management services across commercial, institutional, self-directed/retail, and payments segments. The company serves clients in over 180 countries with more than 5,400 employees. Notable recent events include a 3-for-2 common stock split effective March 2026 and the integration of the R.J. O'Brien (RJO) acquisition, which closed in July 2025.
Key Financial Metrics
| Metric (in millions) | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Total Revenues | $45,760.9 | $36,890.7 | $84,790.8 | $64,826.0 |
| Operating Revenues | $1,566.8 | $956.0 | $3,005.0 | $1,900.3 |
| Net Operating Revenues | $829.1 | $487.3 | $1,553.5 | $979.4 |
| Net Income | $174.3 | $71.7 | $313.3 | $156.8 |
| Diluted EPS | $2.07 | $0.94 | $3.74 | $2.07 |
| Adjusted EBITDA | $296.9 | $138.2 | $547.8 | $291.6 |
| Total Assets | $53,626.9 | $31,282.9 | $53,626.9 | $31,282.9 |
| Stockholders' Equity | $2,699.3 | $1,882.0 | $2,699.3 | $1,882.0 |
| Cash & Equivalents (Total) | $12,789.4 | $5,972.6 | $12,789.4 | $5,972.6 |
Note: Total cash includes segregated client cash and securities. Operating revenues deduct the cost of sales of physical commodities from total revenues.
Material Changes vs. Prior Period
- Revenue Growth: Operating revenues increased 64% year-over-year (YoY) for the quarter and 58% for the six-month period. This growth was driven by higher volumes in listed and OTC derivatives, securities, and physical commodities, alongside the contribution from the RJO acquisition.
- Profitability: Net income surged 143% YoY for the quarter and 100% for the six-month period. Net operating revenues grew 70% and 59% respectively.
- Segment Performance:
- Commercial: Operating revenues up 115% (Q2) and 99% (YTD), driven by precious metals volatility and RJO integration.
- Institutional: Operating revenues up 55% (Q2) and 58% (YTD), fueled by increased securities average daily volume (ADV) and listed derivatives activity.
- Self-Directed/Retail: Operating revenues increased 16% (Q2) but declined 6% (YTD) due to lower FX/CFD rates per million (RPM) in the six-month view.
- Payments: Operating revenues grew 11% (Q2) and 4% (YTD) on higher ADV, partially offset by lower RPM.
- Expense Trends: Total compensation and other expenses increased 54% (Q2) and 48% (YTD). Variable expenses rose significantly due to higher revenues and acquisition-related headcount. Bad debt expense increased to $12.4 million (Q2) from $0.1 million (Q2 2025), primarily related to client receivables in the Global Metals business.
- Balance Sheet: Total assets grew 71% YoY, largely due to increased client deposits and trading positions. Senior secured borrowings increased 113% YoY following the issuance of $625 million in Notes due 2032 to fund the RJO acquisition.
Guidance, Outlook, and Risks
- Management Commentary: Management highlighted record net operating revenues and net income, attributing success to strong performance across all segments, heightened market volatility (specifically U.S.-Iran conflict impacts), and the RJO acquisition. The company continues to focus on a variable cost model, with variable expenses representing 59% of total expenses in Q2 2026.
- Acquisitions: The company completed the acquisition of WCS International Limited (WCSI) in March 2026 to enhance its payments business. The RJO acquisition continues to contribute significantly to operating revenues and client equity balances.
- Risks and Contingencies:
- Legal Proceedings: The BTIG arbitration matter was resolved in March 2026 with a net payment of $1.9 million to BTIG. The company continues to cooperate with a DOJ subpoena related to the matter, though the SEC concluded its investigation without recommending enforcement.
- Market Risk: Exposure to volatility in commodities, interest rates, and foreign exchange. The company manages these risks through hedging and strict position limits.
- Credit Risk: Exposure to client and counterparty default, particularly in OTC derivatives and physical commodities. The company maintains rigorous margin and collateral monitoring.
- Regulatory Capital: All subsidiaries remain in compliance with regulatory capital requirements (CFTC, SEC, FCA, MAS, etc.).
- Outlook: The company believes cash flows from operations and available credit facilities are adequate to meet future liquidity needs. No specific forward-looking financial guidance was provided in this filing beyond general strategic objectives.
Investor Verification Checklist
- Acquisition Integration: Verify the ongoing financial contribution and integration costs of the R.J. O'Brien (RJO) and WCS International Limited (WCSI) acquisitions.
- Bad Debt Provisions: Monitor the $12.4 million bad debt expense in Q2 2026, specifically related to the Global Metals business, to assess credit quality trends.
- Regulatory Compliance: Confirm continued compliance with capital requirements across global jurisdictions (CFTC, SEC, FCA, MAS) given the expanded footprint.
- Legal Resolution: Track the status of the ongoing DOJ subpoena related to the BTIG matter to assess potential future liabilities.
- Debt Structure: Review the impact of the new $625 million Notes due 2032 on interest expense and future cash flow obligations.
- Stock Split Impact: Ensure all share-based metrics (EPS, share counts) are correctly adjusted for the 3-for-2 stock split effective March 2026.