StoneX Q2 2025 presentation: Net income surges 35% amid strategic acquisitions

Introduction & Market Context

StoneX Group Inc. (NASDAQ:SNEX) reported robust financial results for the second quarter of fiscal year 2025, with significant growth in revenue and profitability. The company presented its quarterly earnings on May 8, 2025, highlighting a 35% increase in net income alongside several strategic acquisitions aimed at strengthening its market position.

The financial services company’s stock was trading at $95.37 at the time of the presentation, up 1.29% from the previous close of $94.15, reflecting positive market reception to the results. The stock has been performing well, trading near its 52-week high of $97.17, significantly above its 52-week low of $46.43.

Quarterly Performance Highlights

StoneX delivered impressive financial results for Q2 2025, with operating revenues reaching $956.0 million, a 17% increase compared to the same period last year. Net income rose 35% to $71.7 million, while diluted earnings per share increased 29% to $1.41. The company maintained a strong return on equity of 15.7%, up from 14.0% in Q2 2024.

As shown in the following comprehensive financial summary:

On a trailing twelve-month basis, StoneX reported operating revenues of $3,734.1 million (up 18%), net income of $295.4 million (up 22%), and diluted EPS of $5.90 (up 18%). The company’s book value per share reached $38.59, representing a 19% increase year-over-year.

Client assets continued to grow, with average client equity plus money-market/FDIC sweep client balances reaching approximately $7.9 billion, up 11% compared to Q2 2024 and 1% versus the previous quarter.

Detailed Financial Analysis

StoneX’s product revenue breakdown reveals strong performance across multiple business lines. Securities trading was the largest contributor, with revenue of $426.7 million, up 25% year-over-year. Listed derivatives revenue increased 15% to $128.4 million, while physical contracts saw the most significant growth at 58%, reaching $72.6 million. However, FX/CFDs revenue declined 12% to $70.9 million.

The detailed product performance metrics are illustrated here:

Segment performance showed divergent trends, with the Institutional segment delivering the strongest results. Institutional net operating revenue increased 28% to $191 million, with segment income up 41% to $87 million. The Commercial segment also performed well, with net operating revenue up 18% to $193 million and segment income increasing 13% to $97 million.

However, the Self-Directed/Retail segment faced challenges, with net operating revenue declining 14% to $64 million and segment income dropping 34% to $22 million. The Payments segment remained relatively stable with a 2% increase in net operating revenue to $48 million and flat segment income at $25 million.

The segment performance breakdown is detailed in this chart:

On a trailing twelve-month basis, all segments except Payments showed positive growth. The Institutional segment led with a 27% increase in net operating revenue and a 34% increase in segment income. The Self-Directed/Retail segment, despite its quarterly challenges, showed 11% growth in net operating revenue and 27% growth in segment income over the trailing twelve months.

Strategic Initiatives

StoneX announced three significant strategic moves aimed at expanding its market presence and capabilities. The company has entered into a definitive agreement to acquire R.J. O’Brien (RJO), which will add over 75,000 accounts and approximately 300 introducing brokers to StoneX’s network. This acquisition is expected to establish StoneX as a market leader in global derivatives.

Additionally, StoneX signed an agreement to acquire The Benchmark Company, adding new capabilities in equity and debt capital markets, including investment banking and equity research. The company also entered a strategic partnership with Bamboo Payment Systems, including an equity investment and a potential path to full ownership, which will expand its cross-border payment capabilities in Latin America.

These strategic initiatives are outlined in detail here:

In the metals segment, StoneX is pursuing several strategic objectives, including expanding products and services, growing and diversifying its client base, and digitizing its business operations. The company is focused on building an end-to-end ecosystem, increasing market penetration, and expanding margins.

Forward-Looking Statements

StoneX provided insights into its interest rate sensitivity, noting that a 100 basis point change in interest rates would result in a $28.2 million effect on net income and a $0.57 impact on post-tax EPS. This information is particularly relevant as markets anticipate potential interest rate changes in the coming quarters.

The interest rate sensitivity analysis is presented here:

Looking ahead, StoneX expects the RJO acquisition to close in the second half of 2025. In 2024, RJO generated approximately $766 million in revenue and approximately $170 million in EBITDA. The acquisition is expected to enhance margins, EPS, and ROE, adding approximately $6 billion in client float and 190 million in listed contract volumes.

The company anticipates a more volatile economic backdrop emerging, potentially surpassing levels of the past two years. Management noted that while this environment presents challenges, volatility continues to be a key driver of StoneX’s business. Despite declining interest rates, the company expects downward movement to remain constrained by persistent inflation, high debt burdens, and ongoing fiscal deficits.

StoneX remains confident in its growth prospects, citing a significant total addressable market and ongoing digitization efforts that are expected to power future growth.

Metals Business Focus

The presentation included a special focus on StoneX’s metals business, highlighting its global solutions in both base and precious metals. The company offers a comprehensive range of services, including futures and options brokerage, OTC and structured products, risk management advisory, physical trading, and market research.

The metals business overview is detailed here:

StoneX also provided insights into the current market environment for metals, showing trends in gold stock levels and prices, copper spreads, and LME average daily volume. The data indicates growing trading volumes, with LME average daily volume increasing 34% in 2024 compared to 2022.

With these strategic initiatives and strong financial performance, StoneX appears well-positioned to continue its growth trajectory and strengthen its market leadership in global financial services.

Full presentation:

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