StoneX Fiscal Q3 2026 Earnings: Net Operating Revenue Rises 47%

StoneX Group (NASDAQ: SNEX) reported fiscal third-quarter 2026 net operating revenue of $719.7 million, up 47% from $488.3 million a year earlier, while diluted EPS rose 85% to $1.00 from $0.54. Net income more than doubled to $127.9 million, supported by Commercial and Institutional growth and the R.J. O’Brien acquisition, while Self-Directed/Retail remained the main drag.

Core financial results

StoneX’s gross revenue is dominated by physical commodity sales and associated cost of sales, making operating revenue and net operating revenue more useful measures of underlying activity. Operating revenue increased 43% to $1.47 billion, while net operating revenue grew slightly faster at 47%.

Profit growth outpaced both measures. Income before tax rose 87%, net income increased 102%, and non-GAAP adjusted EBITDA advanced 70%.

Adjusted EBITDA is a non-GAAP measure. Per-share amounts were retroactively adjusted for the March and July 2026 three-for-two stock dividends.

Business and segment performance

Commercial produced the fastest growth among StoneX’s operating segments, with operating revenue nearly doubling and segment income more than doubling. Institutional remained the largest segment by operating revenue and also recorded substantial profit growth. Payments improved at a more moderate pace, while Self-Directed/Retail contracted.

Commercial benefited from multiple product lines. Its net operating revenue from physical contracts increased 162%, OTC derivatives rose 73%, listed derivatives grew 62%, and interest and fees earned on client balances increased 103%.

Institutional net operating revenue rose 56% to $312.3 million. Listed derivatives were the largest growth contributor, increasing 260%, while securities rose 38%. Securities average daily volume increased 33%, accompanied by a 9% increase in revenue per million.

Self-Directed/Retail’s weakness was concentrated in FX and CFD activity. Average daily volume fell 27%, and FX/CFD operating and net operating revenue each declined 19%, despite an 11% increase in revenue per million. Payments average daily volume rose 20%, although revenue per million fell 7%; the segment still increased net operating revenue by 12%.

R.J. O’Brien materially expanded the derivatives base

The R.J. O’Brien acquisition, completed in July 2025, had a meaningful effect on StoneX’s year-over-year derivatives comparison. Consolidated listed-derivatives volume increased 73% to 97.9 million contracts, of which RJO contributed 32.0 million. Average listed-derivatives client equity rose 129% to $15.0 billion, including a $6.6 billion contribution from RJO.

Growth was not limited to acquired volume: StoneX’s average revenue per listed-derivatives contract also increased 23%. However, because the prior-year quarter did not include RJO, the reported growth rates should not be interpreted as purely organic. CEO Philip Smith said the company was beginning to realize benefits from the integration.

Profitability and balance sheet

Higher activity brought significantly higher variable costs. Total variable expenses rose 67% to $481.4 million, including a 70% increase in variable compensation, a 52% increase in transaction-based clearing expenses, and an 87% increase in introducing broker commissions. Variable expenses represented 60% of non-interest expenses, up from 53% a year earlier.

Non-variable expenses increased at a slower 22% rate to $314.2 million, allowing operating leverage to improve. Income before tax was approximately 22.2% of net operating revenue, compared with about 17.5% one year earlier. Net income also benefited from an effective tax rate of approximately 20.0%, down from about 25.9%, although the release did not explain the change.

Cash and cash equivalents reached $2.19 billion at June 30, 2026, up from $1.61 billion at the September 2025 fiscal year-end. Stockholders’ equity increased to $2.84 billion from $2.38 billion, and net asset value per share rose to $23.70 from $20.25.

StoneX’s financing-related balance sheet also expanded. Securities purchased under agreements to resell increased to $15.82 billion from $10.33 billion, while securities sold under repurchase agreements rose to $18.00 billion from $13.55 billion. Corporate funding interest expense increased 33% to $26.8 million, principally because of the $625 million notes due in 2032 issued in July 2025.

Risks investors should monitor

• Acquisition comparisons and integration execution: RJO contributed substantial listed-derivatives volume and client equity, making it harder to separate organic growth from acquisition-driven expansion. Future benefits remain dependent on successful integration.
• Persistent retail weakness: Self-Directed/Retail segment income fell 36% as FX/CFD activity declined. Continued volume pressure would limit the segment’s contribution even if revenue per million remains stable or improves.
• Faster variable-cost growth: Variable compensation, clearing expenses, and introducing broker commissions all grew faster than net operating revenue. A slowdown in activity without a corresponding reduction in these costs could pressure margins.
• Funding and balance-sheet intensity: Corporate funding expense increased, while repo and securities-lending balances expanded substantially. This increases the importance of disciplined liquidity, funding, and counterparty management.

Summary

StoneX’s fiscal Q3 2026 results reflected broad growth in Commercial and Institutional activity, amplified by the R.J. O’Brien acquisition. Profit increased faster than net operating revenue as non-variable costs grew more slowly and the effective tax rate declined, but retail FX/CFD weakness and rapidly rising variable expenses remain important counterweights. The next key indicators are performance after the RJO comparison begins to normalize, stabilization in Self-Directed/Retail, and the company’s ability to preserve operating leverage as funding and compensation costs rise.