This article first appeared on GuruFocus.

Release Date: November 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

StoneX Group Inc (NASDAQ:SNEX) reported a record net income of $85.7 million for the fourth quarter, with a 12% growth in net income.

Operating revenues increased by 31% year-over-year, reaching over $1.2 billion, driven by strong performance across most product lines.

The acquisition of RJ O'Brien contributed significantly to the company's growth, adding $22.1 million in pre-tax net income for the quarter.

The company's institutional segment saw record net operating revenues and segment income, with growth of 67% and 73% respectively.

StoneX Group Inc (NASDAQ:SNEX) achieved a return on equity of 15.2% for the quarter, despite a 72% increase in book value over the last two years.

Earnings per share grew only 1% due to the issuance of additional shares related to the acquisition of RJ O'Brien.

FX CFD revenues declined by 34% year-over-year, primarily due to low volatility in FX markets.

The self-directed retail segment experienced a 35% decline in net operating revenues and a 51% drop in segment income.

Precious metals operating revenues declined by $6.8 million, partially offsetting gains in other areas.

The company incurred $9.3 million in pre-tax acquisition-related charges, impacting overall profitability.

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Q: How are the early cross-selling efforts with RJO clients progressing, and when can we expect revenue synergies? A: Sean O'Connor, Executive Vice Chairman, explained that the cross-selling efforts are progressing as expected, with significant interest from RJO clients in learning about new products. While there have been some early successes, such as joint pitches and transactions in fixed income, it's challenging to provide a specific estimate for revenue synergies due to the difficulty in tracking and attributing revenue increases directly to these efforts.

Q: Has the precious metals trading improved after gold was exempted from tariffs in September? A: Sean O'Connor noted that the precious metals business was negatively impacted by tariff-related dislocations in Q3, but the situation improved in Q4. The company has adjusted its strategies, and the environment is now turning positive, with expectations for better performance in Q1.

Q: What drove the increase in the rate per contract (RPC) for listed derivatives, and is it sustainable? A: Bill Dunaway, CFO, attributed the increase in RPC to the introduction of RJO's business, which had a higher rate per contract than StoneX's previous average. This is primarily a business mix issue between StoneX and RJO.

Q: Can you elaborate on the expense synergies realized from the RJO acquisition and the timeline for future synergies? A: Abby Perkins, Executive Committee Member, stated that $20 million in annualized cost savings have been realized so far. The next wave of synergies is expected in the spring with UK combinations, followed by significant synergies post-US integrations in late Q4 2026. The company remains comfortable with the $50 million synergy target.

Q: How is StoneX managing interest rate sensitivity with the higher balances, and are there any hedging strategies in place? A: Bill Dunaway explained that StoneX is actively managing interest rate sensitivity by potentially locking in rates around a two-year window using swaps. The company aims to protect against rate fluctuations while leveraging RJO's expertise in managing portfolios to exceed benchmark rates.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.