fiscal 2026 third quarter
Filed Aug 5, 2026Quarterly Net Operating Revenues of $719.7 million, up 47%; Quarterly Net Income of $127.9 million; Quarterly ROE of 18.4%; Quarterly Diluted EPS of $1.00 per share
Net operating revenues increased 47%, net income increased 102%, diluted EPS increased 85%, and adjusted EBITDA increased 70% from the prior-year quarter. Commercial, Institutional and Payments segment operating revenues all grew, while Self-Directed/Retail and FX/CFD contracts declined.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Sales of physical commoditiesGAAP | $38,772.3 million | – | 15% |
| Principal gains, netGAAP | $404.8 million | – | 21% |
| Commission and clearing feesGAAP | $332.0 million | – | 100% |
| Consulting, management, and account feesGAAP | $69.6 million | – | 51% |
| Interest incomeGAAP | $614.3 million | – | 39% |
| Total revenuesGAAP | $40,193.0 million | – | 15% |
| Cost of sales of physical commoditiesGAAP | $38,725.0 million | – | 15% |
| Operating revenuesGAAP | $1,468.0 million | – | 43% |
| Transaction-based clearing expensesGAAP | $144.3 million | – | 52% |
| Introducing broker commissionsGAAP | $93.1 million | – | 87% |
| Interest expenseGAAP | $484.1 million | – | 30% |
| Interest expense on corporate fundingGAAP | $26.8 million | – | 33% |
| Net operating revenuesGAAP | $719.7 million | – | 47% |
| Variable compensation and benefitsGAAP | $244.0 million | – | 70% |
| Net contributionGAAP | $475.7 million | – | 38% |
| Fixed compensation and benefitsGAAP | $149.8 million | – | 21% |
| Trading systems and market informationGAAP | $25.7 million | – | 21% |
| Professional feesGAAP | $5.9 million | – | (75)% |
| Non-trading technology and supportGAAP | $30.1 million | – | 43% |
| Occupancy and equipment rentalGAAP | $16.3 million | – | 14% |
| Selling and marketingGAAP | $16.6 million | – | 28% |
| Travel and business developmentGAAP | $10.9 million | – | 38% |
| CommunicationsGAAP | $3.3 million | – | 50% |
| Depreciation and amortizationGAAP | $26.9 million | – | 81% |
| Bad debts, net of recoveriesGAAP | $(1.0) million | – | n/m |
| Other expensesGAAP | $29.7 million | – | 97% |
| Total fixed compensation and other expensesGAAP | $314.2 million | – | 22% |
| Other losses, netGAAP | $(1.7) million | – | n/m |
| Income before taxGAAP | $159.8 million | – | 87% |
| Income tax expenseGAAP | $31.9 million | – | 44% |
| Net incomeGAAP | $127.9 million | – | 102% |
| Basic earnings per shareGAAP | $1.07 | – | 88% |
| Diluted earnings per shareGAAP | $1.00 | – | 85% |
| Weighted-average number of common shares outstanding, basicGAAP | 115,856,734 | – | 9% |
| Weighted-average number of common shares outstanding, dilutedGAAP | 124,482,194 | – | 11% |
| Return on equityother | 18.4 % | – | – |
| ROE on tangible book valueother | 25.0 % | – | – |
| Adjusted EBITDAnon-GAAP | $229.5 million | – | 70% |
| Nine months ended June 30, 2026 net operating revenuesGAAP | $2,273.2 million | – | 55% |
| Nine months ended June 30, 2026 net incomeGAAP | $441.2 million | – | 100% |
| Nine months ended June 30, 2026 diluted earnings per shareGAAP | $3.49 | – | 82% |
| Nine months ended June 30, 2026 adjusted EBITDAnon-GAAP | $777.3 million | – | 82% |
| Listed derivatives operating revenuesother | $284.3 million | – | 125% |
| OTC derivatives operating revenuesother | $101.8 million | – | 73% |
| Securities operating revenuesother | $604.2 million | – | 24% |
| FX/CFD contracts operating revenuesother | $70.9 million | – | (19)% |
| Payments operating revenuesother | $59.1 million | – | 13% |
| Physical contracts operating revenuesother | $115.4 million | – | 106% |
| Interest/fees earned on client balances operating revenuesother | $169.0 million | – | 64% |
| Listed derivatives contractsother | 97,944 contracts, 000’s | – | 73% |
| Listed derivatives average rate per contractother | $2.61 | – | 23% |
| Average client equity - listed derivativesother | $15,007 million | – | 129% |
| OTC derivatives contractsother | 1,924 contracts, 000’s | – | 89% |
| Securities average daily volumeother | $12,263 million | – | 33% |
| FX/CFD contracts ADVother | $10,780 million | – | (12)% |
| Payments ADVother | $96 million | – | 20% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| CommercialThe Company cited double-digit growth in Commercial and benefits from the successful integration of the R.J. O’Brien acquisition. | $452.2 million | – | 97% |
| InstitutionalThe Company cited double-digit growth in Institutional and said RJO further strengthened its market position. | $875.3 million | – | 40% |
| Self-Directed/RetailNot separately disclosed. | $96.3 million | – | (13)% |
| PaymentsThe Company cited double-digit growth in Payments. | $60.3 million | – | 13% |
| CorporateNot separately disclosed. | $2.8 million | – | (82)% |
| EliminationsNot separately disclosed. | $(18.9) million | – | 77% |
What drove it
- Commercial segment operating revenues increased 97% to $452.2 million and segment income increased 119% to $181.4 million.
- Institutional segment operating revenues increased 40% to $875.3 million and segment income increased 49% to $129.9 million.
- Listed derivatives operating revenues increased 125% to $284.3 million; contracts increased 73% to 97,944 contracts, 000’s; and average client equity increased 129% to $15,007 million.
- Physical contracts net operating revenues increased 162% to $87.4 million, while interest, net / fees earned on client balances increased 51% to $111.9 million.
- RJO contributed 32.0 million listed derivative contracts and $6.6 billion in average client equity for the three months ended June 30, 2026.
Concerns
- Self-Directed/Retail segment operating revenues decreased 13% to $96.3 million and segment income decreased 36% to $24.9 million.
- FX/CFD contracts operating revenues decreased 19% to $70.9 million; FX/CFD contracts ADV decreased 12% to $10,780 million.
- Corporate operating revenues decreased 82% to $2.8 million, while net operating loss within Corporate increased 265% to $(39.8) million.
- Total interest expense increased 31% to $510.9 million, including a 33% increase in corporate funding interest expense to $26.8 million.
- Depreciation and amortization increased 81% to $26.9 million, non-trading technology and support increased 43% to $30.1 million, and other expenses increased 97% to $29.7 million.
What to watch
- The sustainability of listed derivatives volume, rate per contract, and client-equity growth following the RJO acquisition.
- Whether Commercial and Institutional growth continues to offset declines in Self-Directed/Retail and FX/CFD contracts.
- Interest expense associated with fixed income securities, securities borrowing, client balances on deposit, and corporate funding.
- The progression of corporate losses and overhead costs, net of shared services, which increased 21% to $169.5 million.
Balance sheet and cash flow
- The filing text provided does not report cash, debt balances, operating cash flow, free cash flow, share repurchases, or dividends.
- The Company stated that $625 million in aggregate principal amount of the Notes due 2032 closed on July 8, 2025.
Analysis
StoneX reported a strong fiscal 2026 third quarter. Net operating revenues increased 47% to $719.7 million, net income increased 102% to $127.9 million, and diluted EPS increased 85% to $1.00. Adjusted EBITDA, a non-GAAP measure, increased 70% to $229.5 million. For the nine months ended June 30, 2026, net operating revenues increased 55% to $2,273.2 million and net income increased 100% to $441.2 million.
The revenue mix showed broad growth in the principal institutional and commercial activities. Commercial segment operating revenues increased 97% to $452.2 million, while Institutional increased 40% to $875.3 million and Payments increased 13% to $60.3 million. Listed derivatives operating revenues increased 125% to $284.3 million, supported by a 73% increase in contracts to 97,944 contracts, 000’s and a 129% increase in average client equity to $15,007 million. RJO contributed 32.0 million listed derivative contracts and $6.6 billion in average client equity during the quarter.
Profit growth exceeded net operating revenue growth. Net contribution increased 38% to $475.7 million, while total fixed compensation and other expenses increased 22% to $314.2 million. Income before tax increased 87% to $159.8 million. Variable compensation and benefits rose 70% to $244.0 million, and spending increased in depreciation and amortization, non-trading technology and support, travel and business development, and other expenses. Professional fees declined 75% to $5.9 million.
Several product lines and segments declined. Self-Directed/Retail operating revenues fell 13% to $96.3 million and segment income fell 36% to $24.9 million. FX/CFD operating revenues declined 19% to $70.9 million, with FX/CFD contracts ADV down 12% to $10,780 million. Corporate operating revenues declined 82% to $2.8 million and the Corporate net operating loss rose to $(39.8) million. The filing did not provide forward guidance.
Interest expense remains a material line item. Total interest expense rose 31% to $510.9 million, with the Company attributing increases in fixed income securities and securities borrowing interest expense principally to growth in security repo and securities lending businesses. RJO added $27.4 million of interest expense, including $25.1 million attributable to client balances, for the quarter. Corporate funding interest expense increased 33% to $26.8 million, which the Company attributed principally to the $625 million Notes due 2032 issued in July 2025.
Management, verbatim
We continue to deliver double-digit growth in our Commercial, Institutional and Payments segments, reflecting the increasing value of the StoneX ecosystem to our expanding client base.
Philip Smith, Chief Executive Officer
We are also beginning to realize the benefits of the successful integration of the R.J. O’Brien acquisition, further strengthening our market position and establishing StoneX as the largest non-bank FCM.
Philip Smith, Chief Executive Officer
Not in the filing
stated, not guessed- Forward revenue, margin, expense, tax-rate, EPS, or other guidance was not provided in the filing text.
- Previous-period outlook was not provided.
- Gross margin and operating income were not reported.
- Cash balance, debt balance, operating cash flow, free cash flow, share repurchases, and dividends were not reported in the filing text.
- Prior-quarter values and quarter-over-quarter changes were not reported.
- The filing text ends during the Variable vs. Fixed Expenses section; metrics that may have appeared after the supplied excerpt are unavailable.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.