StoneX Group Inc. Q2 FY2026 earnings call

• Focus on agentic development, automating testing/delivery for innovation. - Board approved 3-for-2 stock split, shares trade split-adjusted. - Second quarter net income $174.3M, diluted EPS $2.07, operating revenues $1.6B. - Acquisitions like R.J. O'Brien contributed to results. - Ended Q2 fiscal 26 with book value per share $34.16. - Highlighted global equities business, including market-making franchise details.

Commercial segment: Record net operating revenues up 111%, segment income up 151% y-o-y. Institutional segment: Net operating revenues and segment income up 65% and 40% y-o-y, but down 3% and 13% q-o-q. Self-directed retail segment: Net operating revenues up 15%, segment income up 40%. Payment segment: Net operating revenues up 10%, segment income up 30%. Trailing 12 months: Institutional segment net operating revenues up 62%, segment income up 58%; commercial and payment segments segment income up 48% and 11% respectively; self-directed retail segment income down 23%.

• Expect to continue managing interest rate exposure with swaps. - Aim to scale market-making platform by streamlining operations, deepening market share, strengthening global reach/tech platform. - Target $50M in synergies from R.J. O'Brien integration, currently at $32M run rate with expectation to reach $45M by end of fiscal year.

• Heightened volatility increases credit loss risk. - Integration process of U.S. FCMs has gradual steps and potential issues to monitor.

Q: About good and bad volatility in the quarter and current environment, A: Surprising little credit losses, close communication with clients, some moderation in certain markets but still elevated volatility.

Q: On R.J. O'Brien integration synergies, A: On track, started integrating US FCMs, run rate of synergies in Q2 was ~$6.9M, exit run rate ~$8M, target $50M.

Q: On interest rate hedge, A: Active management program, around $1.8B swap position, will continue to protect downside.

Q: On commercial hedging business mix, A: Listed derivative commercial hedging more weighted to energy/renewable fuel, physical trading business ~150M of $190M Q2 operating revenues from precious metals.

Q: On M&A environment, A: Continued small to mid-size M&A activity, known as consolidator/ecosystem expander, drive from ecosystem integration and leveraging capabilities.