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StoneX’s adjusted earnings per share of $1.00 beat the consensus estimate of $0.76 for the quarter ended June 30. On the consensus revenue measure, StoneX reported $1.5 billion against an estimate of $1.3 billion. Separately, the company’s reported revenue was $40.2 billion, up from $34.8 billion a year earlier.
The filing shows diluted EPS rose to $1.00 from $0.54. StoneX said growth in Commercial, Institutional and Payments more than offset a decline in Self-Directed/Retail. The R.J. O’Brien and Benchmark acquisitions contributed $78.8 million and $29.5 million, respectively, in net operating revenue.
StoneX attributed growth in OTC derivatives revenue principally to higher contract volumes, partly offset by a lower average rate per contract. The filing said FX/CFD revenue declined, primarily because of lower average daily volume in Self-Directed/Retail.
The company’s gross margin increased to 3.06% from 2.53%, while operating margin rose to 0.40% from 0.25%. Free cash flow was −$1.2 billion, compared with $1.5 billion a year earlier.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $40.2 billion | $34.8 billion | 15.4% |
| Diluted EPS | $1.00 | $0.54 | 84.4% |
| Gross margin | 3.06% | 2.53% | 0.5 percentage points |
| Operating margin | 0.40% | 0.25% | 0.2 percentage points |
| Free cash flow | −$1.2 billion | $1.5 billion | −183.0% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.00 | $0.76 | Beat by 31.6% |
| Revenue | $1.5 billion | $1.3 billion | Beat by 11.6% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
CEO Philip Smith said volatility moderated from the preceding quarter, but client engagement continued to support activity. He said Commercial net operating revenue rose 19% year over year, helped by global hedging and by acquisitions as well as organic growth. In Institutional, he attributed a 33% increase in securities average daily volume to equities market making.
On payments, Smith said average daily volume rose 20% year over year to $96 million. Asked about the business, he said the X-Pay system allowed StoneX to accept higher-volume, lower-value flows it had previously turned away. He expected the resulting pattern of rising daily volume and declining revenue per trade to continue for the foreseeable future.
Asked about physical commodities, Smith said geographic market dislocations had driven precious metals activity. He also said StoneX was expanding its non-metals physical business alongside its existing financial client relationships, combining physical contracts with hedging capabilities.
Smith said the vast majority of R.J. O’Brien’s remaining U.S. client migration was completed during the quarter. He said StoneX could now look more broadly at cross-selling, although some products required client education and attention to suitability. As he put it, “there are others where it does involve increased level of engagement in education.” He said StoneX had not set a revenue-synergy target because it did not want to rush that process against a timeline.
On cost savings, William Dunaway said StoneX was exiting the quarter at an annualized run rate closer to $37 million, $38 million. He reiterated a target of a $45 million, $46 million run rate by fiscal year-end and $50 million by the end of the first quarter.
Smith also outlined investment in Global Prime Services, including plans to extend U.S. financing products and expand outsourced trading. He said the platform served more than 700 accounts with over $16 billion in client balances.
Guidance
Smith said StoneX had not set a revenue-synergy target for R.J. O’Brien because it did not want to rush product suitability for clients against a timeline.