** - **Bill Dunaway (CFO)** - **Sean O’Connor (Executive Vice Chairman)** - **Abby Perkins (Executive Committee / M&A Integration Lead)** - **Dan Fannon (Jefferies)** - **Jeff Schmitt (William Blair)** #### **Q4 FY 2025 Financial Highlights** - **Net Income:** Record $85.7 million (up 12% YoY), diluted EPS of $1.57 (up 1% YoY due to share issuance). - **Diluted EPS Impact:** Pre-tax acquisition-related expenses totaled ~$9.3 million (~$0.13 per diluted share), consisting of $1.3 million in bridge financing and $8.0 million in investment banking fees.

- **Operating Revenues:** >$1.2 billion (up 31% YoY). - **Net Operating Revenues:** Up 29% YoY, driven by strong growth in securities (+48.7M) and listed derivatives (+43.1M).

- **Return on Equity (ROE):** 15.2% on book value (~20% on tangible book value). - **Book Value per Share:** $45.56 at quarter-end.

#### **Full Fiscal Year 2025 Highlights** - **Operating Revenue:** >$4.0 billion (up 20% YoY). - **Net Income:** Record $305.9 million (up 17% YoY).

- **Diluted EPS:** $5.89. - **ROE:** 15.6% on book value (17.9% on tangible book value), exceeding the 15% corporate target.

--- ### **Segment Performance & Product Highlights**

** - Net operating revenues grew 25% YoY to $42.9 million (R.J. O'Brien acquisition contributed $20.0 million).

- Growth across listed derivatives (+32%), OTC derivatives (+27%), and physical contracts (+26%). 2.

**Institutional Segment:** - Record net operating revenues (up 67% YoY) and segment income (up 73% YoY). - RJO contributed $50.2 million to net operating revenue; securities revenues grew by $48.9 million.

3. **Self-Directed Retail:** - Net operating revenues declined 35% YoY due to subdued FX/CFD volatility and lower RPC.

4. **Payments:** - Net operating revenues up 7% YoY; segment income up 21% YoY.

5. **Interest & Fee Income (Client Balances):** - Net interest and fee income rose to $112.2 million (with RJO adding $32.5 million).

- Average client equity and money market FDIC sweep balances grew 71% and 25% YoY, respectively. - Sensitivity estimate: A 100 bps parallel shift in short-term interest rates impacts annual net income by ~$53.8 million ($1.02/share).

--- ### **M&A & Strategic Integration (R.J. O’Brien and Others)**

** StoneX is now the largest non-bank FCM in the US by client assets. Client equity balances reached an all-time high of $13.7 billion.

- **Synergies:** Targeting $50 million in annual run-rate cost synergies within 24 months (already realized ~$20 million annualized in the first 4 months). - **Capital Relief:** ~$20–$30 million in excess capital relief expected in Q2 FY 2026, and >$30 million following the US FCM merger in Q4 FY 2026.

A $42 million dividend of excess cash was also executed from the RJO parent entity. - **Other Acquisitions:** - **Benchmark:** Mid-sized investment bank expanded hedge fund relationships and equity research.

- **JBR:** UK silver recovery/refiner enabled StoneX to produce London Good Delivery silver bars. - **Wright Corp:** Physical meat trading expanded downstream livestock capabilities.

- **Octo Finance:** French fixed income broker expanding credit capabilities in Europe. - **Bamboo Payment Systems:** Cross-border payment ecosystem investment in LatAm.

--- ### **Q&A Summary**

** Early client cross-selling is underway (fixed income, OTC/physical ag, and introducing broker networks). Revenue synergies will take time to fully track due to client onboarding and educational timelines.

- **Precious Metals Business:** Experienced dislocation in Q3/Q4 due to CME metal price dislocation around tariff uncertainty, which has normalized into Q1 FY 2026. - **RPC & Institutional Volumes:** Rate-per-contract increases were driven primarily by the higher average RPC of RJO’s institutional business.

- **Interest Rate Hedging:** StoneX actively evaluates hedging portions of client float via swaps in the 2- to 3-year window to provide downside floor protection while optimizing yield spreads. Let me know if you would like deeper details on any specific section or metric from the call!

As I said in my comments, what's quite notable now at StoneX, and something that over time we'll probably try to give you more clarity on, is we are growing as a custodian of client assets in everywhere. Seg funds, in OTC products, clients are leaving more money with us.

We are actually now a custodian for gold, and just like we do on seg funds, we earn interest on the gold deposits we have. We have prime brokerage, we have equities clearing.

Everywhere you look, we are growing underlying asset pool, and those assets kick off now a really large number, which gives us a fantastic underpinning to our business, right? All the sort of transactional revenue, which is affected by sort of volatility and so on, is sort of the gravy on the top here for us.

If we can get to a point where, as a custodian, we've sort of got the costs covered, we've got a stable underlying flow of revenue, and then the sort of more volatile forms of revenue, which again we've diversified pretty broadly, but those tend to be the incremental revenues, and I think we're getting to an interesting sort of situation where it's starting to look like that. Something to watch and something we're working hard to do.

Right. That's very helpful.

Yes, it does. Lastly, just on the retail business, know that volatility has been pretty subdued, but obviously the fee per million or rate per million has came in a lot.

Anything else of note outside of just vol within that segment to think about on a kind of go-forward basis?

I think this has come up a few times over the last maybe two years, I would say, that we generally sort of budget, and the way we look at the vol in this business—and I'm talking about this self-directed retail business—is we look at it sort of a long-term average, right? Because the revenue capture number there can move around pretty materially.

Bill, correct me if I'm wrong, but I think we were up at sort of 130 in recent quarters as the high, right?

Yeah. No, we actually have been as high as 185 back in December, but that was December '24.

That was an exceptional quarter. If you go back a couple years, we were 82, 95 range back in '23, '22.

The long-term average range for us is sort of in the 80s, right? I think over time, we've lifted that from I think in the Gain days, they were more like 75 is what they used.

I think we've lifted that into the mid-80s because of all the things we've chatted about, right? We're combining flow better, there's more internalization, all of that stuff is helping.

I don't think this is necessarily a bad revenue capture number. I think what was happening previously is we were outperforming a little bit on the revenue capture.

Obviously we'd like it to be a little bit higher than it is now, but this is sort of the long-term average. I don't think you should look at this and say, "Oh, my God, what happened?"

I think this is sort of the business as it sort of has performed over the long period. Maybe slightly under trend, but I think we were significantly over trend when we were sort of reporting numbers, 120 and higher.

I think that's sort of unsustainable. I hope that helps.

That's my thought on it.

Yep. Great.

Thanks for taking my questions.

Yeah. Okay.

Operator, any more questions?

All right. Thanks, everyone.

Thanks for your time. We appreciate it.

We very happy with the results that we have managed to deliver to all of you in 2025. As you gather, I think we're all pretty excited about what's coming in 2026.

We've had a busy year, a lot of great acquisitions. Obviously, RJO very significant.

I think Abby and her team have really got their arms around that. We feel really good with the way that's tracking out, but Benchmark's also doing great, and some of these other acquisitions are all sort of kicking in.

We're very excited about the prospects for 2026, looking forward to that. With that, all I can say is, to those who celebrate and are in the States, happy Thanksgiving and happy holidays to everyone.

I guess next time we speak to you will be in the new year. Thanks again.