StoneX Group Inc. Q1 FY2025 earnings call

• Strong first quarter results: Net income $85.1M, diluted EPS $2.54, up 23% and 19% y-o-y; operating revenues $944.3M, up 20% y-o-y. - Segment performances: All segments up in net operating revenue and segment income except payments. - Strategic initiatives: Acquired Oktop Finance, received virtual asset service provider approval in Ireland, acquired JBR Recovery, launching CME-approved vault in NY. - Management transition: Sean O'Connor transitioned to Executive Vice Chairman, Philip Smith and Charles Lyons took on day-to-day leadership as CEO and President respectively.

Commercial segment: Net operating revenue grew 16% primarily driven by strong physical contracts performance, segment income up 17%; sequential net operating revenues up 13%, segment income up 15%. Institutional segment: Net operating revenues and segment income growth of 17% and 20% respectively; growth driven by revenue and $4.3M increase in interest and fee income on client balances; sequential relatively flat. Self-directed retail: Record quarter with net operating revenues up 41% and segment income up 98% due to increases in average daily volume and rate per million in FX CFD contracts; sequential net operating revenues up 24%, segment income up 91%. Payments segment: Net operating revenues down 5%, segment income down 3% principally due to tighter FX spreads in key payment corridors; sequential net operating revenues up 21%, segment income up 38%.

Continues to be well-positioned to capitalize on industry transformation driven by regulatory changes and market consolidation; strategic initiatives like acquisitions and technology investments expected to drive growth; optimistic about trajectory despite market conditions.

Market volatility affecting spread capture in certain areas (e.g., OTC derivatives and payments); dollar scarcity in payment corridors impacting revenues; regulatory changes potentially affecting business operations.

Q: Talk about drivers and sustainability of physical contracts revenue A: Driven by precious metals volatility, acquisition of CDI, and cocoa price volatility; sustainability tied to continued volatility in precious metals and cocoa markets Q: Sustainability of self-directed retail results and outlook A: Revenue capture improved, future growth from expanding product suite and adding clients; focus on stabilizing revenue capture and expanding into new asset classes Q: Rates coming down year over year on quarter in payments and outlook A: Diversity of payment corridors maintained; volume increase is controllable factor, unable to predict dollar scarcity in specific regions but focus on increasing volume and client base