StoneX Q3 Earnings Call Focuses on RJO Synergies, Prime Growth

SNEX Moves RJO Integration Into Cross-Sell Phase

Chief financial officer William Dunaway said StoneX exited the quarter with roughly $37 million to $38 million of annualized RJO cost savings, up from about $32 million after the second quarter.

Dunaway expects the run rate to reach $45 million to $46 million by fiscal 2026 year-end and the originally announced $50 million target by the end of the first quarter of fiscal 2027.

Group CEO Philip Smith said the large U.S. FCM client integration was completed, while broader consolidation work remains on track to be substantially complete later this fiscal year. Revenue synergies will not be forced into a timeline because some products require client education and suitability review.

StoneX Makes Prime Services a Growth Hub

Smith devoted a major portion of the call to Global Prime Services, which serves more than 700 accounts with over $16 billion in client balances and generated nearly $140 million of net operating revenue over the past 12 months.

Management is extending the platform with U.S. equity swaps, fixed-income total return swaps and fixed-income prime brokerage, while its outsourced trading business has expanded into Asia.

Smith also highlighted cross-selling from the Benchmark and RJO integrations. StoneX is working on cross-product margining, collateral relief, integrated coverage and consolidated reporting to make broader client relationships easier to manage.

SNEX Scales Payments While Mix Pressures Rates

Payments average daily volume rose 20% year over year to a record $96 million, while payments revenue per million declined 7%. Smith tied the mix shift to X-Pay, which expanded system capacity and opened the platform to more high-volume, lower-value flows.

Smith said that mix should keep average revenue per transaction under pressure for the foreseeable future even as larger banks and payments companies direct more volume to StoneX.

Dunaway said payments pricing has stabilized from the initial reset and improved sequentially during fiscal 2026. Smith plans another payments deep dive on the first-quarter fiscal 2027 call.

StoneX Pushes AI Deeper Into Trading Workflows

Smith said StoneX has moved from early AI experimentation to an enterprise-wide rollout, with early gains showing up in its automated OTC derivatives infrastructure.

He cited faster enhancements to the electronic swap-matching platform, along with work in reconciliations, investigations, LC management, settlement instruction corrections and technology project execution.

Management plans a six-month AI update next quarter, including evidence around cost savings, vendor reductions, operating efficiency and faster delivery of new capabilities.

SNEX Keeps Float Growth and M&A Disciplined

Average client equity and FDIC sweep balances reached $16.2 billion in the quarter. Dunaway said those balances could grow at a high-single-digit rate after the RJO acquisition annualizes.

StoneX added $750 million of fixed-rate SOFR swaps, bringing the total position to $2.55 billion with an average rate of 3.51% and roughly 1.5 years of duration. Management estimated a 100-basis-point move in short-term rates would change annualized net income by $46.9 million.

Smith reiterated acquisition discipline, saying StoneX routinely reviews several transactions and favors deals that add geography, products or client relationships to the ecosystem.

StoneX Maintains a Diversified Growth Posture

Smith’s closing message centered on scale, client relevance and deeper relationships across products. He also stressed that results remained strong despite lower volatility than in the prior quarter.

Management’s priorities now center on finishing RJO consolidation, expanding cross-selling, building Prime and payments capacity, and using automation to support growth without equivalent infrastructure increases.

SNEX Rank and Style Scores Send Mixed Signal

SNEX carries a Zacks Rank #3 (Hold), with a Value Score of B, Growth Score of A, Momentum Score of D and VGM Score of A. Zacks’ Style Score framework treats A and B grades as more favorable, while the D Momentum Score is weaker on that style dimension. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Rank remains the primary signal, and a #3 rating does not carry the stronger combination associated with #1 and #2 (Buy) ranks paired with high Style Scores. The Rank can change as analyst earnings estimates are revised after the just-reported results.

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