StoneX Group Inc
For the period ended Mar 31, 2025. Filed May 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 7, 2025
SNEX$54.31+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-31; filed 2025-02-05.
0000913760-25-000024
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0000913760-25-000089
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 202 previous paragraphs and 268 current paragraphs.
109 unchanged; 73 reworded; 73 added; 17 removed; 3 previous and 13 current paragraphs rearranged.
Tables are not compared: 23 previous and 27 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (73)
Current report
Common Stock Split
Current report
On March 21, 2025, we completed a three-for-two split of our common stock, effected as a stock dividend entitling each shareholder of record to receive one additional share of common stock for every two shares owned. Additional shares issued as a result of the stock dividend were distributed after close of trading on March 21, 2025, to stockholders of record at the close of business on March 11, 2025. Cash was distributed in lieu of fractional shares based on the opening price of a share of common stock on March 12, 2025. All share and per share amounts contained herein have been retroactively adjusted for this stock split.
Current report
We achieved strong growth and diversified results in the second quarter of fiscal 2025, with a 15% increase in net operating revenues, combined with modest growth in fixed expenses leading to margin expansion resulting in a 35% increase in net income. We experienced an increase in transaction volumes across all of our product offerings, as well as growth in average client equity and average money market/FDIC sweep client balances as compared to the prior year.
Current report
•OTC derivatives RPC increased 4%, with improved performance in Brazil and European markets.
Current report
•Growth in securities rate per million (“RPM”), primarily due to heightened volatility in global equity markets.
Current report
Agreement to Acquire R.J. O’Brien
Current report
On April 14, 2025, we announced that we entered into a definitive agreement with RTS Merger Sub Inc., RTS Investor Corp., and Westmoor Trail Partners LLC to acquire R.J. O’Brien (“RJO”), the oldest futures brokerage in the U.S., for an equity value of approximately $900 million. The purchase price will be paid in a combination of cash in the amount of $625 million and shares of the Company’s common stock valuing $275 million. The number of shares will be based on the numerical average of the volume-weighted average trading price for one share for the ten trading days ending on, and including, the last trading day prior to the closing date, subject to a minimum and maximum per share price, as disclosed in the purchase agreement. We will also assume up to $143 million of RJO debt. We believe the acquisition significantly strengthens our position as a leading FCM and enhances our role as an essential part of the global financial market structure, offering institutional grade execution, clearing, custody, and prime brokerage across all asset classes. The acquisition is expected to expand our client float and add many introducing brokers to our network, while RJO’s clients benefit from our extensive range of markets, products, and services.
Current report
This transaction is expected to close in the second half of calendar 2025, subject to various approvals and customary closing conditions. In connection with the agreement, the Company has obtained commitments for up to $625 million in debt financing for the acquisition.
Current report
Agreement to Acquire Benchmark
Current report
On March 11, 2025, we announced that we entered into an agreement to acquire The Benchmark Company, LLC (“Benchmark”). Benchmark is a full-service investment banking firm offering a robust sales and trading platform, award-winning equity research, and a highly experienced investment banking team. Headquartered in New York City and operating nationwide, Benchmark has been delivering exceptional client service, market access, and deep market and industry expertise for over 35 years. We believe this acquisition will strengthen our offerings in equity and debt capital markets, with significant enhancements in equity research and investment banking.
Current report
The Benchmark acquisition is expected to close in the third calendar quarter of 2025 for a purchase price of approximately $75 million.
Current report
Operating revenues derived from listed derivatives increased $16.7 million, with our Commercial segment up $16.4 million and our Institutional segment up $0.3 million.
Current report
Operating revenues derived from OTC derivatives increased $7.3 million, principally driven by 11% and 4% increases in OTC derivative volumes and average rate per contract, respectively. This improved performance was primarily driven by increased client activity in European and Brazilian markets.
Current report
Operating revenues increased $297.9 million, or 19%, to $1,900.3 million in the six months ended March 31, 2025 compared to $1,602.4 million in the six months ended March 31, 2024.
Current report
Operating revenues from listed derivatives increased $19.3 million, with our Commercial and Institutional segments up $19.2 million and $0.1 million, respectively.
Current report
Operating revenues in OTC derivatives declined $0.6 million, principally driven by a 7% decline in the average rate per contract, which was partially offset by an 8% increase in OTC contract volumes.
Current report
Operating revenues from FX/CFD contracts increased $14.6 million, with increases of $12.7 million and $1.9 million in our Self-Directed/Retail and Institutional segments, respectively.
Current report
Operating revenues from payments declined by $1.8 million, principally driven by a 16% decline in RPM traded, which was partially offset by a 17% increase in the ADV.
Current report
Operating revenues from physical contracts increased $67.9 million, driven by increases of $34.6 million and $33.2 million in our physical agricultural and energy and precious metals businesses, respectively. Precious metals related operating revenues were favorably impacted by realized gains of $0.7 million in the six months ended March 31, 2025, on the sale of physical inventories carried at the lower of cost or net realizable value, for which losses on related derivative positions were recognized in prior periods.
Current report
Expenses were higher in the Equity and Debt Capital Markets businesses, principally related to the increased ADV, along with an increase in ADR conversion fees. Additionally, expenses were higher in our Exchange-Traded Futures & Options and Financial Ag and Energy businesses, principally related to the increase in contracts traded, and within our Correspondent Clearing business.
Current report
The increase in interest expense attributable to fixed income securities and securities borrowing was principally due to the growth in the size of the security repo and securities lending businesses. The increase in other direct interest expense attributable to operating segments principally resulted from an increase in the activities of our physical precious metals and commodities businesses.
Current report
Transaction-based clearing expenses
Current report
Introducing broker commissions
Current report
Interest expense
Current report
The increase in interest expense attributable to fixed income securities and securities borrowing was principally due to the growth in the size of the security repo and securities lending businesses. The increase in other direct interest expense attributable to operating segments principally resulted from an increase in our physical precious metals business activities and our equity securities trading activities.
Current report
Professional fees decreased $2.8 million, principally due to non-recurring insurance related recoveries on legal fees related to matters in which we are defendants.
Current report
Other Gains: The results of the three months ended March 31, 2024 included a nonrecurring gain related to proceeds of $6.9 million resulting from settlement of the Commodity Exchange Gold Futures and Options Trading matter, reported within our Commercial segment.
Current report
Compensation and Other Expenses: Compensation and other expenses increased $88.3 million, or 13%, to $771.1 million in the six months ended March 31, 2025 compared to $682.8 million in the six months ended March 31, 2024.
Current report
Compensation and Benefits:
Current report
Non-variable salaries increased within the Commercial segment, as well as within our overhead departments, principally due to the increase in headcount, as well as the impact of annual merit increases.
Current report
Other Expenses: Other non-compensation expenses increased $21.2 million, or 9%, to $251.5 million in the six months ended March 31, 2025 compared to $230.3 million in the six months ended March 31, 2024.
Current report
Professional fees increased $0.5 million, principally due to higher consulting fees, principally related to implementation projects in our Payments business and our overhead compliance department, partially offset by lower expense in our Self-Directed/Retail Forex business. Partially offsetting the increase in consulting fees, we had lower legal costs principally due to non-recurring insurance related recoveries on legal fees related to matters in which we are defendants.
Current report
Operating revenues increased $48.1 million, or 24%, to $248.6 million in the three months ended March 31, 2025 compared to $200.5 million in the three months ended March 31, 2024. Net operating revenues increased $29.1 million, or 18%, to $193.3 million in the three months ended March 31, 2025 compared to $164.2 million in the three months ended March 31, 2024.
Current report
Operating revenues derived from OTC derivatives increased $7.3 million, principally driven by 11% and 4% increases in OTC derivative volumes and average rate per contract, respectively. This improved performance was primarily driven by increased client activity in European and Brazilian markets.
Current report
Interest and fee income earned on client balances declined $3.4 million, with a 3% increase in average client equity more than offset by a decline in short term interest rates.
Current report
Variable expenses, excluding interest, expressed as a percentage of operating revenues were 34% and 36% for the three months ended March 31, 2025 and 2024, respectively.
Current report
For the three months ended March 31, 2025, we have calculated an allocation for overhead costs of $9.9 million for the Commercial segment as compared to a $8.9 million allocation in the three months ended March 31, 2024.
Current report
Operating revenues increased $82.0 million, or 21%, to $480.9 million in the six months ended March 31, 2025 compared to $398.9 million in the six months ended March 31, 2024. Net operating revenues increased $54.9 million, or 17%, to $382.5 million in the six months ended March 31, 2025 compared to $327.6 million in the six months ended March 31, 2024.
Current report
Operating revenues derived from listed derivatives increased $19.2 million, principally driven by 15% and 1% increases in listed derivative contract volumes and average rate per contract, respectively. This improved performance was primarily by increased client activity in agricultural, energy and base metals markets, with the increase in average rate per contract driven by a widening of spreads in LME base metals markets.
Current report
Operating revenues derived from physical transactions increased $67.0 million, principally driven by $34.6 million and $32.5 million increases in operating revenues in our physical agricultural and energy and precious metals businesses, respectively. Precious metals related operating revenues were unfavorably impacted by unrealized losses on derivative positions of $0.7 million and $10.0 million in the six months ended March 31, 2025 and 2024, respectively, related to physical inventories held at the lower of cost or net realizable value.
Showing the first 40 of 73 passages. Open the source sections for the rest.
Removed paragraphs (17)
Previous report
We achieved record net operating revenues and net income in the first quarter of fiscal 2025, which represented a strong start to the fiscal year. This was principally driven by continued growth in client engagement as we experienced an increase in transaction volumes across all of our product offerings, as well as very strong growth in operating revenues derived from physical contracts.
Previous report
•Lower OTC derivatives RPC due to diminished volatility in the agricultural and energy commodity markets.
Previous report
•Lower securities rate per million (“RPM”) due to diminished volatility, as well as continued growth in lower spread products including U.S. Treasuries and U.S. listed equities.
Previous report
Operating revenues derived from listed derivatives increased $2.6 million, with our Commercial segment up $2.8 million, which was partially offset by a $0.2 million decline in our Institutional segment.
Previous report
Increased interest expense attributable to trading activities principally resulted from an increase in our fixed income, securities borrowing, and physical business activities. The increase in interest expense attributable to securities borrowing was principally due to the growth in the size of the securities lending business. The increase in interest expense attributable to corporate funding was principally due to an increase in the aggregate amount of senior secured notes outstanding, related to the March 1, 2024 issuance of our 7.875% Senior Secured Notes due 2031 (the “Notes due 2031”), effectively replacing our 8.625% Senior Secured Notes due 2025. This increase was partially offset by lower average borrowings on our revolving credit facility.
Previous report
Professional fees increased $3.3 million, principally due to higher legal fees related to matters in which we are defendants, as well as related to advisory matters in the normal course of business. Additionally, the increase is related to higher consulting fees, principally within our Physical Ag & Energy business and across various overhead departments.
Previous report
Operating revenues increased $33.9 million, or 17%, to $232.3 million in the three months ended December 31, 2024 compared to $198.4 million in the three months ended December 31, 2023. Net operating revenues increased $25.8 million, or 16%, to $189.2 million in the three months ended December 31, 2024 compared to $163.4 million in the three months ended December 31, 2023.
Previous report
Operating revenues derived from OTC derivatives declined $7.9 million, principally driven by a 22% decline in the average rate per contract, primarily as a result of a decline in commodity volatility, which was partially offset by a 5% increase in OTC derivative volumes.
Previous report
Interest and fee income earned on client balances declined $0.6 million, with average client equity relatively flat with the prior year.
Previous report
Variable expenses, excluding interest, expressed as a percentage of operating revenues were 31% and 32% for the three months ended December 31, 2024 and 2023, respectively.
Previous report
For the three months ended December 31, 2024, we have calculated an allocation for overhead costs of $9.7 million for the Commercial segment as compared to a $8.8 million allocation in the three months ended December 31, 2023.
Previous report
Operating revenues increased $103.9 million, or 24%, to $539.6 million in the three months ended December 31, 2024 compared to $435.7 million in the three months ended December 31, 2023. Net operating revenues increased $25.4 million, or 17%, to $174.0 million in the three months ended December 31, 2024 compared to $148.6 million in the three months ended December 31, 2023.
Previous report
Operating revenues increased $31.6 million, or 34%, to $124.1 million in the three months ended December 31, 2024 compared to $92.5 million in the three months ended December 31, 2023. Net operating revenues increased $27.6 million, or 41%, to $94.6 million in the three months ended December 31, 2024 compared to $67.0 million in the three months ended December 31, 2023.
Previous report
Operating revenues decreased $2.5 million, or 4%, to $58.1 million in the three months ended December 31, 2024 compared to $60.6 million in the three months ended December 31, 2023. Net operating revenues decreased $2.8 million, or 5%, to $55.4 million in the three months ended December 31, 2024 compared to $58.2 million in the three months ended December 31, 2023.
Previous report
Segment income decreased $0.9 million, principally driven by the increase in operating revenues noted above as well as a $0.4 million decline in non-variable direct expenses.
Previous report
Also, there was a decrease in employee-elected deferred incentive, which is exchanged for restricted stock that will be amortized over a thirty-six month period following the grant date. Share-based compensation related to stock option expense increased principally due to the issuance of additional stock option awards during the three months ended December 31, 2024.
Previous report
Net cash provided by financing activities during the three months ended December 31, 2024 included significant inflows from payables to lenders under 90 days of $211.2 million, while we paid deferred acquisition payments of $20.1 million and had outflows for tax related withholdings of $3.7 million.
Reworded paragraphs (73)
Previous wording
The following discussion and analysis should be read in conjunction with the condensed consolidated financial statements and notes thereto appearing elsewhere in this report. This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “believe,”, “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the control of the Company, including adverse changes in economic, political and market conditions, including losses from our market-making and trading activities arising from counterparty failures, the loss of key personnel, the impact of increasing competition, the impact of changes in government regulation, the possibility of liabilities arising from violations of foreign, United States (“U.S.”) federal and U.S. state securities laws, the impact of changes in technology in the securities and commodities trading industries, and other risks discussed in our filings with the SEC, including Part I, Item 1A of our Annual Report on Form 10-K for the year ended September 30, 2024. Although we believe that our forward-looking statements are based upon reasonable assumptions regarding our business and future market conditions, there can be no assurances that our actual results will not differ materially from any results expressed or implied by our forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. We caution readers that any forward-looking statements are not guarantees of future performance.
Current wording
The following discussion and analysis should be read in conjunction with the condensed consolidated financial statements and notes thereto appearing elsewhere in this report. This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond the control of the Company, including adverse changes in economic, political and market conditions, including losses from our market-making and trading activities arising from counterparty failures, global trade policies and tariffs, the loss of key personnel, the impact of increasing competition, the impact of changes in government regulation, uncertainty concerning fiscal or monetary policies established by central banks and financial regulators, the possibility of liabilities arising from violations of foreign, United States (“U.S.”) federal and U.S. state securities laws, the impact of changes in technology in the securities and commodities trading industries, and other risks discussed in our filings with the SEC, including Part I, Item 1A of our Annual Report on Form 10-K for the year ended September 30, 2024. Although we believe that our forward-looking statements are based upon reasonable assumptions regarding our business and future market conditions, there can be no assurances that our actual results will not differ materially from any results expressed or implied by our forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. We caution readers that any forward-looking statements are not guarantees of future performance.
Previous wording
We operate a global financial services network that connects companies, organizations, traders and investors to the global market ecosystem through a unique blend of digital platforms, end-to-end clearing and execution services, high touch service and deep expertise. We strive to be the one trusted partner to our clients, providing our network, product and services to allow them to pursue trading opportunities, manage their market risks, make investments and improve their business performance. Our businesses are supported by our global infrastructure of regulated operating subsidiaries, our advanced technology platforms and our team of more than 4,600 employees as of December 31, 2024. We believe our client-first approach differentiates us from large banking institutions, engenders trust and has enabled us to establish market leading positions in a number of complex fields in financial markets around the world. For additional information, see Overview of Business and Strategy within “Item 1. Business” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024.
Current wording
We operate a global financial services network that connects companies, organizations, traders and investors to the global market ecosystem through a unique blend of digital platforms, end-to-end clearing and execution services, high touch service and deep expertise. We strive to be the one trusted partner to our clients, providing our network, products and services to allow them to pursue trading opportunities, manage their market risks, make investments and improve their business performance. Our businesses are supported by our global infrastructure of regulated operating subsidiaries, our advanced technology platforms and our team of more than 4,700 employees as of March 31, 2025. We believe our client-first approach differentiates us from large banking institutions, engenders trust and has enabled us to establish market leading positions in a number of complex fields in financial markets around the world. For additional information, see Overview of Business and Strategy within “Item 1. Business” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024.
Previous wording
In terms of revenue capture on our transactional volumes as compared to the prior fiscal year, we experienced:
Current wording
In terms of revenue capture on our transactional volumes as compared to the prior fiscal year quarter, we experienced:
Previous wording
•Rate per contract (“RPC”) on listed derivatives was flat with the prior year.
Current wording
•Rate per contract (“RPC”) on listed derivatives increased 2%.
Previous wording
•Higher FX/CFD RPM due to both improved spread retention and product mix.
Current wording
•Lower FX/CFD RPM due to both reduced spread retention and product mix.
Previous wording
Interest and fee income earned on client balances increased as we experienced increases in both average client equity and money market (“MM”)/FDIC client balances.
Current wording
Interest and fee income earned on client balances decreased modestly, as declines in short term interest rates were mostly offset by increases in both average client equity and money market/FDIC client balances.
Previous wording
Operating revenues increased $160.1 million, as we experienced growth across all but one of our operating segments, led by our Institutional segment which added $103.9 million, with our Commercial and Self-Directed/Retail also increasing $33.9 million and $31.6 million, respectively. Operating revenues in our Payments segment decreased $2.5 million.
Current wording
Operating revenues increased $137.8 million, as we experienced growth across all but one of our operating segments, led by our Institutional segment which added $97.8 million, with our Commercial and Payments segments also increasing $48.1 million and $1.0 million, respectively. Operating revenues in our Self-Directed/Retail declined $8.6 million.
Previous wording
Overall segment income increased $55.2 million with all but one of our segments experiencing growth versus the prior year led by our Self-Directed/Retail segment which added $28.2 million, while our Commercial and Institutional segments increased $15.0 million and $12.9 million, respectively. Payments segment income decreased $0.9 million.
Current wording
Overall segment income increased $25.0 million, led by our Commercial and Institutional segments which added $11.1 million and $25.2 million, respectively. Segment income in our Self-Directed/Retail segment declined $11.2 million, while our Payments segment income decreased $0.1 million.
Previous wording
expenses. Variable expenses were 52% of total expenses in the three months ended December 31, 2024 as compared to 54% in the three months ended December 31, 2023. Non-variable expenses, excluding bad debts, increased $41.5 million, principally due to higher fixed compensation and benefits, occupancy and equipment rental, depreciation and amortization, professional fees, and non-trading technology and support, with these increases related to the continuing build out and expansion of our product offering and geographic reach of our operating segments as well as overhead departments to support this growth. The increase in fixed compensation and benefits includes $5.8 million in severance and accelerated share-based compensation related to the departure of an executive officer.
Current wording
expenses. Variable expenses were 54% of total expenses in the three months ended March 31, 2025 as compared to 51% in the three months ended March 31, 2024. Non-variable expenses, excluding bad debts, increased $9.8 million, principally due to higher fixed compensation and benefits, depreciation and amortization, and non-trading technology and support, with these increases partially offset by lower professional fees and selling and marketing costs.
Previous wording
Income before tax includes gains of $5.7 million related to class action settlements in the three months ended December 31, 2024, which are included in Other gains.
Current wording
The prior year period includes gains of $6.9 million related to class action settlements, which are included in Other gains, in the three months ended March 31, 2024.
Previous wording
Net income increased $16.0 million to $85.1 million in the three months ended December 31, 2024. Diluted earnings per share was $2.54 for the three months ended December 31, 2024 compared to $2.13 in the three months ended December 31, 2023.
Current wording
Net income increased $18.6 million to $71.7 million in the three months ended March 31, 2025. Diluted earnings per share was $1.41 for the three months ended March 31, 2025 compared to $1.09 in the three months ended March 31, 2024.
Previous wording
Operating revenues increased $160.1 million, or 20%, to $944.3 million in the three months ended December 31, 2024 compared to $784.2 million in the three months ended December 31, 2023. The table above displays operating revenues disaggregated across the key products we provide to our clients.
Current wording
Operating revenues increased $137.8 million, or 17%, to $956.0 million in the three months ended March 31, 2025 compared to $818.2 million in the three months ended March 31, 2024. The table above displays operating revenues disaggregated across the key products we provide to our clients.
Previous wording
Operating revenues derived from FX/CFD contracts increased $24.0 million, as a result of a $22.4 million increase in our Self-Directed/Retail segment and a $1.6 million increase in Institutional segment FX contracts operating revenues.
Current wording
Operating revenues derived from FX/CFD contracts declined $9.4 million, as a result of a $9.7 million decrease in our Self-Directed/Retail segment, which was partially offset by a $0.3 million increase in Institutional segment FX contracts operating revenues.
Previous wording
Operating revenues from payments decreased $2.6 million, principally driven by a 17% decline in payments RPM, which was partially offset by a 12% increase in payments ADV.
Current wording
Operating revenues from payments increased $0.8 million, principally driven by a 20% increase in payments ADV, which was partially offset by a 15% decline in payments RPM.
Previous wording
Operating revenues derived from physical contracts increased $41.2 million, as a result of a $16.1 million increase in precious metals operating revenues, as well as a $23.3 million increase in physical agricultural and energy operating revenues. Precious metals related operating revenues during the three months ended December 31, 2024 were favorably impacted by realized gains of $4.7 million on the sale of physical inventories carried at the lower of cost or net realizable value, for which losses on related derivative positions were recognized in prior periods. Precious metals related operating revenues were unfavorably impacted during the three months ended December 31, 2023, by unrealized losses on derivative positions of $1.7 million, related to physical inventories held at the lower of cost or net realizable value.
Current wording
Operating revenues derived from physical contracts increased $26.7 million, as a result of a $15.6 million increase in precious metals operating revenues, as well as a $11.3 million increase in physical agricultural and energy operating revenues. Precious metals related operating revenues were unfavorably impacted by unrealized losses on derivative positions of $4.0 million and $9.1 million in the three months ended March 31, 2025 and 2024, respectively, related to physical inventories held at the lower of cost or net realizable value.
Previous wording
Operating revenues derived from securities transactions increased $85.6 million, principally due to a 40% increase in ADV. Carried interest on fixed income securities is a component of operating revenues, however interest expense associated with financing these positions is not. We deduct interest expense associated with our fixed income activities from operating revenues in the calculation of securities RPM in the table above in order to provide a more useful measure of the financial performance of our securities business. Net operating revenues derived from securities transactions increased $5.9 million, principally due to the increase in ADV noted above, which was partially offset by a 20% decline in the RPM resulting from the tightening of spreads and a change in product mix.
Current wording
Operating revenue from securities transactions increased $171.6 million, principally due to a 29% increase in securities ADV. Carried interest on fixed income securities is a component of operating revenues, however interest expense associated with financing these positions is not. We deduct interest expense associated with our fixed income activities from operating revenues in the calculation of securities RPM in the table above in order to provide a more useful measure of the financial performance of our securities business. Net operating revenues derived from securities transactions increased $38.1 million, principally driven by the increase in ADV noted above, which more than offset the 3% decline in RPM.
Previous wording
Interest and fee income earned on client balances, which is associated with our listed and OTC derivative businesses, as well as our Correspondent Clearing and Independent Wealth Management businesses, increased $9.2 million, principally as a result of an increase in average client equity and average money-market/FDIC sweep client balances of 7% and 13%, respectively.
Current wording
Interest and fee income earned on client balances, which is associated with our listed and OTC derivative businesses, as well as our Correspondent Clearing and Independent Wealth Management businesses, increased $6.7 million, principally as a result of increases of average client equity and average money-market/FDIC sweep client balances of 8% and 18%, respectively.
Previous wording
Introducing broker commissions were higher in our Independent Wealth Management business, principally due to increased revenues, and also higher in our Financial Ag and Energy business, principally due to increased volume and client mix traded. These increases were partially offset by lower introducing broker commissions in our Physical Ag and Energy business and lower payouts within our Self-Directed/Retail Forex business.
Current wording
Expenses were higher in our Financial Ag and Energy and LME businesses, principally due to increased volume and client mix traded. as well as in our Independent Wealth Management business, principally due to increased revenues, and higher payouts within our Self-Directed/Retail Forex business. These increases were partially offset by lower introducing broker commissions in our Exchange-Traded Futures & Options and Physical Ag and Energy businesses.
Previous wording
Expenses were higher in the Equity and Debt Capital Markets businesses, principally related to the increased ADV, and to a lesser extent higher expenses in our Exchange-Traded Futures & Options, Financial Ag and Energy and LME businesses, principally related to the increase in contracts traded. Partially offsetting these increases were modestly lower expenses in the Self-Directed/Retail Forex business.
Current wording
Expenses were higher in the Equity and Debt Capital Markets businesses, principally related to the increased ADV, along with an increase in ADR conversion fees. Additionally, expenses were higher in our Exchange-Traded Futures & Options, Financial Ag and Energy, and LME businesses, principally related to the increase in contracts traded, and within our Correspondent Clearing business.
Previous wording
Compensation and Other Expenses: Compensation and other expenses increased $55.0 million, or 17%, to $380.9 million in the three months ended December 31, 2024 compared to $325.9 million in the three months ended December 31, 2023.
Current wording
Compensation and Other Expenses: Compensation and other expenses increased $33.3 million, or 9%, to $390.2 million in the three months ended March 31, 2025 compared to $356.9 million in the three months ended March 31, 2024.
Previous wording
Non-variable salaries increased principally due to the increase in headcount resulting from business growth across our business lines, the growth in our operational and overhead support departments, and the impact of annual merit increases.
Current wording
Non-variable salaries increased within the Commercial segment, as well as within our overhead departments, principally due to the increase in headcount, as well as the impact of annual merit increases.
Previous wording
Other Expenses: Other non-compensation expenses increased $20.6 million, or 19%, to $128.4 million in the three months ended December 31, 2024 compared to $107.8 million in the three months ended December 31, 2023.
Current wording
Other Expenses: Other non-compensation expenses increased $0.6 million, or 0%, to $123.1 million in the three months ended March 31, 2025 compared to $122.5 million in the three months ended March 31, 2024.
Previous wording
Depreciation and amortization increased $4.5 million, principally due to incremental depreciation expense from internally developed software placed into service, partially offset by lower amortization, as certain intangibles, recognized as part the acquisition of Gain Capital Holdings, Inc. in fiscal 2020, became fully amortized during fiscal 2024.
Current wording
Depreciation and amortization increased $3.3 million, principally due to incremental depreciation expense from internally developed software placed into service, partially offset by lower amortization, as certain intangibles, recognized as part the acquisition of Gain Capital Holdings, Inc. in fiscal 2020, became fully amortized during fiscal 2024.
Previous wording
Provision for Taxes: The effective income tax rate was 27% and 28% in the three months ended December 31, 2024 and 2023, respectively. The effective tax rate for the three months ended December 31, 2024 and 2023 was higher than the U.S. federal statutory rate of 21% due to U.S. state and local taxes, global intangible low taxed income (“GILTI”), U.S. and foreign permanent differences, and the amount of foreign earnings taxed at higher rates.
Current wording
Provision for Taxes: The effective income tax rate was 26% and 26% in the three months ended March 31, 2025 and 2024, respectively. The effective tax rate for the three months ended March 31, 2025 and 2024 was higher than the U.S. federal statutory rate of 21% due to U.S. state and local taxes, global intangible low taxed income (“GILTI”), U.S. and foreign permanent differences, and the amount of foreign earnings taxed at higher rates.
Previous wording
Employee benefits and other compensation increased principally due to higher healthcare benefits, payroll taxes, and retirement costs driven by the increased headcount, and a decrease in employee-elected deferred incentive. The three months ended December 31, 2024 also included $0.9 million in accelerated long-term incentive due to the departure of an executive officer.
Current wording
Employee benefits and other compensation increased principally due to higher payroll taxes, retirement costs, and healthcare benefits principally related to the increase in headcount, as well as a decrease in employee-elected deferred incentive, which is exchanged for restricted stock that is amortized over a thirty-six month period following the grant date. The six months ended March 31, 2025 also included $0.9 million in accelerated long-term incentive due to the departure of an executive officer.
Previous wording
Share-based compensation, which contains stock option and restricted stock expense, increased principally due to the issuance of additional stock option awards during the first quarter of 2024, as well as from the increase in the value of previously granted restricted stock awards related to employee-elected and statutorily-required deferred incentive, which is exchanged for restricted stock that is amortized over a thirty-six month period following the grant date. The three months ended December 31, 2024 also included $1.1 million in accelerated share-based compensation due to the departure of the executive officer.
Current wording
Share-based compensation, which contains stock option and restricted stock expense, increased principally due to the issuance of additional stock option awards during the first quarter of 2024, as well as from increased restricted stock amortization related to employee-elected and statutorily-required deferred incentive, which results in cash exchanged for restricted stock that is amortized over a thirty-six month period following the grant date. The six months ended March 31, 2025 also included $1.1 million in accelerated share-based compensation due to the departure of the executive officer.
Previous wording
During the three months ended December 31, 2024, severance costs were related to the departure of several employees, including the executive officer mentioned above.
Current wording
During the six months ended March 31, 2025, severance costs were $7.2 million, relating to the departure of several employees, including the executive officer mentioned above.
Previous wording
Occupancy and equipment rental increased $4.8 million, principally due to the three months ended December 31, 2023 including a partial refund of property rates covering prior years in London. The increase is also due to additional office space acquired in London, as we consolidate office space in order to support our current and anticipated future growth, as well as higher costs in India and the U.S.
Current wording
Occupancy and equipment rental costs increased $4.8 million, principally due to the six months ended March 31, 2024 including a partial refund of property rates covering prior years in London. The increase is also due to additional office space acquired in London, as we consolidate office space in order to support our current and anticipated future growth, as well as higher costs in India and the U.S.
Previous wording
During the three months ended December 31, 2024, we recorded bad debts, net of recoveries of $1.8 million, principally related to bad debt expense of $0.8 million of client receivables in the Physical Ag & Energy business of our Commercial segment, and client trading deficits in our Self-Directed/Retail segment and Financial Ag & Energy business of our Commercial segment of
Current wording
During the six months ended March 31, 2025, we recorded bad debts, net of recoveries of $1.9 million, principally related to bad debt expense of $0.6 million of client receivables in the Physical Ag & Energy business of our Commercial segment, and client trading deficits in our Self-Directed/Retail segment and Financial Ag & Energy business of our Commercial segment of $1.1 million and $0.6 million, respectively, which were partially offset by recoveries of $0.2 million within both the LME business of our Commercial segment and our Institutional segment. During the six months ended March 31, 2024, we recorded net recoveries of bad debts of $0.7 million, principally related to recoveries within our Institutional segment of $1.8 million, which were partially offset by bad debt expense of $1.0 million of client receivables in the Payments segment and $0.1 million within the Self-Directed/Retail segment.
Previous wording
Other Gains: The results of the three months ended December 31, 2024 include nonrecurring gains of $5.7 million, resulting from proceeds received from class action settlements, reported within the Self-Directed/Retail and Institutional segments.
Current wording
Other Gains: The results of the six months ended March 31, 2025 include nonrecurring gains of $5.7 million, resulting from proceeds received from class action settlements, reported within the Self-Directed/Retail and Institutional segments. The results of the six months ended March 31, 2024 included nonrecurring gains of $6.9 million resulting from proceeds received from class action settlements, reported within the Commercial segment.
Previous wording
Our operating segments are based principally on the nature of the clients we serve (commercial, institutional, and self-directed/retail), and a fourth operating segment, our payments business. We manage our business in this manner due to our large global footprint, in which we have more than 4,600 employees allowing us to serve clients in more than 180 countries.
Current wording
Our operating segments are based principally on the nature of the clients we serve (commercial, institutional, and self-directed/retail), and a fourth operating segment, our payments business. We manage our business in this manner due to our large global footprint, in which we have more than 4,700 employees allowing us to serve clients in more than 180 countries.
Previous wording
Operating revenues derived from listed derivatives increased $2.8 million, principally driven by a 11% increase in listed derivatives contract volumes, primarily in agricultural, energy and base metal commodity markets, which was partially offset by a 5% decline in the average rate per contract.
Current wording
Operating revenues derived from listed derivatives increased $16.4 million, principally driven by 19% and 7% increases in listed derivatives contract volumes and average rate per contract, respectively. This improved performance was primarily driven by increased client activity in agricultural, energy and base metals markets, with the increase in average rate per contract driven by a widening of spreads in LME base metals markets.
Previous wording
Operating revenues derived from physical contracts increased $39.5 million, as a result of a $16.1 million increase in precious metals operating revenues, as well as a $23.3 million increase in physical agricultural and energy operating revenues. Precious metals related operating revenues during the three months ended December 31, 2024 were favorably impacted by realized gains of $2.8 million on the sale of physical inventories carried at the lower of cost or net realizable value, for which losses on related derivative positions were recognized in prior periods. Precious metals related operating revenues were unfavorably impacted during the three months ended December 31, 2023, by unrealized losses on derivative positions of $1.4 million, related to physical inventories held at the lower of cost or net realizable value.
Current wording
Operating revenues derived from physical contracts increased $27.5 million, as a result of a $16.4 million increase in precious metals operating revenues, as well as an $11.3 million increase in physical agricultural and energy operating revenues. Precious metals related operating revenues were unfavorably impacted by unrealized losses on derivative positions of $3.5 million and $8.5 million in the three months ended March 31, 2025 and 2024, respectively, related to physical inventories held at the lower of cost or net realizable value. These effects, were partially offset by increased client activity related to market volatility driven by concerns surrounding potential tariffs to be imposed by the U.S. government on imported precious metals. The growth in physical agricultural and energy operating revenues were primarily driven by heightened client activity in global cocoa markets.
Previous wording
Segment income increased $15.0 million, principally due to the growth in operating revenues, which was partially offset by a $4.3 million increase in non-variable direct expenses. The increase in non-variable direct expenses was principally driven by a $1.5 million increase in fixed compensation and benefits and a $1.3 million increase in bad debt expense.
Current wording
Segment income increased $11.1 million, principally due to the growth in operating revenues, which was partially offset by a $14.6 million increase in interest expense, primarily related to our precious metals activities, as well as a $2.6 million increase in non-variable direct expenses. The increase in non-variable direct expenses was principally driven by a $3.2 million increase in fixed compensation and benefits. Segment income for the three months ended March 31, 2024 include a nonrecurring gain of $6.9 million related to proceeds from a settlement in the Commodity Exchange Gold Futures and Options Trading matter.
Previous wording
Operating revenues derived from OTC derivatives declined $7.9 million, principally driven by a 22% decline in the average RPC, which was partially offset by a 6% increase in OTC derivative contract volumes.
Current wording
Operating revenues derived from OTC transactions declined $0.6 million, principally driven by a 7% decline in the average rate per contract, which more than offset a 8% increase in OTC derivative contract volumes.
Previous wording
Interest and fee income earned on client balances, which is associated with our listed derivative and correspondent clearing businesses increased $9.8 million, principally driven by 9% and 13% increases in average client equity and average money market / FDIC sweep client balances, respectively.
Current wording
Interest and fee income earned on client balances, which is associated with our listed derivative and correspondent clearing businesses increased $1.0 million, principally driven by 12% and 23% increases in average client equity and average money market / FDIC sweep client balances, respectively, which was partially offset by a decline in short term interest rates.
Previous wording
Primarily as a result of the increase in securities ADV, interest expense increased $68.0 million, with interest expense directly associated with serving as an institutional dealer in fixed income securities increasing $51.5 million and interest expense directly attributable to securities lending activities increasing $7.4 million. Partially offsetting these increases, interest paid to clients decreased $5.1 million.
Current wording
Primarily as a result of the increase in securities ADV, interest expense increased $46.3 million, with interest expense directly associated with serving as an institutional dealer in fixed income securities increasing $34.6 million, to $232.6 million and interest expense directly attributable to securities lending activities increasing $7.4 million, to $21.4 million. Partially offsetting these increases, interest paid to clients decreased $2.5 million to $24.4 million.
Previous wording
Interest and fee income earned on client balances was $0.7 million in both the three months ended December 31, 2024 and 2023.
Current wording
Variable expenses, excluding interest, expressed as a percentage of operating revenues were 24% in both the three months ended March 31, 2025 and 2024.
Previous wording
For the three months ended December 31, 2024, we have calculated an allocation for overhead costs of $14.8 million for the Institutional segment as compared to a $12.8 million allocation in the three months ended December 31, 2023.
Current wording
For the three months ended March 31, 2025, we have calculated an allocation for overhead costs of $15.1 million for the Institutional segment as compared to a $13.3 million allocation in the three months ended March 31, 2024.
Previous wording
Operating revenues derived from securities transactions increased $79.9 million, principally driven by a 40% increase in the ADV of securities traded, primarily as a result of increased client activity in both equity and fixed income markets. The securities RPM decreased 20%, principally due to a tightening of spreads and a change in product mix.
Current wording
Operating revenues derived from securities transactions increased $163.8 million, principally driven by a 29% increase in the ADV of securities traded, primarily as a result of increased client activity in both equity and fixed income markets. The securities RPM decreased 3%, principally due to a tightening of spreads and a change in product mix.
Showing the first 40 of 73 pairs. Open the source sections for the rest.
Rearranged current paragraphs (13)
Current report — wording carried from elsewhere
Operating revenues derived from securities transactions increased $86.0 million, principally due to a 19% increase in ADV. Carried interest on fixed income securities is a component of operating revenues, however interest expense associated with financing these positions is not. We deduct interest expense associated with our fixed income activities from operating revenues in the calculation of securities RPM in the table above in order to provide a more useful measure of the financial performance of our securities business. Net operating revenues derived from securities transactions increased $32.2 million, principally due to the increase in ADV noted above as well as a 17% increase in the securities RPM primarily driven by heightened volatility in equity markets.
Current report — wording carried from elsewhere
Interest and fee income earned on client balances, which is associated with our listed and OTC derivative businesses, as well as our Correspondent Clearing and Independent Wealth Management businesses, declined $2.5 million, principally as a result of a decline in short term interest rates, which was partially offset by increases in average client equity and average money-market/FDIC sweep client balances of 9% and 23%, respectively.
Current report — wording carried from elsewhere
Precious metals related operating revenues were unfavorably impacted during the six months ended March 31, 2024, by unrealized losses on derivative positions of $10.8 million, related to physical inventories carried at the lower of cost or net realizable value.
Current report — wording carried from elsewhere
Expenses were higher in the Independent Wealth Management business, principally driven by increased revenues, and higher in the Financial Ag and Energy business, principally due to increased volume and mix of clients. These increases were partially offset by lower introducing broker commissions in our Exchange-Traded Futures & Options and Physical Ag and Energy businesses.
Current report — wording carried from elsewhere
Share-based compensation, which contains stock option and restricted stock expense, increased principally due to the increase in the value of previously granted restricted stock awards related to employee-elected and statutorily-required deferred incentive, which is exchanged for restricted stock that is amortized over a thirty-six month period following the grant date.
Current report — wording carried from elsewhere
Depreciation and amortization increased $7.8 million, principally due to incremental depreciation expense from internally developed software placed into service, partially offset by lower amortization, as certain intangibles, recognized as part the acquisition of Gain Capital Holdings, Inc. in fiscal 2020, became fully amortized during fiscal 2024.
Current report — wording carried from elsewhere
Provision for Taxes: Our effective income tax rate was 27% and 27% for six months ended March 31, 2025 and 2024, respectively. The effective income tax rate was higher than the U.S. federal statutory rate of 21% due to U.S. state and local taxes, changes in valuation allowances, U.K. bank tax, U.S. permanent differences, GILTI, and the amount of foreign earnings taxed at higher tax rates.
Current report — wording carried from elsewhere
Operating revenues derived from listed derivatives were relatively flat with the prior year quarter.
Current report — wording carried from elsewhere
As a result of the increase in short-term interest rates and the increase in the ADV, interest expense increased $114.3 million, with interest expense directly associated with serving as an institutional dealer in fixed income securities increasing $86.1 million, to $456.2 million and interest expense directly attributable to securities lending activities increasing $14.8 million to $43.4 million. Partially offsetting these increases, interest paid to clients decreased $7.6 million to $51.3 million.
Current report — wording carried from elsewhere
The increase in non-variable compensation was partially related to a reorganization of our IT personnel, including the move of certain development teams out of discrete business lines and into centralized shared services, resulting in increased compensation expense in overhead, and lower compensation expense in the discrete business lines, which were partially offset with non-variable charges to the business lines based on use of IT resources. Additionally, the increase in non-variable compensation was impacted by an increase in headcount, as well as the impact of annual merit increases. Share-based compensation related to stock option expense increased principally due to the issuance of additional stock option awards during December 2024.
Current report — wording carried from elsewhere
Occupancy and equipment rental increased $3.8 million, principally due to the prior year including a partial refund of property rates covering prior year in London, as well as higher utility costs.
Current report — wording carried from elsewhere
The regulations discussed above limit funds available for dividends to us. As a result, we may be unable to access our operating subsidiaries’ funds when we need them.
Current report — wording carried from elsewhere
In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses (“ASU 2024-03”). The guidance primarily will require enhanced disclosures about certain types of expenses. ASU 2024-03 is effective for the
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Occupancy and equipment rental costs increased $5.3 million, principally due to the three months ended December 31, 2023 including a partial refund of property rates covering prior years in London. The increase is also due to additional office space acquired in London, as we consolidate office space in order to support our current and anticipated future growth, as well as higher costs in India and the U.S.
Previous report — wording carried elsewhere
$0.5 million and $0.4 million, respectively. During the three months ended December 31, 2023, we recorded net recoveries of bad debts of $0.3 million, principally related to recoveries within our Institutional segment.
Previous report — wording carried elsewhere
30, 2026. Early adoption is permitted. The guidance should be applied retrospectively unless impracticable. We are currently evaluating the impact that adopting this guidance will have on our disclosures.