StoneX Group Inc. Reports Fiscal 2024 Third Quarter Financial Results

StoneX Group Inc.

Quarterly Operating Revenues of $913.7 million, up 18%

Record Net Operating Revenues of $468.5 million, up 7%

Quarterly Net Income of $61.9 million, ROE of 15.7%

Quarterly Diluted EPS of $1.88 per share, down 13%

NEW YORK, Aug. 06, 2024 (GLOBE NEWSWIRE) -- StoneX Group Inc. (the “Company”; NASDAQ: SNEX), 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, today announced its financial results for the fiscal year 2024 third quarter ended June 30, 2024.

Sean M. O’Connor, the Company’s CEO, stated, “We achieved record net operating revenues this quarter as we experienced continued strong client engagement with increased volumes across nearly all of our operating segments and products despite low volatility and difficult trading conditions. For the fiscal third quarter, net income was $61.9 million, an 11% decline versus a strong prior year quarter with diluted EPS of $1.88, representing a 15.7% return on equity for the quarter and 16.0% for the trailing twelve months, exceeding our 15% targeted ROE. We believe our expanding global footprint and diversified product offering positions us to deliver superior service to our clients and returns to our shareholders and are well poised to benefit from increased volatility and better trading conditions.”

StoneX Group Inc. Summary Financials

Consolidated financial statements for the Company will be included in our Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission (the “SEC”). Upon filing, the Quarterly Report on Form 10-Q will also be made available on the Company’s website at www.stonex.com.

	Three Months Ended June 30,											Nine Months Ended June 30,
(Unaudited) (in millions, except share and per share amounts)		2024				2023			% Change				2024				2023			% Change
Revenues:
Sales of physical commodities	$	26,196.2			$	14,319.2			83	%		$	66,339.0			$	42,228.8			57	%
Principal gains, net		305.6				300.0			2	%			881.2				810.8			9	%
Commission and clearing fees		143.0				126.8			13	%			408.9				375.5			9	%
Consulting, management, and account fees		45.3				39.2			16	%			124.0				119.7			4	%
Interest income		379.6				262.7			44	%			995.7				685.7			45	%
Total revenues		27,069.7				15,047.9			80	%			68,748.8				44,220.5			55	%
Cost of sales of physical commodities		26,156.0				14,271.0			83	%			66,232.7				42,084.4			57	%
Operating revenues		913.7				776.9			18	%			2,516.1				2,136.1			18	%
Transaction-based clearing expenses		81.0				66.7			21	%			233.8				203.2			15	%
Introducing broker commissions		43.1				43.4			(1	)%			124.2				122.4			1	%
Interest expense		297.0				216.0			38	%			792.2				549.0			44	%
Interest expense on corporate funding		24.1				14.9			62	%			53.5				44.2			21	%
Net operating revenues		468.5				435.9			7	%			1,312.4				1,217.3			8	%
Compensation and other expenses:
Variable compensation and benefits		140.6				130.5			8	%			386.2				370.8			4	%
Fixed compensation and benefits		116.9				96.1			22	%			323.8				287.3			13	%
Trading systems and market information		20.1				19.4			4	%			58.2				54.9			6	%
Professional fees		20.0				13.9			44	%			55.0				41.1			34	%
Non-trading technology and support		18.7				13.7			36	%			53.6				44.7			20	%
Occupancy and equipment rental		13.5				10.0			35	%			34.8				29.5			18	%
Selling and marketing		12.8				13.7			(7	)%			40.1				40.8			(2	)%
Travel and business development		6.9				6.2			11	%			21.1				17.7			19	%
Communications		1.9				2.4			(21	)%			6.4				6.7			(4	)%
Depreciation and amortization		12.3				13.8			(11	)%			35.8				39.6			(10	)%
Bad debts, net of recoveries		0.5				6.3			(92	)%			(0.2	)			10.0			n/m
Other		18.1				15.4			18	%			50.3				50.1			—	%
Total compensation and other expenses		382.3				341.4			12	%			1,065.1				993.2			7	%
Gain on acquisition and other gain		1.8				—			n/m				8.7				23.5			(63	)%
Income before tax		88.0				94.5			(7	)%			256.0				247.6			3	%
Income tax expense		26.1				25.0			4	%			71.9				59.8			20	%
Net income	$	61.9			$	69.5			(11	)%		$	184.1			$	187.8			(2	)%
Earnings per share:(1)
Basic	$	1.95			$	2.24			(13	)%		$	5.83			$	6.09			(4	)%
Diluted	$	1.88			$	2.17			(13	)%		$	5.64			$	5.88			(4	)%
Weighted-average number of common shares outstanding:(1)
Basic		30,643,270				30,060,251			2	%			30,449,286				29,870,136			2	%
Diluted		31,743,032				30,981,451			2	%			31,487,370				30,867,473			2	%
Return on equity (“ROE”)(2)		15.7	%			21.6	%						16.4	%			20.9	%
ROE on tangible book value(2)		16.5	%			23.1	%						17.4	%			22.5	%
n/m = not meaningful to present as a percentage

(1)		On November 24, 2023, the Company effected a three-for-two stock dividend to stockholders of record as of November 17, 2023. The stock split increased the number of shares of common stock outstanding. All share and per share amounts have been retroactively adjusted for the stock split.
(2)		The Company calculates ROE on stated book value based on net income divided by average stockholders’ equity. For the calculation of ROE on tangible book value, the amount of goodwill and intangibles, net is excluded from stockholders’ equity.

The following table presents our consolidated operating revenues by segment for the periods indicated.

	Three Months Ended June 30,											Nine Months Ended June 30,
(in millions)		2024				2023			% Change				2024				2023			% Change
Segment operating revenues represented by:
Commercial	$	262.2			$	252.7			4	%		$	661.1			$	655.2			1	%
Institutional		508.9				381.1			34	%			1,408.0				1,087.1			30	%
Retail		96.2				91.5			5	%			290.7				240.6			21	%
Payments		51.1				53.2			(4	)%			161.0				158.4			2	%
Corporate		8.3				8.6			(3	)%			31.9				23.9			33	%
Eliminations		(13.0	)			(10.2	)		27	%			(36.6	)			(29.1	)		26	%
Operating revenues	$	913.7			$	776.9			18	%		$	2,516.1			$	2,136.1			18	%

The following table presents our consolidated income by segment for the periods indicated.

	Three Months Ended June 30,											Nine Months Ended June 30,
(in millions)		2024				2023			% Change				2024				2023			% Change
Segment income represented by:
Commercial	$	125.7			$	117.0			7	%		$	298.5			$	302.7			(1	)%
Institutional		62.2				45.1			38	%			188.7				162.9			16	%
Retail		27.6				17.2			60	%			89.5				17.8			n/m
Payments		28.2				28.6			(1	)%			87.8				76.8			14	%
Total segment income	$	243.7			$	207.9			17	%		$	664.5			$	560.2			19	%
Reconciliation of segment income to income before tax:
Segment income	$	243.7			$	207.9			17	%		$	664.5			$	560.2			19	%
Net operating revenues (loss) within Corporate (1)		(26.9	)			(14.1	)		91	%			(55.3	)			(47.0	)		18	%
Overhead costs and expenses		(128.8	)			(99.3	)		30	%			(353.2	)			(289.1	)		22	%
Gain on acquisition		—				—			—	%			—				23.5			(100	)%
Income before tax	$	88.0			$	94.5			(7	)%		$	256.0			$	247.6			3	%

(1)		Includes interest expense on corporate funding.

Key Operating Metrics

The tables below present operating revenues disaggregated across the key products we provide to our clients and select operating data and metrics used by management in evaluating our performance, for the periods indicated.

	Three Months Ended June 30,											Nine Months Ended June 30,
		2024				2023			% Change				2024				2023			% Change
Operating Revenues (in millions):
Listed derivatives	$	130.5			$	107.6			21	%		$	351.4			$	317.9			11	%
Over-the-counter (“OTC”) derivatives		66.2				71.9			(8	)%			163.7				172.3			(5	)%
Securities		374.0				272.4			37	%			1,030.9				755.7			36	%
FX / Contracts for difference (“CFD”) contracts		76.5				72.1			6	%			231.4				182.7			27	%
Payments		50.0				52.7			(5	)%			157.8				155.4			2	%
Physical contracts		67.3				81.0			(17	)%			164.6				194.8			(16	)%
Interest / fees earned on client balances		115.9				92.2			26	%			318.5				281.8			13	%
Other		38.0				28.6			33	%			102.5				80.7			27	%
Corporate		8.3				8.6			(3	)%			31.9				23.9			33	%
Eliminations		(13.0	)			(10.2	)		27	%			(36.6	)			(29.1	)		26	%
	$	913.7			$	776.9			18	%		$	2,516.1			$	2,136.1			18	%
Volumes and Other Select Data:
Listed derivatives (contracts, 000’s)		52,736				39,044			35	%			157,299				120,831			30	%
Listed derivatives, average rate per contract (1)	$	2.39			$	2.62			(9	)%		$	2.13			$	2.47			(14	)%
Average client equity - listed derivatives (millions)	$	5,957			$	6,459			(8	)%		$	6,063			$	7,301			(17	)%
OTC derivatives (contracts, 000’s)		959				1,063			(10	)%			2,584				2,638			(2	)%
OTC derivatives, average rate per contract	$	69.03			$	67.75			2	%		$	63.53			$	65.73			(3	)%
Securities average daily volume (“ADV”) (millions)	$	7,358			$	5,378			37	%		$	7,013			$	5,121			37	%
Securities rate per million (“RPM”) (2)	$	239			$	262			(9	)%		$	256			$	314			(18	)%
Average money market / FDIC sweep client balances (millions)	$	968			$	1,269			(24	)%		$	1,025			$	1,393			(26	)%
FX / CFD contracts ADV (millions)	$	10,861			$	10,513			3	%		$	10,744			$	12,278			(12	)%
FX / CFD contracts RPM	$	111			$	107			4	%		$	113			$	79			43	%
Payments ADV (millions)	$	69			$	65			6	%		$	69			$	68			1	%
Payments RPM	$	11,264			$	12,907			(13	)%		$	12,053			$	12,049			—	%

(1)		Give-up fee revenues, related to contract execution for clients of other FCMs, as well as cash and voice brokerage revenues are excluded from the calculation of listed derivatives, average rate per contract.
(2)		Interest expense associated with our fixed income activities is deducted from operating revenues in the calculation of Securities RPM while interest income related to securities lending is excluded.

Interest expense

	Three Months Ended June 30,											Nine Months Ended June 30,
(in millions)		2024				2023			% Change				2024				2023			% Change
Interest expense attributable to:
Trading activities:
Institutional dealer in fixed income securities	$	229.1			$	156.4			46	%		$	599.2			$	372.1			61	%
Securities borrowing		16.6				11.4			46	%			45.2				27.6			64	%
Client balances on deposit		31.7				34.0			(7	)%			99.4				107.7			(8	)%
Short-term financing facilities of subsidiaries and other direct interest of operating segments		19.6				14.2			38	%			48.4				41.6			16	%
		297.0				216.0			38	%			792.2				549.0			44	%
Corporate funding		24.1				14.9			62	%			53.5				44.2			21	%
Total interest expense	$	321.1			$	230.9			39	%		$	845.7			$	593.2			43	%

The increase in interest expense attributable to corporate funding was principally due to incremental interest from the March 1, 2024 issuance of our 7.875% Senior Secured Notes due 2031 (the “Notes due 2031”), partially offset by lower average borrowings on our revolving credit facility. While funds from the issuance of the Notes due 2031 were used to redeem the 8.625% Senior Secured Notes due 2025 (the “Notes due 2025”), the redemption did not occur until June 17, 2024, in order to redeem those notes at par. Upon completion of the redemption of the Notes due 2025, we recognized a $3.7 million loss on the extinguishment of debt related to the write-off of unamortized original issue discount and deferred financing costs, which we have classified as a component of ‘Interest expense on corporate funding’.

Variable vs. Fixed Expenses
The table below sets forth our variable expenses and non-variable expenses as a percentage of total non-interest expenses for the periods indicated.

	Three Months Ended June 30,														Nine Months Ended June 30,
(in millions)		2024			% of Total				2023			% of Total				2024			% of Total				2023			% of Total
Variable compensation and benefits	$	140.6			28	%		$	130.5			29	%		$	386.2			27	%		$	370.8			28	%
Transaction-based clearing expenses		81.0			16	%			66.7			15	%			233.8			16	%			203.2			15	%
Introducing broker commissions		43.1			8	%			43.4			10	%			124.2			9	%			122.4			9	%
Total variable expenses		264.7			52	%			240.6			54	%			744.2			52	%			696.4			52	%
Fixed compensation and benefits		116.9			23	%			96.1			21	%			323.8			23	%			287.3			22	%
Other fixed expenses		124.3			25	%			108.5			24	%			355.3			25	%			325.1			25	%
Bad debts, net of recoveries		0.5			—	%			6.3			1	%			(0.2	)		—	%			10.0			1	%
Total non-variable expenses		241.7			48	%			210.9			46	%			678.9			48	%			622.4			48	%
Total non-interest expenses	$	506.4			100	%		$	451.5			100	%		$	1,423.1			100	%		$	1,318.8			100	%

Impact of the Gain on Acquisition and Related Amortization

The Company acquired CDI-Societe Cotonniere De Distribution S.A (“CDI”) effective October 31, 2022. The results of the nine months ended June 30, 2023 include a non-taxable gain of $23.5 million related to the acquisition. The results of the three and nine months ended June 30, 2024 and 2023 include amortization expense related to identified intangible assets from this acquisition.

The Company acquired Gain Capital Holdings, Inc. effective August 1, 2020. The results of the three and nine months ended June 30, 2024 and 2023 include amortization expense related to identified intangible assets from this acquisition.

When evaluating acquisitions, management considers the gain on acquisition and the amortization expense related to the intangible assets identified and recorded as part of these acquisitions.

The following table presents income before tax, income tax expense, and net income as reported in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The table also presents adjusted income before tax, adjusted income tax expense, and adjusted net income, which are non-GAAP financial measures. The “adjusted” non-GAAP financial measures reflect each item after removing the impact of the gain on acquisition and the related amortization expense of the intangible assets for the three and nine months ended June 30, 2024 and 2023, respectively. Management believes that presenting our results excluding the gain on acquisition and the amortization expense related to the intangible assets identified and recorded as part of these acquisitions is meaningful, as it increases the comparability of period-to-period results.

	Three Months Ended June 30,											Nine Months Ended June 30,
(in millions)		2024				2023			% Change				2024				2023			% Change
As reported, GAAP:
Income before tax	$	88.0			$	94.5			(7	)%		$	256.0			$	247.6			3	%
Income tax expense		26.1				25.0			4	%			71.9				59.8			20	%
Net income	$	61.9			$	69.5			(11	)%		$	184.1			$	187.8			(2	)%
Return on equity		15.7	%			21.6	%						16.4	%			20.9	%
Adjusted (non-GAAP) (1)
Adjusted income before tax	$	89.3			$	97.6			(9	)%		$	259.8			$	233.2			11	%
Adjusted income tax expense		26.5				25.8			3	%			73.0				62.3			17	%
Adjusted net income	$	62.8			$	71.8			(13	)%		$	186.8			$	170.9			9	%
Adjusted return on equity		15.9	%			22.3	%						16.7	%			19.0	%

(1)

Adjusted income before tax, adjusted income tax expense, adjusted net income, and adjusted return on equity are non-GAAP financial measures. A reconciliation between the GAAP and non-GAAP amounts listed above is provided in Appendix A.

Segment Information

Segment income is calculated as net contribution less non-variable direct segment costs. These non-variable direct expenses include trader base compensation and benefits, operational charges, trading systems and market information, professional fees, travel and business development, communications, bad debts, trade errors and direct marketing expenses.

Segment income is used by our chief operating decision maker (“CODM”) as the primary measure of segment profit or loss in the evaluation for each of our operating segments. During the three months ended December 31, 2023, we revised our method of allocating certain overhead costs to our operating segments, and, beginning in the three months ended December 31, 2023, the CODM also uses ‘Segment income, less allocation of overhead costs’ as an additional segment measure of our segments’ financial performance. The allocation of overhead costs to operating segments includes the costs associated with compliance, technology, and credit and risk costs. The share of allocated costs is based on resources consumed by the relevant businesses. In addition, the allocation of human resources and occupancy costs is principally based on employee costs within the relevant businesses. The measure of segment profit or loss most consistent with the corresponding amounts in the consolidated financial statements is segment income.

In the accompanying segment tables, ‘Allocation of overhead costs’ has been added beneath ‘Segment income’, which reconciles the segment income measure to the segment income, less allocation of overhead costs measure for the three and nine months ended June 30, 2024.

Segment Results

Our business activities are managed through four operating segments, including Commercial, Institutional, Retail and Payments.

The tables below present the financial performance, a disaggregation of operating revenues, and select operating data and metrics used by management in evaluating the performance of our segments, for the periods indicated. Additional information on the performance of our segments will be included in our Quarterly Report on Form 10-Q to be filed with the SEC.

Commercial

	Three Months Ended June 30,											Nine Months Ended June 30,
(in millions)		2024				2023			% Change				2024				2023			% Change
Revenues:
Sales of physical commodities	$	26,186.1			$	14,240.1			84	%		$	66,305.6			$	41,668.8			59	%
Principal gains, net		113.7				109.5			4	%			264.5				254.1			4	%
Commission and clearing fees		52.3				50.0			5	%			143.6				133.3			8	%
Consulting, management and account fees		7.1				6.9			3	%			20.0				19.8			1	%
Interest income		51.1				38.0			34	%			133.7				112.7			19	%
Total revenues		26,410.3				14,444.5			83	%			66,867.4				42,188.7			58	%
Cost of sales of physical commodities		26,148.1				14,191.8			84	%			66,206.3				41,533.5			59	%
Operating revenues		262.2				252.7			4	%			661.1				655.2			1	%
Transaction-based clearing expenses		19.0				16.3			17	%			51.7				44.1			17	%
Introducing broker commissions		11.7				12.0			(3	)%			33.0				29.4			12	%
Interest expense		11.0				10.8			2	%			28.3				30.3			(7	)%
Net operating revenues		220.5				213.6			3	%			548.1				551.4			(1	)%
Variable direct compensation and benefits		51.8				56.7			(9	)%			133.7				137.9			(3	)%
Net contribution		168.7				156.9			8	%			414.4				413.5			—	%
Fixed compensation and benefits		19.5				16.0			22	%			51.5				46.0			12	%
Other fixed expenses		23.5				18.9			24	%			71.3				56.9			25	%
Bad debts, net of recoveries		—				5.0			(100	)%			—				7.9			(100	)%
Non-variable direct expenses		43.0				39.9			8	%			122.8				110.8			11	%
Other gain		—				—			n/m				6.9				—			n/m
Segment income		125.7				117.0			7	%			298.5				302.7			(1	)%
Allocation of overhead costs (1)		8.9				—			—				26.6				—			—
Segment income, less allocation of overhead costs	$	116.8			$	117.0			n/m			$	271.9			$	302.7			n/m

(1)		Includes an allocation of certain overhead costs to our operating segments as noted above for the three and nine months ended June 30, 2024. These allocations will be provided on an ongoing basis but have not been calculated for comparable periods.

	Three Months Ended June 30,											Nine Months Ended June 30,
		2024				2023			% Change				2024				2023			% Change
Operating Revenues (in millions):
Listed derivatives	$	78.6			$	62.2			26	%		$	197.1			$	177.0			11	%
OTC derivatives		66.2				71.9			(8	)%			163.7				172.3			(5	)%
Physical contracts		65.3				77.0			(15	)%			159.8				182.6			(12	)%
Interest / fees earned on client balances		45.2				35.0			29	%			120.5				104.5			15	%
Other		6.9				6.6			5	%			20.0				18.8			6	%
	$	262.2			$	252.7			4	%		$	661.1			$	655.2			1	%
Volumes and Other Select Data:
Listed derivatives (contracts, 000’s)		10,547				9,021			17	%			29,704				25,532			16	%
Listed derivatives, average rate per contract (1)	$	7.21			$	6.58			10	%		$	6.39			$	6.62			(3	)%
Average client equity - listed derivatives (millions)	$	1,751			$	1,815			(4	)%		$	1,712			$	1,974			(13	)%
Over-the-counter (“OTC”) derivatives (contracts, 000’s)		959				1,063			(10	)%			2,584				2,638			(2	)%
OTC derivatives, average rate per contract	$	69.03			$	67.75			2	%		$	63.53			$	65.73			(3	)%

(1)		Give-up fee revenues, related to contract execution for clients of other FCMs, as well as cash and voice brokerage revenues are excluded from the calculation of listed derivatives, average rate per contract.

Institutional

	Three Months Ended June 30,											Nine Months Ended June 30,
(in millions)		2024				2023			% Change				2024				2023			% Change
Revenues:
Sales of physical commodities	$	—			$	—			—	%		$	—			$	—			—	%
Principal gains, net		89.2				82.8			8	%			290.0				273.1			6	%
Commission and clearing fees		77.6				63.6			22	%			225.7				204.0			11	%
Consulting, management and account fees		21.0				18.4			14	%			56.0				54.0			4	%
Interest income		321.1				216.3			48	%			836.3				556.0			50	%
Total revenues		508.9				381.1			34	%			1,408.0				1,087.1			30	%
Cost of sales of physical commodities		—				—			—	%			—				—			—	%
Operating revenues		508.9				381.1			34	%			1,408.0				1,087.1			30	%
Transaction-based clearing expenses		57.3				45.8			25	%			166.2				141.1			18	%
Introducing broker commissions		8.6				9.1			(5	)%			24.3				27.8			(13	)%
Interest expense		285.3				205.9			39	%			761.4				516.8			47	%
Net operating revenues		157.7				120.3			31	%			456.1				401.4			14	%
Variable direct compensation and benefits		52.9				38.6			37	%			148.6				135.8			9	%
Net contribution		104.8				81.7			28	%			307.5				265.6			16	%
Fixed compensation and benefits		19.6				15.4			27	%			56.4				44.2			28	%
Other fixed expenses		23.0				21.4			7	%			64.2				58.7			9	%
Bad debts, net of recoveries		—				(0.2	)		(100	)%			(1.8	)			(0.2	)		n/m
Non-variable direct expenses		42.6				36.6			16	%			118.8				102.7			16	%
Segment income		62.2				45.1			38	%		$	188.7			$	162.9			16	%
Allocation of overhead costs (1)		13.1				—			—				39.2				—			—
Segment income, less allocation of overhead costs	$	49.1			$	45.1			n/m			$	149.5			$	162.9			n/m

(1)		Includes an allocation of certain overhead costs to our operating segments as noted above for the three and nine months ended June 30, 2024. These allocations will be provided on an ongoing basis but have not been calculated for comparable periods.

	Three Months Ended June 30,											Nine Months Ended June 30,
		2024				2023			% Change				2024				2023			% Change
Operating Revenues (in millions):
Listed derivatives	$	51.9			$	45.4			14	%		$	154.3			$	140.9			10	%
Securities		348.6				249.0			40	%			957.1				688.8			39	%
FX contracts		9.1				9.5			(4	)%			24.7				28.0			(12	)%
Interest / fees earned on client balances		70.1				56.5			24	%			196.0				175.0			12	%
Other		29.2				20.7			41	%			75.9				54.4			40	%
	$	508.9			$	381.1			34	%		$	1,408.0			$	1,087.1			30	%
Volumes and Other Select Data:
Listed derivatives (contracts, 000’s)		42,188				30,023			41	%			127,595				95,299			34	%
Listed derivatives, average rate per contract (1)	$	1.18			$	1.43			(17	)%		$	1.14			$	1.36			(16	)%
Average client equity - listed derivatives (millions)	$	4,206			$	4,645			(9	)%		$	4,352			$	5,327			(18	)%
Securities ADV (millions)	$	7,358			$	5,378			37	%		$	7,013			$	5,121			37	%
Securities RPM (2)	$	239			$	262			(9	)%		$	256			$	314			(18	)%
Average money market / FDIC sweep client balances (millions)	$	968			$	1,269			(24	)%		$	1,025			$	1,393			(26	)%
FX contracts ADV (millions)	$	3,958			$	3,612			10	%		$	3,997			$	4,520			(12	)%
FX contracts RPM	$	40			$	42			(5	)%		$	35			$	33			6	%

(1)		Give-up fee revenues, related to contract execution for clients of other FCMs, revenues are excluded from the calculation of listed derivatives, average rate per contract.
(2)		Interest expense associated with our fixed income activities is deducted from operating revenues in the calculation of Securities RPM, while interest income related to securities lending is excluded.

Retail

	Three Months Ended June 30,											Nine Months Ended June 30,
(in millions)		2024				2023			% Change				2024				2023			% Change
Revenues:
Sales of physical commodities	$	10.1			$	79.1			(87	)%		$	33.4			$	560.0			(94	)%
Principal gains, net		56.9				59.8			(5	)%			174.3				134.9			29	%
Commission and clearing fees		12.2				12.0			2	%			37.1				34.6			7	%
Consulting, management and account fees		14.9				13.1			14	%			42.9				40.7			5	%
Interest income		10.0				6.7			49	%			29.4				21.3			38	%
Total revenues		104.1				170.7			(39	)%			317.1				791.5			(60	)%
Cost of sales of physical commodities		7.9				79.2			(90	)%			26.4				550.9			(95	)%
Operating revenues		96.2				91.5			5	%			290.7				240.6			21	%
Transaction-based clearing expenses		3.2				3.1			3	%			10.2				13.1			(22	)%
Introducing broker commissions		22.0				21.7			1	%			64.8				63.6			2	%
Interest expense		2.5				1.6			56	%			5.9				4.1			44	%
Net operating revenues		68.5				65.1			5	%			209.8				159.8			31	%
Variable direct compensation and benefits		4.8				4.8			—	%			13.6				11.9			14	%
Net contribution		63.7				60.3			6	%			196.2				147.9			33	%
Fixed compensation and benefits		11.4				13.1			(13	)%			33.0				37.3			(12	)%
Other fixed expenses		26.0				28.5			(9	)%			74.9				90.5			(17	)%
Bad debts, net of recoveries		0.5				1.5			(67	)%			0.6				2.3			(74	)%
Non-variable direct expenses		37.9				43.1			(12	)%			108.5				130.1			(17	)%
Other gain		1.8				—			n/m				1.8				—			n/m
Segment income		27.6				17.2			60	%			89.5				17.8			n/m
Allocation of overhead costs (1)		11.9				—			—				35.4				—			—
Segment income, less allocation of overhead costs	$	15.7			$	17.2			n/m			$	54.1			$	17.8			n/m

(1)		Includes an allocation of certain overhead costs to our operating segments as noted above for the three and nine months ended June 30, 2024. These allocations will be provided on an ongoing basis but have not been calculated for comparable periods.

	Three Months Ended June 30,											Nine Months Ended June 30,
		2024				2023			% Change				2024				2023			% Change
Operating Revenues (in millions):
Securities	$	25.4			$	23.4			9	%		$	73.8			$	66.9			10	%
FX / CFD contracts		67.4				62.6			8	%			206.7				154.7			34	%
Physical contracts		2.0				4.0			(50	)%			4.8				12.2			(61	)%
Interest / fees earned on client balances		0.6				0.7			(14	)%			2.0				2.3			(13	)%
Other		0.8				0.8			—	%			3.4				4.5			(24	)%
	$	96.2			$	91.5			5	%		$	290.7			$	240.6			21	%
Volumes and Other Select Data:
FX / CFD contracts ADV (millions)	$	6,904			$	6,901			—	%		$	6,746			$	7,758			(13	)%
FX / CFD contracts RPM	$	152			$	141			8	%		$	160			$	105			52	%

Payments

	Three Months Ended June 30,											Nine Months Ended June 30,
(in millions)		2024				2023			% Change				2024				2023			% Change
Revenues:
Sales of physical commodities	$	—			$	—			—	%		$	—			$	—			—	%
Principal gains, net		47.5				50.5			(6	)%			151.5				149.8			1	%
Commission and clearing fees		1.5				1.6			(6	)%			4.4				5.0			(12	)%
Consulting, management, account fees		1.7				0.7			143	%			3.4				2.5			36	%
Interest income		0.4				0.4			—	%			1.7				1.1