SNEX Q4 Deep Dive: Acquisitions and Volatility Drive Revenue Growth, Margin Pressures Persist

Financial services network StoneX Group (NASDAQ:SNEX) posted $38.54 billion of revenue in Q4 CY2025, up 39.6% year on year. Its GAAP profit of $2.50 per share was 26.3% above analysts’ consensus estimates.

Is now the time to buy SNEX? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

StoneX’s fourth quarter results were met with a negative market reaction, despite the company’s substantial year-on-year revenue and profit growth. Management highlighted several drivers behind the quarter, including record performance in listed derivatives and precious metals trading, as well as the impact of the R.J. O’Brien acquisition. CEO Philip Smith attributed the strong precious metals results to StoneX’s global logistics capabilities and the unique structure of its metals business, noting, “Our global footprint and logistics expertise allowed StoneX to record its best revenue quarter ever.” The company also experienced higher expenses, driven in part by acquisition-related costs and increased legal fees.

Looking ahead, management emphasized ongoing integration of recent acquisitions and continued investment in global hedging and risk management services as key priorities. The company is focusing on expanding its product ecosystem and deepening client relationships, particularly in commercial hedging and new markets like environmental commodities. Smith noted, “We are actively digitizing the business, expanding our OTC products, and growing our client base, which positions StoneX to continue expanding market share and increase margins.” However, management acknowledged potential headwinds from market volatility and integration complexity, suggesting a measured outlook for upcoming quarters.

Key Insights from Management’s Remarks

Management attributed the quarter’s results to the combined impact of expanded product offerings, strong metals trading, and the initial benefits of integrating R.J. O’Brien and Benchmark.

• Record precious metals performance: StoneX’s precious metals business saw exceptional growth, driven by both wholesale and retail demand and the company’s ability to move physical metal efficiently across global markets. Management highlighted that segment income from precious metals this quarter exceeded the entire previous year, supported by logistics, refining, and storage capabilities, including a newly accredited vault.

• R.J. O’Brien and Benchmark integration: The acquisitions of R.J. O’Brien and Benchmark contributed significantly to both listed derivatives and institutional revenues, with integration milestones achieved in the U.K. and ongoing work in the U.S. Management expects continued cross-sell opportunities and synergy realization, though full benefits are still in progress.

• Institutional segment momentum: The institutional business delivered record revenues, aided by expanded market-making in equities, fixed income, and prime services. Management called out early-stage progress in U.S. equities market making, where they see a large addressable market, and highlighted strong growth in unlisted ADRs.

• Commercial segment expansion: The global hedging platform, especially in the commercial segment, was reorganized to provide tailored risk management solutions across more than 40 derivative exchanges. StoneX is deepening its presence in Asia Pacific and entering new markets such as power and carbon in Australia and Europe.

• Expense and margin dynamics: Higher operating costs reflected both acquisition-related increases and legal fees, especially related to ongoing matters. While the company’s operating margin held steady year-over-year, management pointed to further cost synergy capture and efficiency improvements as priorities.

Drivers of Future Performance

StoneX’s outlook is shaped by acquisition integration, product digitization, and expanding its commercial hedging ecosystem, balanced against volatility and margin headwinds.

• Acquisition integration and cross-sell: Management expects the R.J. O’Brien and Benchmark integrations to unlock further cross-selling opportunities, particularly as legal and operational consolidation progresses. The company is focused on educating and onboarding acquired client bases to StoneX’s broader suite, aiming to drive revenues from both OTC and exchange-traded products.

• Growth in commercial and environmental markets: StoneX is prioritizing expansion into new commercial markets, including power and carbon in Australia and Europe, and sees digital platform enhancements as crucial for scaling client engagement and operational efficiency. The company is also extending its introducing broker network and ERP integrations to deepen client relationships.

• Margin and volatility risks: Management cautioned that while volatility can drive trading activity and fee income, extreme market swings pose risks to client health and could disrupt activity. Ongoing integration costs and legal expenses may also pressure margins in the near term, with management aiming for steady improvement as synergies materialize.

Catalysts in Upcoming Quarters

In upcoming quarters, our analysts will be watching (1) progress on the integration and consolidation of R.J. O’Brien’s operations, especially in the U.S.; (2) expansion and monetization in new commercial and environmental markets such as power and carbon trading; and (3) the ability to sustain strong performance in precious metals and institutional segments amid shifting market volatility. Additionally, improvements in cost synergies and efficiency gains from digital initiatives will be key markers of success.

StoneX currently trades at $113.92, down from $117.37 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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