StoneX Group Inc.

Good day, and thank you for standing by. Welcome to the StoneX Group Incorporated Q3 FY26 earnings conference call. At this time, all participants are in a listen-only mode. After this speaker's presentation, there will be a question and answer session. To ask a question during the session, you need to press star 1-1 on your telephone, and you will hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Bill Dunaway, CFO. Please go ahead, Bill.

Good morning and welcome to our earnings conference call for our quarter ended June 30th, 2026, our third quarter of fiscal 2026. After the market closed yesterday, we issued a press release reporting our results for the quarter and this press release is available on our website at www.stonex.com as well as a slide presentation which we will refer to during this call. The presentation and an archive of the webcast will also be available on our website after the call's conclusion. Before getting underway, we are required to advise you, and all participants should note, that the following discussion should be considered in conjunction with the most recent financial statements and notes thereto, as well as the Form 10Q file with the SEC. This discussion may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These forward-looking statements involve known and unknown risks and uncertainties, which are detailed in our filings with the SEC. Although the company believes that its forward-looking statements are based upon reasonable assumptions regarding its business and future market conditions, there can be no assurances that the company's actual results will not differ materially from any results expressed or implied by the company's forward-looking statements. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any forward-looking statements are not guarantees of future performance. With that, I'll now turn the call over to Philip Smith, the company's Chief Executive Officer, for a brief introduction.

Thank you, Bill. Good morning, everyone, and thank you for joining our third quarter earnings call for fiscal year 2026. Whilst there's been a moderation in volatility this quarter, I'm pleased to report that Our third quarter results. Total net operating revenues of $719.7 million were up 47% versus a prior year, alongside net income of $127.9 million, up 102% year on year. We also recorded a diluted EPS of $1 per share and a 85% increase versus the previous year, taking our year-to-date EPS to $3.49 per share, up 82% against prior year. This quarter was driven by strong performance across our commercial and institutional segments, which reported a 90% and 56% increase, respectively, in net operating revenue year on year, underscoring our increasing relevance to a diverse set of clients. In the commercial segment, strong performance in our global hedging business helped drive this quarter's results, and pleasingly, net operating revenue across all our products recorded double-digit growth, partly driven by the impact of the RGO and benchmark acquisitions as well as organic growth. This included listed derivatives up 62% to $68.6 million, OTC derivatives up 73% to $101.9 million, and Physical Contracts up 162% to $87.4 million. In the institutional segment, we recorded our highest ever volumes in securities with average daily volume up 33% versus last year, driven by the exceptional performances in our equities market making business. A segment which we had highlighted last quarter with growth in both ADRs as well as US listed equities. Also bolstering our institutional segment The acquired business of the benchmark company contributed $29.5 million in net operating revenues for the quarter, their best quarterly performance to date. In the payment segment, we reported a 12% increase in net operating revenue and a 20% increase in ADV year on year to a record $96 million. In addition, We recorded the highest number of transactions going through the platform this quarter, validating our continued investment in proprietary technology and reinforcing our belief that the platform can support significantly higher volumes without material increases to our expense base. This scalability positions us to support large financial institutions like Shinhan Bank, where we recently announced a strategic partnership with one of South Korea's oldest and systemically important banks to leverage our global network for complex cross-border payments. Lastly, I wanted to give an update on the progress of RJ O'Brien. The USFCM consolidation work remains on track to be substantially completed later this fiscal year, We completed the vast majority of RGO's remaining US-based client migration this quarter, and as of the end of the quarter, hold nearly $13 billion in required client assets, further strengthening our position as the number one non-bank FCM in the United States. More broadly, and as anticipated, volatility moderated from the exceptional levels of the second quarter. Even so, client activity remained strong Thank you, Philip.