StoneX Group Q2 Fiscal 2024 Results with 30% Revenue Growth

StoneX Group recently released its financial report for the Q2 of fiscal 2024, showcasing robust performance driven by increased revenue from forex and CFDs offerings. The New York-based financial services conglomerate, which owns GAIN Capital, reported a noteworthy 30% surge in revenue, totaling $80.3 million for the January to March period.

However, amidst the revenue growth, StoneX noted a decline in the average daily volume (ADV) of FX and CFDs contracts on its platform. The ADV dropped by 23% to approximately $10.5 billion, contrasting the revenue uptick.

Breaking down the revenue streams, StoneX saw a mixed performance across its institutional and retail segments. Institutional FX revenue experienced an 18% decline, amounting to $7.6 million. In contrast, retail FX and CFD contracts revenue surged by 38%, reaching $72.7 million. Nevertheless, both segments witnessed a decline in ADV, with institutional FX ADV dropping by 20% to $4 billion and retail FX and CFDs volume declining by 24% to $6.4 billion.

StoneX Group Reports Robust Q2 Fiscal 2024 Results with 30% Revenue Growth.

Sean O’Connor, the CEO of StoneX, attributed the solid results to the diversification of product offerings and client base. StoneX, previously known as INTL FCStone, operates across various financial sectors, including commercial hedging, global payments, securities, physical commodities, foreign exchange, and clearing and execution services.

StoneX made a strategic move into the retail FX and CFDs industry in 2020 with the acquisition of GAIN Capital for $236 million. This acquisition positioned StoneX as a major player in the FX and CFDs brokerage market, owning popular brands such as Forex.com and City Index.

For the quarter ending in March, StoneX reported total revenue of approximately $22.1 billion, marking a significant 37% increase. Despite increased expenses and commissions, net operating revenue reached $422.3 million, reflecting a 6% rise.

The financial services giant closed the quarter with a net income of $53.1 million, up by 27% compared to the same period last year. Basic and diluted earnings per share stood at $1.68 and $1.63, respectively, showcasing a strong performance for StoneX in the second quarter of fiscal 2024.

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