Highlights

  • StoneX shows 61.06% basic EPS growth, a P/E of 13.47 and a PEG of 0.66.
  • Third quarter net income was $127.9 million against $63.4 million; diluted EPS was $1.00.
  • Net operating revenues were $719.7 million against $488.3 million a year earlier.
  • Return on equity was 18.4% in the quarter against 13.1%.

StoneX (NASDAQ:SNEX) reported third quarter fiscal 2026 net income of $127.9 million, and the undervalued growth stock figures read 61.06% one-year growth in basic earnings per share, a trailing twelve-month P/E of 13.47 and an expected-basis PEG of 0.66, with shares trading at USD 55.48 on October 28, 2026, down 1.16%. On the company's side, the financial services group resolved its dispute with BTIG on May 4, completed a three-for-two stock split on July 17, and issued its quarterly report in early August.

StoneX is based in New York and incorporated in Delaware. It describes itself as a global financial services network that connects companies, organizations, traders and investors to the global market ecosystem through digital platforms, clearing and execution services and high touch service. It reports four operating segments: Commercial, Institutional, Self-Directed/Retail and Payments. The company serves clients in more than 180 countries, had more than 5,200 employees as of June 30, 2026, and ends its fiscal year on September 30.

Growth: Third Quarter Earnings, Revenues and Segments

Net income was $127.9 million in the third quarter against $63.4 million a year earlier, and $441.2 million for the nine months against $220.2 million. Basic earnings per share were $1.07 against $0.57, and diluted earnings per share were $1.00 against $0.54. For the nine months, diluted earnings per share were $3.49 against $1.92. Per share amounts reflect the stock split.

Net operating revenues were $719.7 million, up 47%, and operating revenues were $1,468.0 million, up 43%. The company said the acquisition of R.J. O'Brien, effective July 31, 2025, contributed $189.5 million in operating revenues, and that net operating revenues included $78.8 million from RJO and $29.5 million from Benchmark. Listed derivatives operating revenues were $284.3 million against $126.4 million and securities were $604.2 million against $485.7 million.

Income before tax was $159.8 million against $85.6 million. Commercial segment income was $181.4 million against $82.7 million, and Institutional segment income was $129.9 million against $87.4 million.

Valuation: P/E of 13.47, PEG of 0.66 and Return on Equity

The P/E ratio of 13.47 is measured on trailing twelve-month earnings, and the PEG ratio of 0.66 on an expected basis. Return on equity was 18.4% against 13.1% for the quarter and 22.3% against 15.9% for the nine months. Adjusted EBITDA, a non-GAAP measure, was $229.5 million against $135.1 million. Net cash provided by operating activities was $328.5 million for the nine months against $858.9 million.

On the third quarter call, Chief Financial Officer William Dunaway said the return on equity compared with the company's 15% target.

Capital Structure, Funding and Liquidity

Stockholders' equity was $2,844.0 million, payables to lenders under loans were $660.7 million, and senior secured borrowings, net, were $1,160.9 million against $543.9 million a year earlier. The senior secured borrowings consist of the 7.875% Senior Secured Notes due 2031 and the 6.875% Senior Secured Notes due 2032, which carried values of $544.9 million and $616.0 million.

The company and its subsidiaries have committed credit facilities allowing borrowings of up to $1,760.0 million. Cash and cash equivalents were $2,194.3 million. The company said regulations limit the funds its operating subsidiaries can pay as dividends to it.

Disclosed Risks and Outlook

Self-Directed/Retail segment income declined 36%, and FX/CFD operating revenues declined 19% as contracts average daily volume fell 12%. Bad debts, net of recoveries, were $12.6 million for the nine months against $2.3 million, and fixed compensation and benefits rose 21% to $149.8 million. The company said global instability, tariffs and market volatility are difficult to predict and could have an adverse effect on its results.

In legal matters, a FINRA panel issued a final award on March 12, 2026 in the BTIG dispute, resulting in a net payment of $1.9 million by StoneX. The SEC concluded its investigation without recommending an enforcement action, while the company continues to cooperate with a DOJ subpoena whose outcome cannot presently be determined. Certain committed credit facilities expire within the next twelve months, and the company intends to renew or replace them.

On the third quarter call, management said the consolidation of its U.S. futures commission merchant businesses is on track to be substantially completed later in fiscal 2026. Dunaway said annualized cost savings from the R.J. O'Brien integration were running at $37 million to $38 million, with the company targeting $45 million to $46 million by fiscal year end and $50 million by the end of the first quarter of fiscal 2027.