StoneX Group Inc. expects cost synergies from its acquisition of R.J. O'Brien to reach a $50 million run rate by the end of the first quarter of fiscal 2027, as volatility moderates from record levels. The company reported third-quarter net income of $127.9 million, up 102% year-on-year, while net operating revenues rose 47% versus a year ago to $719.7 million but fell 13% from the immediately preceding quarter. R.J. O'Brien contributed $78.8 million in net operating revenues for the quarter, and management noted that the vast majority of its remaining U.S.-based client migration was completed, with nearly $13 billion in required client assets held. Chief Financial Officer William Dunaway said the cost synergy run rate was exiting the third quarter at around $37 million to $38 million, targeting the mid-$40 million range by fiscal year-end and the $50 million originally announced by the end of the first quarter. Group CEO Philip Smith highlighted strong performance in the Commercial segment, with listed derivatives up 62%, OTC derivatives up 73%, and physical contracts up 162%, while the Institutional segment recorded its highest ever securities volumes and the Payments segment achieved record average daily volume of $96 million.
Stonex Group IncStrong earnings and cost synergies from RJO acquisition exceed expectations.
