StoneX’s Q2 FX and CFDs Revenue Jumps despite Trading Volume Drop

Thursday, 09/05/2024 | 05:12 GMT by Arnab Shome
  • The revenue from the FX and CFDs contracts for the quarter came in at $80.3 million.
  • The group ended the quarter with net income of $53.1 million.
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StoneX

StoneX Group (Nasdaq: SNEX), the owner of GAIN Capital, published its financials from January to March, which is the second quarter of its fiscal 2024. In the three months, the platform generated $80.3 million in revenue, a 30 percent increase, from forex and contracts for differences (CFDs) offerings.

Trading Volume Declined

Although the FX and CFDs revenue increased significantly, there was a decline in the average daily volume (ADV). According to the official numbers released yesterday (Wednesday), the ADV of the FX and CFDs contracts for the three months on the platform declined by 23 percent to about $10.5 billion.

On the institutional business side of StoneX, it generated $7.6 million in revenue, a decline of 18 percent, from FX contracts. Meanwhile, in retail, the FX and CFDs contracts revenue jumped by 38 percent to $72.7 million. While institutional FX ADV dropped by 20 percent to $4 billion, retail FX and CFDs volume declined 24 percent to $6.4 billion.

“We are reporting solid results for our second fiscal quarter due in large part to the diversification of both our product offering and client base,” said Sean O’Connor, the CEO of StoneX.

A Solid Quarter

Headquartered in New York, StoneX (previously known as INTL FCStone) is a major financial services conglomerate with a presence in six areas: commercial hedging, global payments, securities, physical commodities, foreign exchange, and clearing and execution services.

The group entered the retail FX and CFDs industry by acquiring GAIN Capital in 2020 for $236 million. The deal put the financial services giant in control of two major FX and CFDs brokerage brands: Forex.com and City Index.

In the three months ended in March, the total revenue of the financial services giant came in at about $22.1 billion, a jump of 37 percent. Considering all the expenses and commissions, the net operating revenue came down to $422.3 million, an uptick of 6 percent.

The group ended the quarter with a net income of $53.1 million, an increase of 27 percent. The basic and diluted earnings per share came in at $1.68 and $1.63, respectively.

StoneX Group (Nasdaq: SNEX), the owner of GAIN Capital, published its financials from January to March, which is the second quarter of its fiscal 2024. In the three months, the platform generated $80.3 million in revenue, a 30 percent increase, from forex and contracts for differences (CFDs) offerings.

Trading Volume Declined

Although the FX and CFDs revenue increased significantly, there was a decline in the average daily volume (ADV). According to the official numbers released yesterday (Wednesday), the ADV of the FX and CFDs contracts for the three months on the platform declined by 23 percent to about $10.5 billion.

On the institutional business side of StoneX, it generated $7.6 million in revenue, a decline of 18 percent, from FX contracts. Meanwhile, in retail, the FX and CFDs contracts revenue jumped by 38 percent to $72.7 million. While institutional FX ADV dropped by 20 percent to $4 billion, retail FX and CFDs volume declined 24 percent to $6.4 billion.

“We are reporting solid results for our second fiscal quarter due in large part to the diversification of both our product offering and client base,” said Sean O’Connor, the CEO of StoneX.

A Solid Quarter

Headquartered in New York, StoneX (previously known as INTL FCStone) is a major financial services conglomerate with a presence in six areas: commercial hedging, global payments, securities, physical commodities, foreign exchange, and clearing and execution services.

The group entered the retail FX and CFDs industry by acquiring GAIN Capital in 2020 for $236 million. The deal put the financial services giant in control of two major FX and CFDs brokerage brands: Forex.com and City Index.

In the three months ended in March, the total revenue of the financial services giant came in at about $22.1 billion, a jump of 37 percent. Considering all the expenses and commissions, the net operating revenue came down to $422.3 million, an uptick of 6 percent.

The group ended the quarter with a net income of $53.1 million, an increase of 27 percent. The basic and diluted earnings per share came in at $1.68 and $1.63, respectively.

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
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