StoneX Q2 Sees FX, CFDs Revenue Rise Despite Lower Volumes

In its fiscal second quarter spanning January to March 2024, StoneX Group, which owns GAIN Capital, reported a notable 30 percent surge in its forex and contracts for differences (CFDs) revenue, reaching $80.3 million.

Trading Volumes Suffer a Drop

Despite a significant revenue boost in FX and CFDs, the platform witnessed a 23% fall in average daily volume (ADV), now at about $10.5 billion, as disclosed in Wednesday’s report.

The company’s institutional FX earnings saw an 18% decrease, obtaining only $7.6 million, whereas retail operations flourished, with a 38% increase to $72.7 million in revenue. The institutional sector’s FX ADV decreased by 20% to $4 billion, and retail trading volumes fell by 24% to $6.4 billion.

Sean O’Connor, CEO of StoneX, expressed satisfaction with the quarter’s performance, crediting the diverse range of products and clientele for the success.

Quarter Highlights

Based in New York, StoneX, formerly known as INTL FCStone, operates as a diversified financial services firm in commercial hedging, global payments, securities, physical commodities, foreign exchange, and clearing and execution services.

By acquiring GAIN Capital in 2020 for $236 million, StoneX expanded its foothold in the retail FX and CFDs market, managing leading brands like Forex.com and City Index.

For the quarter ending in March, the firm’s total revenue soared to approximately $22.1 billion, a 37% increment. After subtracting expenses and commission, net operating income increased to $422.3 million, up by 6%.

The company reported a net income of $53.1 million for the quarter, marking a 27% increase. Earnings per share were reported at $1.68 for basic and $1.63 for diluted.