The growth in net operating revenues was principally driven by a $45 million increase in securities revenues.

In addition, listed derivatives and interest and fee income increased $38 million and $6.2 million, respectively, primarily driven by the acquisition of RJO. Also, other net operating revenues increased $24.6 million, with the acquisition of Benchmark contributing $29.5 million, which was partially offset by declines in legacy activities. On a sequential basis, net operating revenues declined 1%, however, segment income increased 7%. In our self-directed retail segment, net operating revenues decreased 17% and segment income was down 36%. These decreases were driven by a 27% decrease in average daily volumes in FX CFD contracts, which was partially offset by an 11% increase in rate per million captured. On a sequential basis, net operating revenues declined 11% and segment income decreased 18% in this segment. Our payment segment net operating revenues were up 12% and segment income increased 22%. Average daily volume was up 20% versus the prior year, while rate per million was down 7%. Versus the immediate preceding quarter, payment net operating revenues increased 7% and segment income increased 8%. Moving on to slide number eight, looking at segment performance for the trailing 12 months, we saw strong growth in our commercial and institutional segments with net operating revenues up 74% and 68% respectively, and segment income increasing 92% and 59% respectively. Our payment segment added 6% in net operating revenues and 17% in segment income. Our self-directed retail segment reported a 20% decline in net operating revenues and a 39% decline in segment income. Finally, moving on to slide number nine, which depicts our interest and fee earned on client balances by quarter, as well as a table which shows the annualized interest rate sensitivity for a change in short-term interest rates. The interest and fee income, net of interest paid to clients, and the effect of interest rate swaps increased $38 million to $111.9 million in the current period, with the acquisition of R.J. O'Brien contributing $30 million in net interest in the current quarter. On a sequential basis, interest and fee income, net of interest paid to clients, and the effect of interest rate swaps increased $4.2 million as the average client equity and FDIC sweep client balances increased 7%. During the third quarter of fiscal 26, we entered into an additional $750 million in fixed-rate SOFR swaps to hedge our aggregate interest rate exposure, which brings our aggregate swap position to $2.55 billion with an average duration of approximately one and a half years and an average rate of 3.51%. These swaps are reflected in the interest rate sensitivity table on this slide. As shown, we now estimate a 100 basis point change in short-term interest rates, either up or down, would result in a change to net income by 46.9 million or 38 cents per share on an annualized basis. With that, I will hand you back to Philip for a product spotlight on our global prime services business. Thank you, Bill.

As we do each quarter, I'm turning to slide 11. We'd like to spotlight one of the business lines driving our growth, and this quarter I'll turn to our global prime services. Our prime services is a global, fully integrated prime brokerage platform operating from London, Singapore, Atlanta, New York, and Park City, Utah. From essentially a standing start in 2018, we now serve more than 700 accounts globally with over $16 billion in client balances on the platform, generating nearly $140 million in net operating revenue in the last 12 months. Prime has become one of the strongest growth stories in the firm, having grown at a 60% plus CAGR over the last seven years and is one of the clearest examples of our ecosystem at work. The thesis was straightforward and is the same thesis that runs through everything Stoenix does. We serve mid-market clients. who need institutional grade capabilities but have been historically underserved by the large global banks and broker dealers. As bulge bracket firms imposed return on capital and revenue minimums, we stepped in as the partner of choice offering flexible, cost-effective, and scalable solutions combined with the risk discipline and balance sheet strength that institutional clients expect. Turning to the next slide, slide 12, We have built a modular platform designed specifically around the mid-market segment, drawing on the core infrastructure StoneX has developed across execution, clearing, custody, and finance, and of course, backed by the StoneX balance sheet. Clients access the capabilities they need, supported by the scale and stability of the broader franchise. In the United States, our platform covers trading and financing across equities, fixed income, and options through both fully self-clearing and introducing clearing models. Our hedge fund segment has grown steadily, with recent volatility driving increased engagement in options and future strategies. Our investment in automation leave us well positioned for the rapid expansion in the ETF space, and our multi-custodian, multi-asset capabilities have gained meaningful traction with both single and multi-family offices. Securities financing and lending. are also central to our U.S. offering. We help clients finance and margin their positions and cover short sales, drawing on our own inventory and an extensive lending network to source hard-to-borrow securities. Our matchbook securities lending activities earns a spread-based return on over $2 billion in balances, and we help clients earn incremental income via our securities lending desk. Outside the U.S., we have seen rapid growth since launching three years ago. For hedge funds, institutional managers, and digital asset participants, we provide execution, custody, financing, and hedging across both equities and fixed income. A key differentiator is in fixed income, where we offer repo financing at an individual security level rather than a blended portfolio rate. Thank you for joining us today. We provide institutional grade execution and custody across both crypto and traditional assets, along with collateralized lending within the digital asset ecosystem. Managers can hold fiat or fixed income collateral separately from their crypto exposure while financing their traditional assets on the same platform. Today, in addition to the digital assets we custody, Prime holds nearly $1.5 billion in traditional assets on behalf of those clients. Lastly, Stoenic's existing relationships provide a natural cross-selling opportunity for Global Prime. This includes clients in our commercial segment whose treasury function can leverage Prime's custody capabilities and earn a return on excess cash balances. On slide 13, you can see the results of these efforts. Since 2019, client balances have grown from less than $1 billion to more than $16 billion today. generating nearly $140 million of net operating revenue on a trailing 12 months basis. The growth since inception has been rapid with much of the growth coming in the last three years with client assets growing at a CAGR of over 65% since 2023. This growth has been broad based across the clients we serve including hedge funds, ETF and mutual fund providers and family offices. Despite this growth, our share of the addressable market remains relatively modest. We believe the combination of a large market opportunity, increasing demand for multi-asset Prime service providers, and our disciplined approach to execution provides a substantial runway for growth. On the next slide, I will go through Prime's priorities and outlook. A core priority for Stonex is to remain relevant to our clients through the products we offer, The markets we operate in and the depth of the relationships we build. For Global Prime, this means the following. First, we are extending our financing suite to include U.S. equity swaps, fixed income total return swaps, and fixed income prime brokerage, capabilities we've always proven in EMEA and are now bringing to the United States. We are also investing in capabilities that span global markets. Our outsourced trading business, where we provide clients with a fully embedded trading desk, has recently expanded into Asia, where early momentum is being built. Second, we are growing the client base organically, inorganically through M&A, and by engaging funds earlier in their lifecycle. Our prime consultancy business, which includes capital introduction, helps us build relationships with emerging managers as they launch and scale their funds, creating an early entry point into the relationship. Lastly, as we finalize the integration of Benchmark and RJ O'Brien, we expect significant cross-sale opportunities through clients who are beginning their relationship with StoneX. Finally, we are focused on making the platform more valuable for clients who choose to do more business with StoneX. Through cross-product margining and collateral relief, integrated coverage teams, and consolidated reporting, we are making it easier for clients to access the full breadth of the ecosystem through a single relationship. This is evidenced by clients engaging with us across multiple capabilities from the beginning. And in some cases, we have clients on board across seven products simultaneously. We believe these initiatives will drive greater client engagement, strengthen retention, and create a compounding opportunity to deepen relationships over time. Turning to the last slide of the section, slide 15, the most important point I want to leave with you is that Global Prime Services does not sit in isolation. It is the connective tissue of the StoneX ecosystem. Prime brings together custody, financing, execution, hedging capabilities that often form the foundation of a client relationship. From there, those same clients can access a broader range of products and capabilities across our ecosystem, whether through FX, payments, clearing, market making, and other products and services. As clients engage more, relationships deepen, wallet share expands, and the client becomes stickier. In that sense, Prime is not only a growing business in its own right, but also a driver of growth across the broader StoneX platform, with the value of the ecosystem compounding as clients do more business with us over time. Now to close, this was another strong quarter in spite of the moderation in volatility with net income of $127.9 million and diluted EPS of $1. Trading 12 months, net income was $526.9 million, up 77% versus the prior year. Our return on equity for the quarter was 18.4%, and on the trading 12 months, 20.8%, both well above our 15% target. On a tangible book value basis, return on tangible equity was 25% for the third quarter and 28.7% on a trading 12 months basis with book value per share of $23.70 up 576 or 32% versus the prior year. Our performance to date reflects the power and scale of the ecosystem we have built at StoneX and the compounding effect of the investments we have made in technology, people and products. We continue to see a significant total addressable market ahead of us, and we remain excited about the growth prospects of the company and the continued expansion of that ecosystem. With that operator, Would you kindly open the line for questions?

Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from Dan Fannin from Jefferies. Please go ahead, Jan.

Thanks. Good morning. Good morning, Dan. Philip, I wanted to just follow up on the comments around just the physical market, which has been so strong for you year to date. Just wanting to get a little bit more color around the underlying activity, what's driving that. We've also read about Project Vault. We're curious if that is something which the government's doing is having an impact on kind of the growth of that business.

Yeah, sure, Dan. Our physical business, as you know, is separated between metals and non-metals, and it's very much precious metals versus non-precious metals, more on the commodities, agricultural and such. So we've seen over the last, I guess, the last two quarters where the... The metals, the precious metals physical business has just outperformed and done incredibly well and exceeded expectations. And a lot of it was driven by, you know, just dislocations in various markets between location A and location B. And I think I went into that in quite a lot of detail in the last two earnings calls. With regards to domestic markets, and Non Metals Business. That physical business continues to grow. We continue to build out market share and very much as we set out when we made certain acquisitions such as CDI, which put us into the physical cotton business and very much into the expansion to physical coffee and physical cocoa. These are areas where Our financial business is very strong and our client base is very deep and when we look to expand into those areas we do take a certain level of comfort in the fact that we are then extending the product offering, extending the ecosystem within that space but from a very strong position within our financial space. and where we had continued success in building out those businesses is where we've been able to work very closely with our financial business, our financial based clients and being able to offer them the additional level of service. That's been crucial. In terms of our build out of our physical business, which we continue to strive to add more and more products, more and more capabilities to, and it becomes more of a unique ecosystem for our clients where some clients will be very eager to operate in the physical space. They want the hedging capability. We have the ability to embed Thank you so much for joining us. of the business that we've acquired. We've built out organically new initiatives, and we want to highlight that as a separate division, which is increasingly becoming part of a more and more relevant business line for us.

Understood. That's helpful.

And so then I wanted to follow up on some of the comments around the RJO integration.

I think the commentary obviously is that it's going well. I'm curious if you could put some numbers around where you are on the cost synergy side. And then at the time of the deal, you announced multiple or greater revenue synergy potential over time versus the expense synergies outlined. So curious if there's been any early attribution you could attribute to revenue synergies.

Sure. Thanks, Dan. I'll take the first one. I'll let Philip handle the second one. So on the cost synergy side, as I mentioned on the last call, we kind of were exiting Q2 with about a $32 million-ish run rate on an annualized basis of the cost savings. We're exiting Q3 here with something closer to $37, $38 million, still targeting kind of what we talked about last quarter by the end of the fiscal year, so end of next quarter to be mid-40s, $45, $46 million run rate, and by probably end of first quarter be at the $50 we originally announced. So tracking well. from where we were last quarter, continuing to see that grow here in Q3.

And I think when we last spoke last quarter, we were saying this Q3 was a very important quarter with regards to the integration. This was when the large integration process of the USFCM was going to happen. And that did happen. That has been completed. And we are now able to start looking at the business more holistically, looking at the clients, being able to really go deeper into the cross-selling capability. From the moment we announced the deal, even before closing, there was a lot of interaction between Stonex and R.J. O'Brien. That continued into closing, that continued into the integration. And there are early success stories of where increased capability that we can provide from Stonex to R.J. O'Brien clients who are now Stonex clients, we've seen the benefits of it, we've seen an increased level of momentum, and we continue to be very positive about the outcome. Now as I said in previous conversations, there are certain products that we can offer to customers on day one. Thank you for joining us today. are correct and suitable for said clients. So it's an important process that we've, which is why we repeat, we never made any revenue synergies because we didn't want to be bound by timeline expectations, ensuring that we didn't rush certain aspects of future revenue, which we feel and continue to feel very strongly about. because of that suitability and ensuring that we're not moving too quickly for the sake of achieving a timeline that we've set out to the market. But that momentum continues. And as the clients are now very much embedded in the StoneX system, we're able to leverage that at a greater rate. And we continue to mark lots of cards of wins along the way. I hope that answers your question.

and then Bill, just to follow up on the quarter's results and if there were any one-timer or where any kind of some of the in the income statement like professional fees looked low, if there are any benefits or things that we think about from a normalized basis going forward we should be aware of as we think about your fiscal fourth quarter.

Sure, and we tried to point that out a bit. There's about a $12.5 million recovery, insurance recovery and professional fees net of some settlements it's about eight and a half million I would say on a net basis for the quarter so that would would have been one you know we did talk about the synergies there were also about four a little over four million of severance and retention in the quarter so kind of netting those out versus synergies I think those are probably the only two I would call out Dan okay thanks I'll get back in the queue one moment for our next question

Our next question comes from Jeff Schmidt from William Blair. Please go ahead, Jeff. Hi, good morning. On the revenue synergies, I know you spend a lot of time, you know, getting to know RJO's derivative capabilities and going through their client list. But what are some of the takeaways you have from going through their books? And, you know, I think it just started your cross-selling efforts. But for your OTC derivatives, so maybe if you can give us a sense on how long you think that could take.

That does seem to be the question everyone wants to know, isn't it? As I said, we've been able to achieve a lot of interaction between existing parts of R.J. O'Brien and Stonex even before the integration has been completed. Very much increasing that awareness of what we have to offer. A lot of our... And I would say one of... What I said before is that we've had some very easy wins with regards to offering platforms and capabilities that perhaps in our physical business. Now, those are already being utilized across legacy R.J. O'Brien clients. because they see it as an opportunity and some of them would have liked to have been able to do that in-house at R.J. O'Brien. They didn't have the capability and in some cases didn't know there was an alternative or didn't know there was a product of such that would help them. That's been crucial in just increasing the awareness. Now you must remember R.J. O'Brien have 350 IBs who themselves have underlying clients. So reaching out to the end client has been a process of integration, a process of awareness, and a process in which we have tried as actively and as deeply as possible to engage with those underlying clients and really demonstrate all the capabilities that are on offer. Now equally things, as we said quite early on, things like foreign exchange provision, things like OTC, access to our physical hedging capability, access to physical contracts, things that we sometimes just take for granted, it does have to have a lead time of rollout. So we've not put any pressure on people to sell. We make this very clear. We don't want this to be seen as something that we are trying to force on people. It's all about increased awareness and education and highlighting all the capabilities. And I'm not saying that every single client of R.J. O'Brien who traditionally traded futures to hedge their exposure, their risk mitigation in whatever product it might be, will automatically move to an OTC. But the beauty of an OTC product is that we're able to custom make a hedge for our clients. That's what our client base does benefit from. They enjoy the personal suitability and targeting of the product. are specifically their product, their exposure, and themselves. And I think that's what makes a difference. But it takes time. And we've built out huge OTC businesses from scratch in parts of the world, in EMEA and APAC, where I would say five, six years ago our OTC capability was almost minimal. That's now a big driving force of our expansion and our relevance to our clients. So we try to apply that same logic to all clients, regardless of whether they are legacy RGO Bryan or not. So that's very much the direction we're going, very much the strategy, and the RGO client base is part of that. But just like every other client who touches Stonix in one way, we want to ensure there's more that we can offer. and I think that's why I went into the you know the deep dive with our prime business because that's an illustration where we've brought all the capabilities with an ecosystem into a single product offering which you know I think is a distinction between us and many and many other participants in the market and then a question on the payments

The RPM continues to decline there. It's fallen for a couple of years now. I think in the past, we talked about a client mix shift having some impact, maybe moving into larger banks, but could you discuss what's driving that and how much farther do you think that can fall?

Well, if you go back to, I'm trying to remember when we did the deep dive on payments, it coincided with the launch of our proprietary system, XPAY. And the key there was all about capacity. And you must remember that up until that point, we were turning away business. We had many, many banks, payments companies wanting to move more business towards us, very much high volume, low value payments. and our system at the time did not have the capability and so we were turning away business. Once we rolled out XPAY, as I said, we increased the capacity 15-fold and then allowed those banks, those FIs, those payments companies to use our payment channels, our rails to get into the countries that they were lacking but at a scale that they were not able to provide themselves and prior to the rollout of XPAY, we were not able to provide. So that was a key driver for the need to build out a new system and also a desire to take on that business that the world was struggling with. And so we've seen that growth. We continue to see a lot of large companies, large payment companies, increasing number of banks who have this flow of and are now actively directing it to Stolex because we now have that capability and are able to provide that level of service as we do with the lower volume, higher value payments. So it increases that capability and that's the reason why you're seeing the average, The average daily volume going up, but you're also seeing the revenue per trade going down. And we continue to expect that to be a trend for the foreseeable future.

That could be over the next few years.

Go ahead.

No, I was going to say you can kind of see what Philip's talking about when you look at you know our first quarter of this fiscal year that's when you really saw a big spike up in our volumes and you did see a trend down a bit in the rate per million from a little over 10 to you know 9.9 9,400 per million but then you've seen that actually trend up and the volumes have grown which which has been a nice trend during the fiscal year going up you know sequentially for three quarters so it did kind of level set shift down as Philip said as that that system got rolled out but now We're seeing it. It turned up a little bit. I don't think it's necessarily going to get to where it was, but the volumes are growing quite fast and it's nice to see them.

and it was just shy of a record quarter and which is the reason I say that is because historically in our payments business the Q1 has always been you know the high watermark in most years and you know we were just shy of of you know beating the Q1 the Q1 high watermark from 2024 so you know I think the pleasing to see I've I've I am hoping to have a deep dive in payments for our Q1 27 call because it should coincide with quite a few initiatives and exciting opportunities that we want to throw out and bring together and highlight the strategy, which will probably be about three years after we lasted the deep dive.

Okay, great. And then the question on client float, obviously up a lot from the RJO deal, but what do you think that can grow at after the deal kind of annualizes or lapses and then Any changes in your investment strategy there? Are you increasing duration, using more swaps, anything like that?

Yeah, I mean, I think that post the deal, I think you can certainly be growing those balances. High single-digit percent, right? The industry continues to grow, and I think that we've got a compelling story, being the largest non-bank company USFCM and continuing to grow obviously in the UK and Singapore as well. So definitely becoming more relevant there. And on the investment front, we're not really doing anything different than what we've kind of talked over the last nine months. You know, post integration, you know, we are continuing to put in some levels. As I said in my remarks today, we did do about another three quarters of a billion of two year swaps and to kind of average in this quarter to kind of put a floor So overall, we've got about $2.5 billion of swaps out there at a little over 350 basis points, which puts a nice kind of floor for us on a piece of it. And then there's a little bit of duration we're taking, but not a lot on the actual investment side. There's probably about $1.5 billion there as well that we've got. A little bit out on the curve, but nothing more than two years. And so, you know, just trying to continue to maximize and make sure that we're earning, you know, a little bit of a premium over SOFR, you know, 10 or 15 basis points is kind of what we're targeting.

Yeah, okay. Just one last one. You know, I think at the Q it had mentioned greater adoption of your automated trading platform with regards to your OTC derivatives business. I don't know if that's a newer initiative or something you've been investing in. I was just curious why that was called out specifically.

No, it's not new, but I think it's fair to say it's been accelerated and improved and the efficiencies achieved using AI to speed the upgrades and the increased capability and the increased efficiency from our platforms. That's something we are seeing across the board. And you're seeing it as a highlight in the OTC capability where our electronic swap matching platform has just been rolled out. And it has been rolled out at a time, but the acceleration and the efficiency of the capability within the platform has really made a meaningful difference. And a lot of that relates back to my announcement in the last quarter where we We went from an AI perspective, from sort of early adoption, experimenting, you know, sort of just playing around to rolling out an enterprise-wide capability, which is becoming increasingly core and central to our overall technology build-out. And, you know, that is a good example. Our swap platform is a good example where we're starting to see early wins on that. and we are similarly rolling out the capability to improve efficiency in reconciliations and investigations and LC management, settlement instruction corrections and technology platform and project acceleration. So, you know, a lot of that will be provided as a sort of post six month announcement in the next earnings call. So I think we want to start demonstrating to our investors and the market what we've been able to achieve, whether it's cost savings, reduction in vendors, whether it's efficiency of technology, acceleration of rollout of new product capability, all the such. So that's the objective there in the next quarterly earnings.

And I would just add, Jeff, one of the other nice things that's come out is if you looked back six, seven years ago and a lot of the structured products that were trading in OTC, those were phone conversations that were going on with our desk and the broker and the clients to kind of customize a solution and find out what it is. And now we have tools to where customers can just be looking at live pricing for structured products that fit the needs that they have. So it's a much quicker execution, much more customizable and gives them a great view. So those kind of things that are another thing that's kind of driving that, those volume growth.

And it makes expansion geographically that much easier. Yeah. because you're not feeding through to people to pricing transactions. You're able to offer it to more and more parts of our global footprint and the clients that sit throughout the globe. Okay, thank you.

That's all I had.

One moment for our next question. Our next question comes from Dan Fannin from Jefferies. Please go ahead, Dan.

Thanks for taking a follow-up. So just wanted to get your updated thoughts on M&A here currently and maybe the dialogue interactivity as you see in the kind of back half of the calendar year, if you see that picking up for yourselves.

I think I've been asked that before, and I think the response has been we are always looking at transactions. We are known as a consolidator. We're known as an acquirer in the markets. And we have stuck to very strict principles of the logic for adding to the StoneX ecosystem. And whether it expands our geographical footprint, whether it expands our product offering, or whether it brings us a book of clients that we didn't have before. And that doesn't stop. And I think we said, there's always half a dozen transactions that we're looking at. And I think I actually put it out there, almost business as usual is for us to be building acquiring companies sort of $10 to $40 million in size that add to that increased capability. And I don't see that being anything other than almost business as usual now. I think a lot of companies, a lot of small, monoline business lines, maybe sole proprietors who are looking for an exit strategy, we are seen as an opportunity for those to extract value and bring a capability that will be added and hugely supplement the product offering across our entire ecosystem. And at the same time, give the entire ecosystem Thank you very much. and then we've obviously been able to demonstrate that even companies the size of R.J. O'Brien, which are the largest transaction we've ever completed, was able to be integrated on time on the timelines within budgets and achieving the objectives that we set out on day one. So I think we now have a dedicated team, dedicated resources that continue to look at transactions, to make the acquisitions, to complete the acquisitions, and then most importantly, to complete the integration. And that's a key part of our business and DNA going forward. But we are not desperate. We don't go out trying to find gaps. Unless there's an obvious glaring gap in our ecosystem that we'd like to fill, we would actively keep an eye out. But on the whole, we look at many, many transactions. We're very disciplined in our approach. And what we like and what we'll add to our ecosystem, we will look to see if we can achieve that.

Great. Thanks for taking all my questions.

No problem.

I am showing no further questions at this time. I would now like to turn it back to Philip for closing remarks.

Well, thank you all for your time. We're very pleased with our Q3 numbers. And once again, a huge shout out to all StoneX employees who have helped make this happen by continuing to provide a standout level of service, professionalism, and relevance to the market and our ever increasing number of clients and customers. And of course, to each other. Thank you very much.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.