StoneX Group Inc (SNEX) Q3 2024 Earnings Report

StoneX Group Inc delivered a stark revenue surge in QQ3 2024 (calendar Q3) with total revenue of $27.0697 billion, up 79.89% year-over-year and 22.45% quarter-over-quarter. Despite the strong top line, gross margins remained compressed at roughly 2.10%, yielding a net margin of approximately 0.23% and a net income of $61.9 million for the quarter. Diluted EPS stood at $1.88, up 16.07% sequentially but down 12.56% versus the prior year, reflecting a mix that benefits from scale yet is constrained by high cost of revenue and elevated interest/other non-operating items.

Profitability appears to hinge on the company’s ability to manage the substantial cost of revenue, as gross profit was $567.7 million against the heavy revenue base. EBITDA was $425.1 million with an EBITDA margin of about 1.57%. Operating income was $411.9 million (margin ≈ 1.52%), but other income/expenses net of $(323.9) million reduced pre-tax income to $88.0 million and after taxes to $61.9 million. The company ended the period with a cash balance of $6.378 billion, but reported negative net operating cash flow of $(622.1) million and negative free cash flow of $(640.5) million, underscoring working-capital and receivables-driven funding dynamics.

From a balance sheet perspective, total assets were $25.93 billion with total liabilities of $24.32 billion and equity of $1.61 billion. Total debt stood at $9.16 billion, leaving a net debt position of $8.08 billion. The liquidity profile shows very high implied current ratios (reported current ratio ≈ 779x, quick ratio ≈ 755x, cash ratio ≈ 49.8x) driven by a large stockholders’ receivables and other current assets base relative to modest current liabilities; however, the negative operating cash flow and high leverage point to liquidity and coverage risks if market conditions deteriorate. Management commentary from the call is not included in the provided data, so a qualitative read on strategic actions is constrained.

Bottom line: QQ3 2024 confirms StoneX’s ability to scale revenue across its multi-segment platform, but margins remain pressured and cash generation is challenged on an operating basis. The forward-looking investment thesis hinges on margin normalization, sustained revenue growth across Commercial, Institutional, Retail, and Global Payments, and disciplined capital management to reduce leverage and improve free cash flow generation.