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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________
FORM 10-Q
____________________
(Mark One)
| | | | | |
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly Period Ended June 30, 2022
OR
| | | | | |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Transition Period From to
Commission File Number 000-23554
StoneX Group Inc.
(Exact name of registrant as specified in its charter)
| | | | | | | | |
Delaware | | 59-2921318 |
(State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification No.) |
230 Park Ave, 10th Floor
New York, NY 10169
(Address of principal executive offices) (Zip Code)
(212) 485-3500
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
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Title of Each Class | | Trading Symbol | | Name of each exchange on which registered |
Common Stock, $0.01 par value | | SNEX | | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer, ” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Large accelerated filer | x | | Accelerated filer | ☐ |
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Non-accelerated filer | o | | Smaller reporting company | ☐ |
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| | | Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of August 1, 2022, there were 20,261,564 shares of the registrant’s common stock outstanding.
StoneX Group Inc.
Quarterly Report on Form 10-Q for the Quarterly Period Ended June 30, 2022
Table of Contents
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Part I. FINANCIAL INFORMATION | |
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Item 1. | | |
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Item 2. | | |
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Item 3. | | |
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Item 4. | | |
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Part II. OTHER INFORMATION | |
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Item 1. | | |
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Item 1A. | | |
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Item 2. | | |
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Item 6. | | |
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
StoneX Group Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
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(in millions, except par value and share amounts) | June 30, 2022 | | September 30, 2021 |
ASSETS | | | |
Cash and cash equivalents | $ | 1,363.7 | | | $ | 1,109.6 | |
Cash, securities and other assets segregated under federal and other regulations (including $21.5 million and $14.1 million at fair value at June 30, 2022 and September 30, 2021, respectively) | 2,543.8 | | | 2,274.4 | |
Collateralized transactions: | | | |
Securities purchased under agreements to resell | 1,716.2 | | | 2,239.9 | |
Securities borrowed | 1,108.7 | | | 2,163.1 | |
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Deposits with and receivables from broker-dealers, clearing organizations and counterparties, net (including $3,543.1 million and $1,070.6 million at fair value at June 30, 2022 and September 30, 2021, respectively) | 7,260.1 | | | 5,292.9 | |
Receivable from clients, net (including $(21.2) million and $2.6 million at fair value at June 30, 2022 and September 30, 2021, respectively) | 627.6 | | | 461.1 | |
Notes receivable, net | 5.0 | | | 6.1 | |
Income taxes receivable | 9.2 | | | 26.6 | |
Financial instruments owned, at fair value (includes securities pledged as collateral that can be sold or repledged of $2,040.8 million and $843.3 million at June 30, 2022 and September 30, 2021, respectively) | 3,733.5 | | | 4,354.6 | |
Physical commodities inventory, net (including $396.0 million and $359.9 million at fair value at June 30, 2022 and September 30, 2021, respectively) | 564.2 | | | 447.5 | |
Deferred income taxes, net | 43.0 | | | 35.1 | |
Property and equipment, net | 109.8 | | | 93.3 | |
Operating right of use assets | 113.8 | | | 125.3 | |
Goodwill and intangible assets, net | 90.0 | | | 100.8 | |
Other assets | 120.2 | | | 109.3 | |
Total assets | $ | 19,408.8 | | | $ | 18,839.6 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | | | |
Liabilities: | | | |
Accounts payable and other accrued liabilities (including $0.0 million and $2.8 million at fair value at June 30, 2022 and September 30, 2021, respectively) | $ | 337.2 | | | $ | 305.1 | |
Operating lease liabilities | 133.9 | | | 146.6 | |
Payables to: | | | |
Clients (including $624.9 million and $291.5 million at fair value at June 30, 2022 and September 30, 2021, respectively) | 10,146.9 | | | 7,835.9 | |
Broker-dealers, clearing organizations and counterparties (including $6.5 million and $12.7 million at fair value at June 30, 2022 and September 30, 2021, respectively) | 430.7 | | | 613.5 | |
Lenders under loans | 508.2 | | | 248.6 | |
Senior secured borrowings, net | 338.9 | | | 507.0 | |
Income taxes payable | 25.0 | | | 13.2 | |
Collateralized transactions: | | | |
Securities sold under agreements to repurchase | 2,807.7 | | | 4,340.9 | |
Securities loaned | 1,095.5 | | | 2,153.6 | |
Financial instruments sold, not yet purchased, at fair value | 2,537.5 | | | 1,771.2 | |
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Total liabilities | 18,361.5 | | | 17,935.6 | |
Commitments and contingencies (Note 11) | | | |
Stockholders' equity: | | | |
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Preferred stock, $0.01 par value. Authorized 1,000,000 shares; no shares issued or outstanding | — | | | — | |
Common stock, $0.01 par value. Authorized 30,000,000 shares; 22,864,795 issued and 20,257,472 outstanding at June 30, 2022 and 22,431,233 issued and 19,823,910 outstanding at September 30, 2021 | 0.2 | | | 0.2 | |
Common stock in treasury, at cost. 2,607,323 shares at June 30, 2022 and 2,607,323 shares at September 30, 2021 | (69.3) | | | (69.3) | |
Additional paid-in-capital | 334.7 | | | 315.7 | |
Retained earnings | 837.3 | | | 682.5 | |
Accumulated other comprehensive loss, net | (55.6) | | | (25.1) | |
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Total equity | 1,047.3 | | | 904.0 | |
Total liabilities and stockholders' equity | $ | 19,408.8 | | | $ | 18,839.6 | |
See accompanying notes to the condensed consolidated financial statements.
StoneX Group Inc.
Condensed Consolidated Income Statements
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended June 30, | | Nine Months Ended June 30, |
(in millions, except share and per share amounts) | 2022 | | 2021 | | 2022 | | 2021 |
Revenues: | | | | | | | |
Sales of physical commodities | $ | 18,431.0 | | | $ | 9,785.9 | | | $ | 48,214.1 | | | $ | 29,473.7 | |
Principal gains, net | 295.2 | | | 232.1 | | | 869.8 | | | 700.7 | |
Commission and clearing fees | 126.9 | | | 124.0 | | | 381.6 | | | 373.2 | |
Consulting, management, and account fees | 27.7 | | | 22.3 | | | 77.2 | | | 67.4 | |
Interest income | 50.1 | | | 27.8 | | | 112.3 | | | 72.4 | |
Total revenues | 18,930.9 | | | 10,192.1 | | | 49,655.0 | | | 30,687.4 | |
Cost of sales of physical commodities | 18,402.1 | | | 9,760.6 | | | 48,131.0 | | | 29,404.4 | |
Operating revenues | 528.8 | | | 431.5 | | | 1,524.0 | | | 1,283.0 | |
Transaction-based clearing expenses | 74.7 | | | 67.1 | | | 222.1 | | | 207.3 | |
Introducing broker commissions | 41.2 | | | 41.8 | | | 122.7 | | | 120.8 | |
Interest expense | 28.1 | | | 14.5 | | | 57.9 | | | 35.5 | |
Interest expense on corporate funding | 10.7 | | | 10.1 | | | 33.1 | | | 31.1 | |
Net operating revenues | 374.1 | | | 298.0 | | | 1,088.2 | | | 888.3 | |
Compensation and other expenses: | | | | | | | |
Compensation and benefits | 202.2 | | | 177.3 | | | 584.3 | | | 515.9 | |
Trading systems and market information | 16.0 | | | 14.4 | | | 49.0 | | | 42.9 | |
Professional fees | 13.2 | | | 9.5 | | | 38.9 | | | 27.8 | |
Non-trading technology and support | 12.9 | | | 11.3 | | | 38.7 | | | 32.8 | |
Occupancy and equipment rental | 9.2 | | | 9.7 | | | 26.7 | | | 25.8 | |
Selling and marketing | 16.0 | | | 8.1 | | | 41.3 | | | 23.4 | |
Travel and business development | 4.9 | | | 1.3 | | | 10.8 | | | 2.8 | |
Communications | 2.0 | | | 2.3 | | | 6.0 | | | 7.0 | |
Depreciation and amortization | 11.7 | | | 9.7 | | | 32.1 | | | 26.7 | |
Bad debt (recovery) expense, net | (0.7) | | | 1.3 | | | 11.4 | | | 3.7 | |
Other | 15.8 | | | 10.7 | | | 44.6 | | | 33.9 | |
Total compensation and other expenses | 303.2 | | | 255.6 | | | 883.8 | | | 742.7 | |
Other gain | — | | | 3.6 | | | 6.4 | | | 3.6 | |
Income before tax | 70.9 | | | 46.0 | | | 210.8 | | | 149.2 | |
Income tax expense | 21.8 | | | 11.8 | | | 56.0 | | | 40.2 | |
Net income | $ | 49.1 | | | $ | 34.2 | | | $ | 154.8 | | | $ | 109.0 | |
Earnings per share: | | | | | | | |
Basic | $ | 2.42 | | | $ | 1.72 | | | $ | 7.69 | | | $ | 5.53 | |
Diluted | $ | 2.37 | | | $ | 1.67 | | | $ | 7.52 | | | $ | 5.38 | |
Weighted-average number of common shares outstanding: | | | | | | | |
Basic | 19,634,450 | | | 19,255,452 | | | 19,529,843 | | | 19,102,244 | |
Diluted | 20,109,992 | | | 19,855,226 | | | 19,984,898 | | | 19,669,397 | |
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See accompanying notes to the condensed consolidated financial statements.
StoneX Group Inc.
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
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| Three Months Ended June 30, | | Nine Months Ended June 30, |
(in millions) | 2022 | | 2021 | | 2022 | | 2021 |
Net income | $ | 49.1 | | | $ | 34.2 | | | $ | 154.8 | | | $ | 109.0 | |
Other comprehensive (loss)/gain, net of tax: | | | | | | | |
Foreign currency translation adjustment | (5.4) | | | 4.0 | | | (5.5) | | | 16.3 | |
Cash flow hedges | (6.8) | | | — | | | (25.0) | | | — | |
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Other comprehensive (loss)/gain, net of tax | (12.2) | | | 4.0 | | | (30.5) | | | 16.3 | |
Comprehensive income | $ | 36.9 | | | $ | 38.2 | | | $ | 124.3 | | | $ | 125.3 | |
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See accompanying notes to the condensed consolidated financial statements.
StoneX Group Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited) | | | | | | | | | | | |
| Nine Months Ended June 30, |
(in millions) | 2022 | | 2021 |
Cash flows from operating activities: | | | |
Net income | $ | 154.8 | | | $ | 109.0 | |
Adjustments to reconcile net income to net cash (used in)/provided by operating activities: | | | |
Depreciation and amortization | 32.1 | | | 26.7 | |
Amortization of right of use assets | 12.1 | | | 6.5 | |
Bad debt expense, net | 11.4 | | | 3.7 | |
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Deferred income taxes | 0.4 | | | 2.2 | |
Amortization of debt issuance costs | 3.5 | | | 2.9 | |
Amortization of share-based compensation | 12.8 | | | 10.3 | |
Gain on sale of property and equipment | — | | | (0.5) | |
Bargain purchase gain on acquisition | — | | | (3.3) | |
Changes in operating assets and liabilities, net: | | | |
Securities and other assets segregated under federal and other regulations | (7.3) | | | (8.1) | |
Securities purchased under agreements to resell | 523.7 | | | (331.0) | |
Securities borrowed | 1,054.4 | | | (257.3) | |
Deposits with and receivables from broker-dealers, clearing organizations, and counterparties, net | (2,931.3) | | | (164.1) | |
Receivables from clients, net | (176.7) | | | (217.8) | |
Notes receivable, net | 1.1 | | | (4.9) | |
Income taxes receivable | 17.4 | | | (0.5) | |
Financial instruments owned, at fair value | 621.1 | | | (739.5) | |
Physical commodities inventory, net | (117.9) | | | (203.7) | |
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Other assets | (12.4) | | | (13.7) | |
Accounts payable and other accrued liabilities | 36.4 | | | 35.2 | |
Operating lease liabilities | (13.3) | | | (2.4) | |
Payables to clients | 2,311.0 | | | 1,488.5 | |
Payables to broker-dealers, clearing organizations, and counterparties | (182.8) | | | (162.0) | |
Income taxes payable | 11.8 | | | (6.3) | |
Securities sold under agreements to repurchase | (1,533.2) | | | 472.1 | |
Securities loaned | (1,058.1) | | | 258.4 | |
Financial instruments sold, not yet purchased, at fair value | 733.0 | | | 1,078.2 | |
Net cash (used in)/provided by operating activities | (496.0) | | | 1,378.6 | |
Cash flows from investing activities: | | | |
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Cash paid for acquired intangible assets and business acquisitions, net | (0.2) | | | (0.4) | |
Proceeds from sale of property, plant, and equipment | — | | | 3.1 | |
Sale of exchange memberships and common stock | 0.2 | | | — | |
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Purchases of property and equipment | (37.6) | | | (53.5) | |
Net cash used in investing activities | (37.6) | | | (50.8) | |
Cash flows from financing activities: | | | |
Net change in payables to lenders under loans with maturities 90 days or less | 269.6 | | | 1.6 | |
Proceeds from payables to lenders under loans with maturities greater than 90 days | 452.0 | | | 143.4 | |
Repayments of payables to lenders under loans with maturities greater than 90 days | (462.0) | | | (148.4) | |
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Repayments of senior secured term loan | (170.3) | | | (7.4) | |
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Repayment of senior secured notes | — | | | (1.6) | |
Issuance of note payable | — | | | 9.0 | |
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Deferred payments on acquisitions | (1.5) | | | (1.7) | |
Payment of contingent consideration | (2.8) | | | — | |
Repurchase of common stock | — | | | (3.1) | |
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Exercise of stock options | 6.2 | | | 7.6 | |
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Net cash provided by/(used in) financing activities | 91.2 | | | (0.6) | |
Effect of exchange rates on cash, segregated cash, cash equivalents, and segregated cash equivalents | (5.5) | | | 16.7 | |
Net (decrease)/increase in cash, segregated cash, cash equivalents, and segregated cash equivalents | (447.9) | | | 1,343.9 | |
Cash, segregated cash, cash equivalents, and segregated cash equivalents at beginning of period | 6,509.5 | | | 4,468.4 | |
Cash, segregated cash, cash equivalents, and segregated cash equivalents at end of period | $ | 6,061.6 | | | $ | 5,812.3 | |
Supplemental disclosure of cash flow information: | | | |
Cash paid for interest | $ | 85.4 | | | $ | 58.0 | |
Income taxes paid, net of cash refunds | $ | 25.4 | | | $ | 44.7 | |
Supplemental disclosure of non-cash investing and financing activities: | | | |
Identified intangible assets and goodwill on acquisitions | $ | — | | | $ | 0.5 | |
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Acquisition of business: | | | |
Assets acquired | $ | — | | | $ | 0.1 | |
Liabilities assumed | — | | | (0.2) | |
Total net liabilities assumed | $ | — | | | $ | (0.1) | |
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See accompanying notes to the condensed consolidated financial statements.
StoneX Group Inc.
Condensed Consolidated Statements of Cash Flows - Continued
(Unaudited)
The following table provides a reconciliation of cash, segregated cash, cash equivalents, and segregated cash equivalents reported within the Condensed Consolidated Balance Sheets.
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| June 30, |
(in millions) | 2022 | | 2021 |
Cash and cash equivalents | $ | 1,363.7 | | | $ | 1,075.6 | |
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Cash segregated under federal and other regulations(1) | 2,522.3 | | | 2,229.5 | |
Securities segregated under federal and other regulations(1) | 0.1 | | | 75.0 | |
Cash segregated and deposited with or pledged to exchange-clearing organizations and other futures commission merchants (“FCMs”)(2) | 1,910.0 | | | 2,245.0 | |
Securities segregated and pledged to exchange-clearing organizations(2) | 265.5 | | | 187.2 | |
Total cash, segregated cash, cash equivalents, and segregated cash equivalents shown in the condensed consolidated statements of cash flows | $ | 6,061.6 | | | $ | 5,812.3 | |
(1) Represents segregated client cash held at third-party banks. Excludes segregated commodity warehouse receipts, segregated U.S. Treasury obligations with original or acquired maturities of greater than 90 days, and other assets of $21.4 million and $21.0 million as of June 30, 2022 and 2021, respectively, included within Cash, securities and other assets segregated under federal and other regulations on the Condensed Consolidated Balance Sheets.
(2) Represents segregated client cash and U.S. Treasury obligations on deposit with, or pledged to, exchange clearing organizations and other FCMs. Excludes non-segregated cash, segregated U.S. Treasury obligations pledged to exchange-clearing organizations with original or acquired maturities greater than 90 days, and other assets of $5,084.6 million and $2,185.4 million as of June 30, 2022 and 2021, respectively, included within Deposits with and receivables from broker-dealers, clearing organizations, and counterparties, net on the Condensed Consolidated Balance Sheets.
See accompanying notes to the condensed consolidated financial statements.
StoneX Group Inc.
Condensed Consolidated Statements of Stockholders’ Equity
(Unaudited)
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| Three Months Ended June 30, 2021 |
(in millions) | Common Stock | | Treasury Stock | | Additional Paid-in Capital | | Retained Earnings | | Accumulated Other Comprehensive Loss, net | | Total |
Balances as of March 31, 2021 | $ | 0.2 | | | $ | (57.6) | | | $ | 304.4 | | | $ | 641.0 | | | $ | (27.8) | | | $ | 860.2 | |
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Net income | — | | | — | | | — | | | 34.2 | | | — | | | 34.2 | |
Other comprehensive loss, net of tax | — | | | — | | | — | | | — | | | 4.0 | | | 4.0 | |
Exercise of stock options | — | | | — | | | 2.3 | | | — | | | — | | | 2.3 | |
Share-based compensation | — | | | — | | | 3.8 | | | — | | | — | | | 3.8 | |
Repurchase of common stock | — | | | (3.1) | | | — | | | — | | | — | | | (3.1) | |
Balances as of June 30, 2021 | $ | 0.2 | | | $ | (60.7) | | | $ | 310.5 | | | $ | 675.2 | | | $ | (23.8) | | | $ | 901.4 | |
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| Three Months Ended June 30, 2022 |
(in millions) | Common Stock | | Treasury Stock | | Additional Paid-in Capital | | Retained Earnings | | Accumulated Other Comprehensive Loss, net | | Total |
Balances as of March 31, 2022 | $ | 0.2 | | | $ | (69.3) | | | $ | 329.9 | | | $ | 788.2 | | | $ | (43.4) | | | $ | 1,005.6 | |
Net income | — | | | — | | | — | | | 49.1 | | | — | | | 49.1 | |
Other comprehensive loss, net of tax | — | | | — | | | — | | | — | | | (12.2) | | | (12.2) | |
Exercise of stock options | — | | | — | | | 0.3 | | | — | | | — | | | 0.3 | |
Share-based compensation | — | | | — | | | 4.5 | | | — | | | — | | | 4.5 | |
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Balances as of June 30, 2022 | $ | 0.2 | | | $ | (69.3) | | | $ | 334.7 | | | $ | 837.3 | | | $ | (55.6) | | | $ | 1,047.3 | |
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| Nine Months Ended June 30, 2021 |
(in millions) | Common Stock | | Treasury Stock | | Additional Paid-in Capital | | Retained Earnings | | Accumulated Other Comprehensive Loss, net | | Total |
Balances as of September 30, 2020 | $ | 0.2 | | | $ | (57.6) | | | $ | 292.6 | | | $ | 572.4 | | | $ | (40.1) | | | $ | 767.5 | |
ASU 2016-13 cumulative transition adjustment | — | | | — | | | — | | | (6.2) | | | — | | | (6.2) | |
Adjusted balances as of September 30, 2020 | 0.2 | | | (57.6) | | | 292.6 | | | 566.2 | | | (40.1) | | | 761.3 | |
Net income | — | | | — | | | — | | | 109.0 | | | — | | | 109.0 | |
Other comprehensive income, net of tax | — | | | — | | | — | | | — | | | 16.3 | | | 16.3 | |
Exercise of stock options | — | | | — | | | 7.6 | | | — | | | — | | | 7.6 | |
Share-based compensation | — | | | — | | | 10.3 | | | — | | | — | | | 10.3 | |
Repurchase of common stock | $ | — | | | (3.1) | | | $ | — | | | $ | — | | | $ | — | | | (3.1) | |
Balances as of June 30, 2021 | $ | 0.2 | | | $ | (60.7) | | | $ | 310.5 | | | $ | 675.2 | | | $ | (23.8) | | | $ | 901.4 | |
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| Nine Months Ended June 30, 2022 |
(in millions) | Common Stock | | Treasury Stock | | Additional Paid-in Capital | | Retained Earnings | | Accumulated Other Comprehensive Loss, net | | Total |
Balances as of September 30, 2021 | $ | 0.2 | | | $ | (69.3) | | | $ | 315.7 | | | $ | 682.5 | | | $ | (25.1) | | | $ | 904.0 | |
Net income | — | | | — | | | — | | | 154.8 | | | — | | | 154.8 | |
Other comprehensive loss, net of tax | — | | | — | | | — | | | — | | | (30.5) | | | (30.5) | |
Exercise of stock options | — | | | — | | | 6.2 | | | — | | | — | | | 6.2 | |
Share-based compensation | — | | | — | | | 12.8 | | | — | | | — | | | 12.8 | |
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Balances as of June 30, 2022 | $ | 0.2 | | | $ | (69.3) | | | $ | 334.7 | | | $ | 837.3 | | | $ | (55.6) | | | $ | 1,047.3 | |
See accompanying notes to the condensed consolidated financial statements.
StoneX Group Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
Note 1 – Basis of Presentation and Consolidation and Accounting Standards Adopted
StoneX Group Inc., a Delaware corporation, and its consolidated subsidiaries (collectively “StoneX” or “the Company”), is a global financial services network that connects companies, organizations, traders and investors to the global market ecosystem through a unique blend of digital platforms, end-to-end clearing and execution services, high touch service, and deep expertise. The Company strives to be the one trusted partner to its clients, providing its network, products and services to allow them to pursue trading opportunities, manage their market risks, make investments and improve their business performance. The Company offers a vertically integrated product suite, beginning with high-touch and electronic access to nearly all major financial markets worldwide, as well as numerous liquidity venues. The Company delivers access and services through the entire lifecycle of a trade, by delivering deep market expertise and on-the-ground intelligence, best execution, and finally post-trade clearing, custody, as well as settlement services. The Company has created revenue streams, diversified by asset class, client type and geography, that earn commissions and spreads as clients execute transactions across its financial network, while monetizing non-trading client activity including interest and fee earnings on client balances as well as earning consulting fees for market intelligence and risk management services.
The Company provides its services to a diverse group of clients in more than 180 countries. These clients include more than 52,000 commercial, institutional, and global payments clients and over 370,000 retail clients. The Company’s clients include commercial entities, asset managers, regional, national and introducing broker-dealers, insurance companies, brokers, institutional investors and professional traders, commercial and investment banks and government and non-governmental organizations (“NGOs”).
The Company’s common stock trades on The NASDAQ Global Select Market under the symbol “SNEX”.
Basis of Presentation and Consolidation
The accompanying unaudited Condensed Consolidated Balance Sheet as of September 30, 2021, which has been derived from the audited consolidated balance sheet of September 30, 2021, and the unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to those rules and regulations. The Company believes that the included disclosures clearly and fairly present the information within. In management’s opinion, all adjustments, generally consisting of normal accruals, considered necessary to fairly present the condensed consolidated financial statements for the interim periods presented have been reflected as required by Rule 10-01 of Regulation S-X.
Operating results for interim periods are not necessarily indicative of the results that may be expected for the related full year. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2021, as filed with the SEC.
These condensed consolidated financial statements include the accounts of StoneX Group Inc. and all entities in which the Company has a controlling financial interest. All material intercompany transactions and balances have been eliminated in consolidation.
The Company’s fiscal year end is September 30, and its fiscal quarters end on December 31, March 31, June 30 and September 30. Unless otherwise stated, all dates refer to fiscal years and fiscal interim periods.
Preparing condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The most significant of these estimates and assumptions relate to fair value measurement for financial instruments, revenue recognition, valuation