StoneX Group Inc. Price & Performance (SNEX)

These forward looking statements involve known and unknown risks and uncertainties. Which are detailed in our filings with the SEC. Although the company believes that its forward looking statements are based upon reasonable assumptions, regarding its business and future market conditions, there could be no assurances that the company's actual results will not differ materially from any results expected or implied by the company's forward looking statements. The company undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned that any forward looking statements are not guarantees of future performance. With that, I'll now turn the call over to Sean O'Connor, the company's Executive Vice Chairman. For a brief intro. Thanks, Bill. Good morning, everyone, and thanks for joining our fiscal twenty twenty five first quarter earnings call. I'm very pleased to report that we continue to build on the momentum we developed during fiscal with another record quarter to start fiscal twenty twenty five. Our second record quarter in a row.

We have a different format for the earnings call this time. Based on feedback we received from some of you over the last couple of quarters. As always, please let us know if you have suggestions for us on the format and content of our earnings call and Investor Relations steps.

So back to you, Bill.

Thank you, Sean.

I'll be starting with Slide number four in the slide deck. And as Sean just noted, it was strong start to fiscal twenty twenty five. With first quarter net income coming in at $85,100,000 and diluted earnings per share of $2.54 which represents 2319% growth over the prior year quarter, In addition, these measures were up 119% versus our immediately preceding record fourth quarter. This represented a 19.5% ROE despite a 51% increase in book value over the last two years.

We had record operating revenues of $9,443,000,000 dollars up 20% versus the prior year and up 3% versus the immediately preceding As a reminder, our operating revenues include not only interest and fees income earned on our client balances, but also carried interest that is related to our fixed income trading activities. Net operating revenues, which nets off interest expense, including that which is associated with our fixed income trading activities, as well as introducing broker commissions and clearing fees were up 17% versus a year ago and 8% versus the record achieved in the immediately preceding quarter. Total compensation and expenses were up 17% versus the prior year quarter and 7% versus immediately Variable compensation was up 9% versus the prior year less than the growth rate of net operating revenues. Fixed compensation and related costs were up 24% versus a year ago and up 6% or $7,100,000 versus the immediately preceding quarter. The current quarter includes $5,800,000 in fixed compensation expense related to a departing executive officer. Excluding variable compensation, and the charges related to departing executive officer, total compensation and other expenses were up 2% versus the immediately preceding quarter. It is of note that the income before tax for the first quarter of fiscal twenty twenty five includes gains of $5,700,000 related to class action settlements received which are related included in other gain.

Looking at it from a longer standpoint, our trailing twelve months results show operating revenues up 18%, net income of $276,800,000 up 20% with earnings per share of $8.37 and an ROE of 17% for the trailing twelve month period. We ended the first quarter of fiscal twenty twenty five with a book value per share of $0.55.0.48 dollars Next turning to slide number five in the earnings deck, which compares quarterly operating revenues by product as well as key operating metrics versus a year ago. While in the first quarter of fiscal twenty twenty five, volatility continued to be generally low, with the exception of a select few products, we saw continued growth in client engagement. Represented by an increase in transactional volumes across all of our product offerings as well as a very strong growth in operating revenues derived from physical contracts. The spread capture continued to be challenged in certain areas, particularly in OT derivatives and payments due to diminished volatility and market conditions, However, recent events have shown that this can change rapidly. So we can hopefully see that we may see better market conditions in the future. Just touching on a few key highlights for the quarter.

We saw operating revenues derived from physical contracts up 80% versus the prior year.

Off the off the back of strong growth in both our precious metals and our physical ag and energy business most notably in cotton and cocoa. FX CFD revenues were up 32% due to both a 7% increase in average daily volume as well as a 22% increase in RPM. Driven by improved spare rig retention, and product mix. Securities revenues were up 27% with volumes up 40%, which was partially offset by a 20% decline in rate per million due to continued growth in lower spread products such as U. S. Treasuries and U. S. Listed equities combined with diminished market volatility. Payments revenues were down a modest 4% versus a record year ago quarter, but up 20% versus the immediately preceding quarter. OTC derivatives revenues were down 18% largely due to revenue capture being down 22%. Our interest and fee income earned on our aggregate client float including both listed derivative client equity and money market FDIC suite balances increased 9% versus the immediate prior versus the prior year, primarily driven by growth in client balances. Turning to Slide six, this depicts a water by product of net operating revenues.

From both the prior year quarter to the current one well as the same for the trailing twelve month periods.

Just a reminder, net operating revenues were represents operating revenues less introducing broker commissions clearing fees and interest expense. For the quarter, Net operating revenues increased 17% with the largest gains coming from physical contracts up $35,100,000 and FX CFEs up $24,100,000 while interest and fee income on client balances increased $14,400,000 Looking at the bottom of the graph for the trailing 12 period shows a slightly different picture with large increases coming from interest and fee income, securities and FX CFP contracts represents well the diversity of the Sonix model. [indiscernible] Moving on to Slide seven, I'll do a quick review of our segment performance. All segments were up in both net operating revenue and segment income with the exception of payments. Which I noted earlier was modestly down from a record prior year quarter. In addition, we saw margin expansion across all segments with a very strong result in our self directed retail segment. Our Commercial segment grew net operating revenue 16%, primarily driven by the strong performance in physical contract. This is partially all set. By lower OTC derivative revenues, segment income was 17%. On a sequential basis, net operating revenues were 13% and segment income was up 15%.

Our institutional segments on net operating revenues and segment income grew 1720% The growth in net operating revenues was principally driven by a $4,300,000 increase in a $17,200,000 increase in interest and fee in earned on client balances. Partially offsetting the non operating revenue growth non variable fixed expenses increased 17% However, that was a 10% decline versus the immediately On a sequential basis, both net operating revenues and segment income were relatively flat. Self directed retail had a record quarter with net operating revenues up 41% and segment income up 98%.

Which demonstrates the operating leverage in this business. This is primarily driven by increases in average daily volume rate per million in the FX CSP contract.

On a sequential basis, net operating revenues were up 24% and net income was up 91%.

In our Payments segment, net operating revenues were down 5% in segment income was down 3%. Principally due to tighter FX spreads in several of our key payment corridors while average daily volume was up 12%. On a sequential basis net our operating revenues were up 21% and segment income up 38%. Next moving on to slide number eight, looking at our segment performance for the trailing twelve months.

We saw strong growth in our institutional segment with net operating revenues up 22% and segment income increasing 26 In addition, our Self Directed Retail segments increased net operating revenues and segment income 2587% respectively.

Our commercial and payment segments were relatively flat on a segment income basis. Finally, moving on to Slide nine, which depicts our interest and fees earned on client balances by quarter. As well as the table which shows the annualized interest rate of for a change in short term interest rate The interest and fee income net of interest paid to client and the effective interest rate swaps increased $14,400,000 to $77,400,000 in the current period. This represents a $6,000,000 decline from immediately preceding quarter we are starting to feel the effects of the Fed Max and reduced short term rate As noted in the table, estimate 100 basis point change in short term interest rates either up or down.

Result in a change to net income by $27,700,000 or $0.78.0.78 dollars per share on an annualized basis. [indiscernible] On a final note before I turn it back to Sean for a strategy update, Yesterday, our Board of Directors approved a three for two stock split of its common stock The stock split will be affected as a stock dividend entitling each stockholder of record to receive one additional share of common stock for every two shares owned. Close of trading on 03/21/2025, to stockholders of record at the close of business on 03/11/2025. Cash will be distributed in lieu of fractional shares based on the opening price of its share of common stock 03/12/2025. Trading expected to begin on a stock split adjusted basis on the market open on North twenty four. 2025.

With that, I will hand you back to Sean. Thanks, Phil.

In our prior earnings call covering the full fiscal year 2024 results, I reviewed our overall corporate strategy in some detail. So I'll not repeat all of that each quarter but rather focus on any significant updates or developments that we believe are noteworthy. As you no doubt saw, there was an announcement late last year about some management changes. So perhaps that's a good place to start. So turning to Slide 11. Has been twenty two years since I took the position in what is now Stonex and became From humble beginnings, just 10 people and less than $10,000,000 in equity have grown into a financial franchise of nearly 5,000 employees and over $3,000,000,000 in revenue and market capitalization. These achievements are really a testament to the incredible team at StoneX whose hard work has made this journey possible and provided me with an experience beyond my wildest dreams. Leading this company has been an enormous privilege and one for which I am deeply grateful. I hereby believe that the time had come to start the transition to the next generation of exceptionally capable leaders. Oildex is a fast moving industry and it's important that at every level we are bringing in new talent and moving our proven leaders into new areas to look at things in new ways.

Have constantly done this throughout the organization and is part of our success. Changes are always best done from a position of strength. When things are going well, when you have momentum behind you, and a very strong bench in position, ready to go. With this in mind, I was pleased that late last year we announced that Philip Smith and Charles Lyons have taken on day to day leadership of Stonex as CEO and President effectively. With these changes, I have transitioned to the role of Executive Vice Chairman. Remaining a full time employee a member of the executive committee and with a focus on strategy. Philip, Charles and I have worked together for twenty years and I have complete confidence in their ability to build on our track record of success. I've asked Philip and Charles to join us today on the call to introduce them to you. And perhaps they can each give you a little background on themselves. Philip and Charles, over to you guys. Good morning.

Thank you, Sean.

I'm Philip Smith, previously Chief Executive of Europe, Middle East and Africa.

I've been with Stonex since 02/2004 StoneX, following the acquisition of Global Currencies Limited, a U. K.-based emerging market foreign exchange provider, which today you know is our Payment segment. This UK based business has been the foundation upon which we have successfully built out the full Stonex product offering in London, over the last twenty years. I am both humbled and excited to be appointed the group Chief Executive for Stonex. In politics, one might say I've climbed to the top of the greasy pole. But I see this as being given a huge opportunity to continue on the adventure that is Stonex StoneX. This is a company like no other. With a successful track record like no other, and all that is down to the leadership Sean O'Connor, a mentor for whom I've worked since 02/2004. I have poured my heart and soul into the success of this company and feel a huge level of excitement for the opportunities that lay ahead. The disciplined approach to expanding the Stonex ecosystem by geography, by product, or by acquisitions of teams and businesses has resulted in Stonex being premier financial services firm that it is today. We shall continue along these successful lines each and every day to ensure we maintain our relevance to our clients, our counterparties and the broader market.

Like Sean, I too have worked with Charles since 02/2004, and have a huge amount of respect and friendship with him. I view this next phase of the management of STONEX with excitement and enthusiasm. Thank you. Thank you, Philip and Sean.

Good morning, all. I'm Charles Lyon, I started my career at Stonex in 1999 after college as my first job and have worked at Stonex my entire career.

I began working on the international equity market making desk eventually helping to lead the growing equity trading business through business expansion acquisitions and new product growth. Over the years, my role has expanded to oversee securities clearing, fixed income trading, equity derivatives, prime brokerage, outsourced trading, wealth management and self directed trading. I've also helped to manage our derivatives and FX activities. Both exchange traded over the counter. My role has evolved over the years and my recent focus has been working with our technology operations, [indiscernible] and risk teams, which are all critical to ensuring that are well positioned to maximize the incredible opportunity in front of us at Stonex StoneX. It is an overwhelming privilege to continue serving the teams, clients and shareholders of the organization focusing on developing and deploying our group strategy for future success. Thank you very much.

Thanks, guys. I'm very excited and confident that skills, the internal support and most of all the passion to continue our amazing strategy. Moving on to highlight a few strategy updates. We just last week closed the acquisition of Okto Finance, a leading fixed income trading firm in Paris with experience in bond and convertible securities debt capital markets and credit research. Okta has a footprint of over 500 clients including banks, debt funds, mutual funds and wealth managers. The acquisition provides us with broad access into the EU institutional market and we believe we will be able to significantly enhance and grow the Opto product We have already been We have already been working closely with Okta while we're waiting for regulatory approval and have collaborated on a number successful capital markets mandates, validating the rationale and fit with STONEX StoneX. In early December twenty twenty four, we received approval from the Central Bank of Ireland as a virtual asset service provider. Allowing us to operate a digital asset business in Europe. As one of the first such approved entities, this will allow us to provide execution and custody services for digital assets, which will be integrated into our suite of prime brokerage services, complementing our existing capabilities and equities ETFs, futures and treasuries.

As I mentioned in the last call, during 2024, we saw The U. S. Prime business grow by about 30% as we were able to internalize capabilities and spreads from either existing business lines. Some of this growth was fueled by growth in the ETF space. Where we offer a unique custody and execution solution for the new wave of alternative ETF being launched.

Strong momentum continued into Q1 with record revenues for that business. Early in the quarter, we completed our acquisition of JBR Recovery, a silver recycling in The UK, one of only two companies accredited by the London bullion market for good delivery silver to the London bullion markets. Giving us a reliable access to metal while internalizing the refining margin and facilitating responsible reuse and recycling of secondary or waste materials. We are also launching our own CME approved vault in New York, will allow our clients to deliver and receive physical gold in settlements of derivative contracts as well as allow us to hold precious metals for our end clients. We believe that this should be approved by the CME in Q2. The last June or so have seen growing earnings momentum for our business despite declining volatilities over that period and more recently declining interest rates. We remain very optimistic about our trajectory and our ability to sustain it for the medium to long term. Our diversified businesses have to offset some of the market headwinds and we have an enormous addressable market in front of us. While it is difficult to be precise, we believe that we have single digit market share in certain niche markets where we have traditionally focused.

But in the broader financial markets where we now compete, our market share barely rises to a single percentage point. We believe that our growth strategy is underpinned by the following: obstructive market dynamics driven by regulation that will enable us to capture market share from larger banks. Leveraging our geographic footprint to expand into market where we are underrepresented. Adding new products and services to our ecosystem, the white space, to create new revenue streams.

Cross selling our existing ecosystem of products and services to our growing client base. And scaling our self directed offering to broaden our addressable market and overcoming the limitations of a high touch approach and geographic reach. [indiscernible] We decided based on the feedback received it might be informative for us to focus on one of our businesses each quarter and to give you perhaps a deeper dive into what we're doing at STOMEX. So we'll start that this quarter and Philip will be kicking us off with payments. Over to you.

Thank you, Sean, and good morning to all listening in. As Sean mentioned, I'll be providing a deeper dive into our payments business, which a business near and dear to my heart. That is where I began my career thirty years ago [indiscernible] Firstly, a high level overview on Slide 13. This business started out as a specialized foreign exchange trading firm, where we sought to help clients obtain better not well served by larger banks. This ended up becoming a payments capability facilitating clients who looking to get local currency into a local bank account efficiently and effectively. Sonix has over the last twenty years developed what we believe to be the largest correspondent banking network of any non bank financial institution the world. Which allows us to seamlessly deliver local currency into local bank accounts in over 180 countries. We have successfully disrupted the traditional payments channels which were highly inefficient and opaque throughout the non G20 markets.

We believe StoneX Payments is the premier gateway to the global payments ecosystem facilitating seamless cross border transactions across a vast array of currencies, Engineered as a world class API driven solution, it combines advanced automation with superior execution capabilities and transparency, ensuring efficiency, security and reliable payment processing for enterprises worldwide. As you can see from the slide, we provide access to 140 currencies in over 180 current countries, which is effectively every country except those that are sanctioned. This service is provided to over 2,000 active clients. We achieved this with a network of over three eighty five correspondent banks in country and over 400 staff located around the world. Turning to Slide 14, This helps explain who we serve. With our clients split between four segments: international development organizations, financial institutions, [indiscernible] and educational institutions. So starting with international development organizations, this is made up of charitable nonprofits NGOs and super national agencies, all of whom are sending funds around the world funding their global field operations or directly paying vendors and supplier invoices. In the last quarter, this segment represented approximately 40% of the revenue generated. Financial institutions These are the 80 plus global commercial banks central banks, credit unions, as well as regional and community banks who use the payments capability of StoneX to satisfy the demands of their banking and commercial client base worldwide.

This segment now also includes six non bank financial institutions who offer StoneX payment services to their underlying corporate clients. And in the last quarter, this segment represented approximately 55% of the revenue generated. Corporates and universities, I put together being the two smallest segments, the areas we are actively expanding into. With over 20,000 commercial clients within the overall StoneX Group, We are leveraging that client base to cross sell our payments capability. We've also spent the last few quarters enhancing our client facing platform and hiring specialist teams to launch the payments capability of Sonix, to universities, and colleges globally. Where we believe there is a meaningful opportunity to add value as a true last mile payment provider. From an organic growth perspective, we're proud to report that the last four quarters, Stonex added 134 StoneX clients, seven banks and financial institutions, 39 corporates and universities. And we see a robust pipeline growing well into our new fiscal year Among the recent additions to our client base you will find esteemed organizations such as NatWest Bank, MUFG, [indiscernible] We also continue to expand our correspondent banking network, of over three eighty five banks, which enables us navigate market conditions [indiscernible] without the risk of concentration or revenue dependence, on any specific payment corridors, By region, in the last four quarters, we added nine new correspondent bank 11 in EMEA and nine The Americas, We believe that our brand our balance sheet, our formidable track record as a provider to some of the world's largest institutions and our expertise in connecting to high and low value clearing systems around the world allows us to dynamically manage our infrastructure and add or replace endpoints with great efficiency to meet our client demands.

Moving to Slide 15, this sets out our annual financial performance for the Payment segment since 2019. It is worth reminding our investors that over the last twenty years, we have seen a consistent double digit year on year revenue growth in this product line with 2024 seeing the first year on year decline albeit by 1%. The first financial quarter is historically historically a strong quarter for us due to the calendar year end seasonality of funding from our IDEO client base.

And large corporate flows that come through our FI clients.

This is reflected in the Q1 twenty twenty five revenue of $58,100,000 which represents our second strongest quarter the history of this business.

It is a 20% increase in operating revenue on the immediately preceding quarter and a 4% decrease year on year in itself was an all time record quarter, albeit in an outlier period of volatility an emerging market dislocation that has normalized in '20 We saw a 12% increase in average daily volume year on year to $84,000,000 an increase of nearly 100% from 2020. And whilst our revenue per million contracted by approximately 17% year on year, the underlying revenue [indiscernible] by a 15% year on year growth our transaction volumes This growth was driven consistently across both our international development organizations [indiscernible] We believe the overall U. S. Dollar strength particularly in the November and December months, also drove more demand we've seen previously in the customary seasonality. Of these segments. Of the 140 currencies we provide to our clients, we saw healthy geographical diversification across our top corridors. Noteworthy demand in key Central Asian Sub Saharan African and Latin American markets.

Whilst we do expect subsequent quarters to normalize in terms of volume, We have seen a strong start to the calendar year in January with several new clients working towards their first transactions Moving to Slide 16, we can highlight some of the current strategic initiatives for the payments business. We start with building our ecosystem. The payments technology journey which began in earnest in 2022 when we embarked on a significant overhaul. And an in house rebuild of our entire front to back STONEX StoneX technology stack. This included client facing platforms, trading and risk management modules [indiscernible] core payments engine built from scratch patent pending, This large increase in payment processing capacity will take us from millions of payments per year to millions of payments per month.

This has allowed us to eliminate vendor dependencies and service our clients from an in house platform that is optimized for the future of payments rather than beholden to the off the shelf limitations. Of the past. With this significant increase in the payment capacity, The note of the CERLOQ system, our investment in technology is also extended to include machine learning to enhance data validation which improves efficiency, and driving delivery speeds whilst also reducing errors in payment settlement data. Moving on on to growing and diversifying our client base.

Whilst we have long focused on the value of providing world class FX payout solutions and infrastructure, we're now actively facilitating FH's repatriations and pay ins as demanded by our growing client base. In Brazil, which is one of our largest payment corridors and where we possess FX banking license. Our clients benefit from the ability to seamlessly process both pay ins and payouts local currency at scale. As an example of this capability, we recently completed an integration with Amazon to be their cross border payment provider for sellers in Brazil. We were also recently granted a similar license in Colombia where we launched our services in mid-twenty twenty four and have already onboarded over 200 clients locally.

We believe that our legacy expertise Global FX Liquidity Management, Treasury and Cross Border Money Movement, presents a compelling case for expanding aggressively into bidirectional omnichannel payment processing. Particularly in the emerging markets we specialize in. We intend to continue to execute on this strategy exploring both organic and inorganic options to attain new capacities and market share. Moving on to digitizing our business. We often find that whilst the top tier bank and FIs have scope and budget for sophisticated product development, and integrations with our market leading APIs. There are tiers of institutions that do not possess their own front end applications for cross border payments. Or streamlined workflows in all 140 currencies that we can offer. To further penetrate this market, we have launched a low touch plug and play white label instance of our web based Connect payments platform, which will allow Tier two and Tier three financial institutions to easily integrate with us and supplement their existing online banking functionality with competitive cross border payments in 140 currencies. In a similar vein, we have launched a partnership with Fiserv, who is a leading provider of core banking technology solutions to hundreds of banking institutions In conjunction with Fiserv's payment exchange APIs, community banks, credit unions and other bank users of the system will have the opportunity to directly leverage Stonex's StoneX institutional grade infrastructure resulting in improved global reach, ultra competitive pricing for their clients and robust transparency in their cross border payment lifecycles.

These opportunities represent hundreds of new clients that will not have to deal with the inconvenience of new integrations to launch enhanced services for their underlying clients.

In summary, having achieved the second best financial performance for a quarter, on record in Q1, with our strategic focus and investments to target the areas I've just covered, such as increasing our payment processing capability more than tenfold and extensive investment in technology. You add all these initiatives with client onboarding currently at an all time high with the enormous total addressable market in terms of opportunity ahead of us, And I strongly believe that Stonex is well positioned to see significant growth in this business line For many, many more years to come. Thank you, Sean.

Thanks, Philip. And maybe next quarter, we will hear from Charles and he can cover some of the exciting things that he's working on in the charities area. Let's move on to the final slide, number 17. This was another record quarter for us with broad based strength across most of our products and segments. We achieved cheap earnings of $85,100,000 a diluted EPS of $2.54 and an ROE on stated book of 19.5%.

Our earnings and EPS were up 2319% respectively.

Looking ahead, we continue to be well positioned to capitalize on the ongoing industry transformation driven by regulatory changes and market consolidation. These shifts not only create significant opportunities for Stonex to expand market share, but also provide a substantial runway for growth. Our ecosystem underpinned by broad and diverse offerings enables us to deliver innovative solutions that simplify client operations expand their market reach and create long term value.

Central to our strategy is the disciplined use of capital supported by Fortress balance sheet.

Over the past decade, we have tripled shareholder funds, acquired more than 15 businesses, expanded our client footprint primarily financed organically through retained earnings and the remarkable power of compound We anticipate our recent acquisitions combined with selective access to capital markets continue to drive meaningful growth and further strengthen our position in the market. The evolving regulatory landscape, shifting market dynamics, and our increasingly recognized ecosystem along with the prospect of improved market volatility, despite declining interest rates still provided As we continue to move forward, we remain committed to expanding the client base in both new and existing markets. While deepening client relation existing client relationships effective cross selling strategies. The thing that will always be constant for the StoneX team is to dedicate ourselves to better serve our growing client footprint around the world by providing them with the best financial ecosystem and client services to access the global financial markets, We're all extremely proud of the talented team who continue to propel us to new and record heights. So with that, operator, let's open the line and see if we have any questions.

Thank you. First question comes from the line of Dan Fannon from Jefferies. Your line is open.

Thanks. Good morning, gentlemen. Good morning. I appreciate the additional color this quarter. I guess the start just looking at the results, the physical contracts continued had a record quarter. Could you talk about what drove that revenue? And I guess maybe the sustainability of that result? Bill, do you want to handle that? [indiscernible] I am on mute. My apologies, Sean. Thank you. Dan, the key drivers there was kind of threefold this quarter. It was a combination of precious metals, which had saw a fair amount of volatility around proposed tariffs that might might occur In the first quarter of twenty twenty five fiscal for us. As well as just really good client activity. So strong activity there. And then in addition, the acquisition of CDI two years ago continues to grow They've expanded into coffee as well a bit. But really, they did quite a bit of new business into the first quarter. So really nice strong performance there. And then finally, as you've seen the cocoa prices have been quite volatile. Here over the last probably twelve months, which is led to a lot of client activity, and that business has really grown for us. Us.

As far as sustainability, there's a lot of continued noise around tariffs in the precious metal state. So it's sort of be interesting how that plays out. It could be volatile due to the upside or downside for us. So that remains to be seen, but I think that [indiscernible] The cocoa business, it seems like volatile is staying around there. And the cotton business, it's a really nice acquisition we did that continues to, I would say, probably outperform what we originally expected of it.

Okay, great. That's helpful. And then the retail business, I feel like it's a kind of a broken record where quarter you continue to have really good results. The fee per meter or the RPM, I think that might be a record, but can you talk to you've done a lot of things on the back end with technology, you're broadening beyond just FX, I think into this asset class or this [indiscernible] So again, sustainability of some of the results that you're putting up, is this how would you characterize this quarter versus the outlook as we look out for this fiscal rest of this fiscal year? Well, I would say the driver you alluded to there, the revenue capture is honestly excellent, I mean and much improved. And I think what we've seen over probably six or eight quarters is a steady sort of improvement in our revenue capture in that business. And I think there's a lot of technology, a lot of expertise that's gone into that. And I would say, we probably close to being at the high watermark. I mean, we just can't keep squeezing more and more juice out of the orange. So So that may fluctuate a little bit and hopefully the sort of with a slow upward bias, I would say, But we are really growing out the product suite there.

I think I sort of highlighted that in in the last call. And I think we see our self directed business becoming broader based business. And if we can keep that sort of revenue capture where it is, but expand into other products and other asset classes, that's where we're really going to see meaningful growth. Charles, I don't know if you have any comments on the sort of revenue catch or anything you'd like to add? I do. I mean, Dan, we've had a consistent focus on trying to stabilize and have consistency around those results. I think we've made improvements around some of the back end and not so much technology side, but just around way that we think of how we operate in the space. But the mindset is to be able to produce consistent results And to Sean's point, the future growth is going to be around how do we expand very thoughtfully consistently the products that we offer and move into other spaces and continue to move into securities and other more mainstream spaces, and add clients. So I think Sean said it right that we've put a lot of effort towards stabilizing that CTR and a capture.

Now it's going to come from new clients, new products.

Great. That's helpful. And then maybe one for Philip on the payment side. Understand context of the growth new customers, but can you talk just about the the rates coming down year over year and quarter? The mix that you're seeing of transactions today vis a vis previous periods and how we should be thinking about that going forward versus what we've seen? Is that a downward trend or is consistently given the mix of business and how your outlook is?

Sure. I think the way to think about it is We have diversity of payment corridors that we want to maintain as as diverse a business, as diverse a revenue stream as possible. But there will always be moments and periods where dollar scarcity in certain payment corridors widens the spread. And whilst the volume has been not necessarily increased, the profit per transaction increases significantly. We have no control over that. These are specific to countries, specific to regional disparities between central banks' directives and some commercial banks' follow through we struggle to predict and we would not want to be predicting such events reoccurring, but it does go through a cycle where certain corridors the dollar scarcity will happen on a regular basis, but you can't predict that regularity. I think the key thing is to ensure that we are maintaining an increase in volume. Because that's what we can control. We can't control the spread and we can't control the dollar scarcity in specific regions or countries. But what we can do is just constantly be building out our capabilities, building out of increased client base, diversifying the client base itself and trying to ensure that we're not in any way overexposed or over concentrated in any particular corridor any particular region where that widening of spread every certain period of time isn't distorting our numbers, our figures too greatly.

So that's our objective.

We're very happy when there's a dollar scarcity, We have no ability to build a business around that. All we can do is maintain increased volumes and that's providing a better service to our clients and providing access for more clients to utilize our ecosystem. So that's that's basically our objective and increasing our client base, increasing the volume that comes through our channels is what we control and what we're driving.

If that helps.

That's helpful. All right. Thanks for taking my questions.

Thank you. And I'm not showing any further questions at this time. I would now like to turn the call back to Sean O'Connor for any closing remarks.

Okay. Thanks, operator. Thanks, everyone, for joining us. Hopefully, you like the new format. If not, let us know. And hopefully, you enjoyed getting to know Charles and Philip.

So with that, let's close the call down and look forward to seeing you in three months' time Thanks, everyone. Thank you for your participation in today's conference. This does conclude the program. Everyone, have a great day.