Core Viewpoint - Interactive Brokers Group, Inc. reported strong earnings for the fourth quarter, exceeding analyst expectations in both earnings per share and revenue [1]. Financial Performance - The company posted quarterly earnings of 65 cents per share, surpassing the consensus estimate of 59 cents [1]. - Quarterly revenue reached $1.64 billion, exceeding the analyst consensus estimate of $1.61 billion and increasing from $1.39 billion in the same period last year [1]. Stock Performance - Following the earnings announcement, Interactive Brokers shares increased by 5.2%, trading at $75.20 [1]. Analyst Ratings and Price Targets - BMO Capital analyst Brennan Hawken maintained an Outperform rating and raised the price target from $80 to $82 [3]. - Barclays analyst Benjamin Budish maintained an Overweight rating and increased the price target from $82 to $83 [3].

Core Insights - Interactive Brokers Group, Inc. reported strong earnings for the fourth quarter, with earnings of 65 cents per share, surpassing the consensus estimate of 59 cents [1] - The company's quarterly revenue reached $1.64 billion, exceeding the analyst consensus estimate of $1.61 billion and showing an increase from $1.39 billion in the same period last year [1] - Following the earnings announcement, Interactive Brokers shares rose by 5.2%, trading at $75.20 [1] Analyst Ratings and Price Targets - BMO Capital analyst Brennan Hawken maintained an Outperform rating on Interactive Brokers and raised the price target from $80 to $82 [3] - Barclays analyst Benjamin Budish also maintained an Overweight rating and increased the price target from $82 to $83 [3]

Core Insights - Interactive Brokers Group, Inc. (IBKR) is a significant player in the financial services sector, offering automated global electronic brokerage services for trading various financial instruments [1] Financial Performance - On January 20, 2026, IBKR reported earnings per share (EPS) of $0.65, exceeding the estimated $0.59, indicating strong financial performance [2][6] - The company's revenue reached approximately $1.64 billion, slightly above the forecast, showcasing consistent financial growth [2][6] - Despite the positive earnings report, IBKR's stock price declined during extended trading, possibly due to market dynamics or investor sentiment [3] Customer Metrics - Key metrics from the fourth quarter show a 32% increase in customer accounts, reaching 4.4 million, reflecting a growing customer base [4] - Customer equity rose by 37% to $779.9 billion, indicating increased investor confidence [4] Revenue Growth - Commission revenue grew by 22% to $582 million, driven by higher customer trading volumes [4] Financial Ratios - IBKR maintains a price-to-earnings (P/E) ratio of approximately 34.63, reflecting investor confidence in its earnings potential [5] - The company has a low debt-to-equity ratio of 0.18, indicating a conservative approach to debt [5] - A current ratio of 1.15 suggests adequate liquidity to cover short-term liabilities, highlighting strong financial health [5]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Key Takeaways Markets Sold Off on a Switch to "Risk Off" SentimentPresident Trump Addresses the World Economic Forum in Davos WednesdayNetflix Beats but Guides Lower in Q4, Considers WBD PurchaseUnited Airlines and Interactive Brokers Also Report Q4 BeatsTuesday, January 20th, 2026Major market indexes began the initial trading session of this holiday-shortened week today in negative territory, and slid lower from there. Off session lows by a whisker, the Dow shed -870 points, -1.76%, while the S&P 500 lost ...

Core Insights - Interactive Brokers (IBKR.US) reported better-than-expected earnings for Q4 2025, driven by strong customer trading volume and interest income, showcasing operational resilience in a volatile market environment [1][2] Financial Performance - Total net revenue reached $1.64 billion, in line with market consensus, and up from $1.61 billion in the previous quarter and $1.39 billion year-over-year [1] - Adjusted earnings per share (EPS) were $0.65, exceeding the market expectation of $0.59, and significantly higher than $0.57 in Q3 and $0.35 in the same quarter last year [1] Operational Metrics - Daily Average Revenue Trades (DARTs) increased by 30% year-over-year to 4.04 million, also higher than 3.62 million in Q3 [2] - Commission income rose by 22% to $582 million, driven by increased customer trading volume, with options, futures, and stock trading volumes growing by 27%, 22%, and 16% respectively [2] - Net interest income remained stable at $966 million, nearly unchanged from Q3 ($967 million) and significantly up from $807 million year-over-year [2] Customer Growth - Total customer accounts grew to 4.4 million, up from 4.13 million in the previous quarter and 3.34 million year-over-year [2] Cost Management - Execution, clearing, and distribution expenses for Q4 were $91 million, a 21% decrease year-over-year and slightly lower than the previous quarter [3] Strategic Initiatives - The company is expanding its cryptocurrency and prediction market product offerings, recently allowing customers to fund their brokerage accounts using USDC stablecoin, enhancing transaction speed and flexibility [3] - As of the beginning of December, customer accounts reached 4.399 million, a 32% year-over-year increase, with daily average revenue trades at 3.384 million, up 4% year-over-year but down 21% from November [3]

Core Insights - The company emphasizes a client-centric approach, resulting in superior client performance compared to market benchmarks, with individual investors up 19.2% and hedge fund clients up 28.91% in 2025 [2][4] - The company achieved record financial results, with quarterly adjusted pretax income exceeding $1 billion for five consecutive quarters and annual net revenues surpassing $6 billion for the first time [6][16] - The company continues to innovate and expand its platform offerings, including new products and enhancements, while maintaining a strong focus on cost efficiency and client engagement [7][12] Financial Performance - Quarterly commission revenues reached a record $582 million, with full-year commissions totaling $2.1 billion, a 27% increase from the previous year [16] - Net interest income for the quarter was $966 million, with a yearly record of $3.6 billion, despite lower interest rates [16][28] - The company reported a pretax margin of 79% for the quarter and a record 77% for the year, reflecting strong operational efficiency [23] Client Engagement and Growth - The company added over 1 million net new accounts in 2025, marking an annual record, with client equity rising 37% to $780 billion [4][6] - Clients are increasingly engaging in diverse asset classes, including options and futures, and are utilizing margin loans to enhance their market exposure [3][4] - Trading volume during overnight hours grew 76% from the previous quarter, indicating a strong demand for global trading capabilities [14] Platform Enhancements - The company launched the Global Trader 2.0 mobile platform with significant UI/UX improvements and new trading tools [9] - AI technology has been integrated across the platform, providing clients with AI-powered investment themes and news summaries to enhance their research capabilities [12] - New funding options, including the ability to fund accounts using Stablecoin, have been introduced to facilitate cross-border transactions [8] Market Expansion - The company expanded market access to several countries, including Brazil, Taiwan, and the UAE, with plans for further expansion in 2026 [7] - The introduction of country-specific tax-advantaged funds has attracted significant client assets, enhancing the company's appeal to individual investors [7] Operational Efficiency - Execution, clearing, and distribution costs decreased by 21% year-over-year, contributing to improved profitability [20] - The company maintains a strong balance sheet with total assets increasing by 35% to $23 billion, driven by higher margin lending and customer credit balances [24] - Compensation and benefits expenses were managed effectively, with a ratio of compensation expense to adjusted net revenues decreasing to 9% [22]

The company also highlighted client performance as a key outcome of its pricing and execution approach. It said that in 2025, while the S&P 500 rose 17.9%, Interactive Brokers customers outperformed on average: individual investors were up 19.2%, financial advisors 20.57%, and hedge fund clients 28.91%, according to the company’s figures shared on the call.Management attributed engagement to both structural and cyclical drivers, including international interest in global securities markets, rising markets, ...

Interactive Brokers reported fourth-quarter earnings that handily beat Wall Street's estimates. The results benefited from a buoyant stock market and a surge in investor trading. ...

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved a record adjusted pre-tax income of over $1 billion for the fifth consecutive quarter, with full-year net revenues exceeding $6 billion for the first time [7][15] - Client equity rose 37% to $780 billion, marking an increase of over $200 billion year-over-year [4] - Commission revenues reached a record $582 million for the quarter and $2.1 billion for the full year, up 27% from the previous year [15] - Net interest income for the quarter was $966 million, with a yearly record of $3.6 billion, despite multiple rate cuts [15][22] Business Line Data and Key Metrics Changes - Trading volumes in options increased by 27% year-over-year, while futures contract volumes rose by 22% for the quarter [20] - Stock share volumes increased by 16% for the quarter and 38% for the full year, driven by client preference for larger, higher-quality stocks [21] - Total customer DARTs were 4 million trades per day in the quarter, up 30% from the prior year [21] Market Data and Key Metrics Changes - The company saw strong international interest in global securities markets, with clients expanding beyond equities into options and futures [3][4] - Trading volume during overnight hours grew rapidly, up 76% from the previous quarter and more than 130% from the fourth quarter of the previous year [12] Company Strategy and Development Direction - The company continues to focus on automating its brokerage business while expanding its offerings and minimizing costs [27] - New market access was expanded to Brazil, Taiwan, the UAE, and Slovenia, with additional countries planned for 2026 [7][8] - The introduction of AI-powered tools and features aims to enhance client engagement and streamline the research process [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued account growth, citing the attractiveness of the platform and global access [56] - The company is optimistic about the potential of prediction markets, despite regulatory uncertainties surrounding sports contracts [40][41] - Management indicated that they expect to be operational with a bank charter by the end of the year, which would allow custody of mutual fund and ETF assets [33][47] Other Important Information - The company doubled the amount of cash eligible for its FDIC sweep program, enhancing client funding options [8] - The launch of the Carta Visa Infinite Card provides clients with instant access to cash globally, with no foreign transaction fees [9] Q&A Session Summary Question: Customer credit balances and yield dynamics - Management explained that net interest income operates differently across segments, with a repricing lag affecting yields [31] Question: Update on bank charter application - Management confirmed ongoing communication with the OCC and expects to be operational by the end of the year [33] Question: Prediction markets and regulatory environment - Management noted recent rulings against competitors but remains optimistic about the applicability of prediction markets beyond sports [40] Question: M&A appetite and capital return priorities - Management stated they are not currently looking for acquisitions in the sports betting space but are focused on growing their own platform, ForecastX [42] Question: European banking license aspirations - Management indicated that while they have not started the process, they plan to eventually acquire a banking license in Europe, likely in Ireland [47] Question: Institutional adoption of prediction markets - Management highlighted ongoing work to tie temperature contracts with electricity and natural gas contracts, indicating a focus on utility needs [49] Question: Adoption of crypto offerings - Management noted that while crypto revenues are currently small, they are competitive and expanding, particularly in Europe [52] Question: Future expense growth and investment - Management expects consistent expense growth, with a focus on AI initiatives potentially affecting future rates [58]