IBG, Inc.(IBKR) - 2025 Q1 - Quarterly Report

Financial Performance - Diluted earnings per share for the current quarter were $1.94, up from$1.61 in the prior-year quarter, representing a 20% increase [257]. - Net revenues for the current quarter reached $1,427 million, a 18.7$1,203 million in the prior-year quarter [258]. - Total net revenues for Q1 2025 increased by $224 million, or 19$1,427 million compared to Q1 2024 [273]. - Adjusted net revenues were $1,396 million, up 15$1,024 million, up 16% compared to the prior-year quarter [309]. - Net income available to common stockholders increased to $213 million from$175 million in the prior-year quarter [307]. - Income before income taxes increased $189 million, or 22$1,055 million, with a pretax profit margin of 74% for the current quarter [308]. - Adjusted net revenues for Q1 2025 were $1,396 million, a 14.8$1,216 million in Q1 2024 [315]. - Adjusted income before income taxes for Q1 2025 was $1,024 million, up 16.5$879 million in Q1 2024 [315]. Revenue Sources - Commission revenue increased by 36% to $514 million, driven by a 47$19 million, or 32%, to $78 million in Q1 2025, driven by higher risk exposure fees and payments for order flow [277]. - Execution, clearing, and distribution fees expenses increased by 20$121 million due to higher trading volumes [260]. - Total customer DARTs for Q1 2025 increased by 50% to 3.5 million, compared to 2.4 million in Q1 2024 [275]. - Total options contracts increased by 25% to 383,998 in Q1 2025 compared to Q1 2024 [265]. Customer Metrics - Customer equity reached $573.5 billion in Q1 2025, a 23$465.9 billion in Q1 2024 [269]. - Total customer accounts reached 3,616 thousand, marking a 32% increase from 2,746 thousand in the prior year [269]. - Average daily volume in U.S. listed cash equities increased by 33% compared to the prior-year quarter [245]. Expenses - Non-interest expenses increased $35 million, or 10$372 million, with execution, clearing, and distribution fees rising by $20 million, or 20$9 million, or 6%, to $154 million, with the average number of employees rising 2$12 million, or 24%, to $62 million, primarily due to an$8 million rise in advertising expenses [302]. - Occupancy, depreciation, and amortization expenses decreased by $2 million, or 8$24 million, maintaining 2% of total net revenues [299]. Interest Income and Margin - Net interest income rose by 3% to $770 million, supported by a 38$1,718 million, while interest expense was $948 million, resulting in net interest income of$770 million, a 3% increase from Q1 2024 [272][280]. - Net interest margin ("NIM") decreased to 2.10% from 2.41% in the prior-year quarter [290]. Assets and Cash Flow - Total assets as of March 31, 2025, were $157.7 billion, with approximately$156.4 billion (99.2%) classified as liquid [316]. - Cash, cash equivalents, and restricted cash increased by $2,440 million to$42.7 billion for the three months ended March 31, 2025 [324]. - Net cash provided by operating activities for Q1 2025 was $2,584 million, significantly higher than$1,683 million in Q1 2024 [324]. - Customer credit balances rose by $5.3 billion, contributing to the net cash from operating activities, despite increases in securities purchased under agreements to resell and investments in regulatory securities [325]. Strategic Initiatives - The company plans to continue making strategic investments and acquisitions to enhance execution alternatives and technology capabilities [334]. - There were no definitive agreements for any material acquisition as of March 31, 2025 [336]. - The company is exposed to off-balance-sheet risks related to futures products, which may require repurchase or sale at prevailing market prices [337].