IBG, Inc.(US:IBKR)2025-07-17 20:01Financial Performance - GAAP diluted EPS for Q2 2025 was $0.51, compared to $0.41 in the year-ago quarter, representing a 24% increase [2] - GAAP net revenues for Q2 2025 were $1,480 million, up 20% from $1,230 million in the year-ago quarter [2] - Adjusted net revenues for the three months ended June 30, 2025, were $1,480 million, compared to $1,230 million in 2024, reflecting a significant increase [28] - Adjusted diluted EPS for the three months ended June 30, 2025, was $0.51, up from $0.41 in 2024 [30] - Other comprehensive income increased by $79 million, contributing to a comprehensive income available for common stockholders of $303 million for the quarter [16] Revenue Sources - Commission revenue increased 27% to $516 million due to higher customer trading volumes, with trading volumes in stocks, options, and futures rising by 31%, 24%, and 18%, respectively [6] - Net interest income rose 9% to $860 million, benefiting from higher average customer credit balances and securities lending activity [6] - Net interest income for the three months ended June 30, 2025, was $861 million, up from $805 million in the same period of 2024 [27] - The net interest margin (NIM) for the three months ended June 30, 2025, was 2.07%, down from 2.42% in 2024 [27] Customer Growth - Customer accounts grew by 32% to 3.87 million, while customer equity increased by 34% to $664.6 billion [11] - Total customer accounts increased by 32% year-over-year to 3,866,000 in 2Q2025 from 2,924,000 in 2Q2024 [24] - Customer equity rose by 34% year-over-year to $664.6 billion in 2Q2025 from $497.2 billion in 2Q2024 [24] Trading Activity - Total daily average revenue trades (DARTs) increased by 49% to 3.55 million [11] - Total customer Daily Average Revenue Trades (DARTs) increased by 49% year-over-year to 3,552,000 in 2Q2025 from 2,386,000 in 2Q2024 [24] Assets and Equity - Total assets as of June 30, 2025, were $181.475 billion, up from $150.142 billion at the end of 2024 [17] - Total equity reached $18.518 billion, an increase from $16.597 billion at the end of 2024 [17] Dividends - The company declared a quarterly cash dividend of $0.08 per share, payable on September 12, 2025 [4] Adjustments and Non-GAAP Measures - Management emphasizes the importance of non-GAAP measures for evaluating financial performance, excluding items not indicative of core operating results [33] - Adjusted net revenues are defined as net revenues adjusted for currency diversification strategy and net mark-to-market gains (losses) on investments [36] - Adjusted income before income taxes excludes the effects of currency diversification strategy and net mark-to-market gains (losses) on investments [36] - Adjusted net income available to common stockholders is calculated after removing the after-tax effects of currency diversification strategy and net mark-to-market gains (losses) [36] - Adjusted diluted EPS is derived from adjusted net income available to common stockholders divided by the diluted weighted average number of shares outstanding [36] Market Activity - Total executed order volumes decreased by 8% year-over-year to 512,727,000 in 2023 from 559,030,000 in 2022, but are projected to increase by 41% to 725,014,000 in 2024 [19] - Options contract volumes increased by 12% year-over-year to 1,020,736 in 2023 from 908,415 in 2022 [20] - The company reported a 15% increase in principal transactions for options in 2023, totaling 39,564 contracts compared to 34,501 in 2022 [22] Stock Split - Prior period share and per share amounts have been retroactively adjusted for a four-for-one forward stock split effective June 17, 2025 [35] Mark-to-Market Accounting - Mark-to-market on investments includes net gains (losses) on equity securities not qualifying for equity method accounting, measured at fair value [34]