Should You Invest in IBKR Now as DART Numbers Continue to Grow?

Core Insights - Interactive Brokers Group, Inc. (IBKR) has experienced significant growth due to increased market volatility and retail investor participation, reflected in its Daily Average Revenue Trades (DARTs) [1][3] DART Performance - In 2025, IBKR reported year-over-year increases in total customer DARTs of 50%, 49%, and 34% for the first three quarters, respectively [2] - In October 2025, total customer DARTs reached 4,472,000, marking a 58.4% increase from October 2024 and a 15.7% increase from September 2025 [2] - Cleared average DARTs per customer account were 229 in October, up 14.5% year-over-year and 12.8% from September 2025 [2] Revenue Growth - IBKR's net revenues increased by 20.1% year-over-year in the first nine months of 2025, supported by strong DART numbers [3][8] - The Zacks Consensus Estimate for IBKR's revenues in 2025 and 2026 is $5.92 billion and $6.24 billion, indicating year-over-year growth of 13.4% and 5.3%, respectively [4] Stock Performance - IBKR shares have gained 51.8% year-to-date, outperforming the S&P 500 Index's 18.3% rise and the industry's 33.9% growth [6] - Compared to peers, Robinhood has surged 226.2%, while Charles Schwab has increased by 28.8% in the same period [6] Product Diversification - IBKR has launched several new products and features, including the Karta Visa card, Connections for trading opportunities, and zero-commission U.S. stock trading in Singapore [10][12] - The company has also introduced NISA accounts for Japanese investors and extended trading hours for Forecast Contracts [11] Technological Excellence - IBKR's technological capabilities allow it to process trades across more than 160 exchanges globally, enhancing its competitive edge [14] - The company has maintained low compensation expenses relative to net revenues, which supports solid growth [16] Capital Management - IBKR has consistently increased its quarterly dividend, with a 150% hike in April 2024 and a 28% increase in April 2025 [17] - The company has a strong liquidity position and uses minimal debt, which supports its ability to sustain dividend payments [18] Earnings Estimates - The Zacks Consensus Estimate for IBKR's 2025 earnings has been revised 5.1% higher to $2.06, with 2026 estimates revised 6.7% upward to $2.22 per share [19] - These estimates indicate year-over-year growth rates of 17.1% for 2025 and 7.8% for 2026 [19] Valuation Analysis - IBKR's stock is trading at a forward 12-month price/sales (P/S) ratio of 18.36X, significantly above the industry average of 4.52X [20] - Compared to peers, Robinhood has a P/S ratio of 21.50X, while Schwab's is at 6.77X, indicating IBKR trades at a premium to Schwab but is relatively inexpensive compared to Robinhood [22] Investment Outlook - Despite a premium valuation, IBKR is well-positioned for growth due to its technological capabilities and diversified product offerings [23] - For conservative investors, caution is advised, while long-term investors may find IBKR an attractive option [24] - IBKR currently holds a Zacks Rank 2 (Buy) [25]