Core Viewpoint - Interactive Brokers remains an attractive growth stock despite a significant rise in its share price over the past year, supported by strong business momentum and a scalable, automated business model [2][3][11]. Company Overview - Interactive Brokers is an online brokerage that allows individuals and institutions to trade across various markets, leveraging extreme automation to maintain a low-cost value proposition [4]. - The company serves clients from over 200 countries and territories, providing access to more than 170 global markets [5]. Financial Performance - In Q3 2025, Interactive Brokers reported revenue of $1.655 billion, a 21% increase from $1.365 billion in the previous year, with earnings per share rising 40% to $0.59 [6]. - Key revenue drivers included commission revenue of $527 million, up from $421 million, and net interest income of $967 million, up from $736 million [6]. Customer Metrics - Customer accounts grew 32% year over year to 4.13 million, while customer equity rose 40% to $357.5 billion [8]. - Daily average revenue trades (DARTs) increased 34% year over year to 3.62 million [8]. - Recent data shows total client accounts at approximately 4.4 million, up 32% year over year, and client equity at $779.9 billion, up 37% year over year [9]. Market Dynamics - DARTs growth slowed to 4% year over year in December, with DARTs at about 3.384 million, but customer account and equity growth remain strong [10]. - The stock has risen about 62% over the past 12 months, with a price-to-earnings ratio of 34 and a forward price-to-earnings ratio of 29, indicating a higher valuation risk [11].
Here's My Top Growth Stock to Buy For 2026 and Beyond