Why Interactive Brokers Stock Zoomed 45.6% Higher In 2025

Core Insights - Interactive Brokers' shares surged 45.6% in 2025, driven by rapid customer acquisition and increasing revenues and profits [1] - The company boasts one of the highest profit margins globally, with a pre-tax profit margin of 79% [3] Customer Growth and Revenue - As of December, Interactive Brokers had 4.4 million active client accounts, reflecting a 32% year-over-year increase, leading to more deposits and trading activity [2] - Revenue for the third quarter grew 21% year-over-year, reaching $1.655 billion [2] Profit Margins and Market Position - The company's extreme efficiency and strong growth contributed to significant stock gains in 2025, with profit margins outperforming major players like Visa and Mastercard [3] - Despite a premium price-to-earnings (P/E) ratio of 34, the stock is considered reasonably priced given its growth potential [5][6] Future Outlook - Interactive Brokers is expected to continue growing its customer base and earnings over the next decade, which may help lower its P/E ratio [6] - The stock is viewed as not an obvious buy at the moment, despite its growth potential [6][7]