Financial Data and Key Metrics Changes - In Q4 2025, the company achieved a record adjusted pre-tax income of over $1 billion for the fifth consecutive quarter, with full-year net revenues exceeding $6 billion for the first time [7][15] - Client equity rose 37% to $780 billion, marking an increase of over $200 billion year-over-year [4] - Commission revenues reached a record $582 million for the quarter and $2.1 billion for the full year, up 27% from the previous year [15] - Net interest income for the quarter was $966 million, with a yearly record of $3.6 billion, despite multiple rate cuts [15][22] Business Line Data and Key Metrics Changes - Trading volumes in options increased by 27% year-over-year, while futures contract volumes rose by 22% for the quarter [20] - Stock share volumes increased by 16% for the quarter and 38% for the full year, driven by client preference for larger, higher-quality stocks [21] - Total customer DARTs were 4 million trades per day in the quarter, up 30% from the prior year [21] Market Data and Key Metrics Changes - The company saw strong international interest in global securities markets, with clients expanding beyond equities into options and futures [3][4] - Trading volume during overnight hours grew rapidly, up 76% from the previous quarter and more than 130% from the fourth quarter of the previous year [12] Company Strategy and Development Direction - The company continues to focus on automating its brokerage business while expanding its offerings and minimizing costs [27] - New market access was expanded to Brazil, Taiwan, the UAE, and Slovenia, with additional countries planned for 2026 [7][8] - The introduction of AI-powered tools and features aims to enhance client engagement and streamline the research process [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued account growth, citing the attractiveness of the platform and global access [56] - The company is optimistic about the potential of prediction markets, despite regulatory uncertainties surrounding sports contracts [40][41] - Management indicated that they expect to be operational with a bank charter by the end of the year, which would allow custody of mutual fund and ETF assets [33][47] Other Important Information - The company doubled the amount of cash eligible for its FDIC sweep program, enhancing client funding options [8] - The launch of the Carta Visa Infinite Card provides clients with instant access to cash globally, with no foreign transaction fees [9] Q&A Session Summary Question: Customer credit balances and yield dynamics - Management explained that net interest income operates differently across segments, with a repricing lag affecting yields [31] Question: Update on bank charter application - Management confirmed ongoing communication with the OCC and expects to be operational by the end of the year [33] Question: Prediction markets and regulatory environment - Management noted recent rulings against competitors but remains optimistic about the applicability of prediction markets beyond sports [40] Question: M&A appetite and capital return priorities - Management stated they are not currently looking for acquisitions in the sports betting space but are focused on growing their own platform, ForecastX [42] Question: European banking license aspirations - Management indicated that while they have not started the process, they plan to eventually acquire a banking license in Europe, likely in Ireland [47] Question: Institutional adoption of prediction markets - Management highlighted ongoing work to tie temperature contracts with electricity and natural gas contracts, indicating a focus on utility needs [49] Question: Adoption of crypto offerings - Management noted that while crypto revenues are currently small, they are competitive and expanding, particularly in Europe [52] Question: Future expense growth and investment - Management expects consistent expense growth, with a focus on AI initiatives potentially affecting future rates [58]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved a record adjusted pre-tax income of over $1 billion for the fifth consecutive quarter, with full-year net revenues exceeding $6 billion for the first time [6][15] - Client equity rose 37% to $780 billion, marking an increase of over $200 billion year-over-year [4] - Commission revenues reached a record $582 million for the quarter and $2.1 billion for the full year, up 27% from the previous year [15] - Net interest income for the quarter was $966 million, with a yearly record of $3.6 billion, despite multiple rate cuts [15][22] Business Line Data and Key Metrics Changes - Trading volumes in options increased by 27% year-over-year, while futures contract volumes rose by 22% for the quarter [20] - Stock share volumes increased by 16% for the quarter and 38% for the full year, driven by client preference for larger, higher-quality stocks [21] - The average commission per cleared commissionable order was $2.64, down from the previous year due to smaller average order sizes [21] Market Data and Key Metrics Changes - The company expanded market access to Brazil, Taiwan, the UAE, and Slovenia, with plans for additional countries in 2026 [7] - Trading volume during overnight hours grew rapidly, up 76% from the previous quarter and over 130% from the fourth quarter of the previous year [12] Company Strategy and Development Direction - The company continues to focus on automating its brokerage business while improving and expanding its offerings at competitive prices [26] - The introduction of AI-powered tools and features aims to enhance client engagement and streamline the research process [10][11] - The company is exploring opportunities in prediction markets and has launched ForecastX, which lists over 10,000 instruments [13][36] Management's Comments on Operating Environment and Future Outlook - Management noted strong global demand for investing, with clients increasingly comfortable taking on risk and expanding their market exposure [3][4] - The company expects to maintain its account growth momentum, driven by its attractive platform and global access [39] - Management expressed confidence in the continued effectiveness of their business strategy and the potential for future growth [26] Other Important Information - The company doubled the amount of cash eligible for its FDIC Suite program, enhancing client funding options [8] - The launch of the Carta Visa Infinite Card allows clients to access cash instantly worldwide without foreign transaction fees [9] Q&A Session Summary Question: Inquiry about customer credit balances and yield dynamics - Management explained that net interest income from segregated cash and margin loans operates differently, with a repricing lag affecting yields [27][29] Question: Update on bank charter application process - Management provided insights into the ongoing communication with the OCC and the expectation to be operational by the end of the year if approved [30] Question: Update on prediction markets and regulatory landscape - Management discussed the recent ruling against Kalshi and emphasized that Interactive Brokers does not rely on sports for prediction markets [32] Question: Aspirations for a European banking license - Management indicated that while they have not started the process, they plan to acquire a banking license in Europe eventually, likely in Ireland [34] Question: Institutional adoption of prediction markets - Management noted that the focus is on selling the product rather than redesigning it, with ongoing efforts to onboard institutional clients [42]