Core Thesis - A bullish thesis on Interactive Brokers Group, Inc. (IBKR) emphasizes the company's strong financial performance and growth potential, particularly in the context of recent market developments [1][6]. Financial Performance - IBKR reported a record third quarter with adjusted net revenue of $1.61 billion, reflecting a 9% sequential increase and a 21% year-over-year growth, primarily driven by a 12% increase in net interest income (NII) to $967 million and a 4% rise in commission revenue to $537 million [2]. - Adjusted EPS increased by 12% quarter-over-quarter and 30% year-over-year to $0.57, surpassing consensus estimates by approximately 5% [3]. - Total operating expenses decreased by 9% sequentially to $343 million, resulting in pre-tax margins of 78.7% [2]. Client Metrics - Client accounts grew by 7% quarter-over-quarter and 32% year-over-year, while customer equity rose 14% sequentially to $758 billion [3]. - Average interest-earning assets increased by 10% quarter-over-quarter, and total daily average revenue trades (DARTs) grew by 2% sequentially and 34% year-over-year [3]. Revenue Drivers - Management noted strong performance in securities lending due to increased IPO and M&A activity, although a potential 1% drop in benchmark rates could reduce annual NII by approximately $417 million [4]. - Growth in newer products such as crypto trading, forecast contracts, and overnight trading saw significant increases in volumes of 87%, 165%, and 90% year-over-year, respectively [4]. Strategic Initiatives - IBKR maintains a 30% stake in Zero Hash and is advancing its capabilities in stablecoin funding and crypto staking [5]. - Despite regulatory challenges in China, the company continues to experience resilient account growth, highlighting its strong operating leverage and diversified revenue sources [5].