Interactive Brokers Group Announces 1Q2025 Results

Rhea-AI Summary

Interactive Brokers (IBKR) reported strong Q1 2025 results with GAAP diluted EPS of $1.94 and adjusted EPS of $1.88, up from $1.61 and $1.64 respectively year-over-year. Net revenues reached $1,427 million (GAAP) and $1,396 million (adjusted).

Key highlights include a 36% increase in commission revenue to $514 million, driven by higher trading volumes across stocks (47%), options (25%), and futures (16%). Net interest income grew 3% to $770 million. Customer accounts surged 32% to 3.62 million, while customer equity rose 23% to $573.5 billion.

The company announced two significant shareholder initiatives: a dividend increase from $0.25 to $0.32 per share, payable June 13, 2025, and a four-for-one forward stock split effective June 17, 2025, aimed at improving stock accessibility.

Positive

• GAAP EPS increased 20.5% YoY to $1.94
• Commission revenue surged 36% to $514 million
• Customer accounts grew 32% to 3.62 million
• Customer equity increased 23% to $573.5 billion
• Dividend increased 28% from $0.25 to $0.32 per share
• Strong pretax profit margin of 74%
• DARTs increased 50% to 3.52 million

Negative

• Net interest income growth slowed to 3% YoY
• General and administrative expenses increased 24%
• Higher execution costs due to increased SEC fee rate and new FINRA CAT fee

Insights

Financial Analyst

Interactive Brokers delivered impressive Q1 2025 results with $1.94 GAAP EPS (20.5% YoY increase) and $1,427 million in revenue (18.6% YoY growth). The standout performance emerges from their commission revenue, which surged 36% to $514 million, driven by substantially higher trading volumes across all products.

The company's operating leverage continues to improve, with pretax margins expanding to 74% from 72% a year ago, despite a 24% increase in G&A expenses primarily for advertising. This efficiency metric remains best-in-class among financial institutions.

Customer metrics tell an equally compelling story: accounts grew 32% to 3.62 million, while customer equity increased 23% to $573.5 billion. The higher account growth versus equity growth suggests successful penetration into the retail investor segment. Most notably, DARTs (Daily Average Revenue Trades) jumped 50% to 3.52 million, indicating substantially higher engagement that directly fuels transaction revenue.

The relatively modest 3% growth in net interest income to $770 million despite higher margin loans (24% increase to $63.7 billion) and customer credit balances (19% to $125.2 billion) suggests some compression in interest rate spreads, though this remains a robust revenue contributor.

Corporate Finance Strategist

The four-for-one stock split announced by Interactive Brokers represents a shareholder-friendly move designed to enhance accessibility and liquidity. With the current share price of $172.99, the post-split price would approximate $43.25, placing it in a more psychologically attractive range for retail investors. While stock splits have no fundamental impact on company value, they typically reduce trading friction and can broaden the investor base.

Equally significant is the 28% dividend increase from $0.25 to $0.32 per share, which signals management's confidence in sustainable cash flow generation and long-term financial health. This represents approximately a 0.74% yield at current prices (pre-split), which while modest, complements the company's growth profile.

The currency diversification strategy contributed $127 million to comprehensive earnings this quarter as the U.S. dollar value of their GLOBAL basket increased 0.75%. This strategy provides a natural hedge against currency fluctuations, though it creates quarterly volatility in reported earnings.

Interactive Brokers' $17.5 billion in total equity provides a substantial capital buffer, supporting both regulatory requirements and the expanding $63.7 billion margin loan portfolio. The company's continued investment in advertising while maintaining industry-leading margins demonstrates disciplined capital allocation focused on sustainable growth rather than short-term profit maximization.

GAAP Diluted EPS of $1.94, Adjusted¹ EPS of $1.88

GAAP Net Revenues of $1,427 Million, Adjusted Net Revenues of $1,396 Million

Raises Quarterly Dividend From $0.25 to $0.32

Declares Four-for-One Forward Stock Split

GREENWICH, Conn.--(BUSINESS WIRE)-- Interactive Brokers Group, Inc. (Nasdaq: IBKR), an automated global electronic broker, announced results for the quarter ended March 31, 2025.

Reported diluted earnings per share were $1.94 for the current quarter and $1.88 as adjusted. For the year-ago quarter, reported diluted earnings per share were $1.61 and $1.64 as adjusted.

Reported net revenues were $1,427 million for the current quarter and $1,396 million as adjusted. For the year-ago quarter, reported net revenues were $1,203 million and $1,216 million as adjusted.

Reported income before income taxes was $1,055 million for the current quarter and $1,024 million as adjusted. For the year-ago quarter, reported income before income taxes was $866 million and $879 million as adjusted.

Financial Highlights

(All comparisons are to the year-ago quarter.)

• Commission revenue increased 36% to $514 million on higher customer trading volumes. Customer trading volume in stocks, options and futures increased 47%, 25% and 16%, respectively.

• Net interest income increased 3% to $770 million on higher average customer margin loans and customer credit balances.

• Other fees and services increased 32% to $78 million, led by increases of $9 million in risk exposure fees and $3 million in payments for order flow from exchange-mandated programs.

• Execution, clearing and distribution fees increased 20% to $121 million, driven by a higher SEC fee rate, a new FINRA Consolidated Audit Trail (“CAT”) fee initiated during the fourth quarter of 2024, and higher customer trading volumes in stocks, options and futures.

• General and administrative expenses increased 24% to $62 million, driven primarily by an increase of $8 million in advertising expenses.

• Pretax profit margin for the current quarter was 74% as reported and 73% as adjusted. For the year-ago quarter, pretax margin was 72% both as reported and as adjusted.

• Total equity of $17.5 billion.

The Interactive Brokers Group, Inc. Board of Directors declared an increase in the quarterly cash dividend from $0.25 per share to $0.32 per share. This dividend is payable on June 13, 2025, to shareholders of record as of May 30, 2025.

In addition, Interactive Brokers Group, Inc. announced a four-for-one forward split of its common stock to make stock ownership more accessible to investors. Each record holder of common stock as of the close of market on Monday, June 16, 2025, will receive three additional shares of common stock, to be distributed after the close of market on Tuesday, June 17, 2025. Trading is expected to commence on a split-adjusted basis at market open on Wednesday, June 18, 2025.

Business Highlights

(All comparisons are to the year-ago quarter.)

• Customer accounts increased 32% to 3.62 million.
• Customer equity increased 23% to $573.5 billion.
• Total DARTs² increased 50% to 3.52 million.
• Customer credits increased 19% to $125.2 billion.
• Customer margin loans increased 24% to $63.7 billion.

Other Items

In connection with our currency diversification strategy, we base our net worth in GLOBALs, a basket of 10 major currencies in which we hold our equity. In this quarter, our currency diversification strategy increased our comprehensive earnings by $127 million, as the U.S. dollar value of the GLOBAL increased by approximately 0.75%. The effects of the currency diversification strategy are reported as components of (1) Other Income (gain of $20 million) and (2) Other Comprehensive Income (gain of $107 million).

Conference Call Information:

Interactive Brokers Group, Inc. will hold a conference call with investors today, April 15, 2025, at 4:30 p.m. ET to discuss its quarterly results. Members of the public who would like to listen to the conference call should register at https://register-conf.media-server.com/register/BI218ab20742f74471b0ec9061980600cd to obtain the dial-in details. The number should be dialed approximately ten minutes prior to the start of the conference call. The conference call will also be accessible simultaneously, and through replays, as an audio webcast through the Investor Relations section of the Interactive Brokers web site, www.interactivebrokers.com/ir.

About Interactive Brokers Group, Inc.:

Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities, foreign exchange, and forecast contracts around the clock on over 160 markets in numerous countries and currencies from a single unified platform to clients worldwide. We serve individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation have enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Interactive Brokers has consistently earned recognition as a top broker, garnering multiple awards and accolades from respected industry sources such as Barron's, Investopedia, Stockbrokers.com, and many others.

Cautionary Note Regarding Forward-Looking Statements:

The foregoing information contains certain forward-looking statements that reflect the Company’s current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company’s operations and business environment which may cause the Company’s actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. Any forward-looking statements in this release are based upon information available to the Company on the date of this release. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the Company’s financial results may be found in the Company’s filings with the Securities and Exchange Commission.

___________________________

1 See the reconciliation of non-GAAP financial measures starting on page 9.

2 Daily average revenue trades (DARTs) are based on customer orders.

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
		Three Months
		Ended March 31,
		2025				2024
		(in millions, except share and per share data)
Revenues:
Commissions		$	514			$	379
Other fees and services			78				59
Other income (loss)			65				18
Total non-interest income			657				456
Interest income			1,718				1,760
Interest expense			(948	)			(1,013	)
Total net interest income			770				747
Total net revenues			1,427				1,203
Non-interest expenses:
Execution, clearing and distribution fees			121				101
Employee compensation and benefits			154				145
Occupancy, depreciation and amortization			24				26
Communications			10				10
General and administrative			62				50
Customer bad debt			1				5
Total non-interest expenses			372				337
Income before income taxes			1,055				866
Income tax expense			91				71
Net income			964				795
Net income attributable to noncontrolling interests			751				620
Net income available for common stockholders		$	213			$	175
Earnings per share:
Basic		$	1.95			$	1.63
Diluted		$	1.94			$	1.61
Weighted average common shares outstanding:
Basic			108,923,381				107,070,830
Diluted			109,865,741				108,149,440

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
		Three Months
		Ended March 31,
		2025			2024
		(in millions, except share and per share data)
Comprehensive income:
Net income available for common stockholders		$	213		$	175
Other comprehensive income:
Cumulative translation adjustment, before income taxes			28			(26	)
Income taxes related to items of other comprehensive income			-			-
Other comprehensive income (loss), net of tax			28			(26	)
Comprehensive income available for common stockholders		$	241		$	149
Comprehensive earnings per share:
Basic		$	2.21		$	1.39
Diluted		$	2.19		$	1.37
Weighted average common shares outstanding:
Basic			108,923,381			107,070,830
Diluted			109,865,741			108,149,440
Comprehensive income attributable to noncontrolling interests:
Net income attributable to noncontrolling interests		$	751		$	620
Other comprehensive income - cumulative translation adjustment			79			(76	)
Comprehensive income attributable to noncontrolling interests		$	830		$	544

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
					March 31, 2025			December 31, 2024
					(in millions)
Assets
Cash and cash equivalents					$	3,500		$	3,633
Cash - segregated for regulatory purposes						39,173			36,600
Securities - segregated for regulatory purposes						29,394			27,846
Securities borrowed						5,845			5,369
Securities purchased under agreements to resell						8,376			6,575
Financial instruments owned, at fair value						3,406			1,924
Receivables from customers, net of allowance for credit losses						63,857			64,432
Receivables from brokers, dealers and clearing organizations						2,495			2,196
Other assets						1,624			1,567
Total assets					$	157,670		$	150,142
Liabilities and equity
Liabilities
Short-term borrowings					$	12		$	14
Securities loaned						16,894			16,248
Financial instruments sold but not yet purchased, at fair value						252			293
Other payables:
Customers						120,654			115,343
Brokers, dealers and clearing organizations						1,226			476
Other payables						1,149			1,171
						123,029			116,990
Total liabilities						140,187			133,545
Equity
Stockholders' equity						4,502			4,280
Noncontrolling interests						12,981			12,317
Total equity						17,483			16,597
Total liabilities and equity					$	157,670		$	150,142
		March 31, 2025				December 31, 2024
Ownership of IBG LLC Membership Interests		Interests		%		Interests			%
IBG, Inc.		108,981,614		25.8%		108,931,614			25.8%
Noncontrolling interests (IBG Holdings LLC)		313,643,354		74.2%		313,643,354			74.2%
Total IBG LLC membership interests		422,624,968		100.0%		422,574,968			100.0%

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
OPERATING DATA
EXECUTED ORDER VOLUMES:
(in 000's, except %)
		Customer		%		Principal		%		Total		%
Period		Orders		Change		Orders		Change		Orders		Change
2022		532,064				26,966				559,030
2023		483,015		(9%)		29,712		10%		512,727		(8%)
2024		661,666		37%		63,348		113%		725,014		41%
1Q2024		143,320				9,190				152,510
1Q2025		211,148		47%		28,393		209%		239,541		57%
4Q2024		196,433				23,220				219,653
1Q2025		211,148		7%		28,393		22%		239,541		9%
CONTRACT AND SHARE VOLUMES:
(in 000's, except %)
TOTAL
		Options		%		Futures1		%		Stocks		%
Period		(contracts)		Change		(contracts)		Change		(shares)		Change
2022		908,415				207,138				330,035,586
2023		1,020,736		12%		209,034		1%		252,742,847		(23%)
2024		1,344,855		32%		218,327		4%		307,489,711		22%
1Q2024		307,593				54,046				64,027,093
1Q2025		383,998		25%		61,869		14%		93,934,241		47%
4Q2024		371,683				52,285				97,610,744
1Q2025		383,998		3%		61,869		18%		93,934,241		(4%)
CUSTOMER
		Options		%		Futures1		%		Stocks		%
Period		(contracts)		Change		(contracts)		Change		(shares)		Change
2022		873,914				203,933				325,368,714
2023		981,172		12%		206,073		1%		248,588,960		(24%)
2024		1,290,770		32%		214,864		4%		302,040,873		22%
1Q2024		296,146				53,018				62,898,480
1Q2025		369,931		25%		61,381		16%		92,763,867		47%
4Q2024		356,254				51,662				95,910,447
1Q2025		369,931		4%		61,381		19%		92,763,867		(3%)
PRINCIPAL
		Options		%		Futures1		%		Stocks		%
Period		(contracts)		Change		(contracts)		Change		(shares)		Change
2022		34,501				3,205				4,666,872
2023		39,564		15%		2,961		(8%)		4,153,887		(11%)
2024		54,085		37%		3,463		17%		5,448,838		31%
1Q2024		11,447				1,028				1,128,613
1Q2025		14,067		23%		488		(53%)		1,170,374		4%
4Q2024		15,429				623				1,700,297
1Q2025		14,067		(9%)		488		(22%)		1,170,374		(31%)
1 Includes options on futures

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
OPERATING DATA, CONTINUED
CUSTOMER STATISTICS
Year over Year			1Q2025			1Q2024		% Change
Total Accounts (in thousands)			3,616			2,746		32%
Customer Equity (in billions)1		$	573.5		$	465.9		23%
Total Customer DARTs (in thousands)			3,519			2,350		50%
Cleared Customers
Commission per Cleared Commissionable Order2		$	2.76		$	2.93		(6%)
Cleared Avg. DARTs per Account (Annualized)			220			197		12%
Consecutive Quarters			1Q2025			4Q2024		% Change
Total Accounts (in thousands)			3,616			3,337		8%
Customer Equity (in billions)1		$	573.5		$	568.2		1%
Total Customer DARTs (in thousands)			3,519			3,118		13%
Cleared Customers
Commission per Cleared Commissionable Order2		$	2.76		$	2.72		1%
Cleared Avg. DARTs per Account (Annualized)			220			213		3%
(1) Excludes non-Customers.
(2) Commissionable Order - a customer order that generates commissions.

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
NET INTEREST MARGIN
(UNAUDITED)
		Three Months
		Ended March 31,
		2025				2024
		(in millions)
Average interest-earning assets
Segregated cash and securities		$	67,044			$	61,132
Customer margin loans			64,363				46,653
Securities borrowed			4,871				5,368
Other interest-earning assets			12,456				9,952
FDIC sweeps1			4,785				3,861
		$	153,519			$	126,966
Average interest-bearing liabilities
Customer credit balances		$	118,022			$	99,510
Securities loaned			16,137				11,734
Other interest-bearing liabilities			66				-
		$	134,225			$	111,244
Net interest income
Segregated cash and securities, net		$	663			$	764
Customer margin loans2			775				678
Securities borrowed and loaned, net			10				26
Customer credit balances, net2			(817	)			(881	)
Other net interest income1/3			163				175
Net interest income3		$	794			$	762
Net interest margin ("NIM")			2.10	%			2.41	%
Annualized yields
Segregated cash and securities			4.01	%			5.03	%
Customer margin loans			4.88	%			5.85	%
Customer credit balances			2.81	%			3.56	%

1	Represents the average amount of customer cash swept into FDIC-insured banks as part of our Insured Bank Deposit Sweep Program. This item is not recorded in the Company's consolidated statements of financial condition. Income derived from program deposits is reported in other net interest income in the table above.
2	Interest income and interest expense on customer margin loans and customer credit balances, respectively, are calculated on daily cash balances within each customer’s account on a net basis, which may result in an offset of balances across multiple account segments (e.g., between securities and commodities segments).
3	Includes income from financial instruments that has the same characteristics as interest, but is reported in other fees and services and other income in the Company’s consolidated statements of comprehensive income. For the three months ended March 31, 2025 and 2024, $8 million and $6 million were reported in other fees and services, respectively. For the three months ended March 31, 2025 and 2024, $16 million and $9 million were reported in other income, respectively.

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
		Three Months
		Ended March 31,
		2025				2024
		(in millions)
Adjusted net revenues1
Net revenues - GAAP		$	1,427			$	1,203
Non-GAAP adjustments
Currency diversification strategy, net			(20	)			2
Mark-to-market on investments2			(11	)			11
Total non-GAAP adjustments			(31	)			13
Adjusted net revenues		$	1,396			$	1,216
Adjusted income before income taxes1
Income before income taxes - GAAP		$	1,055			$	866
Non-GAAP adjustments
Currency diversification strategy, net			(20	)			2
Mark-to-market on investments2			(11	)			11
Total non-GAAP adjustments			(31	)			13
Adjusted income before income taxes		$	1,024			$	879
Adjusted pre-tax profit margin			73	%			72	%

		Three Months
		Ended March 31,
		2025				2024
		(in millions)
Adjusted net income available for common stockholders1
Net income available for common stockholders - GAAP		$	213			$	175
Non-GAAP adjustments
Currency diversification strategy, net			(5	)			0
Mark-to-market on investments2			(3	)			3
Income tax effect of above adjustments3			2				(1	)
Total non-GAAP adjustments			(6	)			2
Adjusted net income available for common stockholders		$	207			$	177
Note: Amounts may not add due to rounding.

		Three Months
		Ended March 31,
		2025				2024
		(in dollars)
Adjusted diluted EPS1
Diluted EPS - GAAP		$	1.94			$	1.61
Non-GAAP adjustments
Currency diversification strategy, net			(0.05	)			0.00
Mark-to-market on investments2			(0.03	)			0.03
Income tax effect of above adjustments3			0.02				(0.01	)
Total non-GAAP adjustments			(0.06	)			0.02
Adjusted diluted EPS		$	1.88			$	1.64
Diluted weighted average common shares outstanding			109,865,741				108,149,440
Note: Amounts may not add due to rounding.

Note: The term “GAAP” in the following explanation refers to generally accepted accounting principles in the United States.

¹ Adjusted net revenues, adjusted income before income taxes, adjusted net income available for common stockholders and adjusted diluted earnings per share (“EPS”) are non-GAAP financial measures.

• We define adjusted net revenues as net revenues adjusted to remove the effect of our currency diversification strategy and our net mark-to-market gains (losses) on investments².
• We define adjusted income before income taxes as income before income taxes adjusted to remove the effect of our currency diversification strategy and our net mark-to-market gains (losses) on investments.
• We define adjusted net income available to common stockholders as net income available for common stockholders adjusted to remove the after-tax effects attributable to IBG, Inc. of our currency diversification strategy and our net mark-to-market gains (losses) on investments.
• We define adjusted diluted EPS as adjusted net income available for common stockholders divided by the diluted weighted average number of shares outstanding for the period.

Management believes these non-GAAP items are important measures of our financial performance because they exclude certain items that may not be indicative of our core operating results and business outlook and may be useful to investors and analysts in evaluating the operating performance of the business and facilitating a meaningful comparison of our results in the current period to those in prior and future periods. Our currency diversification strategy and our mark-to-market on investments are excluded because management does not believe they are indicative of our underlying core business performance. Adjusted net revenues, adjusted income before income taxes, adjusted net income available to common stockholders and adjusted diluted EPS should be considered in addition to, rather than as a substitute for, GAAP net revenues, income before income taxes, net income attributable to common stockholders and diluted EPS.

² Mark-to-market on investments represents the net mark-to-market gains (losses) on investments in equity securities that do not qualify for equity method accounting, which are measured at fair value; on our U.S. government and municipal securities portfolios, which are typically held to maturity; and on certain other investments.

³ The income tax effect is estimated using the statutory income tax rates applicable to the Company.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250415584574/en/

For Interactive Brokers Group, Inc. Investors: Nancy Stuebe, investor-relations@ibkr.com or Media: Rob Garfield, media@ibkr.com.

Source: Interactive Brokers Group, Inc.

FAQ

What are Interactive Brokers (IBKR) Q1 2025 earnings per share?

IBKR reported GAAP diluted EPS of $1.94 and adjusted EPS of $1.88 for Q1 2025.

When will IBKR's four-for-one stock split take effect?

The stock split will be effective after market close on June 17, 2025, with split-adjusted trading beginning June 18, 2025.

How much did Interactive Brokers increase its dividend in Q1 2025?

IBKR increased its quarterly dividend by 28% from $0.25 to $0.32 per share, payable June 13, 2025.

What was IBKR's customer account growth in Q1 2025?

Customer accounts grew 32% year-over-year to 3.62 million.

How much did IBKR's trading volumes increase in Q1 2025?

Stock trading volume increased 47%, options 25%, and futures 16% year-over-year.