Interactive Brokers Group (IBKR) Reports Strong Q3 2025 Earnings
Earnings Release Date: October 16, 2025
Key Points
- GAAP EPS: $0.59 (vs. $0.42 in Q3 2024), up 40% YoY.
- Adjusted EPS: $0.57 (vs. $0.40), up 43% YoY.
- GAAP net revenue: $1.66 billion; Adjusted net revenue: $1.61 billion, up 21% YoY.
- Pre-tax profit margin: 79%, up from 67% last year.
- Total equity: $19.5 billion, up 17% YoY.
- Dividend: $0.08 per share, payable December 12, 2025.
Against Street Expectations:
- EPS: $0.57 vs. Street estimate of ~$0.56 — slight beat.
- Revenue: $1.61B vs. $1.60B est — in line.
Quarter Highlights
- Commission revenue: up 23% to $537M, driven by higher customer trading activity.
- Stock volume +67%; Options +27%; Futures –7%.
- Net interest income: up 21% to $967M, supported by higher securities lending and greater margin balances.
- Customer accounts: up 32% YoY to 4.13 million.
- Customer equity: up 40% YoY to $757.5B.
- Customer margin loans: up 39% to $77.3B.
- Daily average revenue trades (DARTs): 3.62M, up 34%.
- General & administrative expenses: down 59% due to absence of prior-year legal/regulatory charges.
- Pre-tax income: $1.31B (adjusted $1.27B), up 44% YoY.
CEO Commentary
“We delivered another quarter of record client activity, revenue growth, and profit expansion,” said Thomas Peterffy, Chairman.
“Client equity reached new highs, reflecting our technology-driven platform and global reach. We remain focused on automation, low-cost execution, and expanding our global client base.”
Future Outlook
- IBKR highlighted sustained growth in client balances and trading volumes, supported by global market volatility and interest rate tailwinds.
- Management expects continued growth in commissions and net interest income, though at a slower pace as rate benefits normalize.
- The company reiterated commitment to cost control and technology investment to support scale efficiency.
- No formal Q4 guidance provided in the release.
Financial Summary
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|---|---|---|---|
| Net Revenues (GAAP) | $1.655 B | $1.365 B | +21% |
| Adjusted Net Revenues | $1.610 B | $1.327 B | +21% |
| Income Before Taxes (GAAP) | $1.312 B | $0.909 B | +44% |
| Adjusted Income Before Taxes | $1.267 B | $0.871 B | +46% |
| Net Income (GAAP) | $1.186 B | $0.834 B | +42% |
| Net Income to Common Stockholders | $263 M | $184 M | +43% |
| Adjusted Diluted EPS | $0.57 | $0.40 | +43% |
| Pretax Profit Margin | 79% | 67% | +12 pts |
| Customer Accounts | 4.13 M | 3.12 M | +32% |
| Customer Equity | $757.5 B | $541.5 B | +40% |
| Margin Loans | $77.3 B | $55.7 B | +39% |
Capital Return
- Dividend: $0.08/share payable Dec 12, 2025 to holders of record Dec 1, 2025.
- No share repurchases announced.
- Total equity: $19.5B; strong capital position with pretax margin of 79%.
About Interactive Brokers
Interactive Brokers Group, Inc. (NASDAQ: IBKR) is a member of the S&P 500 and a leading global automated electronic broker. Its subsidiaries provide trade execution and custody for securities, commodities, and FX across 160+ markets in multiple currencies. The firm’s technology-driven platform serves individual and institutional clients, including hedge funds, advisors, and proprietary trading groups, at low cost and high speed.
Key Takeaways
- Strong quarter: EPS +43%, revenue +21% YoY, driven by trading and interest income.
- Record profitability: Pre-tax margin 79%, aided by lower costs.
- Operational momentum: 32% more accounts, 40% higher customer equity.
- Quality of beat: Modest upside to expectations, largely from interest income.
- Caution: Growth heavily tied to market activity and rate levels; slower rate tailwinds could moderate margins.
- Overall: IBKR delivered another solid quarter of scalable growth and profitability, underscoring its structural advantage in electronic brokerage efficiency.