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what it is
Interactive Brokers runs the pipes for trading stocks, options, futures, bonds, funds, and currencies across more than 160 markets.
how it gets paid
Last year Interactive Brokers made $2.4B in revenue. Net interest income was the main engine at $1.19B, or 50% of sales.
why it's growing
Revenue grew 23.4% last year. Revenue grew 194% vs. prior year and EPS grew 168%.
what just happened
Revenue hit $1.8B and EPS came in at $1.58, both far above the prior year.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
75/100 earnings predictability — reasonably predictable
30.6x trailing p/e — you're paying up for this one
0.5% dividend yield — cash in your pocket every quarter
18.0% return on capital — nothing to write home about
xvary composite: 76/100 — average
What they do
Interactive Brokers runs the pipes for trading stocks, options, futures, bonds, funds, and currencies across more than 160 markets.
This business wins on automation and price. It serves 4.13 million accounts with 2,988 employees, which is a lot of customers per worker. Switching costs (moving your money and trading setup) → leaving is a hassle → so what: once your account, margin loan, and trading habits live there, moving gets annoying.
How they make money
$2.4B
annual revenue · their business grew +23.4% last year
Net interest income
$1.19B
Commissions
$0.58B
Other fees and services
$0.27B
Principal transactions
$0.18B
Other income
$0.18B
The products that matter
multi-asset trade execution
electronic brokerage platform
4.13M customer accounts
this is the front door. 4.13 million accounts means more trades, more balances, and more ways to monetize the same client relationship.
scale engine
margin lending and client cash
net interest economics
16.2% net margin
here's the thing: this broker also behaves a bit like a balance-sheet business. higher average customer margin loans and credit balances helped profit, which is why rates matter almost as much as trading screens.
rate sensitive
custody and client asset base
client equity growth
+40% from a year ago
bigger client balances help before you count another trade. more money on platform gives IBKR more assets to earn on and more reasons for clients to stay active.
balance growth
Key numbers
4.13M
customer accounts
Accounts rose 32% in the third quarter. More accounts mean more cash balances, more trades, and more chances to sell margin loans.
30.6x
trailing p/e
P/E (price-to-earnings ratio) → how much investors pay for each dollar of profit → so what: you are paying up for continued growth.
18.0%
return on capital
Return on capital → profit earned on money put into the business → so what: 18% says this platform turns investment into earnings well.
$81
18-month target
That is about 23% above $65.80. It gives you a simple scorecard for whether growth keeps outrunning rate pressure.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 50 / 100
- net profit margin 21.0% — keeps 21 cents of every dollar in revenue
- return on equity 18% — $0.18 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in IBKR 3 years ago → it's now worth $37,260.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Revenue hit $1.8B and EPS came in at $1.58, both far above the prior year.
Revenue grew 194% vs. prior year and EPS grew 168%. The business got help from both stronger trading activity and the rate-driven interest engine.
$1.8B
revenue
$1.58
eps
n/a
n/a
the number that mattered
The key number was $1.8B in quarterly revenue because it shows how much operating leverage this model has when client activity and rates cooperate.
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interactive brokers stock remains at the zenith of our timeliness ranking system.
-
customer accounts rose 32%, to 4.13 million users, during the third quarter.that period was marked by a rise in profit, as interest income got a boost from higher average customer margin loans and credit balances. an industrywide trend is to lend money to clients to trade and subsequently earn interest on idle cash in those accounts that is invested in short-term instruments.
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too, while many pundits raise concerns that the september rate cut will pressure interest earned on assets and paid on liabilities, further rate trimming will propel margin trading volumes and aid commission revenues.with that, we think ibkr’s profitability will be on an upward trajectory in the next few campaigns (more color below). accordingly, we advise our subscribers to get on board this timely (1: highest) equity for the coming six to 12 months.
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our earnings expectations for both 2025 and 2026 are up by $0.20 a share.
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the client base is increasing in both number and client equity (up 40% vs. prior year).
source: company earnings report, 2026
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What could go wrong
the main risk here is simple: IBKR's nicest profit driver has been rates, and rates do not work for the company every year.
med
fed-driven pressure on net interest income
a meaningful part of IBKR's earnings comes from interest earned on client cash and margin loans. if rates fall faster than balances rise, one of the cleanest profit levers gets weaker.
the same $2.4B revenue base that benefited from higher balances can feel pressure in the other direction.
med
trading activity can cool off
commission revenue still depends on clients actually doing things. long stretches of calm markets can reduce activity, especially if retail enthusiasm fades after a strong run.
32% account growth helps, but quieter clients would still pressure the revenue mix investors are paying 30.6x earnings for.
med
cheap brokers stay cheap
online brokerage is a business where price transparency is brutal. commissions, margin rates, and cash-sweep economics are all visible to clients, which limits how much any broker can quietly raise prices.
with a 16.2% net margin, even modest pricing pressure would show up quickly in earnings.
med
operational and regulatory complexity is real
a global broker handling multiple products, markets, and client balances has more ways to stumble than a plain software company. outages, compliance mistakes, or margin-management errors do not stay small for long in this business.
the market forgives a slow quarter more easily than it forgives a trust event.
this is a good business, but the earnings engine still needs rates, balances, and activity to line up more often than not. if one leg weakens, the premium multiple has less cover.
source: institutional data · regulatory filings · risk analysis
Pay attention to
trend
customer account growth
4.13M accounts and 32% growth are carrying a lot of the valuation argument right now. if that slows hard, the stock stops looking like a compounding machine and starts looking like a normal broker again.
metric
eps estimate revisions
2025 and 2026 estimates both moved up by $0.20 a share. you want revisions moving with the stock, not against it.
risk
net interest income sensitivity
higher average customer margin loans and credit balances helped profit. if rate cuts arrive before balances grow enough to offset them, the easiest earnings tailwind disappears.
calendar
next account and client equity update
accounts were up 32% and client equity was up 40% from a year ago. the next print tells you whether growth is still compounding or just settling back to earth.
Analyst rankings
short-term outlook
top 5%
momentum score 1 — the highest rating. in human-speak, analysts think this has better near-term price action than almost everything else they cover.
risk profile
average
stability score 3. beta language aside, this means you should expect movement with the market and a bit of company-specific rate noise on top.
chart momentum
top 20%
technical score 2 — the trend is still favorable, which usually matters more than anyone wants to admit.
earnings predictability
75 / 100
results have been reasonably reliable. that consistency helps explain why the market grants a premium multiple instead of a broker discount.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 488 buyers vs. 368 sellers in 3q2025. total institutional holdings: 0.4B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$47
$115
$66
current price
$81
target midpoint · +23% from current · 3-5yr high: $105 (+60% · 13% ann'l return)
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