10-QPeriod: Q1 FY2025

Interactive Brokers Group, Inc. Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 8, 2025For Securities:IBKR

Summary

Interactive Brokers Group, Inc. reported strong performance for the first quarter of 2025, with significant increases in net revenues and income before income taxes, driven primarily by robust growth in customer trading volumes. Net revenues rose 19% year-over-year to $1.43 billion, while income before income taxes surged 22% to $1.06 billion. This growth was fueled by a substantial 36% increase in commissions, reflecting a 50% rise in daily average revenue trades (DARTs), alongside a healthy 32% increase in other fees and services. The company's robust technology and global reach continue to attract a diverse customer base, with total accounts increasing by 32% year-over-year. Despite a challenging macroeconomic environment marked by mixed equity market performance and evolving interest rate policies, Interactive Brokers demonstrated operational efficiency. Non-interest expenses increased by 10%, a rate lower than revenue growth, leading to an improved pretax profit margin of 74% compared to 72% in the prior year. The company also announced a forthcoming four-for-one stock split and an increase in its quarterly dividend, signaling confidence in its ongoing financial strength and commitment to shareholder returns.

Financial Highlights

31 data points
Beta

Revenue

$592.00M

Net Income

$213.00M

36.0% Net Margin

EPS (Diluted)

$0.48

Total Assets

$157.67B

Cash & Equivalents

$3.50B

Free Cash Flow

$2.58B

Financial Statements
Beta
Revenue$592.00M
SG&A Expenses$62.00M
Net Income$213.00M
EPS (Basic)$0.49
EPS (Diluted)$0.48
Shares Outstanding (Basic)435.69M
Shares Outstanding (Diluted)439.46M

Key Highlights

  • 1Net revenues increased by 19% to $1.43 billion, driven by higher customer trading volumes and fees.
  • 2Income before income taxes increased by 22% to $1.06 billion, demonstrating strong operational leverage.
  • 3Commissions revenue grew 36% to $514 million, supported by a 50% increase in daily average revenue trades (DARTs).
  • 4Total customer accounts grew 32% year-over-year, indicating strong customer acquisition and retention.
  • 5Non-interest expenses grew at a slower pace (10%) than revenue, leading to an improved pretax profit margin of 74%.
  • 6The company announced a four-for-one stock split and increased its quarterly dividend to $0.08 per share (post-split), signaling financial health and shareholder return focus.
  • 7Strong liquidity position maintained, with cash, cash equivalents, and restricted cash increasing to $42.7 billion.

Frequently Asked Questions

The primary driver of revenue growth was a significant increase in customer trading volumes across all product types, which led to a 36% rise in commission revenue. Additionally, other fees and services, including market data, risk exposure fees, and payment for order flow, also contributed substantially to revenue growth.

Interactive Brokers demonstrated effective cost management. Non-interest expenses increased by 10%, which was a slower rate than the 19% revenue growth. This operational efficiency resulted in an improved pretax profit margin of 74% for the quarter, up from 72% in the prior year's quarter.

The announced four-for-one stock split aims to make the stock more accessible to a wider range of investors, potentially increasing liquidity and trading activity. The increase in the quarterly dividend from $0.25 to $0.32 per share (pre-split) signals the company's confidence in its sustained profitability and its commitment to returning value to shareholders.

The company maintains a strong liquidity position, with cash, cash equivalents, and restricted cash totaling $42.7 billion as of March 31, 2025. Furthermore, all operating subsidiaries were in compliance with their respective regulatory capital requirements, with aggregate excess regulatory capital of $12.9 billion, indicating a solid financial foundation and operational stability.