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1. Company Snapshot

1.a. Company Description

Interactive Brokers Group, Inc.operates as an automated electronic broker worldwide.The company specializes in executing, clearing, and settling trades in stocks, options, futures, foreign exchange instruments, bonds, mutual funds, exchange traded funds (ETFs), metals, and cryptocurrencies.


It also custodies and services accounts for hedge and mutual funds, ETFs, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors.In addition, it offers custody, prime brokerage, securities, and margin lending services.The company serves institutional and individual customers through approximately 150 electronic exchanges and market centers.


Interactive Brokers Group, Inc.was founded in 1977 and is headquartered in Greenwich, Connecticut.

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1.b. Last Insights on IBKR

Interactive Brokers Group's recent performance was driven by strong Q4 earnings, with record growth in net new accounts, client equity, and quarterly adjusted pretax income. The company's robust operational performance, compounding book value at 15%+ and earnings at 20%+ CAGR over the past decade, underpins continued growth. Technology-driven initiatives, international expansion, and recent partnerships have enhanced long-term prospects. However, valuation is elevated, with a 32x P/E and 6x P/B, limiting the margin of safety for new investors.

1.c. Company Highlights

2. Interactive Brokers' Record-Breaking Performance in Q4 2025

Interactive Brokers reported a remarkable fourth-quarter 2025 performance, with quarterly adjusted pretax income reaching a record $1 billion for the fifth consecutive quarter. Net revenues exceeded $6 billion, driven by a 27% year-over-year increase in commission revenues to $582 million, and a yearly record net interest income of $3.6 billion, despite multiple rate cuts. The company's earnings per share (EPS) came in at $0.65, beating estimates of $0.595. The pretax margin matched the third-quarter record of 79% and achieved a new record of 77% for the year.

Publication Date: Jan -21

📋 Highlights
  • Record Client Equity Growth:: Client equity surged 37% to $780 billion, with over $200 billion added year-over-year.
  • Historic Account Growth:: Added over 1,000,000 net new accounts in 2025, a company record.
  • Quarterly Revenue Milestone:: Net revenues exceeded $6 billion for the first time in 2025.
  • Adjusted Pretax Income:: Reached $1 billion for the fifth consecutive quarter, with a 79% pretax margin (quarterly record).
  • Net Interest Income:: Generated $966 million quarterly and $3.6 billion yearly, despite multiple rate cuts.

Business Growth Drivers

The company's strong performance was driven by significant growth in its customer base, with over 1,000,000 net new accounts added in 2025, a record for the firm. Client equity rose 37% to $780 billion, with a substantial increase in customer balances sensitive to interest rates to $24.7 billion. The company's effective business strategy and attractiveness to customers have contributed to its success, with account growth remaining strong at 30%.

Valuation and Outlook

Given the company's current valuation metrics, including a Price-to-Tangible Book Value (P/TBV) ratio of 1.56 and a Price-to-Sales (P/S) ratio of 58.12, the market appears to have priced in a significant level of growth. Analysts estimate next year's revenue growth at 9.5%. The company's Net Interest Margin (NIM) and ability to maintain its pretax margin will be crucial in determining its future performance. With a healthy balance sheet and excess cash, the company is well-positioned to drive further growth through its Predictive Markets platform and other initiatives.

Strategic Initiatives

The company is awaiting a decision on its bank charter application, which is expected to take several months. It is also exploring opportunities to drive more engagement on Predictive Markets and onboarding more FCMs. The company's crypto offering is growing, although revenues are currently small. With a focus on innovative products and services, Interactive Brokers is poised to continue its strong performance in the financial services sector.

Expense Management and Future Plans

Expense growth has been consistent over the past few years, with a 6% growth in headcount and 10% growth in compensation. The company expects that its initiatives in AI may affect the rate of expense growth in the future. Advertising spending will increase to some extent to boost account growth, and the company plans to drive more engagement on Predictive Markets through the Interactive Brokers platform.

3. NewsRoom

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The Structural Risks Investors Should Watch at Interactive Brokers

Mar -10

Source: fool.com

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Interactive Brokers Group, Inc. (IBKR) Laps the Stock Market: Here's Why

Mar -09

Source: zacks.com

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When Fear Spikes, These 5 Quiet, Overlooked Stocks Keep Delivering

Mar -09

Source: 247wallst.com

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The Zacks Analyst Blog Taiwan and Interactive Brokers

Mar -09

Source: zacks.com

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This Top Growth Stock to Buy in March Fell 6% This Week, but Is Up More Than 200% in Just 3 Years

Mar -08

Source: fool.com

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3 Under-the-Radar GARP Stocks That Could Beat Big Tech

Mar -07

Source: marketbeat.com

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Elo Mutual Pension Insurance Co Has $1.18 Million Position in Interactive Brokers Group, Inc. $IBKR

Mar -06

Source: defenseworld.net

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Interactive Brokers Deepens Global Footprint Through ISK Expansion

Mar -04

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.00%)

6. Segments

Electronic Brokerage

Expected Growth: 7%

Interactive Brokers Group's 7% growth in Electronic Brokerage is driven by increasing adoption of online trading platforms, rising demand for low-cost trading options, and expanding global presence. Additionally, the company's investments in technology, mobile trading capabilities, and customer acquisition strategies have contributed to its growth.

7. Detailed Products

Brokerage Services

Interactive Brokers offers online brokerage services, providing access to trade various financial products such as stocks, options, futures, forex, and bonds across multiple markets globally.

Trading Platforms

Interactive Brokers provides a range of trading platforms, including Trader Workstation (TWS), WebTrader, and mobile apps, offering advanced trading tools, analytics, and risk management features.

Options Trading

Interactive Brokers offers options trading on various underlying assets, including stocks, ETFs, and indices, with competitive pricing and advanced risk management tools.

Futures Trading

Interactive Brokers provides access to futures markets, enabling clients to trade futures contracts on commodities, indices, and currencies.

Forex Trading

Interactive Brokers offers forex trading in over 100 currency pairs, with competitive pricing, advanced charting tools, and automated trading capabilities.

Mutual Funds and ETFs

Interactive Brokers offers a wide range of mutual funds and ETFs from leading fund families, with no transaction fees or commissions.

Bonds and Fixed Income

Interactive Brokers provides access to a wide range of government and corporate bonds, CDs, and other fixed-income securities.

Robo-Advisory Services

Interactive Brokers offers automated investment management services, including portfolio rebalancing, tax optimization, and goal-based investing.

Custodial Services

Interactive Brokers provides custodial services for financial advisors, broker-dealers, and institutional clients, offering trade execution, clearing, and settlement services.

8. Interactive Brokers Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Interactive Brokers Group, Inc. operates in a niche market with limited substitutes, reducing the threat of substitutes.

Bargaining Power Of Customers

Interactive Brokers Group, Inc. has a diverse customer base, but some large institutional clients may have bargaining power, leading to a medium level of bargaining power.

Bargaining Power Of Suppliers

Interactive Brokers Group, Inc. has a strong bargaining position with its suppliers, given its large scale and diversified business model.

Threat Of New Entrants

While there are barriers to entry in the online brokerage industry, new entrants can still disrupt the market, posing a medium-level threat to Interactive Brokers Group, Inc.

Intensity Of Rivalry

The online brokerage industry is highly competitive, with established players competing fiercely for market share, leading to a high level of intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 86.39%
Debt Cost 8.02%
Equity Weight 13.61%
Equity Cost 8.02%
WACC 8.02%
Leverage 634.63%

11. Quality Control: Interactive Brokers Group, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Stifel Financial

A-Score: 6.1/10

Value: 4.9

Growth: 5.6

Quality: 7.2

Yield: 4.0

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
PJT Partners

A-Score: 6.0/10

Value: 4.3

Growth: 8.1

Quality: 6.9

Yield: 3.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Piper Sandler

A-Score: 5.5/10

Value: 4.1

Growth: 5.4

Quality: 6.6

Yield: 5.0

Momentum: 5.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Evercore

A-Score: 5.3/10

Value: 3.0

Growth: 5.8

Quality: 8.0

Yield: 3.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Interactive Brokers

A-Score: 5.2/10

Value: 1.4

Growth: 8.7

Quality: 6.2

Yield: 0.0

Momentum: 9.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Jefferies

A-Score: 5.2/10

Value: 6.0

Growth: 5.1

Quality: 6.3

Yield: 6.0

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

68.5$

Current Price

68.5$

Potential

-0.00%

Expected Cash-Flows