Interactive Brokers Group In — Financial Results
Revenue and Profit Surged 20% as Trading Activity Boomed
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total Net Revenues | $6,205M | $5,185M | +20% |
| Income Before Taxes | $4,771M | $3,695M | +29% |
| Pretax Profit Margin | 77% | 71% | +6pp |
| Diluted EPS | $2.22 | $1.73 | +28% |
A surge in customer trading activity — daily average trades (DARTs) rose 40% to 3.7 million — drove commissions up 27% to $2,149M. At the same time, expenses actually fell 4%, pushing the pretax profit margin from 71% to an impressive 77%. This is a business that is growing revenue fast while keeping costs essentially flat.
Customer Base Grew 32%, with Assets Up 37%
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total Accounts | 4,399K | 3,337K | +32% |
| Customer Equity (assets held) | $779.9B | $568.2B | +37% |
The company added over one million new accounts in a single year, and the assets those customers hold on the platform grew even faster than the account count. This matters because more customer assets means more margin lending and more cash to earn interest on — both major revenue drivers.
Net Interest Income Rose 13% Despite Falling Interest Rates
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Net Interest Income | $3,563M | $3,148M | +13% |
| Net Interest Margin (NIM) | 2.08% | 2.35% | -0.27pp |
| Avg. Customer Margin Loans | $70.0B | $53.5B | +31% |
Net interest income — money earned on customer cash and loans, minus what's paid out — is the single largest revenue line, at 57% of total. The Fed cut rates by 0.75% in 2025, which compressed the net interest margin (profit earned per dollar of assets). However, the sheer growth in customer balances more than offset this drag. If rates stay low or fall further, that margin squeeze could become a more meaningful headwind.
Securities Lending Business More Than Tripled Its Contribution
Net interest earned from securities lending (loaning out shares that customers want to short-sell) jumped $195M, or 212%, to $287M. Higher short-selling activity and rising stock prices — which inflate the notional value of shares being lent — both contributed. This is a high-margin, activity-driven revenue stream that benefits from volatile, active markets.
Costs Fell While Revenue Rose, Thanks to Lower Fees and Minimal Bad Debt
Execution, clearing and distribution fees dropped 6% to $420M, helped by higher rebates from exchanges on increased trading volumes and the elimination of SEC transaction fees from May 2025. Customer bad debt (losses when customers can't cover their losses) collapsed 93% to just $1M, compared to $15M the prior year. These two items together freed up roughly $40M that flowed straight to the bottom line.
A $387M Currency Tailwind Boosted Comprehensive Earnings
The company holds roughly 25% of its equity in a basket of 10 non-US currencies it calls the "GLOBAL." In 2025, the US dollar weakened, so the value of that basket rose by about 2%, adding $387M to comprehensive earnings. This compared to a $222M drag in 2024. This gain does not flow through the standard income statement — it sits in other comprehensive income — so it will not repeat unless the dollar weakens again.