tiprankstipranks
Trending News
More News >
Interactive Brokers (IBKR)
NASDAQ:IBKR
Advertisement

Interactive Brokers (IBKR) AI Stock Analysis

Compare
2,302 Followers

Top Page

IBKR

Interactive Brokers

(NASDAQ:IBKR)

Select Model
Select Model
Select Model
Outperform 80 (OpenAI - 4o)
Rating:80Outperform
Price Target:
$79.00
â–²(14.91% Upside)
Interactive Brokers' strong financial performance and positive earnings call sentiment are the primary drivers of its high score. The company's robust growth in client accounts and trading volumes, along with strategic product expansions, contribute significantly to its positive outlook. However, the high P/E ratio suggests potential overvaluation, which slightly tempers the overall score.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand for IBKR's services, enhancing its market position and supporting long-term expansion.
Client Growth
Significant client growth expands IBKR's user base, driving future revenue and solidifying its competitive advantage in the brokerage industry.
Cash Flow Generation
Strong cash flow generation enhances IBKR's financial flexibility, enabling strategic investments and sustaining operational stability.
Negative Factors
Cryptocurrency Market Share
Limited market share in the growing cryptocurrency sector may constrain IBKR's growth opportunities and competitive positioning in this emerging market.
Execution Cost Differences
Higher execution costs during overnight trading could impact profitability and deter clients, affecting IBKR's competitive edge in global markets.
S&P 400 Replacement
Removal from the S&P 400 may reduce visibility and attractiveness to index-focused investors, potentially impacting stock liquidity and investor perception.

Interactive Brokers (IBKR) vs. SPDR S&P 500 ETF (SPY)

Interactive Brokers Business Overview & Revenue Model

Company DescriptionInteractive Brokers Group, Inc. operates as an automated electronic broker in the United States and internationally. The company engages in the execution, clearance, and settlement of trades in stocks, options, futures, foreign exchange instruments, bonds, mutual funds, exchange traded funds (ETFs), precious metals, and cryptocurrencies. It also offers custody and service accounts for hedge and mutual funds, ETFs, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors. In addition, the company provides custody, prime brokerage, securities, and margin lending services. It serves institutional and individual customers through electronic exchanges and market centers. Interactive Brokers Group, Inc. was founded in 1977 and is headquartered in Greenwich, Connecticut.
How the Company Makes MoneyInteractive Brokers generates revenue through several key streams, primarily focusing on commissions and fees from trading activities. The company charges clients a small commission for each trade executed on its platform, which varies based on the type of security and the client's trading volume. Additionally, IBKR earns interest income from its clients' margin loans, utilizing the funds that clients borrow to trade on margin. The company's revenue model also includes custodial fees and payment for order flow, where it receives compensation for directing orders to specific market makers. Significant partnerships with financial institutions and market makers further enhance IBKR's revenue potential, allowing the company to leverage its technology and trading volume to optimize earnings.

Interactive Brokers Key Performance Indicators (KPIs)

Any
Any
Total Customer Accounts
Total Customer Accounts
Tracks the total number of customer accounts, indicating the company’s market reach and growth in user base, which can drive future revenue.
Chart InsightsInteractive Brokers has experienced a robust and consistent increase in total customer accounts since 2019, with growth accelerating notably from 2023 onwards. This trend suggests strong market positioning and effective customer acquisition strategies. The absence of recent earnings call insights leaves the underlying drivers open to interpretation, but the sustained growth trajectory indicates potential for continued expansion and market share gains in the competitive brokerage industry.
Data provided by:Main Street Data

Interactive Brokers Earnings Call Summary

Earnings Call Date:Oct 16, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Jan 20, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in accounts, revenue, and trading volumes, driven by a robust increase in client equity and successful product expansions. Despite challenges in China and a decline in futures volumes, the overall financial performance and strategic expansions in crypto and global offerings indicate a strong positive outlook.
Q3-2025 Updates
Positive Updates
Strong Account Growth and Milestones
Interactive Brokers added their four millionth customer and reached $150 billion in client cash balances, both up over 30% from last year. Client equity surpassed $750 billion, up 40% from last year.
Record-Breaking Revenue and Trading Volumes
Commissions rose to a record $537 million, 23% above last year's third quarter. Options volume rose 27% and equity volumes were up 67% from last year. Total net revenues were up 21%.
Significant Growth in Crypto and New Products
Crypto trade volumes rose 87% from last quarter and over five times versus last year. Forecast contract volumes grew 165% in the second quarter. Overnight trading volumes were up 90% from 2024.
Expansion of Global Offerings and Partnerships
Introduced new tax-advantaged accounts in Japan and Sweden. Added new liquidity providers for options and U.S. stocks. Continued demand for global introducing broker offering.
Recognition and Rankings
Interactive Brokers rose to rank number four for the number of hedge funds serviced, ahead of many historically better-known names in the funds industry.
Negative Updates
Challenges in China
Chinese regulators clamped down on foreign brokers acquiring accounts in Mainland China, leading to a reduced number of new accounts from the region.
Decline in Futures Volumes
Futures volumes declined 7% in an environment of weaker industry activity.
Lower Risk Exposure Fees
Other fees and services were down 8% from the prior year, driven by more cautious risk-taking by clients, leading to lower risk exposure fees.
Company Guidance
During the third quarter of 2025, Interactive Brokers Group reported significant growth and positive market sentiment, as highlighted in their earnings call. The company observed a 30% increase in client cash balances, reaching $150 billion, and a remarkable 40% rise in client equity to $750 billion. Net new accounts reached 790,000, surpassing the previous year's total, contributing to increased trading activity, specifically in stocks and options. Commission revenue rose by 23%, while net interest income and total net revenues both grew by 21%. Options contract volumes reached a record 418 million, with equities up 67%. The firm also experienced a surge in crypto trade volumes, up 87% quarter-over-quarter. Interactive Brokers introduced new features, such as recurring buy orders for cryptocurrency and expanded their offerings in forecast contracts and overnight trading hours. The company maintained a strong pretax margin of 79% and reported a 22% increase in firm equity, ending with $19.5 billion. These developments reflect the firm's strategic focus on expanding its global client base and product offerings while maintaining cost efficiency.

Interactive Brokers Financial Statement Overview

Summary
Interactive Brokers exhibits a strong financial position with robust revenue growth, high profitability margins, and efficient cash flow generation. The low leverage and solid return on equity further enhance its financial stability. While the equity ratio suggests a high asset base, the overall financial health is commendable, positioning the company well for future growth.
Income Statement
85
Very Positive
Interactive Brokers has demonstrated strong revenue growth with a TTM revenue growth rate of 1.77%, indicating a positive trajectory. The company maintains high profitability margins, with a gross profit margin of 88.87% and an EBIT margin of 85.76% in the TTM period. The net profit margin is also healthy at 8.73%. These metrics reflect robust operational efficiency and profitability.
Balance Sheet
78
Positive
The balance sheet is strong with a very low debt-to-equity ratio of 0.0017 in the TTM period, indicating minimal leverage and financial risk. The return on equity is solid at 18.88%, showcasing effective use of equity to generate profits. However, the equity ratio is relatively low, suggesting a high asset base compared to equity.
Cash Flow
82
Very Positive
The cash flow statement shows impressive free cash flow growth of 57.62% in the TTM period, highlighting strong cash generation capabilities. The free cash flow to net income ratio is nearly 1, indicating efficient conversion of net income to cash. The operating cash flow to net income ratio is lower, suggesting room for improvement in operational cash efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.60B9.32B7.79B4.19B2.94B2.42B
Gross Profit8.53B8.29B6.87B3.41B2.31B1.80B
EBITDA8.33B7.99B6.60B3.11B2.09B1.59B
Net Income838.00M755.00M600.00M380.00M308.00M195.00M
Balance Sheet
Total Assets181.47B150.14B128.25B115.14B109.11B95.68B
Cash, Cash Equivalents and Short-Term Investments4.69B3.63B3.75B3.44B2.40B4.29B
Total Debt21.24B16.26B11.36B8.96B11.80B9.96B
Total Liabilities162.96B133.54B114.18B103.53B98.89B86.68B
Stockholders Equity4.83B4.28B3.58B2.85B2.40B1.95B
Cash Flow
Free Cash Flow15.09B8.68B4.50B3.90B5.82B8.02B
Operating Cash Flow15.14B8.72B4.54B3.97B5.90B8.07B
Investing Cash Flow-85.00M-44.00M-52.00M-67.00M-188.00M-50.00M
Financing Cash Flow-919.00M-833.00M-624.00M-470.00M-523.00M-229.00M

Interactive Brokers Technical Analysis

Technical Analysis Sentiment
Positive
Last Price68.75
Price Trends
50DMA
65.50
Positive
100DMA
62.00
Positive
200DMA
54.88
Positive
Market Momentum
MACD
0.37
Positive
RSI
54.17
Neutral
STOCH
38.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBKR, the sentiment is Positive. The current price of 68.75 is below the 20-day moving average (MA) of 68.93, above the 50-day MA of 65.50, and above the 200-day MA of 54.88, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 54.17 is Neutral, neither overbought nor oversold. The STOCH value of 38.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IBKR.

Interactive Brokers Risk Analysis

Interactive Brokers disclosed 38 risk factors in its most recent earnings report. Interactive Brokers reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Interactive Brokers Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$30.61B33.1119.82%0.73%12.42%28.96%
75
Outperform
$26.23B42.769.51%0.41%27.97%28.39%
74
Outperform
$261.58B16.8215.15%2.30%7.20%48.18%
71
Outperform
$237.30B15.9213.60%1.66%-0.82%44.49%
70
Outperform
$171.39B22.1317.04%1.12%5.90%66.60%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
65
Neutral
$27.22B23.2729.46%0.35%29.23%13.45%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IBKR
Interactive Brokers
69.49
31.94
85.06%
LPLA
LPL Financial
340.25
76.88
29.19%
MS
Morgan Stanley
166.02
50.34
43.52%
SCHW
Charles Schwab
94.42
23.29
32.74%
GS
Goldman Sachs Group
783.88
270.77
52.77%
TW
Tradeweb Markets
110.95
-19.86
-15.18%

Interactive Brokers Corporate Events

Interactive Brokers Reports Strong Growth Amid Challenges
Oct 18, 2025

Interactive Brokers Group’s recent earnings call painted a picture of robust growth and strategic expansion, despite facing some regional challenges. The overall sentiment was positive, driven by significant increases in client equity, revenue, and trading volumes, alongside successful product expansions. While there were hurdles in China and a decline in futures volumes, the company’s strong financial performance and strategic moves in the crypto and global markets suggest a promising outlook.

Interactive Brokers Reports Strong Q3 2025 Earnings
Oct 17, 2025

Interactive Brokers Group, Inc. is a global electronic brokerage firm that provides automated trade execution and custody of securities, commodities, and foreign exchange across more than 160 markets worldwide. The company is renowned for its advanced technology platform and competitive pricing.

Delistings and Listing ChangesRegulatory Filings and Compliance
Interactive Brokers Removes Shares from SEC Registration
Neutral
Jul 30, 2025

On July 30, 2025, Interactive Brokers Group, Inc. announced the removal of 3,836,000 shares of its common stock from its shelf Registration Statement filed with the SEC. This action, supported by a legal opinion from Dechert LLP, may impact the company’s stock availability and market strategy.

The most recent analyst rating on (IBKR) stock is a Buy with a $41.25 price target. To see the full list of analyst forecasts on Interactive Brokers stock, see the IBKR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 17, 2025