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Interactive Brokers
(NASDAQ:IBKR)
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Rating:70Outperform
Price Target:
$101.00
â–²(10.09% Upside)
Action:Reiterated
Date:07/21/26
The score is driven primarily by strong operating performance and a positive earnings outlook highlighted on the call (record profitability and strong customer/asset growth). This is tempered by balance-sheet risk flagged in the financial statement analysis and a relatively expensive valuation (high P/E with a minimal dividend). Technicals are broadly supportive longer-term but neutral in the near term.
Positive Factors
Exceptional profitability
Sustained ultra-high pre-tax margins (77%, seven consecutive quarters >70%) reflect durable operating leverage from a highly automated platform. This structural efficiency supports reinvestment, product expansion and capital accumulation, underpinning earnings resilience over coming quarters.
Negative Factors
Elevated leverage risk
Large absolute debt and a sharp swing in leverage metrics increase sensitivity to funding and market shocks; elevated indebtedness can pressure liquidity and raise refinancing and interest obligations, constraining strategic optionality if market funding conditions tighten.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional profitability
Sustained ultra-high pre-tax margins (77%, seven consecutive quarters >70%) reflect durable operating leverage from a highly automated platform. This structural efficiency supports reinvestment, product expansion and capital accumulation, underpinning earnings resilience over coming quarters.
Read all positive factors
Interactive Brokers Key Performance Indicators (KPIs)
Any
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.
Tracks the total number of customer accounts, indicating the company’s market reach and growth in user base, which can drive future revenue.
Data provided by:
The Fly
The FlyInteractive Brokers (IBKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.20B
Dividend Yield0.37%
Average Volume (3M)4.37M
Price to Earnings (P/E)34.8
Beta (1Y)1.71
Revenue Growth16.12%
EPS Growth31.49%
CountryUS
Employees3,182
SectorFinancial
Sector Strength70
IndustryInvestment - Banking & Investment Services
Share Statistics
EPS (TTM)2.34
Shares Outstanding445,484,380
10 Day Avg. Volume4,139,349
30 Day Avg. Volume4,365,013
Financial Highlights & Ratios
PEG Ratio1.05
Price to Book (P/B)5.34
Price to Sales (P/S)2.80
P/FCF Ratio1.82
Enterprise Value/Market Cap>-0.01
Enterprise Value/Revenue>-0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$109.38Price Target Upside19.22% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)2.72
Revenue Forecast (FY)$7.49B
Interactive Brokers Business Overview & Revenue Model
Company Description
Interactive Brokers Group, Inc. (IBKR) is a global electronic brokerage and financial technology company serving individual investors, financial advisors, hedge funds, proprietary trading groups, and institutional clients. Through its automated tr...
How the Company Makes Money
IBKR primarily earns revenue from (1) net interest income, (2) commissions and order-related execution/clearing fees, and (3) fees tied to securities lending and other brokerage services.
1) Net interest income (interest on client balances and ma...
Interactive Brokers Earnings Call Summary
Earnings Call Date:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 20, 2026
Earnings Call Sentiment Positive
The call was broadly positive: the company delivered record revenues and pre-tax income, strong margin expansion (77%), significant customer and asset growth (total assets +36% YoY, client equity +40%, DARTs +36%), and meaningful product and geographic expansion (Korea launch, crypto in Europe, AI integrations, prediction markets). Lowlights were manageable: higher interest paid on growing client cash, reinstated SEC fees increasing execution costs, some variability in securities lending and other non-core items, and incremental G&A/marketing spend. The company maintains a strong capital position (no long-term debt, excess capital ~$10.3B) and reiterated disciplined risk management and cautious approach to autonomous AI trading.Positive Updates
Record Revenues and Profitability
Set records across commissions, net interest, total net revenue, and pre-tax income; reported and adjusted pre-tax profit margin was 77%, marking the seventh consecutive quarter above 70%.
Negative Updates
Increased Interest Expense on Customer Cash
Growth in customer cash balances led to higher interest paid on customer cash, partially offsetting net interest income gains.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenues and Profitability
Set records across commissions, net interest, total net revenue, and pre-tax income; reported and adjusted pre-tax profit margin was 77%, marking the seventh consecutive quarter above 70%.
Read all positive updates
Company Guidance
Management guided that the OCC‑conditioned national trust bank charter should be operational by year‑end and reiterated continued scaling while maintaining a low‑cost structure and industry‑leading profitability (pre‑tax margin 77%, seventh consecutive quarter above 70%). They quantified rate sensitivity—a 25 bp move in U.S. Fed funds would change annual net interest income by about $81M (25 bp across non‑USD benchmarks ≈ $38M)—and reported strong underlying metrics that support growth: GAAP net interest income just over $1B (+23% y/y) and NIM‑adjusted NII $1.1B (+28%), commissions +30%, other fees $87M (+40%), estimated securities‑lending net revenue $343M (+37%), total customer DARTs 4.8M/day (+36%), overnight trades 10.9M (vs 3.8M), client equity $930B (+40%), customer uninvested cash $182B (+27%), total assets $247B (+36%), firm equity $22.3B (+20%), new accounts growth (~34% / ~1.3M added over the year), excess capital ≈ $10.3B, headcount 3,265, compensation $182M (10% of adjusted net revenues), execution & clearing costs $142M (including $34M of re‑instated SEC fees), and commission per cleared order $2.64—figures management said underpin ongoing product rollouts (Korea, European crypto, AI Connector) and measured plans for future autonomous trading.Interactive Brokers Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
58
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.62B | 10.23B | 9.32B | 7.79B | 4.19B | 2.94B |
| Gross Profit | 9.75B | 9.19B | 8.29B | 6.87B | 3.41B | 2.31B |
| EBITDA | 9.42B | 9.09B | 7.99B | 6.60B | 3.11B | 2.09B |
| Net Income | 1.04B | 984.00M | 755.00M | 600.00M | 380.00M | 308.00M |
Balance Sheet | ||||||
| Total Assets | 218.75B | 203.24B | 150.14B | 128.25B | 115.14B | 109.11B |
| Cash, Cash Equivalents and Short-Term Investments | 5.08B | 4.96B | 3.63B | 3.75B | 3.44B | 2.40B |
| Total Debt | 12.00M | 19.00M | 16.26B | 11.36B | 8.96B | 11.80B |
| Total Liabilities | 197.49B | 182.77B | 133.54B | 114.18B | 103.53B | 98.89B |
| Stockholders Equity | 5.58B | 5.36B | 4.28B | 3.58B | 2.85B | 2.40B |
Cash Flow | ||||||
| Free Cash Flow | 16.76B | 15.74B | 8.68B | 4.50B | 3.90B | 5.82B |
| Operating Cash Flow | 16.84B | 15.81B | 8.72B | 4.54B | 3.97B | 5.90B |
| Investing Cash Flow | -157.00M | -171.00M | -44.00M | -52.00M | -67.00M | -188.00M |
| Financing Cash Flow | -1.06B | -969.00M | -833.00M | -624.00M | -470.00M | -523.00M |
Interactive Brokers Technical Analysis
Neutral
91.74
Price Trends
90.36
Negative
82.86
Positive
76.01
Positive
Market Momentum
-0.65
Positive
43.63
Neutral
31.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBKR, the sentiment is Neutral. The current price of 91.74 is below the 20-day moving average (MA) of 92.27, above the 50-day MA of 90.36, and above the 200-day MA of 76.01, indicating a neutral trend. The MACD of -0.65 indicates Positive momentum. The RSI at 43.63 is Neutral, neither overbought nor oversold. The STOCH value of 31.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $32.47B | 24.10 | 25.75% | 1.01% | 11.68% | 50.39% | |
78 Outperform | $33.81B | 15.05 | 24.51% | 1.25% | 7.75% | 12.12% | |
78 Outperform | $23.52B | 23.93 | 13.78% | 0.52% | 14.04% | 60.95% | |
77 Outperform | $31.20B | 20.60 | 19.95% | 1.27% | 3.00% | 914.66% | |
70 Outperform | $39.20B | 34.78 | 20.51% | 0.36% | 16.12% | 31.49% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $28.29B | 28.09 | 18.45% | 0.37% | 38.82% | -14.48% |
* Financial Sector Average
IBKR
Interactive Brokers
87.75
24.33
38.37%
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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.