Interactive Brokers (IBKR) AI Stock Analysis

Compare

2,387 Followers

Top Page

Interactive Brokers

(NASDAQ:IBKR)

Select Model

Outperform 75 (OpenAI - 4o)

Rating:75Outperform

Price Target:

$69.00

▼(-1.65% Downside)

Interactive Brokers' strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. The company's robust growth in client accounts and trading volumes, along with strategic product expansions, support a positive outlook. However, technical indicators suggest bearish momentum, and the stock's valuation appears high, which tempers the overall score.

Positive Factors

Revenue Growth

Strong revenue growth through increased commissions and trading volumes indicates robust market demand and effective business operations, supporting long-term financial stability.

Product Expansion

Expanding product offerings in international markets enhances competitive positioning and diversifies revenue streams, contributing to sustainable growth.

Cash Generation

Strong cash generation relative to earnings indicates efficient operations and provides financial flexibility for future investments and debt management.

Negative Factors

High Leverage

High leverage increases financial risk, particularly in a rising interest rate environment, potentially impacting long-term financial stability.

Challenges in China

Regulatory challenges in China may limit growth opportunities in a significant market, affecting future account acquisition and revenue potential.

Decline in Futures Volumes

A decline in futures volumes reflects potential market saturation or competitive pressures, which could impact revenue from this segment.

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

Market Cap

$31.38B

Dividend Yield0.46%

Average Volume (3M)3.37M

Price to Earnings (P/E)33.9

Beta (1Y)1.52

Revenue Growth11.88%

EPS Growth28.96%

CountryUS

Employees3,027

SectorFinancial

Sector Strength70

IndustryInvestment - Banking & Investment Services

Share Statistics

EPS (TTM)0.57

Shares Outstanding445,363,700

10 Day Avg. Volume3,182,424

30 Day Avg. Volume3,367,736

Financial Highlights & Ratios

PEG Ratio1.13

Price to Book (P/B)4.46

Price to Sales (P/S)2.05

P/FCF Ratio2.20

Enterprise Value/Market Cap-0.62

Enterprise Value/Revenue-1.95

Enterprise Value/Gross Profit-2.19

Enterprise Value/Ebitda-2.29

Forecast

1Y Price Target

$81.43

Price Target Upside16.06% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering7

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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. The primary source is commission fees from trading activities, where customers pay for executing trades across various asset classes. Additionally, IBKR earns interest income from margin lending, where clients borrow funds to trade on margin, and from securities lending, where the firm lends out securities to short sellers and earns fees. The company also generates revenue from market data subscriptions and other ancillary services. Significant partnerships with financial institutions and technology providers enhance its service offerings and contribute to its competitive edge in the brokerage industry.

Interactive Brokers Key Performance Indicators (KPIs)

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:

The Fly

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 demonstrates strong financial health with robust revenue and cash flow growth, supported by high profitability margins. While the company effectively uses equity to generate returns, its high leverage poses potential risks. Overall, the financial statements reflect a well-managed company with strong cash generation capabilities, though vigilance on debt levels is advised.

Income Statement

Interactive Brokers shows strong revenue growth with a 4.1% increase in TTM, supported by high gross and EBIT margins of 80.6% and 75.5% respectively. The net profit margin is solid at 9.2%, indicating efficient cost management. However, the slight decline in gross profit margin from previous years suggests rising costs or competitive pressures.

Balance Sheet

The company's balance sheet reflects high leverage with a debt-to-equity ratio of 5.30, which could pose risks if interest rates rise. However, the return on equity is strong at 19.6%, indicating effective use of equity to generate profits. The equity ratio is relatively low, suggesting a reliance on debt financing.

Cash Flow

Cash flow performance is robust with a 5.9% growth in free cash flow and a high operating cash flow to net income ratio of 1514.3, indicating strong cash generation relative to earnings. The free cash flow to net income ratio is nearly 1, showing efficient conversion of income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.99B	9.32B	7.79B	4.19B	2.94B	2.42B
Gross Profit	8.89B	8.29B	6.87B	3.41B	2.31B	1.80B
EBITDA	8.48B	7.99B	6.60B	3.11B	2.09B	1.59B
Net Income	917.00M	755.00M	600.00M	380.00M	308.00M	195.00M
Balance Sheet
Total Assets	200.22B	150.14B	128.25B	115.14B	109.11B	95.68B
Cash, Cash Equivalents and Short-Term Investments	5.13B	3.63B	3.75B	3.44B	2.40B	4.29B
Total Debt	904.00M	16.26B	11.36B	8.96B	11.80B	9.96B
Total Liabilities	180.74B	133.54B	114.18B	103.53B	98.89B	86.68B
Stockholders Equity	5.11B	4.28B	3.58B	2.85B	2.40B	1.95B
Cash Flow
Free Cash Flow	15.98B	8.68B	4.50B	3.90B	5.82B	8.02B
Operating Cash Flow	16.04B	8.72B	4.54B	3.97B	5.90B	8.07B
Investing Cash Flow	-94.00M	-44.00M	-52.00M	-67.00M	-188.00M	-50.00M
Financing Cash Flow	-972.00M	-833.00M	-624.00M	-470.00M	-523.00M	-229.00M

Interactive Brokers Technical Analysis

Technical Analysis Sentiment

Positive

Last Price70.16

Price Trends

50DMA

66.50

Positive

100DMA

66.02

Positive

200DMA

58.98

Positive

Market Momentum

MACD

1.37

Negative

RSI

60.14

Neutral

STOCH

82.80

Negative

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 70.16 is above the 20-day moving average (MA) of 66.21, above the 50-day MA of 66.50, and above the 200-day MA of 58.98, indicating a bullish trend. The MACD of 1.37 indicates Negative momentum. The RSI at 60.14 is Neutral, neither overbought nor oversold. The STOCH value of 82.80 is Negative, 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
RJF	76 Outperform	$33.12B	16.29	17.64%	1.26%	6.45%	5.85%
CBOE	75 Outperform	$27.31B	28.01	21.51%	1.06%	16.74%	26.74%
IBKR	75 Outperform	$31.38B	33.95	19.82%	0.46%	11.88%	28.96%
WTW	74 Outperform	$31.90B	15.76	27.79%	1.14%	―	―
TW	73 Outperform	$24.59B	35.47	10.51%	0.45%	22.17%	40.13%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LPLA	63 Neutral	$29.00B	33.11	21.32%	0.32%	35.19%	-18.62%

* Financial Sector Average

Performance Comparison

IBKR

Interactive Brokers

70.16

24.59

53.96%

CBOE

Cboe Global Markets

260.54

70.06

36.78%

LPLA

LPL Financial

362.36

36.34

11.15%

RJF

Raymond James Financial

168.38

16.18

10.63%

WTW

Willis Towers Watson

333.14

24.50

7.94%

Tradeweb Markets

103.98

-25.51

-19.70%

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: Nov 21, 2025