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Interactive Brokers Group (IBKR)
:IBKR
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Interactive Brokers (IBKR) AI Stock Analysis

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IBKR

Interactive Brokers

(NASDAQ:IBKR)

Rating:80Outperform
Price Target:
$74.00
▲(16.15% Upside)
Interactive Brokers' strong financial performance and positive earnings call sentiment drive its overall score. The stock's bullish momentum is balanced by its high valuation, suggesting potential near-term volatility. While there are challenges in certain areas, the company remains well-positioned for growth.
Positive Factors
Client Interest
International clients are showing strong interest in US assets, benefiting from Interactive Brokers Group's global market presence.
Organic Growth
Interactive Brokers Group is experiencing robust organic growth and has expanded its digital asset offering.
Negative Factors
Revenue Performance
Revenues came in lower than expected driven by lower NII.
Valuation Risk
IBKR is trading near the upper end of the historic valuation range, indicating a balanced risk/reward at current levels.

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

Interactive Brokers Business Overview & Revenue Model

Company DescriptionInteractive Brokers (IBKR) is a leading automated global electronic broker that provides a comprehensive suite of trading and investment services. The company is renowned for its advanced technology and direct market access capabilities, catering to individual investors, financial advisors, and institutional clients. Through its proprietary platform, Interactive Brokers offers a broad range of financial products, including stocks, options, futures, forex, bonds, ETFs, and mutual funds, across various international markets.
How the Company Makes MoneyInteractive Brokers primarily generates revenue through commissions and fees related to its brokerage services. The company charges commissions on trades executed by its clients, with the rates varying based on the financial instrument and market involved. Additionally, IBKR earns interest income from its margin lending services, where clients borrow funds to increase their purchasing power. The company also generates income from net interest on customer cash balances and its securities lending operations. Furthermore, Interactive Brokers benefits from fees associated with its technology and platform services, providing white-label brokerage solutions to other financial institutions. Significant partnerships with global exchanges and financial entities enhance its market reach and contribute to its revenue streams.

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' total customer accounts have shown robust growth, reaching 3.62 million by Q1 2025, driven by a record addition of 279,000 new accounts. This 32% growth rate surpasses previous records, with international expansion playing a key role. Despite market volatility and a decline in margin loans, the company is capitalizing on increased trading volumes and new product offerings, such as Canadian savings accounts and cryptocurrencies. The strategic focus on innovation and expansion, alongside a dividend increase and stock split, underscores a positive outlook amid challenging market conditions.
Data provided by:Main Street Data

Interactive Brokers Earnings Call Summary

Earnings Call Date:Jul 18, 2025
(Q2-2025)
|
% Change Since: -0.53%|
Next Earnings Date:Oct 21, 2025
Earnings Call Sentiment Positive
The earnings call depicted a robust financial performance with record-breaking metrics and significant client growth, underpinned by strategic enhancements and product innovations. However, there are challenges in capturing cryptocurrency market share and managing execution costs during overnight trading hours.
Q2-2025 Updates
Positive Updates
Record-Breaking Financial Performance
Quarterly commissions, net interest, total net revenue, and pretax income were all records, with a pretax income reaching over a billion dollars for the third consecutive quarter. The pretax profit margin was an industry-leading 75%.
Significant Client Growth
Added 250,000 net new accounts in the quarter, bringing the year-to-date total to over 528,000. Client equity rose 34% to $604 billion.
Expansion of Trading Capabilities
Overnight trading volumes grew over 170% from Q2 2024 to Q2 2025. Enhanced ATS performance to handle large spikes in volume and made improvements to the smart order router.
Introduction of New Products
Introduced 'Investment Themes' to help clients turn market trends into actionable trading ideas. Expanded into Forecast X contracts on financial markets, forex, and crypto.
Strong International Growth
Significant interest and growth in international markets, particularly with offering US stock trading during overnight hours to cater to European and Asian clients.
Negative Updates
Challenges with Cryptocurrency Market Share
Despite having a lower cost offering, the firm has not captured as much market share in the crypto space as expected. Current infrastructure does not allow for crypto asset transfers.
Execution Cost Differences
There are significant execution cost differences for stocks during overnight hours as compared to regular trading hours.
Company Guidance
During the Interactive Brokers Group Second Quarter 2025 Earnings Call, the company provided guidance that highlighted significant growth metrics. They reported a 27% increase in commission revenue compared to the previous year, reaching a total of $516 million, and noted a 170% growth in overnight trading volumes. The company added 250,000 net new accounts in the quarter, bringing the year-to-date total to over 528,000 accounts. Client credit balances rose 34% to a record $144 billion, while client equity increased 34% to $604 billion. Their pretax income surpassed one billion dollars for the third consecutive quarter, maintaining a pretax profit margin of 75%. The firm continues to enhance its platform capabilities, including a scalable ATS and improvements to their smart order router, which contributed to their competitive advantage in price execution. Additionally, they launched new products like Forecast X and investment themes to enhance client trading experiences, and completed a four-for-one stock split while increasing dividends.

Interactive Brokers Financial Statement Overview

Summary
Interactive Brokers demonstrates strong financial performance with impressive growth in revenue and profitability, efficient cost management, low leverage, and robust cash flow generation. The company is well-positioned within the financial sector, showing both growth potential and financial stability.
Income Statement
90
Very Positive
Interactive Brokers has demonstrated strong growth in revenue and profitability. The TTM data shows a robust gross profit margin of 85.3% and a net profit margin of 12.5%. Revenue growth is impressive at 22.65% year-over-year from 2024 to the TTM. EBIT and EBITDA margins are also strong at 67.2% and 68.7%, respectively, indicating efficient cost management and high profitability. The consistent upward trajectory in revenue and profit margins showcases the company's solid financial performance.
Balance Sheet
85
Very Positive
The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.0027, indicating minimal leverage. The return on equity (ROE) is a robust 17.6%, showcasing effective utilization of shareholders’ funds. The equity ratio stands at 2.9%, which is relatively low, suggesting a higher reliance on liabilities for financing. Despite this, the company's strong equity growth and sufficient liquidity position it well within the industry.
Cash Flow
88
Very Positive
Interactive Brokers exhibits strong cash flow generation, with a significant free cash flow growth rate of 10.34% from 2024 to TTM. The operating cash flow to net income ratio is high at 12.13, indicating excellent cash conversion efficiency. The free cash flow to net income ratio is also robust at 12.07, highlighting the company's ability to generate substantial free cash flow relative to net income. This strength in cash flow supports the company's strategic flexibility and financial health.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue5.42B5.18B4.42B3.17B2.75B2.24B
Gross Profit5.42B5.18B4.42B3.17B2.75B2.24B
EBITDA5.31B4.28B3.67B2.54B2.17B1.76B
Net Income793.00M755.00M600.00M380.00M308.00M195.00M
Balance Sheet
Total Assets157.67B150.14B128.25B115.14B109.11B95.68B
Cash, Cash Equivalents and Short-Term Investments3.50B3.63B3.75B3.44B2.40B4.29B
Total Debt12.00M14.00M11.36B8.96B11.80B9.96B
Total Liabilities140.19B133.54B114.18B103.53B98.89B86.68B
Stockholders Equity4.50B4.28B3.58B2.85B2.40B1.95B
Cash Flow
Free Cash Flow9.57B8.68B4.50B3.90B5.82B8.02B
Operating Cash Flow9.63B8.72B4.54B3.97B5.90B8.07B
Investing Cash Flow-57.00M-44.00M-52.00M-67.00M-188.00M-50.00M
Financing Cash Flow-921.00M-833.00M-624.00M-470.00M-523.00M-229.00M

Interactive Brokers Technical Analysis

Technical Analysis Sentiment
Positive
Last Price63.71
Price Trends
50DMA
56.80
Positive
100DMA
50.34
Positive
200DMA
48.61
Positive
Market Momentum
MACD
2.51
Positive
RSI
59.97
Neutral
STOCH
48.67
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 63.71 is above the 20-day moving average (MA) of 62.49, above the 50-day MA of 56.80, and above the 200-day MA of 48.61, indicating a bullish trend. The MACD of 2.51 indicates Positive momentum. The RSI at 59.97 is Neutral, neither overbought nor oversold. The STOCH value of 48.67 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$28.12B33.3719.15%1.39%12.25%20.76%
77
Outperform
$224.22B16.0214.13%2.69%6.31%45.50%
75
Outperform
$33.23B54.179.51%0.32%27.97%28.39%
74
Outperform
$29.92B25.5829.46%0.32%29.23%13.45%
74
Outperform
$175.23B25.9615.59%1.09%4.64%54.26%
71
Outperform
$218.23B15.8812.78%1.69%3.53%45.85%
66
Neutral
€20.23B11.809.35%5.13%3.81%-11.93%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IBKR
Interactive Brokers
63.71
35.01
121.99%
LPLA
LPL Financial
373.94
176.54
89.43%
MS
Morgan Stanley
140.46
48.57
52.86%
SCHW
Charles Schwab
96.44
34.53
55.77%
GS
Goldman Sachs Group
720.91
245.12
51.52%
TW
Tradeweb Markets
140.54
27.63
24.47%

Interactive Brokers Corporate Events

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: Jul 19, 2025