Interactive Brokers (IBKR)
NASDAQ:IBKR
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Interactive Brokers
(NASDAQ:IBKR)
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Rating:75Outperform
Price Target:
$72.00
▲(1.11% Upside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by strong financial performance (revenue scale-up, improving margins, and exceptional cash generation) and a constructive earnings call highlighting record results and accelerating client growth. This is tempered by a higher valuation (P/E ~32 with a low yield) and only neutral-to-mixed technicals (near-term weakness versus the 20-day average despite a longer-term uptrend).
Positive Factors
Cash generation
Interactive Brokers generates very large and recurring operating and free cash flow that closely tracks net income, giving durable internal funding for product investment, buybacks or capital buffers. Strong cash conversion supports long‑term financial flexibility and reinvestment even through cycles.
Negative Factors
Revenue growth moderation
Recent deceleration in revenue growth reduces headroom for sustained margin expansion and makes earnings more reliant on non‑operational levers. If trading activity and balances slow, incremental profit leverage may weaken, constraining durable EPS growth over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Interactive Brokers generates very large and recurring operating and free cash flow that closely tracks net income, giving durable internal funding for product investment, buybacks or capital buffers. Strong cash conversion supports long‑term financial flexibility and reinvestment even through cycles.
Read all positive factors
Interactive Brokers (IBKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.73B
Dividend Yield0.46%
Average Volume (3M)4.69M
Price to Earnings (P/E)29.1
Beta (1Y)1.54
Revenue Growth11.88%
EPS Growth28.96%
CountryUS
Employees3,027
SectorFinancial
Sector Strength70
IndustryInvestment - Banking & Investment Services
Share Statistics
EPS (TTM)0.65
Shares Outstanding445,616,500
10 Day Avg. Volume3,771,257
30 Day Avg. Volume4,687,770
Financial Highlights & Ratios
PEG Ratio1.06
Price to Book (P/B)5.34
Price to Sales (P/S)2.80
P/FCF Ratio1.82
Enterprise Value/Market Cap3.72
Enterprise Value/Revenue11.54
Enterprise Value/Gross Profit12.86
Enterprise Value/Ebitda13.00
Forecast
1Y Price Target
$82.00Price Target Upside15.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)2.48
Revenue Forecast (FY)$6.86B
Interactive Brokers Business Overview & Revenue Model
Company Description
Interactive 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 instrument...
How the Company Makes Money
IBKR primarily earns revenue from a diversified set of brokerage and market-related activities tied to client trading and client balances. Key revenue streams include: (1) Commissions and transaction-based fees: IBKR charges clients for executing ...
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 Earnings Call Summary
Earnings Call Date:Jan 20, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 21, 2026
Earnings Call Sentiment Positive
The call highlighted multiple strong operational and financial outcomes: record annual net revenues (> $6B), sustained quarterly adjusted pretax income above $1B, double-digit growth across commissions, net interest income and trading volumes, rapid client and assets growth (+1M accounts, client equity +37%), and meaningful platform and product expansion (AI features, new markets, ForecastX momentum). Lowlights included a non-core currency diversification loss, lower commission per order due to mix and regulatory fee changes, regulatory uncertainty for prediction markets, modest crypto traction, sensitivity to future rate cuts (25 bp scenario impacts), and ongoing advertising-driven expense increases. Overall, the positives — magnitude of revenue and volume growth, strong margins, client outperformance, and balance sheet strength — materially outweigh the identified challenges.Positive Updates
Record Annual and Quarterly Financials
Full-year net revenues exceeded $6.0 billion for the first time; quarterly adjusted pretax income surpassed $1 billion for the fifth consecutive quarter. Pretax margin matched the third-quarter record of 79% and achieved a record 77% for the year.
Negative Updates
Non-Core Loss in Currency Diversification Program
Other income was $10 million reported (and $37 million adjusted), driven primarily by a loss in the currency diversification program, which reduced non-core income for the quarter.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual and Quarterly Financials
Full-year net revenues exceeded $6.0 billion for the first time; quarterly adjusted pretax income surpassed $1 billion for the fifth consecutive quarter. Pretax margin matched the third-quarter record of 79% and achieved a record 77% for the year.
Read all positive updates
Company Guidance
Management's forward-looking guidance was focused and metric-driven: they expect the National Trust Charter bank to be operational by the end of the year if approved, and quantified rate sensitivity—estimating a 25 basis‑point cut in U.S. fed funds would reduce annual net interest income by about $77 million (and a 25 bp reduction across non‑USD benchmarks would cut NII by about $31 million), noting that balance growth would mitigate those impacts; expense growth is expected to remain moderate and roughly in line with recent trends (headcount rose ~6% to 3,182 in 2025, compensation increased ~10%, compensation-to-adjusted-net-revenues was 9% in Q4 and ~10% for the year); account growth should continue ( >1,000,000 net new accounts in 2025), overnight trading and new products are key growth drivers (overnight volume +76% QoQ, +130% YoY; ForecastX traded 286 million pairs in Q4 vs. 15 million in Q3, with >10,000 instruments and 4 quoting members), and geographic/product expansion will continue (new markets in 2025 and further country rollouts planned for 2026), while a European banking license is not urgent (Ireland most likely eventual location).Interactive Brokers Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
88
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.23B | 9.32B | 7.79B | 4.19B | 2.94B |
| Gross Profit | 9.19B | 8.29B | 6.87B | 3.41B | 2.31B |
| EBITDA | 9.09B | 7.99B | 6.60B | 3.11B | 2.09B |
| Net Income | 984.00M | 755.00M | 600.00M | 380.00M | 308.00M |
Balance Sheet | |||||
| Total Assets | 203.24B | 150.14B | 128.25B | 115.14B | 109.11B |
| Cash, Cash Equivalents and Short-Term Investments | 4.96B | 3.63B | 3.75B | 3.44B | 2.40B |
| Total Debt | 19.00M | 16.26B | 11.36B | 8.96B | 11.80B |
| Total Liabilities | 182.77B | 133.54B | 114.18B | 103.53B | 98.89B |
| Stockholders Equity | 5.36B | 4.28B | 3.58B | 2.85B | 2.40B |
Cash Flow | |||||
| Free Cash Flow | 15.74B | 8.68B | 4.50B | 3.90B | 5.82B |
| Operating Cash Flow | 15.81B | 8.72B | 4.54B | 3.97B | 5.90B |
| Investing Cash Flow | -171.00M | -44.00M | -52.00M | -67.00M | -188.00M |
| Financing Cash Flow | -969.00M | -833.00M | -624.00M | -470.00M | -523.00M |
Interactive Brokers Technical Analysis
Positive
71.21
Price Trends
70.57
Positive
68.95
Positive
66.72
Positive
Market Momentum
0.22
Negative
56.30
Neutral
84.10
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 71.21 is above the 20-day moving average (MA) of 67.82, above the 50-day MA of 70.57, and above the 200-day MA of 66.72, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 56.30 is Neutral, neither overbought nor oversold. The STOCH value of 84.10 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $30.86B | 23.89 | 22.99% | 1.06% | 16.74% | 26.74% | |
78 Outperform | $28.66B | 28.21 | 13.10% | 0.45% | 22.17% | 40.13% | |
75 Outperform | $31.73B | 29.11 | 19.88% | 0.46% | 11.88% | 28.96% | |
70 Outperform | $29.20B | 14.06 | 16.94% | 1.26% | 6.45% | 5.85% | |
68 Neutral | $26.49B | 20.06 | 20.10% | 1.14% | ― | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $25.03B | 32.56 | 18.57% | 0.32% | 35.19% | -18.62% |
* Financial Sector Average
IBKR
Interactive Brokers
71.21
28.59
67.09%
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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.