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IBKR posted a Q2 adjusted EPS of $1.51, up 15.9% y/y and beating the Zacks Consensus Estimate of $1.46.
Net revenues rose 20.3% y/y to $1.48B, driven by customer growth and higher DARTs.
Non-interest expenses climbed 7.4% y/y, led by rising fees, compensation and administrative costs.
Shares of Interactive Brokers Group (IBKR - Free Report) gained 4.8% in the after-market hours on better-than-expected quarterly results. Its second-quarter 2025 adjusted earnings per share of $1.51 surpassed the Zacks Consensus Estimate of $1.46. The bottom line indicates a rise of 15.9% from the prior-year quarter.
Results were primarily aided by an increase in revenues. Growth in customer accounts and a rise in daily average revenue trades (DARTs) acted as other tailwinds. However, higher expenses were the undermining factor.
After considering non-recurring items, net income available to common shareholders (GAAP basis) was $224 million or 51 cents per share, up from $179 million or 41 cents per share in the prior-year quarter. Our estimate for net income was $197.4 million.
Interactive Brokers reported comprehensive income available to common shareholders of $303 million or 69 cents per share compared with $177 million or 41 cents per share in the prior-year quarter.
IBKR’s Revenues Improve, Expenses Rise
Total GAAP net revenues for the quarter were $1.48 billion, up 20.3% year over year. Adjusted net revenues were also $1.48 billion, up 14.7%. The Zacks Consensus Estimate for the top line was $1.36 billion.
Total non-interest expenses increased 7.4% year over year to $376 million. This rise was primarily due to an increase in execution, clearing and distribution fees, employee compensation and benefits charges, communications expenses, and general and administrative costs. Our estimate for non-interest expenses was pegged at $365.3 million.
Income before income taxes was $1.10 billion, up 25.5% year over year.
The adjusted pre-tax profit margin was 75%, up from 73% a year ago.
In the reported quarter, total customer DARTs jumped 49% year over year to 3.55 million. Our estimate for the metric was 3.33 million.
Customer accounts grew 32% from the year-ago quarter to 3,866,000. Our prediction for customer accounts was 3,599,000.
Strong Capital Position of Interactive Brokers
As of June 30, 2025, cash and cash equivalents (including cash and securities set aside for regulatory purposes) totaled $86.7 billion compared with $68.1 billion as of Dec. 31, 2024.
As of June 30, 2025, total assets were $181.5 billion compared with $150.1 billion as of Dec. 31, 2024. Total equity was $18.5 billion, up from $16.6 billion as of Dec. 31, 2024.
Our View on IBKR
Interactive Brokers' efforts to develop proprietary software and an increase in emerging market customers are expected to keep aiding financials. Relatively higher interest rates will likely aid revenue growth in the near term. However, rising expenses and high exposure to geopolitical risks overseas are headwinds.
Interactive Brokers Group, Inc. Price, Consensus and EPS Surprise
Here are some of IBKR’s peers that are yet to come out with quarterly numbers. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Robinhood Markets (HOOD - Free Report) is slated to announce quarterly numbers on July 30.
In the past week, the Zacks Consensus Estimate for Robinhood’s quarterly earnings has moved higher to 31 cents, implying a 47.6% jump from the prior-year reported number.
Tradeweb Markets (TW - Free Report) is also slated to announce quarterly numbers on July 30.
In the past week, the Zacks Consensus Estimate for TW’s quarterly earnings has been revised upward to 86 cents, indicating a 22.9% rise from the prior-year reported number.
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IBKR Stock Gains on Q2 Earnings Beat, Revenues & Expenses Rise Y/Y
Key Takeaways
Shares of Interactive Brokers Group (IBKR - Free Report) gained 4.8% in the after-market hours on better-than-expected quarterly results. Its second-quarter 2025 adjusted earnings per share of $1.51 surpassed the Zacks Consensus Estimate of $1.46. The bottom line indicates a rise of 15.9% from the prior-year quarter.
Results were primarily aided by an increase in revenues. Growth in customer accounts and a rise in daily average revenue trades (DARTs) acted as other tailwinds. However, higher expenses were the undermining factor.
After considering non-recurring items, net income available to common shareholders (GAAP basis) was $224 million or 51 cents per share, up from $179 million or 41 cents per share in the prior-year quarter. Our estimate for net income was $197.4 million.
Interactive Brokers reported comprehensive income available to common shareholders of $303 million or 69 cents per share compared with $177 million or 41 cents per share in the prior-year quarter.
IBKR’s Revenues Improve, Expenses Rise
Total GAAP net revenues for the quarter were $1.48 billion, up 20.3% year over year. Adjusted net revenues were also $1.48 billion, up 14.7%. The Zacks Consensus Estimate for the top line was $1.36 billion.
Total non-interest expenses increased 7.4% year over year to $376 million. This rise was primarily due to an increase in execution, clearing and distribution fees, employee compensation and benefits charges, communications expenses, and general and administrative costs. Our estimate for non-interest expenses was pegged at $365.3 million.
Income before income taxes was $1.10 billion, up 25.5% year over year.
The adjusted pre-tax profit margin was 75%, up from 73% a year ago.
In the reported quarter, total customer DARTs jumped 49% year over year to 3.55 million. Our estimate for the metric was 3.33 million.
Customer accounts grew 32% from the year-ago quarter to 3,866,000. Our prediction for customer accounts was 3,599,000.
Strong Capital Position of Interactive Brokers
As of June 30, 2025, cash and cash equivalents (including cash and securities set aside for regulatory purposes) totaled $86.7 billion compared with $68.1 billion as of Dec. 31, 2024.
As of June 30, 2025, total assets were $181.5 billion compared with $150.1 billion as of Dec. 31, 2024. Total equity was $18.5 billion, up from $16.6 billion as of Dec. 31, 2024.
Our View on IBKR
Interactive Brokers' efforts to develop proprietary software and an increase in emerging market customers are expected to keep aiding financials. Relatively higher interest rates will likely aid revenue growth in the near term. However, rising expenses and high exposure to geopolitical risks overseas are headwinds.
Interactive Brokers Group, Inc. Price, Consensus and EPS Surprise
Interactive Brokers Group, Inc. price-consensus-eps-surprise-chart | Interactive Brokers Group, Inc. Quote
Currently, Interactive Brokers sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings Release Dates of IBKR’s Peers
Here are some of IBKR’s peers that are yet to come out with quarterly numbers. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Robinhood Markets (HOOD - Free Report) is slated to announce quarterly numbers on July 30.
In the past week, the Zacks Consensus Estimate for Robinhood’s quarterly earnings has moved higher to 31 cents, implying a 47.6% jump from the prior-year reported number.
Tradeweb Markets (TW - Free Report) is also slated to announce quarterly numbers on July 30.
In the past week, the Zacks Consensus Estimate for TW’s quarterly earnings has been revised upward to 86 cents, indicating a 22.9% rise from the prior-year reported number.