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IBKR Q4 Earnings Beat as Revenues Grow Y/Y & Expenses Decline

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Key Takeaways

  • IBKR posted Q4 adjusted EPS of 65 cents, beating estimates and rising 27.5% y/y.
  • Interactive Brokers saw higher revenues, lower expenses and strong growth in accounts and DARTs.
  • IBKR's Q4 GAAP net revenues rose 18.5% y/y, while non-interest expenses fell 1.2%.

Interactive Brokers Group’s (IBKR - Free Report)  fourth-quarter 2025 adjusted earnings per share of 65 cents surpassed the Zacks Consensus Estimate of 52 cents. The bottom line reflected a rise of 27.5% from the prior-year quarter.

Results were primarily aided by an increase in revenues and a decline in expenses. Growth in customer accounts and a rise in daily average revenue trades (DARTs) acted as other tailwinds. 

After considering non-recurring items, net income available to common shareholders (GAAP basis) was $284 million or 63 cents per share, up from $217 million or 50 cents per share in the prior-year quarter.

Interactive Brokers reported comprehensive income available to common shareholders of $288 million or 64 cents per share compared with $153 million or 35 cents per share in the prior-year quarter.

Adjusted earnings per share of $2.19 in 2025 surpassed the Zacks Consensus Estimate of $2.10. The bottom line reflected a rise of 24.4% from the previous year. Net income available to common shareholders (GAAP basis) was $984 million or $2.22 per share, up from $755 million or $1.73 per share in 2024.

IBKR’s Revenues Improve, Expenses Decline

Total GAAP net revenues for the quarter were $1.64 billion, up 18.5% year over year. Adjusted net revenues were $1.67 billion, up 17.3%. The Zacks Consensus Estimate for the top line was $1.49 billion.

Total GAAP net revenues in 2025 were $6.21 billion, up 19.7% year over year. Adjusted net revenues were $6.16 billion, up 17.1%. The Zacks Consensus Estimate for the top line was $5.99 billion.

Total quarterly non-interest expenses declined 1.2% year over year to $343 million. The fall was primarily due to a decrease in execution, clearing and distribution fees.

Income before income taxes was $1.30 billion, up 25% year over year.

The adjusted pre-tax profit margin was 79%, up from 76% a year ago.

In the reported quarter, total customer DARTs jumped 29.7% year over year to 4.04 million.

Customer accounts grew 31.8% from the year-ago quarter to 4,399,000.

Interactive Brokers’ Capital Position Strong

As of Dec. 31, 2025, cash and cash equivalents (including cash and securities set aside for regulatory purposes) totaled $81.8 billion compared with $68.1 billion as of Dec. 31, 2024.

As of Dec. 31, 2025, total assets were $203.2 billion compared with $150.1 billion as of Dec. 31, 2024. Total equity was $20.5 billion, up from $16.6 billion as of Dec. 31, 2024.

Our View on IBKR

Interactive Brokers' efforts to develop proprietary software and enhance its emerging market customers and global footprint, along with its product suite expansion, are expected to continue aiding revenues. However, elevated 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 and EPS Surprise

Interactive Brokers Group, Inc. price-consensus-eps-surprise-chart | Interactive Brokers Group, Inc. Quote

Currently, Interactive Brokers carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) 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.

Robinhood Markets (HOOD - Free Report) is slated to announce quarterly numbers on Feb. 10.

In the past week, the Zacks Consensus Estimate for Robinhood’s quarterly earnings has moved 5.2% higher to 61 cents, implying a 13% jump from the prior-year reported number.

Tradeweb Markets (TW - Free Report) is slated to announce fourth-quarter 2025 results on Feb. 5.

In the past week, the Zacks Consensus Estimate for TW’s quarterly earnings has been revised 1.2% upward to 85 cents, indicating an 11.8% rise from the prior-year reported number.


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