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Interactive Brokers saw revenues rise 20% y/y and customer accounts jump 31% with higher DARTs.
IBKR raised its dividend 9.4% as expenses increased and pressured overall results.
Interactive Brokers Group’s (IBKR - Free Report) first-quarter 2026 adjusted earnings per share of 60 cents missed the Zacks Consensus Estimate of 62 cents. However, the bottom line reflected a rise of 27.7% from the prior-year quarter.
Results were primarily hurt by a rise in expenses. However, an increase in revenues, growth in customer accounts and a rise in daily average revenue trades (DARTs) acted as tailwinds.
After considering non-recurring items, net income available to common shareholders (GAAP basis) was $267 million or 59 cents per share, up from $213 million or 48 cents per share in the prior-year quarter.
Interactive Brokers reported comprehensive income available to common shareholders of $246 million or 65 cents per share compared with $241 million or 55 cents per share in the prior-year quarter.
IBKR’s Revenues Improve, Expenses Rise
Adjusted net revenues were $1.68 billion, up 20.3% year over year. Total GAAP net revenues were $1.67 billion, up 17% year over year. The Zacks Consensus Estimate for the top line was $1.71 billion.
Total non-interest expenses increased 2.4% year over year to $381 million. The rise was due to an increase in almost all cost components, except for execution, clearing and distribution fees.
Income before income taxes was $1.29 billion, up 22.1% year over year.
The adjusted pre-tax profit margin was 77%, up from 73% a year ago.
In the reported quarter, total customer DARTs jumped 24% year over year to 4.37 million.
Customer accounts grew 31% from the year-ago quarter to 4,754,000.
Interactive Brokers’ Capital Position Strong
As of March 31, 2026, cash and cash equivalents (including cash and securities set aside for regulatory purposes) totaled $100.4 billion compared with $81.8 billion as of Dec. 31, 2025.
As of March 31, 2026, total assets were $218.7 billion compared with $203.2 billion as of Dec. 31, 2025. Total equity was $21.3 billion, up from $20.5 billion as of Dec. 31, 2025.
Dividend Hike Update
Concurrent with the earnings release, the company’s board of directors announced a quarterly cash dividend of 8.75 cents per share, representing a hike of 9.4% from the prior payout. The dividend will be paid out on June 12 to shareholders of record as of June 1.
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
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 April 28.
In the past week, the Zacks Consensus Estimate for Robinhood’s quarterly earnings has moved 4.7% lower to 41 cents. The figure suggests a 10.8% rise from the prior-year quarter reported number.
Tradeweb Markets (TW - Free Report) is slated to announce first-quarter 2026 results on April 29.
In the past week, the Zacks Consensus Estimate for TW’s quarterly earnings has been revised 1.9% upward to $1.06, indicating a 23.3% rise from the prior-year reported number.
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IBKR Lags on Q1 Earnings as Expenses Rise Y/Y, Announces Dividend Hike
Key Takeaways
Interactive Brokers Group’s (IBKR - Free Report) first-quarter 2026 adjusted earnings per share of 60 cents missed the Zacks Consensus Estimate of 62 cents. However, the bottom line reflected a rise of 27.7% from the prior-year quarter.
Results were primarily hurt by a rise in expenses. However, an increase in revenues, growth in customer accounts and a rise in daily average revenue trades (DARTs) acted as tailwinds.
After considering non-recurring items, net income available to common shareholders (GAAP basis) was $267 million or 59 cents per share, up from $213 million or 48 cents per share in the prior-year quarter.
Interactive Brokers reported comprehensive income available to common shareholders of $246 million or 65 cents per share compared with $241 million or 55 cents per share in the prior-year quarter.
IBKR’s Revenues Improve, Expenses Rise
Adjusted net revenues were $1.68 billion, up 20.3% year over year. Total GAAP net revenues were $1.67 billion, up 17% year over year. The Zacks Consensus Estimate for the top line was $1.71 billion.
Total non-interest expenses increased 2.4% year over year to $381 million. The rise was due to an increase in almost all cost components, except for execution, clearing and distribution fees.
Income before income taxes was $1.29 billion, up 22.1% year over year.
The adjusted pre-tax profit margin was 77%, up from 73% a year ago.
In the reported quarter, total customer DARTs jumped 24% year over year to 4.37 million.
Customer accounts grew 31% from the year-ago quarter to 4,754,000.
Interactive Brokers’ Capital Position Strong
As of March 31, 2026, cash and cash equivalents (including cash and securities set aside for regulatory purposes) totaled $100.4 billion compared with $81.8 billion as of Dec. 31, 2025.
As of March 31, 2026, total assets were $218.7 billion compared with $203.2 billion as of Dec. 31, 2025. Total equity was $21.3 billion, up from $20.5 billion as of Dec. 31, 2025.
Dividend Hike Update
Concurrent with the earnings release, the company’s board of directors announced a quarterly cash dividend of 8.75 cents per share, representing a hike of 9.4% from the prior payout. The dividend will be paid out on June 12 to shareholders of record as of June 1.
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-eps-surprise-chart | Interactive Brokers Group, Inc. Quote
Currently, Interactive Brokers carries a Zacks Rank #3 (Hold). 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 April 28.
In the past week, the Zacks Consensus Estimate for Robinhood’s quarterly earnings has moved 4.7% lower to 41 cents. The figure suggests a 10.8% rise from the prior-year quarter reported number.
Tradeweb Markets (TW - Free Report) is slated to announce first-quarter 2026 results on April 29.
In the past week, the Zacks Consensus Estimate for TW’s quarterly earnings has been revised 1.9% upward to $1.06, indicating a 23.3% rise from the prior-year reported number.