Interactive Brokers delivered third-quarter results that exceeded Wall Street’s revenue and profit expectations, but the market responded negatively. Management highlighted that strong net new account growth, particularly from international clients, and increased trading activity in stocks and options fueled the quarter’s performance. CEO Milan Galik emphasized the “organic account growth” and noted that the company surpassed four million customers and $750 billion in client equity, up 40% year over year. The company also noted robust gains in commission revenue and net interest income driven by higher client balances and securities lending. However, management acknowledged that lower revenues from risk exposure fees, reflecting more cautious client behavior, were a modest offset.
Is now the time to buy IBKR? Find out in our full research report (it’s free for active Edge members).
Interactive Brokers (IBKR) Q3 CY2025 Highlights:
- Revenue: $1.66 billion vs analyst estimates of $1.53 billion (21.2% year-on-year growth, 8.1% beat)
- Adjusted EPS: $0.57 vs analyst estimates of $0.54 (6.1% beat)
- Adjusted EBITDA: $1.34 billion vs analyst estimates of $1.15 billion (80.7% margin, 16.2% beat)
- Operating Margin: 79%, up from 64.8% in the same quarter last year
- Market Capitalization: $28.84 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Interactive Brokers’s Q3 Earnings Call
- Brennan Hawken (BMO): Asked about the impact of increased capital markets activity on securities lending. CFO Paul Brody explained that while hard-to-borrow specials are driven by IPOs and M&A, volumes are not fully predictable but benefit from platform investments.
- Benjamin Budish (Barclays): Inquired about rising sensitivity to non-U.S. dollar balances and forecast contracts. Brody attributed higher sensitivity to overall business growth and noted ongoing focus on election and economic contracts rather than sports.
- Patrick Moley (Piper Sandler): Asked about the strategy for growing forecast contracts and margin loan growth. Chairman Thomas Peterffy emphasized partner broker additions and growing customer participation, noting margin loan growth was broad-based and tied to increased risk appetite.
- Dan Fannon (Jefferies): Questioned the mix of new accounts and expense outlook for 2026. Peterffy and CEO Milan Galik confirmed growth is balanced across geographies and client types, and expense planning remains flexible based on business needs.
- James Yaro (Goldman Sachs): Sought updates on China client trends and crypto expansion. Peterffy described limited impact from Chinese regulation and detailed upcoming crypto product launches, including stablecoin funding and staking.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be watching (1) the pace of new account growth and client engagement across international markets, (2) rollout and adoption of new crypto services—particularly in Europe and through asset transfers, and (3) the effect of potential interest rate cuts on net interest income and overall profitability. Developments in regulatory environments, especially in China and for emerging products, will also be important to track.
Interactive Brokers currently trades at $64.65, down from $68.51 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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