Live Updates: Interactive Brokers (Nasdaq: IBKR) Earnings After the Bell
Key Points
- Interactive Brokers reports earnings after the bell.
- The company’s shares have risen more than 30% for the year thanks in large part due to significant account growth.
- Updates will automatically push to this page if you leave it open in your browser.
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Stock up 4.5% heading into conference call
Enthusiasm persists after the market received earnings numbers and now its time to listen to the conference call and try to discern guidance for the remainder of 2025.
How Has IBKR Stock Performed After Earnings
How has Interactive Brokers stock performed recently after earnings? Lets take a look at how performance dictated where the share price went in the days following earnings.
| Quarter | EPS Surprise | 1-Day Move | 7-Day Move | 14-Day Move |
|---|---|---|---|---|
| Q2 2024 | +1.20% | −1.06% | −4.91% | −12.86% |
| Q3 2024 | −3.77% | −3.01% | −2.06% | +1.72% |
| Q4 2024 | +9.37% | +1.43% | −0.09% | +6.19% |
| Q1 2025 | −2.73% | −8.74% | −2.15% | +3.08% |
Wall Street Price Targets
Headed into earnings, Interactive Brokers is trading near current Wall Street price targets. The street currently has a mean price target of $61.89 and a median of $65.
Interactive Brokers received a downgrade from Citi in early June that cited valuation concerns.
Q1 Highlights
As we prepare for the release of Interactive Broker’s Q2 earnings, let’s look at some highlights from their first quarter:
(Keep in mind when looking at the company’s EPS that Interactive Brokers announced a four-for-one stock split after its last quarterly report)
IBKR | Interactive Brokers Group Q1’25 Earnings Highlights:
- Adj. EPS: $1.88 ✅; UP +14.6% YoY
- Revenue: $1.427B (Est. $1.396B) ✅; UP +18.7% YoY
- Adj. Gross Margin: 73% ✅; UP +100 bps YoY
- Net Income: $213M ✅; UP +21.7% YoY
Outlook:
- Revenue: $1.5B ±5% (Est. $1.5B) ✅
- The outlook reflects continued strong customer trading volumes and increased interest income driven by higher margin loans.
- Management expects ongoing growth in commission revenue as market conditions remain favorable.
Q1 Segment Performance:
- Commission Revenue: $514M ✅; UP +36% YoY
- Net Interest Income: $770M ✅; UP +3% YoY
- Other Fees and Services: $78M ✅; UP +32% YoY
- Execution, Clearing and Distribution Fees: $121M ✅; UP +20% YoY
Other Key Q1 Metrics:
- Adj. Operating Income: $1.024B ✅; UP +17.9% YoY
- Adj. Operating Expenses: $372M ✅; UP +10.4% YoY
- Free Cash Flow: $964M; UP +21.2% YoY
- Effective Tax Rate: 8.6% (vs. 8.2% YoY)
- Total Equity: $17.5B
- Customer Accounts: 3.62M; UP +32% YoY
- Customer Equity: $573.5B; UP +23% YoY
- Total DARTs: 3.52M; UP +50% YoY
- Customer Margin Loans: $63.7B; UP +24% YoY
CEO Commentary:
- Thomas Peterffy: “Our strong performance this quarter is a testament to our commitment to providing the best trading experience for our customers. The increase in trading volumes and customer accounts reflects the trust our clients place in us.”
CFO Commentary:
- Paul Brody: “We are pleased to report solid growth in both revenues and net income. Our focus on cost management and operational efficiency has allowed us to maintain strong margins while investing in our platform.”
Strategic Updates:
- The Board of Directors declared an increase in the quarterly cash dividend from $0.25 per share to $0.32 per share, reflecting confidence in the company’s financial health and future growth prospects.
- A four-for-one forward stock split was announced to enhance stock liquidity and accessibility for investors.
Interactive Brokers (Nasdaq: IBKR) reports shortly after the market closes and we’ll be providing live earnings analysis in this article. Simply leave this page open and new updates will push once their earnings hit the wires.
This is a particuarly important earnings for Interactive Brokers as their shares have been furiously rallying out of the April market lows. Interactive Brokers traded for little more than $36 per share at market close on April 7th, and closed yesterday at $59.63.
Overall, shares are up 31% this year. While that figure trails Interactive Brokers’ more ‘YOLO’ peer Robinhood (Nasdaq: HOOD), it does slightly outpace Charles Schwab‘s 25% year-to-date returns.
What to Expect When Interactive Brokers Reports Tonight
Here’s the key figures that Wall Street expects from Interactive Brokers tonight:
- Revenue: $1.40 billion
- EPS (Normalized): $.47
- EPS (GAAP): $.48
And full-year estimates are currently set at
- 2025 Revenue: $5.61 billion
- 2025 EPS (Normalized): $1.82
Key Themes Wall Street Will Be Watching For
Of course, beyond the headline revenue and EPS figures, Wall Street will be watching
- Can Account Growth Continue: Interactive Brokers has been riding a way of international account growth that helped propel total accounts to 32% growth last quarter. With stocks rising from a low point at the beginning of last quarter to closing near record highs by the end of June, will the company post another quarter of scorching account growth?
- Trends Beginning of the Quarter vs. Late in Quarter: Margin balances fell in Q1, but the quarter also experienced a large sell-off in most risk assets near its close. How did trends shift from the beginning of the quarter to the end?
- Updates on Growth Markets: Interactive Brokers is pursuing new markets such as their crypto suite, ForecastEX event contracts, and overnight trading. Any commentary on how those products are impacting organic growth will be closely monitored.
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