Increased trading volumes and a steady rise in customer
accounts helped Interactive Brokers start 2025 in a strong position. The online
brokerage reported sharply higher profits and revenues in the first quarter,
lifted by gains in both interest income and trading commissions.
Earnings Beat and Revenue Climb
Adjusted EPS came in at $1.88. Net revenues rose 19%
year-over-year to $1.43 billion on a GAAP basis and $1.40 billion when
adjusted. The pretax profit margin improved slightly to 74%.
The performance was driven by a surge in customer trading.
Commission revenue climbed 36% to $514 million, supported by a 47% rise in
stock trading volume, a 25% increase in options, and a 16% growth in futures.
Net interest income grew 3% to $770 million, buoyed by
higher average balances on customer margin loans and credit accounts.
Execution, clearing, and distribution fees rose 20% as regulatory costs and
client activity increased.
Customer account numbers jumped 32% year-over-year to 3.62
million. Total daily average revenue trades (DARTs) hit 3.52 million, marking a
50% rise. Meanwhile, customer equity expanded 23% to $573.5 billion, with
credit balances up 19% and margin loan balances increasing by 24%.
The company’s general and administrative expenses grew 24%
to $62 million, largely due to an $8 million increase in advertising spend.
Despite higher costs, profit margins held firm.
To make shares more accessible, Interactive Brokers
announced a four-for-one forward stock split. Shareholders of record at market
close on June 16, 2025, will receive three additional shares for each share
held.
Client Metrics Show Strong Growth
The new shares will be distributed after market close on
June 17, and trading will begin on a split-adjusted basis on June 18. In response, the firm declared a four-for-one stock split
and raised its dividend to reward shareholders. Interactive Brokers reported
GAAP diluted earnings per share of $1.94 for the first quarter, up from $1.61 a
year earlier.
The board also approved a quarterly dividend increase from
$0.25 to $0.32 per share, payable on June 13 to shareholders of record on May
30. Interactive Brokers also benefited from its currency
diversification strategy. The firm bases its net worth on a basket of 10 major
currencies, known as GLOBALs.
A 0.75% appreciation in the GLOBAL against the U.S. dollar
added $127 million to comprehensive earnings this quarter. This included a $20
million gain in other income and $107 million in other comprehensive income.
Increased trading volumes and a steady rise in customer
accounts helped Interactive Brokers start 2025 in a strong position. The online
brokerage reported sharply higher profits and revenues in the first quarter,
lifted by gains in both interest income and trading commissions.
Earnings Beat and Revenue Climb
Adjusted EPS came in at $1.88. Net revenues rose 19%
year-over-year to $1.43 billion on a GAAP basis and $1.40 billion when
adjusted. The pretax profit margin improved slightly to 74%.
The performance was driven by a surge in customer trading.
Commission revenue climbed 36% to $514 million, supported by a 47% rise in
stock trading volume, a 25% increase in options, and a 16% growth in futures.
Net interest income grew 3% to $770 million, buoyed by
higher average balances on customer margin loans and credit accounts.
Execution, clearing, and distribution fees rose 20% as regulatory costs and
client activity increased.
Customer account numbers jumped 32% year-over-year to 3.62
million. Total daily average revenue trades (DARTs) hit 3.52 million, marking a
50% rise. Meanwhile, customer equity expanded 23% to $573.5 billion, with
credit balances up 19% and margin loan balances increasing by 24%.
The company’s general and administrative expenses grew 24%
to $62 million, largely due to an $8 million increase in advertising spend.
Despite higher costs, profit margins held firm.
To make shares more accessible, Interactive Brokers
announced a four-for-one forward stock split. Shareholders of record at market
close on June 16, 2025, will receive three additional shares for each share
held.
Client Metrics Show Strong Growth
The new shares will be distributed after market close on
June 17, and trading will begin on a split-adjusted basis on June 18. In response, the firm declared a four-for-one stock split
and raised its dividend to reward shareholders. Interactive Brokers reported
GAAP diluted earnings per share of $1.94 for the first quarter, up from $1.61 a
year earlier.
The board also approved a quarterly dividend increase from
$0.25 to $0.32 per share, payable on June 13 to shareholders of record on May
30. Interactive Brokers also benefited from its currency
diversification strategy. The firm bases its net worth on a basket of 10 major
currencies, known as GLOBALs.
A 0.75% appreciation in the GLOBAL against the U.S. dollar
added $127 million to comprehensive earnings this quarter. This included a $20
million gain in other income and $107 million in other comprehensive income.
