IBKR

The Q3 earnings season continues its rapid pace, with several companies, including Valero Energy VLO, RTX RTX, and Interactive Brokers IBKR delivering record-breaking results while also sporting favorable Zacks Ranks. Valero Energy, one of the largest independent petroleum refiners, delivered a highly positive release, benefiting significantly from the favorable refining environment. Adjusted earnings totaled $23.90 per share, comfortably exceeding the Zacks Consensus EPS estimate of $21.23 and climbing more than 550% YoY. Revenues of roughly $46.1 billion also exceeded the Zacks Consensus estimate of $38.8 billion, reflecting a beat of nearly 19%. VLO posted record quarterly profit, with net income reaching $6.8 billion compared to $1.1 billion in the year-ago period. Refining operating income soared to $8.8 billion from $1.6 billion, reflecting a sizable improvement in margins. Valero also saw record quarterly ethanol production of 4.8 million gallons per day, with its refineries operating at near-record utilization rates. The stock sports a favorable Zacks Rank #1 (Strong Buy), with its earnings outlook benefiting heavily from positive revisions over recent months. Image Source: Zacks Investment Research RTX, a leading aerospace and defense company and current Zacks Rank #2 (Buy), delivered strong quarterly results,with adjusted earnings of $2.26 per share exceeding the Zacks Consensus EPS estimate of $1.78 by nearly 27% and climbing 33% YoY. Revenues of $24.5 billion similarly exceeded the $24.0 billion consensus estimate by 4%, reflecting 11% YoY growth. RTX exited the period with a record $340 billion backlog, including $176 billion from commercial aerospace and $164 billion from defense. The impressive backlog provides strong revenue visibility, undoubtedly a major positive for investors. EPS revisions for its current and next fiscal year remain on a positive trajectory, suggesting growth rates of 17% for FY26 and 6.7% in FY27. Image Source: Zacks Investment Research Interactive Brokers, an automated global electronic brokerage firm, delivered another solid quarter, benefiting from continued account growth and higher trading activity. Adjusted earnings of $0.67 per share matched the Zacks Consensus estimate, climbing 17.5% YoY. Revenues of $1.9 billion exceeded the $1.8 billion consensus estimate by 1.9%, reflecting 16.3% YoY growth. Importantly, customer accounts reached a record 5.58 million, climbing 35% YoY. Customer equity similarly grew 27% to nearly $965 billion, while net interest income increased 19% to roughly $1.2 billion. The company also raised its quarterly dividend by more than 70%, reflecting a strong commitment to increasingly rewarding shareholders. IBKR sports a favorable Zacks Rank #2 (Buy), with annual EPS estimates continuing to remain on a bullish trajectory. Image Source: Zacks Investment Research Bottom Line The Q3 earnings season continues to deliver impressive results, with Valero Energy VLO, RTX RTX, and Interactive Brokers IBKR all posting quarterly records. In addition to reporting quarterly records, all three sport favorable Zacks Ranks, reflecting positive earnings outlooks and providing a constructive near-term backdrop for shares. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report Valero Energy Corporation (VLO) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thu, Oct. 15, 2026 - Director of Investor Relations - Nancy Enslein Stuebe - Founder and Chairman - Thomas Pechy Peterffy - President and CEO - Milan Galik - CFO - Paul Jonathan Brody Operator: Hello, and welcome to the Interactive Brokers Group Third Quarter 2026 Earnings Call. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press *11 on your telephone. You will then hear an automatic message advising your hand is raised. To withdraw your question, please press *11 again. I would now like to turn the conference over to Nancy Enslein Stuebe, Director of Investor Relations. You may begin. Nancy Enslein Stuebe: Thank you. Afternoon, and thank you for joining us for our third quarter 2026 earnings call. Joining us today are Thomas Pechy Peterffy, our Founder and Chairman Milan Galik, our President and CEO and Paul Jonathan Brody, our CFO. I will be presenting Milan's comments on the business, and all 3 will be available at our Q and A. As a reminder, today's call may include forward looking statements which represent the company's belief regarding future events which by their nature are not certain and are outside of the company's control. Our actual results and financial condition may differ possibly materially from what is indicated in these forward looking statements. We ask that you refer to the disclaimers in our press release You should also review a description of risk factors contained in our financial reports filed with the SEC. Milan Galik: The S&P 500 was up 2% this quarter after rising nearly 15% last quarter. Maintaining its resilience even as interest rates moved higher. Due to enthusiasm for both large technology companies and artificial intelligence. However, this performance masked a somewhat narrow market breadth as large technology names represented the majority of the S&P 500's gain quarter. The 10 largest US technology stocks now represent nearly 40% of the total value of the index, which has become more concentrated over the course of the year. The most actively traded names on our platform this quarter continued to be global technology names. Their growth and business traction appeal to investors around the world want to have the ability to invest directly and gain ownership in them, and convert their currency inexpensively into USD to do so. Investors hold these stocks across accounts, in hedge funds, in their personal accounts, and in their retirement accounts. The flexibility with which they can do so regardless of account type is a major reason for the success of our platform. As can be seen in our over 30% account growth, strong interest continues in opening and funding accounts. We are seeing growth from both institutional and individual investors and in all regions. Pretax profit was a record, and our 78% pretax margin marked the eighth consecutive quarter with margins above 70%. In recognition of this, and as a sign of confidence in the strength of our business model, its growth potential, and of our capital base. We revisited how we allocate our capital, and decided to increase the amount of dividend we pay to $0.60 a year. We introduced multiple new products and initiatives this quarter. We added access to multiple new exchanges. The Bucharest Stock Exchange, 1 of the top performing markets over the past decade, the Texas Stock Exchange, where we are already seeing average daily volume of about 2.5 million shares, a new options exchange that aims to improve liquidity for larger, particularly institutional, options orders. In Brazil, we launched trading of B3 futures on financial indexes cryptocurrencies, and commodities. Expanding our Latin America access. We began a limited rollout of cryptocurrency staking giving our clients a means to earn a return on their coins. In Japan, we now can offer several new ways for clients to enhance their returns, starting with margin lending. We can also offer our fully paid securities lending program as well as IBKR Plus our proprietary offering that enables Japanese clients to earn interest on the eligible non Japanese yen cash balances in their brokerage accounts. For prediction markets, we introduced trading in short duration event contracts, with hourly and 15-minute expirations in crypto, metals, and energy. These give clients a way to gain intraday exposure to price outcomes and have increased platform engagement by our clients. Our AI connector remains 1 of the fastest adopted features we have ever introduced. This quarter, we added Perplexity as an official partner and expanded connectivity to support any AI tool that uses the model context protocol or MCP, including the coding and desktop assistance preferred by many of our active clients. We also enhance the connector with account level P&L, alert management, and watch lists, and expanded its trading capabilities to include 2-leg option strategies. We also launched autonomous AI trading, which allows eligible clients to connect the AI agent of their choice to their IBKR account and authorize it to trade autonomously. It works with any compatible MCP client or AI platform. Clients can create and fund a dedicated partition for autonomous AI trading within their existing account in a single session without opening a new account. The rollout is underway. With autonomous AI trading now available to eligible clients in several countries with additional countries to follow. Clients can trade global stocks and options using a variety of order types and trading sessions. Including day, overnight, and overnight plus day. Turning to some of our customer segments. For registered investment advisers, we now offer tax aware long short strategies to their customers. Given that our platform is designed for active, sophisticated clients and that we have a long standing prime brokerage offering, Tax-aware accounts that use margin, short selling, and securities lending are a good fit for us. We are seeing increased interest in our offering, particularly as other brokers impose limits on these strategies. We have 3 tax-aware strategy providers onboarded now, with additional ones coming by year end and more early next year. Offering RIAs a broad range of options. Have been able to utilize our extensive programming expertise to customize the offering for different clients. Based on their needs. Introducing broker pipeline once again was strong. Similar to what we saw last quarter. A growing substantial pool of prospects and the continued growth of a number of new introducing brokers as well as the growth of existing ones. This quarter, Dowell Investment and Securities a publicly traded South Korean brokerage firm, launched a global securities trading platform, powered by IBKR's technology and trading infrastructure. AI continues to be adopted internally. We are implementing and rolling out AI assisted tools to our client service team that can retrieve data across multiple internal systems, begin analysis of a simple or multipart request, and present findings to the representative. Helping our team serve clients faster and more efficiently. New account onboarding, compliance, and surveillance are all incorporating AI and machine learning to help us scale. As we ramp up the flow of new clients and global exchanges. Finally, despite somewhat slower overall trading activity versus the second quarter, our overnight trading volumes continue to rise increasingly showing how important it is for international investors who want to trade during their waking hours in active liquid markets. Overnight trading rose from 3.5 million trades in the third quarter last year to over 10 million trades this year. We have much planned for the quarters ahead, and look forward to sharing further updates in the coming quarters. Nancy Enslein Stuebe: With that, I will turn the call over to Paul Jonathan Brody. Paul? Paul Jonathan Brody: Thank you, Nancy, and thanks, everyone, for joining the call today. We will start with our revenue items on page 3 of the release. We are pleased once again with our financial results this quarter. As we again produced near record adjusted net revenues and record pretax income. Commissions rose 12% versus last year's third quarter to $602 million the third consecutive quarter our commission revenue has exceeded $600 million Net interest income rose 19% year-on-year, to over $1.1 billion driven primarily by higher balances. Robust growth in margin borrowing reflected an investing environment that grew more risk on as the quarter progressed. Our segregated cash portfolio grew with new accounts. Though as our clients put more funds to work in the market during the quarter, interest on segregated cash was about even with the prior quarter. The interest we paid on our customers' cash balances which offsets the interest revenue somewhat, also expanded with the cap growth. Other fees and services generated $88 million, up 33% primarily driven by higher risk exposure fees in a more risk on environment than last year. Higher market data fees, and strong options volumes, which led to higher payments from options exchange mandated order flow programs. Other income includes gains and losses on our investments, our currency diversification strategy and principal transactions. Note that many of these noncore items are excluded in our adjusted earnings. Without these excluded items, other income was $28 million for the quarter. Turning to expenses. Execution, clearing and distribution costs were $134 million in the quarter, up $42 million or 40% over the year ago quarter. Primarily from the reinitiation of SEC regulatory fees. These fees were zero in last year's third quarter and $30 million this quarter this quarter. Because they are largely passed through these fees increase both our commission revenue and execution costs and do not impact profits. Execution and clearing costs were 17% of commission revenue, in the third quarter for a gross transactional profit margin of 83%. We calculate this by excluding from execution, clearing and distribution, $28 million of non transaction based costs predominantly market data fees, which do not have a direct commission revenue component. Compensation and benefits expense was $167 million for the quarter. For a ratio of compensation expense to adjusted net revenues of 9% similar to last year. Our headcount at September 30 was 3.29 thousand. G&A expenses were $78 million up from the year ago quarter, with continued expansion of advertising the predominant factor. Our pretax margin was 78% for the quarter as reported and as adjusted. Income taxes of $148 million reflects the sum of the public company's $60 million and the operating company's $88 million. This quarter, the public company's effective tax rate was 16%, within its usual range. Moving to our balance sheet on Page 5 of the release. The consistent strength of our business and our healthy balance sheet support our raising the dividend from $0.35 to $0.60 per year returning capital to shareholders while still maintaining an ample capital base, for the current business and future opportunities. Our total assets were 21% higher than the prior year, at $243 billion, with growth driven by higher margin lending and segregated cash and securities balances. New account growth also helped drive our record customer credit balances. Continue to have no long term debt. Profit growth drove our firm equity up 19% to $23.3 billion We maintain a balance sheet geared towards supporting growth in our existing business and helping us win new business by demonstrating our strength to prospective clients and partners while also considering overall capital allocation. Turning to the operating data Customer activity was strongest in futures contracts, up 13% over the prior year. With more muted activity in options and stocks. Options volumes were down slightly Stock share volumes were down 24% versus last year, primarily driven by low priced stocks where share volume is high relative to notional value. Generally, clients gravitated to larger, higher quality names where returns far exceeded the rise in most major market indices. On page 7, you can see the total customer DARTs, were 4.3 million trades per day in the quarter, up 18% from the prior year. Commission per cleared commissionable order of $2.59, was down 4% from last year on smaller order sizes across product types. Turning to net interest margin, Page 8. Shows the NIM numbers. Total GAAP net interest income was just over $1.1 billion for the quarter, up 19% on the year ago quarter, And our NII table net interest income was $1.2 billion, also up 19%. We include for NIM purposes certain income that is more appropriately considered interest, but that for GAAP purposes is classified as other fees and services or as other income. Our NII reflects strong annual increases in balances, along with a mixed bag of policy rate changes across central banks worldwide. Several central banks raised rates in September providing a minor tailwind to net interest income in the third quarter and further benefit going forward. Together, these factors drove a rise in interest income on margin loans, and customer segregated cash, partially offset by higher interest expense on customer cash balances. Year on year, the average US Fed funds rate fell 63 basis points or by 15%. Despite this decline, our margin loan interest was up 36%, and our segregated cash interest was up 4% both bolstered by higher balances. The average duration of our investment portfolio remained at less than 30 days. Because of the timing of the Fed rate hike Fed rate hikes in mid September. Most of their impact will be realized in the fourth quarter. The US dollar yield curve is generally positive in the short to medium term. And we have responded by pushing our duration out of bid. While still maintaining a relatively tight maturity match between our assets and liabilities. Reported securities lending net interest trailed last year's unusually strong result, though both quarters had a few very popular hard to borrow names. However, an all encompassing view of securities lending paints a different picture. A portion of what we earn from securities lending is classified as interest earned on segregated cash. We estimate that if the additional interest earned and paid on cash were included under securities borrowed and loaned, then total net revenue related to securities lending, would have been $426 million this quarter, up 36% over the prior year quarter. Fully rate sensitive customer balances ended the current quarter at $27.8 billion versus $25 billion in the year ago quarter. Now for our estimates of the impact of changes in rates, given some uncertainty over the direction of US interest rates and the divergent actions of central banks around the world, we look at potential effects of rate moves in either direction. We estimate the effect of a 25-basis point increase or decrease in the benchmark Fed funds rate to be $83 million higher or lower respectively, in annual net interest income. Note that our starting point for this estimate is September 30, with the Fed funds effective rate at 3.88%. And balances as of that date. Any growth in our balance sheet and interest earning assets would increase these impacts. About 30% of our customer interest sensitive balances is not in U. S. Dollars. So estimates of The U. S. Rate change exclude those currencies. We estimate the effect of a 25-basis point increase or decrease in all the relevant non USD benchmark rates. Would increase or decrease annual net interest income, respectively, by $35 million. In conclusion, this was another financially strong quarter, reflecting our continued ability to grow our customer base and deliver on our core value proposition to customers, while simultaneously scaling the business. Our business strategy continues to be effective automating as much of the brokerage business as possible, continuously improving while expanding through new product introductions what we offer while minimizing what we charge. And with that, we would like to open up the line for questions. Operator: Thank you. Ladies and gentlemen, as a reminder to ask a question, please press *11 on your telephone, then wait for your name to be announced. To withdraw your question, please press *11 again. Our first question comes from the line of Patrick Moley with Piper Sandler. Your line is open. Patrick Moley: Yes. Good afternoon. Thanks for taking the question. So I had 1 on the dividend pretty big step up to $0.15? Could you just walk us through the Board's thinking around sizing that and whether this signals any sort of new payout framework, whether it is a target ratio or a certain level of excess capital that you think is appropriate. Thanks. Thomas Pechy Peterffy: We have generally been following the guideline of paying dividends between 0.5% and 1% of the market value, and we have fallen somewhat behind. So we are trying to catch up here. And we are going to continue to follow that guideline of the paying between 0.5% and 1% of the market value. Nope. Patrick Moley: Okay. Great. And then just as a follow-up, Paul, you called out advertising as the predominant driver of the G&A increase. And I know September, it is only been about a month where you joined the xCash tags program. And you are offering a $100 funding credit there. So could you maybe just give us an early read on what that channel is producing And should we read the ad spend step up in the x partnership as maybe a signal that you guys are leaning more into the digital customer acquisition strategy. Thanks. Thomas Pechy Peterffy: Yes. We are. That is a correct assumption. And that is exactly what we are trying to spend more money on but, you know, it will take some time to get it correctly. Lined up. Patrick Moley: Great. Any sort of early read you can give us on how successful it is been? Or what or what the customer accounts that are coming over look like? Thomas Pechy Peterffy: it is been mixed. So while the customers we have been getting lately are higher value customers. We are getting smaller number of them. Patrick Moley: Great. Very good. Thank you. Operator: Thank you. Our next question comes from the line of James Yaro with Goldman Sachs. Your line is open. James Yaro: I wanted to touch on across your key geographies where you believe Interactive Brokers has the greatest, account market share gain opportunity? And as a corollary, where you believe IBKR is still underpenetrated? Milan Galik: Well, I would not single out 1 particular geography. We believe that we have plenty of room to grow in both established and new markets. See, 1 of our strengths is that we operate as a single global platform that is highly automated, and can be easily adapted to local regulations and needs without having to build a separate business in each country. So that is a huge plus. Now the opportunities are not necessarily the same everywhere. In some markets, we see more interest from individual investors, in others from institutions or intermediaries. But that is the advantage of our model. We can serve different types of clients across different markets and we can expand without significantly increasing our cost. James Yaro: Great. Thank you. I hope that you might be able to speak to the scale of your TaxAware long short product for RIAs thus far. Perhaps in terms of assets? But. And then more broadly, just your aspirations for this product, from here. Milan Galik: Well, in terms of assets by the end of the quarter, it was approximately $300 million. We have only recently started really attracting this client segment. We have very high hopes We work with 3 or 4 different providers, including AQR, a very well-known name in the space, and we are looking to add more Well, we are seeing RIAs signing up, although the process is moving more slowly than we would like. This product we believe we are particularly well positioned for. These strategies require margin financing, short selling, securities lending, all of which we have been doing a very good job at for many, many years. We have low financing costs, access to a large pool of lendable securities, and the automation to handle these strategies efficiently at scale. And on top of that, other brokers are placing restrictions which creates additional opportunity for us. So we are very focused on this business. And we think that it has considerable room to grow for us. Operator: Thank you. Please stand by for our next question. As a reminder, ladies and gentlemen, we ask you to please limit yourself to 1 question and 1 follow-up. Our next question comes from the line of Daniel Fannon with Jefferies. Your line is open. Daniel Fannon: Thanks. Good afternoon. You have seen some moderation in client activity in terms of trading. Curious at a high level if you see anything at a customer or geographic region where you anticipate you know, maybe some--a continued slowdown or anything underneath that is a little. That would be concerning in terms of, you know, looking ahead into. Around growth or anything else? Milan Galik: Nothing really concerning. As you know, the training activity is not always the same. In the previous quarter, we probably benefited from some activity that was related to the IPO There were some IPOs that were supposed to come online this quarter. They have been delayed. The. We expect the volatility to somewhat increase as we approach the midterm elections. As the volatility increases, our traders and clients tend to trade more. So no concerns whatsoever. Daniel Fannon: Great. that is helpful and then you did. You highlighted a few product, rollouts within Japan, around margin and you mentioned another 1. Curious just about the uptake and how to think about the potential contribution from those changes. Milan Galik: Our current aim is to migrate the accounts that we have accumulated on behalf of the Japanese residents in our US affiliate to Japanese affiliate. So that is what we are focusing on. That is what we have been in discussions with the regulators about But at the same time, we have put very significant effort into offering margin in Japan in a regulatory compliant way. We have very recently finished the rollout of the so called PASCI, which is another type of second factor authentication method, which is supposed to be resistant to phishing attacks. And, right now, we are focusing on making the client account onboarding faster making the KYC verifications fully digital, to the extent that it is possible. So there is still some amount of work left in Japan, but then we believe that we will have everything we need to significantly compete. Now, the headwind that we will be facing is that it is difficult to do business in Japan. That is what we have learned over the last couple of years that we have put some significant effort into that country. The Japan is culturally very different, very homogeneous, Hopefully, the younger investors will be looking more favorably towards foreign brokers like ours. So we remain optimistic. Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Benjamin Budish with Barclays. Your line is open. Benjamin Budish: Maybe a follow-up on the earlier question on the tax-aware strategy. And maybe you could talk a bit more about the current state of your RIA business. I am curious can you maybe remind us what types of RIAs are on the platform today? What types are you sort of attracting that may have not been to Interactive Brokers? Do you think there are opportunities to sort of consolidate a little bit of market share? For RIAs that may be using multiple custodians? And then just your kind of broader thoughts on this as a kind of an RIA specific strategy or strategy with appeal to that channel versus something that, you know, has appeal to your more kind of higher net worth and active trader, customers? Milan Galik: So the tax aware products, they are mainly carried by the financial advisers. These products are suitable for bigger accounts, Those are the types of accounts that the financial advisers carry. As I said, very high hopes for the segment for the various reasons I mentioned. Aside from focusing on the tax-aware portfolios, we are putting some work into making the onboarding of the RIAs easier and smoother. Not just those that are interested in these products. So there are some programming projects currently in progress. And we are also looking into significantly enhancing our integrations with the multicastodial platforms. With the hope that the financial advisers that are already custodying with some of our competitors will be more open to bring some of their business to our platform. Benjamin Budish: Got it. that is very helpful. Thank you. Maybe just a separate follow-up on some new trading product opportunities. I think there was not as much discussion, at least this call, on things like binary options and single stock futures and I think Cboe just very recently got approval for the single stock KPIs. So just maybe curious your thoughts on some of these newer products. Any expectations for what uptake may look like would be helpful. Thank you. Milan Galik: So the Cboe announcement, I think it was either yesterday or a couple of days ago. Very exciting, obviously. I think the prediction markets will welcome the addition of these KPIs on single stocks. We do not yet know when the product will go live. I think Cboe may try to go live by the end of this month. We are working on the project. Our aim is to offer them to our clients very interesting product. We are very excited about it. Operator: Thank you. Please stand by for our next question. Next question comes from the line of Steven Chubak with Wolfe Research. Your line is open. Steven Chubak: Hi. Good evening, and thanks for taking my questions. So to start, I wanted to inquire about some recent developments at a large brokerage competitor in the RIA space. They recently introduced a minimum asset threshold of $100 million for RIAs on their platform. It goes into effect sometime in the middle of next year. But many people believe that this could bring more small RIAs in motion that certainly plays to your firm's strengths. And was curious if you are hearing this from other RIAs in the industry. Is this driving any uptick in interest in terms of the pipelines? And how you believe you are positioned to potentially consolidate share as some of your larger competitors maybe deemphasize some of the smaller firms? Milan Galik: So as you said, this is supposed to happen sometime in the middle of next year. The competitor was Fidelity, I believe, and anybody under $100 million is supposed to find a new home. I completely agree with you. We are 1 of the obvious choices, if not the obvious choice. That is why--that is part of the reason why some of the work that I mentioned earlier is so relevant and so beneficial. So we have 9 months between now and maybe a little more and when this is supposed to happen. So we are going to be working very hard to show a welcoming home To the financial advisers that need to find 1. Steven Chubak: that is great color. And for my follow-up, wanted to just ask about the since you mentioned a large introducing broker relationship, on the platform, whether you could speak to the pipeline how that compares to what you were seeing in the IB pipeline, whether it was 6 or 12 months ago. Just so we can, check at least how the momentum there is trending. Milan Galik: I think I would say that it looks pretty much the same as it did last couple of quarters. A lot of integrations in the pipeline or in the progress. Some of them have gone online. The business continues to attract firms looking to expand their offering and grow their business. Here, 1 of our key advantages is that we provide a complete solution from the account opening and front end trading platforms to execution, corporate actions, clearing custody, along with I would say, unmatched global multi asset offering. So that is a very key advantage. Another big advantage is that the investments that we make in our direct brokerage business also benefit our iBroker clients. As we expand into new markets or classes or add new capabilities, these capabilities become available almost immediately to our iBroker clients as well. So we continue to be extremely well positioned to benefit anyone who wants to become an ibroker. Operator: Thank you. Our next question comes from the line of Kyle Voigt with Wells Fargo. Kyle Voigt: Hi. Good evening. You mentioned the rollout of autonomous AI trading. And I wonder what percentage of your customer base do you think will be eligible And then relatedly, do you think that AI tools are going to help people gain more comfort trading new types of instruments? and cause a material step up in trades per account over the long term. Milan Galik: So we started a very limited rollout of the autonomous trading We had only invited clients who had previously used our human in the loop AI connector. We are planning to expand the eligibility to more clients over the next few weeks. As to the expected activity. So to give you the rough numbers, approximately 3 thousand clients of ours. Were invited. Over the last several days. Obviously, this number is going to greatly increase. As far as the expected activity, we expect as the clients become more comfortable with AI in general, we expect them to become more comfortable with AI making trading decisions. On their behalf. The good investors will become much more productive because they will be able to consume and process significantly higher amount of information They will be able to follow more companies. They will be able to implement trading strategies more easily. So that. These are the reasons why we expect a higher trading volumes related to AI adoption over time. Kyle Voigt: Thank you. And then for a follow-up, you are now routing the more venues for prediction markets. How do you feel about the progression and adoption through that channel? Milan Galik: So we have added Kalshi and CME and along with FOREX.com, we now cover, we now cover 3 different platforms. We are working on integrating with Polymarket The integrations are delivering the results that we were hoping for. We have increased the overall volume Our clients benefit from increased range of products. Deeper liquidity, better execution prices. Kyle Voigt: Thank you. Operator: Our next question comes from the line of Brennan Hawken with BMO. Brennan Hawken: I would like to follow-up on the question around dividend. So if you are thinking about a yield basically on market cap, does that mean that we see a drawdown in market cap where the yield gets pushed above the range that you would consider cutting the dividend? Or is that just something you would ride out until the market cap recovers? Like, how would you think about those parameters? Thomas Pechy Peterffy: I do not think that we will ever cut the dividend, at least not seeing any situation that I can imagine sitting here right now. Brennan Hawken: Excellent. Thomas, that is very clear. Thank you. And then on the more mundane side, so the yield on margin balance has ticked up pretty nicely versus last quarter. You referenced a mixed bag of policy rate movements. So could you talk about how much that increase in rates came down to base rate changes, versus a mix shift and how sustainable you think that yield pickup is? Thanks. Paul Jonathan Brody: Well, it is always a combination of those factors. Especially, you know, what currencies it is coming in. And what those central banks are doing. We did see more of a contribution from the non US dollars during this quarter than in prior. You know, But it all feeds in the primary driver was the size of the increase of the balances themselves. Up 47% on the year and another 8% on the quarter. Operator: Thank you. Ladies and gentlemen, as a reminder to ask a question, please press *11 on your telephone. Our next question comes from the line of Brian Bedell with Deutsche Bank. Brian Bedell: Great. Thanks. Good afternoon, folks. Thanks very much for taking my questions. Maybe just 1 more on the tax-aware strategy. In terms of the economics of that, is it that we should be thinking of that as simply as you grow margin loans and, lending is used and obviously the credits that support that. Would be the same economics that you are, you know, currently getting on those line items? Or would there be a different set of economics for these strategies for RIAs? Milan Galik: Those areas. The economics would be similar to the rates that we offer to large balances and large accounts. Today. Brian Bedell: Okay. Great. Great. And then just on, going back to prediction markets and company KPIs, And as you are connecting to more markets and I obviously, Cboe would be 1 of them as well, I would think. Is there. Are there any plans to change the user interface to accommodate those different, you know, say, company KPIs, or would you just be leveraging the same user interface as you are now? Milan Galik: that is an interesting question. And I will go a little bit into the weeds. So the prediction market interface that we offer to the. To our clients today is covering the product, the ForecastEx offers, Kalshi offers, CME offers. These are swaps regulated by CFTC The KPI contracts that are going to be offered by Cboe are classified as binary options. The end result is the same in terms of the payout. But they are actually structured as call and put options. That you can both buy and sell. And the calls and puts are not tied together. The call price and the put price together may be larger or larger than $1, which is which is not possible in the CFTC regulated markets. So we are going to tie them together We are going to present them on the user interface that our prediction market traders are used to. But they will also be available on the regular option screens. Just like the currently available Cboe binary options on indexes are. Brian Bedell: Interesting. Great. Okay. Thank you. Operator: Thank you. Our next question comes from the line of Chris Allen with KBW. Christopher Allen: Good evening, everyone. I wanted to circle back a little bit on the more subdued trading activity in the quarter. Trading activity per account dipped to the lowest level in quite some time. Just wondering if you could provide any color on different customer segments whether it was kind of broad based that all customer segments pulled back or whether it was pullback in certain customer segments more so than others. Milan Galik: Broad based. Christopher Allen: Understood. And then maybe just on the announcements around Japan offering margin and the securities paid lending program, there any other countries where there is a similar opportunity to expand your offerings there in terms of a major marketplace? Milan Galik: There are, but we would rather not discuss them so as not to show the blueprints to some of our competitors that are probably listening to us. As we do the work and as we have products that we can deliver, we will announce those. Christopher Allen: Understood. Thank you. Operator: Thank you. Ladies and gentlemen, I am showing no further questions in the queue. I would now like to turn the call back over to Nancy for closing remarks. Nancy Enslein Stuebe: Thank you, everyone, for participating today. As a reminder, this call will be available for replay on our website and we will be posting a clean version of the transcript on the site tomorrow. Thanks again, and we will talk to you next quarter end. Operator: That concludes today's call. You may now disconnect. Thank you for your participation. Before you buy stock in Interactive Brokers Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Interactive Brokers Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $391,581!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,334,780!* Now, it's worth noting Stock Advisor's total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 16, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group and short January 2027 $46.25 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy. Interactive Brokers (IBKR) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Achieved record pretax profit with a 78% margin, marking the eighth consecutive quarter above 70%, driven by high automation and scaling efficiency. - Performance was supported by strong interest in global technology names, which investors access via inexpensive currency conversion and flexible account types. - Rapidly expanded the AI ecosystem through the 'AI Connector' and a new partnership with Perplexity, supporting tools that use the Model Context Protocol (MCP). - Launched autonomous AI trading, allowing eligible clients to authorize AI agents to execute trades across global stocks and options within dedicated account partitions. - Strengthened the RIA value proposition by introducing tax-aware long-short strategies, capitalizing on competitors' restrictions in margin and securities lending. - Expanded the global footprint with new exchange access in Bucharest and Texas, alongside new futures trading capabilities in Brazil and margin lending in Japan. - Internal AI implementation is accelerating operational efficiency in client services, compliance, and onboarding to manage the growing flow of global clients. - Management expects increased trading volatility and client engagement as the market approaches midterm elections. - The company plans to migrate Japanese resident accounts from the US affiliate to the local Japanese affiliate to fully leverage new margin and lending capabilities. - Strategic focus remains on enhancing integrations with multi-custodial platforms to attract RIAs currently using competitors like Fidelity. - Anticipates a long-term increase in trading volumes as clients become more comfortable with AI-driven decision-making and information processing. - Future growth assumes continued expansion of prediction markets, including the integration of Polymarket and new KPI-based binary options from Cboe. - Increased the annual dividend to $0.60 per share, aligning with a strategy to maintain a yield between 0.5% and 1% of market value. - Execution and clearing costs rose 40% year-over-year, primarily due to the reinitiation of $30 million in SEC regulatory fees which are passed through to clients. - Advertising spend is the primary driver of G&A increases as the firm leans into digital customer acquisition strategies, including a partnership with X. - Management noted that while recent digital acquisition efforts have attracted higher-value customers, the total number of new accounts from these channels has been smaller than expected. - Management clarified the dividend increase was a 'catch-up' to maintain their guideline of 0.5% to 1% of market value. - Thomas Peterffy stated he does not anticipate any situation where the company would cut the dividend. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management views Fidelity's new $100 million asset threshold for RIAs as a significant opportunity to consolidate market share. - The firm is spending the next nine months enhancing onboarding and multi-custodial integrations to position itself as the 'obvious choice' for smaller RIAs. - Initial rollout was limited to approximately 3,000 clients who previously used the 'human-in-the-loop' AI connector. - Eligibility will expand over the coming weeks, with the expectation that AI will make investors more productive by allowing them to follow more companies and strategies. - The yield pickup was driven by a 47% annual increase in margin balances and a higher contribution from non-USD currencies. - Management noted that while the Fed funds rate fell, margin loan interest rose 36% due to robust balance growth. - Management is working to integrate these new binary options, which they plan to present through their existing prediction market interface. - They noted a technical distinction: unlike CFTC-regulated swaps, these binary options allow call and put prices to potentially exceed $1 in total.

Interactive Brokers Group IBKR third-quarter 2026 adjusted earnings per share were 67 cents, matching the Zacks Consensus Estimate. The bottom line rose 17.5% from the prior-year quarter. Results primarily benefited from higher net interest income, growth in commission revenues, an increase in customer accounts and higher daily average revenue trades (DARTs). However, rising expenses partially offset the gains. After considering non-recurring items, net income available to common stockholders (GAAP basis) was $314 million, up from $263 million in the prior-year quarter. Interactive Brokers reported comprehensive income available to common shareholders of $302 million, or 67 cents per share, compared with $253 million, or 57 cents per share in the prior-year quarter. Adjusted net revenues were $1.87 billion, up 16.3% year over year. The top line beat the Zacks Consensus Estimate of $1.84 billion. Total GAAP net revenues were $1.91 billion, up 15.7%. Net interest income grew 19.3% year over year to $1.15 billion, primarily driven by higher average customer margin loans and customer credit balances. Commission revenues rose 12.1% to $602 million, supported by an 18.2% increase in DARTs and higher regulatory fees passed through to customers. Other fees and services increased 33.3% year over year to $88 million, led by higher risk exposure fees, payments for order flow from exchange-mandated programs and market data fees. Total non-interest expenses rose 21.9% to $418 million. This was primarily due to higher execution, clearing and distribution fees, general and administrative expenses, employee compensation and benefits, occupancy, depreciation and amortization. Income before income taxes rose 14.0% year over year to $1.5 billion. Adjusted pretax profit margin fell to 78% from 79% in the year-ago quarter. During the reported quarter, total customer DARTs increased 18.2% year over year to 4.27 million. Customer accounts grew 35.1% to 5.58 million, while customer equity increased 27.3% to $964.7 billion. As of Sept. 30, 2026, total assets were $243.2 billion compared with $203.2 billion as of Dec. 31, 2025. Total equity increased to $23.3 billion from $20.5 billion over the same period. Cash and cash equivalents totaled $5.9 billion as of Sept. 30, 2026, compared with $5 billion at year-end 2025. Cash and securities segregated for regulatory purposes amounted to $97.1 billion, up from $76.9 billion as of Dec. 31, 2025. Concurrent with the earnings release, the company's board of directors announced a quarterly cash dividend of 15 cents per share, marking a 71.4% increase from the prior payout. The dividend will be paid out on Dec. 14, 2026, to shareholders of record as of Dec. 1, 2026. Interactive Brokers' focus on proprietary technology, automation, product expansion and its global customer base continues to support growth. Strong customer account additions, higher customer equity and rising margin loans provide opportunities to expand commission and interest income. The latest dividend increase also reflects the company's capital distribution initiatives. However, higher operating expenses and fluctuations associated with its currency diversification strategy remain key risks. Interactive Brokers Group, Inc. price-consensus-eps-surprise-chart | Interactive Brokers Group, Inc. Quote Currently, Interactive Brokers sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Here are some of IBKR's peers, which are yet to come out with quarterly numbers. Robinhood Markets HOOD is slated to announce its third-quarter 2026 results on Oct. 27. In the past week, the Zacks Consensus Estimate for Robinhood's quarterly earnings has moved higher to 56 cents. The figure suggests an 8.2% decline from the prior-year quarter reported number. Tradeweb Markets TW is slated to announce third-quarter 2026 results on Oct. 29. In the past seven days, the Zacks Consensus Estimate for TW's quarterly earnings has been revised upward to $1.01 per share. The figure indicates a 16.1% rise from the prior-year reported number. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report Tradeweb Markets Inc. (TW) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. - Adjusted Net Revenues: Near-record adjusted net revenues for the quarter. - Commissions: Rose 12% year-on-year to $602 million; third consecutive quarter above $600 million. - Net Interest Income: Rose 19% year-on-year to over $1.1 billion, driven primarily by higher balances. - Other Fees and Services: $88 million, up 33%, driven by higher risk exposure fees, market data fees, and strong options volumes. - Other Income: $28 million for the quarter, excluding non-core items. - Pretax Income: Record pretax profit for the quarter. - Pretax Margin: 78% as reported and as adjusted; eighth consecutive quarter above 70%. - Execution, Clearing, and Distribution Costs: $134 million, up 46% year-on-year, primarily from reinitiation of SEC regulatory fees ($30 million this quarter vs. zero last year). - Gross Transactional Profit Margin: 83% (execution and clearing costs at 17% of commission revenue). - Compensation and Benefits Expense: $167 million; ratio to adjusted net revenues of 9%. - Headcount: 3,286 at September 30. - G&A Expenses: $78 million, up year-on-year, driven by advertising expansion. - Income Taxes: $148 million (public company $60 million; operating company $88 million); public company effective tax rate of 16%. - Total Assets: $243 billion, up 21% year-on-year. - Firm Equity: Up 19% to $23.3 billion. - Long-Term Debt: None. - Dividend: Increased from $0.35 to $0.60 per year. - Customer DARTs: 4.3 million trades per day, up 18% year-on-year. - Commission per Cleared Order: $2.59, down 4% year-on-year on smaller order sizes. - Futures Volumes: Up 13% year-on-year. - Options Volumes: Down slightly year-on-year. - Stock Share Volumes: Down 24% year-on-year. - Overnight Trading: Rose from 3.5 million trades in Q3 last year to over 10 million trades this year. - Account Growth: Over 30% account growth. - Securities Lending Net Revenue: Estimated $426 million, up 36% year-on-year (including interest earned and paid on cash collateral). - Rate Sensitivity: 25 bps change in Fed funds rate estimated at $83 million annual net interest income; 25 bps change in non-US benchmark rates estimated at $35 million. - Warning! GuruFocus has detected 3 Warning Sign with IBKR. - High Yield Dividend Stocks in Gurus' Portfolio - This Powerful Chart Made Peter Lynch 29% A Year For 13 Years - How to calculate the intrinsic value of a stock? - Is IBKR fairly valued? Test your thesis with our free DCF calculator. Release Date: October 15, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Interactive Brokers Group Inc (NASDAQ:IBKR) reported record pretax profit with a 78% pretax margin, marking the eighth consecutive quarter with margins above 70%. - The company increased its annual dividend to $0.60 per share, demonstrating confidence in its business model and strong capital base. - Interactive Brokers Group Inc (NASDAQ:IBKR) achieved over 30% account growth, with strong interest from both institutional and individual investors across all regions. - Net interest income rose 19% year-on-year to over $1.1 billion, driven by higher balances and robust margin borrowing. - The company launched multiple new products and initiatives, including cryptocurrency staking, prediction markets, and Autonomous AI Trading, enhancing platform engagement and client offerings. - Stock share volumes declined 24% versus last year, primarily due to reduced trading in low-priced stocks. - Options volumes were down slightly, and overall trading activity moderated compared to the previous quarter. - Execution, clearing, and distribution costs increased 46% year-over-year, largely due to the reinitiation of SEC regulatory fees. - Admission per cleared commission order fell 4% to $2.59 due to smaller order sizes across product types. - The company faces challenges in Japan, including cultural differences and regulatory hurdles, which may slow growth in that market. Q: Could you walk us through the Board's thinking around the big step-up in the dividend to $0.60 per year and whether this signals a new payout framework? A: Thomas Peterffy, Chairman of the Board, explained that the company has generally followed a guideline of paying dividends between 0.5% and 1% of market volume and had fallen somewhat behind, so they are trying to catch up. He added that they will continue to follow that guideline. Q: Where does Interactive Brokers believe it has the greatest account market share gain opportunity, and where is it still underpenetrated? A: Milan Galik, President and CEO, said he wouldn't single out one geography, as there is plenty of room to grow in both established and new markets. He highlighted the strength of operating a single global platform that is highly automated and can be adapted to local regulations without building a separate business in each country, allowing IBKR to serve different client types across markets while expanding without significantly increasing costs. Q: Can you speak to the scale of the tax-aware long-short product for RIAs and your broader aspirations for it? A: Milan Galik, President and CEO, said assets in the product were approximately $300 million by the end of the quarter. He noted IBKR is particularly well positioned because these strategies require margin financing, short selling, and securities lending all areas where IBKR has low financing costs, a large pool of lendable securities, and automation to handle strategies efficiently at scale. He added that other brokers are placing restrictions, creating additional opportunity, and that the company has high hopes for the segment. Q: A large brokerage competitor introduced a $100 million minimum asset threshold for RIAs. Is this driving an uptick in interest, and how is IBKR positioned to consolidate share? A: Milan Galik, President and CEO, agreed that IBKR is one of the obvious choices, if not the obvious choice, for smaller RIAs needing a new home. He noted there are about nine months before the change takes effect and that the firm will work hard to show a welcoming home to financial advisers who need to find one. Q: You highlighted several product rollouts in Japan around margin and securities lending. What is the uptake and potential contribution? A: Milan Galik, President and CEO, said the current aim is to migrate accounts held for Japanese residents in the US affiliate to the Japanese affiliate, which is the focus of ongoing regulatory discussions. He noted significant effort has gone into offering margin in Japan in a regulatorily compliant way, including the recent rollout of passkey authentication and work to make onboarding and KYC verification fully digital. He acknowledged Japan is culturally difficult for foreign brokers but remains optimistic that younger investors will look more favorably on firms like IBKR. Q: What percentage of your customer base do you think will be eligible for Autonomous AI Trading, and will AI tools cause a material step-up in trades per account? A: Milan Galik, President and CEO, said the rollout started very limited, inviting only clients who had previously used the human-in-the-loop AI Connector, with approximately 3,000 clients invited over the last several days and plans to expand eligibility over the next few weeks. He expects clients to become more comfortable with AI making trading decisions as they grow more comfortable with AI generally, and that good investors will become much more productive by processing more information, following more companies, and implementing strategies more easily driving higher trading volumes over time. Q: You called out advertising as the predominant driver of the G&A increase. Can you give an early read on the new customer acquisition channel and whether this signals leaning more into digital customer acquisition? A: Thomas Peterffy, Chairman of the Board, confirmed that leaning more into digital customer acquisition is the correct assumption and exactly what they are trying to spend more money on, though it will take some time to get it correctly lined up. He added that while the customers they have been getting lately are higher-volume customers, they are getting a smaller number of them. Q: You've seen some moderation in client activity. Do you see anything concerning looking ahead around growth? A: Milan Galik, President and CEO, said there is nothing really concerning. He noted trading activity varies, and the prior quarter likely benefited from IPO-related activity while some IPOs expected this quarter were delayed. He expects volatility to increase somewhat as midterm elections approach, and higher volatility typically leads clients to trade more. Q: The yield on margin balances ticked up nicely versus last quarter. How much came down to base rate changes versus mix shift, and how sustainable is that pickup? A: Paul Brody, CFO, said it is always a combination of factors, especially which currencies are coming in and what central banks are doing. He noted more of a contribution from non-US dollars this quarter than in prior periods, but the primary driver was the size of the increase in balances themselves, up 47% on the year and another 8% quarter over quarter. Q: On prediction markets and company KPIs, are there plans to change the user interface to accommodate different products? A: Milan Galik, President and CEO, explained that the current prediction market interface covers swaps regulated by the CFTC offered by ForecastEx, Kalshi, and CME. The KPI contracts to be offered by Cboe are classified as binary options, structured as call and put options that can be bought and sold, with calls and puts not tied together. He said IBKR will tie them together and present them on the prediction market user interface, while also making them available on regular option screens, just like currently available Cboe binary options on indexes. Q: Trading activity per account dipped to the lowest level in quite some time. Was the pullback broad-based or concentrated in certain customer segments? A: Milan Galik, President and CEO, said the pullback was broad-based. Q: Besides Japan, are there other countries where there is a similar opportunity to expand your offerings in a major marketplace? A: Milan Galik, President and CEO, said there are, but declined to discuss them so as not to show the blueprints to competitors who are probably listening. He said the company will announce them as the work is done and products are ready to deliver. Q: If the dividend yield on market cap moves For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interactive Brokers Group, Inc. IBKR emphasized artificial intelligence-driven trading, international expansion and institutional opportunities during its third-quarter 2026 earnings call. Management also addressed moderating trading activity and the impact of interest rates on profitability. The brokerage reported continued customer growth and raised its quarterly dividend, reflecting confidence in its capital position. Executives outlined initiatives aimed at expanding trading capabilities and attracting higher-value accounts. IBKR reported quarterly earnings of $0.67 per share, in line with the Zacks Consensus Estimate. Revenues of $1.87 billion surpassed the consensus mark of $1.84 billion. Interactive Brokers Group, Inc. price-consensus-eps-surprise-chart | Interactive Brokers Group, Inc. Quote Chief financial officer Paul Brody highlighted expanding customer balances as a major driver of interest income. Net interest income increased 19% year over year to $1.15 billion, supported by higher-margin borrowing and customer deposits. Average customer margin loans reached $104 billion compared with $70.8 billion a year earlier. However, the net interest margin declined to 1.99% from 2.16%, reflecting changes in interest rates and asset yields. Brody estimated that a 25-basis-point change in U.S. benchmark rates would affect annual net interest income by $83 million. Equivalent movements across relevant non-U.S. currencies would have an estimated $35 million impact. Customer accounts increased 35% year over year to 5.58 million, while customer equity rose 27% to $964.7 billion. However, daily average revenue trades declined 11% sequentially to 4.27 million. During an exchange with Jefferies, president and chief executive officer Milan Galik attributed some moderation to delayed initial public offerings. He expressed confidence in trading demand, anticipating increased volatility around the midterm elections. Responding to a Keefe, Bruyette & Woods analyst, Galik acknowledged that weaker trading activity per account was broad-based. Commission revenues, nevertheless, increased 12% year over year to $602 million. Galik outlined the company's autonomous AI trading rollout, allowing eligible customers to authorize compatible AI agents to execute trades. The platform supports global equities and options across multiple trading sessions. During questioning from Wells Fargo, Galik disclosed that approximately 3,000 customers had initially received invitations. Eligibility will expand, with management expecting increased trading activity as customers become more comfortable with AI-driven decisions. The company also expanded its AI connector through Perplexity integration and broader Model Context Protocol compatibility. Additional functionality includes account-level profit-and-loss information, alerts and two-leg options strategies. Galik highlighted tax-aware long/short investment strategies as an institutional growth opportunity. Assets associated with the offering reached approximately $300 million, with additional strategy providers expected to join the platform. Goldman Sachs questioned the offering's scalability. Galik emphasized Interactive Brokers' margin financing, securities lending capabilities and automation while acknowledging that adviser onboarding was progressing slower than management preferred. Wolfe Research also raised competitive changes affecting smaller registered investment advisers. Galik identified an opportunity to attract displaced advisers, supported by improvements to onboarding and integrations with multi-custodial platforms. Management highlighted expansion into additional exchanges, including Bucharest and Texas, alongside futures trading on Brazil's B3 exchange. Japan also received margin lending and securities lending capabilities. Galik acknowledged Japan's operational challenges during questioning from Jefferies. Management remains focused on migrating eligible accounts, digitizing customer verification and improving onboarding before pursuing broader competitive opportunities. Prediction markets represent another expansion area. Galik confirmed connectivity with ForecastEx, Kalshi and CME, alongside ongoing Polymarket integration. The company is also preparing to support Cboe's single-stock binary options. The company increased its quarterly dividend to 15 cents per share from 8.75 cents, establishing an annualized payout of 60 cents. During questioning from Piper Sandler, founder and chairman Thomas Peterffy reiterated the company's guideline of maintaining an annual dividend yield between 0.5% and 1% of market capitalization. Peterffy also indicated that management does not envision reducing the dividend under currently foreseeable circumstances, reinforcing its confidence in maintaining shareholder distributions. Management emphasized automation, product development and global market access as central priorities. The company's 78% pretax margin demonstrated its ability to maintain profitability while expanding operations. Executives also highlighted increased advertising investment and continued introducing-broker demand. These priorities reflect an emphasis on customer acquisition, institutional relationships and operational efficiency. IBKR currently sports a Zacks Rank #1 (Strong Buy), indicating a favorable earnings estimate revision outlook. Its Momentum Score of A and VGM Score of B complement that ranking, while Value and Growth Scores of C indicate more moderate characteristics. You can see the complete list of today's Zacks #1 Rank stocks here. The combination of a top Zacks Rank and favorable Momentum and VGM Scores supports its relative positioning under the Zacks framework, which focuses on potential performance over the next one to three months. However, the Zacks Rank may change as analysts revise earnings estimates following the quarterly results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended September 2026, Interactive Brokers Group, Inc. (IBKR) reported revenue of $1.87 billion, up 16.3% over the same period last year. EPS came in at $0.67, compared to $0.57 in the year-ago quarter. The reported revenue represents a surprise of +1.86% over the Zacks Consensus Estimate of $1.84 billion. With the consensus EPS estimate being $0.67, the company has not delivered EPS surprise. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Interactive Brokers performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Net Interest Margin: 2% versus the two-analyst average estimate of 1.9%. - Customer Statistics - Total Customer DARTs: 4.27 million compared to the 4.27 million average estimate based on two analysts. - Average interest-earning assets: $237.25 billion versus the two-analyst average estimate of $239.86 billion. - Total net interest income: $1.15 billion versus $1.12 billion estimated by two analysts on average. - Commissions: $602 million versus the two-analyst average estimate of $588.9 million. - Total non-interest income: $760 million versus the two-analyst average estimate of $707.14 million. - Other income: $70 million versus $30 million estimated by two analysts on average. - Other fees and services: $88 million versus $88.24 million estimated by two analysts on average. View all Key Company Metrics for Interactive Brokers here>>> Shares of Interactive Brokers have returned -3% over the past month versus the Zacks S&P 500 composite's +1.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interactive Brokers Group, Inc. (IBKR) came out with quarterly earnings of $0.67 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.64 per share when it actually produced earnings of $0.69, delivering a surprise of +7.81%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Interactive Brokers, which belongs to the Zacks Financial - Investment Bank industry, posted revenues of $1.87 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 1.86%. This compares to year-ago revenues of $1.61 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Interactive Brokers shares have added about 30.8% since the beginning of the year versus the S&P 500's gain of 12.8%. While Interactive Brokers has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Interactive Brokers was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.71 on $1.94 billion in revenues for the coming quarter and $2.70 on $7.34 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Bank is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Tradeweb Markets (TW), another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on October 29. This electronic marketplaces operator is expected to post quarterly earnings of $1.01 per share in its upcoming report, which represents a year-over-year change of +16.1%. The consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. Tradeweb Markets' revenues are expected to be $573.9 million, up 12.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report Tradeweb Markets Inc. (TW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

GAAP DILUTED EPS OF $0.69, ADJUSTED1 EPS OF $0.67 GAAP NET REVENUES OF $1.91 BILLION, ADJUSTED NET REVENUES OF $1.87 BILLION RAISES QUARTERLY DIVIDEND FROM $0.0875 TO $0.15 GREENWICH, Conn., October 15, 2026--(BUSINESS WIRE)--Interactive Brokers Group, Inc. (Nasdaq: IBKR), an automated global broker, announced results for the quarter ended September 30, 2026. Reported diluted earnings per share were $0.69 for the current quarter and $0.67 as adjusted. For the year-ago quarter, reported diluted earnings per share were $0.59 and $0.57 as adjusted. Reported net revenues were $1.91 billion for the current quarter and $1.87 billion as adjusted. For the year-ago quarter, reported net revenues were $1.66 billion and $1.61 billion as adjusted. Reported income before income taxes was $1.50 billion for the current quarter and $1.45 billion as adjusted. For the year-ago quarter, reported income before income taxes were $1.31 billion and $1.27 billion as adjusted. Financial Highlights (All comparisons are to the year-ago quarter.) - Commission revenue increased 12% to $602 million on 18% higher DARTs2 and higher regulatory fees, which are passed through to customers. Customer trading volume in futures increased 13%, while stocks and options volumes decreased 24% and 1%, respectively. - Net interest income increased 19% to $1.15 billion, primarily on higher average customer margin loans and customer credit balances. - Other fees and services increased 33% to $88 million, led by increases of $11 million in risk exposure fees, $3 million in payments for order flow from exchange-mandated programs, and $3 million in market data fees. - Execution, clearing and distribution fees increased 46% to $134 million, mainly driven by a $30 million increase in regulatory fees due to a higher SEC Section 31 transaction fee rate. - Pretax profit margin for the current quarter was 78% both as reported and as adjusted. For the year-ago quarter, pretax margin was 79% both as reported and as adjusted. - Total equity of $23.3 billion. The Interactive Brokers Group, Inc. Board of Directors declared an increase in the quarterly cash dividend from $0.0875 per share to $0.15 per share. This dividend is payable on December 14, 2026, to shareholders of record as of December 1, 2026. Business Highlights (All comparisons are to the year-ago quarter.) - Customer accounts increased 35% to 5.58 million. - Customer equity increased 27% to $964.7 billion. - Total DARTs increased 18% to 4.27 million. - Customer credits increased 20% to $186.2 billion. - Customer margin loans increased 36% to $105.2 billion. Other Items Other income decreased 18% to $70 million. This decrease is comprised mainly of $50 million from our investing activities; partially offset by an increase of $36 million from our currency diversification strategy. In connection with our currency diversification strategy, we base our net worth in GLOBALs, a basket of 10 major currencies in which we hold our equity. In this quarter, our currency diversification strategy decreased our comprehensive earnings by $4 million, as the U.S. dollar value of the GLOBAL decreased by approximately 0.08%. The effects of the currency diversification strategy are reported as components of (1) Other Income (gain of $40 million) and (2) Other Comprehensive Income (loss of $44 million). Conference Call Information: Interactive Brokers Group, Inc. will hold a conference call with investors today, October 15, 2026, at 4:30 p.m. ET to discuss its quarterly results. Members of the public who would like to listen to the conference call should register at https://register-conf.media-server.com/register/BIb1b909eee7384370b303f70792b710c8 to obtain the dial-in details. The number should be dialed approximately ten minutes prior to the start of the conference call. The conference call will also be accessible simultaneously, and through replays, as an audio webcast through the Investor Relations section of the Interactive Brokers web site, www.interactivebrokers.com/ir. About Interactive Brokers Group, Inc.: Interactive Brokers Group, Inc. (NASDAQ: IBKR) is a member of the S&P 500. Its affiliates provide automated trade execution and custody of securities, commodities, foreign exchange, and prediction markets around the clock on over 175 markets in numerous countries and currencies from a single unified platform to clients worldwide. We serve individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation have enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Interactive Brokers has consistently earned recognition as a top broker, garnering multiple awards and accolades from respected industry sources such as Barron's, Investopedia, Stockbrokers.com, and many others. Cautionary Note Regarding Forward-Looking Statements: The foregoing information contains certain forward-looking statements that reflect the Company's current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company's operations and business environment which may cause the Company's actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. Any forward-looking statements in this release are based upon information available to the Company on the date of this release. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the Company's financial results may be found in the Company's filings with the Securities and Exchange Commission. ______________ 1 See the reconciliation of non-GAAP financial measures starting on page 11. 2 Daily average revenue trades (DARTs) are based on customer orders. INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | | Three Months | | | Nine Months | | | Ended September 30, | | | Ended September 30, | | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | | | | | | | | | | | | | | | | | (in millions, except share and per share data) | | | | | | | | | | | | | | | | | Revenues: | | | | | | | | | | | | | | | | Commissions | | $ | 602 | | | $ | 537 | | | $ | 1,888 | | | $ | 1,567 | Other fees and services | | | 88 | | | | 66 | | | | 261 | | | | 206 | Other income | | | 70 | | | | 85 | | | | 215 | | | | 192 | Total non-interest income | | | 760 | | | | 688 | | | | 2,364 | | | | 1,965 | | | | | | | | | | | | | | | | | Interest income | | | 2,433 | | | | 2,101 | | | | 6,616 | | | | 5,710 | Interest expense | | | (1,279 | ) | | | (1,134 | ) | | | (3,501 | ) | | | (3,113 | ) Total net interest income | | | 1,154 | | | | 967 | | | | 3,115 | | | | 2,597 | Total net revenues | | | 1,914 | | | | 1,655 | | | | 5,479 | | | | 4,562 | | | | | | | | | | | | | | | | | Non-interest expenses: | | | | | | | | | | | | | | | | Execution, clearing and distribution fees | | | 134 | | | | 92 | | | | 382 | | | | 329 | Employee compensation and benefits | | | 167 | | | | 156 | | | | 516 | | | | 473 | Occupancy, depreciation and amortization | | | 29 | | | | 24 | | | | 83 | | | | 72 | Communications | | | 11 | | | | 11 | | | | 34 | | | | 32 | General and administrative | | | 78 | | | | 62 | | | | 214 | | | | 185 | Customer bad debt | | | (1 | ) | | | (2 | ) | | | 10 | | | | - | Total non-interest expenses | | | 418 | | | | 343 | | | | 1,239 | | | | 1,091 | | | | | | | | | | | | | | | | | Income before income taxes | | | 1,496 | | | | 1,312 | | | | 4,240 | | | | 3,471 | Income tax expense | | | 148 | | | | 126 | | | | 383 | | | | 315 | | | | | | | | | | | | | | | | | Net income | | | 1,348 | | | | 1,186 | | | | 3,857 | | | | 3,156 | Net income attributable to noncontrolling interests | | | 1,034 | | | | 923 | | | | 2,964 | | | | 2,456 | | | | | | | | | | | | | | | | | Net income available for common stockholders | | $ | 314 | | | $ | 263 | | | $ | 893 | | | $ | 700 | | | | | | | | | | | | | | | | | Earnings per share: | | | | | | | | | | | | | | | | Basic | | $ | 0.69 | | | $ | 0.59 | | | $ | 1.99 | | | $ | 1.59 | Diluted | | $ | 0.69 | | | $ | 0.59 | | | $ | 1.98 | | | $ | 1.58 | | | | | | | | | | | | | | | | | Weighted average common shares outstanding: | | | | | | | | | | | | | | | | Basic | | | 452,266,631 | | | | 444,060,813 | | | | 448,564,570 | | | | 439,434,716 | Diluted | | | 453,923,924 | | | | 446,528,983 | | | | 450,818,725 | | | | 442,507,940 | INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) | | Three Months | | | Nine Months | | | Ended September 30, | | | Ended September 30, | | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | | | | | | | | | | | | | | | | | (in millions, except share and per share data) | | | | | | | | | | | | | | | | | Comprehensive income: | | | | | | | | | | | | | | | | Net income available for common stockholders | | $ | 314 | | | $ | 263 | | | $ | 893 | | | $ | 700 | Other comprehensive income: | | | | | | | | | | | | | | | | Cumulative translation adjustment, before income taxes | | | (12 | ) | | | (10 | ) | | | (48 | ) | | | 97 | Income taxes related to items of other comprehensive income | | | - | | | | - | | | | - | | | | - | Other comprehensive income (loss), net of tax | | | (12 | ) | | | (10 | ) | | | (48 | ) | | | 97 | Comprehensive income available for common stockholders | | $ | 302 | | | $ | 253 | | | $ | 845 | | | $ | 797 | | | | | | | | | | | | | | | | | Comprehensive earnings per share: | | | | | | | | | | | | | | | | Basic | | $ | 0.67 | | | $ | 0.57 | | | $ | 1.88 | | | $ | 1.81 | Diluted | | $ | 0.67 | | | $ | 0.57 | | | $ | 1.87 | | | $ | 1.80 | | | | | | | | | | | | | | | | | Weighted average common shares outstanding: | | | | | | | | | | | | | | | | Basic | | | 452,266,631 | | | | 444,060,813 | | | | 448,564,570 | | | | 439,434,716 | Diluted | | | 453,923,924 | | | | 446,528,983 | | | | 450,818,725 | | | | 442,507,940 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Comprehensive income attributable to noncontrolling interests: | | | | | | | | | | | | | | | | Net income attributable to noncontrolling interests | | $ | 1,034 | | | $ | 923 | | | $ | 2,964 | | | $ | 2,456 | Other comprehensive income - cumulative translation adjustment | | | (32 | ) | | | (28 | ) | | | (132 | ) | | | 278 | Comprehensive income attributable to noncontrolling interests | | $ | 1,002 | | | $ | 895 | | | $ | 2,832 | | | $ | 2,734 | INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) | | | | | September 30, 2026 | | December 31, 2025 | | | | | | | | | | | | | | (in millions) | | | | | | | | | Assets | | | | | | | | | Cash and cash equivalents | | | | | $ | 5,935 | | $ | 4,963 Cash - segregated for regulatory purposes | | | | | | 58,695 | | | 50,332 Securities - segregated for regulatory purposes | | | | | | 38,376 | | | 26,521 Securities borrowed | | | | | | 12,086 | | | 11,589 Securities purchased under agreements to resell | | | | | | 10,005 | | | 7,117 Financial instruments owned, at fair value | | | | | | 4,896 | | | 4,982 Receivables from customers, net of allowance for credit losses | | | | | | 105,592 | | | 90,475 Receivables from brokers, dealers and clearing organizations | | | | | | 5,012 | | | 5,161 Other assets | | | | | | 2,638 | | | 2,100 Total assets | | | | | $ | 243,235 | | $ | 203,240 | | | | | | | | | Liabilities and equity | | | | | | | | | | | | | | | | | | Liabilities | | | | | | | | | Short-term borrowings | | | | | $ | 18 | | $ | 19 Securities loaned | | | | | | 35,212 | | | 24,751 Financial instruments sold but not yet purchased, at fair value | | | | | | 756 | | | 740 Other payables: | | | | | | | | | Customers | | | | | | 180,451 | | | 154,336 Brokers, dealers and clearing organizations | | | | | | 1,890 | | | 1,566 Other payables | | | | | | 1,657 | | | 1,356 | | | | | | 183,998 | | | 157,258 Total liabilities | | | | | | 219,984 | | | 182,768 | | | | | | | | | Equity | | | | | | | | | Stockholders' equity | | | | | | 6,215 | | | 5,363 Noncontrolling interests | | | | | | 17,036 | | | 15,109 Total equity | | | | | | 23,251 | | | 20,472 Total liabilities and equity | | | | | $ | 243,235 | | $ | 203,240 | | | | | | | | | | | | | | | | | | | September 30, 2026 | | | December 31, 2025 Ownership of IBG LLC Membership Interests | Interests | | % | | | Interests | | | % | | | | | | | | | IBG, Inc. | 453,172,548 | | 26.6% | | | 445,612,825 | | | 26.3% Noncontrolling interests (IBG Holdings LLC) | 1,248,237,849 | | 73.4% | | | 1,250,737,416 | | | 73.7% Total IBG LLC membership interests | 1,701,410,397 | | 100.0% | | | 1,696,350,241 | | | 100.0% INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES OPERATING DATA EXECUTED ORDER VOLUMES: | | | | | | | | (in 000's, except %) | | | | | | | | | | | | | | Customer | | % | | Principal | | % | | Total | | % Period | | Orders | | Change | | Orders | | Change | | Orders | | Change 2023 | | 483,015 | | | | 29,712 | | | | 512,727 | | 2024 | | 661,666 | | 37% | | 63,348 | | 113% | | 725,014 | | 41% 2025 | | 915,616 | | 38% | | 121,972 | | 93% | | 1,037,588 | | 43% | | | | | | | | | | | | 3Q2025 | | 229,635 | | | | 30,659 | | | | 260,294 | | 3Q2026 | | 273,486 | | 19% | | 37,616 | | 23% | | 311,102 | | 20% | | | | | | | | | | | | 2Q2026 | | 299,110 | | | | 45,070 | | | | 344,180 | | 3Q2026 | | 273,486 | | (9%) | | 37,616 | | (17%) | | 311,102 | | (10%) | | | | | | | | | | | | CONTRACT AND SHARE VOLUMES: | | | | | | | | (in 000's, except %) | | | | | | | | | | | | | | | | | | | | | | | | TOTAL | | | | | | | | | | | | | | Options | | % | | Futures1 | | % | | Stocks | | % Period | | (contracts) | | Change | | (contracts) | | Change | | (shares) | | Change 2023 | | 1,020,736 | | | | 209,034 | | | | 252,742,847 | | 2024 | | 1,344,855 | | 32% | | 218,327 | | 4% | | 307,489,711 | | 22% 2025 | | 1,668,228 | | 24% | | 241,631 | | 11% | | 421,707,895 | | 37% | | | | | | | | | | | | 3Q2025 | | 428,524 | | | | 52,233 | | | | 119,250,686 | | 3Q2026 | | 426,182 | | (1%) | | 59,134 | | 13% | | 91,432,625 | | (23%) | | | | | | | | | | | | 2Q2026 | | 459,831 | | | | 65,909 | | | | 109,464,979 | | 3Q2026 | | 426,182 | | (7%) | | 59,134 | | (10%) | | 91,432,625 | | (16%) | | | | | | | | | | | | CUSTOMER | | | | | | | | | | | | | | Options | | % | | Futures1 | | % | | Stocks | | % Period | | (contracts) | | Change | | (contracts) | | Change | | (shares) | | Change 2023 | | 981,172 | | | | 206,073 | | | | 248,588,960 | | 2024 | | 1,290,770 | | 32% | | 214,864 | | 4% | | 302,040,873 | | 22% 2025 | | 1,623,384 | | 26% | | 240,120 | | 12% | | 417,457,770 | | 38% | | | | | | | | | | | | 3Q2025 | | 418,389 | | | | 51,936 | | | | 118,307,826 | | 3Q2026 | | 415,215 | | (1%) | | 58,677 | | 13% | | 90,219,440 | | (24%) | | | | | | | | | | | | 2Q2026 | | 446,906 | | | | 65,337 | | | | 108,174,094 | | 3Q2026 | | 415,215 | | (7%) | | 58,677 | | (10%) | | 90,219,440 | | (17%) | | | | | | | | | | | | PRINCIPAL | | | | | | | | | | | | | | Options | | % | | Futures1 | | % | | Stocks | | % Period | | (contracts) | | Change | | (contracts) | | Change | | (shares) | | Change 2023 | | 39,564 | | | | 2,961 | | | | 4,153,887 | | 2024 | | 54,085 | | 37% | | 3,463 | | 17% | | 5,448,838 | | 31% 2025 | | 44,844 | | (17%) | | 1,511 | | (56%) | | 4,250,125 | | (22%) | | | | | | | | | | | | 3Q2025 | | 10,135 | | | | 297 | | | | 942,860 | | 3Q2026 | | 10,967 | | 8% | | 457 | | 54% | | 1,213,185 | | 29% | | | | | | | | | | | | 2Q2026 | | 12,925 | | | | 572 | | | | 1,290,885 | | 3Q2026 | | 10,967 | | (15%) | | 457 | | (20%) | | 1,213,185 | | (6%) ________________________ 1 Includes options on futures. INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES OPERATING DATA, CONTINUED Year over Year | | | 3Q2026 | | | 3Q2025 | | % Change Total Accounts (in thousands) | | | 5,576 | | | 4,127 | | 35% Customer Equity (in billions)1 | | $ | 965 | | $ | 758 | | 27% | | | | | | | | Total Customer DARTs (in thousands) | | | 4,273 | | | 3,616 | | 18% | | | | | | | | Cleared Customers | | | | | | | | Commission per Cleared Commissionable Order2 | | $ | 2.59 | | $ | 2.70 | | (4%) Cleared Avg. DARTs per Account (Annualized) | | | 168 | | | 195 | | (14%) | | | | | | | | Consecutive Quarters | | | 3Q2026 | | | 2Q2026 | | % Change Total Accounts (in thousands) | | | 5,576 | | | 5,185 | | 8% Customer Equity (in billions)1 | | $ | 965 | | $ | 930 | | 4% | | | | | | | | Total Customer DARTs (in thousands) | | | 4,273 | | | 4,824 | | (11%) | | | | | | | | Cleared Customers | | | | | | | | Commission per Cleared Commissionable Order2 | | $ | 2.59 | | $ | 2.64 | | (2%) Cleared Avg. DARTs per Account (Annualized) | | | 168 | | | 207 | | (19%) ________________________ 1 Excludes non-Customers. 2 Commissionable Order - a customer order that generates commissions. INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES NET INTEREST MARGIN (UNAUDITED) | | Three Months | | | Nine Months | | | Ended September 30, | | | Ended September 30, | | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | | | | | | | | | | | | | | | | | (in millions) | | | | | | | | | | | | | | | | | Average interest-earning assets | | | | | | | | | | | | | | | | Segregated cash and securities | | $ | 95,092 | | | $ | 81,906 | | | $ | 92,344 | | | $ | 75,934 | Customer margin loans | | | 104,032 | | | | 70,805 | | | | 96,654 | | | | 65,380 | Securities borrowed | | | 12,290 | | | | 9,037 | | | | 10,075 | | | | 6,995 | Other interest-earning assets | | | 19,468 | | | | 16,037 | | | | 18,503 | | | | 14,784 | FDIC sweeps1 | | | 6,364 | | | | 5,962 | | | | 6,366 | | | | 5,329 | | | $ | 237,246 | | | $ | 183,747 | | | $ | 223,942 | | | $ | 168,422 | | | | | | | | | | | | | | | | | Average interest-bearing liabilities | | | | | | | | | | | | | | | | Customer credit balances | | $ | 176,566 | | | $ | 141,763 | | | $ | 168,637 | | | $ | 130,262 | Securities loaned | | | 36,203 | | | | 20,691 | | | | 31,710 | | | | 18,007 | Other interest-bearing liabilities | | | 376 | | | | 361 | | | | 361 | | | | 160 | | | $ | 213,145 | | | $ | 162,815 | | | $ | 200,708 | | | $ | 148,429 | | | | | | | | | | | | | | | | | Net interest income | | | | | | | | | | | | | | | | Segregated cash and securities, net2 | | $ | 815 | | | $ | 786 | | | $ | 2,307 | | | $ | 2,205 | Customer margin loans4 | | | 1,114 | | | | 821 | | | | 3,007 | | | | 2,305 | Securities borrowed and loaned, net3 | | | 65 | | | | 133 | | | | 142 | | | | 204 | Customer credit balances, net4 | | | (1,028 | ) | | | (945 | ) | | | (2,848 | ) | | | (2,619 | ) Other net interest income1/5 | | | 225 | | | | 204 | | | | 636 | | | | 559 | Net interest income5 | | $ | 1,191 | | | $ | 999 | | | $ | 3,244 | | | $ | 2,654 | | | | | | | | | | | | | | | | | Net interest margin ("NIM") | | | 1.99 | % | | | 2.16 | % | | | 1.94 | % | | | 2.11 | % | | | | | | | | | | | | | | | | Annualized yields | | | | | | | | | | | | | | | | Segregated cash and securities | | | 3.40 | % | | | 3.81 | % | | | 3.34 | % | | | 3.88 | % Customer margin loans | | | 4.25 | % | | | 4.60 | % | | | 4.16 | % | | | 4.71 | % Customer credit balances | | | 2.31 | % | | | 2.64 | % | | | 2.26 | % | | | 2.69 | % ________________________ 1 Represents the average amount of customer cash swept into FDIC-insured banks as part of our Insured Bank Deposit Sweep Program. This item is not recorded in the Company's consolidated statements of financial condition. Income derived from program deposits is reported in other net interest income in the table above. 2 Net interest income on "Segregated cash and securities, net" for the nine months ended September 30, 2025, excludes approximately $26 million of interest income, recorded in the consolidated statements of comprehensive income, related to taxes withheld at source in prior periods which was determined to be fully refundable. 3 We estimate that if the interest earned and paid on cash collateral related to our securities lending transactions were included under "Securities borrowed and loaned, net" in the table above, the total net interest income related to our securities lending activities would have been $427 million and $1,039 million for the three and nine months ended September 30, 2026, respectively, compared to $314 million and $751 million for the three and nine months ended September 30, 2025, respectively. Such additional interest attributed to our securities lending activities would be reclassified from net interest income on "Segregated cash and securities, net" and "Customer credit balances, net" in the table above, so it would have no effect on our overall net interest income or net interest margin. 4 Interest income and interest expense on customer margin loans and customer credit balances, respectively, are calculated on daily cash balances within each customer's account on a net basis, which may result in an offset of balances across multiple account segments (e.g., between securities and commodities segments). 5 Includes income from financial instruments that has the same characteristics as interest but is reported in "Other fees and services" and "Other income" in the Company's consolidated statements of comprehensive income. For the three and nine months ended September 30, 2026 and 2025, $11 million, $33 million, $10 million, and $27 million were reported in "Other fees and services", respectively. For the three and nine months ended September 30, 2026 and 2025, $26 million, $96 million, $22 million, and $56 million were reported in "Other income", respectively. INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED) | | Three Months | | | Nine Months | | | Ended September 30, | | | Ended September 30, | | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | | Adjusted net revenues1 (in millions) | | | | | | | | | | | | | | | | Net revenues - GAAP | | $ | 1,914 | | | $ | 1,655 | | | $ | 5,479 | | | $ | 4,562 | Non-GAAP adjustments | | | | | | | | | | | | | | | | Currency diversification strategy, net | | | (40 | ) | | | (4 | ) | | | (87 | ) | | | (19 | ) Mark-to-market on investments2 | | | (3 | ) | | | (41 | ) | | | 42 | | | | (57 | ) Total non-GAAP adjustments4 | | | (42 | ) | | | (45 | ) | | | (44 | ) | | | (76 | ) Adjusted net revenues4 | | $ | 1,872 | | | $ | 1,610 | | | $ | 5,435 | | | $ | 4,486 | | | | | | | | | | | | | | | | | Adjusted income before income taxes1 (in millions) | | | | | | | | | | | | | | | | Income before income taxes - GAAP | | $ | 1,496 | | | $ | 1,312 | | | $ | 4,240 | | | $ | 3,471 | Non-GAAP adjustments | | | | | | | | | | | | | | | | Currency diversification strategy, net | | | (40 | ) | | | (4 | ) | | | (87 | ) | | | (19 | ) Mark-to-market on investments2 | | | (3 | ) | | | (41 | ) | | | 42 | | | | (57 | ) Total non-GAAP adjustments4 | | | (42 | ) | | | (45 | ) | | | (44 | ) | | | (76 | ) Adjusted income before income taxes4 | | $ | 1,454 | | | $ | 1,267 | | | $ | 4,196 | | | $ | 3,395 | | | | | | | | | | | | | | | | | Adjusted pre-tax profit margin | | | 78 | % | | | 79 | % | | | 77 | % | | | 76 | % | | | | | | | | | | | | | | | | Adjusted net income available for common stockholders1 (in millions) | | | | | | | | | Net income available for common stockholders - GAAP | | $ | 314 | | | $ | 263 | | | $ | 893 | | | $ | 700 | Non-GAAP adjustments | | | | | | | | | | | | | | | | Currency diversification strategy, net | | | (11 | ) | | | (1 | ) | | | (23 | ) | | | (5 | ) Mark-to-market on investments2 | | | (1 | ) | | | (11 | ) | | | 11 | | | | (15 | ) Income tax effect of above adjustments3 | | | 2 | | | | 3 | | | | 2 | | | | 5 | Total non-GAAP adjustments4 | | | (9 | ) | | | (9 | ) | | | (10 | ) | | | (15 | ) Adjusted net income available for common stockholders4 | | $ | 305 | | | $ | 253 | | | $ | 883 | | | $ | 684 | | | | | | | | | | | | | | | | | Adjusted diluted EPS1 (in dollars, except share amounts) | | | | | | | | | | | | | Diluted EPS - GAAP | | $ | 0.69 | | | $ | 0.59 | | | $ | 1.98 | | | $ | 1.58 | Non-GAAP adjustments | | | | | | | | | | | | | | | | Currency diversification strategy, net | | | (0.02 | ) | | | (0.00 | ) | | | (0.05 | ) | | | (0.01 | ) Mark-to-market on investments2 | | | (0.00 | ) | | | (0.02 | ) | | | 0.03 | | | | (0.03 | ) Income tax effect of above adjustments3 | | | 0.01 | | | | 0.01 | | | | 0.00 | | | | 0.02 | Total non-GAAP adjustments4 | | | (0.02 | ) | | | (0.02 | ) | | | (0.02 | ) | | | (0.03 | ) Adjusted diluted EPS4 | | $ | 0.67 | | | $ | 0.57 | | | $ | 1.96 | | | $ | 1.55 | | | | | | | | | | | | | | | | | Diluted weighted average common shares outstanding | | | 453,923,924 | | | | 446,528,983 | | | | 450,818,725 | | | | 442,507,940 | Note: The term "GAAP" in the following explanation refers to generally accepted accounting principles in the United States. 1 Adjusted net revenues, adjusted income before income taxes, adjusted net income available for common stockholders and adjusted diluted earnings per share ("EPS") are non-GAAP financial measures. We define adjusted net revenues as net revenues adjusted to remove the effect of our currency diversification strategy and our net mark-to-market gains (losses) on investments2. We define adjusted income before income taxes as income before income taxes adjusted to remove the effect of our currency diversification strategy and our net mark-to-market gains (losses) on investments. We define adjusted net income available to common stockholders as net income available for common stockholders adjusted to remove the after-tax effects attributable to IBG, Inc. of our currency diversification strategy and our net mark-to-market gains (losses) on investments. We define adjusted diluted EPS as adjusted net income available for common stockholders divided by the diluted weighted average number of shares outstanding for the period. Management believes these non-GAAP items are important measures of our financial performance because they exclude certain items that may not be indicative of our core operating results and business outlook and may be useful to investors and analysts in evaluating the operating performance of the business and facilitating a meaningful comparison of our results in the current period to those in prior and future periods. Our currency diversification strategy and our mark-to-market on investments are excluded because management does not believe they are indicative of our underlying core business performance. Adjusted net revenues, adjusted income before income taxes, adjusted net income available to common stockholders and adjusted diluted EPS should be considered in addition to, rather than as a substitute for, GAAP net revenues, income before income taxes, net income attributable to common stockholders and diluted EPS. 2 Mark-to-market on investments represents the net mark-to-market gains (losses) on investments in equity securities that do not qualify for equity method accounting, which are measured at fair value; on our U.S. government and municipal securities portfolios, which are typically held to maturity; and on certain other investments. 3 The income tax effect is estimated using the statutory income tax rates applicable to the Company. 4 Amounts may not add due to rounding. View source version on businesswire.com: https://www.businesswire.com/news/home/20261015881618/en/ Contacts For Interactive Brokers Group, Inc. Investors: Nancy Stuebe, [email protected] or Media: Rob Garfield, [email protected].

- Interested in Interactive Brokers Group, Inc.? Here are five stocks we like better. - Interactive Brokers delivered record third-quarter 2026 pretax income, with a 78% pretax margin, customer accounts growing more than 30%, commissions up 12% to $602 million and net interest income up 19% to over $1.1 billion. - The company raised its annual dividend to $0.60 from $0.35, citing strong financial performance, a debt-free balance sheet and confidence in future growth. - Growth initiatives expanded across overnight trading, prediction markets, cryptocurrency services and AI-enabled trading. Overnight trades exceeded 10 million, while the company began a limited rollout allowing eligible customers to authorize autonomous AI agents to trade. - Want Private-Market Access to Kalshi and Polymarket? Try This ETF Interactive Brokers Group (NASDAQ:IBKR) reported record pre-tax income in the third quarter of 2026, supported by continued customer-account growth, higher margin balances and expanding net interest income. The company also raised its annual dividend to $0.60 from $0.35, citing confidence in its business model, growth outlook and capital position. Director of Investor Relations Nancy Stuebe, presenting remarks from President and CEO Milan Galik, said the company recorded more than 30% account growth across institutional and individual clients and in all regions. Its pre-tax margin reached 78%, marking the eighth straight quarter above 70%. → A Silent Winner: Texas Instruments Anchors the AI Supercycle - Up All Night: How Nasdaq's 23-Hour Trading Could Wake Up Wall Street The company said investor interest remained concentrated in global technology stocks during the period, while overnight trading continued to grow. Overnight trading rose to more than 10 million trades in the third quarter, compared with 3.5 million in the year-earlier period. CFO Paul Brody said commissions increased 12% from the prior-year quarter to $602 million, the third consecutive quarter in which commission revenue exceeded $600 million. Net interest income rose 19% to more than $1.1 billion, driven mainly by larger customer balances and growth in margin borrowing. → A Chinese Rival Just Spooked Memory Stocks—How Worried Should Micron Investors Be? - Not Just Banks: 3 Trading Stocks to Watch After the Fed Rate Hike Other fees and services climbed 33% to $88 million, primarily reflecting higher risk-exposure fees, increased market-data fees and stronger options-related payments from exchange-mandated order-flow programs, Brody said. Total customer daily average revenue trades, or DARTs, increased 18% year over year to 4.3 million per day. Futures-contract activity was up 13%, while options volume declined slightly and stock-share volume fell 24%. Brody attributed the reduction in stock-share volume largely to less activity in lower-priced stocks, noting that clients gravitated toward larger, higher-quality names. → Delta's Guidance Cut Could Spell Trouble for the Airline Industry Commission per cleared commissionable order was $2.59, down 4% from a year earlier due to smaller order sizes across product categories. Execution, clearing and distribution costs increased 46% year over year to $134 million. Brody said the increase primarily resulted from the return of SEC regulatory fees, which had been zero in the third quarter of the prior year and totaled $30 million during the latest quarter. Because those charges are largely passed through to customers, they increase both commission revenue and execution costs without affecting profitability, he said. Interactive Brokers reported total assets of $243 billion, up 21% from the prior year. Firm equity rose 19% to $23.3 billion, while the company continued to report no long-term debt. The company raised its annual dividend to $0.60, or $0.15 quarterly. Founder and Chairman Thomas Peterffy said the company generally seeks to pay dividends representing between 0.5% and 1% of its market value and had "fallen somewhat behind" that range. Peterffy said he did not anticipate a scenario in which the company would reduce its dividend. Brody said the company's financial performance and balance-sheet strength enabled it to return more capital to shareholders while retaining ample capital to support the current business and future opportunities. Interactive Brokers introduced or expanded several products during the quarter. The company added access to the Bucharest Stock Exchange, the Texas Stock Exchange and a new options exchange intended to support liquidity for larger options orders. In Brazil, it launched B3 futures trading on financial indexes, cryptocurrencies and commodities. The company also began a limited cryptocurrency-staking rollout and expanded offerings for Japanese clients, including margin lending, fully paid securities lending and its Gaika+ product for earning interest on eligible non-yen cash balances. For prediction markets, Interactive Brokers added short-duration event contracts with hourly and 15-minute expirations in cryptocurrency, metals and energy. Peterffy said the company now offers access to ForecastEx, Kalshi and CME prediction-market platforms and is working to integrate Polymarket. "The integrations are delivering the results that we were hoping for," Peterffy said, adding that the additional venues have expanded overall volume and given customers a broader product range, deeper liquidity and better execution prices. The company is also preparing to offer potential single-stock key performance indicator contracts from Cboe when available. Peterffy said those contracts would be displayed through the company's existing prediction-market interface and also made available on standard options screens. Interactive Brokers continued to build out its AI Connector, adding Perplexity as an official partner and expanding compatibility to AI tools using the Model Context Protocol. The company added account-level profit-and-loss information, alerts, watchlists and two-leg options strategies to the product. It also started a limited rollout of autonomous AI trading, allowing eligible customers to authorize compatible AI agents to trade in dedicated account partitions. Peterffy said about 3,000 customers who had used the human-in-the-loop AI Connector had been invited initially, with broader eligibility planned over the following weeks. Peterffy said the company expects AI adoption to increase trading activity over time as investors use AI to process more information, monitor more companies and implement strategies more efficiently. The company is targeting growth among registered investment advisors through tax-aware long-short strategies. Peterffy said assets in those strategies totaled about $300 million at the end of the quarter. Interactive Brokers has three tax-aware strategy providers onboarded, including AQR, and expects to add more. Peterffy said the strategies are suited to larger accounts and align with the company's existing capabilities in margin financing, short selling and securities lending. The company is also working to simplify RIA onboarding and improve integrations with multi-custodial platforms. Peterffy said these efforts could help advisors that currently use competing custodians bring business to Interactive Brokers. He also said the company sees an opportunity to attract smaller RIAs following a competitor's planned minimum-asset threshold, describing Interactive Brokers as an "obvious choice" for advisors seeking another platform. In the introducing-broker business, Peterffy said the pipeline remained broadly consistent with recent quarters, with numerous integrations in progress and some already live. During the quarter, South Korean brokerage Daol Investment & Securities launched a global securities trading platform powered by Interactive Brokers technology and trading infrastructure. Looking ahead, management said it did not see concerns from the moderation in client activity compared with the second quarter. Peterffy cited delayed IPO activity and said the company expects volatility could rise approaching the midterm elections, which historically tends to increase customer trading activity. Interactive Brokers Group, Inc is a global electronic brokerage company that provides trading, investment and custody services to individual investors, financial advisors, hedge funds, proprietary trading firms, family offices and other institutional clients. The company offers access to a broad range of markets and financial instruments, including stocks, options, futures, currencies, bonds, exchange-traded funds and mutual funds. Interactive Brokers provides its services through digital platforms such as Trader Workstation, IBKR Mobile and Client Portal, along with application programming interfaces for clients seeking automated or integrated trading capabilities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Interactive Brokers Group Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.