Interactive Brokers (IBKR) Stock: Q4 Earnings Crush Expectations as Trading Volume Soars

TLDR

• Interactive Brokers reported Q4 adjusted earnings of 65 cents per share, beating Wall Street’s estimate of 59 cents, with revenue reaching $1.64 billion versus the expected $1.6 billion.
• Customer accounts surged 32% year over year to 4.4 million, while daily average revenue trades jumped 30% to 4.04 million.
• Client equity climbed 37% to $780 billion, marking the first time the company ended the year with over $0.75 trillion in client assets.
• The company’s prediction market exchange ForecastEx traded 286 million pairs in Q4, up from 15 million pairs in Q3, with temperature contracts being the most frequently traded.
• Interactive Brokers began allowing customers to fund accounts using stablecoins, enabling faster deposits and lower transaction costs for international investors.

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Interactive Brokers posted fourth-quarter results that sailed past Wall Street forecasts. The brokerage firm reported adjusted earnings per share of 65 cents against analyst expectations of 59 cents.

Revenue hit $1.64 billion for the quarter. That topped the consensus estimate of $1.6 billion.

The year-ago quarter showed adjusted earnings of 51 cents on revenue of $1.4 billion. The current numbers represent solid growth across the board.

Shares dipped 0.5% in after-hours trading. The broader market fell on concerns about President Donald Trump’s recent tariff threats against European nations.

Interactive Brokers Group, Inc., IBKR

The company added more than 1 million net new accounts during 2025. That’s an annual record for the firm.

Customer accounts reached 4.4 million at quarter’s end. That’s a 32% jump from the same period last year.

Total daily average revenue trades climbed 30% to 4.04 million. Customer margin loans increased 40% to $90.2 billion.

Client Assets Hit Record Territory

Client equity rose 37% to $780 billion. This marks the first time the company closed the year with over $0.75 trillion in client assets.

Individual investors averaged returns of 19.2% in 2025. Financial advisers posted average gains of 20.57%.

Hedge fund clients saw the strongest performance at 28.91% average returns. These figures topped the S&P 500’s performance for the year.

Commission revenues reached a record $582 million for the quarter. Net interest income hit $966 million despite multiple rate cuts across major currencies.

The company’s pretax margin matched the third quarter record at 79%. The full year pretax margin set a new record at 77%.

Prediction Markets and Crypto Expansion

ForecastEx, the company’s prediction market exchange, traded 286 million pairs in Q4. That’s up from 15 million pairs in the third quarter.

Temperature contracts emerged as the most frequently traded instruments. Company founder Thomas Peterffy said Interactive Brokers is working to tie these to natural gas and electricity contracts.

The platform targets institutional customers rather than sports betting. Peterffy believes the utility sector represents a key growth opportunity.

Interactive Brokers launched stablecoin funding for customer accounts last week. The feature lets clients deposit U.S. dollar-backed digital assets.

International customers can avoid wire transfer fees with this option. CEO Milan Galik said clients can transfer funds and begin trading within minutes.

Trading volume during overnight hours grew 76% from the previous quarter. That’s more than 130% higher than the fourth quarter of last year.

Options contract volumes rose 27% over the prior year quarter. Futures contract volumes increased 22%, while stock share volumes grew 16%.

The company expanded market access to Brazil, Taiwan, the UAE, and Slovenia. It also launched new tax-advantaged accounts in Sweden, Japan, and Canada.

The GlobalTrader 2.0 mobile platform debuted with AI-powered tools. These include the “Ask IBKR” feature and AI-generated news summaries.

Firm equity exceeded $20 billion for the first time. Net revenues surpassed $6 billion for the full year.

The bank charter application process continues, with management expecting to be operational by year-end if approved. The company also plans a European banking license, likely in Ireland.

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