Interactive Brokers Group, Inc. Class A (IBKR.US) Q1 revenue increased by 19% year-on-year, with daily average revenue trading up 50%.

date
16/04/2025
avatar
GMT Eight
Interactive Brokers Group, Inc. Class A (IBKR.US) announced that in the first quarter, driven by double-digit growth in interest income and trading commissions, the company saw a significant jump in both profit and revenue. The financial report released on Tuesday showed an adjusted earnings per share of $1.88. According to GAAP standards, net revenue increased by 19% year-on-year to $1.43 billion, with adjusted net revenue at $1.40 billion. The pre-tax profit margin rose slightly to 74%. The growth in performance mainly came from the surge in client trading activity. Commission revenue soared by 36% to $514 million, driven by a 47% increase in stock trading volume, a 25% increase in options trading, and a 16% increase in futures trading. At the same time, the average balance of client margin loans and credit accounts increased, driving net interest income up by 3% to $770 million. With increased regulatory costs and client activity, execution, clearing, and distribution expenses rose by 20%. The number of client accounts increased by 32% year-on-year to 3.62 million. The average daily revenue trade (DARTs) reached 3.52 million, a 50% increase. Client equity expanded by 23% to $573.5 billion, with credit balances increasing by 19% and margin loan balances increasing by 24%. To improve stock liquidity, Interactive Brokers Group, Inc. Class A announced a 1-for-4 stock split. Shareholders registered at the close on June 16, 2025, will receive 3 additional shares for each share held. The new shares will be issued after the close on June 17 and trading will begin at the adjusted split price on June 18. The company also increased its dividend payout to shareholders. The first quarter GAAP diluted earnings per share rose from $1.61 in the same period last year to $1.94. The board approved raising the quarterly dividend from $0.25 per share to $0.32, with registration on May 30 and distribution on June 13. Additionally, Interactive Brokers Group, Inc. Class A's currency diversification strategy brought in a $127 million gain to comprehensive income, including $20 million in other income and $107 million in other comprehensive income.

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