Interactive Brokers reports strong Q1 2025 earnings
IBKR reports $1.94 Q1 EPS
Interactive Brokers, the largest brokerage firm in the United States, has reported strong financial results for the first quarter of 2025, highlighting earnings growth, increased customer activity, and significant shareholder incentives.
For the quarter ending March 31, 2025, the company reported diluted earnings per share (EPS) of $1.94, or $1.88 on an adjusted basis, exceeding the Q1 2024 results of $1.61 and $1.64, respectively. Net revenue rose to $1.43 billion as reported and $1.40 billion adjusted, marking a 19% year-over-year increase, according to a release on Business Wire.
Pre-tax income reached $1.06 billion (or $1.02 billion adjusted), compared to $866 million and $879 million, respectively, in the same quarter last year. The pre-tax profit margin climbed to 74%, underscoring Interactive Brokers’ operational efficiency.
Customer activity fuels commission and fee growth
Amid a surge in trading activity, commission revenue jumped 36% to $514 million. Trading volumes increased across the board: stock trades rose 47%, options 25%, and futures 16%. Net interest income also rose 3% to $770 million, supported by higher margin loan balances and client credit holdings.
Other fee and service revenue climbed 32% to $78 million, driven by higher risk exposure fees and payment for order flow. Execution and clearing expenses rose 20%, aided by the introduction of FINRA CAT fees and increased trading volumes.
Growing client base and strategic dividend boost
The number of client accounts grew 32% year-over-year to 3.62 million, while total client equity increased 23% to $573.5 billion. Daily average revenue trades (DARTs) surged 50% to 3.52 million, reinforcing the company’s focus on active traders.
Interactive Brokers’ Board of Directors approved a quarterly cash dividend increase from $0.25 to $0.32 per share, with the payout scheduled for June 13, 2025. The company also announced a 4-for-1 stock split effective June 18, aiming to make shares more accessible to retail investors.
Currency diversification enhances results
As part of its currency diversification strategy, which is based on a basket of 10 major currencies known as GLOBAL, Interactive Brokers added $127 million to its comprehensive earnings. This includes $20 million in other income and $107 million in other comprehensive income, reflecting a 0.75% gain in the GLOBAL’s value against the U.S. dollar.
With total equity of $17.5 billion, Interactive Brokers enters the second quarter of 2025 in a strong position for continued growth and investor value creation.
Previously, Interactive Brokers launched its Influencer Program, offering finance, trading, and investment-focused content creators the opportunity to monetize their audiences by promoting IBKR investment solutions.
