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1. Company Snapshot

1.a. Company Description

Interactive Brokers Group, Inc.operates as an automated electronic broker worldwide.The company specializes in executing, clearing, and settling trades in stocks, options, futures, foreign exchange instruments, bonds, mutual funds, exchange traded funds (ETFs), metals, and cryptocurrencies.


It also custodies and services accounts for hedge and mutual funds, ETFs, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors.In addition, it offers custody, prime brokerage, securities, and margin lending services.The company serves institutional and individual customers through approximately 150 electronic exchanges and market centers.


Interactive Brokers Group, Inc.was founded in 1977 and is headquartered in Greenwich, Connecticut.

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1.b. Last Insights on IBKR

Interactive Brokers Group, Inc.'s recent performance was driven by strong Q3 earnings, with revenues up 21% and expenses down nearly 25%, lifting profit margins sharply. The company's technological edge, global expansion, and rising earnings estimates fuel long-term appeal. Client activity remains robust, with DART growth continuing to surge. A premium valuation is justified by the company's superior profitability and growth prospects. With a 30%+ upside potential, according to some analysts, the stock remains attractive. (Source: Interactive Brokers Reports Better-Than-Expected Q3 Results)

1.c. Company Highlights

2. Interactive Brokers Group's Q3 2025 Earnings: A Strong Performance

Interactive Brokers Group reported a strong third-quarter 2025 earnings, with record net revenues and pretax income. The company's commission revenue increased by 23% compared to last year, driven by a 27% rise in options volume and a 67% increase in equity volumes. Net interest income was up 21%, driven by higher segregated cash and margin loan balances. The company's pretax margin was 79% for the quarter, and earnings per share (EPS) came in at $0.57, beating estimates of $0.542. The company's strong financial performance was underpinned by a significant increase in client cash balances, which rose to $150 billion, up over 30% from last year, and client equity, which surpassed $750 billion, up 40% from last year.

Publication Date: Oct -17

📋 Highlights

Business Growth and Client Activity

The company added its four millionth customer and saw total customer Daily Average Revenue Trades (DARTs) rise by 34% from the prior year. Margin loans were up 20% quarter-over-quarter, driven by an all-time high in margin balances. Management noted that customer trading volumes surpassed industry growth in major product classes, and they see no signs of deceleration in account growth. The company's strong account growth was driven by a steady influx of new clients, with no changes in the mix of customers or geographies.

Interest Rate Sensitivity and Net Interest Income

The company's net interest income was up 21%, driven by higher segregated cash and margin loan balances, and securities lending opportunities. Management noted that the company's interest rate sensitivity for non-US balances increased, largely due to platform growth and higher interest rates. They estimate that a 25 basis point decrease in the benchmark Fed funds rate would result in a $77 million reduction in annual net interest income.

Valuation and Outlook

Given the company's strong financial performance, its valuation metrics appear reasonable. The stock trades at a Price-to-Book (P/B) Ratio of 5.76 and a Price-to-Sales (P/S) Ratio of 44.3. The company's Return on Equity (ROE) is 19.6%, and its Return on Invested Capital (ROIC) is 33.29%. Analysts estimate next year's revenue growth at 7.5%. With a strong balance sheet and no long-term debt, the company is well-positioned to continue its growth trajectory.

New Initiatives and Future Plans

The company is expanding its offerings, including the introduction of cryptocurrency trading to European clients through Zero Hash, and plans to offer stablecoin deposits, crypto asset transfers, and staking. Forecast X, the company's prediction market platform, is focused on offering contracts on economic indicators, climate indicators, and elections. Management expects to continue investing in technology and staff, and sees opportunities for growth in the digital assets space.

3. NewsRoom

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Buy 3 Crypto-Centric Stocks as Bitcoin Shows Signs of Steady Rebound

Dec -03

Source: zacks.com

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IBKR's New Accounts Rise: Surge in Trading Volumes Driving Growth?

Dec -02

Source: zacks.com

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Potentially 12%-15% Consistent Income: Monthly Options Series (December 2025)

Nov -30

Source: seekingalpha.com

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Buy 5 Financial Technology Ginats Amid Fed Rate Cut Hope in December

Nov -28

Source: zacks.com

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Global Trading Surge: Can IBKR Outpace Schwab's Scale Advantage?

Nov -27

Source: zacks.com

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Interactive Brokers Group, Inc. (IBKR) Laps the Stock Market: Here's Why

Nov -26

Source:

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Market's seen a change toward institutional risk aversion, says Interactive Brokers' Steve Sosnick

Nov -24

Source: youtube.com

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Is the Options Market Predicting a Spike in IBKR Stock?

Nov -24

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.00%)

6. Segments

Electronic Brokerage

Expected Growth: 7%

Interactive Brokers Group's 7% growth in Electronic Brokerage is driven by increasing adoption of online trading platforms, rising demand for low-cost trading options, and expanding global presence. Additionally, the company's investments in technology, mobile trading capabilities, and customer acquisition strategies have contributed to its growth.

7. Detailed Products

Brokerage Services

Interactive Brokers offers online brokerage services, providing access to trade various financial products such as stocks, options, futures, forex, and bonds across multiple markets globally.

Trading Platforms

Interactive Brokers provides a range of trading platforms, including Trader Workstation (TWS), WebTrader, and mobile apps, offering advanced trading tools, analytics, and risk management features.

Options Trading

Interactive Brokers offers options trading on various underlying assets, including stocks, ETFs, and indices, with competitive pricing and advanced risk management tools.

Futures Trading

Interactive Brokers provides access to futures markets, enabling clients to trade futures contracts on commodities, indices, and currencies.

Forex Trading

Interactive Brokers offers forex trading in over 100 currency pairs, with competitive pricing, advanced charting tools, and automated trading capabilities.

Mutual Funds and ETFs

Interactive Brokers offers a wide range of mutual funds and ETFs from leading fund families, with no transaction fees or commissions.

Bonds and Fixed Income

Interactive Brokers provides access to a wide range of government and corporate bonds, CDs, and other fixed-income securities.

Robo-Advisory Services

Interactive Brokers offers automated investment management services, including portfolio rebalancing, tax optimization, and goal-based investing.

Custodial Services

Interactive Brokers provides custodial services for financial advisors, broker-dealers, and institutional clients, offering trade execution, clearing, and settlement services.

8. Interactive Brokers Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Interactive Brokers Group, Inc. operates in a niche market with limited substitutes, reducing the threat of substitutes.

Bargaining Power Of Customers

Interactive Brokers Group, Inc. has a diverse customer base, but some large institutional clients may have bargaining power, leading to a medium level of bargaining power.

Bargaining Power Of Suppliers

Interactive Brokers Group, Inc. has a strong bargaining position with its suppliers, given its large scale and diversified business model.

Threat Of New Entrants

While there are barriers to entry in the online brokerage industry, new entrants can still disrupt the market, posing a medium-level threat to Interactive Brokers Group, Inc.

Intensity Of Rivalry

The online brokerage industry is highly competitive, with established players competing fiercely for market share, leading to a high level of intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 86.39%
Debt Cost 8.02%
Equity Weight 13.61%
Equity Cost 8.02%
WACC 8.02%
Leverage 634.63%

11. Quality Control: Interactive Brokers Group, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Stifel Financial

A-Score: 6.4/10

Value: 7.6

Growth: 5.8

Quality: 6.1

Yield: 4.0

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

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PJT Partners

A-Score: 6.1/10

Value: 3.8

Growth: 8.2

Quality: 6.5

Yield: 3.0

Momentum: 8.0

Volatility: 7.3

1-Year Total Return ->

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Jefferies

A-Score: 5.7/10

Value: 6.3

Growth: 5.1

Quality: 6.6

Yield: 6.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

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Evercore

A-Score: 5.6/10

Value: 3.3

Growth: 5.8

Quality: 8.2

Yield: 3.0

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Piper Sandler

A-Score: 5.6/10

Value: 1.8

Growth: 5.4

Quality: 7.9

Yield: 5.0

Momentum: 6.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Interactive Brokers

A-Score: 5.2/10

Value: 0.8

Growth: 8.7

Quality: 6.4

Yield: 0.0

Momentum: 9.5

Volatility: 5.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

64.5$

Current Price

64.5$

Potential

-0.00%

Expected Cash-Flows