Can you provide more detail on historical and current marketing spend trends and how you plan to scale marketing going forward?

The company is actively trying to increase marketing spend but is very strict about achieving a required minimum return on every additional dollar, which makes the increase slow. They are seeking additional marketing outlets to expand spending opportunities. “Where we are bent on trying to increase our marketing spend but we are also very strict about getting the required minimum return on every additional marketing dollar. So as a result, while we keep trying to increase the spend, it is going very slowly.”

What are your views on potential AI-enabled cash optimization tools discussed by U.S. brokers and banks, and could this affect your deposit pricing?

Management is not happy about these tools, as IBKR has historically paid close to market rates on client cash. They find it ironic coming from banks that pay little, stating it's a decision on interest allocation, not an AI problem. “I mean, it is somewhat ironic that we hear these noises about using the AI in the area of cash optimization from the banks, banks that have been paying very, very little on the uninvested cash. And if you think about it, there isn't that much that AI needs to do here. It's really the brokers or the bank's decision of how much of the interest income they want the client to enjoy versus how much of it they want to keep to themselves.”

Can you provide an update on intra-month margin balances, given recent market movements?

Management declined to provide intra-month updates, directing the analyst to the monthly releases. They stated that margin loans were $86.6 million at the end of the quarter. “So our margin loans are precisely at the end of the quarter, $86.6 million, but that's part of our -- every month and we release our margin balances. So if anybody cares to look at that, they could see what's happening.”

IBKR

Interactive Brokers Group (IBKR) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Financials· Apr 21, 2026

Source: earnings call transcript

Executive summary

Interactive Brokers Group Q1 FY26 — Record Revenues and Strong Account Growth

Interactive Brokers delivered a strong Q1 FY26, achieving record net revenues and account growth despite a challenging market backdrop. The company continues to expand its AI integration for enhanced client experience and internal efficiency, while maintaining a high pretax profit margin. Management expressed confidence in its business model and capital base, leading to an increased dividend.

Highlights

Net revenue and total accounts reached record levels, with client uninvested cash balances up 35% YoY to $169 billion.
Client equity rose 38% YoY to $789 billion, offsetting market decline with a 1% sequential increase.
Total customer DARTs increased 24% YoY to 4.4 million trades per day.
Pretax profit margin was 77%, marking the sixth consecutive quarter above 70%.
Dividend increased from $0.32 to $0.35 per year, reflecting confidence in business strength and capital base.

Concerns

The S&P 500 ended the quarter down 5%, with Magnificent 7 technology stocks declining more than the broader market.
SEC regulatory fees for securities increased from $0 to $20.60 per million effective April 4, which will increase execution and clearing costs.

Guidance & targets

Category	Target	Timeline	Confidence
Annual Net Interest Income sensitivity to Fed funds rate	$82 million reduction medium materiality	Annual	High
Annual Net Interest Income sensitivity to non-USD benchmark rates	$35 million reduction medium materiality	Annual	High

IBKR operating KPIs by quarter

IBKR operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2025 Q1 FY25	Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	This call Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Sep 2026 Q3 FY26	Change vs prior quarter
Net new accounts	279K In the first quarter, we added 279,000 new accounts, a record that well surpassed even the mean stock days of the first quarter 2021. Source: earnings call transcript	250K This quarter, we added 250,000 net new accounts, bringing our year-to-date total to over 528,000, more than we added in all of 2023. Source: earnings call transcript	—	—	—	—	—	-10.4%
Employees	3,027 Our head count at March 31 was 3,027. Source: earnings call transcript	3,087 As always, we remain focused on expense discipline as reflected in our moderate staff increase of 5% over the prior year, and our headcount at June 30 was 3,087. Source: earnings call transcript	3,131 Our head count at September 30 was 3,131. Source: earnings call transcript	3,182 Our head count at December 31 was 3,182. Source: earnings call transcript	3,232 Our head count at March 31 was 3,232. Source: earnings call transcript	3,265 Our headcount at June 30 was 3,265. Source: earnings call transcript	3,286 Our head count at September 30 was 3,286. Source: earnings call transcript	+0.6%
Customer DARTs	3.5M On Page 7, you can see that total customer DARTs were 3.5 million trades per day, up 50% from the prior year and strong in all product classes. Source: earnings call transcript	3.6M On Page 7, you can see that total customer DARTs were 3.6 million trades per day, up 49% from the prior year and strong in all product classes. Source: earnings call transcript	3.6M On Page 7, you can see that total customer DARTs were 3.6 million trades per day, up 34% from the prior year, strong in options and stocks. Source: earnings call transcript	4M On Page 7, you can see that total customer DARTs were at 4 million trades per day, in the quarter, up 30% from the prior year. Source: earnings call transcript	4.4M On Page 7, you can see that total customer DARTs were 4.4 million trades per day in the quarter, up 24% from the prior year. Source: earnings call transcript	4.8M On Page 7, you can see that total customer DARTs were 4.8 million trades per day in the quarter, up 36% from the prior year and commission cleared commissionable order of $2.64 and was off slightly from last year. Source: earnings call transcript	4.3M 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. Source: earnings call transcript	-10.4%
Commission per cleared commissionable order	$2.76 Commission per cleared commissionable order of $2.76, was down from last year due to both smaller average order sizes and earning higher rebates, which reduced the cost of a trade and are generally passed through to the customer. Source: earnings call transcript	$2.65 Commission per cleared commissionable order of $2.65 was down from last year, primarily due to the elimination of the SEC fee mid-quarter and the performance of our Smart Order Router, leading to the capture of higher exchange rebates, which as pass-throughs, served to lower both our commission revenues and our execution and clearing costs. Source: earnings call transcript	$2.7 Commission per clear commissionable order of $2.70 was down from last year, primarily due to the elimination of the SEC fee and the performance of our smart order router, leading to the capture of higher exchange rebates and minimizing exchange costs, which as pass-throughs, serve to lower both our commission revenues and our execution and clearing costs. Source: earnings call transcript	$2.64 Commission per cleared commissionable order of $2.64 was down from last year, primarily due to a mix of smaller average order sizes in stocks and futures and slightly higher in options. Source: earnings call transcript	$2.59 Commission per clear commissionable order of $2.59 was up slightly from last year when the full SEC fee rate was being charged. Source: earnings call transcript	$2.64 On Page 7, you can see that total customer DARTs were 4.8 million trades per day in the quarter, up 36% from the prior year and commission cleared commissionable order of $2.64 and was off slightly from last year. Source: earnings call transcript	$2.59 Admission per cleared commission order of $2.59 was down 4% from last year on smaller order sizes across product types. Source: earnings call transcript	-1.9%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
Investment themes and connections tools	launch	this quarter
ASK IBKR tool enhancements	update	—
AI-powered chatbot enhancements	update	—
Cryptocurrency offering in EEA	expansion	this quarter
Crypto transfer in capabilities	launch	this quarter
Access to Coinbase derivatives exchange	launch	this quarter
Election board (prediction markets)	launch	ahead of the 2026 U.S. midterm elections

Deals & partnerships

Zero Hash Partnership

Partnered for the expansion of cryptocurrency offering to clients in the EEA. Zero Hash is also working on integrating staking capabilities into IBKR's offering.

Risks & headwinds

Market decline impacting client equity Q1 FY26

S&P 500 ended Q1 FY26 down 5%; Magnificent 7 technology stocks declined more than the broader market.

Mitigation:Continued account funding offset market performance, leading to client equity rising 1% sequentially despite the market decline.

Increased SEC regulatory fees Starting Q2 FY26

Fee rate for securities raised from $0 to $20.60 per million, effective April 4.

Mitigation:Fees are a pass-through, increasing both commission revenue and execution and clearing expense equally with no impact on income.

Q&A highlights

How does the elimination of the pattern day trader rule impact IBKR, specifically regarding increased account growth and attracting smaller retail investors?

Management views the rule change as an opportunity to broaden retail access, increase trading frequency, and enhance market liquidity. They believe it will benefit disciplined participants and is an opportunity for IBKR given its large base of individual accounts.

“Well, we welcome the change. The regulators are basically replacing an outdated concept of counting trades and an arbitrary equity threshold or account size with a risk-based system, real-time intraday margin requirements. The expectation is that it will broaden the retail access, increase the trading frequency and engagement, and also liquidity in the markets.”

asked by Patrick Moley · answered by Milan Galik

2 min read 6 chapters

Detailed narrative

Market Conditions and Client Engagement

Global market indices experienced declines in February and March, with the S&P 500 ending Q1 FY26 down 5%. Despite this challenging backdrop, Interactive Brokers observed strong interest from both institutional and individual investors globally, leading to healthy client engagement and increased trading activity. This resilience contributed to record net revenues and continued account growth, with clients gradually taking on more risk.

AI Integration and Efficiency Initiatives

Interactive Brokers is actively incorporating AI across its organization to enhance both client experience and internal efficiency. Key developments include the introduction of AI-powered investment themes and connections tools, expansion of the ASK IBKR tool for portfolio insights, and continuous improvement of its multilingual AI chatbot for client service.

The company is also leveraging AI to automate processes in areas such as onboarding, compliance, and other operational functions, aiming for significant future opportunities.

Strategic Product Expansion and Offerings

The company expanded its cryptocurrency offering to clients in the EEA, significantly broadening its international footprint, and introduced crypto transfer capabilities for consolidating external holdings. Additionally, Interactive Brokers launched access to the Coinbase derivatives exchange, providing trading in nano-sized crypto contracts and perpetual futures. Ahead of the 2026 U.S. midterm elections, an 'election board' discovery and trading tool for political event contracts was also introduced.

Client Outperformance and Low-Cost Model

An advertising campaign highlighted that in 2025, the average IBKR individual account returned 19.2% (versus 17.9% for the S&P), and the average hedge fund account returned 28.9% on a net basis. This outperformance is attributed to the company's low-cost offering, competitive interest paid on client cash, and a strong focus on best execution by routing orders directly to venues for optimal pricing.

Impact of Pattern Day Trader Rule Elimination

Management welcomed the SEC's elimination of the pattern day trader rule, viewing it as a significant opportunity. This regulatory change, which replaces an outdated concept with a risk-based system, is expected to broaden retail access to active trading, increase trading frequency, and enhance market liquidity. The company anticipates that this will particularly benefit its large base of individual accounts.

Marketing Strategy and Capital Allocation

Interactive Brokers is committed to increasing its marketing spend but maintains a strict policy of requiring a minimum return on every additional marketing dollar, resulting in a gradual expansion of marketing efforts. The company's consistent business strength and healthy balance sheet supported an increase in the annual dividend from $0.32 to $0.35 per share, demonstrating confidence in its growth potential and capital base.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.