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    IBKR
    Earnings call· Jun 2026(Q2 FY26)

    Interactive Brokers Group, Inc. IBKR

    Jul 21, 2026 Source

    Executive summary

    Interactive Brokers Group Q2 FY26 — Record Revenues and Strong Account Growth

    Interactive Brokers delivered a robust Q2 FY26, marked by record financial results and significant growth across key operating metrics, including account additions and client assets. The company continues to leverage its low-cost structure and expand its global product offerings, notably with new AI integrations and market access, while maintaining a strong capital position. Management expressed confidence in continued strong account growth and comfort with current margin loan levels.

    Highlights

    5

    • Record net revenues and pretax income, with a pretax profit margin of 77% for the seventh consecutive quarter above 70%.

    • Total accounts, account adds, client equity, and total client assets set new records, with 1.3 million new accounts added over the last year.

    • Client equity rose 40% to $930 billion, and client uninvested cash balances grew 27% year-over-year to a record $182 billion.

    • Total customer DARTs increased 36% year-over-year to 4.8 million trades per day, with options and futures volumes up 17% and 2% respectively.

    • Successful product introductions including trading in Korea, SpaceX IPO access in Europe, crypto offerings in Europe, and the IBKR Connector AI integration.

    Guidance & targets

    3
    CategoryTargetConfidence
    Annual Net Interest Income sensitivity to Fed funds rate increase
    $81 million increase
    medium materiality
    High
    Annual Net Interest Income sensitivity to Fed funds rate reduction
    $81 million decrease
    medium materiality
    High
    Annual Net Interest Income sensitivity to non-USD benchmark rates
    $38 million increase or decrease
    low materiality
    High

    Operational metrics

    34
    Client uninvested cash balances
    $182 billionup 27% year-over-year
    Q2 FY26

    Record level.

    Client equity
    $930 billionrose 40%
    Q2 FY26

    Record level.

    Commissions growth
    30%versus last year's second quarter
    Q2 FY26

    To a new record.

    Net interest income growth (GAAP)
    23%year-on-year
    Q2 FY26

    Driven primarily by higher balances, to over $1 billion.

    Net interest income growth (NIM table basis)
    28%
    Q2 FY26

    To $1.1 billion. Includes certain income considered interest but classified differently for GAAP.

    Other fees and services growth
    40%
    Q2 FY26

    Generated $87 million, primarily driven by strong options volumes and higher risk exposure fees.

    Execution and clearing and distribution costs growth
    22%over the year ago quarter
    Q2 FY26

    Totaling $142 million, primarily due to reinitiation of SEC regulatory fees.

    SEC regulatory fees
    $34 millionincrease of $19 million
    Q2 FY26

    Reinitiated after being set at zero since mid-Q2 2025. Largely passed through, not impacting profits.

    Execution and clearing costs (ex-SEC fees)
    $108 million7% increase
    Q2 FY26

    Excluding SEC fees in both quarters.

    Gross transactional profit margin
    83%
    Q2 FY26

    Calculated by excluding $29 million of nontransaction-based costs from execution, clearing and distribution.

    Nontransaction-based costs
    $29 million
    Q2 FY26

    Predominantly market data fees, excluded from gross transactional profit margin calculation.

    Compensation expense to adjusted net revenues ratio
    10%down slightly from 11% last year
    Q2 FY26

    Compensation and benefits expense was $182 million for the quarter.

    Headcount
    3,265
    June 30, 2026

    Total headcount at quarter-end.

    G&A expenses growth
    upfrom the year ago quarter
    Q2 FY26

    With continued expansion of advertising a contributing factor.

    Public company's adjusted effective tax rate
    14.7%
    Q2 FY26

    Somewhat below its usual range due to the tax effect from the rise in IBKR stock price in employee stock incentive plan. Total income taxes were $118 million ($54M public, $64M operating).

    Total assets growth
    36%higher than the prior year
    Q2 FY26

    Driven by higher margin lending and segregated cash and securities balances.

    Firm equity growth
    20%
    Q2 FY26

    Driven by profit growth.

    Options contract volumes growth
    17%over the prior year
    Q2 FY26

    Second-highest contract volumes.

    Futures contract volumes growth
    2%over the prior year
    Q2 FY26

    Second-highest contract volumes.

    Stock share volumes growth
    14%
    Q2 FY26

    Generally increased versus last year as customers gravitated to larger, higher quality names.

    Total customer DARTs
    4.8 millionup 36% from the prior year
    Q2 FY26

    Daily Average Revenue Trades.

    Commission per cleared commissionable order
    $2.64off slightly from last year
    Q2 FY26

    Average commission per order.

    Average U.S. Fed funds rate change
    70 basis pointsfell by 16% year-on-year
    Q2 FY26

    Central Banks in most major markets held their benchmarks constant this quarter.

    Margin loan interest growth
    39%
    Q2 FY26

    Bolstered by higher balances.

    Segregated cash interest growth
    7%
    Q2 FY26

    Bolstered by higher balances.

    Investment portfolio average duration
    less than 30 days
    Q2 FY26

    Maintained a relatively tight maturity match between assets and liabilities.

    Securities lending net revenue (all-encompassing view)
    $343 millionup 37% over the prior year quarter
    Q2 FY26

    Includes additional interest earned and paid on cash collateral.

    Fully rate-sensitive customer balances
    $28.4 billionversus $22.8 billion in the year ago quarter
    Q2 FY26

    Balances that are sensitive to interest rate changes.

    Non-USD rate sensitive balances share
    About 1/3
    Q2 FY26

    Portion of customer interest-sensitive balances not in U.S. dollars.

    Excess capital
    $10.3 billionincreased by approximately $1.1 million from the last quarter
    Q2 FY26

    After subtracting various buffers.

    New accounts added
    1.3 million
    LTM Q2 FY26

    Added over the last year.

    Account growth rate
    over 30%
    Q2 FY26

    Management's current growth rate observation.

    Overnight trading volumes
    10.9 millionnearly tripled year-over-year
    Q2 FY26

    Increasingly important tool for international investors.

    Crypto perpetuals trading share
    roughly 1/3
    Q2 FY26

    Share of total crypto trading volume.

    Industry KPIs

    1
    MetricValueDetails
    Pretax margin77%%

    Product announcements

    7
    ProductTypeDetails
    Trading in Korealaunch
    SpaceX IPO accesslaunch
    Cryptocurrencies in Europeexpansion
    IBKR Connectorlaunch
    National Trust Bank Chartermilestone
    IBKR Prediction Marketslaunch
    CBOE's new binary optionslaunch

    What to watch in Q3 FY26

    5

    National Trust Bank Charter Operationalization

    By year-end 2026
    CurrentPreliminary conditional approval received.
    TargetOperational by year-end.

    Why it matters

    This charter is a requirement to directly custody assets from mutual fund and ETF customers, potentially expanding IBKR's service offerings and client base.

    We received preliminary conditional approval from the OCC on our application for a national trust bank charter, which is a requirement to directly at custody assets from mutual fund and ETF customers. We plan to have the necessary work completed and have it operational by year-end.

    Q&A highlights

    6

    How has the marketing strategy evolved, and is it leading to higher returns on spend and sustainable account growth above 20%?

    Management confirmed increased marketing spend and corresponding yield, but not disproportionately higher returns. They expressed confidence in continued strong account growth, noting past instances of exceeding expectations despite conservative promises.

    “It was only once when I said that we will grow at 30% and immediately, the growth rate went down to 20% and then everybody said 20%, 20%, 20%, and ever since that time, we have been over 30%.”

    asked by Stephen Shoback · answered by Thomas Peterffy

    2 min read6 chapters

    Detailed Narrative

    01

    Market Environment and Client Activity

    The S&P 500 was up nearly 15% in Q2 FY26, driven by strong tech earnings and semiconductor names. Interactive Brokers' clients embraced this volatility, leading to increased trading activity, margin borrowing, and derivatives positions. Overnight trading volumes nearly tripled year-over-year to 10.9 million trades from 3.8 million, indicating growing engagement from international investors.

    02

    Product Innovation and Global Expansion

    The company introduced several new products and expanded market access, including becoming the first broker to offer trading in Korea, opening access to both the Korea Stock Exchange and Nextrade ATS. They also directly offered the SpaceX IPO to eligible U.K. and European retail clients and began offering cryptocurrencies throughout Europe. These initiatives aim to broaden client access and engagement globally.

    03

    AI Integration and Efficiency

    IBKR launched the IBKR Connector, integrating with AI chatbots like Anthropic, OpenAI, and XAI, enabling clients to connect their AI chatbot directly to their IBKR accounts for portfolio analysis, research, and order preparation. Internally, AI is used to enhance client service, compliance, surveillance, and new account onboarding, helping the company scale with new client flows and maintain its low-cost structure.

    04

    Regulatory Developments and Capital Position

    Interactive Brokers received preliminary conditional approval from the OCC for a national trust bank charter, which is a requirement to directly custody assets from mutual fund and ETF customers, expected to be operational by year-end. The company reported $10.3 billion in excess capital, an increase of $1.1 million from the prior quarter, demonstrating a strong balance sheet to support growth and potential acquisitions.

    05

    Introducing Broker and Hedge Fund Segments

    The introducing broker pipeline remains robust, with a double-digit number of integrations going online for the fifth consecutive quarter. The company is increasingly onboarding firms with existing businesses looking to expand offerings, such as crypto or CFD providers adding listed stocks. Enhancements to the hedge fund marketplace, including video presentations and easier investment processes, are driving client engagement.

    06

    Prediction Markets Expansion

    IBKR Prediction Markets expanded to include contracts from Cachi and CME, alongside ForecastX, focusing on economic, political, and climate events. This broadens access and liquidity for clients interested in hedging specific risks or gaining targeted exposure to future events, while intentionally avoiding sports and entertainment contracts.

    AI-generated summary of the company’s earnings call. Not investment advice.