Interactive Brokers (IBKR) Q3 FY26 earnings call: guidance and Q&A

Earnings call· Sep 2026 (Q3 FY26)· Oct 15, 2026

Source: earnings call transcript

Executive summary

Interactive Brokers Q3 FY26 — Record Pretax Profit and Increased Dividend Amidst Strong Account Growth

Interactive Brokers delivered a strong quarter with record pretax profit and robust account growth, driven by global investor interest in technology stocks and expanded product offerings. The firm increased its dividend, signaling confidence in its business model and capital strength, while continuing to innovate with AI-powered trading solutions and expand its global reach. Despite some moderation in overall trading activity, the company remains focused on scaling its automated platform and attracting new client segments, particularly RIAs.

Highlights

Achieved record pretax profit and a 78% pretax margin, marking the eighth consecutive quarter above 70%.
Account growth exceeded 30%, driven by strong interest from both institutional and individual investors globally.
Commissions rose 12% year-over-year to $602 million, exceeding $600 million for the third consecutive quarter.
Net interest income increased 19% year-over-year to over $1.1 billion, bolstered by higher balances and margin borrowing.
Increased the annual dividend from $0.35 to $0.60 per year, signaling confidence in the business model and capital base.

Concerns

S&P 500 gains masked narrow market breadth, with the 10 largest U.S. technology stocks representing nearly 40% of the index's total value.
Stock share volumes were down 24% year-over-year, primarily due to lower activity in low-priced stocks.
Options volumes were down slightly compared to the prior year.
Overall trading activity was somewhat slower versus the second quarter, with trading activity per account dipping to its lowest level in some time, broadly across customer segments.

Guidance & targets

Category	Target	Timeline	Confidence
Annual Net Interest Income (NII) sensitivity to Fed funds rate	$83 million higher or lower annually medium materiality	Annual	High
Annual Net Interest Income (NII) sensitivity to non-U.S. benchmark rates	$35 million higher or lower annually medium materiality	Annual	High
Dividend payout guideline	Between 0.5% and 1% of market volume high materiality	Ongoing	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	Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	This call 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.

Deals & partnerships

Daol Investment & Securities Launched a global securities trading platform powered by IBKR's technology and trading infrastructure.

Daol Investment & Securities, a publicly traded South Korean brokerage firm, utilized IBKR's technology and trading infrastructure for its new platform.

Risks & headwinds

Narrow market breadth and concentration in S&P 500 Q3 FY26

10 largest U.S. technology stocks represent nearly 40% of S&P 500 total value

Mitigation:Not explicitly stated, but IBKR benefits from global investor interest in these large technology names.

Moderation in client trading activity Q3 FY26

Stock share volumes down 24% YoY; options volumes down slightly; trading activity per account at lowest level in some time (broad-based)

Mitigation:Management expects volatility to somewhat increase as mid-term elections approach, which tends to increase trading activity.

What to watch in Q4 FY26

RIA market share capture from Fidelity's threshold

Next 9 months, leading up to mid-next year.

Current Fidelity's threshold goes into effect mid-next year. IBKR is preparing to attract affected RIAs.

Target Increased onboarding of RIAs from competitors.

Why it matters

Significant opportunity to grow RIA client base and assets under management (AUM) by providing a welcoming home for smaller RIAs.

So as you said, this is supposed to happen sometime in the middle of next year. The competitor was fidelity, I believe, and anybody up under $100 million is supposed to find a new home. I completely agree with you. We are one of the obvious choices, if not the obvious choice. That is why that is part of the reason why some of the work that I mentioned earlier is so relevant and so beneficial. So we have 9 months between now and maybe a little more and when this is supposed to happen. So we're going to be working very hard to show a welcoming home to the financials versus that need to find one.

Find out whether IBKR delivers this. Inve re-checks your case every morning.

Q&A highlights

Inquired about the rationale behind the dividend increase to $0.15/quarter ($0.60/year) and if it signals a new payout framework.

Thomas Peterffy stated the company generally follows a guideline of paying dividends between 0.5% and 1% of market volume, and they were catching up. He also firmly stated they would 'never cut the dividend.'

“We have generally been following the guideline of paying dividends between half a 1% of the market volume, and we have fallen somewhat behind. So we are trying to catch up here. And we are going to continue to follow that guideline of the paying between 0.5% and 1% of the market volume.”

asked by Patrick Moley · answered by Thomas Peterffy

3 min read 7 chapters

Detailed narrative

Product and Platform Innovation

Interactive Brokers introduced access to multiple new exchanges, including the Book Rest Stock Exchange, the Texas Stock Exchange, and a new options exchange. In Brazil, the company launched trading of B3 futures on financial indexes, cryptocurrencies, and commodities. New offerings in Japan include margin lending, a fully paid securities lending program, and GEICO Plus for earning interest on non-JPY cash balances. The AI connector saw rapid adoption, expanding connectivity to any AI tool using the Model Context Protocol (MCP) and enhancing capabilities like P&L, alerts, watchlists, and 2-leg option strategies. Autonomous AI trading was also rolled out to eligible clients in several countries, allowing AI agents to trade autonomously within dedicated account partitions.

Client Segment Expansion

The firm is actively expanding its offerings for Registered Investment Advisers (RIAs), now providing tax-aware long-short strategies to their customers, with approximately $300 million in assets by quarter-end. Three strategy providers are onboarded, with more expected. The introducing broker pipeline remains strong, with new onboarding and growth from existing partners, exemplified by Daol Investment & Securities in South Korea launching a global securities trading platform powered by IBKR's technology. The company is also preparing to welcome RIAs affected by competitors' new asset thresholds.

Internal AI Adoption and Efficiency

AI and machine learning are being increasingly adopted internally to enhance operational efficiency and scalability. AI-assisted tools are being rolled out to client service teams to retrieve data, analyze requests, and present findings, improving service speed. New account onboarding, compliance, and surveillance processes are also incorporating AI to manage the growing flow of new clients and global exchanges more effectively.

Capital Allocation and Shareholder Returns

In a sign of confidence in its business model, growth potential, and capital base, Interactive Brokers increased its annual dividend from $0.35 to $0.60 per year. This decision reflects a re-evaluation of capital allocation and aligns with the company's guideline of paying dividends between 0.5% and 1% of market volume. The firm maintains a healthy balance sheet with no long-term debt and firm equity up 19% to $23.3 billion, supporting both current business growth and future opportunities.

Market Dynamics and Trading Activity

The S&P 500 showed resilience, driven by large technology companies and artificial intelligence, though market breadth remained narrow with the 10 largest U.S. technology stocks representing nearly 40% of the index's value. Global technology names continued to be the most actively traded on the platform. Despite somewhat slower overall trading activity compared to the prior quarter, overnight trading volumes significantly increased from 3.5 million trades in Q3 last year to over 10 million trades this year, highlighting its importance for international investors trading during their waking hours.

Geographic Expansion and Strategy

Interactive Brokers continues its strategic expansion in key geographies. In Japan, efforts are focused on migrating accounts from the U.S. affiliate to the Japanese affiliate, offering margin in a compliant way, and digitizing KYC verifications to enhance competitiveness. The company leverages its single global platform, which is highly automated and adaptable to local regulations, allowing for expansion into diverse markets without significantly increasing costs, serving individual investors, institutions, and intermediaries alike.

Prediction Markets and New Instruments

The company expanded its prediction market offerings by introducing trading in short-duration event contracts with hourly and 15-minute expirations across crypto, metals, and energy, increasing platform engagement. Integrations with Kalshi, CME, and Forecast are delivering increased volume, product range, and liquidity. The firm is also working on integrating with Polymarket and is excited about CBOE's recent approval for single-stock KPIs (binary options), which it plans to offer to clients upon launch.

Summary of the company's earnings call. Not investment advice.