Interactive Brokers Group Inc

We report non-GAAP financial measures, which exclude certain items that may not be indicative of our core operating results and business outlook and are useful in evaluating the operating performance of our business. See the “Non-GAAP Financial Measures” section below in this Item 7 for additional details.

Diluted earnings per share were $6.93 for the year ended December 31, 2024 (“current year”), compared to $5.67 for the year ended December 31, 2023 (“prior year”). Adjusted diluted earnings per share were $7.03 for the current year, compared to $5.75 for the prior year. The calculation of diluted earnings per share is detailed in Note 4 – “Equity and Earnings Per Share” to the audited consolidated financial statements, in Part II, Item 8 of this Annual Report on Form 10-K.

For the current year, our net revenues were $5,185 million and income before income taxes was $3,695 million, compared to net revenues of $4,340 million and income before income taxes of $3,069 million in the prior year. Adjusted net revenues were $5,257 million and adjusted income before income taxes was $3,767 million, compared to adjusted net revenues of $4,367 million and adjusted income before income taxes of $3,101 million in the prior year.

The financial highlights for the current year were:

Net interest income increased 13% from the prior year to $3,148 million, driven by higher average customer margin loans and customer credit balances.

Commission revenue increased 25% from the prior year to $1,697 millionon higher options, stock and futures volumes.

Other fees and services increased 42% from the prior year to $280 million on higher risk exposure fees, payments for order flow from exchange-mandated programs, and Insured Bank Deposit Sweep Program fees (“FDIC sweep fees”).

Other income increased$71 million from theprior year to a gain of $60 million.

Execution, clearing and distribution fees expenses increased 16% to $447 million, driven by higher customer trading volume in options, stocks and futures.

Pretax profit margin was 71% in both the current and prior year. Adjusted pretax profit margin was 72%, up from 71% in the prior year.

In connection with our currency diversification strategy as of December 31, 2024, approximately 23% of our equity was denominated in currencies other than the U.S. dollar. In the current year, our currency diversification strategy decreased our comprehensive earnings by $222 million (compared to an increase of $42 million in the prior year), as the U.S. dollar value of the GLOBAL decreased by approximately 1.45%, compared to its value as of December 31, 2023. The effects of our currency diversification strategy are reported as (1) a component of “Other Income” (loss of $15 million) in the consolidated statements of comprehensive income and (2)other comprehensive income (“OCI”) (loss of $207 million) in the consolidated statements of financial condition and the consolidated statements of comprehensive income. The full effect of the GLOBAL is captured in comprehensive income.

‎