Interactive Brokers Group, Inc.
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
IBKR$75.82+4.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001381197-25-000052
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001381197-25-000103
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 177 previous paragraphs and 220 current paragraphs.
112 unchanged; 58 reworded; 32 added; 7 removed; 0 previous and 18 current paragraphs rearranged.
Tables are not compared: 12 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (32)
Current report
On April 15, 2025, the Company announced its intention to effect a four-for-one forward split of its common stock. This was executed by the filing of an amendment to the Company’s Certificate of Incorporation that, among other things (i) increased the Company’s authorized shares of Class A common stock to 4,000,000,000 shares from 1,000,000,000 shares and (ii) increased the Company’s authorized shares of Class B Common Stock to 1,000 shares from 100 shares to accommodate the stock split. The Company’s Board of Directors subsequently authorized the stock split and each holder of record of common stock as of the close of market on June 16, 2025, received three additional shares of common stock. All prior period share and per share amounts presented herein have been retroactively adjusted to reflect the stock split.
Current report
Early in the current quarter, the concern over the potential imposition of tariffs globally led to a sharp decline, with the S&P 500 falling over 11% from the end of the first quarter to April 8. Following that precipitous fall, the markets rebounded, with the S&P 500 closing the current quarter up 11% from the first quarter, and up 24% from April lows, and other equities markets were also up significantly. The dominance of a small number of technology stocks (the so-called ‘‘Magnificent 7’’), which had driven much of the market’s growth in the previous year, waned as investors broadened their interests to include more technology companies, particularly those that may be beneficiaries of the global embrace of artificial intelligence.
Current report
Net interest income increased 9% to $860 million on higher average customer credit balances and securities lending activity. Net interest income includes a $26 million one-time credit related to recovery of taxes withheld at source.
Current report
Other fees and services decreased 9% to $62 million, led by a decrease of $7 million in risk exposure fees, which was partially offset by a $2 million increase in FDIC sweep fees.
Current report
Excludes non-customers.
Current report
Other fees and services, for the current quarter, decreased $6 million, or 9%, compared to the prior-year quarter, to $62 million, driven by a $7 million decrease in risk exposure fees as customers exhibited more cautious risk-taking behavior, partially offset by a $2 million increase in market data fees and a $2 million increase in FDIC sweep fees.
Current report
Other income, for the current quarter, increased $78 million, compared to the prior-year quarter, to a gain of $42 million. This increase was mainly due to (1) the non-recurrence of a loss of $48 million on positions taken over as a customer accommodation due to a technical issue at the New York Stock Exchange that occurred on the morning of June 3, 2024; (2) $17 million related to our principal trading and investing activities; and (3)$15 million related our currency diversification strategy, which lost $5 million in the current quarter compared to a loss of $20 million in the prior-year quarter.
Current report
Net interest income on “Segregated cash and securities, net” for the three months ended June 30, 2025, excludes $26 million of interest income, recorded in the condensed consolidated statements of comprehensive income, related to taxes withheld at source in prior periods, which during the current quarter were determined to be fully refundable.
Current report
Represents the net gains or losses from the Company’s common stock (IBKR shares) held in treasury related to shares withheld from employees to satisfy their tax withholding obligations related to the annual vesting of shares from the amended 2007 Stock Incentive Plan and shares held for distribution to eligible customers participating in one or more promotions.
Current report
Six Months Ended June 30, 2025 (“current six-month period”) compared to the Six Months Ended June 30, 2024 (“prior-year six-month period”)
Current report
Net Revenues
Current report
Interest Income and Interest Expense
Current report
Net interest income (interest income less interest expense), for the current six-month period, increased $91 million, or 6%, compared to the prior-year six-month period, to $1,630 million. The increase in net interest income was driven by higher average customer margin loans and customer credit balances, and by higher securities lending activity, partially offset by lower benchmark interest rates. In the current six-month period, net interest income includes a $26 million one-time credit related to recovery of taxes withheld at source.
Current report
Net interest income on customer balances, for the current six-month period, increased $67 million compared to the prior-year six-month, driven by increases of $22.9 billion, $12.3 billion and $13.1 billion in average customer credit balances, segregated cash and securities, and margin loans, respectively. Yields on all three components decreased as rates have declined worldwide. See the “Business Environment” section above in this Item 2 for a further discussion about the change in interest rates in the current six-month period.
Current report
Net interest income on “Segregated cash and securities, net” for the six months ended June 30, 2025, excludes $26 million of interest income, recorded in the condensed consolidated statements of comprehensive income, related to taxes withheld at source in prior periods, which during the current quarter were determined to be fully refundable.
Current report
Non-Interest Expenses
Current report
Execution, Clearing and Distribution Fees
Current report
Employee Compensation and Benefits
Current report
Employee compensation and benefits expenses, for the current six-month period, increased $26 million, or 9%, compared to the prior-year six-month period, to $317 million associated with a combination of staffing increases, inflation, and a $5 million increase in U.S. Social Security and Medicare, and other social insurance taxes driven by the annual vesting of the Company’s Stock Incentive Plan units at a higher stock price than in the prior year. The average number of employees increased 3% to 3,037 for the current six-month period, compared to 2,945 for the prior-year six-month period. As we continue to grow, our focus on automation has allowed us to maintain a relatively small staff. As a percentage of total net revenues, employee compensation and benefits expenses were 11%for the current six-month period and 12% for the prior-year six-month period.
Current report
Occupancy, Depreciation and Amortization
Current report
Occupancy, depreciation and amortization expenses, for the current six-month period, decreased $3 million, or 6%, compared to the prior-year six-month period, to $48 million, mainly due to lower depreciation and amortization expense. As a percentage of total net revenues, occupancy, depreciation and amortization expenses were 2% for both the current six-month period and the prior-year six-month period.
Current report
Communications
Current report
Communications expenses, for the current six-month period increased $1 million, or 5%, compared to the prior-year six-month period, to $21 million. As a percentage of total net revenues, communications expenses were 1% for both the current six-month period and the prior-year six-month period.
Current report
General and Administrative
Current report
General and administrative expenses, for the current six-month period, increased $21 million, or 21%, compared to the prior-year six-month period, to $123 million, primarily due toa $16 million increase in advertising expenses. As a percentage of total net revenues, general and administrative expenses were 4% for both the current six-month period and the prior-year six-month period.
Current report
Customer Bad Debt
Current report
Customer bad debt expense, for the current six-month period, decreased $5 million, compared to the prior-year six-month period, to $2 million.
Current report
Income Tax Expense
Current report
Represents the net gains or losses from the Company’s common stock (IBKR shares) held in treasury related to shares withheld from employees to satisfy their tax withholding obligations related to the annual vesting of shares from the amended 2007 Stock Incentive Plan and shares held for distribution to eligible customers participating in one or more promotions.
Current report
Operating Results
Current report
Income before income taxes, for the current six-month period, increased $413 million, or 24%, compared to the prior-year six-month period, to $2,159 million. Pretax profit margin was 74% for the current six-month period and 72% for the prior-year six-month period.
Current report
Comparing our operating results for the current six-month period to the prior-year six-month period using non-GAAP financial measures, adjusted net revenues were $2,876 million, up 15%; adjusted income before income taxes was $2,128 million, up 17%; and adjusted pre-tax profit margin was 74% for the current six-month period compared to 73% for the prior-year six-month period. See the “Non-GAAP Financial Measures” section below in this Item 2 for additional details.
Removed paragraphs (7)
Previous report
Early in the quarter, post-U.S. election enthusiasm helped drive the market to a peak in February. After that, the market declined, with the S&P 500® index closing down 5% from the prior quarter end. The dominance of a small number of technology stocks (the so-called ‘‘Magnificent 7’’), which had driven much of the market’s growth in the previous year, waned as the prices of six of the seven fell significantly more than the S&P 500® index this quarter. Further, inflationary fears reemerged as a result of new tariff policy proposals, their potential impact on world economies, and the possibility of recession.
Previous report
Net interest income increased 3% to $770 million on higher average customer margin loans and customer credit balances.
Previous report
Other fees and services increased 32% to $78 million, led by increases of $9 million in risk exposure fees and $3 million in payments for order flow from exchange-mandated programs.
Previous report
(1)Excludes non-customers.
Previous report
Commissions
Previous report
Other Fees and Services
Reworded paragraphs (58)
Previous wording
Interactive Brokers Group, Inc. (the “Company” or “IBG, Inc.”) is a holding company whose primary asset is its ownership of approximately 25.8% of the membership interests of IBG LLC. The remaining approximately 74.2% of IBG LLC membership interests are held by IBG Holdings LLC (“Holdings”), a holding company that is owned by our founder and Chairman, Mr. Thomas Peterffy and his affiliates, management and other employees of IBG LLC, and certain other members. The table below shows the amount of IBG LLC membership interests held by IBG, Inc. and Holdings as of March 31, 2025.
Current wording
Interactive Brokers Group, Inc. (the “Company” or “IBG, Inc.”) is a holding company whose primary asset is its ownership of approximately 26.0% of the membership interests of IBG LLC. The remaining approximately 74.0% of IBG LLC membership interests are held by IBG Holdings LLC (“Holdings”), a holding company that is owned by our founder and Chairman, Mr. Thomas Peterffy and his affiliates, management and other employees of IBG LLC, and certain other members. The table below shows the amount of IBG LLC membership interests held by IBG, Inc. and Holdings as of June 30, 2025.
Previous wording
We are an automated global electronic broker. We custody and service accounts for hedge and mutual funds, exchange-traded funds (“ETFs”), registered investment advisors, proprietary trading groups, introducing brokers and individual investors. We specialize in routing orders and executing and processing trades in stocks, options, futures, forex, bonds, mutual funds, ETFs and precious metals on more than 160 electronic exchanges and market centers in 36 countries and 28 currencies around the world. In addition, our customers can use our trading platform to trade certain cryptocurrencies through third-party cryptocurrency service providers that execute, clear and custody the cryptocurrencies. We also offer trading in forecast contracts, which are event-based contracts traded on ForecastEx LLC, a CFTC-registered exchange and clearinghouse we established.
Current wording
We are an automated global electronic broker. We custody and service accounts for hedge and mutual funds, exchange-traded funds (“ETFs”), registered investment advisors, proprietary trading groups, introducing brokers and individual investors. We specialize in routing orders and executing and processing trades in stocks, options, futures, forex, bonds, mutual funds, ETFs and precious metals on more than 160 electronic exchanges and market centers in 37 countries and 28 currencies around the world. In addition, our customers can use our trading platform to trade certain cryptocurrencies through third-party cryptocurrency service providers that execute, clear and custody the cryptocurrencies. We also offer trading in forecast contracts, which are event-based contracts traded on ForecastEx LLC, a CFTC-registered exchange and clearinghouse we established.
Previous wording
As an electronic broker, we execute, clear and settle trades globally for both institutional and individual customers. Capitalizing on our proprietary technology, our systems provide our customers with the capability to monitor multiple markets around the world simultaneously and to execute trades electronically in these markets at a low cost, in multiple products and currencies from a single trading account. The ever-growing complexity of multiple market centers across diverse geographies provides us with ongoing opportunities to build and continuously adapt our order routing software to secure excellent execution prices.
Current wording
As an electronic broker, we execute, clear and settle trades globally for both institutional and individual customers. Powered by our proprietary technology, our systems provide our customers with the capability to monitor multiple markets around the world simultaneously and to execute trades electronically in these markets at a low cost, in multiple products and currencies from a single trading account. Our overnight trading facilities, available for an array of instruments, support our customers who trade across time zones. The ever-growing complexity of multiple market centers across diverse geographies provides us with ongoing opportunities to build and continuously adapt our order routing software to secure excellent execution prices.
Previous wording
Our customer base is diverse with respect to geography and type. Currently, approximately 84% of our customers reside outside the U.S. in over 200 countries and territories, and a majority ofnew customers comes from outside the U.S. Over half of our customers’ equity is in institutional accounts such as hedge funds, financial advisors, proprietary trading firms and introducing brokers. Specialized products and services that we have developed successfully attract these accounts. For example, we offer prime brokerage services, including financing and securities lending, to hedge funds; our model portfolio technology and automated share allocation and rebalancing tools are particularly attractive to financial advisors; and our trading platform, global access and low pricing attract introducing brokers.
Current wording
Our customer base is diverse with respect to geography and type. Currently, our customers reside in over 200 countries and territories. We serve individuals, as well as institutional accounts such as hedge funds, financial advisors, proprietary trading firms and introducing brokers. Specialized products and services that we have developed successfully attract institutional accounts. For example, we offer prime brokerage services, including financing and securities lending, to hedge funds; our model portfolio technology and automated share allocation and rebalancing tools are particularly attractive to financial advisors; and our trading platform, global access and low pricing attract introducing brokers.
Previous wording
During the quarter ended March 31, 2025 (“current quarter”), world equities markets were mixed, with Canada, Europe, the United Kingdom (“U.K.”) and Hong Kong up compared to the prior quarter, while the United States (“U.S.”), Japan and Australia registered declines. While central banks in most countries cut their policy rates this quarter, including those in Canada, Europe and the U.K., in the U.S. and Hong Kong they maintained their rates, a contributing factor to the diversity in equity markets results.
Current wording
During the quarter ended June 30, 2025 (“current quarter”), world equities markets rose after a brief decline early in the quarter, with major equity indices in the U.S. and Japan rising double digits; markets in Canada, Germany and Australia rising in the high single digits; and markets in the United Kingdom (“U.K.”) and China rising in the low to mid-single digits. Several central banks continued to cut their policy interest rates this quarter, including those in Europe, Switzerland, the U.K., and Australia, while in the U.S., Canada and Hong Kong rates were unchanged.
Previous wording
Global trading volumes. Worldwide, equities volumes at most major trading venues, except for Japan, increased in the current quarter, as most major market indices rose from the prior-year quarter. In the U.S., according to industry data, average daily volume in listed cash equities volume increased by 33%, exchange-listed equity-based options by 21%, and futures by 13%. Options trading volumes have risen with the growing popularity of shorter-dated options contracts. In futures markets, volumes increased across all product segments, particularly in commodities such as the energy and agriculture sectors, as investors sought to mitigate their exposure to ongoing economic and geopolitical uncertainties. Equity index, interest rate and foreign exchange products also increased.
Current wording
Global trading volumes. Worldwide, equities volumes at most major trading venues rose in the current quarter as most major market indices increased, compared to the prior-year quarter. In the U.S., according to industry data, average daily volume in listed cash equities volume increased by 57%, in exchange-listed equity-based options by 24%, and in futures by 16%, compared to the prior-year quarter. Options trading volumes continue to rise with the growing popularity of shorter-dated options contracts. In futures markets, volumes increased across all product segments, particularly in energy, interest rate, and equity indexes, as many investors sought to mitigate their exposure to ongoing economic and geopolitical uncertainties. Metals, agriculture and foreign exchange futures products also increased.
Previous wording
These factors led to strong results across our major product types. Our customers’ options, futures, equities, and foreign exchange volumes were up 25%, 16%, 47% and 35%, respectively, compared to the prior-year quarter.
Current wording
These factors led to strong results across our major product types. Our customers’ equities, foreign exchange, options, and futures volumes were up 31%, 57%, 24%, and 18%, respectively. compared to the prior-year quarter.
Previous wording
Volatility. U.S. market volatility, as measured by the average Chicago Board Options Exchange Volatility Index(‘‘VIX®’’), increased by 35%, from an average of 13.7 in the prior-year quarter to 18.5 in the current quarter. While volatility levels remain below the levels reached in 2020 through 2022, they rose in the quarter to their highest level in nearly two years as the world geopolitical and economic outlook grew more uncertain.
Current wording
Volatility. U.S. market volatility, as measured by the average Chicago Board Options Exchange Volatility Index (“VIX®”), increased by 69%, from an average of 14.0 in the prior-year quarter to 23.7 in the current quarter. While average volatility levels remained below the levels reached in 2020 and again in 2022, they rose in the current quarter to their highest level in over two years as the world geopolitical and economic outlook grew more uncertain.
Previous wording
Interest Rates. The U.S. Federal Reserve maintained the benchmark federal funds rate during the current quarter, after cutting it three times in the second half of 2024 (in September, November and December), by a cumulative 100 basis points. The U.S. Treasury yield curve remained inverted through the medium term. As noted above, in several countries with developed financial markets, benchmark interest rates declined during the current quarter as central banks’ inclination to encourage growth overcame apprehensions about inflation, despite increasing concern on the uncertainty of U.S. tariff policy.
Current wording
Interest Rates. The U.S. Federal Reserve maintained the benchmark federal funds rate during the current quarter, after cutting it three times in the second half of 2024 (in September, November and December), by a cumulative 100 basis points. The U.S. Treasury yield curve remained inverted in the medium term. As noted above, in several countries with developed financial markets, benchmark interest rates declined during the current quarter as central banks’ inclination to encourage growth overcame apprehensions about inflation, despite increasing concern on the uncertainty of U.S. tariff policy.
Previous wording
Lower U.S. benchmark rates reduce the interest we earn on our segregated cash, the majority of which is invested in short-term U.S. government securities and related instruments. Relatively higher short-term rates, and uncertainty over future U.S. Federal Reserve rate policy, have led us to maintain a short duration portfolio, substantially all of which matured within three months at March 31, 2025, to more closely match our asset and liability maturities on our interest-sensitive assets. Further, our margin balances are tied to benchmark rates, so lower rates also limit the interest we earn on margin lending to our customers. We continue to offer among the lowest rates in the industry on margin lending, and we believe our low rates are an important feature that attracts customers to our platform.
Current wording
Lower U.S. benchmark rates reduce the interest we earn on our segregated cash, the majority of which is invested in short-term U.S. government securities and related instruments. Lower medium-term rates, and uncertainty over future U.S. Federal Reserve rate policy, have led us to maintain a short duration portfolio, substantially all of which matured within three months at June 30, 2025, to more closely match our asset and liability maturities on our interest-sensitive assets. Further, our margin balances are tied to benchmark rates, so lower rates also limit the interest we earn on margin lending to our customers. We continue to offer among the lowest rates in the industry on margin lending, and we believe our low rates are an important feature that attracts customers to our platform.
Previous wording
As an offset, lower rates also reduce our interest expense. For example, in U.S. dollars, we pay interest to customers on their qualified cash balances when the federal funds effective rate is above 0.50%, which it is currently. Any rate cuts are passed through to our customers as we maintain a 0.50% spread. We believe the attractive rates we pay on customer cash are among the highest in the industry and are another important feature that draws customers to our platform.
Current wording
As an offset, lower rates also reduce our interest expense. For example, in U.S. dollars we pay interest to customers on their qualified cash balances when the federal funds effective rate is above 0.50%, which it is currently. Any rate cuts are passed through to our customers, so we maintain a 0.50% spread. We believe the attractive rates we pay on customer cash are among the highest in the industry and are another important feature that draws customers to our platform.
Previous wording
Net interest income on margin loan balances rose 14% compared to the prior-year quarter. This increase was due to the 38% growth in margin loan balances in the current active market environment, somewhat offset by the decline in the average federal funds effective rate to 4.33% in the current quarter from 5.33% in the prior-year quarter, and similar rate cuts in other currencies.
Current wording
Net interest income on margin loan balances declined 6% compared to the prior-year quarter. This decline was due to the 100 basis point decline in the U.S. federal funds rate and to rate cuts in other countries, despite a 16% increase in margin loan balances in the current active market environment. This was more than offset by the increase in interest on segregated cash and securities, and on stronger securities lending.
Previous wording
Higher average balances contributed to a 3% rise in net interest income over the prior-year quarter. The combined effect reduced our net interest margin from 2.41% in the prior-year quarter to 2.10% in the current quarter.
Current wording
Higher average balances contributed to a 7% rise in net interest income over the prior-year quarter, while our net interest margin declined from 2.42% in the prior-year quarter to 2.07% in the current quarter, predominantly from global interest rate cuts. Seethe “Results of Operations – Interest Income and Interest Expense” section below in this Item 2 for additional details.
Previous wording
Currency fluctuations. As a global electronic broker trading on exchanges around the world in multiple currencies, we are exposed to foreign currency risk. We actively manage this exposure by keeping our equity in proportion to a defined basket of 10 currencies we call the ‘‘GLOBAL’’ to diversify our risk and to align our hedging strategy with the currencies that we use in our business. Because we report our financial results in U.S. dollars, the change in the value of the GLOBAL versus the U.S. dollar affects our earnings. During the current quarter, the value of the GLOBAL, as measured in U.S. dollars, increased 0.75% compared to its value at December 31, 2024, which had a positive impact on our comprehensive earnings for the current quarter. A discussion of our approach for managing foreign currency exposure is contained in Part I, Item 3 of this Quarterly Report on Form 10-Q entitled ‘‘Quantitative and Qualitative Disclosures about Market Risk.’’
Current wording
Currency fluctuations. As a global electronic broker trading on exchanges around the world in multiple currencies, we are exposed to foreign currency risk. We actively manage this exposure by keeping our equity in proportion to a defined basket of 10 currencies we call the ‘‘GLOBAL’’ to diversify our risk and to align our hedging strategy with the currencies that we use in our business. Because we report our financial results in U.S. dollars, the change in the value of the GLOBAL versus the U.S. dollar affects our earnings. During the current quarter, the value of the GLOBAL, as measured in U.S. dollars, increased 1.62% compared to its value at March 31, 2025, which had a positive impact on our comprehensive earnings for the current quarter. A discussion of our approach for managing foreign currency exposure is contained in Part I, Item 3 of this Quarterly Report on Form 10-Q entitled ‘‘Quantitative and Qualitative Disclosures about Market Risk.’’
Previous wording
Diluted earnings per share were $1.94 for the current quarter, compared to diluted earnings per share of $1.61 for the prior-year quarter. Adjusted diluted earnings per share were $1.88 for the current quarter and $1.64 for the prior-year quarter. The calculation of diluted earnings per share is detailed in Note 4 – “Equity and Earnings per Share” to the unaudited condensed consolidated financial statements in Part 1, Item 1 of this Quarterly Report on Form 10-Q.
Current wording
Diluted earnings per share were $0.51 for the current quarter, compared to diluted earnings per share of $0.41 for the prior-year quarter. Adjusted diluted earnings per share were $0.51 for the current quarter and $0.44 for the prior-year quarter. The calculation of diluted earnings per share is detailed in Note 4 – “Equity and Earnings per Share” to the unaudited condensed consolidated financial statements in Part 1, Item 1 of this Quarterly Report on Form 10-Q.
Previous wording
For the current quarter, our net revenues were $1,427 million and income before income taxes was $1,055 million, compared to net revenues of $1,203 million and income before income taxes of $866 million in the prior-year quarter. Adjusted net revenues were $1,396 million and adjusted income before income taxes was $1,024 million, compared to adjusted net revenues of $1,216 million and adjusted income before income taxes of $879 million in the prior-year quarter.
Current wording
For the current quarter, our net revenues were $1,480 million and income before income taxes was $1,104 million, compared to net revenues of $1,230 million and income before income taxes of $880 million in the prior-year quarter. Adjusted net revenues were $1,480 million and adjusted income before income taxes was $1,104 million, compared to adjusted net revenues of $1,290 million and adjusted income before income taxes of $940 million in the prior-year quarter.
Previous wording
Commission revenue increased 36% to $514 million on higher customer trading volumes. Customer trading volume in stocks, options and futures increased 47%, 25% and 16%, respectively.
Current wording
Commission revenue increased 27% to $516 million on higher customer trading volumes. Volume in stocks, options and futures increased 31%, 24% and 18%, respectively.
Previous wording
Execution, clearing and distribution fees expenses increased 20% to $121 million, driven by a higher SEC fee rate, a new FINRA Consolidated Audit Trail (“CAT”) fee initiated during the fourth quarter of 2024, and higher customer trading volumes in stocks, options and futures.
Current wording
Execution, clearing and distribution fees expenses increased 1% to $116 million, driven by a new FINRA Consolidated Audit Trail (“CAT”) fee initiated during the fourth quarter of 2024 and higher customer trading volumes in stocks, options and futures, mostly offset by greater capture of liquidity rebates from certain exchanges.
Previous wording
General and administrative expenses increased 24% to $62 million, driven primarily by an increase of $8 million in advertising expenses.
Current wording
General and administrative expenses increased 17% to $61 million, driven primarily by an increase of $8 million in advertising expenses.
Previous wording
Pretax profit margin was 74% for the current quarter compared to 72% in the prior-year quarter. Adjusted pretax profit margin for the current quarter was 73% compared to 72% in the prior-year quarter.
Current wording
Pretax profit margin was 75% for the current quarter compared to 72% in the prior-year quarter. Adjusted pretax profit margin for the current quarter was 75% compared to 73% in the prior-year quarter.
Previous wording
Total equity as of March 31, 2025 was $17.5 billion.
Current wording
Total equity as of June 30, 2025 was $18.5 billion.
Previous wording
In connection with our currency diversification strategy, as of March 31, 2025, approximately 24% of our equity was denominated in currencies other than the U.S. dollar. In the current quarter, our currency diversification strategy increased our comprehensive earnings by $127 million (compared to a decrease of $104 million in the prior-year quarter), as the U.S. dollar value of the GLOBAL increased by approximately 0.75%, compared to its value as of December 31, 2024. The effects of our currency diversification strategy are reported as (1) a component of “Other income” (gain of $20 million) in the consolidated statements of comprehensive income and (2)other comprehensive income (“OCI”) (gain of $107 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.
Current wording
In connection with our currency diversification strategy, as of June 30, 2025, approximately 25% of our equity was denominated in currencies other than the U.S. dollar. In the current quarter, our currency diversification strategy increased our comprehensive earnings by $301 million (compared to a decrease of $30 million in the prior-year quarter), as the U.S. dollar value of the GLOBAL increased by approximately 1.62%, compared to its value as of March 31, 2025. The effects of our currency diversification strategy are reported as (1) a component of “Other income” (loss of $5 million) in the consolidated statements of comprehensive income and (2)other comprehensive income (“OCI”) (gain of $306 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.
Previous wording
(1)Futures contract volume includes options on futures.
Current wording
Futures contract volume includes options on futures.
Previous wording
(1)Futures contract volume includes options on futures.
Current wording
Futures contract volume includes options on futures.
Previous wording
(2)Daily average revenue trades (“DARTs”) are based on customer orders.
Current wording
Daily average revenue trades (“DARTs”) are based on customer orders.
Previous wording
(3)Commissionable order – a customer order that generates commissions.
Current wording
Commissionable order – a customer order that generates commissions.
Previous wording
Total net revenues, for the current quarter, increased $224 million, or 19%, compared to the prior-year quarter, to $1,427. The increase in net revenues was due to higher commissions, other income, net interest income, and other fees and services.
Current wording
Total net revenues, for the current quarter, increased $250 million, or 20%, compared to the prior-year quarter, to $1,480 million. The increase in net revenues was due to higher commissions, other income and net interest income, partially offset by lower other fees and services.
Previous wording
Commissions, for the current quarter, increased $135 million, or 36%, compared to the prior-year quarter, to $514 million, driven by higher customer trading volumes across all product types. Total customer options and futures contract and stock share volumes increased 25%, 16% and 47%, respectively. Total DARTs for the current quarter increased 50% to 3.5 million, compared to 2.4 million for the prior-year quarter. Average commission per commissionable order for cleared customers, for the current quarter, decreased 6% to $2.76, compared to $2.93 for the prior-year quarter, due to smaller average order sizes across all product classes, lower average commissions per contract in options and futures, and greater capture of liquidity rebates passed through to customers.
Current wording
Commissions, for the current quarter, increased $110 million, or 27%, compared to the prior-year quarter, to $516 million, driven by higher customer trading volumes across all product types. Total customer options and futures contract and stock share volumes increased 24%, 18% and 31%, respectively. Total DARTs for the current quarter increased 49% to 3.6 million, compared to 2.4 million for the prior-year quarter. Average commission per commissionable order for cleared customers, for the current quarter, decreased 12% to $2.65, compared to $3.01 for the prior-year quarter, due to smaller average order sizes across all product classes, lower average commissions per contract in options and futures, and greater capture of liquidity rebates passed through to customers.
Previous wording
Net interest income (interest income less interest expense), for the current quarter, increased $23 million, or 3%, compared to the prior-year quarter, to $770 million. The increase in net interest income was driven by higher customer margin loans and customer credit balances, partially offset by lower benchmark interest rates.
Current wording
Net interest income (interest income less interest expense), for the current quarter, increased $68 million, or 9%, compared to the prior-year quarter, to $860 million. The increase in net interest income was driven by higher average customer credit balances and securities lending activity, partially offset by lower benchmark interest rates. In the current quarter, net interest income includes a $26 million one-time credit related to recovery of taxes withheld at source.
Previous wording
Net interest income on customer balances, for the current quarter, increased $60 million compared to the prior-year quarter, driven by a $17.7 billion increase in average customer margin loans and an $18.5 billion increase in average customer credit balances. See the “Business Environment” section above in this Item 2 for a further discussion about the change in interest rates in the current quarter.
Current wording
Net interest income on customer balances, for the current quarter, increased $7 million compared to the prior-year quarter, driven by increases of $27.3 billion, $18.6 billion and $8.5 billion in average customer credit balances, segregated cash and securities, and margin loans, respectively. Yields on all three components decreased as rates have declined worldwide. See the “Business Environment” section above in this Item 2 for a further discussion about the change in interest rates in the current quarter.
Previous wording
In the current quarter, average securities borrowed balances decreased 9%, to $4.9 billion, and average securities loaned balances increased 38%, to $16.1 billion, compared to the prior-year quarter. Net interest earned from securities lending is affected by the level of demand for securities positions held by our customers that investors are looking to sell short. During the current quarter, net interest earned from securities lending transactions decreased $16 million, or 62%, compared to the prior-year quarter, driven by fewer so-called “hard to borrow” stocks industry wide. However, as noted above, the rise in benchmark interest rates from near zero in 2022 has shifted a portion of the interest reported as generated by lending securities to interest income on segregated cash (see further explanation above). It should be noted that securities lending transactions entered into to support customer activity may produce interest income (expense) that is offset by interest expense (income) related to customer balances.
Current wording
In the current quarter, average securities borrowed balances increased 19%, to $7.0 billion, and average securities loaned balances increased 26%, to $17.2 billion, compared to the prior-year quarter. Net interest earned from securities lending is affected by the level of demand for securities positions held by our customers that investors are looking to sell short. During the current quarter, net interest earned from securities lending transactions increased $35 million, or 140%, compared to the prior-year quarter, driven by an increase in so-called “hard to borrow” stocks that we were able to capitalize on. However, as noted above, the rise in benchmark interest rates from near zero in 2022 has shifted a portion of the interest reported as generated by lending securities to interest income on segregated cash (see further explanation above). It should be noted that securities lending transactions entered into to support customer activity may produce interest income (expense) that is offset by interest expense (income) related to customer balances.
Previous wording
We estimate that if the interest earned and paid on cash collateral related to our securities lending transactions were included under “Securities borrowed and loaned, net” in the table below, the total net interest income related to our securities lending activities would have been $186 million in the current quarter, compared to $167 million in the prior-year quarter. Such additional interest attributed to our securities lending activities would be reclassified from net interest income on “Segregated cash and securities, net” and “Customer credit balances, net” in the table below, so it would have no effect on our overall net interest income or net interest margin.
Current wording
We estimate that if the interest earned and paid on cash collateral related to our securities lending transactions were included under “Securities borrowed and loaned, net” in the table below, the total net interest income related to our securities lending activities would have been $251 million in the current quarter, compared to $194 million in the prior-year quarter. Such additional interest attributed to our securities lending activities would be reclassified from net interest income on “Segregated cash and securities, net” and “Customer credit balances, net” in the table below, so it would have no effect on our overall net interest income or net interest margin.
Previous wording
(1)Represents the average amount of customer cash swept into FDIC-insured banks as part of our Insured Bank Deposit Sweep Program. This item is not recorded in the Company'scondensed consolidated statements of financial condition. Income derived from program deposits is reported in other net interest income in the table above.
Current wording
Represents the average amount of customer cash swept into FDIC-insured banks as part of our Insured Bank Deposit Sweep Program. This item is not recorded in the Company'scondensed consolidated statements of financial condition. Income derived from program deposits is reported in other net interest income in the table above.
Previous wording
(2)Interest income and interest expense on customer margin loans and customer credit balances, respectively, are calculated on daily cash balances within each customer’s account on a net basis, which may result in an offset of balances across multiple account segments (e.g., between securities and commodities segments).
Current wording
Interest income and interest expense on customer margin loans and customer credit balances, respectively, are calculated on daily cash balances within each customer’s account on a net basis, which may result in an offset of balances across multiple account segments (e.g., between securities and commodities segments).
Previous wording
(3)Includes income from financial instruments that has the same characteristics as interest, but is reported in other fees and services and other income in the Company’s condensed consolidated statements of comprehensive income. For the three months ended March 31, 2025 and 2024, $8 million and $6 million were reported in other fees and services, respectively, and $16 and $9 million were reported in other income, respectively.
Current wording
Includes income from financial instruments that has the same characteristics as interest, but is reported in other fees and services and other income in the Company’s condensed consolidated statements of comprehensive income. For the three months ended June 30, 2025 and 2024, $9 million and $7 million were reported in other fees and services, respectively, and $18 million and $6 million were reported in other income, respectively.
Previous wording
Execution, clearing and distribution fees, for the current quarter, increased $20 million, or 20%, compared to the prior-year quarter, to $121 million, mainly driven by an $18 million increase in SEC regulatory fees due to an increase in the SEC fee rate effective May 22, 2024, and $3 million due to a new FINRA Consolidated Audit Trail (“CAT”) fee initiated in the fourth quarter of 2024, partially offset by greater capture of liquidity rebates due to higher customer trading volumes. SEC and CAT fees, as with other regulatory fees, are passed through to customers. As a percentage of total net revenues, execution, clearing and distribution fees were 8% for both the current quarter and the prior-year quarter.
Current wording
Execution, clearing and distribution fees, for the current quarter, increased $1 million, or 1%, compared to the prior-year quarter, to $116 million, mainly driven by a $3 million increase in regulatory fees due to a new FINRA Consolidated Audit Trail (“CAT”) fee initiated in the fourth quarter of 2024, and higher customer trading volumes in stocks, options and futures, mostly offset by greater capture of liquidity rebates due to higher customer trading volumes. CAT fees, as with other regulatory fees, are passed through to customers. As a percentage of total net revenues, execution, clearing and distribution fees were 8% for the current quarter and 9% for the prior-year quarter.
Previous wording
Employee compensation and benefits expenses, for the current quarter, increased $9 million, or 6%, compared to the prior-year quarter, to $154 million associated with a combination of staffing increases and inflation. The average number of employees increased 2% to 3,013 for the current quarter, compared to 2,942 for the prior-year quarter. As we continue to grow, our focus on automation has allowed us to maintain a relatively small staff. As a percentage of total net revenues and adjusted net revenues, employee compensation and benefits expenses were both 11%for the current quarter and 12% for the prior-year quarter.
Current wording
Employee compensation and benefits expenses, for the current quarter, increased $17 million, or 12%, compared to the prior-year quarter, to $163 million associated with a combination of staffing increases, inflation, and a $5 million increase in U.S. Social Security and Medicare, and other social insurance taxes driven by the annual vesting of the Company’s Stock Incentive Plan units at a higher stock price than in the prior year. The average number of employees increased 4% to 3,059 for the current quarter, compared to 2,951 for the prior-year quarter. As we continue to grow, our focus on automation has allowed us to maintain a relatively small staff. As a percentage of total net revenues, employee compensation and benefits expenses were 11%for the current quarter and 12% for the prior-year quarter.
Previous wording
Occupancy, depreciation and amortization expenses, for the current quarter, decreased $2 million, or 8%, compared to the prior-year quarter, to $24 million, mainly due to lower depreciation and amortization expense. As a percentage of total net revenues, occupancy, depreciation and amortization expenses were 2% for both the current quarter and the prior-year quarter.
Current wording
Occupancy, depreciation and amortization expenses, for the current quarter, decreased $1 million, or 4%, compared to the prior-year quarter, to $24 million, mainly due to lower depreciation and amortization expense. As a percentage of total net revenues, occupancy, depreciation and amortization expenses were 2% for both the current quarter and the prior-year quarter.
Previous wording
Communications expenses, for the current quarter, were unchanged from the prior-year quarter, at $10 million. As a percentage of total net revenues, communications expenses were 1% for both the current quarter and the prior-year quarter.
Current wording
Communications expenses, for the current quarter, increased $1 million, or 10%, compared to the prior-year quarter, to $11 million. As a percentage of total net revenues, communications expenses were 1% for both the current quarter and the prior-year quarter.
Previous wording
General and administrative expenses, for the current quarter, increased $12 million, or 24%, compared to the prior-year quarter, to $62 million, primarily due toan $8 million increase in advertising expenses. As a percentage of total net revenues, general and administrative expenses were 4% for both the current quarter and the prior-year quarter.
Current wording
General and administrative expenses, for the current quarter, increased $9 million, or 17%, compared to the prior-year quarter, to $61 million, primarily due toan $8 million increase in advertising expenses. As a percentage of total net revenues, general and administrative expenses were 4% for both the current quarter and the prior-year quarter.
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Rearranged current paragraphs (18)
Current report — wording carried from elsewhere
Non-interest expenses, for the current quarter, increased $26 million, or 7%, compared to the prior-year quarter, to $376 million, mainly due to a $17 million increase in employee compensation and benefits, and a $9 million increase in general and administrative expenses. As a percentage of total net revenues, non-interest expenses were 25% for the current quarter and 28% for the prior-year quarter.
Current report — wording carried from elsewhere
Total net revenues, for the current six-month period, increased $474 million, or 19%, compared to the prior-year six-month period, to $2,907 million. The increase in net revenues was due to higher commissions, other income, net interest income, and other fees and services.
Current report — wording carried from elsewhere
Commissions, for the current six-month period, increased $245 million, or 31%, compared to the prior-year six-month period, to $1,030 million, driven by higher customer trading volumes across all product types. Total customer options and futures contract and stock share volumes increased 24%, 17% and 39%, respectively. Total DARTs for the current six-month period increased 43% to 3.5 million, compared to 2.5 million for the prior-year six-month period. Average commission per commissionable order for cleared customers, for the current six-month period, decreased 9% to $2.71, compared to $2.97 for the prior-year six-month period, due to smaller average order sizes across all product classes, lower average commissions per contract in options and futures, and greater capture of liquidity rebates passed through to customers.
Current report — wording carried from elsewhere
The Company measures return on interest-earning assets using net interest margin (“NIM”). NIM is computed by dividing the annualized net interest income by the average interest-earning assets for the period. Interest-earning assets consist of cash and securities segregated for regulatory purposes (including U.S. government securities andsecurities purchased under agreements to resell), customer margin loans, securities borrowed, other interest-earning assets (solely firm assets) and customer cash balances swept into FDIC-insured banks as part of our Insured Bank Deposit Sweep Program. Interest-bearing liabilities consist of customer credit balances, securities loaned, and other interest-bearing liabilities.
Current report — wording carried from elsewhere
Yields are generally a reflection of benchmark interest rates in each currency in which the Company and its customers hold cash balances. Because a meaningful portion of customer cash and margin loans are denominated in currencies other than the U.S. dollar, changes in U.S. benchmark interest rates do not impact the total amount of segregated cash and securities, customer margin loans and customer credit balances. Furthermore, because interest, when benchmark rates are at sufficiently high levels, is paid only on eligible cash credit balances (i.e., balances over $10 thousand or equivalent, in securities accounts with over $100 thousand in equity, and in smaller accounts at reduced rates), changes in benchmark interest rates are not passed through to the total amount of customer credit balances. Finally, the Company’s policies with respect to currencies with near zero or negative interest rates impact the overall yields on segregated cash and customer credit balances as effective interest rates in those currencies move above or below zero.
Current report — wording carried from elsewhere
We earn income on securities loaned and borrowed to support customer long and short stock holdings in margin accounts.
Current report — wording carried from elsewhere
Our Stock Yield Enhancement Program provides an opportunity for customers with fully-paid stock to allow us to lend it out. We pay customers a rebate on the cash collateral generally equal to 50% of a market-based rate for lending the shares. We place cash and/or U.S. Treasury securities as collateral securing the loans in the customer’s account, which is held in segregated accounts or at an affiliate acting as collateral agent for the benefit of our customer.
Current report — wording carried from elsewhere
A securities lending transaction generates (1) net interest earned on lending a security, which is based on supply and demand for that security, and (2) interest earned on the cash collateral deposited for the loan of that security, which is based on benchmark interest rates. Interest on this collateral is reported as net interest on segregated cash, since cash collateral from securities lending is held in specially-designated bank accounts for the benefit of customers, in accordance with U.S. customer protection rules. Generally, as benchmark interest rates rise, while the overall revenue generated from a securities lending transaction may not change, the portion derived from interest earned on the cash collateral, which is classified as net interest income on “Segregated cash and securities, net” increases, while the portion classified as “Securities borrowed and loaned, net” decreases.
Current report — wording carried from elsewhere
In the current six-month period, average securities borrowed balances increased 6%, to $5.9 billion, and average securities loaned balances increased 31%, to $16.7 billion, compared to the prior-year six-month period. Net interest earned from securities lending is affected by the level of demand for securities positions held by our customers that investors are looking to sell short. During the current six-month period, net interest earned from securities lending transactions increased $19 million, or 37%, compared to the prior-year six-month period, driven by an increase in so-called “hard-to-borrow” stocks that we were able to capitalize on. However, as noted above, the rise in benchmark interest rates from near zero in 2022 has shifted a portion of the interest reported as generated by lending securities to interest income on segregated cash (see further explanation above). It should be noted that securities lending transactions entered into to support customer activity may produce interest income (expense) that is offset by interest expense (income) related to customer balances.
Current report — wording carried from elsewhere
We estimate that if the interest earned and paid on cash collateral related to our securities lending transactions were included under “Securities borrowed and loaned, net” in the table below, the total net interest income related to our securities lending activities would have been $437 million in the current six-month period, compared to $360 million in the prior-year six-month period. Such additional interest attributed to our securities lending activities would be reclassified from net interest income on “Segregated cash and securities, net” and “Customer credit balances, net” in the table below, so it would have no effect on our overall net interest income or net interest margin.
Current report — wording carried from elsewhere
The table below presents net interest income information corresponding to interest-earning assets and interest-bearing liabilities for the periods indicated.
Current report — wording carried from elsewhere
Represents the average amount of customer cash swept into FDIC-insured banks as part of our Insured Bank Deposit Sweep Program. This item is not recorded in the Company'scondensed consolidated statements of financial condition. Income derived from program deposits is reported in other net interest income in the table above.
Current report — wording carried from elsewhere
Interest income and interest expense on customer margin loans and customer credit balances, respectively, are calculated on daily cash balances within each customer’s account on a net basis, which may result in an offset of balances across multiple account segments (e.g., between securities and commodities segments).
Current report — wording carried from elsewhere
Includes income from financial instruments that has the same characteristics as interest, but is reported in other fees and services and other income in the Company’s condensed consolidated statements of comprehensive income. For the six months ended June 30, 2025 and 2024, $17 million and $13 million were reported in other fees and services, respectively, and $34 million and $15 million were reported in other income, respectively.
Current report — wording carried from elsewhere
Execution, clearing and distribution fees, for the current six-month period, increased $21 million, or 10%, compared to the prior-year six-month period, to $237 million, mainly driven by a $22 million increase in SEC regulatory fees due to an increase in the SEC fee rate from May 22, 2024 to May 14, 2025, a $6 million increase due to a new FINRA Consolidated Audit Trail (“CAT”) fee initiated in the fourth quarter of 2024, and higher customer trading volumes in stocks, options and futures; partially offset by greater capture of liquidity rebates due to higher customer trading volumes. SEC and CAT fees, as with other regulatory fees, are passed through to customers. As a percentage of total net revenues, execution, clearing and distribution fees were 8% for the current six-month period and 9% for theprior-year six-month period.
Current report — wording carried from elsewhere
We pay U.S. federal, state and local income taxes on our taxable income, which is proportional to the percentage we own of IBG LLC. Also, our operating subsidiaries are subject to income tax in the respective jurisdictions in which they operate.
Current report — wording carried from elsewhere
Income tax expense, for the currentsix-month period, increased $47 million, or 33%, compared to the prior-yearsix-month period, to $189 million, primarily due to (1) higher income before taxes at our operating subsidiaries outside the U.S. and a higher income tax rate in a foreign jurisdiction following the adoption of the minimum effective tax rate of 15% on January 1, 2025; (2) higher income before income taxes subject to U.S. income tax at IBG, Inc.; and (3) IBG, Inc.’s higher average ownership percentage of IBG LLC, which rose from 25.5% in the prior-year six-month period to 25.9% in the current six-month period.
Current report — wording carried from elsewhere
The table below presents information about our income tax expense for the periods indicated.