Interactive Brokers Group, Inc.
For the period ended Mar 31, 2026. Filed May 7, 2026.
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.
Mar 31, 2026 · Filed May 7, 2026
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 2025-09-30; filed 2025-11-05.
0001381197-25-000158
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001381197-26-000093
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 220 previous paragraphs and 179 current paragraphs.
111 unchanged; 54 reworded; 13 added; 37 removed; 18 previous and 1 current paragraphs rearranged.
Tables are not compared: 14 previous and 12 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 (13)
Current report
During the quarter ended March 31, 2026 (“current quarter”), global equity markets were mixed, with most major market indices declining amid uncertainties related to ongoing geopolitical conflicts and inflationary pressures, including those associated with rising oil prices. In the Americas, U.S. equity markets began the quarter strongly in January but declined over the rest of the period, with the S&P 500® index decreasing 4.6% compared to the prior quarter, while Canadian markets posted modest gains. Most European markets also declined. In the Asia-Pacific region, performance was mixed, with declines in China, Hong Kong and Australia, and gains in Japan.
Current report
Within the U.S., market performance diverged as investors rotated away from large-cap technology stocks into commodity-linked sectors, particularly energy. The decline in the S&P 500® index was driven in part by the group of large-cap technology companies commonly referred to as the “Magnificent Seven”, each of which underperformed the broader market, resulting in relative outperformance by the remainder of the index.
Current report
Inflationary pressures re-emerged during the quarter, contributing to uncertainty regarding monetary policy across several major economies. Most central banks maintained policy interest rates and adopted a cautious, wait-and-see approach, as ongoing geopolitical conflicts and trade policy uncertainty reduced the likelihood of near-term rate cuts. As a result, expectations for additional monetary easing faded, weighing on market sentiment. Retail investor participation remained elevated, with continued engagement in equity, futures and options markets.
Current report
These market dynamics produced strong results across our major product types. Customer trading volumes in equities, options, and futures increased by 25%, 16%, and 20%, respectively, compared to the prior-year quarter, though foreign exchange volumes decreased by 12% over the same period.
Current report
Interest Rates. The U.S. Federal Reserve maintained the benchmark federal funds rate during the quarter, after cutting it three times in the second half of 2025 (September, October and December) by a total of 75 basis points. This resulted in a target range of 3.50% to 3.75% at year end, the lowest level since late 2022. During the current quarter, the U.S. Treasury yield curve inversion from the short- to medium-term substantially flattened, before rising steeply toward longer-term rates. In most countries with developed financial markets, benchmark interest rates also remained unchanged during the current quarter as inflationary pressures resurfaced and central banks adopted a cautious approach before adjusting monetary policy.
Current report
Net interest income on margin lending rose compared to the prior-year quarter. This increase was due to the growth in margin loan balances in the current active market environment, despite the decline in the average federal funds effective rate to 3.64% in the current quarter from 4.33% in the prior-year quarter.
Current report
Higher average balances contributed to a 17% rise in net interest income over the prior-year quarter. Net interest margin declined from 2.10% in the prior-year quarter to 1.88% in the current quarter primarily due to lower interest rates.
Current report
Net interest income increased 17% to $904 million on higher average customer margin loans and customer credit balances.
Current report
Commissions
Current report
Other Fees and Services
Current report
Other Income
Current report
Customer bad debt expense, for the current quarter, was unchanged from the prior-year quarter, at $1 million.
Removed paragraphs (37)
Previous report
During the quarter ended September 30, 2025 (“current quarter”), world equities markets continued their strong performance, with major equity indices rising in most regions. The U.S. market rose 8%, and Europe, the U.K. and Australia recorded single-digit gains, while Germany declined slightly. Markets in Canada, Japan, Hong Kong and China saw double-digit gains this quarter. Several central banks continued to cut their policy interest rates this quarter, including those in the U.S., the U.K., Canada, Australia and Hong Kong. Meanwhile, Japan, Europe and Switzerland kept rates unchanged.
Previous report
The market continued to recover from concerns earlier this year about the potential imposition of global tariffs, with the S&P 500 up 34% by quarter end from its April lows. This quarter, the market again saw the dominance of a small number of technology stocks (the so-called ‘‘Magnificent 7’’), with those names driving more than half of the S&P 500’s return in the current quarter. More broadly, artificial intelligence (AI)-related stocks, including these seven, accounted for nearly three-quarters of the index’s return, underscoring AI’s prominent role as an investment theme. Demand for AI companies also helped spark a rebound in the initial public offering (IPO) market, as investors sought out more opportunities in new technology and AI firms.
Previous report
Various market cross-currents led to mixed results across our major product types. While our customers’ equities and options volumes were up 67% and 27%, respectively, futures and foreign exchange volumes were down 7% and 6%, respectively, compared to the prior-year quarter.
Previous report
Interest Rates. During the current quarter, the U.S. Federal Reserve cut the benchmark federal funds rate for the first time this year, lowering it by 25 basis points to a range of 4.00% to 4.25%. The U.S. Treasury yield curve remained inverted through the medium term, though less so than in prior quarters. As noted above, in several countries with developed financial markets, benchmark interest rates declined during the current quarter as central banks were inclined to focus more on growth than inflation.
Previous report
Net interest income on margin loan balances increased 4% compared to the prior-year quarter, despite a 96 basis point decline in the U.S. federal funds rate and rate cuts in other countries. The net interest income increase reflected a 30% increase in margin loan balances and a 33% increase in segregated cash and securities balances driven by our growing customer base. Additionally, interest on securities lending increased due to higher activity during the quarter.
Previous report
These factors contributed to a 21% rise in net interest income over the prior-year quarter, while our net interest margin declined from 2.37% in the prior-year quarter to 2.16% in the current quarter, predominantly from global interest rate cuts. See the “Results of Operations – Interest Income and Interest Expense” section below in this Item 2 for additional details.
Previous report
Net interest income increased 21% to $967 million on stronger securities lending activity and higher average customer margin loans and customer credit balances.
Previous report
General and administrative expenses decreased 59% to $62 million, driven primarily by the non-recurrences of $88 million related to legal and regulatory matters and of $12 million related to the consolidation of our European subsidiaries; partially offset by an increase of $10 million in advertising expenses.
Previous report
Customer bad debt expense, for the current quarter, decreased $9 million, compared to the prior-year quarter, driven by a net recovery of $2 million in the current quarter and the non-recurrence of customer losses during short periods of extreme market volatility in the prior-year quarter.
Previous report
Nine Months Ended September 30, 2025 (“current nine-month period”) compared to the Nine Months Ended September 30, 2024 (“prior-year nine-month period”)
Previous report
Net Revenues
Previous report
Total net revenues, for the current nine-month period, increased $764 million, or 20%, compared to the prior-year nine-month period, to $4,562 million. The increase in net revenues was due to higher commissions, net interest income, other income, and other fees and services.
Previous report
Commissions, for the current nine-month period, increased $347 million, or 28%, compared to the prior-year nine-month period, to $1,567 million, driven by higher customer trading volumes across all product types. Total customer options and futures contract and stock share volumes increased 25%, 9% and 49%, respectively. Total DARTs for the current nine-month period increased 44% to 3.6 million, compared to 2.5 million for the prior-year nine-month period. Average commission per commissionable order for cleared customers, for the current nine-month period, decreased 8% to $2.70, compared to $2.92 for the prior-year nine-month period, mainly due to greater capture of liquidity rebates passed through to customers.
Previous report
Other income, for the current nine-month period, increased $154 million, or 405%, compared to the prior-year nine-month period, to $192 million. This increase was mainly due to (1) $85 million related to our investing activities, (2) 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, as previously disclosed; and (3) $16 million related to our currency diversification strategy, which gained $19 million in the current nine-month period compared to $3 million in the prior-year nine-month period.
Previous report
Interest Income and Interest Expense
Previous report
Net interest income (interest income less interest expense), for the current nine-month period, increased $256 million, or 11%, compared to the prior-year nine-month period, to $2,597 million. The increase in net interest income was driven by stronger securities lending activity and higher average customer margin loans and customer credit balances, partially offset by lower benchmark interest rates. In the current nine-month period, net interest income includes a $26 million one-time credit related to recovery of taxes withheld at source.
Previous report
Net interest income on “Segregated cash and securities, net” for the nine months ended September 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 were determined to be fully refundable.
Previous report
Non-Interest Expenses
Previous report
Non-interest expenses, for the current nine-month period, decreased $52 million, or 5%, compared to the prior-year nine-month period, to $1,091 million, mainly due to a $70 million decrease in general and administrative expenses, a $14 million decrease in customer bad debt expense, a $5 million decrease in occupancy, depreciation and amortization expense, and a $3 million decrease in execution, clearing and distribution fees; partially offset by a $37 million increase in employee compensation and benefits. As a percentage of total net revenues, non-interest expenses were 24% for the current nine-month period and 30% for the prior-year nine-month period.
Previous report
Execution, Clearing and Distribution Fees
Previous report
Execution, clearing and distribution fees, for the current nine-month period, decreased $3 million, or 1%, compared to the prior-year nine-month period, to $329 million, mainly driven by greater capture of liquidity rebates from certain exchanges due to higher trading volumes in stocks and options; mostly offset by higher clearing and regulatory fees due to higher trading volumes and also due to a new FINRA CAT fee, which was initiated in the fourth quarter of 2024. 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 7% for the current nine-month period and 9% for theprior-year nine-month period.
Previous report
Employee Compensation and Benefits
Previous report
Employee compensation and benefits expenses, for the current nine-month period, increased $37 million, or 8%, compared to the prior-year nine-month period, to $473 million associated with a combination of staffing increases, inflation, and a $7 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 3,061 for the current nine-month period, compared to 2,951 for the prior-year nine-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 10%for the current nine-month period and 11% for the prior-year nine-month period.
Previous report
Occupancy, Depreciation and Amortization
Previous report
Occupancy, depreciation and amortization expenses, for the current nine-month period, decreased $5 million, or 6%, compared to the prior-year nine-month period, to $72 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 nine-month period and the prior-year nine-month period.
Previous report
Communications
Previous report
Communications expenses, for the current nine-month period increased $3 million, or 10%, compared to the prior-year nine-month period, to $32 million. As a percentage of total net revenues, communications expenses were 1% for both the current nine-month period and the prior-year nine-month period.
Previous report
General and Administrative
Previous report
General and administrative expenses, for the current nine-month period, decreased $70 million, or 27%, compared to the prior-year nine-month period, to $185 million, primarily due to the non-recurrences of $88 million related to a legal settlement and of $12 million related to the consolidation of our European subsidiaries; partially offset by a $27 million increase in advertising expenses. As a percentage of total net revenues, general and administrative expenses were 4% for the current nine-month period and 7% for the prior-year nine-month period.
Previous report
Customer Bad Debt
Previous report
Customer bad debt expense, for the current nine-month period, decreased $14 million, compared to the prior-year nine-month period, to less than $1 million, mainly driven by the non-recurrence of customer losses during short periods of extreme market volatility in the prior-year nine-month period.
Previous report
Income Tax Expense
Previous report
Income tax expense, for the current nine-month period, increased $98 million, or 45%, compared to the prior-year nine-month period, to $315 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 25.6% in the prior-year nine-month period to 26.0% in the current nine-month period.
Previous report
Operating Results
Previous report
Income before income taxes, for the current nine-month period, increased $816 million, or 31%, compared to the prior-year nine-month period, to $3,471 million. Pretax profit margin was 76% for the current nine-month period and 70% for the prior-year nine-month period.
Previous report
Comparing our operating results for the current nine-month period to the prior-year nine-month period using non-GAAP financial measures, adjusted net revenues were $4,486 million, up 17%; adjusted income before income taxes was $3,395 million, up 26%; and adjusted pre-tax profit margin was 76% for the current nine-month period compared to 70% for the prior-year nine-month period. See the “Non-GAAP Financial Measures” section below in this Item 2 for additional details.
Previous report
ITEM 3. QUANTITATIVE AND QUALITATIVE
Reworded paragraphs (54)
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 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 weestablished.
Current wording
We are an automated global 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, clearing and settling trades in stocks, options, futures, forex, bonds, mutual funds, ETFs and precious metals on more than 170 electronic exchanges and market centers in 40 countries and 29 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 prediction markets, which are event-based contracts traded on ForecastEx, 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. 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 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.
Current wording
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 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
The following summarizes the key economic drivers that affect our business and how they compared to the prior-year quarter:
Current wording
The following is a summary of the key economic drivers that affect our business and how they compared to the prior-year quarter:
Previous wording
Global trading volumes. Worldwide, equities volumes at most major trading venues rose in the current quarter as most major market indices rose, compared to the prior-year quarter. In the U.S., according to industry data, average daily volume in listed cash equities volume increased by 53% and in exchange-listed equity-based options by 25%, while futures volumes declined by 10%, 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 decreased across most product segments, particularly in interest rate, equity index, foreign exchange and energy, as diminished geopolitical and economic uncertainty reduced hedging activity in those areas.
Current wording
Global trading volumes. Worldwide, equity trading volumes at most major venues increased during the current quarter compared to the prior-year quarter. In the U.S., according to industry data, average daily volume increased by 27% in listed cash equities, 20% in exchange-listed equity-based options and 22% in futures, each compared to the prior-year quarter. Options trading volumes continue to benefit from the growing popularity of shorter-dated contracts. In futures markets, volumes increased across all major product categories, including metals, energy, interest rates, equity indices, agriculture products and foreign exchange, as market participants sought to manage exposure to ongoing economic and geopolitical uncertainties.
Previous wording
Note that while U.S. options, futures and cash equities volumes are readily comparable measures, they reflect most but not all of the global volumes that generate our commission revenue. See ‘‘Trading Volumes and Customer Statistics’’ below in this Item 2 for additional details regarding our trade volumes, contract and share volumes, and customer statistics.
Current wording
Note that while U.S. cash equities, options and futures volumes are readily comparable measures, they reflect most but not all of the global volumes that generate our commission revenue. See ‘‘Trading Volumes and Customer Statistics’’ below in this Item 7 for additional details regarding our trade volumes, contract and share volumes, and customer statistics.
Previous wording
Volatility. U.S. market volatility, as measured by the average Chicago Board Options Exchange Volatility Index (“VIX®”), declined by 6%, from an average of 17.1 in the prior-year quarter to 16.0 in the current quarter, and remained below the elevated levels reached in 2020 and 2022. The less volatile environment reflected steady economic activity, increased confidence in the Federal Reserve’s easing trajectory, and reduced uncertainty surrounding global trade tariff policies.
Current wording
Volatility. U.S. market volatility, as measured by the average Chicago Board Options Exchange Volatility Index (‘‘VIX®’’), increased by 10%, from an average of 18.5 in the prior-year quarter to 20.4 in the current quarter, still below the elevated levels reached in 2020 and 2022. In general, higher volatility typically enhances our performance because it often correlates positively with customer trading activity across product types.
Previous wording
Lower U.S. benchmark rates reduce the interest rate 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, all of which matured within three months at September 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. Higher balances can mitigate the impact of rate reductions. 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. A relatively flat near-term yield curve and uncertainty over future U.S. Federal Reserve rate policy have led us to maintain a short duration portfolio, all of which matured within three months at March 31, 2026, 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, 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.
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 has been since May 2022. 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
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, decreased 0.25% compared to its value at June 30, 2025, which had a negative 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 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, decreased 0.30% compared to its value at December 31, 2025, which had a negative impact on our comprehensive earnings for the current year. 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 $0.59 for the current quarter, compared to diluted earnings per share of $0.42 for the prior-year quarter. Adjusted diluted earnings per share were $0.57 for the current quarter and $0.40 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 $0.59 for the current quarter, compared to diluted earnings per share of $0.48 for the prior-year quarter. Adjusted diluted earnings per share were $0.60 for the current quarter and $0.47 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 $1,655 million and income before income taxes was $1,312 million, compared to net revenues of $1,365 million and income before income taxes of $909 million in the prior-year quarter. Adjusted net revenues were $1,610 million and adjusted income before income taxes was $1,267 million, compared to adjusted net revenues of $1,327 million and adjusted income before income taxes of $871 million in the prior-year quarter.
Current wording
For the current quarter, our net revenues were $1,669 million and income before income taxes was $1,288 million, compared to net revenues of $1,427 million and income before income taxes of $1,055 million in the prior-year quarter. Adjusted net revenues were $1,680 million and adjusted income before income taxes was $1,299 million, compared to adjusted net revenues of $1,396 million and adjusted income before income taxes of $1,024 million in the prior-year quarter.
Previous wording
Commission revenue increased 23% to $537 million on higher customer trading volumes. Customer trading volume in stocks and options increased 67% and 27%, respectively, while futures decreased 7%.
Current wording
Commission revenue increased 19% to $613 million on higher customer trading volumes. Customer trading volume in stocks, futures and options increased 25%, 20% and 16%, respectively.
Previous wording
Other fees and services decreased 8% to $66 million, led by a decrease of $12 million in risk exposure fees, which was partially offset by a $3 million increase in FDIC sweep fees.
Current wording
Other fees and services increased 10% to $86 million, led by increases of $2 million in payments for order flow from exchange-mandated programs, $2 million in FDIC sweep fees and $2 million in market data fees, partially offset by a decrease of $3 million in risk exposure fees.
Previous wording
Execution, clearing and distribution fees expenses decreased 21% to $92 million, driven by lower regulatory fees, as the SEC Section 31 transaction fee rate was reduced to zero on May 14, 2025, and greater capture of liquidity rebates from certain exchanges due to higher trading volumes in stocks and options.
Current wording
Execution, clearing and distribution fees decreased 12% to $106 million, driven by lower regulatory fees, as the SEC Section 31 transaction fee rate was reduced to zero on May 14, 2025, and greater capture of liquidity rebates from certain exchanges due to higher trading volumes in stocks and options.
Previous wording
Pretax profit margin was 79% for the current quarter compared to 67% in the prior-year quarter. Adjusted pretax profit margin for the current quarter was 79% compared to 66% in the prior-year quarter.
Current wording
Pretax profit margin was 77% for the current quarter compared to 74% in the prior-year quarter. Adjusted pretax profit margin for the current quarter was 77% compared to 73% in the prior-year quarter.
Previous wording
Total equity as of September 30, 2025, was $19.5 billion.
Current wording
Total equity as of March 31, 2026, was $21.3 billion.
Previous wording
In connection with our currency diversification strategy, as of September 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 decreased our comprehensive earnings by $33 million (compared to an increase of $178 million in the prior-year quarter), as the U.S. dollar value of the GLOBAL decreased by approximately 0.25% compared to its value as of June 30, 2025. The effects of our currency diversification strategy are reported as (1) a component of “Other income” (gain of $4 million) in the condensed consolidated statements of comprehensive income and (2)other comprehensive income (“OCI”) (loss of $37 million) in the condensed consolidated statements of financial condition and the condensed 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 March 31, 2026, approximately 25% of our equity was denominated in currencies other than the U.S. dollar. In the current quarter, our currency diversification strategy decreased our comprehensive earnings by $53 million (compared to an increase of $127 million in the prior-year quarter), as the U.S. dollar value of the GLOBAL decreased by approximately 0.30% compared to its value as of December 31, 2025. The effects of our currency diversification strategy are reported as (1) a component of “Other income” (gain of $26 million) in the condensed consolidated statements of comprehensive income and (2) other comprehensive income (“OCI”) (loss of $79 million) in the condensed consolidated statements of financial condition and the condensed consolidated statements of comprehensive income. The full effect of the GLOBAL is captured in comprehensive income.
Previous wording
The impact of another pandemic or a public health emergency will depend on numerous evolving factors that cannot be accurately predicted, including the duration and spread of the pandemic, governmental regulations in response to the pandemic, and the effectiveness of vaccinations and other medical advancements.
Current wording
The impact of a pandemic or other public health emergency will depend on numerous evolving factors that cannot be accurately predicted, including the duration and spread of the pandemic, governmental regulations in response to the pandemic, and the effectiveness of vaccinations and other medical advancements.
Previous wording
We continue to be exposed to the risks and uncertainties of doing business in international markets, particularly in the heavily regulated brokerage industry. Such risks and uncertainties include political, economic and financial instability, and foreign policy changes. For example, tensions between the U.S. and China have escalated in recent years, and changes in Chinese governmental oversight of the Chinese and Hong Kong capital markets could result in adverse effects on our business and loss of assets we hold in the region. Additionally, although our direct and indirect exposures to Russia and Ukraine are not material, the war in Ukraine and related sanctions have created substantial uncertainty in the global economy and financial markets.
Current wording
We continue to be exposed to the risks and uncertainties of doing business in international markets, particularly in the heavily regulated brokerage industry. Such risks and uncertainties include political, economic and financial instability, and foreign policy changes. For example, tensions between the U.S. and China have escalated in recent years, and changes in Chinese governmental oversight of the Chinese and Hong Kong capital markets could result in adverse effects on our business and loss of assets we hold in the region. Additionally, although our direct and indirect exposures to Russia, Ukraine and the Middle East are not material, the war in Ukraine and the conflict in the Middle East and related sanctions have created substantial uncertainty in the global economy and financial markets. Finally, government actions such as tariff policy changes may create uncertainty that affects volumes and volatility in the financial markets.
Previous wording
Total net revenues, for the current quarter, increased $290 million, or 21%, compared to the prior-year quarter, to $1,655 million. The increase in net revenues was due to higher net interest income, commissions and other income; partially offset by lower other fees and services.
Current wording
Total net revenues, for the current quarter, increased $242 million, or 17%, compared to the prior-year quarter, to $1,669 million. The increase in net revenues was due to higher net interest income, commissions, other fees and services, and other income.
Previous wording
We earn commissions from our cleared customers for whom we act as an executing and clearing broker and from our non-cleared customers for whom we act as an execution-only broker. Our commission structure allows customers to choose between (1) an all-inclusive fixed, or “bundled”, rate; (2) a tiered, or “unbundled”, rate that offers lower commissions for high volume customers where we pass through regulatory and exchange fees; and (3) our IBKR Lite SM offering, which provides commission-free trades on U.S. exchange-listed stocks and ETFs. IBKR Lite SM trades generate payments from market makers and others to whom we route these orders, which are reported in commissions. Our commissions are geographically diversified.
Current wording
We earn commissions from our cleared customers for whom we act as an executing and clearing broker and from our non‑cleared customers for whom we act as an execution‑only broker. Our commission structure allows customers to choose between (1) an all‑inclusive fixed, or “bundled”, rate; (2) a tiered, or “unbundled”, rate that offers lower commissions for high volume customers where we pass through regulatory and exchange fees; and (3) our IBKR Lite SM offering, which provides commission-free trades on U.S. exchange-listed stocks and ETFs. IBKR Lite SM trades generate payments from market makers and others to whom we route these orders, which are reported in commissions. Our commissions are geographically diversified around the world, though a substantial majority are generated on products traded in the U.S.
Previous wording
Commissions, for the current quarter, increased $102 million, or 23%, compared to the prior-year quarter, to $537 million, driven by higher customer volume in stocks and options; partially offset by lower customer trading volumes in futures. Total customer stock share and options contract volumes increased 67% and 27%, respectively, while futures contract volume decreased 7%. Total DARTs for the current quarter increased 34% to 3.6 million, compared to 2.7 million for the prior-year quarter. Average commission per commissionable order for cleared customers decreased 5% to $2.70 for the current quarter compared to $2.83 for the prior-year quarter, due to lower average commissions per contract in stocks and options, primarily due to the SEC Section 31 transaction fee rate which was reduced to zero on May 14, 2025, and to greater capture of liquidity rebates, which, as pass-throughs, serve to lower both our commission revenues and our execution costs.
Current wording
Commissions, for the current quarter, increased $99 million, or 19%, compared to the prior-year quarter, to $613 million, driven by higher customer trading volumes in stocks, futures and options. Total customer stock share and futures and options contract volumes increased 25%, 20% and 16%, respectively. Total DARTs for the current quarter increased 24% to 4.4 million, compared to 3.5 million for the prior-year quarter. Average commission per commissionable order for cleared customers decreased 3% to $2.69 for the current quarter compared to $2.76 for the prior-year quarter, primarily due to smaller order sizes in stocks; greater capture of liquidity rebates; and a reduction in the SEC transaction fee rate to zero in the second quarter of 2025. As pass-throughs, the liquidity rebates and SEC fees affect both our commission revenues and our execution costs.
Previous wording
Other fees and services, for the current nine-month period, increased $7 million, or 4%, compared to the prior-year nine-month period, to $206 million, driven by a $7 million increase in FDIC sweep fees due to higher customer balances, a $6 million increase in market data fees due to higher number of customers, and a $2 million increase in payments for order flow from exchange-mandated programs driven by higher customer trading volumes; partially offset by a $10 million decrease in risk exposure fees as customers exhibited more cautious risk-taking behavior.
Current wording
Other fees and services, for the current quarter, increased $8 million, or 10%, compared to the prior-year quarter, to $86 million, driven by a $2 million increase in FDIC sweep fees on higher customer balances, a $2 million increase in market data fees due to our growing customer base, and a $2 million increase in payments for order flow from exchange-mandated programs driven by higher customer trading volume; partially offset by a $3 million decrease in risk exposure fees as customers exhibited more cautious risk-taking behavior.
Previous wording
Other income, for the current quarter, increased $29 million, or 52% compared to the prior-year quarter, to $85 million. This increase was mainly due to $42 million related to our investing activities, partially offset by a $21 million lower gain related to our currency diversification strategy, which gained $4 million in the current quarter compared to a gain of $25 million in the prior-year quarter.
Current wording
Other income, for the current quarter, increased $1 million, or 2% compared to the prior-year quarter, to $66 million. This increase was mainly due to $23 million related to our investing and trading activities and $6 million related to our currency diversification strategy, partially offset by $27 million related to our strategic investment in Up Fintech Holding Limited (“Tiger Brokers”), which lost $16 million in the current quarter compared to a gain of $11 million in the prior-year quarter.
Previous wording
Net interest income (interest income less interest expense), for the current quarter, increased $165 million, or 21%, compared to the prior-year quarter, to $967 million. The increase in net interest income was driven by stronger securities lending activity and higher average 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 $134 million, or 17%, compared to the prior-year quarter, to $904 million. The increase in net interest income was driven by higher average customer margin loans and customer credit balances, partially offset by lower benchmark interest rates.
Previous wording
Net interest income on customer balances, for the current quarter, increased $48 million compared to the prior-year quarter, driven by increases of $34.9 billion, $20.1 billion and $16.2 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.
Current wording
Net interest income on customer balances, for the current quarter, increased $103 million compared to the prior-year quarter, driven by increases of $39.3 billion, $24.8 billion and $17.0 billion in average customer credit balances, margin loans, and segregated cash and securities, 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
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 wording
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 and securities 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.
Previous wording
In the current quarter, average securities borrowed balances increased 45%, to $9.0 billion, and average securities loaned balances increased 45%, to $20.7 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 $117 million, or 731%, compared to the prior-year quarter, driven by a higher level of short sale activity and a significant rise in the notional value of the securities we lent. 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 84%, to $8.9 billion, and average securities loaned balances increased 58%, to $25.6 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 $23 million, or 230%, compared to the prior-year quarter, driven by (1) our growing account base, which increases our inventory of attractive stocks to lend, including international securities; (2) the interest we pay on short cash balances, which makes us attractive to investors who utilize short selling; (3) our fully-paid lending program shares proceeds with clients generally on a 50/50 basis, which appeals to investors looking to maximize the return on their portfolios; and (4) more activity in some of the typical drivers of securities lending, including IPOs and merger & acquisition activity. 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 $314 million in the current quarter, compared to $156 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 $269 million in the current quarter, compared to $186 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
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 condensed consolidated statements of financial condition. Income derived from program deposits is reported in other net interest income in the table above.
Previous 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 September 30, 2025 and 2024, $10 million and $7 million were reported in other fees and services, respectively; and $22 million and $17 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 condensed consolidated statements of comprehensive income. For the three months ended March 31, 2026 and 2025, $11 million and $8 million were reported in other fees and services, respectively; and $38 million and $16 million were reported in other income, respectively.
Previous wording
Non-interest expenses, for the current quarter, decreased $113 million, or 25%, compared to the prior-year quarter, to $343 million, mainly due to a $91 million decrease in general and administrative expenses, a $24 million decrease in execution, clearing and distribution fees, and a $9 million decrease in customer bad debt expense; partially offset by an $11 million increase in employee compensation and benefits. As a percentage of total net revenues, non-interest expenses were 21% for the current quarter and 33% for the prior-year quarter.
Current wording
Non-interest expenses, for the current quarter, increased $9 million, or 2%, compared to the prior-year quarter, to $381 million, mainly due to a $13 million increase in employee compensation and benefits, a $6 million increase in general and administrative expenses, and a $3 million increase in occupancy, depreciation and amortization expenses; partially offset by a $15 million decrease in execution, clearing and distribution fees. As a percentage of total net revenues, non-interest expenses were 23% for the current quarter and 26% for the prior-year quarter.
Previous wording
Execution, clearing and distribution fees, for the current quarter, decreased $24 million, or 21%, compared to the prior-year quarter, to $92 million, mainly driven by a $17 million decrease in regulatory fees as the SEC Section 31 transaction fee rate was reduced to zero on May 14, 2025, and by greater capture of liquidity rebates from certain exchanges on higher customer trading volumes in stocks and options; partially offset by a new FINRA Consolidated Audit Trail (“CAT”) fee, which was initiated in the fourth quarter of 2024. 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 6% for the current quarter and 8% for the prior-year quarter.
Current wording
Execution, clearing and distribution fees, for the current quarter, decreased $15 million, or 12%, compared to the prior-year quarter, to $106 million, mainly driven by a $24 million decrease in regulatory fees as the SEC Section 31 transaction fee rate was reduced to zero on May 14, 2025, and by greater capture of liquidity rebates from certain exchanges on higher customer trading volumes in stocks and options. SEC fees, as with other regulatory fees, are passed through to customers. As a percentage of total net revenues, execution, clearing and distribution fees were 6% for the current quarter and 8% for the prior-year quarter.
Previous wording
Employee compensation and benefits expenses, for the current quarter, increased $11 million, or 8%, compared to the prior-year quarter, to $156 million, associated with a combination of staffing increases and inflation. The average number of employees increased 5% to 3,109 for the current quarter, compared to 2,960 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 9%for the current quarter and 11% for the prior-year quarter.
Current wording
Employee compensation and benefits expenses, for the current quarter, increased $13 million, or 8%, compared to the prior-year quarter, to $167 million, associated with a combination of staffing increases and inflation. The average number of employees increased 6% to 3,207 for the current quarter, compared to 3,013 for the prior-year quarter. As we continue to grow, our focus on automation has allowed us to increase our staff at a relatively modest pace. As a percentage of total net revenues, employee compensation and benefits expenses were 10% for the current quarter and 11% 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 1% for the current quarter and 2% for the prior-year quarter.
Current wording
Occupancy, depreciation and amortization expenses, for the current quarter, increased $3 million, or 13%, compared to the prior-year quarter, to $27 million, mainly due to higher rent expense for new offices. 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, increased $2 million, or 22%, 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.
Current wording
Communications expenses, for the current quarter, increased $2 million, or 20%, compared to the prior-year quarter, to $12 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, decreased $91 million, or 59%, compared to the prior-year quarter, to $62 million, driven primarily by the non-recurrencesof $88 million related to a legal settlement and of $12 million related to the consolidation of our European subsidiaries; partially offset by a $10 million increase in advertising expenses. As a percentage of total net revenues, general and administrative expenses were 4% for the current quarter and 11% for the prior-year quarter.
Current wording
General and administrative expenses, for the current quarter, increased $6 million, or 10%, compared to the prior-year quarter, to $68 million, driven primarily by a $7 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.
Previous wording
Income tax expense, for the current quarter, increased $51 million, or 68%, compared to the prior-year quarter, to $126 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 25.7% in the prior-year quarter to 26.2% in the current quarter.
Current wording
Income tax expense, for the current quarter, increased $26 million, or 29%, compared to the prior-year quarter, to $117 million, primarily due to (1) higher income before taxes at our operating subsidiaries outside the U.S.; (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 25.8% in the prior-year quarter to 26.3% in the current quarter.
Previous wording
Income before income taxes, for the current quarter, increased $403 million, or 44%, compared to the prior-year quarter, to $1,312 million. Pretax profit margin was 79% for the current quarter and 67% for the prior-year quarter.
Current wording
Income before income taxes, for the current quarter, increased $233 million, or 22%, compared to the prior-year quarter, to $1,288 million. Pretax profit margin was 77% for the current quarter and 74% for the prior-year quarter.
Previous wording
Comparing our operating results for the current quarter to the prior-year quarter using non-GAAP financial measures, adjusted net revenues were $1,610 million, up 21%; adjusted income before income taxes was $1,267 million, up 45%; and adjusted pre-tax profit margin was 79% for the current quarter compared to 66% for the prior-year quarter. See the “Non-GAAP Financial Measures” section below in this Item 2 for additional details.
Current wording
Comparing our operating results for the current quarter to the prior-year quarter using non-GAAP financial measures, adjusted net revenues were $1,680 million, up 20%; adjusted income before income taxes was $1,299 million, up 27%; and adjusted pre-tax profit margin was 77% for the current quarter compared to 73% for the prior-year quarter. See the “Non-GAAP Financial Measures” section below in this Item 2 for additional details.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Deferred income tax assets and liabilities arise from temporary differences between the tax and financial statement recognition of the underlying assets and liabilities. In evaluating our ability to recover our deferred tax assets within the jurisdictions from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations.
Rearranged previous paragraphs (18)
Previous report — wording carried elsewhere
In general, higher volatility typically enhances our performance because it often correlates positively with customer trading activity across product types.
Previous report — wording carried elsewhere
Other fees and services, for the current quarter, decreased $6 million, or 8%, compared to the prior-year quarter, to $66 million, driven by a $12 million decrease in risk exposure fees as customers exhibited more cautious risk-taking behavior, partially offset by a $3 million increase in FDIC sweep fees and a $2 million increase in market data fees.
Previous report — wording carried elsewhere
Net interest income on customer balances, for the current nine-month period, increased $115 million compared to the prior-year nine-month period, driven by increases of $27.2 billion, $14.9 billion and $14.1 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 nine-month period.
Previous report — wording carried 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.
Previous report — wording carried 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.
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
We earn income on securities loaned and borrowed to support customer long and short stock holdings in margin accounts.
Previous report — wording carried 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.
Previous report — wording carried 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.
Previous report — wording carried elsewhere
In the current nine-month period, average securities borrowed balances increased 20%, to $7.0 billion, and average securities loaned balances increased 36%, to $18.0 billion, compared to the prior-year nine-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 nine-month period, net interest earned from securities lending transactions increased $137 million, or 204%, compared to the prior-year nine-month period, driven by a higher level of short sale activity and a significant rise in the notional value of the securities we lent. 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 report — wording carried 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 $751 million in the current nine-month period, compared to $517 million in the prior-year nine-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.
Previous report — wording carried elsewhere
The table below presents net interest income information corresponding to interest-earning assets and interest-bearing liabilities for the periods indicated.
Previous report — wording carried 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.
Previous report — wording carried 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).
Previous report — wording carried 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 nine months ended September 30, 2025 and 2024, $27 million and $20 million were reported in other fees and services, respectively; and $56 million and $32 million were reported in other income, respectively.
Previous report — wording carried 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.
Previous report — wording carried elsewhere
The table below presents information about our income tax expense for the periods indicated.
Previous report — wording carried elsewhere
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.