Interactive Brokers Group, Inc.
For the period ended Jun 30, 2026. Filed Aug 6, 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.
Jun 30, 2026 · Filed Aug 6, 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 2026-03-31; filed 2026-05-07.
0001381197-26-000093
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001381197-26-000147
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 179 previous paragraphs and 223 current paragraphs.
122 unchanged; 52 reworded; 34 added; 5 removed; 0 previous and 15 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 (34)
Current report
U.S. equity market performance diverged as investor sentiment rotated away somewhat from large-capitalization technology stocks and towards the semiconductor sector. Sustained interest in technology and AI-related companies contributed to a recovery in the initial public offering (“IPO”) market, highlighted by the landmark debut of SpaceX, which raised over $86 billion in proceeds to become the largest-ever IPO.
Current report
Net interest income on "Segregated cash and securities, net" for the three months ended June 30, 2025, excludes approximately $26 million of interest income, recorded in the consolidated statements of comprehensive income, related to taxes withheld at source in prior periods which was determined to be fully refundable.
Current report
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 above, the total net interest income related to our securities lending activities would have been $343 million for the three months ended June 30, 2026, compared to $251 million for the three months ended June 30, 2025. 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 above, so it would have no effect on our overall net interest income or net interest margin.
Current report
Customer bad debt expense, for the current quarter, increased $9 million compared to the prior-year quarter, to $10 million, mainly due to customer losses related to a corporate action during the current quarter.
Current report
Income before income taxes, for the current quarter, increased $352 million, or 32%, compared to the prior-year quarter, to $1.46 billion. Pretax profit margin was 77% for the current quarter and 75% for the prior-year quarter.
Current report
six months ended June 30, 2026 (“current six-month period”) compared to the six months ended June 30, 2025 (“prior-year six-month period”)
Current report
Net Revenues
Current report
Total net revenues, for the current six-month period, increased $658 million, or 23%, compared to the prior-year six-month period, to $3.57 billion. The increase in net revenues was due to higher net interest income, commissions, other income, and other fees and services.
Current report
Commissions, for the current six-month period, increased $256 million, or 25%, compared to the prior-year six-month period, to $1.29 billion, driven by higher customer trading volumes in stocks, options and futures. Total customer stock share and options and futures contract volumes increased 19%, 16% and 11%, respectively. Total DARTs for the current six-month period increased 27% to 3.9 million, compared to 3.1 million for the prior-year six-month period. Average commission per commissionable order for cleared customers, for the current six-month period, decreased 2% to $2.66, compared to $2.71 for the prior-year six-month period, mainly due to greater capture of liquidity rebates passed through to customers.
Current report
Other fees and services, for the current six-month period, increased $33 million, or 24%, compared to the prior-year six-month period, to $173 million, mainly driven by a $11 million increase in payments for order flow from exchange-mandated programs driven by higher customer trading volumes, a $6 million increase in risk exposure fees, a $5 million increase in market data fees due to our growing customer base, and a $3 million increase in FDIC sweep fees on higher customer balances.
Current report
Other Income
Current report
Other income, for the current six-month period, increased $38 million, or 36%, compared to the prior-year six-month period, to $145 million. This increase was mainly due to $32 million related to our currency diversification strategy and $7 million related to our investing activities.
Current report
Interest Income and Interest Expense
Current report
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 $612 million in the current six-month period, compared to $437 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
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 were determined to be fully refundable.
Current report
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 above, the total net interest income related to our securities lending activities would have been $612 million for the six months ended June 30, 2026, compared to $437 million for the six months ended June 30, 2025. 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 above, so it would have no effect on our overall net interest income or net interest margin.
Current report
Non‑Interest Expenses
Current report
Non-interest expenses, for the current six-month period, increased $73 million, or 10%, compared to the prior-year six-month period, to $821 million, mainly due to a $32 million increase in employee compensation and benefits, a $13 million increase in general and administrative expenses, an $11 million increase in execution, clearing and distribution fees, a $9 million increase in customer bad debt expense, and a $6 million increase in occupancy, depreciation and amortization expense. As a percentage of total net revenues, non-interest expenses were 23% for the current six-month period and 26% for the prior-year six-month period.
Current report
Execution, Clearing and Distribution Fees
Current report
Execution, clearing and distribution fees, for the current six-month period, increased $11 million, or 5%, compared to the prior-year six-month period, to $248 million, mainly driven by (1) a $17 million increase in clearing and brokerage fees due to higher customer trading volumes and (2) a $8 million increase in market data fees; partially offset by (3) a $11 million decrease in exchange fees due to greater capture of liquidity rebates on higher customer trading volumes in stocks and options, and (4) a $6 million decrease in regulatory fees, as the SEC Section 31 transaction fee rate was lower during most of the current six-month period. As a percentage of total net revenues, execution, clearing and distribution fees were 7% for the current six-month period and 8% for the prior-year six-month period.
Current report
Employee Compensation and Benefits
Current report
Employee compensation and benefits expenses, for the current six-month period, increased $32 million, or 10%, compared to the prior-year six-month period, to $349 million associated with a combination of staffing increases, inflation, and a $6 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 6% to 3,226 for the current six-month period, compared to 3,037 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 10% for the current six-month period and 11% 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, increased $6 million, or 13%, compared to the prior-year six-month period, to $54 million, mainly due to higher rent expense for new offices and depreciation of computer equipment, as we continue to expand our data centers globally. 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 $2 million, or 10%, compared to the prior-year six-month period, to $23 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 $13 million, or 11%, compared to the prior-year six-month period, to $136 million, led by an $8 million increase in advertising expense. 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, increased $9 million compared to the prior-year six-month period, to $11 million, mainly due to customer losses related to a corporate action during the current six-month period.
Current report
Income Tax Expense
Current report
Income tax expense, for the current six-month period, increased $46 million, or 24%, compared to the prior-year six-month period, to $235 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 25.9% in the prior-year six-month period to 26.3% in the current six-month period; partially offset by (4) higher tax deductions driven by the annual vesting of the Company’s Stock Incentive Plan restricted stock units at a higher stock price than in the prior-year six-month period.
Current report
Operating Results
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 $3.56 billion, up 24%; adjusted income before income taxes was $2.74 billion, up 29%; and adjusted pre-tax profit margin was 77% for the current six-month period compared to 74% for the prior-year six-month period. See the “Non-GAAP Financial Measures” section below in this Item 2 for additional details.
Removed paragraphs (5)
Previous 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.
Previous 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.
Previous report
Commissions
Previous report
Other Fees and Services
Previous report
Customer bad debt expense, for the current quarter, was unchanged from the prior-year quarter, at $1 million.
Reworded paragraphs (52)
Previous wording
Interactive Brokers Group, Inc. (the “Company” or “IBG, Inc.”) is a holding company whose primary asset is its ownership of approximately 26.3% of the membership interests of IBG LLC. The remaining approximately 73.7% 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, 2026.
Current wording
Interactive Brokers Group, Inc. (the “Company” or “IBG, Inc.”) is a holding company whose primary asset is its ownership of approximately 26.5% of the membership interests of IBG LLC. The remaining approximately 73.5% 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, 2026.
Previous 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.
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 territories 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, and on other platforms.
Previous wording
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 wording
During the quarter ended June 30, 2026 (“current quarter”), most global equity markets advanced, with several major indices reaching new all-time highs, supported by strong technology earnings and heightened investor interest in artificial intelligence (“AI”)-driven themes, despite persistent uncertainties related to ongoing geopolitical conflicts and inflationary pressures. In the Americas, U.S. equity markets rose, with the S&P 500© index increasing 14.9%, compared to the prior quarter, to a new high. Most European markets also rose, while the Asia-Pacific region saw gains in China, Australia, and Japan while Hong Kong fell.
Previous wording
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 wording
Inflationary pressures persisted throughout the quarter, contributing to continued uncertainty regarding monetary policy across several major economies. Most central banks opted to hold policy interest rates steady, adopting a cautious, wait-and-see approach, though rates were raised in several currencies. Ongoing geopolitical conflicts, higher energy prices, and trade policy uncertainty weighed on the likelihood of near-term rate cuts, and expectations for additional monetary easing diminished. Despite this ambiguous environment, retail investor participation remained elevated, with continued engagement in equity, futures and options markets.
Previous 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.
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 10% in listed cash equities and 27% in exchange-listed equity-based options, while futures were flat, compared to the prior-year quarter. Options trading volumes continue to benefit from the growing popularity of shorter-dated contracts. In futures markets, volumes decreased in interest rates, energy and foreign exchange products and increased in equity indices, metals and agriculture products as market participants sought to manage exposure to ongoing economic and geopolitical uncertainties.
Previous wording
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 wording
These market dynamics produced similar results across our major product types. Customer average daily trading volumes in equities, options, and futures increased by 14%, 17%, and 2%, respectively, compared to the prior-year quarter, though foreign exchange volumes decreased by 31% from an all-time high in the prior-year quarter, which was driven by uncertainty over tariff policies.
Previous 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.
Current wording
Volatility. U.S. market volatility, as measured by the average Chicago Board Options Exchange Volatility Index (‘‘VIX®’’), decreased by 22% from an average of 23.7 in the prior-year quarter to 18.3 in the current quarter. In general, higher volatility typically enhances our performance because it often correlates positively with customer trading activity across product types. However, the current quarter’s strong volumes, particularly in equities and options, indicate that volatility is only one of several factors influencing market participation.
Previous wording
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 wording
Interest Rates. The U.S. Federal Reserve has kept the benchmark federal funds rate unchanged during the first half of 2026, after cutting it three times in the second half of 2025 by a total of 75 basis points, maintaining a target range of 3.50% to 3.75%, the lowest level since late 2022. During the current quarter, the U.S. Treasury yield curve inversion from the short to medium-term flattened before exhibiting a more consistent upward profile toward longer-term rates. Outside the U.S., benchmark interest rate policies were mixed across countries and territories with developed financial markets, with rates remaining unchanged in the U.K., Canada and Hong Kong, and rising in Europe, Japan and Australia, where those central banks adjusted monetary policy in response to inflationary pressures.
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. 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.
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, substantially all of which contained maturities of less than three months as of June 30, 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
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 wording
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 3.63% in the current quarter from 4.33% in the prior-year quarter.
Previous wording
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 wording
Higher average balances contributed to a 23% rise in net interest income over the prior-year quarter. Net interest margin declined from 2.07% in the prior-year quarter to 1.93% in the current quarter primarily due to lower interest rates.
Previous 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.”
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 0.21% compared to its value at March 31, 2026, 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 $0.48 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.
Current wording
Diluted earnings per share were $0.69 for the current quarter, compared to diluted earnings per share of $0.51 for the prior-year quarter. Adjusted diluted earnings per share were $0.69 for the current quarter and $0.51 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 $1,669 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.
Current wording
For the current quarter, our net revenues were $1.90 billion and income before income taxes was $1.46 billion, compared to net revenues of $1.48 billion and income before income taxes of $1.10 billion in the prior-year quarter. Adjusted net revenues were $1.88 billion and adjusted income before income taxes was $1.44 billion, compared to adjusted net revenues of $1.48 billion and adjusted income before income taxes of $1.10 billion in the prior-year quarter.
Previous 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.
Current wording
Commission revenue increased 30% to $673 million on higher customer trading volumes. Customer trading volume in options, stocks and futures increased 17%, 14%, and 2%, respectively.
Previous wording
Net interest income increased 17% to $904 million on higher average customer margin loans and customer credit balances.
Current wording
Net interest income increased 23% to $1.06 billion on higher average customer margin loans and customer credit balances.
Previous 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.
Current wording
Other fees and services increased 40% to $87 million, led by increases of $9 million in payments for order flow from exchange-mandated programs, $8 million in risk exposure fees, and $3 million in market data fees.
Previous 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.
Current wording
Execution, clearing and distribution fees increased 22% to $142 million, driven by a $19 million increase in regulatory fees, as the SEC Section 31 transaction fee rate increased on April 4, 2026; partially offset by greater capture of liquidity rebates from certain exchanges due to higher trading volumes in stocks and options.
Previous 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.
Current wording
Pretax profit margin was 77% for the current quarter compared to 75% in the prior-year quarter. Adjusted pretax profit margin for the current quarter was 77% compared to 75% in the prior-year quarter.
Previous wording
Total equity as of March 31, 2026, was $21.3 billion.
Current wording
Total equity as of June 30, 2026, was $22.3 billion.
Previous 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.
Current wording
In connection with our currency diversification strategy, as of June 30, 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 $36 million (compared to an increase of $301 million in the prior-year quarter), as the U.S. dollar value of the GLOBAL decreased by approximately 0.21% compared to its value as of March 31, 2026. The effects of our currency diversification strategy are reported as (1) a component of “Other income” (gain of $21 million) in the condensed consolidated statements of comprehensive income and (2) other comprehensive income (“OCI”) (loss of $57 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
Retail participation in the equity markets has fluctuated in the past due to investor sentiment, market conditions and a variety of other factors. Retail transaction volumes may not be sustainable and are not predictable.
Current wording
Retail participation in the financial markets has fluctuated in the past due to investor sentiment, market conditions and a variety of other factors. Retail transaction volumes may not be sustainable and are not predictable.
Previous 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.
Current wording
Total net revenues, for the current quarter, increased $416 million, or 28%, compared to the prior-year quarter, to $1.90 billion. The increase in net revenues was due to higher net interest income, commissions, other income, and other fees and services.
Previous 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.
Current wording
Commissions, for the current quarter, increased $157 million, or 30%, compared to the prior-year quarter, to $673 million, driven by higher customer trading volumes in options, stocks and futures. Total customer options contract, stock share and futures contract volumes increased 17%, 14% and 2%, respectively. Total DARTs for the current quarter increased 36% to 4.8 million, compared to 3.6 million for the prior-year quarter. Average commission per commissionable order for cleared customers decreased slightly to $2.64 for the current quarter compared to $2.65 for the prior-year quarter, primarily due to smaller order sizes in foreign exchange and greater capture of liquidity rebates. As pass-throughs, the liquidity rebates affect both our commission revenues and our execution costs.
Previous 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.
Current wording
Other fees and services, for the current quarter, increased $25 million, or 40%, compared to the prior-year quarter, to $87 million, driven by a $9 million increase in payments for order flow from exchange-mandated programs driven by higher customer trading volume, an $8 million increase in risk exposure fees, a $3 million increase in market data fees due to our growing customer base, and a $1 million increase in FDIC sweep fees on higher customer balances.
Previous 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.
Current wording
Other income, for the current quarter, increased $37 million, or 88% compared to the prior-year quarter, to $79 million. This increase was mainly due to $26 million related to our currency diversification strategy and $11 million related to our investing activities.
Previous 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.
Current wording
Net interest income (interest income less interest expense), for the current quarter, increased $197 million, or 23%, compared to the prior-year quarter, to $1.06 billion. 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 $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.
Current wording
Net interest income on customer balances, for the current quarter, increased $233 million compared to the prior-year quarter, driven by increases of $41.7 billion, $35.7 billion and $19.0 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
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.
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 $343 million in the current quarter, compared to $251 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
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.
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 June 30, 2026 and 2025, $11 million and $9 million were reported in "Other fees and services", respectively; and $32 million and $18 million were reported in "Other income", respectively.
Previous 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.
Current wording
Non-interest expenses, for the current quarter, increased $64 million, or 17%, compared to the prior-year quarter, to $440 million, mainly due to a $26 million increase in execution, clearing and distribution fees, a $19 million increase in employee compensation and benefits, a $9 million increase in customer bad debt expense, a $7 million increase in general and administrative expenses, and a $3 million increase in occupancy, depreciation and amortization expenses. As a percentage of total net revenues, non-interest expenses were 23% for the current quarter and 25% for the prior-year quarter.
Previous 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.
Current wording
Execution, clearing and distribution fees, for the current quarter, increased $26 million, or 22%, compared to the prior-year quarter, to $142 million, mainly driven by a $19 million increase in regulatory fees, for a total of $34 million, from the re-initiation on April 4, 2026 of SEC Section 31 transaction fees, which had been set to zero since May 14, 2025; partially offset by greater capture of liquidity rebates due to 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 7% for the current quarter and 8% for the prior-year quarter.
Previous 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.
Current wording
Employee compensation and benefits expenses, for the current quarter, increased $19 million, or 12%, compared to the prior-year quarter, to $182 million, associated with a combination of staffing increases, inflation, and a $4 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 6% to 3,249 for the current quarter, compared to 3,059 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, 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.
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 and depreciation of computer equipment, as we continue to expand our data centers globally. 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.
Previous 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.
Current wording
Communications expenses, for the current quarter, were unchanged from the prior-year quarter, at $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 $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.
Current wording
General and administrative expenses, for the current quarter, increased $7 million, or 11%, compared to the prior-year quarter, to $68 million, driven primarily by a $2 million increase in legal reserves and a $1 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 $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.
Current wording
Income tax expense, for the current quarter, increased $20 million, or 20%, compared to the prior-year quarter, to $118 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 25.9% in the prior-year quarter to 26.4% in the current quarter; partially offset by (4) higher tax deductions driven by the annual vesting of the Company’s Stock Incentive Plan restricted stock units at a higher stock price than in the prior year.
Previous wording
Represents the net gains or losses from the Company’s common stock (IBKR shares) held in treasury for distribution to eligible customers participating in one or more promotions.
Current wording
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 the Company's Stock Incentive Plan restricted stock units and shares for distribution to eligible customers participating in one or more promotions.
Previous wording
Comparing our operating results for the current quarter to the prior-year quarter using non-GAAP financial measures, adjusted net revenues were $1,680 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.
Current wording
Comparing our operating results for the current quarter to the prior-year quarter using non-GAAP financial measures, adjusted net revenues were $1.88 billion, up 27%; adjusted income before income taxes was $1.44 billion, up 31%; and adjusted pre-tax profit margin was 77% for the current quarter compared to 75% for the prior-year quarter. See the “Non-GAAP Financial Measures” section below in this Item 2 for additional details.
Previous 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.
Current wording
In the current six-month period, average securities borrowed balances increased 50%, to $8.9 billion, and average securities loaned balances increased 77%, to $29.4 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 $7 million, or 10%, compared to the prior-year six-month period, 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 and 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.
Showing the first 40 of 52 pairs. Open the source sections for the rest.
Rearranged current paragraphs (15)
Current report — wording carried from elsewhere
In the current quarter, average securities borrowed balances increased 27%, to $8.9 billion, and average securities loaned balances increased 93%, to $33.2 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, as reported, decreased $16 million, or 27%, compared to the prior-year quarter. 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
Net interest income (interest income less interest expense), for the current six-month period, increased $331 million, or 20%, compared to the prior-year six-month period, to $1.96 billion. 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.
Current report — wording carried from elsewhere
Net interest income on customer balances, for the current six-month period, increased $336 million compared to the prior-year six-month period, driven by increases of $40.6 billion, $30.3 billion, and $18.1 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 six-month period.
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 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.
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
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's condensed 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, 2026 and 2025, $22 million and $17 million were reported in "Other fees and services", respectively; and $70 million and $34 million were reported in "Other income", respectively.
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
The table below presents information about our income tax expense for the periods indicated.
Current report — wording carried from 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 the Company's Stock Incentive Plan restricted stock units and shares held for distribution to eligible customers participating in one or more promotions.