Executive Summary

Q2 2025 delivered record net revenues of $1.48B and diluted EPS of $0.51, with pretax margin at 75% as reported and adjusted . Commission revenue rose 27% to $516M on higher trading volumes; net interest income increased 9% to $860M, including a one-time $26M tax credit recovery .
Results were above Wall Street consensus: EPS $0.51 vs $0.469*, and net revenues $1.48B vs $1.395B*, driven by strong DARTs, securities lending, and higher segregated cash balances. Net interest benefited from lower interest expense on customer cash as global rates declined .
Business KPIs were strong: customer accounts +32% YoY to ~3.87M, equity +34% to $664.6B, DARTs +49% to 3.55M, credit balances +34% to $143.7B, margin loans +18% to $65.1B .
Board declared a quarterly dividend of $0.08 per share (post-split), payable Sept 12, consistent with the split-adjusted increase announced last quarter ($0.32 pre-split) . Management emphasized scalability, overnight trading growth, and product innovation (Investment Themes; Forecast Contracts expansion) as ongoing catalysts .

Note: Values marked with * are retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

Record financials: “We again produced record net revenues and pretax income… net interest income also reached a quarterly record of $860 million” .
Trading and client metrics: Options/futures set quarterly volume records; DARTs reached ~3.6M (+49% YoY). “Our client trading volumes expanding for stocks, options and futures… commission revenue increased by 27%” .
Platform scalability and AI: “We enhanced our ATS… handle large spikes in volume by up to 20 times… judicious inclusion of artificial intelligence is the heart of what we do” .

What Went Wrong

Other fees and services fell 9% YoY to $62M due to lower risk exposure fees, partly offset by FDIC sweep fees .
SEC fee mid-quarter reduction to zero mechanically lowered commission per order and execution costs, creating headline compression in transaction metrics; however, profitability unaffected as the fee is a pass-through .
Crypto market share remains below management’s expectations despite lower pricing; IBKR plans asset transfer support and staking to improve competitiveness .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Net Revenues ($USD Billions)	$1.387	$1.427	$1.480
Diluted EPS ($USD, split-adjusted)	$1.99 (pre-split reported)	$0.47*	$0.51
Pretax Profit Margin (%)	75%	74%	75%
Commission Revenue ($USD Millions)	$477	$514	$516
Net Interest Income ($USD Millions)	$807	$770	$860
Other Fees & Services ($USD Millions)	$81	$78	$62
Other Income (Loss) ($USD Millions)	$22	$65	$42

Actual vs Estimates (Q2 2025)	Consensus	Actual
Primary EPS Consensus Mean	$0.469*	$0.51
Revenue Consensus Mean	$1.395B*	$1.480B
Primary EPS - # of Estimates	8*	—
Revenue - # of Estimates	4*	—

Values marked with * are retrieved from S&P Global.

Segment/revenue composition (reported):

Non-interest income: Commissions $516M; Other fees/services $62M; Other income $42M .
Net interest income: $860M .

KPIs

KPI	Q2 2024	Q1 2025	Q2 2025
Total Accounts (000s)	2,924	3,616	3,866
Customer Equity ($USD Billions)	$497.2	$573.5	$664.6
Total Customer DARTs (000s)	2,386	3,519	3,552
Customer Credits ($USD Billions)	$107.1? (not disclosed in Q2’24 PR, use YoY %) →	$125.2	$143.7
Customer Margin Loans ($USD Billions)	$55.2? (use YoY %) →	$63.7	$65.1
Commission per Cleared Order ($USD)	$3.01	$2.76	$2.65

Note: Q2 2024 credit/margin balances referenced via YoY changes in release; Q2 2025 absolute values provided.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Dividend per Share	Q3 2025 (pay date 9/12/2025)	$0.32 pre-split (raised in Q1)	$0.08 post-split	Maintained (split-adjusted)
Effective Tax Rate (Public Co.)	Q2 2025	—	18.1% (within usual range)	Informational
Formal Revenue/Margin/OpEx Guidance	—	Not provided	Not provided	—

IBKR does not provide formal forward financial guidance; management continues to disclose rate sensitivity and strategic priorities .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024)	Previous Mentions (Q1 2025)	Current Period (Q2 2025)	Trend
AI/Technology & Scalability	Focus on automation; strong DARTs and platform robustness	Continued automation; record trading volumes	ATS scaled to 20x spikes; thousands of releases; AI inclusion highlighted	Accelerating
Overnight Trading Growth	—	—	Overnight volumes +170% YoY; thousands of US stocks/ETFs offered overnight	Expanding
Macro/Rate Environment	NIM stable; higher margin loans; rising rates supported NII	NII up 3%; rate declines in some currencies	NII record; benefit from lower expense on customer cash; central banks cut/held	Mixed (rate cuts headwind; balances offset)
Securities Lending	Uptick vs prior year; some hard-to-borrow names	Robust activity	Hard-to-borrows uptick; estimated securities lending net rev +29% YoY if cash collateral included	Improving
Crypto Strategy	—	Added more cryptocurrencies; low-cost offering but share lagged	Asset transfers, staking planned; Europe geographic expansion; Zero Hash investment	Building
Introducing Brokers Pipeline	—	Strong pipeline; onboarding	More integrations QoQ; firms re-engaging due to superior offering/cost	Strengthening
Regulatory/Market Structure	CAT fee introduced Q4’24 impacting costs	CAT continues; SEC fee rate high	SEC fee cut to zero mid-quarter; pass-through; no profitability impact	Neutral

Management Commentary

“We enhanced our ATS… handle large spikes in volume by up to 20 times on high volume days, ensuring we're better equipped for market surges and capable of delivering top tier execution” .
“Quarterly commissions, net interest, total net revenue and pretax income were all records… pretax profit margin was an industry leading 75%” .
“Net interest income… reached a record $860 million… recognized a one-time credit of $26 million related to recovery of taxes withheld at source” .
“Overnight US stock offering is important because we have significant clientele in Europe and Asia… satisfying the appetite of overseas clients” .
“My disappointment in terms of how much market share we are getting in the crypto space remains… supporting asset transfers should open the doors” .

Q&A Highlights

Account growth trajectory: Chairman highlighted preference to “overdeliver,” implying conservative public projections; growth remained robust at +32% YoY and strong net new adds (~250k in Q2) .
Crypto roadmap: IBKR investing via Zero Hash, enabling stablecoin funding, crypto asset transfers, and staking; expansion focused on Europe .
Tokenized equities vs IBKR offering: Management criticized tokenized stocks (derivatives/OTC, fees, liquidity dislocations) vs IBKR’s real-share 24x5 access via ATS/Blue Ocean .
Securities lending drivers: Uptick in hard-to-borrow names; IPO/M&A activity modest but improving; potential for continued tailwind if corporate activity increases .
Rate sensitivity: A 25bp Fed cut estimated to reduce annual NII by ~$73M; 1% cut across benchmarks ~-$335M, partially offset by balance growth .

Estimates Context

Q2 2025 vs consensus: EPS $0.51 vs $0.469* (beat); Net revenues $1.480B vs $1.395B* (beat).
EPS estimates count: 8*; revenue estimates count: 4*. FY 2025 EPS consensus $2.116*; FY 2026 EPS $2.336*; revenue FY 2025 $6.086B*, FY 2026 $6.546B*.
Implications: Stronger DARTs, securities lending, and higher segregated balances may lead to upward revisions to revenue/NII trajectories; note that lower global benchmark rates present a headwind to NII, partially offset by growth in balances and lending .