6a5bfe5388d77c18459700f34e4550cc5dc4e465ac1059fef80997c38532dbe5

Adjustments for Non-Cash Items

Stock-Based Compensation (USD, millions)

Changes in Working Capital

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

ba1330147042b3dd49c811cd25e9ac786924ae19ce0cf2e108fd969729832cbc

United States Revenue

International Revenue

Total Net Revenues

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Commissions

Other Fees and Services

Other Income (Loss)

Total Non-Interest Income

Interest Income

Interest Expense

Total Net Interest Income

Market Data Fees

Risk Exposure Fees

Payments for Order Flow

FDIC Sweep Fees

Other

7fa01396860b1b5a1ed64a06a334285533de21900dad3eb951f3ed458056e0a1

Net cash provided by operating activities (USD, millions)

Net cash used in investing activities (USD, millions)

Net cash used in financing activities (USD, millions)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash (USD, millions)

Increase in cash, cash equivalents, and restricted cash (USD, millions)

Net increase in cash, cash equivalents and restricted cash (USD, millions)

Cash paid for interest (USD, millions)

Cash paid for taxes, net (USD, millions)

Cash paid for amounts included in lease liabilities (USD, millions)

Cash, cash equivalents and restricted cash at beginning of period (USD, millions)

Cash, cash equivalents and restricted cash at end of period (USD, millions)

d44f8fa38e7f1d2285bff5cbee0b59edb40204d55d4aed8bddf816481011feac

Cash and cash equivalents (USD, millions)

Cash - segregated for regulatory purposes (USD, millions)

Securities - segregated for regulatory purposes (USD, millions)

Securities borrowed (USD, millions)

Securities purchased under agreements to resell (USD, millions)

Total financial instruments owned, at fair value (USD, millions)

Customers receivables, less allowance for credit losses (USD, millions)

Brokers, dealers, and clearing organizations receivables (USD, millions)

Other assets (USD, millions)

Total assets (USD, millions)

Short-term borrowings (USD, millions)

Securities loaned (USD, millions)

Financial instruments sold, but not yet purchased, at fair value (USD, millions)

Customers payables (USD, millions)

Brokers, dealers, and clearing organizations payables (USD, millions)

Accounts payable, accrued expenses and other liabilities (USD, millions)

Total liabilities (USD, millions)

Total stockholders’ equity (USD, millions)

Noncontrolling interests (USD, millions)

Total equity (USD, millions)

Total liabilities and equity (USD, millions)

a9eac1fc3cabe4ab1e4b0cfa958fb897114b698bf42de989c4ae4b644eb97f8b

The sharp spike in operating cash flow in Q3 2024 was driven by several key changes in operating assets and liabilities. **Customer credit balances increased by $11.6 billion** and **securities loaned rose by $5.5 billion**, both significantly boosting cash inflows. Additionally, there was a **$4.3 billion decrease in investments held for regulatory purposes**, which further added to the operating cash flow. These positive impacts were partially offset by a **$11.5 billion increase in customer margin loans**, but the overall effect was a substantial rise in operating cash flow.  **[0001381197-24-000143_ibkr-20240930x10q.htm:69]** **[0001381197-24-000143_ibkr-20240930x10q.htm:4]** 

What drove the sharp spike in operating cash flow in Q3 2024?

The turnaround in operating cash flow for Q1 2024 was primarily driven by a **$6.1 billion decrease** in securities segregated for regulatory purposes and a **$2.9 billion increase** in securities loaned, both of which significantly improved cash inflows. These positive factors were partially offset by a **$6.9 billion increase** in customer margin loans and a **$1.2 billion increase** in securities purchased under agreements to resell, but the net effect was a substantial swing from negative operating cash flow in Q1 2023 to a positive **$1,683 million** in Q1 2024.  **[0001381197-24-000097_ibkr-20240331x10q.htm:60]** **[0001381197-24-000097_ibkr-20240331x10q.htm:3]** 

What factors contributed to the turnaround in operating cash flow in Q1 2024?

The noticeable decline in Q2 2024’s operating cash flow was mainly due to an offsetting factor—**a significant increase in customer margin loans**. Although certain changes in operating assets (for example, **a decrease of $7.1 billion in securities segregated for regulatory purposes** and **an increase of $4.3 billion in securities loaned**) helped improve cash flow, these gains were largely counterbalanced by the jump in customer margin loans, which rose by **$10.8 billion** in 2024 compared to **$3.2 billion** in 2023, thereby reducing the net cash provided from operations.  **[0001381197-24-000124_ibkr-20240630x10q.htm:68]** **[0001381197-24-000124_ibkr-20240630x10q.htm:3]** 

Why did operating cash flow decline noticeably in Q2 2024?

The documents do not provide any detailed information regarding a substantial increase in approximated free cash flow in Q3 2024. They only explain the drivers for the increased net cash used in investing activities for that period.  **[0001381197-23-000149_ibkr-20230930x10q.htm:3]** **[0001381197-24-000143_ibkr-20240930x10q.htm:69]** **[0001381197-24-000143_ibkr-20240930x10q.htm:4]** 

What drove the substantial increase in approximated free cash flow in Q3 2024?

cf5e4781c96388b271f9e1a69480323691ee8eca6749528757c9404dcf004594

The jump in **Q3 2024** was primarily driven by **strong account growth** and a **significant increase in margin borrowing**, which expanded the segregated cash portfolio for regulatory purposes. Additionally, increases in **customer credit balances**—rising by about **$11.6 billion** over the nine months—further contributed to this increase.  **[0001381197-24-000140_ibkr_8ka-20240930.htm:2]** **[0001381197-24-000135_ibkr-8k_20240930er.htm:3]** **[0001381197-24-000143_ibkr-20240930x10q.htm:2]** **[IBKR_3402841_2]** **[0001381197-24-000143_ibkr-20240930x10q.htm:69]** 

What drove the jump in Cash - segregated for regulatory purposes in Q3 2024?

In Q3 2024, **Interactive Brokers Group's** total assets increased significantly due to **growth in margin lending** (which drove up customer receivables), an **increase in cash segregated for regulatory purposes** (reflecting higher customer credit balances), higher activity in **securities borrowed and resale agreements**, and an increase in **financial instruments owned at fair value** (indicating more investments in marketable securities).  **[IBKR_3402841_3]** **[0001381197-24-000140_ibkr_8ka-20240930.htm:2]** **[0001381197-24-000135_ibkr-8k_20240930er.htm:3]** 

What contributed to the significant rise in Total assets in Q3 2024?

The documents do not provide a definitive explanation for the spike in **short-term borrowings** to **33 in Q3 2024**. While they note that the borrowings increased significantly—from **$17 million at year-end 2023** to **$33 million on September 30, 2024**—no specific reasons are provided. That said, potential explanations could include factors such as **operational needs, liquidity management, or funding requirements**.  **[0001381197-24-000140_ibkr_8ka-20240930.htm:2]** **[0001381197-24-000135_ibkr-8k_20240930er.htm:3]** **[0001381197-24-000143_ibkr-20240930x10q.htm:2]** 

Why did Short-term borrowings spike to 33 in Q3 2024?

The surge in Q3 2024 was primarily driven by a **significant increase in stocks**, which rose from **$1,023 million** to **$1,850 million**, and a notable increase in **U.S. and foreign government securities**, which grew from **$39 million** to **$948 million**. Although there was a decline in options from **$354 million** to **$119 million**, the larger gains in stocks and government securities more than offset this decrease, leading to the overall increase in total financial instruments owned.  **[0001381197-24-000143_ibkr-20240930x10q.htm:2]** **[0001381197-24-000143_ibkr-20240930x10q.htm:28]** 

What factors led to the surge in Total financial instruments owned in Q3 2024?

c96f652ccf2791a69cfb0c6b766535379f4977382666c5c8104546c2536fc210

Commissions (USD, millions)

Other fees and services (USD, millions)

Other income (loss) (USD, millions)

Total non-interest income (USD, millions)

Interest income (USD, millions)

Interest expense (USD, millions)

Total net interest income (USD, millions)

Total net revenues (USD, millions)

Execution, clearing and distribution fees (USD, millions)

Employee compensation and benefits (USD, millions)

Occupancy, depreciation and amortization (USD, millions)

Communications (USD, millions)

General and administrative (USD, millions)

Customer bad debt (USD, millions)

Total non-interest expenses (USD, millions)

Income before income taxes (USD, millions)

Income tax expense (USD, millions)

Net income (USD, millions)

Less net income attributable to noncontrolling interests (USD, millions)

Net income available for common stockholders (USD, millions)

6ae09931edbb626c76df73b37b4b6e96c36e30034caf3e1e53fe4a732566119e

c77ee9a2068a551928a61d771b9e4a9632edd172f1d95ee5e223326808c1c0a6

Interactive Brokers Group Inc (IBKR)

Financials