# Interactive Brokers Group, Inc. (IBKR)

Informational only - not investment advice.

CIK: 0001381197
SIC: 6211 Security Brokers, Dealers & Flotation Companies
SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Security And Commodity Brokers, Dealers, Exchanges, And Services](/major-group/62/) > [SIC 6211 Security Brokers, Dealers & Flotation Companies](/industry/6211/)
Latest 10-K filed: 2026-02-27
SEC page: https://www.sec.gov/edgar/browse/?CIK=1381197
Filing source: https://www.sec.gov/Archives/edgar/data/1381197/000138119726000062/ibkr-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-27 · accession 0001381197-26-000062 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001381197.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 6,205,000,000 USD | 2025 | verified |
| Net income | 4,357,000,000 USD | 2025 | verified |
| Assets | 203,240,000,000 USD | 2025 | verified |
| Net margin | 70.22% | 2025 | computed |
| Revenue YoY | +19.67% | 2025 | computed |
| ROE | 81.24% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | IBKR | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 70.2% | 14.8% | 100 | 19 |
| Revenue growth | 19.7% | 14.4% | 72 | 19 |
| ROE | 81.2% | 15.1% | 100 | 19 |
| ROA | 2.1% | 1.8% | 56 | 19 |
| Liabilities / equity | 34.08 | 6.06 | 100 | 19 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6211 Security Brokers, Dealers & Flotation Companies, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 6205000000 | USD | 2025 | 2026-02-27 |
| Net income | 4357000000 | USD | 2025 | 2026-02-27 |
| Assets | 203240000000 | USD | 2025 | 2026-02-27 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001381197.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 1,396,000,000 | 1,702,000,000 | 1,903,000,000 | 1,937,000,000 | 2,218,000,000 | 2,714,000,000 | 3,067,000,000 | 4,340,000,000 | 5,185,000,000 | 6,205,000,000 |
| Net income | 699,000,000 | 793,000,000 | 1,125,000,000 | 1,089,000,000 | 1,179,000,000 | 1,636,000,000 | 1,842,000,000 | 2,812,000,000 | 3,407,000,000 | 4,357,000,000 |
| Diluted EPS | 1.25 | 1.07 | 2.28 | 2.10 | 2.42 | 3.24 | 3.75 | 1.42 | 1.73 | 2.22 |
| Operating cash flow | 635,000,000 | 1,065,000,000 | 2,356,000,000 | 2,666,000,000 | 8,068,000,000 | 5,896,000,000 | 3,968,000,000 | 4,544,000,000 | 8,724,000,000 | 15,811,000,000 |
| Dividends paid |  | 28,000,000 | 29,000,000 | 31,000,000 | 32,000,000 | 38,000,000 | 40,000,000 | 42,000,000 | 92,000,000 | 134,000,000 |
| Assets | 54,673,000,000 | 61,162,000,000 | 60,547,000,000 | 71,676,000,000 | 95,679,000,000 | 109,113,000,000 | 115,143,000,000 | 128,251,000,000 | 150,142,000,000 | 203,240,000,000 |
| Liabilities | 48,853,000,000 | 54,729,000,000 | 53,391,000,000 | 63,736,000,000 | 86,676,000,000 | 98,891,000,000 | 103,528,000,000 | 114,184,000,000 | 133,545,000,000 | 182,768,000,000 |
| Stockholders' equity | 974,000,000 | 1,090,000,000 | 1,282,000,000 | 1,452,000,000 | 1,951,000,000 | 2,395,000,000 | 2,848,000,000 | 3,584,000,000 | 4,280,000,000 | 5,363,000,000 |
| Cash and cash equivalents | 1,925,000,000 | 1,732,000,000 | 2,597,000,000 | 2,882,000,000 | 4,292,000,000 | 2,395,000,000 | 3,436,000,000 | 3,753,000,000 | 3,633,000,000 | 4,963,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 50.07% | 46.59% | 59.12% | 56.22% | 53.16% | 60.28% | 60.06% | 64.79% | 65.71% | 70.22% |
| Return on equity | 71.77% | 72.75% | 87.75% | 75.00% | 60.43% | 68.31% | 64.68% | 78.46% | 79.60% | 81.24% |
| Return on assets | 1.28% | 1.30% | 1.86% | 1.52% | 1.23% | 1.50% | 1.60% | 2.19% | 2.27% | 2.14% |
| Liabilities / equity | 50.16 | 50.21 | 41.65 | 43.90 | 44.43 | 41.29 | 36.35 | 31.86 | 31.20 | 34.08 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001381197.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.97 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 1.42 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 1.20 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 1,145,000,000 | 772,000,000 | 1.56 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 1,139,000,000 | 739,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 1,203,000,000 | 795,000,000 | 1.61 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 1,230,000,000 | 809,000,000 | 1.65 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 1,365,000,000 | 834,000,000 | 1.67 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 1,387,000,000 | 969,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 1,427,000,000 | 964,000,000 | 1.94 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 1,480,000,000 | 1,006,000,000 | 0.51 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 1,655,000,000 | 1,186,000,000 | 0.59 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 1,643,000,000 | 1,201,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 1,669,000,000 | 1,171,000,000 | 0.59 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 1,896,000,000 | 1,338,000,000 | 0.69 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from IBKR's latest 10-K: [/company/IBKR/business/](/company/IBKR/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from IBKR's latest 10-K: [/company/IBKR/risk-factors/](/company/IBKR/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1381197/000138119726000147/ibkr-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-06
Report date: 2026-06-30

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and the related notes in Item 1, included elsewhere in this report. In addition to historical information, the following discussion also contains forward‑looking statements that include risks and uncertainties. Our actual results may differ materially from those anticipated in these forward‑looking statements as a result of certain factors, including those set forth under the heading “Risk Factors” in our Annual Report on Form 10‑K filed with the Securities Exchange Commission (“SEC”) on February 27, 2026, and elsewhere in this report.

When we use the terms “we,” “us,” “our,” and “IBKR,” we mean IBG, Inc. and its subsidiaries (including IBG LLC) for the periods presented. Unless otherwise indicated, the term “common stock” refers to the Class A common stock of IBG, Inc.

Introduction

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.

[[GREPCENT_TABLE]]
[["","","IBG, Inc.","","Holdings","","Total"],["Ownership %","26.5%","","73.5%","","100.0%"],["Membership interests","450,671,113","","1,250,737,416","","1,701,408,529"]]
[[/GREPCENT_TABLE]]

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.

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.

Since our inception in 1977, we have focused on developing proprietary software to automate broker‑dealer functions. The proliferation of electronic exchanges and market centers has allowed us to integrate our software with an increasing number of trading venues – as well as with market data sources, securities lending platforms and regulatory reporting facilities – creating one automated platform that requires minimal human intervention.

Our customer base is diverse with respect to geography and type. Currently, our customers reside in over 200 countries and territories. We serve individuals, as well as institutional accounts such as hedge funds, financial advisors, proprietary trading firms and introducing brokers. Specialized products and services that we have developed successfully attract institutional accounts. For example, we offer prime brokerage services, including financing and securities lending, to hedge funds; our model portfolio technology and automated share allocation and rebalancing tools are particularly attractive to financial advisors; and our trading platform, global access and low pricing attract introducing brokers.

38

Table of Contents

Business Environment

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.

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.

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.

The following is a summary of the key economic drivers that affect our business and how they compared to the prior-year quarter:

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.

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.

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 2 for additional details regarding our trade volumes, contract and share volumes, and customer statistics.

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.

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.

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.

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.

39

Table of Contents

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.

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.

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 Qualita

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1381197/000138119726000062/ibkr-20251231.htm
Complete FY 2025 MD&A: /company/IBKR/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-27
Report date: 2025-12-31

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the audited consolidated financial statements and the related notes in Part II, Item 8, of this Annual Report on Form 10-K. In addition to historical information, the following discussion also contains forward-looking statements that include risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those set forth under the heading “Risk Factors” in Part I, Item 1A of this Annual Report on Form 10-K.

Business Overview

We are an automated global broker. We custody and service accounts for hedge and mutual 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 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 forecast contracts, which are event-based contracts traded on ForecastEx, a CFTC-registered exchange and clearinghouse we established.

As a 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.

Since our inception in 1977, we have focused on developing proprietary software to automate broker-dealer functions. The proliferation of electronic exchanges and market centers has allowed us to integrate our software with an increasing number of trading venues – as well as with market data sources, securities lending platforms and regulatory reporting facilities – creating one automated platform that requires minimal human intervention.

Our customer base is diverse with respect to geography and type. Currently, our customers reside in over 200 countries and territories. We serve individuals, as well as institutional accounts such as hedge funds, financial advisors, proprietary trading firms and introducing brokers. Specialized products and services that we have developed successfully attract institutional accounts. For example, we offer prime brokerage services, including financing and securities lending, to hedge funds; our model portfolio technology and automated share allocation and rebalancing tools are particularly attractive to financial advisors; and our trading platform, global access and low pricing attract introducing brokers.

Business Environment

During 2025, global equity markets extended their multi-year advances, with several major indices reaching record levels and many recording double-digit gains. The S&P 500 Index returned 16.4% for the year, though it was outperformed by a number of international markets, including Canada, the United Kingdom, Europe, Hong Kong, Japan, and China.

Within the U.S., market performance became somewhat more diversified compared to the prior year. The group of large-cap technology stocks commonly referred to as the “Magnificent Seven” accounted for approximately 35% of the S&P 500’s total return in 2025, compared to approximately 50% in 2024. More broadly, companies associated with AI, including these large-cap technology firms, contributed more than half of the index’s overall return. Increased investor interest in AI-related companies also coincided with a partial recovery in the initial public offering market, particularly among technology-focused issuers.

Inflationary pressures moderated during 2025, contributing to monetary policy easing across several major economies. Central banks reduced policy interest rates, which supported financial market activity and economic conditions, despite ongoing geopolitical developments and trade policy uncertainty. Lower interest rates, along with expectations of additional monetary easing, were associated with higher market indices and increased trading. Retail investor participation remained elevated with continued engagement, particularly in equity and options markets.

The following is a summary of the key economic drivers that affect our business and how they compared to the prior year:

Global trading volumes. Worldwide, equities volumes at most major trading venues increased in the current year, while major market indices reached all-time highs in the U.S., Canada, Europe, U.K., Germany, Japan, and Australia. In the U.S., according to industry data, average daily volume in listed cash equities increased by 45%, exchange-listed equity-based options by 25%, and futures by 6%, compared to 2024. Options trading volumes have risen with the growing popularity of shorter-dated options contracts. In futures markets, volumes increased across most product segments, particularly in metals, energy, equity index, agriculture and interest rate products, as investors sought to mitigate their exposure to ongoing economic and geopolitical uncertainties.

38

Table of Contents

These factors led to strong results across our major product types. Our customer equities, options, foreign exchange, and futures volumes were up 38%, 26%, 15%, and 12%, respectively, compared to the prior year.

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 7 for additional details regarding our trade volumes, contract and share volumes, and customer statistics.

Volatility. U.S. market volatility, as measured by the average Chicago Board Options Exchange Volatility Index (‘‘VIX®’’), increased by 22%, from an average of 15.6 in 2024 to 18.9 in the current year, the highest annual level seen since 2022. In general, higher volatility typically enhances our performance because it often correlates positively with customer trading activity across product types.

Interest Rates. During 2025, the U.S. Federal Reserve cut the benchmark federal funds rate by a total of 75 basis points, with 25 basis point reductions at its September, October, and December meetings. This resulted in a target range of 3.50% to 3.75% at year end, the lowest level since late 2022. Over the course of the year, the U.S. Treasury yield curve moved toward normalization but remained partially inverted at year end, with short- to intermediate-term yields flat to inverted, while longer-term yields exceeded shorter-term rates. In most countries with developed financial markets, benchmark interest rates also declined during 2025 as inflationary pressures eased and central banks adjusted monetary policy accordingly.

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. Higher short-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 December 31, 2025, to more closely match our asset and liability maturities on our interest-sensitive assets. Further, our margin balances are tied to benchmark rates, so lower rates also limit the interest we earn on margin lending to our customers. We continue to offer among the lowest rates in the industry on margin lending, and we believe our low rates are an important feature that attracts customers to our platform.

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. At this benchmark rate level, we are able to earn our full 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.

Net interest income on margin loan balances rose compared to the prior year. This increase was due to the growth in margin loan balances in the current active market environment despite the average federal funds effective rate declining to 4.21% in the current year from 5.14% in the prior year.

Higher average balances contributed to a 13% rise in net interest income over the prior year. Net interest margin declined from 2.35% in the prior year to 2.08% in the current year primarily due to lower interest rates.

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 year, the value of the GLOBAL, as measured in U.S. dollars, increased 2.05% compared to its value at December 31, 2024, which had a positive impact on our comprehensive earnings for the current year. A discussion of our approach for managing foreign currency exposure is contained in Part II, Item 7A of this Annual Report on Form 10-K entitled ‘‘Quantitative and Qualitative Disclosures about Market Risk.”

Financial Overview

We report non-GAAP financial measures, which exclude certain items that may not be indicative of our core operating results and business outlook and are useful in evaluating the operating performance of our business. See the “Non-GAAP Financial Measures” section below in this Item 7 for additional details.

Diluted earnings per share were $2.22 for the year ended December 31, 2025 (“current year”), compared to $1.73 for the year ended December 31, 2024 (“prior year”). Adjusted diluted earnings per share were $2.19 for the current year, compared to $1.76 for the prior year. The calculation of diluted earnings per share is detailed in Note 4 – “Equity and Earnings Per Share” to the audited consolidated financial statements, in Part II, Item 8 of this Annual Report on Form 10-K.

For the current year, our net revenues were $6,205 million and income before income taxes was $4,771 million, compared to net revenues of $5,185 million and income before income taxes of $3,695 million in the prior year. Adjusted net revenues were $6,156 million and adjusted income before income taxes was $4,722 million, compared to adjusted net revenues of $5,257 million and adjusted income before income taxes of $3,767 million in the prior year.

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Table of Contents

The financial highlights for the current year were:

•
Net interest income increased 13% from the prior year to $3,563 million, driven by higher average customer margin loans and customer credit balances, and by stronger securities lending activity.

•
Commission revenue increased 27% from the prior year to $2,149 million on higher stocks, options and futures volumes.

•
Other fees and services increased 4% from

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/IBKR/mda/fy2025/
All MD&A years: /company/IBKR/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/IBKR/mda/fy2024/): filed 2025-02-27; accession 0001381197-25-000036 (https://www.sec.gov/Archives/edgar/data/1381197/000138119725000036/ibkr-20241231x10k.htm)
- [FY 2023 MD&A](/company/IBKR/mda/fy2023/): filed 2024-02-27; accession 0001381197-24-000083 (https://www.sec.gov/Archives/edgar/data/1381197/000138119724000083/ibkr-20231231x10k.htm)
- [FY 2022 MD&A](/company/IBKR/mda/fy2022/): filed 2023-02-24; accession 0001381197-23-000014 (https://www.sec.gov/Archives/edgar/data/1381197/000138119723000014/ibkr-20221231x10k.htm)
- [FY 2021 MD&A](/company/IBKR/mda/fy2021/): filed 2022-02-25; accession 0001381197-22-000010 (https://www.sec.gov/Archives/edgar/data/1381197/000138119722000010/ibkr-20211231x10k.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 6211 Security Brokers, Dealers & Flotation Companies) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- [M2SL](/indicator/M2SL/): M2

Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Consumer & credit](/thread/consumer-credit/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/IBKR.md · JSON record: /company/IBKR.json · verified financials: /company/IBKR/financials.json / /company/IBKR/financials.csv · machine TOC for the whole site: /llms.txt