IBKR US S&P 500Russell 1000 Earnings call
Interactive Brokers (IBKR) · Q2 2026 results and valuation
Share price: $82.49 · 2026-11-11
Interactive Brokers operates a broker-dealer business providing securities and derivatives trading services. The company serves customers in the United States and various international markets, including Canada, the United Kingdom, the European Union, and Asia. Source: 10-K annual report (2026-02-27)
Results Q2 2026 vs Q1 2026 · previous quarter · published 21 Jul 2026 and 21 Apr 2026
Net income up 14.3% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
+14.3%
Net income vs Q1 2026
Net income 1.34B vs 1.17B
Revenue +8.7%
Against the same quarter last year (Q2 2025) it is +33.0%, so it is not just seasonal.
Why Against the same quarter last year (+33.0%), net income rose primarily because other fees and services grew by 40% due to strong options volumes and higher risk exposure fees, while compensation and benefits expense as a ratio of adjusted net revenues decreased.
2 · How management spoke
Typical
More upbeat than 62% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Interactive Brokers' 34% growth in new accounts drove client uninvested cash balances higher by 27% year-over-year to a record $182 billion.
Valuation
Is Interactive Brokers undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 10.0% growth a year (3-year revenue growth), the model's fair value is $66.41 a share — the stock trades 24% above it. Today's price assumes 13.2% growth a year.
Current price
$82.49
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+13.2% for 10 yrs
Fair value / share
$66.41
Buy below
$49.81
Price vs fair value
Overvalued 24%
Price vs buy-below price
Overvalued 66%
Read between the lines
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Figure
Net revenue related to securities lending would have been $343 million this quarter, up 37% over the prior year quarter, if specific collateral interest were included.
Source quote
“We estimate that, if the additional interest earned and paid on cash collateral were included under securities borrowed and loaned, then the net revenue related to securities lending would have been at $343 million this quarter, up 37% over the prior year quarter.”
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Figure
A 25 basis point increase in the benchmark Fed funds rate is estimated to result in an $81 million increase in annual net interest income.
Source quote
“We estimate the effect of a 25 basis point increase in the benchmark Fed funds rate to be an $81 million increase in annual net interest income.”
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Figure
The company's reported growth rate fell from 30% to 20% following a statement regarding the expected growth targets.
Source quote
“It was only once when I said that we will grow at 30%, and immediately the growth rate went down to 20%.”
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Figure
The pre-tax profit margin reached 77%, marking the seventh consecutive quarter above 70% and maintaining the company's position as an industry leader.
Source quote
“Our pre-tax profit margin was 77%, maintaining our position as an industry leader and marking the seventh consecutive quarter with margins above 70%.”
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Figure
New account growth of 34% drove client uninvested cash balances higher by 27% year-over-year to a record $182 billion.
Source quote
“Even with higher activity levels, with clients investing their funds into the market, 34% growth in new accounts drove client uninvested cash balances higher by 27% year-over-year to a record $182 billion.”
4 more
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Figure
Overnight trading volumes nearly tripled year-over-year in the second quarter, increasing to 10.9 million trades from 3.8 million.
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Key theme
IBKR received preliminary conditional approval from the OCC for a national trust bank charter, which is required to directly custody assets for mutual fund and ETF customers.
Source quote
“We received preliminary conditional approval from the OCC on our application for a national trust bank charter, which is a requirement to directly custody assets for mutual fund and ETF customers.”
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Key theme
Interactive Brokers is pleased with its financial results this quarter, as it agains produced record net revenues and pre-tax income and strong results in its key operating metrics.
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Figure
The total excess, after subtracting various buffers, is around $10.3 billion.
Source quote
“The total excess at this point, if we subtract the various buffers that we have in place, is around $10.3 billion.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Our net interest income reflects strong annual increases in balances, as well as increases in a few international benchmark rates.”
“The S&P 500 was up nearly 15% in the second quarter as markets rose strongly in April and May on the back of strong tech earnings, while also taking shifting...”
“Turning to our customer segments, our introducing broker pipeline remains very strong, similar to what we saw last quarter, with a robust pool of prospects as we continue to onboard...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 760.0M | 699.0M | +8.7% | 578.0M | +31.5% |
| Operating income | 1.46B | 1.29B | +13.0% | 1.10B | +31.9% |
| Net income | 1.34B | 1.17B | +14.3% | 1.01B | +33.0% |
| EPS | 0.69 | 0.59 | +16.9% | 0.51 | +35.3% |
| P/E today 28.9 | 34.5 | 28.8 | +5.7 | 29.2 | +5.3 |
Topics
Most discussed now
- New Interactive Brokers is going to continue to concentrate on weather-related contracts, and it is now bringing in potential hurricane…
- Other fees and services generated $87 million, up 40%, primarily driven by strong options volumes, which led to higher payments...
- Interactive Brokers saw robust trading volumes from its growing base of active customers across stocks, options, and futures.
- Other income includes gains and losses on Interactive Brokers' investments, its currency diversification strategy, and principal…
- In particular, Interactive Brokers has a fully paid lending program it calls Stock Yield Enhancement, and it lends out their securities,...
Faded since Q1 2026
- Fading Other fees and services generated $86 million, up 10%, primarily driven by higher market data and FDIC sweep...
- Fading Interactive Brokers continues to have no long-term debt and profit growth drove its firm equity...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
Interactive Brokers reported net revenues of $1.91 billion for the quarter ended September 30, 2026, compared to $1.66 billion in the same quarter of the previous year.
- Other events · SEC 8-K
Interactive Brokers Group, Inc. filed a Prospectus Supplement on July 31, 2026, to register up to 920,000 shares of common stock from its shelf Registration Statement.
- Other events · SEC 8-K
Interactive Brokers Group, Inc. filed a Prospectus Supplement on July 31, 2026, to offer 2,499,567 shares of common stock under its existing shelf Registration Statement.
- Results of operations · SEC 8-K
Interactive Brokers Group reported net revenues of $1.90 billion for the quarter ended June 30, 2026, compared to $1.48 billion in the same quarter of the previous year.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
Interactive Brokers reported net revenues of $1.67 billion for the quarter ended March 31, 2026, compared to $1.43 billion in the same quarter of the previous year.
- Results of operations · SEC 8-K
Interactive Brokers Group reported net revenues of $1.64 billion for the quarter ended December 31, 2025, compared to $1.39 billion in the same quarter of the previous year.
- Results of operations · SEC 8-K
Interactive Brokers Group reported net revenues of $1,655 million for the quarter ended September 30, 2025, up from $1,365 million in the year-ago quarter.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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by year-end
having the necessary work completed and operational for the national trust bank charter
Source quote
“We plan to have the necessary work completed and have it operational by year-end.”
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in the coming quarters
sharing further updates
Source quote
“We look forward to sharing further updates in the coming quarters.”
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tomorrow
posting a clean version of the transcript on our site
Source quote
“we will be posting a clean version of the transcript on our site tomorrow.”
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next quarter end
talking to [the audience]
Source quote
“we look forward to talking to you next quarter end.”