# Interactive Brokers (IBKR)

Sector: Capital markets

| Field | Value |
|---|---|
| Price | $77.57 |
| Intrinsic value source | Analysts |
| Data as of | 2026-11-10 |
| Next earnings | 2027-01-19 (estimate) |

Analysts: Bullish

Picks: Research only

Discount category: Close to intrinsic value

## In short

The market doubts that Interactive Brokers can keep its profit growth if rates fall and trading slows, and fast account growth with a steady pretax margin can close the gap within about a year.

## Themes and gap

- Themes: Interest rates (interest-rates)
- Gap type: Can close (closable)
- Why: The Q4 2026 report expected in mid-January 2027 tests whether account growth and margin loans keep net interest income growing as rates change.

## About

Interactive Brokers is an automated global broker. Customers trade stocks, options, futures, currencies, bonds, funds and forecast contracts on more than 175 markets in 40 countries and territories from one account. It also lends to customers on margin, lends securities and pays interest on customer cash. It serves individual investors, hedge funds, financial advisors, proprietary trading groups and introducing brokers. At September 30, 2026, it had 5.58 million customer accounts, customer equity of $964.7 billion and 3,283 employees. In Q3 2026, net revenues were $1.91 billion, of which net interest income was $1.15 billion and commissions were $602 million. The listed company, Interactive Brokers Group, Inc., owns 26.6% of IBG LLC, which holds the operating companies. IBG Holdings LLC, owned by the founder and chairman Thomas Peterffy, his affiliates and employees, owns the other 73.4%. The shares trade on the Nasdaq.

## Thesis

The market doubts that Interactive Brokers can keep its fast profit growth, because much of its profit depends on interest rates and active markets. Net interest income was 60% of net revenues in Q3 2026, and it depends on interest rates and on margin loans that grow when stock markets rise. The company says that a 0.25% fall in U.S. dollar rates lowers net interest income by $83 million a year. Trading is also cyclical: in Q3 2026, customer stock volumes fell 24% while futures volumes rose 13%. For the gap to close, three things must be true. Customer accounts must keep growing fast; they grew 35% to 5.58 million in the year to September 30, 2026. Margin loans and customer credits must keep growing and offset any rate cuts. The pretax margin must stay near 77% to 78% as the company adds markets and products. The Q4 2026 report, expected in mid-January 2027, gives the next test. Each quarterly report in 2027 tests account growth and net interest income. If these checks pass, the gap can close within about a year.

## Checkpoints

- Jan 19, 2027 (estimate): Q4 2026 results: accounts and net interest income. Status: Pending. Watch: Account growth of 25% or more and net interest income above the $1.15 billion of Q3 2026 pass; falling margin loans or net interest income fail.

## Balance sheet

- Cash: $5.9B
- Debt: $18M
- Net cash: $5.9B

Interactive Brokers has almost no debt. At September 30, 2026, short-term borrowings were $18 million, and the company had no variable-rate debt. Cash and cash equivalents were $5.9 billion. Customer assets are separate: cash segregated for regulatory purposes was $58.7 billion and segregated securities were $38.4 billion. Customer receivables, mostly margin loans, were $105.6 billion, and customer payables were $180.5 billion. Total equity was $23.3 billion, of which $6.2 billion belonged to the stockholders of the listed company and $17.0 billion to IBG Holdings. Excess regulatory capital of the operating companies was $14.6 billion. About 24% of equity was held in currencies other than the U.S. dollar.

As of 2026-09-30.

Sources:

- https://www.sec.gov/Archives/edgar/data/1381197/000138119726000163/ibkr-20260930.htm
- https://www.sec.gov/Archives/edgar/data/1381197/000138119726000154/ibkr-ex99_1.htm

## Dividends

- Dividend yield: 0.4% (last 12 months, at the current price)
- Paid per share, last 12 months: $0.336 (4 payments)
- Current annual rate: $0.352 ($0.088 x 4 a year)
- Payout ratio: 14% of the earnings of the last fiscal year (the year ended 2025-12-31)
- Latest ex-dividend date: 2026-09-01, $0.088 per share
- Growth over the last 5 years: 27.4% a year
- Growth over the last 10 years: 12.9% a year

Dividends per share by year: 2016: $0.10, 2017: $0.10, 2018: $0.10, 2019: $0.10, 2020: $0.10, 2021: $0.10, 2022: $0.10, 2023: $0.10, 2024: $0.2125, 2025: $0.3025.

Source: company filings and market data, read on 2026-11-09.

## Recent events

- 2026-10-15: Interactive Brokers reported Q3 2026 results. Net revenues rose 16% to $1.91 billion and diluted EPS rose to $0.69 from $0.59. Net interest income rose 19% to $1.15 billion on higher margin loans and customer credits, and commissions rose 12% to $602 million. Customer accounts rose 35% to 5.58 million, customer equity rose 27% to $964.7 billion and margin loans rose 36% to $105.2 billion. The pretax margin was 78%. The board raised the quarterly dividend to $0.15 per share from $0.0875.
- 2026-07-21: Interactive Brokers reported Q2 2026 results. Net revenues rose to $1.90 billion and diluted EPS rose to $0.69 from $0.51. Commissions rose 30% to $673 million on higher trading volumes, and net interest income rose 23% to $1.06 billion. Customer accounts rose 34% to 5.19 million. The pretax margin was 77%.
- 2026-04-21: Interactive Brokers reported Q1 2026 results. Net revenues rose to $1.67 billion and diluted EPS rose to $0.59 from $0.48. Commissions rose 19% to $613 million, and net interest income rose 17% to $904 million. The board raised the quarterly dividend to $0.0875 per share from $0.08.
- 2026-01-20: Interactive Brokers reported Q4 2025 results. Diluted EPS for 2025 was $2.22.

## Latest news and filings

- Last earnings: 2026-10-15 (8-K: https://www.sec.gov/Archives/edgar/data/1381197/000138119726000154/)
- Next earnings: 2027-01-19 (expected; the company has not confirmed it)

| Filed | Form | Headline | Period end | XBRL document | Link |
| --- | --- | --- | --- | --- | --- |
| 2026-11-05 | 10-Q | Quarterly report for the period ended Sep 30, 2026 | 2026-09-30 | ibkr-20260930 | https://www.sec.gov/Archives/edgar/data/1381197/000138119726000163/ibkr-20260930.htm |
| 2026-10-15 | 8-K | Earnings release |  | ibkr-20261015 | https://www.sec.gov/Archives/edgar/data/1381197/000138119726000154/ibkr-20261015.htm |
| 2026-08-06 | 10-Q | Quarterly report for the period ended Jun 30, 2026 | 2026-06-30 | ibkr-20260630 | https://www.sec.gov/Archives/edgar/data/1381197/000138119726000147/ibkr-20260630.htm |
| 2026-07-31 | 8-K | Other company news |  | ibkr-20260731 | https://www.sec.gov/Archives/edgar/data/1381197/000138119726000135/ibkr-20260731.htm |
| 2026-07-31 | 8-K | Other company news |  | ibkr-20260731 | https://www.sec.gov/Archives/edgar/data/1381197/000138119726000130/ibkr-20260731.htm |
| 2026-07-21 | 8-K | Earnings release |  | ibkr-20260721 | https://www.sec.gov/Archives/edgar/data/1381197/000138119726000118/ibkr-20260721.htm |
| 2026-05-07 | 10-Q | Quarterly report for the period ended Mar 31, 2026 | 2026-03-31 | ibkr-20260331 | https://www.sec.gov/Archives/edgar/data/1381197/000138119726000093/ibkr-20260331.htm |
| 2026-04-29 | 8-K | Shareholder vote results |  | ibkr-20260423 | https://www.sec.gov/Archives/edgar/data/1381197/000138119726000085/ibkr-20260423.htm |
| 2026-04-21 | 8-K | Earnings release |  | ibkr-20260421 | https://www.sec.gov/Archives/edgar/data/1381197/000138119726000078/ibkr-20260421.htm |
| 2026-02-27 | 10-K | Annual report for the period ended Dec 31, 2025 | 2025-12-31 | ibkr-20251231 | https://www.sec.gov/Archives/edgar/data/1381197/000138119726000062/ibkr-20251231.htm |

Every filing on SEC EDGAR (CIK 1381197): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001381197&type=&dateb=&owner=include&count=40

## Risks

- High: Net interest income was 60% of net revenues in Q3 2026. The company says that a 0.25% fall in U.S. dollar rates lowers net interest income by $83 million a year, and a 0.25% fall in other currencies' rates lowers it by $35 million.
- Medium: Commissions and margin loans grow when markets are active and prices rise. A long market fall can lower trading volumes, margin loans and customer credits at the same time.
- Medium: IBG Holdings LLC, controlled by the founder Thomas Peterffy, owns 73.4% of IBG LLC and controls the votes. Holders of the listed shares have little influence on decisions.
- Low: In a sudden market crash, some margin loans can lose their collateral value. Customer bad debt was $10 million in the nine months to September 30, 2026.
- Low: Other brokers offer trading with no commissions and pay interest on cash. If rivals cut margin rates or pay more on cash, account growth can slow.

## Links

- Page: https://picks.utilarium.app/company/IBKR/
- History of changes: https://picks.utilarium.app/company/IBKR/history/
- JSON with full history: https://picks.utilarium.app/data/company/IBKR.json

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