Interactive Brokers Group, Inc.

Paul Brody said commissions rose 30% year over year to a new record, net interest income rose 23% to over $1 billion, and other fees and services were $87 million, up 40%. Execution, clearing, and distribution costs were $142 million, up 22%, compensation and benefits were $182 million, G&A was $68 million, and pre-tax margin was 77% as reported and adjusted. Total assets were $247 billion, up 36% year over year, firm equity was $22.3 billion, up 20%, total customer DARTs were 4.8 million per day, up 36%, and commission per cleared commissionable order was $2.64. Nancy Stuebe said client uninvested cash balances rose 27% year over year to a record $182 billion and client equity rose 40% to $930 billion. The company did not give next-quarter or full-year financial guidance on the call.

Milan Galik emphasized broad-based growth across regions and client types, saying the company is growing everywhere globally and that the introducing broker pipeline remains healthy with more integrations in progress than last quarter. He also highlighted the strategic push into new products and market access, including Korea, European crypto, prediction markets, and AI-driven client interaction tools. His tone was confident and expansionary, but he avoided making specific promises about future account growth.

Paul Brody focused on the strong financial engine: commissions up 30%, net interest income over $1 billion, and a 77% pre-tax margin, while noting expenses were affected by the reinitiation of SEC regulatory fees, which added $34 million to execution, clearing, and distribution costs. He said the firm had $247 billion in assets, no long-term debt, and $22.3 billion in firm equity, and he outlined rate sensitivity, estimating a 25 bp Fed funds move would change annual net interest income by $81 million, with a $38 million impact for a 25 bp move in relevant non-USD benchmark rates. He also explained that securities lending net revenue would have been $343 million if additional related cash collateral interest were included.

Analysts asked whether increased marketing spend is driving a structurally higher account growth rate; Thomas Peterffy said marketing yield is roughly the same as before, with higher expense matched by higher yield rather than better-than-proportional returns. They also pressed on margin loan growth and client risk; he said the firm is continuously monitoring client margin risk and is comfortable with current levels. Questions on Korea, China, prediction markets, securities lending, and AI led management to say Korea was well-timed and trading in Korean semiconductor names was strong, Chinese regulatory changes had created an uptick in transfers from Tiger and Futu into IBKR, prediction markets are being expanded to increase access and liquidity, and AI trading currently uses a human-in-the-loop approval step with fully autonomous trading planned only later with guardrails.