UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K/A
Amendment No. 1
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the
 
Securities Exchange Act of 1934
 
 
Date of Report (Date of Earliest Event Reported):  October 15, 2024
 
Interactive Brokers Group, Inc.
(Exact Name of Registrant as Specified in its Charter)
 
Delaware
001-33440
30-0390693
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)
(I.R.S. Employer Identification Number)
 
 
 
One Pickwick Plaza, Greenwich, Connecticut 06830
(Address of Principal Executive Offices) (Zip Code)
 
(203) 618-5800
(Registrant’s Telephone Number, Including Area Code)
 
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
  ☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  ☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  ☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  ☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 

Title of each class
 
Trading Symbol 
 
Name of the exchange on which registered
Class A common stock, par value $.01 per share
 
IBKR
 
The Nasdaq Global Select Market
 


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter).
 
 
 
 
Emerging growth company  ☐
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
 
Item 2.02 Results of Operations and Financial Condition

On October 15, 2024, Interactive Brokers Group, Inc. (the “Company”) issued a press release reporting its financial results for the quarter ended September 30, 2024. Subsequently, Interactive Brokers LLC reached agreements in principle to settle certain disputes which relate back to events that took place prior to the end of the quarter ended September 30, 2024. The settlement will add $78 million to reported general and administrative expenses for the quarter ended September 30, 2024, and will result in the following revised operating results for the Company:

• General and administrative expenses: $153 million
• Income available for common stockholders: $184 million
• Adjusted net income available for common stockholders: $176 million
• Diluted earnings per share: $1.67
• Adjusted diluted earnings per share: $1.61
• Total equity: $16.0 billion

The Company is also furnishing revised unaudited Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, Condensed Consolidated Statements of Financial Condition, and Reconciliation of Non-GAAP Financial Measures. The statements that were included in the October 15, 2024 press release should no longer be relied upon.

The information disclosed under this Item 2.02 is being “furnished” and shall not be deemed “filed” by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.


1
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
REVISED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

       
Three Months
  
Nine Months
       
Ended September 30,
  
Ended September 30,
       
2024
  
2023
  
2024
  
2023
       
(in millions, except share and per share data)
                             
Revenues:
                        
 
Commissions
  
$
435
  
$
333
  
$
1,220
  
$
1,012
 
Other fees and services
    
72
    
52
    
199
    
142
 
Other income (loss)
    
56
    
27
    
38
    
(17)
   
Total non-interest income
    
563
    
412
    
1,457
    
1,137
                             
 
Interest income
    
1,888
    
1,643
    
5,476
    
4,535
 
Interest expense
    
(1,086)
    
(910)
    
(3,135)
    
(2,471)
   
Total net interest income
    
802
    
733
    
2,341
    
2,064
   
Total net revenues
    
1,365
    
1,145
    
3,798
    
3,201
                             
Non-interest expenses:
                        
 
Execution, clearing and distribution fees
    
116
    
98
    
332
    
286
 
Employee compensation and benefits
    
145
    
127
    
436
    
391
 
Occupancy, depreciation and amortization
  
26
    
25
    
77
    
74
 
Communications
    
9
    
10
    
29
    
29
 
General and administrative
    
153
    
45
    
255
    
166
 
Customer bad debt
    
                         7
    
                         -
    
14
    
2
   
Total non-interest expenses
    
456
    
305
    
1,143
    
948
                             
Income before income taxes
    
909
    
840
    
2,655
    
2,253
Income tax expense
    
75
    
68
    
217
    
180
                             
Net income
    
834
    
772
    
2,438
    
2,073
Net income attributable to noncontrolling interests
  
650
    
605
    
1,900
    
1,633
                             
Net income available for common stockholders
$
184
  
$
167
  
$
538
  
$
440
                             
Earnings per share:
                        
 
Basic
  
$
1.68
  
$
1.57
  
$
4.98
  
$
4.22
 
Diluted
  
$
1.67
  
$
1.56
  
$
4.94
  
$
4.19
                             
Weighted average common shares outstanding:
                  
 
Basic
    
108,757,991
    
106,233,557
    
107,852,597
    
104,271,921
 
Diluted
    
109,536,360
    
107,011,427
    
108,774,195
    
105,184,572


2
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
REVISED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)

       
Three Months
  
Nine Months
       
Ended September 30,
  
Ended September 30,
       
2024
  
2023
  
2024
  
2023
         (in millions, except share and per share data)  
                             
Comprehensive income:
                        
 
Net income available for common stockholders
  
$
184
  
$
167
  
$
538
  
$
440
 
Other comprehensive income:
                        
   
Cumulative translation adjustment, before income taxes
                       39
    
                     (19)
    
                       11
    
                       (7)
   
Income taxes related to items of other comprehensive income
  
                         -
    
                         -
    
                         -
    
                         -
 
Other comprehensive income (loss), net of tax
    
                       39
    
                     (19)
    
                       11
    
                       (7)
Comprehensive income available for common stockholders
$
223
  
$
148
  
$
549
  
$
433
                             
Comprehensive earnings per share:
                        
 
Basic
  
$
2.05
  
$
1.39
  
$
5.08
  
$
4.15
 
Diluted
  
$
2.03
  
$
1.38
  
$
5.04
  
$
4.12
                             
Weighted average common shares outstanding:
                        
 
Basic
    
108,757,991
    
106,233,557
    
107,852,597
    
104,271,921
 
Diluted
    
109,536,360
    
107,011,427
    
108,774,195
    
105,184,572
                             
Comprehensive income attributable to noncontrolling interests:
                  
 
Net income attributable to noncontrolling interests
  
$
650
  
$
605
  
$
1,900
  
$
1,633
 
Other comprehensive income - cumulative translation adjustment
  
114
    
(57)
    
30
    
(19)
Comprehensive income attributable to noncontrolling interests
$
764
  
$
548
  
$
1,930
  
$
1,614
                             



3
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
REVISED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)

         
September 30, 2024
  
December 31, 2023
         
(in millions)
                   
Assets
                
Cash and cash equivalents
      
$
                 3,595
  
$
                 3,753
Cash - segregated for regulatory purposes
        
               35,216
    
               28,840
Securities - segregated for regulatory purposes
        
               31,103
    
               35,386
Securities borrowed
        
                 7,513
    
                 5,835
Securities purchased under agreements to resell
        
                 8,176
    
                 5,504
Financial instruments owned, at fair value
        
                 2,949
    
                 1,488
Receivables from customers, net of allowance for credit losses
      
               56,006
    
               44,472
Receivables from brokers, dealers and clearing organizations
      
                 2,210
    
                 1,643
Other assets
        
                 1,758
    
                 1,502
 
Total assets
      
$
148,526
  
$
128,423
                   
Liabilities and equity
                
                   
Liabilities
                
Short-term borrowings
      
$
                     33
  
$
                     17
Securities loaned
        
               16,818
    
               11,347
Financial instruments sold but not yet purchased, at fair value
      
                    381
    
                    193
Other payables:
                
 
Customers
        
              112,579
    
              101,012
 
Brokers, dealers and clearing organizations
        
                 1,202
    
                    590
 
Other payables
        
                 1,508
    
                 1,197
           
              115,289
    
              102,799
 
Total liabilities
        
              132,521
    
              114,356
                   
Equity
                
Stockholders' equity
        
                 4,145
    
                 3,584
Noncontrolling interests
        
               11,860
    
               10,483
 
Total equity
        
               16,005
    
               14,067
 
Total liabilities and equity
      
$
148,526
  
$
128,423
                   
   
September 30, 2024
  
December 31, 2023
Ownership of IBG LLC Membership Interests
Interests
  
 %
  
Interests
    
 %
                   
IBG, Inc.
108,879,779
  
25.8%
  
107,049,483
    
25.4%
Noncontrolling interests (IBG Holdings LLC)
313,643,354
  
74.2%
  
313,976,354
    
74.6%
                   
Total IBG LLC membership interests
422,523,133
  
100.0%
  
421,025,837
    
100.0%
                   


4
INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
REVISED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)


     
Three Months
  
Nine Months
     
Ended September 30,
  
Ended September 30,
     
2024
  
2023
  
2024
  
2023
     
(in millions)
                           
Adjusted net revenues1
                        
Net revenues - GAAP
  
$
1,365
  
$
1,145
  
$
3,798
  
$
3,201
                           
Non-GAAP adjustments
                        
 
Currency diversification strategy, net
    
(25)
    
17
    
(3)
    
71
 
Mark-to-market on investments2
    
(13)
    
                     (23)
    
38
    
(54)
Total non-GAAP adjustments
    
(38)
    
(6)
    
35
    
17
Adjusted net revenues
  
$
1,327
  
$
1,139
  
$
3,833
  
$
3,218
                           
Adjusted income before income taxes1
                        
Income before income taxes - GAAP
  
$
909
  
$
840
  
$
2,655
  
$
2,253
                           
Non-GAAP adjustments
                        
 
Currency diversification strategy, net
    
(25)
    
17
    
(3)
    
71
 
Mark-to-market on investments2
    
(13)
    
                     (23)
    
38
    
(54)
Total non-GAAP adjustments
    
(38)
    
(6)
    
35
    
17
Adjusted income before income taxes
  
$
871
  
$
834
  
$
2,690
  
$
2,270
                           
Adjusted pre-tax profit margin
    
66%
    
73%
    
70%
    
71%



5

     
Three Months
  
Nine Months
     
Ended September 30,
  
Ended September 30,
     
2024
  
2023
  
2024
  
2023
     
(in millions)
Adjusted net income available for common stockholders1
                  
Net income available for common stockholders - GAAP
$
184
  
$
167
  
$
538
  
$
440
                           
Non-GAAP adjustments
                        
 
Currency diversification strategy, net
    
(6)
    
4
    
                       (1)
    
18
 
Mark-to-market on investments2
    
(3)
    
(6)
    
                       10
    
(14)
 
Income tax effect of above adjustments3
    
2
    
                         1
    
(2)
    
(0)
Total non-GAAP adjustments
    
                       (8)
    
                       (1)
    
                         7
    
                         4
Adjusted net income available for common stockholders
$
176
  
$
166
  
$
545
  
$
444
                           
Note: Amounts may not add due to rounding.
                        



     
Three Months
  
Nine Months
     
Ended September 30,
  
Ended September 30,
     
2024
  
2023
  
2024
  
2023
     
(in dollars)
Adjusted diluted EPS1
                        
Diluted EPS - GAAP
  
$
1.67
  
$
1.56
  
$
4.94
  
$
4.19
                           
Non-GAAP adjustments
                        
 
Currency diversification strategy, net
    
(0.06)
    
0.04
    
(0.01)
    
0.17
 
Mark-to-market on investments2
    
(0.03)
    
(0.05)
    
0.09
    
(0.13)
 
Income tax effect of above adjustments3
    
0.02
    
0.01
    
(0.02)
    
(0.00)
Total non-GAAP adjustments
    
(0.07)
    
(0.01)
    
0.06
    
0.04
Adjusted diluted EPS
  
$
1.61
  
$
1.55
  
$
5.00
  
$
4.22
                           
Diluted weighted average common shares outstanding
109,536,360
    
107,011,427
    
108,774,195
    
105,184,572
                           
Note: Amounts may not add due to rounding.
                        



6

Note: The term “GAAP” in the following explanation refers to generally accepted accounting principles in the United States.
1 Adjusted net revenues, adjusted income before income taxes, adjusted net income available for common stockholders and adjusted diluted earnings per share (“EPS”) are non-GAAP financial measures.
•
We define adjusted net revenues as net revenues adjusted to remove the effect of our currency diversification strategy and our net mark-to-market gains (losses) on investments2.
•
We define adjusted income before income taxes as income before income taxes adjusted to remove the effect of our currency diversification strategy and our net mark-to-market gains (losses) on investments.
•
We define adjusted net income available to common stockholders as net income available for common stockholders adjusted to remove the after-tax effects attributable to IBG, Inc. of our currency diversification strategy and our net mark-to-market gains (losses) on investments.
•
We define adjusted diluted EPS as adjusted net income available for common stockholders divided by the diluted weighted average number of shares outstanding for the period.
Management believes these non-GAAP items are important measures of our financial performance because they exclude certain items that may not be indicative of our core operating results and business outlook and may be useful to investors and analysts in evaluating the operating performance of the business and facilitating a meaningful comparison of our results in the current period to those in prior and future periods. Our currency diversification strategy and our mark-to-market on investments are excluded because management does not believe they are indicative of our underlying core business performance. Adjusted net revenues, adjusted income before income taxes, adjusted net income available to common stockholders and adjusted diluted EPS should be considered in addition to, rather than as a substitute for, GAAP net revenues, income before income taxes, net income attributable to common stockholders and diluted EPS.
2 Mark-to-market on investments represents the net mark-to-market gains (losses) on investments in equity securities that do not qualify for equity method accounting, which are measured at fair value; on our U.S. government and municipal securities portfolios, which are typically held to maturity; and on certain other investments, including equity securities taken over by the Company as a customer accommodation due to a technical issue at the New York Stock Exchange that occurred on the morning of June 3, 2024.
3 The income tax effect is estimated using the statutory income tax rates applicable to the Company.

Item 9.01. Financial Statements and Exhibits.

Exhibits
 
104
 Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL Document).


***
 
7

 
SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Dated: October 20, 2024
 
 
INTERACTIVE BROKERS GROUP, INC.
 
 
 
 
 
 
 
 
 
 
By:
/s/ Paul J. Brody
 
 
Name:
Paul J. Brody
 
 
Title:
Chief Financial Officer, Treasurer
and Secretary
 






v3.24.3
Document and Entity Information
Oct. 15, 2024
Cover [Abstract]  
Document Type 8-K/A
Amendment Flag false
Document Period End Date Oct. 15, 2024
Entity File Number 001-33440
Entity Registrant Name Interactive Brokers Group, Inc.
Entity Central Index Key 0001381197
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 30-0390693
Entity Address, Address Line One One Pickwick Plaza
Entity Address, City or Town Greenwich
Entity Address, State or Province CT
Entity Address, Postal Zip Code 06830
City Area Code 203
Local Phone Number 618-5800
Title of 12(b) Security Class A common stock
Trading Symbol IBKR
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
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