IBKR Interactive Brokers Group Inc

GAAP Diluted EPS of $1.99, Adjusted1 EPS of $2.03

GAAP Net Revenues of $1,387 Million, Adjusted Net Revenues of $1,424 Million

Interactive Brokers Group, Inc. (Nasdaq: IBKR), an automated global electronic broker, announced results for the quarter ended December 31, 2024.

Reported diluted earnings per share were $1.99 for the current quarter and $2.03 as adjusted. For the year-ago quarter, reported diluted earnings per share were $1.48 and $1.52 as adjusted.

Reported net revenues were $1,387 million for the current quarter and $1,424 million as adjusted. For the year-ago quarter, reported net revenues were $1,139 million and $1,149 million as adjusted.

Reported income before income taxes was $1,040 million for the current quarter and $1,077 million as adjusted. For the year-ago quarter, reported income before income taxes was $816 million and $831 million as adjusted.

Financial Highlights (All comparisons are to the year-ago quarter.)

• Commission revenue increased 37% to $477 million on higher customer trading volumes. Customer trading volume in options and stocks increased 32% and 65%, respectively, while customer futures volume decreased by 3%.

• Net interest income increased 11% to $807 million on higher average customer margin loans and customer credit balances.

• Other fees and services increased $26 million, or 47%, to $81 million, led by increases of $14 million in risk exposure fees and $4 million in payments for order flow from exchange-mandated programs.

• Execution, clearing and distribution fees expenses increased 15% to $115 million, driven by a higher SEC fee rate, a new FINRA Consolidated Audit Trail (“CAT”) fee initiated during the current quarter, and higher customer trading volumes in options and stocks.

• General and administrative expenses increased $14 million, or 31%, to $59 million, driven primarily by an increase of $9 million in advertising expenses.

• Pretax profit margin for the current quarter was 75% as reported and 76% as adjusted. For the year-ago quarter, pretax margin was 72% both as reported and as adjusted.

• Total equity of $16.6 billion.

The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.25 per share. This dividend is payable on March 14, 2025, to shareholders of record as of February 28, 2025.

Business Highlights (All comparisons are to the year-ago quarter.)

• Customer accounts increased 30% to 3.34 million.
• Customer equity increased 33% to $568.2 billion.
• Total DARTs2 increased 61% to 3.12 million.
• Customer credits increased 15% to $119.7 billion.
• Customer margin loans increased 45% to $64.2 billion.

Other Items

In connection with our currency diversification strategy, we base our net worth in GLOBALs, a basket of 10 major currencies in which we hold our equity. In this quarter, our currency diversification strategy decreased our comprehensive earnings by $266 million, as the U.S. dollar value of the GLOBAL decreased by approximately 1.63%. The effects of the currency diversification strategy are reported as components of (1) Other Income (loss of $18 million) and (2) Other Comprehensive Income (loss of $248 million).

This quarter, Other Income also includes a $24 million net gain from our investment in Tiger Brokers, which is comprised of a one-time realized gain of $34 million from the sale of a portion of such investment and a $10 million unrealized loss.

Conference Call Information:

Interactive Brokers Group, Inc. will hold a conference call with investors today, January 21, 2025, at 4:30 p.m. ET to discuss its quarterly results. Members of the public who would like to listen to the conference call should register at https://register.vevent.com/register/BI6ae762cae1c640e587dcb275064fe06c to obtain the dial-in details. The number should be dialed approximately ten minutes prior to the start of the conference call. The conference call will also be accessible simultaneously, and through replays, as an audio webcast through the Investor Relations section of the Interactive Brokers web site, www.interactivebrokers.com/ir.

About Interactive Brokers Group, Inc.:

Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities, foreign exchange, and forecast contracts around the clock on over 150 markets in numerous countries and currencies from a single unified platform to clients worldwide. We serve individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation have enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Interactive Brokers has consistently earned recognition as a top broker, garnering multiple awards and accolades from respected industry sources such as Barron's, Investopedia, Stockbrokers.com, and many others.

Cautionary Note Regarding Forward-Looking Statements:

The foregoing information contains certain forward-looking statements that reflect the Company’s current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company’s operations and business environment which may cause the Company’s actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. Any forward-looking statements in this release are based upon information available to the Company on the date of this release. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the Company’s financial results may be found in the Company’s filings with the Securities and Exchange Commission.

_______________________________________ 1 See the reconciliation of non-GAAP financial measures starting on page 9. 2 Daily average revenue trades (DARTs) are based on customer orders.

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

  Three Months Twelve Months Ended December 31, Ended December 31,

2024

 

2023

 

2024

 

2023

 

(in millions, except share and per share data)   Revenues: Commissions $

477

 

$

348

 

$

1,697

 

$

1,360

 

Other fees and services

81

 

55

 

280

 

197

 

Other income (loss)

22

 

6

 

60

 

(11

)

Total non-interest income

580

 

409

 

2,037

 

1,546

 

  Interest income

1,863

 

1,695

 

7,339

 

6,230

 

Interest expense

(1,056

)

(965

)

(4,191

)

(3,436

)

Total net interest income

807

 

730

 

3,148

 

2,794

 

Total net revenues

1,387

 

1,139

 

5,185

 

4,340

 

  Non-interest expenses: Execution, clearing and distribution fees

115

 

100

 

447

 

386

 

Employee compensation and benefits

138

 

136

 

574

 

527

 

Occupancy, depreciation and amortization

24

 

25

 

101

 

99

 

Communications

10

 

12

 

39

 

41

 

General and administrative

59

 

45

 

314

 

211

 

Customer bad debt

1

 

5

 

15

 

7

 

Total non-interest expenses

347

 

323

 

1,490

 

1,271

 

  Income before income taxes

1,040

 

816

 

3,695

 

3,069

 

Income tax expense

71

 

77

 

288

 

257

 

  Net income

969

 

739

 

3,407

 

2,812

 

Net income attributable to noncontrolling interests

752

 

579

 

2,652

 

2,212

 

  Net income available for common stockholders $

217

 

$

160

 

$

755

 

$

600

 

  Earnings per share: Basic $

2.00

 

$

1.49

 

$

6.99

 

$

5.72

 

Diluted $

1.99

 

$

1.48

 

$

6.93

 

$

5.67

 

  Weighted average common shares outstanding: Basic

108,885,363

 

107,021,836

 

108,112,199

 

104,965,050

 

Diluted

109,683,522

 

107,811,190

 

109,002,938

 

105,846,877

 

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

  Three Months Twelve Months Ended December 31, Ended December 31,

2024

 

2023

2024

 

2023

(in millions, except share and per share data)   Comprehensive income: Net income available for common stockholders $

217

 

$

160

$

755

 

$

600

Other comprehensive income: Cumulative translation adjustment, before income taxes

(64

)

37

(53

)

30

Income taxes related to items of other comprehensive income

-

 

-

-

 

-

Other comprehensive income (loss), net of tax

(64

)

37

(53

)

30

Comprehensive income available for common stockholders $

153

 

$

197

$

702

 

$

630

  Comprehensive earnings per share: Basic $

1.42

 

$

1.84

$

6.50

 

$

6.00

Diluted $

1.41

 

$

1.83

$

6.44

 

$

5.95

  Weighted average common shares outstanding: Basic

108,885,363

 

107,021,836

108,112,199

 

104,965,050

Diluted

109,683,522

 

107,811,190

109,002,938

 

105,846,877

    Comprehensive income attributable to noncontrolling interests: Net income attributable to noncontrolling interests $

752

 

$

579

$

2,652

 

$

2,212

Other comprehensive income - cumulative translation adjustment

(184

)

111

(154

)

92

Comprehensive income attributable to noncontrolling interests $

568

 

$

690

$

2,498

 

$

2,304

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

  December 31,2024 December 31,2023 (in millions)   Assets Cash and cash equivalents $

3,633

$

3,753

Cash - segregated for regulatory purposes

36,600

28,840

Securities - segregated for regulatory purposes

27,846

35,386

Securities borrowed

5,369

5,835

Securities purchased under agreements to resell

6,575

5,504

Financial instruments owned, at fair value

1,924

1,488

Receivables from customers, net of allowance for credit losses

64,432

44,472

Receivables from brokers, dealers and clearing organizations

2,196

1,643

Other assets

1,943

1,502

Total assets $

150,518

$

128,423

  Liabilities and equity   Liabilities Short-term borrowings $

14

$

17

Securities loaned

16,248

11,347

Financial instruments sold but not yet purchased, at fair value

293

193

Other payables: Customers

115,343

101,012

Brokers, dealers and clearing organizations

476

590

Other payables

1,547

1,197

117,366

102,799

Total liabilities

133,921

114,356

  Equity Stockholders' equity

4,280

3,584

Noncontrolling interests

12,317

10,483

Total equity

16,597

14,067

Total liabilities and equity $

150,518

$

128,423

December 31, 2024 December 31, 2023 Ownership of IBG LLC Membership Interests Interests % Interests %   IBG, Inc.

108,931,614

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

422,574,968

100.0

%

421,025,837

100.0

%

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

OPERATING DATA

  EXECUTED ORDER VOLUMES:

(in 000's, except %)

 

 

Customer % Principal % Total %

Period

Orders Change Orders Change Orders Change

2022

532,064

26,966

559,030

2023

483,015

(9

%)

29,712

10

%

512,727

(8

%)

2024

661,666

37

%

63,348

113

%

725,014

41

%

 

4Q2023

120,886

7,932

128,818

4Q2024

196,433

62

%

23,220

193

%

219,653

71

%

 

3Q2024

171,620

17,722

189,342

4Q2024

196,433

14

%

23,220

31

%

219,653

16

%

 

CONTRACT AND SHARE VOLUMES:

(in 000's, except %)

 

TOTAL

 

Options % Futures1 % Stocks %

Period

(contracts) Change (contracts) Change (shares) Change

2022

908,415

207,138

330,035,586

2023

1,020,736

12

%

209,034

1

%

252,742,847

(23

%)

2024

1,344,855

32

%

218,327

4

%

307,489,711

22

%

 

4Q2023

279,945

53,883

59,046,908

4Q2024

371,684

33

%

52,285

(3

%)

97,610,745

65

%

 

3Q2024

344,540

56,825

72,117,769

4Q2024

371,684

8

%

52,285

(8

%)

97,610,745

35

%

 

CUSTOMER

 

Options % Futures1 % Stocks %

Period

(contracts) Change (contracts) Change (shares) Change

2022

873,914

203,933

325,368,714

2023

981,172

12

%

206,073

1

%

248,588,960

(24

%)

2024

1,290,770

32

%

214,864

4

%

302,040,873

22

%

 

4Q2023

269,082

52,996

58,112,082

4Q2024

356,255

32

%

51,662

(3

%)

95,910,447

65

%

 

3Q2024

330,173

56,078

70,751,412

4Q2024

356,255

8

%

51,662

(8

%)

95,910,447

36

%

 

PRINCIPAL

 

Options % Futures1 % Stocks %

Period

(contracts) Change (contracts) Change (shares) Change

2022

34,501

3,205

4,666,872

2023

39,564

15

%

2,961

(8

%)

4,153,887

(11

%)

2024

54,085

37

%

3,463

17

%

5,448,838

31

%

 

4Q2023

10,863

887

934,826

4Q2024

15,429

42

%

623

(30

%)

1,700,298

82

%

 

3Q2024

14,367

747

1,366,357

4Q2024

15,429

7

%

623

(17

%)

1,700,298

24

%

 

1 Includes options on futures

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

OPERATING DATA, CONTINUED

  CUSTOMER STATISTICS   Year over Year

4Q2024

4Q2023

% Change Total Accounts (in thousands)

3,337

2,562

30

%

Customer Equity (in billions)1 $

568.2

$

426.0

33

%

Total Customer DARTs (in thousands)

3,118

1,934

61

%

  Cleared Customers Commission per Cleared Commissionable Order2 $

2.72

$

3.19

(15

%)

Cleared Avg. DARTs per Account (Annualized)

213

172

24

%

  Consecutive Quarters

4Q2024

3Q2024

% Change Total Accounts (in thousands)

3,337

3,120

7

%

Customer Equity (in billions)1 $

568.2

$

541.5

5

%

Total Customer DARTs (in thousands)

3,118

2,703

15

%

  Cleared Customers Commission per Cleared Commissionable Order2 $

2.72

$

2.83

(4

%)

Cleared Avg. DARTs per Account (Annualized)

213

198

8

%

  (1) Excludes non-Customers. (2) Commissionable Order - a customer order that generates commissions.

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

NET INTEREST MARGIN

(UNAUDITED)

  Three Months Twelve Months Ended December 31, Ended December 31,

2024

 

2023

 

2024

 

2023

 

  (in millions) Average interest-earning assets Segregated cash and securities $

65,466

 

$

59,482

 

$

62,117

 

$

59,582

 

Customer margin loans

60,290

 

42,769

 

53,503

 

41,229

 

Securities borrowed

6,089

 

5,185

 

5,899

 

5,315

 

Other interest-earning assets

11,873

 

10,534

 

11,180

 

10,114

 

FDIC sweeps1

4,643

 

3,554

 

4,214

 

3,003

 

$

148,361

 

$

121,524

 

$

136,913

 

$

119,243

 

  Average interest-bearing liabilities Customer credit balances $

114,274

 

$

96,598

 

$

105,840

 

$

96,081

 

Securities loaned

15,268

 

9,922

 

13,737

 

9,518

 

Other interest-bearing liabilities

104

 

1

 

26

 

1

 

$

129,646

 

$

106,521

 

$

119,603

 

$

105,600

 

  Net interest income Segregated cash and securities, net $

747

 

$

760

 

$

3,024

 

$

2,791

 

Customer margin loans2

792

 

631

 

3,012

 

2,278

 

Securities borrowed and loaned, net

25

 

43

 

92

 

276

 

Customer credit balances, net2

(884

)

(866

)

(3,595

)

(3,125

)

Other net interest income1/3

150

 

171

 

690

 

600

 

Net interest income3 $

830

 

$

739

 

$

3,223

 

$

2,820

 

  Net interest margin ("NIM")

2.23

%

2.41

%

2.35

%

2.36

%

  Annualized yields Segregated cash and securities

4.54

%

5.07

%

4.87

%

4.68

%

Customer margin loans

5.23

%

5.85

%

5.63

%

5.53

%

Customer credit balances

3.08

%

3.56

%

3.40

%

3.25

%

   

1

Represents the average amount of customer cash swept into FDIC-insured banks as part of our Insured Bank Deposit Sweep Program. This item is not recorded in the Company's consolidated statements of financial condition. Income derived from program deposits is reported in other net interest income in the table above.  

2

Interest income and interest expense on customer margin loans and customer credit balances, respectively, are calculated on daily cash balances within each customer’s account on a net basis, which may result in an offset of balances across multiple account segments (e.g., between securities and commodities segments).  

3

Includes income from financial instruments that has the same characteristics as interest, but is reported in other fees and services and other income in the Company’s consolidated statements of comprehensive income. For the three and twelve months ended December 31, 2024 and 2023, $8 million, $28 million, $5 million, and $19 million were reported in other fees and services, respectively. For the three and twelve months ended December 31, 2024 and 2023, $15 million, $47 million, $4 million, and $7 million were reported in other income, respectively. INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

  Three Months Twelve Months Ended December 31, Ended December 31,

2024

 

2023

 

2024

 

2023

 

  (in millions)   Adjusted net revenues1 Net revenues - GAAP $

1,387

 

$

1,139

 

$

5,185

 

$

4,340

 

  Non-GAAP adjustments Currency diversification strategy, net

18

 

9

 

15

 

80

 

Mark-to-market on investments2

10

 

8

 

48

 

(46

)

Remeasurement of TRA liability3

9

 

(7

)

9

 

(7

)

Total non-GAAP adjustments

37

 

10

 

72

 

27

 

Adjusted net revenues $

1,424

 

$

1,149

 

$

5,257

 

$

4,367

 

  Adjusted income before income taxes1 Income before income taxes - GAAP $

1,040

 

$

816

 

$

3,695

 

$

3,069

 

  Non-GAAP adjustments Currency diversification strategy, net

18

 

9

 

15

 

80

 

Mark-to-market on investments2

10

 

8

 

48

 

(46

)

Remeasurement of TRA liability3

9

 

(7

)

9

 

(7

)

Bad debt expense4

-

 

5

 

-

 

5

 

Total non-GAAP adjustments

37

 

15

 

72

 

32

 

Adjusted income before income taxes $

1,077

 

$

831

 

$

3,767

 

$

3,101

 

  Adjusted pre-tax profit margin

76

%

72

%

72

%

71

%

Three Months Twelve Months Ended December 31, Ended December 31,

2024

 

2023

 

2024

 

2023

 

  (in millions) Adjusted net income available for common stockholders1 Net income available for common stockholders - GAAP $

217

 

$

160

 

$

755

 

$

600

 

  Non-GAAP adjustments Currency diversification strategy, net

5

 

2

 

4

 

20

 

Mark-to-market on investments2

3

 

2

 

12

 

(12

)

Remeasurement of TRA liability3

9

 

(7

)

9

 

(7

)

Bad debt expense4

-

 

1

 

-

 

1

 

Income tax effect of above adjustments5

(2

)

(1

)

(4

)

(2

)

Remeasurement of deferred income taxes6

(11

)

7

 

(11

)

7

 

Total non-GAAP adjustments

5

 

5

 

11

 

8

 

Adjusted net income available for common stockholders $

222

 

$

164

 

$

766

 

$

608

 

  Note: Amounts may not add due to rounding.   Three Months Twelve Months Ended December 31, Ended December 31,

2024

 

2023

 

2024

 

2023

 

  (in dollars) Adjusted diluted EPS1 Diluted EPS - GAAP $

1.99

 

$

1.48

 

$

6.93

 

$

5.67

 

  Non-GAAP adjustments Currency diversification strategy, net

0.04

 

0.02

 

0.04

 

0.19

 

Mark-to-market on investments2

0.02

 

0.02

 

0.11

 

(0.11

)

Remeasurement of TRA liability3

0.08

 

(0.07

)

0.08

 

(0.07

)

Bad debt expense4

0.00

 

0.01

 

0.00

 

0.01

 

Income tax effect of above adjustments5

(0.02

)

(0.01

)

(0.03

)

(0.01

)

Remeasurement of deferred income taxes6

(0.10

)

0.07

 

(0.10

)

0.07

 

Total non-GAAP adjustments

0.04

 

0.04

 

0.10

 

0.08

 

Adjusted diluted EPS $

2.03

 

$

1.52

 

$

7.03

 

$

5.75

 

  Diluted weighted average common shares outstanding

109,683,522

 

107,811,190

 

109,002,938

 

105,846,877

 

  Note: Amounts may not add due to rounding.

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, our net mark-to-market gains (losses) on investments2, and the remeasurement of our Tax Receivable Agreement (“TRA”) liability3.
• We define adjusted income before income taxes as income before income taxes adjusted to remove the effect of our currency diversification strategy, our net mark-to-market gains (losses) on investments, the remeasurement of our TRA liability, and unusual bad debt expense4.
• 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, our net mark-to-market gains (losses) on investments, the remeasurement of our TRA liability, unusual bad debt expense, and the remeasurement of certain deferred tax assets6.
• 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, our mark-to-market on investments, the remeasurement of our TRA liability, unusual bad debt expense, and the remeasurement of certain deferred tax assets 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 Remeasurement of our TRA liability represents the change in the amount payable to IBG Holdings LLC under the TRA, primarily due to changes in the Company’s effective tax rates. This is related to the remeasurement of the deferred tax assets described below. For further information refer to Note 4 – Equity and Earnings per Share under Part II, Item 8 – Financial Statements and Supplementary Data of the Company’s Annual Report on Form 10-K filed with the Securities Exchange Commission (“SEC”) on February 27, 2024.

4 Unusual bad debt expense consists of a credit loss on a loan not related to margin lending.

5 The income tax effect is estimated using the statutory income tax rates applicable to the Company.

6 Remeasurement of certain deferred tax assets represents the change in the unamortized balance of deferred tax assets related to the step-up in basis arising from the acquisition of interests in IBG LLC, primarily due to changes in the Company’s effective tax rates. For further information refer to Note 4 – Equity and Earnings per Share under Part II, Item 8 – Financial Statements and Supplementary Data of the Company’s Annual Report on Form 10-K filed with the SEC on February 27, 2024.

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For Interactive Brokers Group, Inc. Investors: Nancy Stuebe, investor-relations@ibkr.com or Media: Rob Garfield, media@ibkr.com.