By Staff Writer
Interactive Brokers (IBKR) has reported another strong quarter, with third-quarter 2025 results showing robust growth across revenue, trading activity, and client assets. The brokerage continues to benefit from higher investor participation and elevated interest income, despite broader market volatility.
Total GAAP net revenue rose to $1.66 billion, up 21% from $1.37 billion in the same period last year. Adjusted net revenue reached $1.61 billion, while diluted earnings per share climbed to $0.59, up from $0.42 a year earlier. Pre-tax profit increased to $1.31 billion, maintaining a strong margin of 79%.
The firm saw a sharp rise in equity market activity as both retail and institutional clients took advantage of short-term trading opportunities. Commission revenue jumped 23% year-on-year to $537 million, driven by a 67% increase in stock trading volumes and a 27% rise in options trades. While futures activity dipped by 7%, it had little impact on overall performance.
Interest income continued to be a key growth driver. Net interest income rose 21% to $967 million, supported by larger client credit balances, higher margin loans, and sustained demand in securities lending.
Interactive Brokers also managed to keep expenses well-contained. General and administrative costs fell 59% to $62 million following the removal of last year’s one-off legal and regulatory charges. While advertising spending increased by $10 million as part of its global growth push, execution and clearing fees fell 21%, helped by lower US transaction fees and higher liquidity rebates.
Interactive Brokers’ global client base continues to expand at an impressive rate. The number of customer accounts grew 32% year-on-year to 4.13 million, while client equity surged 40% to $757.5 billion. Margin lending also rose sharply, with customer margin loans up 39% to $77.3 billion, and credit balances up 33% to $154.8 billion.
The firm’s diversified GLOBAL currency basket slightly weighed on results, as US dollar strength trimmed reported earnings by $33 million. Still, IBKR recorded a $4 million gain in other income, partially offsetting the impact.
Interactive Brokers’ board declared a cash dividend of $0.08 per share following the strong quarter, , underscoring continued confidence in the company’s financial position.
