Interactive Brokers grew Q3 revenue and EPS on bigger client balances and margin loans, while trading activity was mixed and the pretax margin slipped. The release points to strong franchise growth, but not to broad-based volume strength or to cash-flow quality yet 8-K8-K8-K.
Interactive Brokers Group, Inc. · Q3 2026 · Reported 15 Oct 2026 · US
Key figures
USD | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Net revenues | 1.914bn | 1.655bn | +15.6% |
Net interest income | 1.154bn | 0.967bn | +19.3% |
Commission revenue | 602m | 537m | +12.1% |
Income before income taxes | 1.496bn | 1.312bn | +14.0% |
Diluted EPS | 0.69 | 0.59 | +16.9% |
Pretax margin | 78% | 79% | -1 pp |
Customer accounts | 5.58m | 4.13m | +35% |
Customer equity | 964.7bn | 758bn | +27% |
Customer margin loans | 105.2bn | 77.4bn | +36% |
Customer credits | 186.2bn | 155.2bn | +20% |
Total DARTs | 4.27m | 3.62m | +18% |
Figures in USD. Financial results are GAAP unless otherwise stated. Customer margin loans and customer credits are period-end operating metrics. Pretax margin is as reported.
Net interest income did most of the work
Net revenues rose 15.1% to $1.91 billion, while income before income taxes increased to $1.50 billion from $1.31 billion and GAAP diluted EPS rose to $0.69 from $0.59 8-K8-K. The main driver was net interest income, up 19% to $1.15 billion, which management attributed primarily to higher average customer margin loans and customer credit balances 8-K.
That balance-led growth is consistent with the operating data: customer margin loans increased 36% to $105.2 billion, customer credits rose 20% to $186.2 billion, customer equity increased 27% to $964.7 billion, and accounts grew 35% to 5.58 million 8-K. The release also shows net interest margin fell to 1.99% from 2.16%, suggesting IBKR offset lower asset and liability yields with larger balances rather than with better spread capture 8-K.
Trading revenue improved, but the volume mix was uneven
Commission revenue increased 12% to $602 million on 18% higher DARTs and higher regulatory fees passed through to customers 8-K. But the underlying trading mix was not uniformly stronger: customer futures volume increased 13%, while stocks and options volumes decreased 24% and 1%, respectively 8-K.
Costs tied to activity rose faster in at least one important line. Execution, clearing and distribution fees increased 46% to $134 million, mainly because of a $30 million increase in regulatory fees due to a higher SEC Section 31 transaction fee rate, and pretax margin edged down to 78% from 79% 8-K. That matters because some of the commission growth came with a matching pass-through cost rather than purely higher unit economics 8-K.
Adjusted results were close to GAAP, but other income was noisier
The company-defined adjusted figures were not far from reported results: adjusted net revenues were $1.87 billion versus GAAP net revenues of $1.91 billion, and adjusted diluted EPS was $0.67 versus GAAP diluted EPS of $0.69 8-K. The reconciliation shows the main adjustments were the currency diversification strategy and mark-to-market on investments 8-K8-K.
Other income decreased 18% to $70 million, mainly reflecting $50 million from investing activities, partly offset by a $36 million increase from the currency diversification strategy 8-K. The release also says that strategy reduced comprehensive earnings by $4 million, with a $40 million gain in other income and a $44 million loss in other comprehensive income, which reinforces that below-the-line and valuation effects still add noise around the core brokerage earnings picture 8-K.
What to watch next
Whether account, customer equity and margin-loan growth can continue driving net interest income as net interest margin has fallen to 1.99% from 2.16% 8-K.
Whether commission growth remains durable if stock and options volumes stay weak and pass-through regulatory fees continue to inflate both revenue and execution costs 8-K8-K.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.