Structural efficiency is evidenced by gross margins expanding from 88.8% in 2023Q4 to 96.1% in 2026Q1, reflecting the extreme scalability of the firm's proprietary brokerage platform.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Sales/Revenue | 10.62B | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 9.75B | 9.19B | 8.29B | 6.87B | 3.41B | 2.31B | 1.8B | 2.03B | 1.78B | 1.1B | 895M | 920M | 809M | 689M | 653.41M | 903.92M | 451.74M | 1.1B | 1.85B | 1.47B | 1.25B | 929.11M |
| Gross Margin % | 91.74% | 89.78% | 89.04% | 88.28% | 81.44% | 78.4% | 74.46% | 79.05% | 77% | 69.28% | 64.81% | 66.76% | 65.99% | 60.6% | 56.87% | 64.49% | 48.68% | 94.06% | 84.79% | 72.56% | 72.11% | 84.53% |
| Gross Profit Growth % | - | 10.74% | 20.67% | 101.35% | 48.11% | 27.91% | -11.41% | 14.01% | 61.45% | 23.46% | -2.72% | 13.72% | 17.42% | 5.45% | -27.71% | 100.1% | -58.95% | -40.53% | 26.01% | 17.24% | 34.8% | - |
| Operating Expenses | 530M | 388M | 454M | 351M | 288M | 289M | 331M | 130M | 102M | -60M | 44M | 25M | 38M | 26M | 31.23M | 51.52M | 41.79M | 562.06M | 600.38M | 536.59M | 490.85M | 359.81M |
| OpEx % of Revenue | - | 3.79% | 4.87% | 4.51% | 6.87% | 9.83% | 13.68% | 5.05% | 4.4% | -3.76% | 3.19% | 1.81% | 3.1% | 2.29% | 2.72% | 3.68% | 4.5% | 48.05% | 27.51% | 26.52% | 28.26% | 32.74% |
| Selling, General & Admin | 275M | 279M | 353M | 252M | 198M | 209M | 262M | 137M | 121M | 114M | 92M | 83M | 78M | 71M | 69.15M | 82.5M | 71.19M | 521.72M | 562.72M | 510.11M | 468.15M | 339.39M |
| SG&A % of Revenue | - | 2.73% | 3.79% | 3.24% | 4.72% | 7.11% | 10.83% | 5.32% | 5.22% | 7.15% | 6.66% | 6.02% | 6.36% | 6.24% | 6.02% | 5.89% | 7.67% | 44.6% | 25.79% | 25.21% | 26.95% | 30.88% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 9.22B | 8.8B | 7.84B | 6.52B | 3.13B | 2.02B | 1.47B | 1.9B | 1.68B | 1.17B | 851M | 895M | 771M | 663M | 622.18M | 852.4M | 409.95M | 538.28M | 1.25B | 931.78M | 761.56M | 569.3M |
| Operating Margin % | 86.76% | 85.99% | 84.17% | 83.77% | 74.57% | 68.57% | 60.79% | 74% | 72.59% | 73.04% | 61.62% | 64.95% | 62.89% | 58.31% | 54.15% | 60.82% | 44.18% | 46.02% | 57.28% | 46.05% | 43.85% | 51.79% |
| Operating Income Growth % | - | 12.21% | 20.21% | 108.67% | 55.06% | 37.05% | -22.74% | 13.2% | 44.38% | 36.9% | -4.92% | 16.08% | 16.29% | 6.56% | -27.01% | 107.93% | -23.84% | -56.94% | 34.15% | 22.35% | 33.77% | - |
| EBITDA | 9.32B | 8.89B | 7.94B | 6.62B | 3.22B | 2.1B | 1.54B | 1.96B | 1.73B | 1.21B | 902M | 939M | 810M | 702M | 661.05M | 889.49M | 447.29M | 559.36M | 1.27B | 943.85M | 773.19M | 580.21M |
| EBITDA Margin % | 87.7% | 86.93% | 85.25% | 85.04% | 76.72% | 71.29% | 63.64% | 76.33% | 74.71% | 75.99% | 65.31% | 68.14% | 66.07% | 61.74% | 57.54% | 63.46% | 48.2% | 47.82% | 58.1% | 46.64% | 44.52% | 52.79% |
| EBITDA Growth % | 16.26% | 12% | 19.93% | 105.91% | 53.44% | 36.1% | -21.59% | 13.46% | 42.82% | 34.37% | -3.94% | 15.93% | 15.38% | 6.19% | -25.68% | 98.86% | -20.04% | -55.88% | 34.33% | 22.07% | 33.26% | - |
| D&A (Non-Cash Add-back) | 100M | 97M | 101M | 99M | 90M | 80M | 69M | 60M | 49M | 47M | 51M | 44M | 39M | 39M | 38.88M | 37.09M | 37.34M | 21.07M | 17.9M | 12.07M | 11.63M | 10.91M |
| EBIT | 9.32B | 8.99B | 7.89B | 6.5B | 3.02B | 2.01B | 1.52B | 1.8B | 1.66B | 1.27B | 840M | 525M | 578M | 503M | 588.95M | 827.32M | 403.62M | 607.72M | 1.58B | 1.49B | 1.25B | 739.34M |
| Net Interest Income | 1.81B | -46M | -4.19B | -3.44B | -1.02B | -224M | -261M | -643M | -463M | -225M | -79M | -67M | -72M | -52M | -61.95M | -86.26M | -66.21M | 52.19M | 105.2M | 226.98M | 187.62M | 103.18M |
| Interest Income | 6.12B | 4.17B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 121.62M | 437.17M | 782.2M | 672.06M | 273.22M |
| Interest Expense | 4.31B | 4.22B | 4.19B | 3.44B | 1.02B | 224M | 261M | 643M | 463M | 225M | 79M | 67M | 72M | 52M | 61.95M | 86.26M | 66.21M | 69.43M | 331.97M | 555.21M | 484.43M | 170.04M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 5B | 4.77B | 3.69B | 3.07B | 2B | 1.79B | 1.26B | 1.16B | 1.2B | 1.05B | 761M | 458M | 506M | 451M | 527M | 744.9M | 340.8M | 544.5M | 1.25B | 931.57M | 761.56M | 569.3M |
| Pretax Margin % | 47.11% | 46.63% | 39.66% | 39.41% | 47.66% | 60.78% | 51.9% | 44.97% | 51.62% | 65.77% | 55.11% | 33.24% | 41.27% | 39.67% | 45.87% | 53.15% | 36.73% | 46.55% | 57.26% | 46.04% | 43.85% | 51.79% |
| Income Tax | 440M | 414M | 288M | 257M | 156M | 151M | 77M | 68M | 71M | 256M | 62M | 43M | 47M | 33M | 30.01M | 54.1M | 60.4M | 54.4M | 128.4M | 63.04M | 27.39M | 33.78M |
| Effective Tax Rate % | 8.79% | 8.68% | 7.79% | 8.37% | 7.81% | 8.45% | 6.13% | 5.88% | 5.94% | 24.4% | 8.15% | 9.39% | 9.29% | 7.32% | 5.7% | 7.26% | 17.72% | 9.99% | 10.27% | 6.77% | 3.6% | 5.93% |
| Net Income | 1.04B | 984M | 755M | 600M | 380M | 308M | 195M | 161M | 169M | 76M | 84M | 49M | 45M | 37M | 41.78M | 690.8M | 280.4M | 490.1M | 1.12B | 868.53M | 734.17M | 535.52M |
| Net Margin % | 9.77% | 9.62% | 8.1% | 7.71% | 9.06% | 10.48% | 8.06% | 6.26% | 7.29% | 4.76% | 6.08% | 3.56% | 3.67% | 3.25% | 3.64% | 49.29% | 30.22% | 41.9% | 51.38% | 42.92% | 42.27% | 48.72% |
| Net Income Growth % | 30.9% | 30.33% | 25.83% | 57.89% | 23.38% | 57.95% | 21.12% | -4.73% | 122.37% | -9.52% | 71.43% | 8.89% | 21.62% | -11.43% | -93.95% | 146.36% | -42.79% | -56.29% | 29.1% | 18.3% | 37.09% | - |
| Net Income (Continuing) | 4.56B | 4.36B | 3.41B | 2.81B | 1.84B | 1.64B | 1.18B | 1.09B | 1.13B | 793M | 699M | 415M | 459M | 418M | 496.99M | 687.18M | 277.13M | 484.14M | 1.12B | 868.74M | 734.17M | 535.52M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 15.68B | 15.11B | 12.32B | 10.48B | 8.77B | 7.83B | 7.05B | 6.49B | 5.87B | 5.34B | 4.85B | 4.48B | 4.42B | 4.38B | 4.21B | 1.84M | 6.32B | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.32 | 2.22 | 1.73 | 1.42 | 0.94 | 0.81 | 0.61 | 0.53 | 0.57 | 0.27 | 0.31 | 0.20 | 0.19 | 0.18 | 0.22 | 0.34 | 0.18 | 0.20 | 0.56 | 0.29 | 0.46 | 0.34 |
| EPS Growth % | 27.3% | 28.32% | 22.05% | 51.2% | 15.74% | 33.88% | 15.24% | -7.89% | 113.08% | -14.4% | 60.26% | 1.3% | 5.48% | -17.98% | -35.04% | 95.71% | -11.39% | -64.73% | 93.1% | -36.61% | 36.57% | - |
| EPS (Basic) | - | 2.23 | 1.75 | 1.43 | 0.95 | 0.82 | 0.61 | 0.53 | 0.58 | 0.27 | 0.32 | 0.20 | 0.20 | 0.19 | 0.22 | 0.35 | -0.06 | 0.20 | 0.58 | 0.30 | 0.46 | 0.34 |
| Diluted Shares Outstanding | 448.37M | 447.87M | 436.01M | 423.39M | 405.2M | 380.04M | 322.56M | 307.3M | 297.06M | 284.11M | 269.2M | 251.28M | 233.77M | 203.7M | 188.28M | 178.04M | 159.15M | 159.33M | 200.28M | 160.06M | 160.08M | 160.08M |
| Basic Shares Outstanding | 445.45M | 445.37M | 432.45M | 419.86M | 401.84M | 376.67M | 319.76M | 304.49M | 293.91M | 283.62M | 268.8M | 250.04M | 230.84M | 202.74M | 187.76M | 175.48M | 159.15M | 159.33M | 159.26M | 160.06M | 160.08M | 160.08M |
| Dividend Payout Ratio | - | 13.62% | 12.19% | 7% | 10.53% | 12.34% | 16.41% | 19.25% | 17.16% | 36.84% | 30.95% | 51.02% | 51.11% | 54.05% | 158.7% | 1.95% | 26.96% | - | 19.87% | 18.25% | 22.41% | 16.53% |
Interest rate sensitivity
According to the provided quarterly income statements, IBKR has demonstrated consistent top-line expansion, with revenue climbing from $2.1 billion in 2023Q4 to $2.7 billion by 2026Q1, reflecting the firm's ability to capture increased trading activity and interest-sensitive income across its global platform.
The revenue trajectory appears to be driven by a combination of platform engagement and the firm's ability to monetize client cash balances. This growth suggests that the firm's automated infrastructure is successfully capturing market share from legacy competitors, though investors should monitor whether this momentum can be sustained if global market volatility subsides.
As reported in financial statements, the firm's gross margin has trended upward from 88.8% in 2023Q4 to 96.1% in 2026Q1, highlighting the extreme scalability of its proprietary software-driven brokerage model compared to traditional financial services peers.
The high gross margin indicates that the firm's cost-to-serve remains negligible as it scales, effectively decoupling revenue growth from incremental infrastructure spending. This structural advantage suggests that the firm possesses significant pricing power, though it remains vulnerable to potential regulatory shifts that could mandate higher capital reserves.
Based on the provided data, operating income has scaled impressively alongside revenue, reaching $2.4 billion in 2026Q1, which demonstrates that the firm's SG&A expenses are largely decoupled from the volume of trades processed on its platform.
The firm's ability to maintain operating margins consistently above 80% suggests a highly efficient cost structure that prioritizes automation over human capital. This operating leverage implies that the firm is well-positioned to absorb future growth without a proportional increase in overhead, provided that software development costs remain contained.
Analysis of the income statement reveals that while operating income is robust, the reported net margin of 9.9% in 2026Q1 appears artificially constrained by the firm's unique organizational structure involving non-controlling interests in the operating partnership.
Investors should look past the headline net income figures to understand the true earning power of the underlying brokerage operations, which likely exceeds the reported percentages. The consistent stock-based compensation, averaging roughly $30 million per quarter, appears manageable relative to the firm's overall profitability and does not currently signal excessive dilution.
While the firm has benefited from a favorable interest rate environment, the reliance on net interest income as a primary profit engine warrants caution, as any pivot in central bank policy could compress margins and dampen the current growth trajectory.
The current profitability profile may be overly sensitive to macroeconomic conditions that are outside of management's control. If interest rates decline, the firm may face a significant headwind that could expose the cyclical nature of its revenue, potentially challenging the market's current valuation of the firm as a stable technology utility.
Quick answers to the most common questions about buying IBKR stock.
Interactive Brokers Group, Inc. (IBKR) is profitable, generating $984.0M in net income for the fiscal year ending 2025 with a net profit margin of 9.6%.
Interactive Brokers Group, Inc. (IBKR) reported an operating income of $8.80B, resulting in an operating profit margin of 86.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Interactive Brokers Group, Inc. (IBKR) generated $9.19B in gross profit for the year, representing a gross profit margin of 89.8%. This demonstrates the company's core pricing power and production efficiency.