IBKR Q3 Deep Dive: New Products, International Expansion, and Crypto Initiatives Shape Outlook

Electronic brokerage firm Interactive Brokers (NASDAQ:IBKR) reported revenue ahead of Wall Street’s expectations in Q3 CY2025, with sales up 21.2% year on year to $1.66 billion. Its non-GAAP profit of $0.57 per share was 6.1% above analysts’ consensus estimates.

Is now the time to buy IBKR? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Interactive Brokers delivered third-quarter results that exceeded Wall Street’s revenue and profit expectations, but the market responded negatively. Management highlighted that strong net new account growth, particularly from international clients, and increased trading activity in stocks and options fueled the quarter’s performance. CEO Milan Galik emphasized the “organic account growth” and noted that the company surpassed four million customers and $750 billion in client equity, up 40% year over year. The company also noted robust gains in commission revenue and net interest income driven by higher client balances and securities lending. However, management acknowledged that lower revenues from risk exposure fees, reflecting more cautious client behavior, were a modest offset.

Looking ahead, Interactive Brokers’ management is focused on sustaining account growth through continuous product innovation and global expansion. Key initiatives include the rollout of new country-specific tax-advantaged savings accounts, enhancements in cryptocurrency trading with upcoming stablecoin funding and asset transfers, and growth in forecast contracts beyond U.S. markets. CFO Paul Brody cautioned that declining benchmark interest rates could pressure net interest income, estimating a $77 million annual impact for each 25-basis-point cut in U.S. rates. Management remains committed to investing in technology and operational capacity as needed, with Galik stating, “If we want to do something, we’re fully in,” underscoring a flexible approach to expense management tied to growth opportunities.

Key Insights from Management’s Remarks

Management attributed the quarter’s outperformance to strong organic client growth, increased trading activity, and ongoing product expansion, while also highlighting evolving trends in international markets and digital asset offerings.

• Robust account and asset growth: The company’s client base surpassed four million, with client equity up 40% year over year, reflecting broad-based growth across all geographies and account types.
• Trading volumes and product diversity: Options contract volumes rose 27% and equity trading jumped 67%, with increased activity in emerging products like forecast contracts (prediction markets) and cryptocurrencies.
• Interest income and securities lending: Net interest income benefited from higher client balances and strong securities lending activity, driven in part by more short activity and an expanding inventory of lendable securities, including international assets.
• Lower risk exposure fees: Management noted lower revenues from exposure fees, suggesting clients were more risk-averse and made fewer speculative bets on options, reducing this income stream but improving the risk profile.
• International and product innovation momentum: New offerings such as tax-advantaged savings accounts in Japan and Sweden, the proprietary Connections feature, and expanding crypto trading (including the addition of Solana and recurring buy orders) demonstrate ongoing commitment to innovation and global market relevance.

Drivers of Future Performance

Interactive Brokers’ outlook centers on continued global account growth, technology investment, and sensitivity to changing interest rates, with new product rollouts expected to support client engagement and revenue.

• Crypto and digital asset expansion: Management is preparing for the European launch of crypto trading through Zero Hash, upcoming stablecoin funding, asset transfers, and staking, aiming to capture market share as digital assets become more mainstream. These enhancements are expected to drive new account inflows and diversify revenue.
• Interest rate sensitivity: CFO Paul Brody highlighted that falling benchmark rates in the U.S. and abroad could reduce net interest income, with a 1% decrease in all relevant rates estimated to lower annual net interest income by $417 million. The overall effect may be partially offset by ongoing growth in client balances and platform activity.
• International regulatory and client growth trends: While China’s regulatory environment has restrained account growth from Mainland residents, management continues to see steady new accounts from other regions. Broader international expansion, including localized product offerings and partnerships, remains a strategic focus to sustain momentum.

Catalysts in Upcoming Quarters

Looking forward, the StockStory team will be watching (1) the pace of new account growth and client engagement across international markets, (2) rollout and adoption of new crypto services—particularly in Europe and through asset transfers, and (3) the effect of potential interest rate cuts on net interest income and overall profitability. Developments in regulatory environments, especially in China and for emerging products, will also be important to track.

Interactive Brokers currently trades at $66.21, down from $68.51 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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