IBKR Stock Slides Despite Q3 Earnings Beat, Revenues Rise & Costs Fall

Shares of Interactive Brokers Group IBKR declined 2.6% in the after-market hours despite better-than-expected quarterly results. Its third-quarter 2025 adjusted earnings per share of 57 cents surpassed the Zacks Consensus Estimate of 50 cents. The bottom line reflected a rise of 42.5% from the prior-year quarter.

Results were primarily aided by an increase in revenues and a decline in expenses. Growth in customer accounts and a rise in daily average revenue trades (DARTs) acted as other tailwinds. 

After considering non-recurring items, net income available to common shareholders (GAAP basis) was $263 million or 59 cents per share, up from $184 million or 42 cents per share in the prior-year quarter. Our estimate for net income was $200.7 million.

Interactive Brokers reported comprehensive income available to common shareholders of $253 million or 57 cents per share compared with $223 million or 51 cents per share in the prior-year quarter.

IBKR’s Revenues Improve, Expenses Decline

Total GAAP net revenues for the quarter were $1.66 billion, up 21.2% year over year. Adjusted net revenues were $1.61 billion, up 21.3%. The Zacks Consensus Estimate for the top line was $1.43 billion.

Total non-interest expenses declined 24.8% year over year to $343 million. This fall was primarily due to a decrease in almost all components except employee compensation and benefits and communications costs. Our estimate for non-interest expenses was pegged at $361.3 million.

Income before income taxes was $1.31 billion, up 44.3% year over year.

The adjusted pre-tax profit margin was 79%, up from 66% a year ago.

In the reported quarter, total customer DARTs jumped 33.8% year over year to 3.62 million. Our estimate for the metric was 3.27 million.

Customer accounts grew 32.3% from the year-ago quarter to 4,127,000. Our prediction for customer accounts was 3,720,000.

Strong Capital Position of Interactive Brokers

As of Sept. 30, 2025, cash and cash equivalents (including cash and securities set aside for regulatory purposes) totaled $92.6 billion compared with $68.1 billion as of Dec. 31, 2024.

As of Sept. 30, 2025, total assets were $200.2 billion compared with $150.1 billion as of Dec. 31, 2024. Total equity was $19.5 billion, up from $16.6 billion as of Dec. 31, 2024.

Our View on IBKR

Interactive Brokers' efforts to develop proprietary software and enhance its emerging market customers and global footprint, along with relatively high rates and product suite expansion, are expected to continue aiding revenues. However, rising expenses and high exposure to geopolitical risks overseas are headwinds.

Interactive Brokers Group, Inc. Price, Consensus and EPS Surprise

Interactive Brokers Group, Inc. price-consensus-eps-surprise-chart | Interactive Brokers Group, Inc. Quote

Currently, Interactive Brokers carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Release Dates of IBKR’s Peers

Here are some of IBKR’s peers that are yet to come out with quarterly numbers.

Robinhood Markets HOOD is slated to announce third-quarter 2025 numbers on Nov. 5.

In the past week, the Zacks Consensus Estimate for Robinhood’s quarterly earnings has moved 4.3% higher to 49 cents, implying a 188.2% jump from the prior-year reported number.

Tradeweb Markets TW is also slated to announce third-quarter 2025 results on Oct. 30.

In the past week, the Zacks Consensus Estimate for TW’s quarterly earnings has been revised 2.4% downward to 83 cents, indicating a 10.7% rise from the prior-year reported number.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research