IBKR Shares Surge 31.9% in a Year: Is There Further Upside Left?

Interactive Brokers Group, Inc.’s IBKR shares have jumped 31.9%  in the past year, outperforming the industry’s 25.4% growth and the S&P 500 index’s 16.7% rise. In the same time frame, IBKR’s peers, Robinhood Markets, Inc. HOOD and LPL Financial Holdings Inc. LPLA have gained 47.2% and 5.2% respectively.

Price Performance
 

In August 2025, the company became part of the S&P 500 index. Additionally, last year, the operating backdrop was favorable for trading activities, given the several macroeconomic developments and geopolitical concerns. As such, IBKR’s performance was impressive as it witnessed a surge in customer accounts and a rise in daily average revenue trades (DARTs). This resulted in a 22% increase in commissions.

Does Interactive Brokers stock still have upside potential after showing robust strength over the past year? Let’s find out.

What’s Driving IBKR’s Stock Performance?

Technology-Driven Advantage: Technological excellence is the primary growth driver of Interactive Brokers. Its technology-driven platform keeps compensation expenses low relative to net revenues (10.1% in 2025), enabling tight cost control, strong operating leverage and sustained growth.

IBKR’s consistent efforts to build proprietary software to automate broker-dealer functions support steady revenue growth. As a result, total net revenues recorded a strong compound annual growth rate (CAGR) of 22.8% over the past five years (2020–2025). Looking ahead, total net revenues are expected to continue rising, supported by solid DART trends and a robust trading backdrop.

Diversified Product Line: Interactive Brokers has been actively expanding and diversifying its product offerings to enhance its market presence and broaden its client base. This January, the company enabled eligible clients to fund their brokerage accounts using stablecoins, allowing near-instant, 24/7 transfers and faster access to global markets. In October 2025, it introduced the Karta Visa card, linking everyday spending directly to IBKR accounts. In August 2025, it launched Connections, a feature that helps investors identify and evaluate trading ideas across global markets. The company also launched zero-commission U.S. stock trading in Singapore and NISA accounts to support tax-free investing for Japanese clients.

In May 2025, it extended the trading hours for Forecast Contracts to nearly 24 hours a day, while in April, it launched the prediction markets hub in Canada. It also expanded access through Plan d’Epargne en Actions accounts for French investors and introduced the IBKR Global Trader for global stock trading. 

The company pioneered near-24-hour Overnight Trading for U.S. stocks and ETFs, launched commission-free IBKR Lite, and introduced the Impact Dashboard, IBKR Desktop platform, and low-cost cryptocurrency trading via Paxos Trust Company. Collectively, these initiatives are expected to diversify the revenue mix and keep driving the top line.

Likewise, HOOD is accelerating growth through product diversification. Its business expansionary efforts will continue to deepen the company’s global presence and aid its financials.

Global Expansion Strategy: Interactive Brokers has continuously been making efforts to expand its global footprint. By adding access to more global exchanges and entering new regions, the company benefits from rising cross-border investing and growing wealth in emerging markets. In December 2025, the company enabled eligible clients outside Brazil to trade Brazilian equities via B3, broadening access to Latin American markets. It also added United Arab Emirates equities, allowing clients worldwide to trade on the Abu Dhabi Securities Exchange and the Dubai Financial Market.
 
IBKR is also actively exploring growth opportunities in high-potential emerging markets such as Taiwan, Mexico and India. It also extended market access in Southeast Asia by enabling trading on Bursa Malaysia. In 2023, Interactive Brokers launched crypto trading in the U.K. after becoming the first SFC-licensed broker to allow retail crypto trading in Hong Kong.

This geographic diversity fuels account growth and helps smooth revenues across different market cycles.

Impressive Capital Distributions: Interactive Brokers has a long track record of consistent dividend payments and has accelerated dividend growth over the past two years. In April 2025, the company raised its quarterly dividend by 28%, following a sharp 150% increase in 2024. The company has increased its dividend twice in the past five years. Currently, IBKR has a dividend payout ratio of 15%. 

Similarly, LPLA increased its dividend once in the past five years with an annualized dividend growth rate of 5.41%. Currently, it offers a dividend payout ratio of 6%.

IBKR also implemented a four-for-one forward stock split in June 2025 to improve share affordability and broaden investor access.

A Few Risks Prevail for IBKR

Rising Non-Interest Expenses: IBKR has been experiencing a persistent increase in non-interest expenses over the past few years. The metric witnessed a CAGR of 8.3% over the last five years (2020-2025). This increase has been mainly due to higher execution, clearing and distribution fees. Ongoing investments in its franchise, along with new product launches and continued technology upgrades, are likely to keep expense levels elevated in the near term.

High Exposure on Overseas Markets: Interactive Brokers has a broad global presence and derives more than 35% of its total net revenues from overseas markets. While this geographic diversification supports growth, it also exposes the company to risks related to regulatory and political changes, currency fluctuations, and varying economic conditions across local markets, which could weigh on financial performance.

Final Thoughts on IBKR Stock

Overall, Interactive Brokers appears well-positioned for continued growth, supported by its technology-driven cost efficiency, diversified product offerings, expanding global footprint, and strong capital return track record. On the other hand, rising non-interest expenses and high exposure to overseas markets remain key risks.

Over the past 30 days, the Zacks Consensus Estimate for the company’s 2026 and 2027 earnings has moved upward. This implies that analysts are optimistic regarding IBKR’s earnings growth potential. The estimates indicate year-over-year growth rates of 7.3% and 6.7% for 2026 and 2027, respectively. 

Earnings Estimates Trend
 

While solid revenue momentum, operating leverage, and a favorable trading environment position IBKR for long-term growth, changes in the macroeconomic scenario need to be taken into consideration before taking any investment decision.

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

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

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