IBKR Filings — Interactive Brokers Group, Inc. - FilingSpy
IBKR
Interactive Brokers Group, Inc.
An automated electronic brokerage serving individual investors, advisors, and hedge funds, Interactive Brokers lets clients trade stocks, options, futures, forex, bonds, and crypto from one platform through tiers like IBKR Pro and commission-free IBKR Lite. It traces back to Hungarian immigrant Thomas Peterffy, who started as a market maker in 1977 and later turned his Timber Hill trading systems into an outside brokerage in 1993. A technology pioneer, Peterffy built what is considered the first handheld computer for trading floors.
Revenue rose 28% to $1.90B as commissions grew 30% and customer accounts passed 5 million.
Customer accounts rose past 5 million, up 34% from a year ago. rose 28% to $1.90B and widened 2.2 points to 76.8%, driven by a 30% increase in commissions on higher trading volumes and a 23% rise in . The company added over 800,000 accounts in the quarter, but the re-initiation of SEC transaction fees pushed execution costs higher.
Key takeaways
Commission grew 30% to $673M, the primary driver of the quarter, as customer options, stock, and futures volumes rose 17%, 14%, and 2%, respectively.
increased 23% to $1.06B, fueled by higher average customer margin loans and credit balances, partially offset by lower benchmark rates.
Customer accounts grew 34% to 5.2 million, and customer equity increased 40% to $930.3B, continuing the multi-year expansion trend.
Section summaries
Management's Discussion and Analysis
Net revenues rose 28% to $1.90B on higher trading volumes and net interest income, with a 77% pretax margin.
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Commission grew 30% to $673M, driven by 17%, 14%, and 2% increases in customer options, stock, and futures volumes, respectively.
increased 23% to $1.06B, fueled by higher average customer margin loans and credit balances, partially offset by lower benchmark rates.
Execution, clearing and distribution fees rose 22% to $142M, primarily due to a $19M increase in regulatory fees from the re-initiation of SEC Section 31 transaction fees.
Pretax profit margin reached 77%, and widened to 76.8%, as total non-interest expenses grew at a slower pace than the 28% increase.
Total equity reached $22.3B, with 99% of $247.3B in total assets considered liquid, and the company held no variable-rate debt.
What changed
The re-initiation of SEC Section 31 transaction fees reversed a from Q3 2025 and Q1 2026, when the fee rate was zero, causing execution, clearing and distribution fees to rise 22% to $142M.
Commission growth accelerated to 30% from 19% in Q1 2026, confirming the volume recovery flagged in prior quarters, though futures volume growth slowed to 2% from 16%.
growth accelerated to 23% from 17% in Q1 2026, despite lower benchmark rates, as customer balances continued to expand.
The annualized sensitivity to a 0.25% rate shift decreased to $81M from $82M in Q1 2026, reflecting a shift in the balance mix.
What to watch
Q3 2026 commission to confirm the 30% growth rate holds as options and stock volumes continue to rise.
Q3 2026 execution, clearing and distribution fees to see if the $142M level persists with the restored SEC Section 31 fee.
Q3 2026 as a 0.25% rate shift moves annualized NII $81M against the $108.9B margin loan book.
Any disclosed DOJ AML resolution or material regulatory fine, as the company continues to flag the risk of increasing fines.
Execution, clearing and distribution fees rose 22% to $142M, primarily due to a $19M increase in regulatory fees from the re-initiation of SEC Section 31 transaction fees.
Customer accounts grew 34% to 5.2 million, and customer equity increased 40% to $930.3B.
Total equity reached $22.3B, with 99% of $247.3B in total assets considered liquid.
Quantitative and Qualitative Disclosures About Market Risk
Market risk arises mainly from automated market making, foreign currency exposure managed via a currency basket, and interest rate sensitivity on customer balances.
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The substantial majority of is generated by remaining automated market making activities, which use a proprietary pricing model to rebalance positions in real time.
Foreign currency exposure is actively managed by holding equity in a diversified basket of currencies (GLOBAL) rather than hedging to the U.S. dollar; approximately 25% of equity was non-USD as of June 30, 2026.
A 0.25% parallel increase in U.S. dollar interest rates would increase annualized by $81 million, while a similar decrease would reduce it by $81 million, based on June 30, 2026 balances.
The company had no variable-rate debt outstanding as of June 30, 2026, and manages interest rate risk on customer cash by investing in short-term U.S. government securities.
Margin loan exposure ($108.9 billion outstanding) is mitigated by real-time automated margining and liquidation, though risk is unlimited and not quantifiable.
Fixed income risk is measured via stress tests applying parallel shifts (e.g., +/-50 for U.S. government securities), while VaR for other positions uses a 99% confidence historical simulation.
There have been no material changes to the legal proceedings disclosed under Part 1, Item 3 of our Annual Report on Form 10-K filed with the SEC on February 27, 2026, except as updated in Note 13 - “Commitments, Contingencies, and Guarantees” to the unaudited condensed consolida…
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There have been no material changes to the legal proceedings disclosed under Part 1, Item 3 of our Annual Report on Form 10-K filed with the SEC on February 27, 2026, except as updated in Note 13 - “Commitments, Contingencies, and Guarantees” to the unaudited condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.
There have been no material changes to the risk factors disclosed in Part 1, Item 1A of our Annual Report on Form 10-K filed with the SEC on February 27, 2026.
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There have been no material changes to the risk factors disclosed in Part 1, Item 1A of our Annual Report on Form 10-K filed with the SEC on February 27, 2026.