Interactive Brokers (IBKR, Financial) reported a significant increase in both profit and revenue for the first quarter, driven by growth in interest income and trading commissions. The adjusted earnings per share reached $1.88, while GAAP net revenue increased by 19% year-over-year to $1.43 billion, with an adjusted net revenue of $1.4 billion. The pre-tax profit margin slightly increased to 74%.
The growth was primarily due to a surge in client trading activity, with stock trading volume up 47%, options up 25%, and futures up 16%, leading to a 36% rise in commission income to $514 million. Additionally, the average balances of client margin loans and credit accounts increased, boosting net interest income by 3% to $770 million. Execution, clearing, and distribution costs rose by 20% due to higher regulatory costs and increased client activity.
Client accounts grew by 32% year-over-year to 3.62 million, and daily average revenue trades (DARTs) increased by 50% to 3.52 million. Client equity expanded by 23% to $573.5 billion, with credit balances up 19% and margin loan balances up 24%.
To enhance stock liquidity, Interactive Brokers announced a 4-for-1 stock split. Shareholders on record as of June 16, 2025, will receive three additional shares for each share held, with new shares distributed after market close on June 17, and trading at the adjusted price starting June 18.
The company also increased its quarterly dividend from $0.25 to $0.32 per share, payable on June 13 to shareholders of record on May 30. A currency diversification strategy contributed $127 million to comprehensive income, including $20 million in other income and $107 million in other comprehensive income.
