Interactive Brokers' Q2 Revenue Climbs to $1.9 Billion as Client Accounts Reach 5.2 Million

Interactive Brokers Group reported higher profit and revenue for the second quarter on Tuesday, July 21, driven by growth in customer accounts, trading activity, and margin lending. The Greenwich, Connecticut-based automated broker posted net revenue of $1.90 billion for the three months through June, up 28% from $1.48 billion a year earlier. Diluted earnings per share rose to $0.69 from $0.51, and pretax income climbed 32% to $1.46 billion, with a pretax margin of 77%.

Customer accounts reached 5.19 million at quarter-end, up 34% year over year and 9% from the prior quarter. Customer equity totaled $930.3 billion, up 40% annually and 18% sequentially. Commission revenue advanced 30% to $673 million, helped by a 17% increase in options volume, 14% growth in stock volume, and a 2% gain in futures volume. Daily average revenue trades rose 36% to 4.82 million. Commission per cleared order was nearly flat at $2.64, compared with $2.65 a year earlier.

Net interest income, the firm's largest revenue source, increased 23% to $1.06 billion, reflecting higher average customer margin loans and credit balances. Margin loans ended the quarter at $108.5 billion, up 67%, while customer credit balances rose 27% to $182.4 billion. However, net interest margin slipped to 1.93% from 2.07% a year earlier. The yield on customer margin loans fell to 4.10% from 4.67%, and the yield on segregated cash and securities dropped to 3.32% from 3.86%, indicating that balance growth rather than pricing drove the interest income gain.

To sustain engagement, Interactive Brokers has expanded its product lineup over the past year, bundling Kalshi, CME and ForecastEx prediction-market contracts into one interface and adding AI trading tools from ChatGPT and Grok for options and futures traders. The company also noted that its active-trader and institutional client base has kept trading through the quarter, in contrast to peer Robinhood, which reported slower first-quarter revenue growth and a decline in crypto trading volumes.

The board declared a quarterly dividend of $0.0875 per share, unchanged from the prior quarter, payable September 14 to shareholders of record on September 1. Total equity stood at $22.3 billion at the end of June. The firm's GLOBAL currency basket trimmed comprehensive earnings by $36 million as the dollar value of the basket fell about 0.21%, a reversal from early 2025 when it added $127 million. Reported net income was $1.34 billion, of which $1.03 billion was attributable to noncontrolling interests, leaving $312 million for common shareholders.