📊 IBKR Key Takeaways
Is Interactive Brokers Group, Inc. (IBKR) a Good Investment?
Interactive Brokers exhibits strong cash generation (15.8B operating/free cash flow) and fortress balance sheet (zero long-term debt), but faces material headwinds with 31.5% revenue decline and 77.4% net income decline YoY, indicating cyclical pressures in the brokerage sector that require monitoring before establishing conviction.
IBKR shows strong structural profitability and capital discipline, with high ROE, minimal balance sheet debt, and massive operating cash generation typical of a capital-light brokerage. However, fundamentals are mixed: revenue fell sharply and net income contracted materially YoY, while reported operating margin appears distorted relative to revenue, suggesting volatility from rate-sensitive net interest income and reporting nuances. Maintain a neutral stance pending clearer trajectory in core earnings drivers.
Why Buy Interactive Brokers Group, Inc. Stock? IBKR Key Strengths
- Exceptional free cash flow generation of 15.8B with 648% FCF margin, indicating strong underlying cash earnings power
- Fortress balance sheet with zero long-term debt and substantial liquidity (5.0B cash) relative to liabilities
- Respectable net margin of 40.3% and ROE of 18.3% despite significant revenue headwinds, suggesting operational resilience
- Robust ROE with minimal leverage and ample cash
- Strong operating cash flow supporting resilience and reinvestment
- Scale efficiencies and low-cost model underpin high margins
IBKR Stock Risks: Interactive Brokers Group, Inc. Investment Risks
- Severe revenue contraction of 31.5% YoY and net income decline of 77.4% YoY signals material cyclical pressures in trading volumes or interest rate environment
- Highly leveraged capital structure with liabilities (182.8B) representing 33.8x stockholders equity (5.4B), typical but risky for brokerage during market stress
- Very low ROA of 0.5% despite high profitability indicates asset-heavy model vulnerable to revenue disruption; unclear if declines are temporary or structural
- Earnings sensitivity to interest rates and client trading activity
- Reporting complexity/atypical margins can obscure underlying trends
- Regulatory and liquidity requirements tied to large client balances
Key Metrics to Watch
- Revenue growth stabilization and sequential trends next quarter (early indicator of recovery)
- Operating leverage recovery and whether 195.5% operating margin normalizes as revenue base returns
- Free cash flow sustainability and customer asset levels as proxy for trading activity normalization
- Net interest income (NIM) trend
- Customer equity and DARTs (activity)
Interactive Brokers Group, Inc. (IBKR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 648.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
IBKR Profit Margin, ROE & Profitability Analysis
IBKR vs Finance Sector: How Interactive Brokers Group, Inc. Compares
How Interactive Brokers Group, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Interactive Brokers Group, Inc. Stock Overvalued? IBKR Valuation Analysis 2026
Based on fundamental analysis, Interactive Brokers Group, Inc. appears fundamentally strong relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Interactive Brokers Group, Inc. Balance Sheet: IBKR Debt, Cash & Liquidity
IBKR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Interactive Brokers Group, Inc.'s revenue has grown significantly by 56% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.42 reflects profitable operations.
IBKR Revenue Growth, EPS Growth & YoY Performance
IBKR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $507.0M | $834.0M | $0.42 |
| Q2 2025 | $474.0M | $809.0M | $0.41 |
| Q1 2025 | $438.0M | $795.0M | $1.61 |
| Q3 2024 | $385.0M | $772.0M | $1.56 |
| Q2 2024 | $369.0M | $601.0M | $1.20 |
| Q1 2024 | $400.0M | $700.0M | $1.42 |
| Q3 2023 | $365.0M | $483.0M | $0.97 |
| Q2 2023 | $365.0M | $360.0M | $0.72 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Interactive Brokers Group, Inc. Dividends, Buybacks & Capital Allocation
IBKR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Interactive Brokers Group, Inc. (CIK: 0001381197)
📋 Recent SEC Filings
❓ Frequently Asked Questions about IBKR
What is the AI rating for IBKR?
Interactive Brokers Group, Inc. (IBKR) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 62% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are IBKR's key strengths?
Claude: Exceptional free cash flow generation of 15.8B with 648% FCF margin, indicating strong underlying cash earnings power. Fortress balance sheet with zero long-term debt and substantial liquidity (5.0B cash) relative to liabilities. ChatGPT: Robust ROE with minimal leverage and ample cash. Strong operating cash flow supporting resilience and reinvestment.
What are the risks of investing in IBKR?
Claude: Severe revenue contraction of 31.5% YoY and net income decline of 77.4% YoY signals material cyclical pressures in trading volumes or interest rate environment. Highly leveraged capital structure with liabilities (182.8B) representing 33.8x stockholders equity (5.4B), typical but risky for brokerage during market stress. ChatGPT: Earnings sensitivity to interest rates and client trading activity. Reporting complexity/atypical margins can obscure underlying trends.
What is IBKR's revenue and growth?
Interactive Brokers Group, Inc. reported revenue of $2.4B.
Does IBKR pay dividends?
Interactive Brokers Group, Inc. pays dividends, with $134.0M distributed to shareholders in the trailing twelve months.
Where can I find IBKR SEC filings?
Official SEC filings for Interactive Brokers Group, Inc. (CIK: 0001381197) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is IBKR's EPS?
Interactive Brokers Group, Inc. has a diluted EPS of $2.22.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is IBKR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Interactive Brokers Group, Inc. has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is IBKR stock overvalued or undervalued?
Valuation metrics for IBKR: ROE of 18.3% (sector avg: 12%), net margin of 40.3% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy IBKR stock in 2026?
Our dual AI analysis gives Interactive Brokers Group, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is IBKR's free cash flow?
Interactive Brokers Group, Inc.'s operating cash flow is $15.8B, with capital expenditures of N/A. FCF margin is 648.0%.
How does IBKR compare to other Finance stocks?
Vs Finance sector averages: Net margin 40.3% (avg: 25%), ROE 18.3% (avg: 12%), current ratio N/A (avg: 1.2).