Interactive Brokers posts record Q2, eyes national trust bank charter

 

Interactive Brokers posts record Q2 revenue $1.9B (+28% YoY) and EPS $0.69 (+35% YoY) with 77% pretax margin

• Q2 2026 EPS was $0.69 (+35% YoY) and revenue $1.9B (+28% YoY), beating estimates.
• Record net revenues and pretax income driven by strong commissions and net interest income growth.
• Commissions rose 30% YoY to a record as options, futures and stock volumes increased.
• Net interest income exceeded $1 billion, up 23% YoY, despite lower Fed funds rates.
• Client equity rose 40% YoY to $930 billion; uninvested cash hit a record $182 billion.
• New accounts grew 34% YoY, adding 1.3 million over the last year across all regions.
• Pretax margin remained 77% for the seventh straight quarter above 70%, underscoring operating leverage.
• Excess capital increased to $10.3 billion, with no long-term debt and no near-term M&A.
• Securities lending economics were strong, with estimated related net revenue up 37% YoY.
• AI tools and IBKR Connector are seeing strong early adoption under a cautious, human-in-the-loop model.
• Management remains comfortable with fast-growing margin balances but flags earnings sensitivity to interest-rate cuts.
• Main concern: earnings sensitivity to interest-rate declines and elevated client risk-taking via rapidly growing margin balances.
• Strong quarter, driven by robust client activity, higher balances and continued industry-leading operating efficiency.

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