Interactive Brokers (IBKR) Stock Rises as Q1 Earnings Blows Past Records

TLDR

• Interactive Brokers posted record Q1 net revenues, with commission revenue topping $600 million for the first time, up 19% year-over-year.
• Client uninvested cash hit a record $169 billion, up 35%, while client equity climbed 38% to $789 billion despite a 5% S&P 500 decline.
• Daily average revenue trades (DARTs) rose 24% to 4.4 million, with futures volumes up 20% to a quarterly record.
• Pre-tax profit margin held at 77%, marking the sixth straight quarter above 70%; the annual dividend was raised from $0.32 to $0.35.
• The company expanded crypto offerings in Europe, launched 24/7 prediction markets, and welcomed the SEC’s removal of the Pattern Day Trader rule as a growth opportunity.

Interactive Brokers Group (IBKR) posted record first-quarter 2026 net revenues even as global equity markets fell, driven by strong account growth, higher trading volumes, and rising client cash balances.

The S&P 500 dropped 5% during the quarter, and the Magnificent Seven slid even further. Despite that, IBKR kept growing. New accounts kept coming in, and existing clients traded more — not less.

Client uninvested cash balances rose 35% year-over-year to a record $169 billion. Client equity increased 38% to $789 billion, and was up 1% from the prior quarter, as new account funding more than offset market-driven declines in asset values.

Interactive Brokers Group, Inc., IBKR

Daily average revenue trades came in at 4.4 million, up 24% from a year ago. Stock share volumes rose 25%, options contracts were up 16%, and futures contracts climbed 20% to a new quarterly record — with elevated volatility and hedging demand cited as key drivers.

Commission revenue crossed $600 million for the first time, rising 19% year-over-year. Net interest income grew 17% to $904 million, driven by higher client balances, though partially offset by lower benchmark interest rates. Other fees and services added $86 million, up 10%.

Margins Hold Firm

Pre-tax profit margin was 77% for the quarter — both as reported and as adjusted. That marks six consecutive quarters above 70%, a run the company has been leaning into publicly.

Total assets rose 39% year-over-year to $219 billion. Firm equity grew 22% to $21.3 billion. The company carries no long-term debt.

Off the back of that balance sheet strength, IBKR raised its annual dividend from $0.32 to $0.35 per share.

Execution, clearing, and distribution costs fell 12% to $106 million, largely due to lower SEC regulatory fees. Headcount stood at 3,232 as of March 31. Compensation and benefits were $167 million, or 10% of adjusted net revenues — down from 11% a year ago.

One item to flag: the SEC raised its fee rate for securities transactions from $0 to $20.60 per million, effective April 4. Management said this is a pass-through — it increases both commission revenue and execution costs by the same amount, with no effect on net income.

Crypto, AI, and the PDT Rule

On the product side, IBKR expanded crypto services to clients in the European Economic Area, added crypto transfer-in capabilities, and launched access to Coinbase Derivatives Exchange for nano-sized contracts and perpetual futures. Staking is on the roadmap, pending partner readiness from Zero Hash.

Overnight trading volumes nearly tripled to 8.1 million trades, up from 2.8 million a year ago.

The company also rolled out 24/7 prediction markets and launched an “Election Board” ahead of the 2026 U.S. midterms. Management said interest from prospective participants has grown.

IBKR welcomed the SEC’s elimination of the Pattern Day Trader rule, describing it as a shift to a risk-based margin system. Management flagged its large base of smaller individual accounts as a direct opportunity for increased engagement.

Chairman Thomas Peterffy said the firm is “hell-bent” on increasing marketing spend but is being methodical about returns on each incremental dollar.

AI is being deployed across client tools, onboarding, compliance, and the “Ask IBKR” portfolio query tool. The company’s AI-powered chatbot is handling a growing share of client service inquiries across multiple languages.

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