3Q2026
Filed Oct 15, 2026GAAP DILUTED EPS OF $0.69, ADJUSTED EPS OF $0.67; GAAP NET REVENUES OF $1.91 BILLION, ADJUSTED NET REVENUES OF $1.87 BILLION; RAISES QUARTERLY DIVIDEND FROM $0.0875 TO $0.15
Third-quarter GAAP net revenues rose to $1,914 million from $1,655 million, while income before income taxes increased to $1,496 million from $1,312 million. Customer accounts, customer equity, customer credits and customer margin loans all increased year over year, and the Board raised the quarterly cash dividend to $0.15 per share.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three months ended September 30, 2026 total net revenuesGAAP | $1.91B | – | – |
| Three months ended September 30, 2026 adjusted net revenuesnon-GAAP | $1.87B | – | – |
| Three months ended September 30, 2026 commissionsGAAP | $602M | – | 12% |
| Three months ended September 30, 2026 other fees and servicesGAAP | $ 88 | – | 33% |
| Three months ended September 30, 2026 other incomeGAAP | $ 70 | – | (18%) |
| Three months ended September 30, 2026 total non-interest incomeGAAP | $ 760 | – | – |
| Three months ended September 30, 2026 interest incomeGAAP | $ 2,433 | – | – |
| Three months ended September 30, 2026 interest expenseGAAP | $ (1,279 ) | – | – |
| Three months ended September 30, 2026 total net interest incomeGAAP | $1.15B | – | 19% |
| Three months ended September 30, 2026 execution, clearing and distribution feesGAAP | $134M | – | 46% |
| Three months ended September 30, 2026 employee compensation and benefitsGAAP | $ 167 | – | – |
| Three months ended September 30, 2026 occupancy, depreciation and amortizationGAAP | $ 29 | – | – |
| Three months ended September 30, 2026 communicationsGAAP | $ 11 | – | – |
| Three months ended September 30, 2026 general and administrative expenseGAAP | $ 78 | – | – |
| Three months ended September 30, 2026 customer bad debtGAAP | $ (1 ) | – | – |
| Three months ended September 30, 2026 total non-interest expensesGAAP | $ 418 | – | – |
| Three months ended September 30, 2026 income before income taxesGAAP | $1.50B | – | – |
| Three months ended September 30, 2026 adjusted income before income taxesnon-GAAP | $1.45B | – | – |
| Three months ended September 30, 2026 pretax profit marginGAAP | 78% | – | – |
| Three months ended September 30, 2026 adjusted pre-tax profit marginnon-GAAP | 78% | – | – |
| Three months ended September 30, 2026 income tax expenseGAAP | $ 148 | – | – |
| Three months ended September 30, 2026 net incomeGAAP | $ 1,348 | – | – |
| Three months ended September 30, 2026 net income attributable to noncontrolling interestsGAAP | $ 1,034 | – | – |
| Three months ended September 30, 2026 net income available for common stockholdersGAAP | $314M | – | – |
| Three months ended September 30, 2026 adjusted net income available for common stockholdersnon-GAAP | $ 305 | – | – |
| Three months ended September 30, 2026 basic EPSGAAP | $ 0.69 | – | – |
| Three months ended September 30, 2026 diluted EPSGAAP | $ 0.69 | – | – |
| Three months ended September 30, 2026 adjusted diluted EPSnon-GAAP | $ 0.67 | – | – |
| Three months ended September 30, 2026 comprehensive income available for common stockholdersGAAP | $ 302 | – | – |
| Three months ended September 30, 2026 other comprehensive income (loss), net of taxGAAP | $ (12 ) | – | – |
| Three months ended September 30, 2026 comprehensive diluted EPSGAAP | $ 0.67 | – | – |
| Nine months ended September 30, 2026 total net revenuesGAAP | $ 5,479 | – | – |
| Nine months ended September 30, 2026 adjusted net revenuesnon-GAAP | $ 5,435 | – | – |
| Nine months ended September 30, 2026 commissionsGAAP | $ 1,888 | – | – |
| Nine months ended September 30, 2026 other fees and servicesGAAP | $ 261 | – | – |
| Nine months ended September 30, 2026 other incomeGAAP | $ 215 | – | – |
| Nine months ended September 30, 2026 total non-interest incomeGAAP | $ 2,364 | – | – |
| Nine months ended September 30, 2026 interest incomeGAAP | $ 6,616 | – | – |
| Nine months ended September 30, 2026 interest expenseGAAP | $ (3,501 ) | – | – |
| Nine months ended September 30, 2026 total net interest incomeGAAP | $ 3,115 | – | – |
| Nine months ended September 30, 2026 total non-interest expensesGAAP | $ 1,239 | – | – |
| Nine months ended September 30, 2026 income before income taxesGAAP | $ 4,240 | – | – |
| Nine months ended September 30, 2026 adjusted income before income taxesnon-GAAP | $ 4,196 | – | – |
| Nine months ended September 30, 2026 adjusted pre-tax profit marginnon-GAAP | 77% | – | – |
| Nine months ended September 30, 2026 income tax expenseGAAP | $ 383 | – | – |
| Nine months ended September 30, 2026 net incomeGAAP | $ 3,857 | – | – |
| Nine months ended September 30, 2026 net income available for common stockholdersGAAP | $ 893 | – | – |
| Nine months ended September 30, 2026 adjusted net income available for common stockholdersnon-GAAP | $ 883 | – | – |
| Nine months ended September 30, 2026 diluted EPSGAAP | $ 1.98 | – | – |
| Nine months ended September 30, 2026 adjusted diluted EPSnon-GAAP | $ 1.96 | – | – |
| 3Q2026 total customer DARTsother | 4,273 | (11%) | 18% |
| 3Q2026 total accountsother | 5,576 | 8% | 35% |
| 3Q2026 customer equityother | $ 965 | 4% | 27% |
| 3Q2026 cleared customers commission per cleared commissionable orderother | $ 2.59 | (2%) | (4%) |
| 3Q2026 cleared average DARTs per account (annualized)other | 168 | (19%) | (14%) |
| Three months ended September 30, 2026 net interest marginother | 1.99 % | – | – |
| Three months ended September 30, 2026 net interest income, net interest margin tableother | $ 1,191 | – | – |
| Nine months ended September 30, 2026 net interest marginother | 1.94 % | – | – |
| Nine months ended September 30, 2026 net interest income, net interest margin tableother | $ 3,244 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Commissions18% higher DARTs and higher regulatory fees, which are passed through to customers. | $602M | – | 12% |
| Net interest incomeHigher average customer margin loans and customer credit balances. | $1.15B | – | 19% |
| Other fees and servicesLed by increases of $11 million in risk exposure fees, $3 million in payments for order flow from exchange-mandated programs, and $3 million in market data fees. | $88M | – | 33% |
| Other incomeDecrease comprised mainly of $50 million from investing activities, partially offset by an increase of $36 million from the currency diversification strategy. | $70M | – | (18%) |
Capital returns
- The Board of Directors declared an increase in the quarterly cash dividend from $0.0875 per share to $0.15 per share.
- The dividend is payable on December 14, 2026, to shareholders of record as of December 1, 2026.
What drove it
- Customer accounts increased 35% to 5.58 million.
- Customer equity increased 27% to $964.7 billion.
- Customer credits increased 20% to $186.2 billion.
- Customer margin loans increased 36% to $105.2 billion.
- Customer trading volume in futures increased 13%.
- Execution, clearing and distribution fees increased 46% to $134 million, mainly driven by a $30 million increase in regulatory fees due to a higher SEC Section 31 transaction fee rate.
Concerns
- Customer trading volume in stocks decreased 24% and options volumes decreased 1%.
- Total customer DARTs were 4,273 in 3Q2026, compared with 4,824 in 2Q2026, a change of (11%).
- Cleared average DARTs per account (annualized) were 168 in 3Q2026, compared with 207 in 2Q2026, a change of (19%).
- Net interest margin was 1.99 % for the three months ended September 30, 2026, compared with 2.16 % for the year-ago period.
- The currency diversification strategy decreased comprehensive earnings by $4 million, as the U.S. dollar value of the GLOBAL decreased by approximately 0.08%.
What to watch
- Customer margin loans of $105.2 billion and customer credits of $186.2 billion.
- Net interest margin and annualized yields on segregated cash and securities, customer margin loans, and customer credit balances.
- Whether stock and options volumes recover from the reported year-over-year declines.
- The effect of regulatory fees, including the higher SEC Section 31 transaction fee rate, on commission revenue and execution, clearing and distribution fees.
Balance sheet and cash flow
- Cash and cash equivalents were $ 5,935 at September 30, 2026, compared with $ 4,963 at December 31, 2025.
- Cash - segregated for regulatory purposes was 58,695 at September 30, 2026, compared with 50,332 at December 31, 2025.
- Securities - segregated for regulatory purposes were 38,376 at September 30, 2026, compared with 26,521 at December 31, 2025.
- Receivables from customers, net of allowance for credit losses were 105,592 at September 30, 2026, compared with 90,475 at December 31, 2025.
- Short-term borrowings were $ 18 at September 30, 2026, compared with $ 19 at December 31, 2025.
- Total assets were $ 243,235 at September 30, 2026, compared with $ 203,240 at December 31, 2025.
- Total liabilities were 219,984 at September 30, 2026, compared with 182,768 at December 31, 2025.
- Stockholders' equity was 6,215 at September 30, 2026, compared with 5,363 at December 31, 2025.
- Noncontrolling interests were 17,036 at September 30, 2026, compared with 15,109 at December 31, 2025.
- Total equity was 23,251 at September 30, 2026, compared with 20,472 at December 31, 2025.
Analysis
Interactive Brokers reported higher third-quarter revenue and earnings on both GAAP and adjusted measures. GAAP net revenues were $1,914 million versus $1,655 million in the year-ago quarter, while adjusted net revenues were $1,872 million versus $1,610 million. GAAP diluted EPS was $0.69 versus $0.59, and adjusted diluted EPS was $0.67 versus $0.57. Income before income taxes was $1,496 million, compared with $1,312 million, while the reported pretax profit margin was 78%, versus 79% a year earlier.
Net interest income was the largest stated revenue contributor at $1.15 billion and increased 19%, primarily on higher average customer margin loans and customer credit balances. Commission revenue increased 12% to $602 million on 18% higher DARTs and higher regulatory fees passed through to customers. Other fees and services increased 33% to $88 million, while other income decreased 18% to $70 million. The non-GAAP reconciliation shows adjusted revenue excluded a $40 million currency diversification strategy adjustment and a $3 million mark-to-market adjustment.
Customer metrics showed broad year-over-year expansion. Customer accounts increased 35% to 5.58 million, customer equity increased 27% to $964.7 billion, customer credits increased 20% to $186.2 billion, and customer margin loans increased 36% to $105.2 billion. Trading activity was mixed by product: futures volume increased 13%, while stock and option volumes decreased 24% and 1%, respectively. Sequential operating data also showed total customer DARTs declined 11% from 2Q2026 and cleared average DARTs per account declined 19%.
Expense growth included execution, clearing and distribution fees of $134 million, up 46%, mainly due to a $30 million increase in regulatory fees from a higher SEC Section 31 transaction fee rate. Total non-interest expenses were $418 million versus $343 million. Net interest margin was 1.99 % for the quarter, below 2.16 % in the prior-year quarter, with annualized yields lower across segregated cash and securities, customer margin loans, and customer credit balances.
The balance sheet expanded through September 30, 2026, with total assets of $243,235 million and total equity of $23,251 million. The Board raised the quarterly cash dividend from $0.0875 per share to $0.15 per share, payable December 14, 2026 to shareholders of record on December 1, 2026. The release did not provide forward financial guidance.
Not in the filing
stated, not guessed- Forward revenue, margin, expense, tax-rate, EPS, operating-data, or other financial guidance
- Prior-release outlook for comparison
- Operating cash flow
- Free cash flow
- Share repurchases
- GAAP gross margin
- Non-GAAP gross margin
- Reported tax rate
- Named executive quotes
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.