Interactive Brokers Group, Inc. (IBKR) · Material Event (8-K) SEC Filing

EX-99.1 2 ibkr-ex99_1.htm EX-99.1 EX-99.1 Exhibit 99.1 INTERACTIVE BROKERS GROUP ANNOUNCES 2Q2026 RESULTS — — — GAAP DILUTED EPS OF $0.69, ADJUSTED1 EPS OF $0.69GAAP NET REVENUES OF $1.90 BILLION, ADJUSTED NET REVENUES OF $1.88 BILLION GREENWICH, CT, July 21, 2026 — Interactive Brokers Group, Inc. (Nasdaq: IBKR), an automated global broker, announced results for the quarter ended June 30, 2026. Reported and adjusted diluted earnings per share were both $0.69 for the current quarter. For the year-ago quarter, reported and adjusted diluted earnings per share were both $0.51. Reported net revenues were $1.90 billion for the current quarter and $1.88 billion as adjusted. For the year-ago quarter, reported and adjusted net revenues were both $1.48 billion. Reported income before income taxes was $1.46 billion for the current quarter and $1.44 billion as adjusted. For the year-ago quarter, reported and adjusted income before income taxes were both $1.10 billion. Financial Highlights(All comparisons are to the year-ago quarter.) •Commission revenue increased 30% to $673 million on higher customer trading volumes. Customer trading volume in options, stocks and futures increased 17%, 14% and 2%, respectively. •Net interest income increased 23% to $1.06 billion primarily on higher average customer margin loans and customer credit balances. •Other fees and services increased 40% to $87 million, led by increases of $9 million in payments for order flow from exchange-mandated programs, $8 million in risk exposure fees, and $3 million in market data fees. •Execution, clearing and distribution fees increased 22% to $142 million, driven by a $19 million increase in regulatory fees, as the SEC Section 31 transaction fee rate increased on April 4, 2026; partially offset by greater capture of liquidity rebates from certain exchanges due to higher trading volumes in stocks and options. •Pretax profit margin for the current quarter was 77% both as reported and as adjusted. For the year-ago quarter, pretax margin was 75% both as reported and as adjusted. •Total equity of $22.3 billion. The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.0875 per share. This dividend is payable on September 14, 2026, to shareholders of record as of September 1, 2026. 1 See the reconciliation of non-GAAP financial measures starting on page 11. 1 Business Highlights(All comparisons are to the year-ago quarter.) •Customer accounts increased 34% to 5.19 million.•Customer equity increased 40% to $930.3 billion.•Total DARTs2 increased 36% to 4.82 million.•Customer credits increased 27% to $182.4 billion.•Customer margin loans increased 67% to $108.5 billion. Other Items Other income increased 88% to $79 million. This increase is comprised mainly of $26 million from our currency diversification strategy and $11 million from our investing activities. In connection with our currency diversification strategy, we base our net worth in GLOBALs, a basket of 10 major currencies in which we hold our equity. In this quarter, our currency diversification strategy decreased our comprehensive earnings by $36 million, as the U.S. dollar value of the GLOBAL decreased by approximately 0.21%. The effects of the currency diversification strategy are reported as components of (1) Other Income (gain of $21 million) and (2) Other Comprehensive Income (loss of $57 million). Conference Call Information: Interactive Brokers Group, Inc. will hold a conference call with investors today, July 21, 2026, at 4:30 p.m. ET to discuss its quarterly results. Members of the public who would like to listen to the conference call should register at https://register-conf.media-server.com/register/BIf6232c31bfa24c3d963db61feae68746 to obtain the dial-in details. The number should be dialed approximately ten minutes prior to the start of the conference call. The conference call will also be accessible simultaneously, and through replays, as an audio webcast through the Investor Relations section of the Interactive Brokers web site, www.interactivebrokers.com/ir. About Interactive Brokers Group, Inc.: Interactive Brokers Group, Inc. (NASDAQ: IBKR) is a member of the S&P 500. Its affiliates provide automated trade execution and custody of securities, commodities, foreign exchange, and prediction markets around the clock on over 170 markets in numerous countries and currencies from a single unified platform to clients worldwide. We serve individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation have enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Interactive Brokers has consistently earned recognition as a top broker, garnering multiple awards and accolades from respected industry sources such as Barron's, Investopedia, Stockbrokers.com, and many others. 2 Daily average revenue trades (DARTs) are based on customer orders. 2 Cautionary Note Regarding Forward-Looking Statements: The foregoing information contains certain forward-looking statements that reflect the Company’s current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company’s operations and business environment which may cause the Company’s actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. Any forward-looking statements in this release are based upon information available to the Company on the date of this release. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the Company’s financial results may be found in the Company’s filings with the Securities and Exchange Commission. For Interactive Brokers Group, Inc. Investors: Nancy Stuebe, [email protected] or Media: Rob Garfield, [email protected]. 3 INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME(UNAUDITED) Three Months Six Months Ended June 30, Ended June 30, 2026 2025 2026 2025 (in millions, except share and per share data) Revenues: Commissions $ 673 $ 516 $ 1,286 $ 1,030 Other fees and services 87 62 173 140 Other income 79 42 145 107 Total non-interest income 839 620 1,604 1,277 Interest income 2,236 1,891 4,183 3,609 Interest expense (1,179 ) (1,031 ) (2,222 ) (1,979 ) Total net interest income 1,057 860 1,961 1,630 Total net revenues 1,896 1,480 3,565 2,907 Non-interest expenses: Execution, clearing and distribution fees 142 116 248 237 Employee compensation and benefits 182 163 349 317 Occupancy, depreciation and amortization 27 24 54 48 Communications 11 11 23 21 General and administrative 68 61 136 123 Customer bad debt 10 1 11 2 Total non-interest expenses 440 376 821 748 Income before income taxes 1,456 1,104 2,744 2,159 Income tax expense 118 98 235 189 Net income 1,338 1,006 2,509 1,970 Net income attributable to noncontrolling interests 1,026 782 1,930 1,533 Net income available for common stockholders $ 312 $ 224 $ 579 $ 437 Earnings per share: Basic $ 0.70 $ 0.51 $ 1.30 $ 1.00 Diluted $ 0.69 $ 0.51 $ 1.29 $ 0.99 Weighted average common shares outstanding: Basic 447,903,860 438,457,863 446,682,859 437,083,330 Diluted 450,088,032 441,439,924 449,235,445 440,459,081 4 INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(UNAUDITED) Three Months Six Months Ended June 30, Ended June 30, 2026 2025 2026 2025 (in millions, except share and per share data) Comprehensive income: Net income available for common stockholders $ 312 $ 224 $ 579 $ 437 Other comprehensive income: Cumulative translation adjustment, before income taxes (15 ) 79 (36 ) 107 Income taxes related to items of other comprehensive income - - - - Other comprehensive income (loss), net of tax (15 ) 79 (36 ) 107 Comprehensive income available for common stockholders $ 297 $ 303 $ 543 $ 544 Comprehensive earnings per share: Basic $ 0.66 $ 0.69 $ 1.22 $ 1.24 Diluted $ 0.66 $ 0.69 $ 1.21 $ 1.23 Weighted average common shares outstanding: Basic 447,903,860 438,457,863 446,682,859 437,083,330 Diluted 450,088,032 441,439,924 449,235,445 440,459,081 Comprehensive income attributable to noncontrolling interests: Net income attributable to noncontrolling interests $ 1,026 $ 782 $ 1,930 $ 1,533 Other comprehensive income - cumulative translation adjustment (42 ) 227 (100 ) 306 Comprehensive income attributable to noncontrolling interests $ 984 $ 1,009 $ 1,830 $ 1,839 5 INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION(UNAUDITED) June 30,2026 December 31, 2025 (in millions) Assets Cash and cash equivalents $ 7,711 $ 4,963 Cash - segregated for regulatory purposes 56,594 50,332 Securities - segregated for regulatory purposes 39,604 26,521 Securities borrowed 10,006 11,589 Securities purchased under agreements to resell 13,627 7,117 Financial instruments owned, at fair value 3,317 4,982 Receivables from customers, net of allowance for credit losses 108,939 90,475 Receivables from brokers, dealers and clearing organizations 5,120 5,161 Other assets 2,391 2,100 Total assets $ 247,309 $ 203,240 Liabilities and equity Liabilities Short-term borrowings $ 13 $ 19 Securities loaned 45,410 24,751 Financial instruments sold but not yet purchased, at fair value 509 740 Other payables: Customers 176,779 154,336 Brokers, dealers and clearing organizations 819 1,566 Other payables 1,529 1,356 179,127 157,258 Total liabilities 225,059 182,768 Equity Stockholders' equity 5,904 5,363 Noncontrolling interests 16,346 15,109 Total equity 22,250 20,472 Total liabilities and equity $ 247,309 $ 203,240 June 30, 2026 December 31, 2025 Ownership of IBG LLC Membership Interests Interests % Interests % IBG, Inc. 450,671,113 26.5% 445,612,825 26.3% Noncontrolling interests (IBG Holdings LLC) 1,250,737,416 73.5% 1,250,737,416 73.7% Total IBG LLC membership interests 1,701,408,529 100.0% 1,696,350,241 100.0% 6 INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIESOPERATING DATA EXECUTED ORDER VOLUMES: (in 000's, except %) Customer % Principal % Total % Period Orders Change Orders Change Orders Change 2023 483,015 29,712 512,727 2024 661,666 37% 63,348 113% 725,014 41% 2025 915,616 38% 121,972 93% 1,037,588 43% 2Q2025 220,215 28,372 248,587 2Q2026 299,110 36% 45,070 59% 344,180 38% 1Q2026 266,419 42,010 308,429 2Q2026 299,110 12% 45,070 7% 344,180 12% CONTRACT AND SHARE VOLUMES: (in 000's, except %) TOTAL Options % Futures1 % Stocks % Period (contracts) Change (contracts) Change (shares) Change 2023 1,020,736 209,034 252,742,847 2024 1,344,855 32% 218,327 4% 307,489,711 22% 2025 1,668,228 24% 241,631 11% 421,707,895 37% 2Q2025 393,051 64,271 96,450,620 2Q2026 459,831 17% 65,909 3% 109,464,979 13% 1Q2026 440,997 74,257 116,935,449 2Q2026 459,831 4% 65,909 (11%) 109,464,979 (6%) CUSTOMER Options % Futures1 % Stocks % Period (contracts) Change (contracts) Change (shares) Change 2023 981,172 206,073 248,588,960 2024 1,290,770 32% 214,864 4% 302,040,873 22% 2025 1,623,384 26% 240,120 12% 417,457,770 38% 2Q2025 382,195 63,918 95,276,485 2Q2026 446,906 17% 65,337 2% 108,174,094 14% 1Q2026 428,653 73,705 115,790,614 2Q2026 446,906 4% 65,337 (11%) 108,174,094 (7%) PRINCIPAL Options % Futures1 % Stocks % Period (contracts) Change (contracts) Change (shares) Change 2023 39,564 2,961 4,153,887 2024 54,085 37% 3,463 17% 5,448,838 31% 2025 44,844 (17%) 1,511 (56%) 4,250,125 (22%) 2Q2025 10,856 353 1,174,135 2Q2026 12,925 19% 572 62% 1,290,885 10% 1Q2026 12,344 552 1,144,835 2Q2026 12,925 5% 572 4% 1,290,885 13% ________________________1 Includes options on futures. 7 INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIESOPERATING DATA, CONTINUED Year over Year 2Q2026 2Q2025 % Change Total Accounts (in thousands) 5,185 3,866 34% Customer Equity (in billions)1 $ 930.3 $ 664.6 40% Total Customer DARTs (in thousands) 4,824 3,552 36% Cleared Customers Commission per Cleared Commissionable Order2 $ 2.64 $ 2.65 (0%) Cleared Avg. DARTs per Account (Annualized) 207 206 0% Consecutive Quarters 2Q2026 1Q2026 % Change Total Accounts (in thousands) 5,185 4,754 9% Customer Equity (in billions)1 $ 930.3 $ 789.4 18% Total Customer DARTs (in thousands) 4,824 4,368 10% Cleared Customers Commission per Cleared Commissionable Order2 $ 2.64 $ 2.69 (2%) Cleared Avg. DARTs per Account (Annualized) 207 205 1% ________________________1 Excludes non-Customers.2 Commissionable Order - a customer order that generates commissions. 8 INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIESNET INTEREST MARGIN(UNAUDITED) Three Months Six Months Ended June 30, Ended June 30, 2026 2025 2026 2025 (in millions) Average interest-earning assets Segregated cash and securities $ 97,647 $ 78,693 $ 90,953 $ 72,869 Customer margin loans 96,596 60,928 92,932 62,646 Securities borrowed 8,947 7,027 8,945 5,949 Other interest-earning assets 18,991 14,747 18,011 13,601 FDIC sweeps1 6,434 5,226 6,366 5,006 $ 228,615 $ 166,621 $ 217,207 $ 160,071 Average interest-bearing liabilities Customer credit balances $ 171,674 $ 129,998 $ 164,615 $ 124,010 Securities loaned 33,222 17,181 29,419 16,659 Other interest-bearing liabilities 512 50 354 58 $ 205,408 $ 147,229 $ 194,388 $ 140,727 Net interest income Segregated cash and securities, net2 $ 809 $ 756 $ 1,492 $ 1,419 Customer margin loans4 988 709 1,893 1,484 Securities borrowed and loaned, net3 44 60 77 70 Customer credit balances, net4 (956 ) (857 ) (1,820 ) (1,674 ) Other net interest income1/5 215 193 411 356 Net interest income5 $ 1,100 $ 861 $ 2,053 $ 1,655 Net interest margin ( NIM ) 1.93 % 2.07 % 1.91 % 2.09 % Annualized yields Segregated cash and securities 3.32 % 3.86 % 3.31 % 3.93 % Customer margin loans 4.10 % 4.67 % 4.11 % 4.78 % Customer credit balances 2.23 % 2.64 % 2.23 % 2.72 % ________________________1 Represents the average amount of customer cash swept into FDIC-insured banks as part of our Insured Bank Deposit Sweep Program. This item is not recorded in the Company's consolidated statements of financial condition. Income derived from program deposits is reported in other net interest income in the table above.2 Net interest income on Segregated cash and securities, net for the three and six months ended June 30, 2025, excludes approximately $26 million of interest income, recorded in the consolidated statements of comprehensive income, related to taxes withheld at source in prior periods which was determined to be fully refundable. 3 We estimate that if the interest earned and paid on cash collateral related to our securities lending transactions were included under “Securities borrowed and loaned, net” in the table above, the total net interest income related to our securities lending activities would have been $343 million and $612 million for the three and six months ended June 30, 2026, respectively, compared to $251 million and $437 million for the three and six months ended June 30, 2025, respectively. Such additional interest attributed to our securities lending activities would be reclassified from net interest income on “Segregated cash and securities, net” and “Customer credit balances, net” in the table above, so it would have no effect on our overall net interest income or net interest margin. 4 Interest income and interest expense on customer margin loans and customer credit balances, respectively, are calculated on daily cash balances within each customer’s account on a net basis, which may result in an offset of balances across multiple account segments (e.g., between securities and commodities segments). 9 5 Includes income from financial instruments that has the same characteristics as interest but is reported in Other fees and services and Other income in the Company’s consolidated statements of comprehensive income. For the three and six months ended June 30, 2026 and 2025, $11 million, $22 million, $9 million, and $17 million were reported in Other fees and services , respectively. For the three and six months ended June 30, 2026 and 2025, $32 million, $70 million, $18 million, and $34 million were reported in Other income , respectively. 10 INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL MEASURES(UNAUDITED) Three Months Six Months Ended June 30, Ended June 30, 2026 2025 2026 2025 Adjusted net revenues1 (in millions) Net revenues - GAAP $ 1,896 $ 1,480 $ 3,565 $ 2,907 Non-GAAP adjustments Currency diversification strategy, net (21 ) 5 (47 ) (15 ) Mark-to-market on investments2 8 (5 ) 45 (16 ) Total non-GAAP adjustments (13 ) 0 (2 ) (31 ) Adjusted net revenues $ 1,883 $ 1,480 $ 3,563 $ 2,876 Adjusted income before income taxes1 (in millions) Income before income taxes - GAAP $ 1,456 $ 1,104 $ 2,744 $ 2,159 Non-GAAP adjustments Currency diversification strategy, net (21 ) 5 (47 ) (15 ) Mark-to-market on investments2 8 (5 ) 45 (16 ) Total non-GAAP adjustments (13 ) - (2 ) (31 ) Adjusted income before income taxes $ 1,443 $ 1,104 $ 2,742 $ 2,128 Adjusted pre-tax profit margin 77 % 75 % 77 % 74 % Adjusted net income available for common stockholders1 (in millions) Net income available for common stockholders - GAAP $ 312 $ 224 $ 579 $ 437 Non-GAAP adjustments Currency diversification strategy, net (6 ) 1 (12 ) (4 ) Mark-to-market on investments2 2 (1 ) 12 (4 ) Income tax effect of above adjustments3 1 0 (0 ) 2 Total non-GAAP adjustments4 (3 ) (0 ) (1 ) (6 ) Adjusted net income available for common stockholders4 $ 310 $ 224 $ 578 $ 431 Adjusted diluted EPS1 (in dollars, except share amounts) Diluted EPS - GAAP $ 0.69 $ 0.51 $ 1.29 $ 0.99 Non-GAAP adjustments Currency diversification strategy, net (0.02 ) 0.00 (0.03 ) (0.01 ) Mark-to-market on investments2 0.00 (0.00 ) 0.03 (0.01 ) Income tax effect of above adjustments3 0.00 0.00 (0.00 ) 0.01 Total non-GAAP adjustments4 (0.01 ) (0.00 ) (0.00 ) (0.01 ) Adjusted diluted EPS4 $ 0.69 $ 0.51 $ 1.29 $ 0.98 Diluted weighted average common shares outstanding 450,088,032 441,439,924 449,235,445 440,459,081 11 Note: The term “GAAP” in the following explanation refers to generally accepted accounting principles in the United States.1 Adjusted net revenues, adjusted income before income taxes, adjusted net income available for common stockholders and adjusted diluted earnings per share (“EPS”) are non-GAAP financial measures. •We define adjusted net revenues as net revenues adjusted to remove the effect of our currency diversification strategy and our net mark-to-market gains (losses) on investments2. •We define adjusted income before income taxes as income before income taxes adjusted to remove the effect of our currency diversification strategy and our net mark-to-market gains (losses) on investments.•We define adjusted net income available to common stockholders as net income available for common stockholders adjusted to remove the after-tax effects attributable to IBG, Inc. of our currency diversification strategy and our net mark-to-market gains (losses) on investments. •We define adjusted diluted EPS as adjusted net income available for common stockholders divided by the diluted weighted average number of shares outstanding for the period.Management believes these non-GAAP items are important measures of our financial performance because they exclude certain items that may not be indicative of our core operating results and business outlook and may be useful to investors and analysts in evaluating the operating performance of the business and facilitating a meaningful comparison of our results in the current period to those in prior and future periods. Our currency diversification strategy and our mark-to-market on investments are excluded because management does not believe they are indicative of our underlying core business performance. Adjusted net revenues, adjusted income before income taxes, adjusted net income available to common stockholders and adjusted diluted EPS should be considered in addition to, rather than as a substitute for, GAAP net revenues, income before income taxes, net income attributable to common stockholders and diluted EPS.2 Mark-to-market on investments represents the net mark-to-market gains (losses) on investments in equity securities that do not qualify for equity method accounting, which are measured at fair value; on our U.S. government and municipal securities portfolios, which are typically held to maturity; and on certain other investments.3 The income tax effect is estimated using the statutory income tax rates applicable to the Company.4 Amounts may not add due to rounding. 12