IBKR — Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop · AI-drafted from the SEC filing
Net revenues rose 28% to $1.90 billion as accounts grew 34% and margin loans 67%; pretax margin reached 77% and diluted EPS rose 35% to $0.69 despite lower interest rates.
- Revenue
- $1.9B
- +28.1% YoY
- Net income
- $312M
- +39.3% YoY
- Diluted EPS
- $0.69
- +35.3% YoY
- Operating margin
- 76.8%
Overview
Interactive Brokers grew both of its main income sources sharply. In the three months to June 30, 2026, net revenues rose 28% to $1,896 million (from $1,480 million) and pretax income rose 32% to $1,456 million. The money came from two places. Customers traded more: commissions rose 30%. Customers also borrowed more against their portfolios and left more cash with the broker, which lifted net interest income 23% even though interest rates were lower than a year earlier.
Costs grew more slowly than revenue (+17%), so the pretax profit margin rose to 76.8% from 74.6%. Pretax margin is the share of revenue left after all operating costs, before income tax.
A note on ownership: why "net income" has two numbers
The listed company, Interactive Brokers Group, Inc. (IBG, Inc.), does not own the whole business. It is a holding company whose main asset is about 26.5% of IBG LLC, the entity that actually runs the brokerage. The other 73.5% belongs to IBG Holdings LLC, which is owned by founder and Chairman Thomas Peterffy, his affiliates, and employees and other members.
The income statement consolidates 100% of IBG LLC, so the headline net income of $1,338 million covers the whole business. Of that, $1,026 million belongs to the Holdings owners (shown as "net income attributable to noncontrolling interests"). Only $312 million is "net income available for common stockholders", the portion that belongs to public shareholders. Earnings per share is calculated from that $312 million, so this report uses it for net income and EPS. Tax works the same way: IBG, Inc. pays U.S. corporate tax only on its own share, and Holdings' owners pay tax on theirs outside the company. That is why the reported tax bill ($118 million, about 8% of pretax income) looks so low.
The public company's slice is slowly getting bigger. Its average stake rose from 25.9% a year ago to 26.4% this quarter, and diluted shares outstanding rose about 2% to 450.1 million. Because the slice grew, income to common stockholders rose 39%, faster than the whole business's 33%. EPS rose 35%, a bit less than income to common stockholders, because it is spread over more shares.
Key metrics
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