Interactive Brokers Group reported higher second-quarter profit and revenue on Tuesday, as growth in client accounts, trading volumes and margin lending lifted its core business lines.
The automated broker generated net revenue of $1.90 billion for the three months to June, up 28% from $1.48 billion a year earlier, while diluted earnings per share rose to $0.69 from $0.51.
Income before taxes was $1.46 billion, a year-over-year increase of 32%, with a pre-tax margin of 77%. The Greenwich, Connecticut-based company ended June with 5.19 million customer accounts, up 34% from a year earlier and 9% above the level it reported for 2019. First quarter. Customer equity reached US$930.3 billion, up 40% year-on-year and 18% quarter-on-quarter.
Trading and lending via the Interactive Broker strengthen the lead
Commission revenue rose 30% to $673 million, which the company linked to higher client trading. Options volume increased by 17%, inventory volume by 14%, and futures volume by 2% compared to the previous year. Average daily trading revenue, a common measure of activity, rose 36% to 4.82 million.
Net interest income, the company’s largest source of revenue, rose 23% to $1.06 billion. The company attributed the gains to an increase in the average margin on customer loans and credit balances. Margin loans ended the quarter at $108.5 billion, up 67%, while customer credit balances rose 27% to $182.4 billion.
The broker has expanded its product list over the past year, Aggregation of Kalshi, CME and ForecastEx market prediction contracts In one interface for retail and institutional customers.
Figures as reported by Interactive Brokers for the quarter ending June 30, 2026. Data is unaudited.
Lower yields put pressure on interest margins
Behind the rise in interest income, the profitability of that lending has narrowed. Net interest margin fell to 1.93% from 2.07% a year earlier, with lower returns across the company’s interest-earning assets.
The annual yield on customer margin loans decreased to 4.10% from 4.67%, and the yield on separate cash and securities decreased to 3.32% from 3.86%. In other words, the growth in net interest income came from larger balances rather than from better interest rates.
Pre-tax margin was 77%, higher than 75% a year ago but lower than the company’s 79% Third quarter 2025 report.
Retail peers report a cooler backdrop
Interactive Brokers caters to active traders, financial advisors and institutions, a base that continued to trade during the quarter. The picture looked different elsewhere in retail. Robinhood reported Revenue growth slowed in the first quarterWith net revenues up 15% and cryptocurrency trading volumes falling.
Strategists at Robinhood have flagged the decline and told clients so Net buying has declined With US stock gains slowing in 2026.
Interactive Brokers has relied on new products to maintain engagement, adding the aforementioned prediction market venues and AI trading tools from ChatGPT and Grok For options and futures traders.
The commission per settled order was little changed at $2.64, versus $2.65 a year earlier, meaning the jump in commissions reflects volume, not higher prices.
Dividends remained steady as the currency basket trimmed dividends
The Board of Directors declared a quarterly dividend of $0.0875 per share, unchanged from the previous quarter, payable on September 14 to holders of record on September 1. Total shareholders’ equity reached US$22.3 billion at the end of June.
Interactive Brokers also holds its net worth in a basket of 10 major currencies that it calls GLOBAL. This quarter, the strategy reduced overall earnings by $36 million as the dollar value of the basket fell about 0.21%, a reversal from early 2025, when the basket was stronger. He added $127 million.
Reported net income was US$1.34 billion, although most of it, US$1.03 billion, was attributable to non-controlling interests within the group’s holding structure, leaving US$312 million to ordinary shareholders.
This article was written by Damian Schmil at www.financemagnates.com.
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