📊 IBKR Key Takeaways
Is IBKR a Good Investment? Thesis Analysis
Interactive Brokers exhibits strong cash generation (15.8B operating/free cash flow) and fortress balance sheet (zero long-term debt), but faces material headwinds with 31.5% revenue decline and 77.4% net income decline YoY, indicating cyclical pressures in the brokerage sector that require monitoring before establishing conviction.
Why Buy IBKR? Key Strengths
- Exceptional free cash flow generation of 15.8B with 648% FCF margin, indicating strong underlying cash earnings power
- Fortress balance sheet with zero long-term debt and substantial liquidity (5.0B cash) relative to liabilities
- Respectable net margin of 40.3% and ROE of 18.3% despite significant revenue headwinds, suggesting operational resilience
IBKR Investment Risks to Consider
- Severe revenue contraction of 31.5% YoY and net income decline of 77.4% YoY signals material cyclical pressures in trading volumes or interest rate environment
- Highly leveraged capital structure with liabilities (182.8B) representing 33.8x stockholders equity (5.4B), typical but risky for brokerage during market stress
- Very low ROA of 0.5% despite high profitability indicates asset-heavy model vulnerable to revenue disruption; unclear if declines are temporary or structural
Key Metrics to Watch
- Revenue growth stabilization and sequential trends next quarter (early indicator of recovery)
- Operating leverage recovery and whether 195.5% operating margin normalizes as revenue base returns
- Free cash flow sustainability and customer asset levels as proxy for trading activity normalization
IBKR Financial Metrics
💡 AI Analyst Insight
The 648.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
IBKR Profitability Ratios
IBKR vs Finance Sector
How Interactive Brokers Group, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is IBKR Overvalued or Undervalued?
Based on fundamental analysis, Interactive Brokers Group, Inc. appears fundamentally strong relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
IBKR Balance Sheet & Liquidity
IBKR 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Interactive Brokers Group, Inc.'s revenue has grown significantly by 56% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.42 reflects profitable operations.
IBKR Growth Metrics (YoY)
IBKR Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $507.0M | $834.0M | $0.42 |
| Q2 2025 | $474.0M | $809.0M | $0.41 |
| Q1 2025 | $438.0M | $795.0M | $1.61 |
| Q3 2024 | $385.0M | $772.0M | $1.56 |
| Q2 2024 | $369.0M | $601.0M | $1.20 |
| Q1 2024 | $400.0M | $700.0M | $1.42 |
| Q3 2023 | $365.0M | $483.0M | $0.97 |
| Q2 2023 | $365.0M | $360.0M | $0.72 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
IBKR Capital Allocation
IBKR SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Interactive Brokers Group, Inc. (CIK: 0001381197)
📋 Recent SEC Filings
❓ Frequently Asked Questions about IBKR
What is the AI rating for IBKR?
Interactive Brokers Group, Inc. (IBKR) has an AI rating of HOLD with 60% confidence, based on fundamental analysis of SEC EDGAR filings.
What are IBKR's key strengths?
Claude: Exceptional free cash flow generation of 15.8B with 648% FCF margin, indicating strong underlying cash earnings power. Fortress balance sheet with zero long-term debt and substantial liquidity (5.0B cash) relative to liabilities.
What are the risks of investing in IBKR?
Claude: Severe revenue contraction of 31.5% YoY and net income decline of 77.4% YoY signals material cyclical pressures in trading volumes or interest rate environment. Highly leveraged capital structure with liabilities (182.8B) representing 33.8x stockholders equity (5.4B), typical but risky for brokerage during market stress.
What is IBKR's revenue and growth?
Interactive Brokers Group, Inc. reported revenue of $2.4B.
Does IBKR pay dividends?
Interactive Brokers Group, Inc. pays dividends, with $134.0M distributed to shareholders in the trailing twelve months.
Where can I find IBKR SEC filings?
Official SEC filings for Interactive Brokers Group, Inc. (CIK: 0001381197) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is IBKR's EPS?
Interactive Brokers Group, Inc. has a diluted EPS of $2.22.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is IBKR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Interactive Brokers Group, Inc. has a HOLD rating with 60% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is IBKR stock overvalued or undervalued?
Valuation metrics for IBKR: ROE of 18.3% (sector avg: 12%), net margin of 40.3% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy IBKR stock in 2026?
Our dual AI analysis gives Interactive Brokers Group, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is IBKR's free cash flow?
Interactive Brokers Group, Inc.'s operating cash flow is $15.8B, with capital expenditures of N/A. FCF margin is 648.0%.
How does IBKR compare to other Finance stocks?
Vs Finance sector averages: Net margin 40.3% (avg: 25%), ROE 18.3% (avg: 12%), current ratio N/A (avg: 1.2).