Interactive Brokers (IBKR) Q3 2026 Earnings Call: NII Up 19%, Dividend Raised
Source Tradingkey
Key Takeaways
- Interactive Brokers reported record pretax income and a 78% pretax margin, marking its eighth consecutive quarter above 70%.
- Commission revenue rose 12% year over year to $602 million, while GAAP net interest income increased 19% to more than $1.1 billion.
- Total customer DARTs reached 4.3 million per day, up 18% year over year, although the decline in trading activity per account was broad-based.
- Total assets increased 21% to $243 billion, and firm equity rose 19% to $23.3 billion. The company continues to have no long-term debt.
- The annual dividend was raised from $0.35 to $0.60. Founder and Chairman Thomas Peterffy said the company generally targets dividends equal to 0.5% to 1% of market value.
- Management highlighted autonomous AI trading, prediction markets, RIA tax-aware strategies and introducing brokers as areas with further growth potential.
Core Financial Data
| Metric | Q3 2026 result | Change and context |
|---|---|---|
| Commission revenue | $602 million | Up 12% year over year; third consecutive quarter above $600 million |
| GAAP net interest income | More than $1.1 billion | Up 19% year over year, mainly due to higher balances |
| Other fees and services | $88 million | Up 33%, supported by risk exposure fees, market data fees and options-related payments |
| Pretax margin | 78% | Record pretax income; eighth consecutive quarter above 70% |
| Execution, clearing and distribution costs | $134 million | Up 46%, including $30 million of reinstated SEC regulatory fees |
| Gross transactional profit margin | 83% | Based on execution and clearing costs equal to 17% of commission revenue |
| Compensation and benefits | $167 million | Equal to 9% of adjusted net revenue |
| General and administrative expenses | $78 million | Increased primarily because of higher advertising spending |
| Total assets | $243 billion | Up 21% year over year |
| Firm equity | $23.3 billion | Up 19% year over year |
| Customer DARTs | 4.3 million per day | Up 18% year over year |
| Commission per cleared commissionable order | $2.59 | Down 4% due to smaller order sizes |
| Annual dividend | $0.60 | Increased from $0.35 |
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