Interactive Brokers (IBKR) FY2025 10-K Annual Report

Filed: Feb 27, 2026
Financials
Security Brokers, Dealers & Flotation CompaniesSEC EDGAR

Interactive Brokers (IBKR) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 27, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Interactive Brokers FY2025 10-K Analysis

Business Overview

  • Automated global broker serving ~4.4M institutional/individual accounts across 170+ exchanges, 40 countries, 29 currencies from single unified platform
  • Joined S&P 500 on August 28, 2025 — milestone driving increased index fund ownership and enhanced stock liquidity
  • New offerings highlighted this year: IBKR InvestMentor microlearning app, IBKR GlobalTrader 2.0, AI-powered Ask IBKR portfolio tool, and expanded forecast/event contracts via ForecastEx
  • 4-for-1 stock split executed June 2025; authorized Class A shares increased from 1B to 4B shares
  • 3,182 employees across 24 cities in 16 countries; aggregate excess regulatory capital $14.1B as of December 31, 2025

Management Discussion & Analysis

  • Net revenues $6,205M, up $1,020M (+20%) YoY; commissions +27% to $2,149M, net interest income +13% to $3,563M
  • Pretax profit margin 77% vs 71% prior year; non-interest expenses fell to 23% of net revenues vs 29% prior year
  • Operating cash flow $15.8B vs $8.7B prior year; capex $67M; financing outflows $969M for dividends, distributions, and TRA payments
  • Total accounts +32% to 4.4M; customer equity +37% to $779.9B; NIM declined to 2.08% from 2.35% on lower benchmark rates
  • Key risks: rate cuts reducing NIM (~$77M impact per 25bps move), geopolitical uncertainty, tariff policy volatility, intensifying broker competition, and expanded AI regulatory scrutiny

Risk Factors

  • Emerging regulatory risk: ForecastEx (CFTC-registered DCM/DCO) faces state gaming authority litigation and uncertain legal framework for prediction/election contracts
  • International exposure: ~30% of net revenues from non-U.S. subsidiaries; U.S.-China tensions flagged as specific regional threat to Hong Kong operations
  • Operational vulnerability: no fully redundant systems; no business interruption insurance; hybrid work model increases cyber incident exposure
  • Key-person dependency: Thomas Peterffy controls ~73.7% combined voting power; Compensation Committee he chairs sets his own pay
  • Structural risk: potential $44.6B tax basis step-up liability requiring 85% of realized tax savings paid to Holdings under Tax Receivable Agreement

Interactive Brokers FY2025 Key Financial Metrics
XBRL

Revenue

$2.4B

+23.4% YoY

Net Income

$984M

+30.3% YoY

Net Margin

40.3%

+214bp YoY

ROE

18.3%

+71bp YoY

Total Assets

$203.2B

+35.4% YoY

EPS (Diluted)

$2.22

-68.0% YoY

Operating Cash Flow

$15.8B

+81.2% YoY

Source: XBRL data from Interactive Brokers FY2025 10-K filing on SEC EDGAR. All figures in USD.

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