Interactive Brokers Reports Strong Q1, Stock Split, Dividend Hike

Interactive Brokers reports strong Q1 2025 earnings, raises dividend, and announces four-for-one stock split for shareholders.

Key Points:

• Q1 2025 diluted EPS rose to $1.94; net revenues reached $1.43 billion, driven by increased trading volumes.
• Company declared a 28% dividend hike and announced a four-for-one stock split to enhance shareholder value.

Interactive Brokers Group, Inc. (NASDAQ: IBKR), reported robust financial results for the first quarter ended March 31, 2025, highlighting strong growth in customer activity and revenues across its core operations.

The company posted diluted earnings per share (EPS) of $1.94 on a reported basis, up from $1.61 in the same quarter last year. Adjusted EPS came in at $1.88, compared to $1.64 in Q1 2024.

Net revenues surged to $1.43 billion on a reported basis, up from $1.20 billion a year ago. On an adjusted basis, revenues were $1.40 billion, reflecting continued strength in commission and interest income.

Interactive Brokers reported a 36% year-over-year increase in commission revenue, totaling $514 million, buoyed by a significant uptick in customer trading volume. Stock trading volume rose 47%, options increased 25%, and futures rose 16%.

Interactive Brokers Reports Strong Q1, Stock Split, Dividend Hike

Net interest income climbed 3% to $770 million, driven by higher average customer margin loans and customer credit balances. Other fees and services revenue also saw strong growth, increasing 32% to $78 million, supported by a $9 million rise in risk exposure fees and $3 million in exchange-mandated order flow payments.

Operating performance remained solid, with income before income taxes reaching $1.06 billion on a reported basis, compared to $866 million in the year-ago quarter. Adjusted income before taxes was $1.02 billion, versus $879 million last year. The company maintained a robust pretax profit margin of 74% as reported (73% adjusted), improving from 72% in the prior year.

Total equity stood at $17.5 billion as of March 31, 2025.

In a move to enhance shareholder returns, the Board of Directors declared a 28% increase in the quarterly dividend, raising it from $0.25 to $0.32 per share. The dividend is payable on June 13, 2025, to shareholders of record as of May 30, 2025.

In a significant shareholder-friendly initiative, the company also announced a four-for-one forward stock split. Shareholders of record at the close of market on June 16, 2025, will receive three additional shares for every share held. The distribution will occur after the market closes on June 17, with trading on a split-adjusted basis beginning June 18, 2025.

With another quarter of strong financial performance, Interactive Brokers continues to demonstrate its competitive edge in low-cost, high-volume trading services, bolstered by rising investor engagement and resilient market conditions.

Also, visit the Stock Broker Talks website for more insights and Reviews.