Interactive Brokers Reports Strong Q4 and Full-Year Results for 2024

Interactive Brokers reports strong Q4 2024 results with record revenues, customer growth, and increased trading activity.

Key Points: 

• Strong Financial Growth: Net revenues rose to $1.387 billion, and EPS increased to $1.99, driven by higher trading activity.
• Customer Expansion: Accounts grew 30% to 3.34 million, with DARTs up 61% year-over-year.

Interactive Brokers Group, Inc. (NASDAQ: IBKR) has announced its financial results for the fourth quarter ended December 31, 2024. The company delivered robust growth in revenue, profits, and customer activity.

Earnings and Revenue:
Interactive Brokers reported diluted earnings per share (EPS) of $1.99 for the fourth quarter of 2024 and $2.03 on an adjusted basis, representing significant growth from the $1.48 reported EPS and $1.52 adjusted EPS in the same quarter last year.

The company posted net revenues of $1.387 billion for the quarter, rising to $1.424 billion on an adjusted basis, up from $1.139 billion and $1.149 billion, respectively, in the year-ago period.

Interactive Brokers Reports Strong Q4 and Full-Year Results for 2024

Profitability:
Income before income taxes for Q4 2024 surged to $1.040 billion ($1.077 billion adjusted), a sharp increase compared to $816 million ($831 million adjusted) in the same quarter of 2023. The pretax profit margin also expanded to 75% as reported (76% adjusted), compared to 72% in Q4 2023.

Business Drivers

• Trading Revenue: Commission revenue jumped 37% to $477 million, driven by surging customer trading activity. Options trading volume rose 32%, while stock trading volume soared 65%. Futures trading volume experienced a slight decline of 3%.
• Net Interest Income: The company benefited from higher average customer margin loans and credit balances, leading to an 11% increase in net interest income, totaling $807 million.
• Expenses: Execution, clearing, and distribution fees increased by 15%, reaching $115 million. This was attributed to higher SEC fees, the introduction of FINRA’s Consolidated Audit Trail (CAT) fee, and increased trading volumes.

Key Metrics and Growth Indicators

• Customer Accounts: The accounts grew by 30% year-on-year, reaching 3.34 million.
• Customer Equity: Total customer equity increased by 33%, hitting $568.2 billion.
• Daily Average Revenue Trades (DARTs): DARTs surged 61% year-on-year to 3.12 million.
• Customer Margin Loans: Loans rose 45% to $64.2 billion.

Dividend Announcement

Interactive Brokers‘ Board of Directors declared a quarterly cash dividend of $0.25 per share, payable on March 14, 2025, to shareholders of record as of February 28, 2025.

Strategic Outlook

The strong performance underscores Interactive Brokers‘ resilience and ability to capitalize on heightened trading activity, strong customer growth, and rising interest rates. The company’s robust margin and operational efficiency further strengthen its position as a leader in the electronic trading space.

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