Commission and net interest income both rose sharply, while customer accounts, equity and daily average revenue trades expanded as the stock gained about 4% after hours.
Interactive Brokers reported stronger-than-expected second-quarter results, with revenue of $1.90 billion and adjusted EPS of $0.69, ahead of Wall Street estimates of $1.80 billion and $0.64. Shares rose about 4% in after-hours trading as customer activity boosted profitability across the automated global brokerage’s stocks, options, futures, crypto and prediction markets businesses. Pretax profit margin improved to 77% from 75% a year earlier. Commission revenue increased 30% year over year to $673 million, helped by 17% growth in options trading volume and 14% growth in stock trading volume. Net interest income rose 23% to $1.06 billion, beating the $994 million FactSet consensus, while customer margin loans climbed 67% to $108.5 billion and customer credits rose 27% to $182.4 billion. Customer accounts grew 34% to 5.19 million, customer equity rose 40% to $930.3 billion, and DARTs (daily average revenue trades, commission-generating orders) increased 36% to 4.82 million. The quarter extends a strong week for brokerages after Charles Schwab’s record quarter on Monday, with retail activity also picking up since the pattern day trader rule ended in June. Interactive Brokers has also been expanding its crypto-trading reach through broker integrations and became the first venue for Cboe’s new prediction markets products in June. The board declared a quarterly dividend of $0.0875 per share, payable September 14, though management’s earnings call commentary may determine whether the after-hours gains hold into the second half.