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Interactive Brokers (IBKR) is nicely higher and reaching new all-time highs after reporting its Q4 results last night. The company beat EPS expectations, while revenue growth remained healthy, increasing 18.5% yr/yr to $1.64 bln, which was in line with expectations. The results reflect continued strong client activity and asset growth across the platform.

• IBKR noted that rising markets and expectations for lower rates continued to lift client engagement, with customers taking on more risk, increasing market exposure, using more leverage, and expanding activity across asset classes. Total DARTs rose 30% yr/yr to 4.04 mln.
• Commissions reached a new record, increasing 22% yr/yr to $582 mln, driven by higher trading volumes across major product categories, with futures contract volumes outpacing industry volumes.
• Options volume increased 27% yr/yr, futures contract volume was up 22% to a near record, and stock share volume grew 16%.
• Net interest income increased 20% yr/yr to $966 mln, just $1 mln shy of Q3's record, despite benchmark rate cuts in multiple countries, as higher average customer margin loans and customer credit balances, along with stronger securities lending activity, more than offset the impact of lower rates.
• In terms of ForecastEx, IBKR noted it is growing nicely with trading volumes having increased significantly, with 286 mln pairs traded in Q4, up from 15 mln pairs in Q3, and over 10,000 listed instruments. It continued to note that the platform does not depend on sports, viewing prediction markets as broadly applicable across many real-world events.
• IBKR continues to push growth initiatives, including expanding into new markets, rolling out additional AI-driven tools and platform enhancements, broadening its crypto capabilities (particularly in Europe), and maintaining a strong pipeline of new products and features.

Briefing.com Analyst Insight

IBKR delivered another strong quarter, with record commissions and near-record net interest income reflecting the strength and scalability of its automated, global platform. Trading volumes stayed elevated across products, with futures activity standing out and pointing to a continued risk-on tone among active investors. Just as important, strong account growth and a sharp increase in client assets continue to expand IBKR's earnings base and reinforce the platform's appeal. With new features and initiatives still rolling out, IBKR's core fundamentals remain strong and it continues to stand out in the brokerage space.