Interactive Brokers Q3 Revenue $1.655B Up 21% as Accounts Jump 32%
In the third quarter, Interactive Brokers added 4.4 million active accounts, up 32% year-over-year, driving revenue to $1.655 billion (21% growth) and pre-tax profit margins of 79%. Founder Thomas Peterffy expects usage of its 2024-launched election prediction platform to further accelerate growth, building on the 45.6% stock gain in 2025.
1. Election Betting Platform Drives User Engagement
Interactive Brokers’ prediction markets platform, launched in early 2024, is seeing accelerating growth as U.S. investors place wagers on the November midterm elections. Founder Thomas Peterffy projects platform activity to double compared with the first half of the year, citing more than 150,000 active participants as of June. Trading volume on the platform has climbed 75% quarter-over-quarter, with average daily contracts rising from 12,000 in Q1 to 21,000 in Q2. This surge is contributing incremental commission revenue and enhancing overall client engagement across the brokerage’s global ecosystem.
2. Rapid Account Growth and Margin Expansion
Interactive Brokers reported 4.4 million active client accounts at year-end 2025, a 32% year-over-year increase driven by mobile-first order entry and competitive commission rates. Net client deposits rose 28% to $380 billion, providing a deeper pool for securities lending and margin financings. In Q3, total revenues reached $1.655 billion, up 21% year-over-year, while pre-tax profit margin expanded to 79%, one of the highest across financial services. The company’s fully automated clearing and execution infrastructure has enabled gross margins near 95%, underscoring its operational leverage as volumes climb.
3. Premium Valuation Reflects Growth Prospects
Interactive Brokers now trades at a price-to-earnings ratio of 34, reflecting investor confidence in sustained double-digit earnings growth. The brokerage’s market capitalization stands at roughly $31 billion, supported by a dividend yield of 0.43% and negligible debt levels. Analysts note that in a rising stock-trading cycle, revenue will continue to benefit, but a market downturn could temper transaction volumes temporarily. Long-term forecasts assume active accounts growing at a mid-teens percentage rate annually, which could drive mid-teens earnings-per-share growth over the next five years, gradually normalizing the current valuation premium.