AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 3/6 · 19/10/2026
Moat50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Global connectivity, proprietary automation and substantial customer activity support a scalable platform advantage. Actual operating leverage corroborates the mechanism, but the comparative cost gap is unquantified and partly asserted by management.
durability · 2/4 · The platform has accumulated customers and capabilities since 1993 and continues receiving investment. Replication by brokers and vendors remains credible; the passages establish neither exclusive assets nor a durable quantified lead.
customer dependency · 2/4 · Global access and rising customer balances and trading activity suggest useful customer relationships. This is indirect operating evidence: it does not establish lock-in, transfer costs or cohort retention.
erosion resilience · 2/4 · Revenue and earnings expanded while commission per order and balance yields declined, showing current resilience. Volume growth and larger balances helped absorb these pressures; replication and reduced routing value remain prospective erosion risks rather than demonstrated deterioration.
Pricing power50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 1/4 · Average commission per commissionable order slipped from $2.65 to $2.64, while commission growth was attributed to trading volumes. Order mix and rebates explain the small decline, so this is weak evidence of pricing power rather than proof of forced discounting. Balance yields also declined with market rates.
retention · 2/4 · Higher trading activity and average customer balances demonstrate engagement and demand indirectly. They cannot distinguish repeat demand from acquisition, market conditions or customer attrition, and no retention rate is inferred.
margin resilience · 3/4 · First-half 2026 net revenue rose to $3.565 billion from $2.907 billion while non-interest expenses rose to $821 million from $748 million, increasing pretax earnings. This demonstrates operating resilience despite lower yields and slightly lower commission per order, but favorable activity and balance growth limit conclusions about a downturn.
contractual freedom · 2/4 · Disclosed fixed and tiered pricing choices and selective payment of interest on eligible cash show implemented discretion in product terms and monetization. Commission-free alternatives constrain that discretion, and contractual notice or repricing restrictions are not supplied.
Predictability—
Missing exact annual revenue, free cash flow or FCF margin; operating cash flow and capex must both be reported for all five years.
Financial strength—
Missing required inputs: debtFcfGrade, netDebtEbitGrade, currentRatioGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- interestCoverageGrade
- 25.06
- cashInterestPaid
- 4209.00
- cashInterestCoverage
- 3.76
Capital allocation—
Missing required inputs: operatingReturn, cashConversionGrade. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- 3.15
- 3-year average SBC / revenue (%)
- 5.64
Management50
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Actual technology-related capital expenditure was $44 million in first-half 2026 versus $30 million a year earlier, alongside rising earnings, equity and regulatory capital compliance. These support measured reinvestment and financial capacity. Customer-related balance-sheet cash is not treated as freely distributable, and incomplete cash-flow and investment-return evidence prevents a stronger capital-allocation conclusion; related-party tax obligations also require consideration.
incentive alignment · 2/4 · Stock awards represented approximately 62% of actual 2025 named-executive compensation, with documented unvested holdings and multiyear vesting conditions. Alignment is moderated by qualitative compensation decisions without specified performance targets and insider influence over compensation. Granted awards are distinguished from future proposals.
execution · 3/4 · Growth in trading activity, customer balances, revenue and earnings while expenses grew more slowly provides strong demonstrated operating execution. Management attribution is indirect and market conditions contributed; the realized OFAC penalty is a material compliance counterweight.
governance · 1/4 · Peterffy's control over stockholder approvals and influence over his own compensation weaken minority-holder oversight. A lead independent director and a favorable internal-control audit provide safeguards, but do not remove the disclosed structural conflicts.
Evidence
We offer our customers access to all tradable classes of primarily exchange-listed products, including stocks, options, futures, forex, bonds, mutual funds, ETFs, precious metals, cryptocurrencies, and forecast contracts traded on more than 170 electronic exchanges and market centers in 40 countries and in 29 currencies around the world.
Item 1, Business: global products and market access · Filed 27/02/2026
Since the launching of our electronic brokerage business in 1993, we have grown to approximately 4.4 million institutional and individual brokerage customers.
Item 1, Business: brokerage history and customer base · Filed 27/02/2026
We are able to provide our customers with high-speed trade execution at low commission rates, in large part because of our proprietary technology.
Item 1, Business: issuer attribution of low commissions to proprietary technology · Filed 27/02/2026
and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (in millions, except share or per share amounts) 2026 2025 2026 2025 Revenues Commissions $ 673 $ 516 $ 1,286 $ 1,030 Other fees and services 87 62 173 140 Other income 79 42 145 107 Total non-interest income 839 620 1,604 1,277 Interest income 2,236 1,891 4,183 3,609 Interest expense (1,179 ) (1,031 ) (2,222 ) (1,979 ) Total net interest income 1,057 860 1,961 1,630 Total net revenues 1,896 1,480 3,565 2,907 Non-interest expenses Execution, clearing and distribution fees 142 116 248 237 Employee compensation and benefits 182 163 349 317 Occupancy, depreciation and amortization 27 24 54 48 Communications 11 11 23 21 General and administrative 68 61 136 123 Customer bad debt 10 1 11 2 Total non-interest expenses 440 376 821 748 Income before income taxes 1,456 1,104 2,744 2,159 Income tax expense 118 98 235 189 Net income 1,338 1,006 2,509 1,970 Less net income attributable to noncontrolling interests 1,026 782 1,930 1,533 Net income available for common stockholders $ 312 $ 224 $ 579 $ 437 Earnings per share Basic $ 0.70 $ 0.51 $ 1.30 $ 1.00 Diluted $ 0.69 $ 0.51 $ 1.29 $ 0.99 Weighted average common shares outstanding Basic 447,903,860 438,457,863 446,682,859 437,083,330 Diluted 450,088,032 441,439,924 449,235,445 440,459,081 Comprehensive income Net income available for common stockholders $ 312 $ 224 $ 579 $ 437 Other comprehensive income Cumulative translation adjustment, before income taxes (15 ) 79 (36 ) 107 Income taxes related to items of other comprehensive income — — — — Other comprehensive income (loss), net of tax (15 ) 79 (36 ) 107 Comprehensive income available for common stockholders $ 297 $ 303 $ 543 $ 544 Comprehensive income attributable to noncontrolling interests Net income attributable to noncontrolling interests $ 1,026 $ 782 $ 1,930 $ 1,533 Other comprehensive income - cumulative translation adjustment (42 ) 227 (100 ) 306 Comprehensive income attributable to noncontrolling interests $ 984 $ 1,009 $ 1,830 $ 1,839 See accompanying notes to the condensed consolidated financial statements.
Condensed consolidated statements of comprehensive income: comparative revenue, expenses and earnings · Filed 06/08/2026
Total DARTs for the current quarter increased 36% to 4.8 million, compared to 3.6 million for the prior-year quarter.
Item 2, MD&A: daily average revenue trades · Filed 06/08/2026
Our capital expenditures are comprised of compensation costs of our software engineering staff for development of software for internal use and expenditures for computer, networking and communications hardware, and leasehold improvements.
Item 2, MD&A, Capital Expenditures: software and infrastructure investment composition · Filed 06/08/2026
Capital expenditures for property, equipment, and intangible assets were $44 million and $30 million for the six months ended June 30, 2026 and 2025, respectively.
Item 2, MD&A, Capital Expenditures: actual first-half spending · Filed 06/08/2026
Our current and potential future competition principally comes from five categories of competitors: • prime brokers who, in an effort to satisfy the demands of their customers for hands-on electronic trading facilities, universal access to markets, smart routing, better trading tools, and lower commissions and financing rates, have embarked upon building such facilities and product and service enhancements; • direct market access and online equity brokers, and online options and futures firms; • zero commission brokers, while technically not offering direct market access, who use simplified interfaces and a limited product offering to attract new market participants; • software development firms and vendors who create global trading networks and analytical tools and make them available to brokers; and • traditional brokers.
Item 1A, Risk Factors: competing brokerage and technology business models · Filed 27/02/2026
A number of brokers provide our technology and execution services to their customers, and these brokers can become our competitors if they develop their own technology.
Item 1A, Risk Factors: technology customers potentially becoming competitors · Filed 27/02/2026
• Consolidation among market centers may adversely affect the value of our IB SmartRoutingSM software.
Item 2, MD&A, Certain Trends and Uncertainties: market-center consolidation · Filed 06/08/2026
Average commission per commissionable order for cleared customers decreased slightly to $2.64 for the current quarter compared to $2.65 for the prior-year quarter, primarily due to smaller order sizes in foreign exchange and greater capture of liquidity rebates.
Item 2, MD&A, Commissions: realized average commission per order · Filed 06/08/2026
28 Table of Contents Our reliance on our computer software could cause us great financial harm in the event of any disruption or corruption of our computer software.
Item 1A, Risk Factors: software disruption exposure · Filed 27/02/2026
On July 15, 2025, OFAC announced that IB LLC had settled the matter and paid OFAC a penalty of $11.8 million, concluding the matter.
Financial statement notes, Regulatory Matters: settled OFAC penalty · Filed 27/02/2026
Our commission structure allows customers to choose between (1) an all‑inclusive fixed, or “bundled”, rate; (2) a tiered, or “unbundled”, rate that offers lower commissions for high volume customers where we pass through regulatory and exchange fees; and (3) our IBKR LiteSM offering, which provides commission-free trades on U.S.
Item 2, MD&A, Commissions: fixed, tiered and commission-free pricing choices · Filed 06/08/2026
Commissions, for the current quarter, increased $157 million, or 30%, compared to the prior-year quarter, to $673 million, driven by higher customer trading volumes in options, stocks and futures.
Item 2, MD&A, Commissions: revenue growth attributed to trading volumes · Filed 06/08/2026
Net interest income on customer balances, for the current six-month period, increased $336 million compared to the prior-year six-month period, driven by increases of $40.6 billion, $30.3 billion, and $18.1 billion in average customer credit balances, margin loans, and segregated cash and securities, respectively.
Item 2, MD&A: average customer balances and margin-loan growth · Filed 06/08/2026
Yields on all three components decreased as rates have declined worldwide.
Item 2, MD&A: declining yields · Filed 06/08/2026
Furthermore, because interest, when benchmark rates are at sufficiently high levels, is paid only on eligible cash credit balances (i.e., balances over $10 thousand or equivalent, in securities accounts with over $100 thousand in equity, and in smaller accounts at reduced rates), changes in benchmark interest rates are not passed through to the total amount of customer credit balances.
Item 2, MD&A: eligibility thresholds and reduced rates on customer cash interest · Filed 06/08/2026
and Subsidiaries Condensed Consolidated Statements of Financial Condition (Unaudited) June 30, December 31, (in millions, except share amounts) 2026 2025 Assets Cash and cash equivalents $ 7,711 $ 4,963 Cash - segregated for regulatory purposes 56,594 50,332 Securities - segregated for regulatory purposes 39,604 26,521 Securities borrowed 10,006 11,589 Securities purchased under agreements to resell 13,627 7,117 Financial instruments owned, at fair value Financial instruments owned 3,161 4,873 Financial instruments owned and pledged as collateral 156 109 Total financial instruments owned, at fair value 3,317 4,982 Receivables Customers, less allowance for credit losses of $34 and $24 as of June 30, 2026 and December 31, 2025 108,939 90,475 Brokers, dealers, and clearing organizations 5,120 5,161 Interest 592 530 Total receivables 114,651 96,166 Other assets 1,799 1,570 Total assets $ 247,309 $ 203,240 Liabilities and equity Short-term borrowings $ 13 $ 19 Securities loaned 45,410 24,751 Financial instruments sold, but not yet purchased, at fair value 509 740 Payables Customers 176,779 154,336 Brokers, dealers, and clearing organizations 819 1,566 Affiliate 208 217 Accounts payable, accrued expenses and other liabilities 973 818 Interest 348 321 Total payables 179,127 157,258 Total liabilities 225,059 182,768 Commitments, contingencies and guarantees (see Note 13) Equity Stockholders’ equity Common stock, $0.01 par value per share Class A – Authorized - 4,000,000,000 shares, Issued - 451,188,893 and 446,130,605 shares, Outstanding – 450,571,783 and 445,413,716 shares as of June 30, 2026 and December 31, 2025 1 1 Class B – Authorized - 1,000 shares, Issued and Outstanding – 400 shares as of June 30, 2026 and December 31, 2025 — — Additional paid-in capital 2,023 1,957 Retained earnings 3,869 3,365 Accumulated other comprehensive income, net of income taxes of $0 as of both June 30, 2026 and December 31, 2025 20 56 Treasury stock, at cost, 617,110 and 716,889 shares as of June 30, 2026 and December 31, 2025 (9 ) (16 ) Total stockholders’ equity 5,904 5,363 Noncontrolling interests 16,346 15,109 Total equity 22,250 20,472 Total liabilities and equity $ 247,309 $ 203,240 See accompanying notes to the condensed consolidated financial statements.
Condensed consolidated statements of financial condition: cash, borrowings and equity · Filed 06/08/2026
As of June 30, 2026, all regulated operating subsidiaries were in compliance with their respective regulatory capital requirements.
Financial statement notes, Regulatory Requirements: subsidiary capital compliance · Filed 06/08/2026
In fiscal year 2025, the aggregate base salaries of our named executive officers constituted approximately 10% of their total aggregate compensation, cash bonuses constituted approximately 24%, stock awards (as described below) constituted approximately 62%, and other compensation constituted the remaining 4%.
Compensation Discussion and Analysis: actual 2025 executive compensation mix · Filed 11/03/2026
For awards granted on December 31, 2021 onwards, restricted stock units vest and become distributable to participants 20% on each vesting date, which is on or about May 9 of each year, assuming continued employment with the Company and compliance with non-competition and other applicable covenants.
Financial statement notes, Employee Incentive Plans: existing RSU vesting conditions · Filed 06/08/2026
We evaluate individual and company performance in a qualitative fashion; we do not utilize specific financial or operating performance goals or targets in setting executive compensation.
Compensation Discussion and Analysis: qualitative performance evaluation without specified targets · Filed 11/03/2026
Thomas Peterffy, through his indirect ownership of the voting membership interests in Holdings, is able to exercise control over all matters requiring the approval of our stockholders, including the election of our directors and the approval of significant corporate transactions.
Beneficial Ownership: Peterffy's control over stockholder approvals · Filed 11/03/2026
Peterffy is able to influence all matters relating to executive compensation, including his own compensation.
Item 1A, Risk Factors: compensation-setting conflict · Filed 27/02/2026
Director Independence Dr. Lawrence Harris serves as Lead Independent Director.
Corporate Governance, Director Independence: lead independent director · Filed 11/03/2026
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 27, 2026, expressed an unqualified opinion on the Company's internal control over financial reporting.
Independent auditor's report: internal control opinion as of December 31, 2025 · Filed 27/02/2026
Nemser 12/31/2019 7,008 (3) $450,684 12/31/2020 17,156 (4) $1,103,302 12/31/2021 10,376 (3) $667,281 4/25/2022 156 (3) $10,032 12/31/2022 23,928 (4) $1,538,810 12/31/2023 35,472 (5) $2,281,204 12/31/2024 24,844 (6) $1,597,718 12/31/2025 23,240 (7) $1,494,564 Total 142,180 $9,143,595 Milan Galik 12/31/2019 68,796 (3) $4,424,271 12/31/2020 135,976 (4) $8,744,617 12/31/2021 88,176 (3) $5,670,599 4/25/2022 156 (3) $10,032 12/31/2022 217,508 (4) $13,987,939 12/31/2023 325,148 (5) $20,910,268 12/31/2024 221,776 (6) $14,262,415 12/31/2025 224,650 (7) $14,447,242 Total 1,282,186 $82,457,383 Paul J.
Outstanding Awards at Fiscal Year End: actual unvested executive equity awards · Filed 11/03/2026
During the current six-month period, net interest earned from securities lending transactions increased $7 million, or 10%, compared to the prior-year six-month period, driven by (1) our growing account base, which increases our inventory of attractive stocks to lend, including international securities; (2) the interest we pay on short cash balances, which makes us attractive to investors who utilize short selling; (3) our fully-paid lending program shares proceeds with clients generally on a 50/50 basis, which appeals to investors looking to maximize the return on their portfolios; and (4) more activity in some of the typical drivers of securities lending, including IPOs and merger and acquisition activity.
Item 2, MD&A: securities-lending income and issuer explanation of customer-base benefits · Filed 06/08/2026
Payments Due by Year Total 2026-2027 2028-2029 Thereafter (in millions) Payable to Holdings under Tax Receivable Agreement (1) $ 217 $ 28 $ 33 $ 156 Operating leases 184 62 49 73 Total contractual cash obligations $ 401 $ 90 $ 82 $ 229 (1) As of December 31, 2025, contractual amounts owed under the Tax Receivable Agreement of $217 million have been reported in payables to affiliate in the consolidated financial statements, representing management’s best estimate of the amounts currently expected to be owed under the Tax Receivable Agreement.
MD&A, Contractual Obligations Summary: leases and tax receivable agreement obligations · Filed 27/02/2026
