TLDR:
- Interactive Brokers reported Q1 EPS of $1.88, beating one estimate ($1.87) but missing another ($1.92)
- Revenue came in at $1.43B, topping the consensus estimate of $1.38B
- IBKR stock closed at $173.42, down 8.77% over 3 months but up 61.49% over 12 months
- The company has received 7 positive EPS revisions and 0 negative revisions in the last 90 days
- While IBKR has outperformed the S&P 500 YTD (-2.1% vs -8.1%), analysts have mixed opinions on future performance
Interactive Brokers Group has posted its first-quarter results for 2025, showing some positive signs despite conflicting analyst interpretations. The online brokerage firm reported earnings per share of $1.88, which beat one analyst estimate of $1.87 but fell short of the Zacks Consensus Estimate of $1.92 per share.
Revenue for the quarter reached $1.43 billion, exceeding one consensus estimate of $1.38 billion. However, Zacks reported that this figure missed their estimate by 2.25% when rounded to $1.4 billion.
Compared to the same period last year, Interactive Brokers showed growth in both earnings and revenue. The current EPS of $1.88 represents an improvement from the $1.64 per share reported a year ago. Revenue also increased from $1.2 billion in the year-ago quarter.
Mixed Performance Record
The company’s recent earnings history shows inconsistency in meeting analyst expectations. Over the last four quarters, Interactive Brokers has surpassed consensus EPS estimates only twice.
The first quarter result represents an earnings surprise of -2.08% according to Zacks. This follows a positive surprise of 9.14% in the previous quarter, when the company posted earnings of $2.03 per share against expectations of $1.86.
Similarly, on the revenue front, the company has topped consensus estimates in just two of the last four quarters.
Interactive Brokers stock closed at $173.42 following the announcement. The stock has experienced mixed performance recently, falling 8.77% over the past three months but gaining an impressive 61.49% over the last 12 months.
Since the beginning of 2025, IBKR shares have lost about 2.1%, though this still outperforms the broader market. For comparison, the S&P 500 has declined 8.1% during the same period.
Analyst Outlook Remains Positive
Despite the mixed earnings results, the overall analyst sentiment for Interactive Brokers appears favorable. The company has received 7 positive EPS revisions in the last 90 days, with no negative revisions during the same period.
According to InvestingPro, Interactive Brokers’ Financial Health score is categorized as “great performance.” The positive revision trend has translated into a Zacks Rank #2 (Buy) rating for the stock, suggesting that analysts expect it to outperform the market in the near future.
Looking ahead, analysts project earnings of $1.78 per share on revenue of $1.37 billion for the coming quarter. For the full fiscal year 2025, the consensus estimates stand at $7.20 EPS on $5.56 billion in revenues.
Industry context may present challenges for Interactive Brokers. The Financial – Investment Bank sector currently ranks in the bottom 33% of industries tracked by Zacks. Research indicates that top-ranked industries typically outperform lower-ranked ones by a factor of more than 2 to 1.
Despite this industry headwind, the company’s ability to grow year-over-year in both earnings and revenue suggests underlying business strength. The quarterly earnings of $1.88 represent a 14.6% increase from the $1.64 per share reported in the same quarter last year.
Revenue growth of approximately 16.7% year-over-year (from $1.2 billion to $1.4 billion) demonstrates that Interactive Brokers continues to expand its business even in a challenging market environment.
The stock’s price movement following the earnings announcement will likely depend heavily on management commentary from the earnings call, as investors seek clarity on the company’s strategy and outlook for the remainder of 2025.
Interactive Brokers shares have lost about 2.1% since the beginning of the year, though this decline is less severe than the overall market downturn, indicating relative strength in a difficult trading environment.
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