Recent News
Late August announcements confirmed Interactive Brokers’ addition to the S&P 500 effective August 28, 2025; the change followed Walgreens Boots Alliance’s acquisition and triggered a near-term share gain. Quarterly and monthly company releases during July highlighted Q2 2025 results, a suite of product launches (Investment Themes tool, IBKR InvestMentor), and survey findings on advisor adoption of AI; July brokerage metrics showed rising client accounts and DARTs.
Technical Analysis
ADX at 13.23 indicates no strong trend; trend strength holds low despite directional signals, which tempers conviction on sustained breakout moves.
Directional indicators show DI+ at 22.07 with a dip-and-reverse (bullish) and DI- at 22.03 with a peak-and-reverse (bullish), implying directional tilt toward buyers while overall trend strength remains weak.
MACD reads 0.49 with a dip-and-reversal (bullish momentum) but sits under the signal line at 0.68, indicating rising momentum without a confirmed MACD signal-line crossover.
MRO at 20.94 (positive) signals price running above model target and a higher probability of near-term mean reversion; the recent MRO dip-and-reversal suggests that reversion pressure eased but watch for pullbacks.
RSI at 59.12 with a dip-and-reversal reflects constructive breadth without overbought extremes, supporting additional, measured upside rather than a runaway move.
Price trades above short- and long-term averages: 12-day EMA $63.32, 20-day average $62.92, 50-day average $61.70 and 200-day average $50.91, producing a bullish multi-timeframe alignment that complements the Ichimoku setup (Chikou span above the cloud, Tenkan at $62.38, Kijun at $63.98).
Bollinger structure shows the price crossing above the -1x standard deviation band and sitting closer to the upper bands (upper 1x at $63.79, upper 2x at $64.65), implying upside room but also a tightening volatility envelope; volume currently trails recent short-term average, reducing conviction on any aggressive breakout.
Fundamental Analysis
Profitability presents unusually high margin ratios: EBIT $2,135,000,000 and EBIT margin 86.47%, up 3.89 percentage points year-over-year and down 0.27 percentage points quarter-over-quarter; the EBIT margin sits materially above the industry peer mean of 14.40%, reflecting exceptional operating leverage and fee mix economics.
Operating margin reached 84.81%, up 1.90 percentage points YoY and down 2.19 percentage points QoQ, while gross margin measured 88.70%, roughly stable YoY. High margins coincide with total revenue $2,469,000,000 and YoY revenue growth of 45.46%; the reported sequential revenue figure shows a QoQ value of -250.12% per the provided metric.
Cash generation stands strong: operating cash flow $7,139,000,000, free cash flow $7,125,000,000 and free cash flow yield 27.14%, supporting balance-sheet flexibility. Cash balance reached $4,688,000,000 and cash plus short-term investments matched that amount.
Return metrics show return on equity at 4.64%, nearly in line with the industry peer mean of 4.62%, while return on assets at 0.13% falls below the industry peer mean of 1.87%; return on invested capital at 40.25% signals efficient use of invested capital but displays a large YoY swing per the supplied percentage change.
Capital structure displays minimal leverage: total debt $8,000,000, debt-to-equity roughly 0.17% and debt-to-EBITDA near 0.0037, leaving interest exposure limited despite an interest expense figure of $1,031,000,000 and an interest coverage ratio of 2.07 (below the provided industry peer mean in the dataset).
Working capital dynamics include total current assets $156,670,000,000 versus current liabilities $141,234,000,000 (current ratio 1.11) and large net receivables of $69,420,000,000, while asset turnover runs low at 1.46% versus an industry peer mean of 17.26%, indicating very light revenue per dollar of assets typical for brokerage custodial balance sheets.
Valuation context: price-to-book about 5.44x, price-to-sales near 10.63x, enterprise multiple roughly 9.99x and forward P/E approximately 28.48x. The current valuation as determined by WMDST registers as under-valued given the combination of high free-cash yield and low enterprise multiple against cash-generation metrics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-15 |
| NEXT REPORT DATE: | 2025-10-14 |
| CASH FLOW | Begin Period Cash Flow | $ 42.7 B |
| Operating Cash Flow | $ 7.1 B | |
| Capital Expenditures | $ -14.00 M | |
| Change In Working Capital | $ 6.1 B | |
| Dividends Paid | $ -35.00 M | |
| Cash Flow Delta | $ 7.1 B | |
| End Period Cash Flow | $ 49.7 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.5 B | |
| Forward Revenue | $ 2.1 B | |
| COSTS | ||
| Cost Of Revenue | $ 279.0 M | |
| Depreciation | $ 23.0 M | |
| Depreciation and Amortization | $ 23.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 375.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 2.2 B | |
| EBITDA | $ 2.2 B | |
| EBIT | $ 2.1 B | |
| Operating Income | $ 2.1 B | |
| Interest Income | — | |
| Interest Expense | $ 1.0 B | |
| Net Interest Income | $ -1.03 B | |
| Income Before Tax | $ 1.1 B | |
| Tax Provision | $ 98.0 M | |
| Tax Rate | 8.877 % | |
| Net Income | $ 224.0 M | |
| Net Income From Continuing Operations | $ 1.0 B | |
| EARNINGS | ||
| EPS Estimate | — | |
| EPS Actual | — | |
| EPS Difference | — | |
| EPS Surprise | — | |
| Forward EPS | $ 1.73 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 181.5 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 4.8 B | |
| Total Current Assets | $ 156.7 B | |
| Cash and Short-Term Investments | $ 4.7 B | |
| Cash | $ 4.7 B | |
| Net Receivables | $ 69.4 B | |
| Inventory | — | |
| Long-Term Investments | $ 1.4 B | |
| LIABILITIES | ||
| Accounts Payable | $ 140.8 B | |
| Short-Term Debt | $ 8.0 M | |
| Total Current Liabilities | $ 141.2 B | |
| Net Debt | — | |
| Total Debt | $ 8.0 M | |
| Total Liabilities | $ 163.0 B | |
| EQUITY | ||
| Total Equity | $ 4.8 B | |
| Retained Earnings | $ 2.9 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 10.93 | |
| Shares Outstanding | 441.363 M | |
| Revenue Per-Share | $ 5.59 | |
| VALUATION | Market Capitalization | $ 26.3 B |
| Enterprise Value | $ 21.6 B | |
| Enterprise Multiple | 9.992 | |
| Enterprise Multiple QoQ | 24.561 % | |
| Enterprise Multiple YoY | 114.158 % | |
| Enterprise Multiple IPRWA | high: 95.26 median: 79.114 mean: 76.507 low: 25.15 IBKR: 9.992 |
|
| EV/R | 8.738 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 37.611 | |
| Asset To Liability | 1.114 | |
| Debt To Capital | 0.002 | |
| Debt To Assets | 0.0 | |
| Debt To Assets QoQ | — | |
| Debt To Assets YoY | — | |
| Debt To Assets IPRWA | high: 0.305 median: 0.163 mean: 0.144 low: 0.039 IBKR: 0.0 |
|
| Debt To Equity | 0.002 | |
| Debt To Equity QoQ | -37.828 % | |
| Debt To Equity YoY | -40.714 % | |
| Debt To Equity IPRWA | high: 1.032 mean: 0.36 median: 0.316 IBKR: 0.002 low: -0.581 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 5.441 | |
| Price To Book QoQ | 24.038 % | |
| Price To Book YoY | 64.827 % | |
| Price To Book IPRWA | high: 9.725 IBKR: 5.441 mean: 4.799 median: 4.151 low: -4.063 |
|
| Price To Earnings (P/E) | — | |
| Price To Earnings QoQ | — | |
| Price To Earnings YoY | — | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | — | |
| Price To Sales (P/S) | 10.633 | |
| Price To Sales QoQ | 24.377 % | |
| Price To Sales YoY | 88.821 % | |
| Price To Sales IPRWA | high: 13.733 median: 13.02 mean: 11.424 IBKR: 10.633 low: 1.948 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 28.483 | |
| Forward PE/G | — | |
| Forward P/S | 12.495 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 0.957 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.015 | |
| Asset Turnover Ratio QoQ | -2.998 % | |
| Asset Turnover Ratio YoY | -14.953 % | |
| Asset Turnover Ratio IPRWA | high: 0.287 median: 0.24 mean: 0.173 low: 0.032 IBKR: 0.015 |
|
| Receivables Turnover | 0.037 | |
| Receivables Turnover Ratio QoQ | 2.888 % | |
| Receivables Turnover Ratio YoY | -14.177 % | |
| Receivables Turnover Ratio IPRWA | high: 6.525 mean: 2.616 median: 1.75 low: 0.277 IBKR: 0.037 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 2462.845 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.16 | |
| CapEx To Revenue | -0.006 | |
| CapEx To Depreciation | -0.609 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 4.8 B | |
| Net Invested Capital | $ 4.8 B | |
| Invested Capital | $ 4.8 B | |
| Net Tangible Assets | $ 4.8 B | |
| Net Working Capital | $ 15.4 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.033 | |
| Current Ratio | 1.109 | |
| Current Ratio QoQ | -1.759 % | |
| Current Ratio YoY | -3.678 % | |
| Current Ratio IPRWA | high: 5.247 mean: 1.546 IBKR: 1.109 low: 0.616 median: 0.616 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.004 | |
| Cost Of Debt | 9394.802 % | |
| Interest Coverage Ratio | 2.071 | |
| Interest Coverage Ratio QoQ | -1.991 % | |
| Interest Coverage Ratio YoY | 11.971 % | |
| Interest Coverage Ratio IPRWA | high: 6062.9 median: 6062.9 mean: 4328.378 low: 2.43 IBKR: 2.071 |
|
| Operating Cash Flow Ratio | 0.091 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 43683.864 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 6.4 | |
| Dividend Payout Ratio | 0.156 | |
| Dividend Rate | $ 0.08 | |
| Dividend Yield | 0.001 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 15.098 % | |
| Revenue Growth | 6.883 % | |
| Revenue Growth QoQ | -250.12 % | |
| Revenue Growth YoY | 45.456 % | |
| Revenue Growth IPRWA | high: 20.005 % median: 13.109 % mean: 10.988 % IBKR: 6.883 % low: -26.702 % |
|
| Earnings Growth | — | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 88.7 % | |
| Gross Margin QoQ | 0.687 % | |
| Gross Margin YoY | 0.043 % | |
| Gross Margin IPRWA | IBKR: 88.7 % high: 48.296 % mean: 34.494 % low: 31.0 % median: 31.0 % |
|
| EBIT Margin | 86.472 % | |
| EBIT Margin QoQ | -0.274 % | |
| EBIT Margin YoY | 3.893 % | |
| EBIT Margin IPRWA | IBKR: 86.472 % high: 16.594 % median: 16.594 % mean: 14.404 % low: 5.763 % |
|
| Return On Sales (ROS) | 84.812 % | |
| Return On Sales QoQ | -2.189 % | |
| Return On Sales YoY | 1.898 % | |
| Return On Sales IPRWA | IBKR: 84.812 % high: 22.853 % median: 16.594 % mean: 15.25 % low: 5.763 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 7.1 B | |
| Free Cash Flow Yield | 27.14 % | |
| Free Cash Flow Yield QoQ | 108.705 % | |
| Free Cash Flow Yield YoY | 118.519 % | |
| Free Cash Flow Yield IPRWA | IBKR: 27.14 % high: 5.356 % median: 3.974 % mean: 3.835 % low: 0.351 % |
|
| Free Cash Growth | 177.453 % | |
| Free Cash Growth QoQ | 334.221 % | |
| Free Cash Growth YoY | -4960.394 % | |
| Free Cash Growth IPRWA | IBKR: 177.453 % high: -108.21 % median: -172.314 % mean: -227.945 % low: -360.188 % |
|
| Free Cash To Net Income | 31.808 | |
| Cash Flow Margin | 522.884 % | |
| Cash Flow To Earnings | 57.634 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.07 | |
| Return On Assets (ROA) | 0.132 % | |
| Return On Assets QoQ | -4.348 % | |
| Return On Assets YoY | -0.752 % | |
| Return On Assets IPRWA | high: 3.259 % median: 2.232 % mean: 1.866 % low: 0.386 % IBKR: 0.132 % |
|
| Return On Capital Employed (ROCE) | 5.306 % | |
| Return On Equity (ROE) | 0.046 | |
| Return On Equity QoQ | -1.881 % | |
| Return On Equity YoY | 1.843 % | |
| Return On Equity IPRWA | high: 0.081 IBKR: 0.046 mean: 0.046 median: 0.034 low: -0.009 |
|
| DuPont ROE | 4.803 % | |
| Return On Invested Capital (ROIC) | 40.254 % | |
| Return On Invested Capital QoQ | -0.72 % | |
| Return On Invested Capital YoY | -189.287 % | |
| Return On Invested Capital IPRWA | IBKR: 40.254 % high: 8.565 % median: 8.565 % mean: 5.983 % low: -1.92 % |
|