EX-99.1 2 ibkr-8k_20250630er.htm 2Q25 EARNINGS RELEASE
Exhibit 99.1

INTERACTIVE BROKERS GROUP ANNOUNCES 2Q2025 RESULTS

— — —

GAAP DILUTED EPS OF $0.51, ADJUSTED1 EPS OF $0.51
GAAP NET REVENUES OF $1,480 MILLION, ADJUSTED NET REVENUES OF $1,480 MILLION

GREENWICH, CT, July 17, 2025 — Interactive Brokers Group, Inc. (Nasdaq: IBKR), an automated global electronic broker, announced results for the quarter ended June 30, 2025.

Reported and adjusted diluted earnings per share were both $0.51 for the current quarter. For the year-ago quarter, reported diluted earnings per share2 were $0.41 and $0.44 as adjusted.

Reported and adjusted net revenues were both $1,480 million for the current quarter. For the year-ago quarter, reported net revenues were $1,230 million and $1,290 million as adjusted.

Reported and adjusted income before income taxes were both $1,104 million for the current quarter. For the year-ago quarter, reported income before income taxes was $880 million and $940 million as adjusted.

Financial Highlights
(All comparisons are to the year-ago quarter.)

Commission revenue increased 27% to 516 million on higher customer trading volumes. Customer trading volume in stocks, options and futures increased 31%, 24% and 18%, respectively.

Net interest income increased 9% to $860 million on higher average customer credit balances and securities lending activity. Net interest income includes an approximately $26 million one-time credit related to recovery of taxes withheld at source.

Other fees and services decreased 9% to $62 million, led by a decrease of $7 million in risk exposure fees, which was partially offset by a $2 million increase in FDIC sweep fees.

Execution, clearing and distribution fees increased 1% to $116 million, driven by a new FINRA Consolidated Audit Trail (“CAT”) fee initiated during the fourth quarter of 2024 and higher customer trading volumes in stocks, options and futures, mostly offset by greater capture of liquidity rebates from certain exchanges.

General and administrative expenses increased 17% to $61 million, driven primarily by an increase of $8 million in advertising expenses.

Pretax profit margin for the current quarter was 75% both as reported and as adjusted. For the year-ago quarter, pretax margin was 72% as reported and 73% as adjusted.

Total equity of $18.5 billion.

The Interactive Brokers Group, Inc. Board of Directors declared a quarterly cash dividend of $0.08 per share. This dividend is payable on September 12, 2025, to shareholders of record as of September 1, 2025.



1 See the reconciliation of non-GAAP financial measures starting on page 10.
2 Prior period share and per share amounts have been retroactively adjusted to reflect the four-for-one forward stock split, effected in the form of a stock dividend, on June 17, 2025.
1

Business Highlights
(All comparisons are to the year-ago quarter.)

Customer accounts increased 32% to 3.87 million.
Customer equity increased 34% to $664.6 billion.
Total DARTs3 increased 49% to 3.55 million.
Customer credits increased 34% to $143.7 billion.
Customer margin loans increased 18% to $65.1 billion.

Other Items

Other income increased $78 million to a gain of $42 million. This gain mainly comprised (1) the non-recurrence of a loss of approximately $48 million on positions taken over as a customer accommodation due to a technical issue at the New York Stock Exchange that occurred on the morning of June 3, 2024; (2) $17 million related to our principal trading and investing activities; and (3) $15 million related to our currency diversification strategy.

In connection with our currency diversification strategy, we base our net worth in GLOBALs, a basket of 10 major currencies in which we hold our equity. In this quarter, our currency diversification strategy increased our comprehensive earnings by $301 million, as the U.S. dollar value of the GLOBAL increased by approximately 1.62%. The effects of the currency diversification strategy are reported as components of (1) Other Income (loss of $5 million) and (2) Other Comprehensive Income (gain of $306 million).

Conference Call Information:

Interactive Brokers Group, Inc. will hold a conference call with investors today, July 17, 2025, at 4:30 p.m. ET to discuss its quarterly results. Members of the public who would like to listen to the conference call should register at https://register-conf.media-server.com/register/BI1980d5d059964abab3dd6c86da65d04e to obtain the dial-in details. The number should be dialed approximately ten minutes prior to the start of the conference call. The conference call will also be accessible simultaneously, and through replays, as an audio webcast through the Investor Relations section of the Interactive Brokers web site, www.interactivebrokers.com/ir.

About Interactive Brokers Group, Inc.:

Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities, foreign exchange, and forecast contracts around the clock on over 160 markets in numerous countries and currencies from a single unified platform to clients worldwide. We serve individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation have enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments. Interactive Brokers has consistently earned recognition as a top broker, garnering multiple awards and accolades from respected industry sources such as Barron's, Investopedia, Stockbrokers.com, and many others.



3 Daily average revenue trades (DARTs) are based on customer orders.
2


Cautionary Note Regarding Forward-Looking Statements:

The foregoing information contains certain forward-looking statements that reflect the Company’s current views with respect to certain current and future events and financial performance. These forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company’s operations and business environment which may cause the Company’s actual results to be materially different from any future results, expressed or implied, in these forward-looking statements. Any forward-looking statements in this release are based upon information available to the Company on the date of this release. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the Company’s financial results may be found in the Company’s filings with the Securities and Exchange Commission.

For Interactive Brokers Group, Inc. Investors: Nancy Stuebe, investor-relations@ibkr.com or Media: Rob Garfield, media@ibkr.com.
3

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

       
Three Months
 
Six Months
       
Ended June 30,
 
Ended June 30,
       
2025
 
2024
 
2025
 
2024
       
(in millions, except share and per share data)
                             
Revenues:
                       
 
Commissions
 
$
516
 
$
406
 
$
1,030
 
$
785
 
Other fees and services
   
62
   
68
   
140
   
127
 
Other income (loss)
   
42
   
(36)
   
107
   
(18)
   
Total non-interest income
   
620
   
438
   
1,277
   
894
                             
 
Interest income
   
1,891
   
1,828
   
3,609
   
3,588
 
Interest expense
   
(1,031)
   
(1,036)
   
(1,979)
   
(2,049)
   
Total net interest income
   
860
   
792
   
1,630
   
1,539
   
Total net revenues
   
1,480
   
1,230
   
2,907
   
2,433
                             
Non-interest expenses:
                       
 
Execution, clearing and distribution fees
   
116
   
115
   
237
   
216
 
Employee compensation and benefits
   
163
   
146
   
317
   
291
 
Occupancy, depreciation and amortization
 
24
   
25
   
48
   
51
 
Communications
   
11
   
10
   
21
   
20
 
General and administrative
   
61
   
52
   
123
   
102
 
Customer bad debt
   
                         1
   
                         2
   
                         2
   
                         7
   
Total non-interest expenses
   
376
   
350
   
748
   
687
                             
Income before income taxes
   
1,104
   
880
   
2,159
   
1,746
Income tax expense
   
98
   
71
   
189
   
142
                             
Net income
   
1,006
   
809
   
1,970
   
1,604
Net income attributable to noncontrolling interests
 
782
   
630
   
1,533
   
1,250
                             
Net income available for common stockholders
$
224
 
$
179
 
$
437
 
$
354
                             
Earnings per share1:
                       
 
Basic
 
$
0.51
 
$
0.42
 
$
1.00
 
$
0.82
 
Diluted
 
$
0.51
 
$
0.41
 
$
0.99
 
$
0.82
                             
Weighted average common shares outstanding1:
                 
 
Basic
   
438,457,863
   
430,876,080
   
437,083,330
   
429,579,700
 
Diluted
   
441,439,924
   
434,507,344
   
440,459,081
   
433,552,552


1 Prior period share and per share amounts have been retroactively adjusted to reflect the four-for-one forward stock split, effected in the form of a stock dividend, on June 17, 2025.

4

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
        
       
Three Months
 
Six Months
       
Ended June 30,
 
Ended June 30,
       
2025
 
2024
 
2025
 
2024
       
(in millions, except share and per share data)
                             
Comprehensive income:
                       
 
Net income available for common stockholders
 
$
224
 
$
179
 
$
437
 
$
354
 
Other comprehensive income:
                       
   
Cumulative translation adjustment, before income taxes
                       79
   
                       (2)
   
                     107
   
                     (28)
   
Income taxes related to items of other comprehensive income
 
                         -
   
                         -
   
                         -
   
                         -
 
Other comprehensive income (loss), net of tax
   
                       79
   
                       (2)
   
                     107
   
                     (28)
Comprehensive income available for common stockholders
$
303
 
$
177
 
$
544
 
$
326
                             
Comprehensive earnings per share1:
                       
 
Basic
 
$
0.69
 
$
0.41
 
$
1.24
 
$
0.76
 
Diluted
 
$
0.69
 
$
0.41
 
$
1.23
 
$
0.75
                             
Weighted average common shares outstanding1:
                       
 
Basic
   
438,457,863
   
430,876,080
   
437,083,330
   
429,579,700
 
Diluted
   
441,439,924
   
434,507,344
   
440,459,081
   
433,552,552
                             
                             
Comprehensive income attributable to noncontrolling interests:
                 
 
Net income attributable to noncontrolling interests
 
$
782
 
$
630
 
$
1,533
 
$
1,250
 
Other comprehensive income - cumulative translation adjustment
 
227
   
(8)
   
306
   
(84)
Comprehensive income attributable to noncontrolling interests
$
1,009
 
$
622
 
$
1,839
 
$
1,166


1 Prior period share and per share amounts have been retroactively adjusted to reflect the four-for-one forward stock split, effected in the form of a stock dividend, on June 17, 2025.
 
5

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)

         
June 30,
2025
 
December 31,
2024
         
(in millions)
                   
Assets
               
Cash and cash equivalents
     
$
                 4,688
 
$
                 3,633
Cash - segregated for regulatory purposes
       
               45,057
   
               36,600
Securities - segregated for regulatory purposes
       
               36,972
   
               27,846
Securities borrowed
       
               10,145
   
                 5,369
Securities purchased under agreements to resell
       
                 9,529
   
                 6,575
Financial instruments owned, at fair value
       
                 3,856
   
                 1,924
Receivables from customers, net of allowance for credit losses
     
               65,346
   
               64,432
Receivables from brokers, dealers and clearing organizations
     
                 4,074
   
                 2,196
Other assets
       
                 1,808
   
                 1,567
 
Total assets
     
$
181,475
 
$
150,142
                   
Liabilities and equity
               
                   
Liabilities
               
Short-term borrowings
     
$
                       8
 
$
                     14
Securities loaned
       
               21,229
   
               16,248
Financial instruments sold but not yet purchased, at fair value
     
                    494
   
                    293
Other payables:
               
 
Customers
       
              138,417
   
              115,343
 
Brokers, dealers and clearing organizations
       
                 1,682
   
                    476
 
Other payables
       
                 1,127
   
                 1,171
           
              141,226
   
              116,990
 
Total liabilities
       
              162,957
   
              133,545
                   
Equity
               
Stockholders' equity
       
                 4,825
   
                 4,280
Noncontrolling interests
       
               13,693
   
               12,317
 
Total equity
       
               18,518
   
               16,597
 
Total liabilities and equity
     
$
181,475
 
$
150,142
                   
   
June 30, 2025
 
December 31, 20241
Ownership of IBG LLC Membership Interests
Interests
 
 %
 
Interests
   
 %
                   
IBG, Inc.
441,569,584
 
26.0%
 
435,726,456
   
25.8%
Noncontrolling interests (IBG Holdings LLC)
1,254,573,416
 
74.0%
 
1,254,573,416
   
74.2%
                   
Total IBG LLC membership interests
1,696,143,000
 
100.0%
 
1,690,299,872
   
100.0%


1 Prior period share and per share amounts have been retroactively adjusted to reflect the four-for-one forward stock split, effected in the form of a stock dividend, on June 17, 2025.

6

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
OPERATING DATA
 
EXECUTED ORDER VOLUMES: 
(in 000's, except %)

   
Customer
 
%
 
Principal
 
%
 
Total
 
%
Period
 
Orders
 
Change
 
Orders
 
Change
 
Orders
 
Change
2022
 
     532,064
     
       26,966
     
         559,030
   
2023
 
     483,015
 
 (9%)
 
       29,712
 
10%
 
         512,727
 
 (8%)
2024
 
     661,666
 
37%
 
       63,348
 
113%
 
         725,014
 
41%
                         
2Q2024
 
     150,292
     
       13,215
     
         163,507
   
2Q2025
 
     220,215
 
47%
 
       28,372
 
115%
 
         248,587
 
52%
                         
1Q2025
 
     211,148
     
       28,393
     
         239,541
   
2Q2025
 
     220,215
 
4%
 
       28,372
 
 (0%)
 
         248,587
 
4%

CONTRACT AND SHARE VOLUMES:
(in 000's, except %)
 
TOTAL
   
Options
 
%
 
Futures1
 
%
 
Stocks
 
%
Period
 
(contracts)
 
Change
 
(contracts)
 
Change
 
(shares)
 
Change
2022
 
     908,415
     
     207,138
     
   330,035,586
   
2023
 
   1,020,736
 
12%
 
     209,034
 
1%
 
   252,742,847
 
 (23%)
2024
 
   1,344,855
 
32%
 
     218,327
 
4%
 
   307,489,711
 
22%
                         
2Q2024
 
     321,141
     
       55,171
     
     73,734,105
   
2Q2025
 
     393,051
 
22%
 
       64,271
 
16%
 
     96,450,620
 
31%
                         
1Q2025
 
     383,998
     
       61,869
     
     93,934,241
   
2Q2025
 
     393,051
 
2%
 
       64,271
 
4%
 
     96,450,620
 
3%

CUSTOMER
   
Options
 
%
 
Futures1
 
%
 
Stocks
 
%
Period
 
(contracts)
 
Change
 
(contracts)
 
Change
 
(shares)
 
Change
2022
 
     873,914
     
     203,933
     
   325,368,714
   
2023
 
     981,172
 
12%
 
     206,073
 
1%
 
   248,588,960
 
 (24%)
2024
 
   1,290,770
 
32%
 
     214,864
 
4%
 
   302,040,873
 
22%
                         
2Q2024
 
     308,298
     
       54,106
     
     72,480,534
   
2Q2025
 
     382,195
 
24%
 
       63,918
 
18%
 
     95,276,485
 
31%
                         
1Q2025
 
     369,931
     
       61,381
     
     92,763,867
   
2Q2025
 
     382,195
 
3%
 
       63,918
 
4%
 
     95,276,485
 
3%

PRINCIPAL TRANSACTIONS
   
Options
 
%
 
Futures1
 
%
 
Stocks
 
%
Period
 
(contracts)
 
Change
 
(contracts)
 
Change
 
(shares)
 
Change
2022
 
       34,501
     
         3,205
     
       4,666,872
   
2023
 
       39,564
 
15%
 
         2,961
 
 (8%)
 
       4,153,887
 
 (11%)
2024
 
       54,085
 
37%
 
         3,463
 
17%
 
       5,448,838
 
31%
                         
2Q2024
 
       12,843
     
         1,065
     
       1,253,571
   
2Q2025
 
       10,856
 
 (15%)
 
           353
 
 (67%)
 
       1,174,135
 
 (6%)
                         
1Q2025
 
       14,067
     
           488
     
       1,170,374
   
2Q2025
 
       10,856
 
 (23%)
 
           353
 
 (28%)
 
       1,174,135
 
0%


1
Includes options on futures.

7

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
OPERATING DATA, CONTINUED

CUSTOMER STATISTICS
Year over Year
   
2Q2025
   
2Q2024
 
% Change
   Total Accounts (in thousands)
   
                      3,866
   
                      2,924
 
32%
   Customer Equity (in billions)1
 
$
664.6
 
$
497.2
 
34%
                 
   Total Customer DARTs (in thousands)
   
                      3,552
   
                      2,386
 
49%
                 
Cleared Customers
               
   Commission per Cleared Commissionable Order2
 
$
2.65
 
$
3.01
 
 (12%)
   Cleared Avg. DARTs per Account (Annualized)
   
                         206
   
                         187
 
10%
                 
Consecutive Quarters
   
2Q2025
   
1Q2025
 
% Change
   Total Accounts (in thousands)
   
                      3,866
   
                      3,616
 
7%
   Customer Equity (in billions)1
 
$
664.6
 
$
573.5
 
16%
                 
   Total Customer DARTs (in thousands)
   
                      3,552
   
                      3,519
 
1%
                 
Cleared Customers
               
   Commission per Cleared Commissionable Order2
 
$
2.65
 
$
2.76
 
 (4%)
   Cleared Avg. DARTs per Account (Annualized)
   
                         206
   
                         220
 
 (6%)


1
Excludes non-customers.
   
2
Commissionable Order - a customer order that generates commissions.

8

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
NET INTEREST MARGIN
(UNAUDITED)

       
Three Months
 
Six Months
       
Ended June 30,
 
Ended June 30,
       
2025
 
2024
 
2025
 
2024
       
(in millions)
Average interest-earning assets
                       
 
Segregated cash and securities
 
$
                  78,693
 
$
                  60,057
 
$
                  72,869
 
$
                  60,595
 
Customer margin loans
   
                  60,928
   
                  52,422
   
                  62,646
   
                  49,538
 
Securities borrowed
   
                    7,027
   
                    5,898
   
                    5,949
   
                    5,633
 
Other interest-earning assets
   
                  14,747
   
                  11,218
   
                  13,601
   
                  10,585
 
FDIC sweeps1
   
                    5,226
   
                    4,023
   
                    5,006
   
                    3,942
       
$
                166,621
 
$
                133,618
 
$
                160,071
 
$
                130,293
                             
Average interest-bearing liabilities
                       
 
Customer credit balances
 
$
                129,998
 
$
                102,709
 
$
                124,010
 
$
                101,110
 
Securities loaned
   
                  17,181
   
                  13,688
   
                  16,659
   
                  12,711
 
Other interest-bearing liabilities
   
                         50
   
                           1
   
                         58
   
                           1
       
$
                147,229
 
$
                116,398
 
$
                140,727
 
$
                113,821
                             
Net interest income
                       
 
Segregated cash and securities, net2
 
$
                       756
 
$
                       740
 
$
                    1,419
 
$
                    1,504
 
Customer margin loans3
   
                       709
   
                       755
   
                    1,484
   
                    1,433
 
Securities borrowed and loaned, net
   
                         60
   
                         25
   
                         70
   
                         51
 
Customer credit balances, net3
   
                     (857)
   
                     (894)
   
                  (1,674)
   
                  (1,775)
 
Other net interest income1/4
   
                       193
   
                       179
   
                       356
   
                       354
   
Net interest income4
 
$
                       861
 
$
                       805
 
$
                    1,655
 
$
                    1,567
                             
Net interest margin ("NIM")
   
2.07%
   
2.42%
   
2.09%
   
2.42%
                             
Annualized yields
                       
 
Segregated cash and securities
   
3.86%
   
4.96%
   
3.93%
   
4.99%
 
Customer margin loans
   
4.67%
   
5.79%
   
4.78%
   
5.82%
 
Customer credit balances
   
2.64%
   
3.50%
   
2.72%
   
3.53%



 
1
Represents the average amount of customer cash swept into FDIC-insured banks as part of our Insured Bank Deposit Sweep Program. This item is not recorded in the Company's consolidated statements of financial condition. Income derived from program deposits is reported in other net interest income in the table above.
                             
2
Net interest income on “Segregated cash and securities, net” for the three and six months ended June 30, 2025, excludes approximately $26 million of interest income, recorded in the consolidated statements of comprehensive income, related to taxes withheld at source in prior periods, which during the current quarter were determined to be fully refundable.
                             
3
Interest income and interest expense on customer margin loans and customer credit balances, respectively, are calculated on daily cash balances within each customer’s account on a net basis, which may result in an offset of balances across multiple account segments (e.g., between securities and commodities segments).   
                             
4
Includes income from financial instruments that has the same characteristics as interest, but is reported in other fees and services and other income in the Company’s consolidated statements of comprehensive income. For the three and six months ended June 30, 2025 and 2024, $9 million, $17 million, $7 million, and $13 million were reported in other fees and services, respectively. For the three and six months ended June 30, 2025 and 2024, $18 million, $34 million, $6 million, and $15 million were reported in other income, respectively.

9

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED)

     
Three Months
 
Six Months
     
Ended June 30,
 
Ended June 30,
     
2025
 
2024
 
2025

2024 
     
(in millions)
                           
Adjusted net revenues1
                       
Net revenues - GAAP
 
$
1,480
 
$
1,230
 
$
2,907
 
$
2,433
                           
Non-GAAP adjustments
                       
 
Currency diversification strategy, net
   
5
   
20
   
(15)
   
22
 
Mark-to-market on investments2
   
(5)
   
                       40
   
(16)
   
                       51
Total non-GAAP adjustments
   
                         -
   
60
   
(31)
   
73
Adjusted net revenues
 
$
1,480
 
$
1,290
 
$
2,876
 
$
2,506
                           
Adjusted income before income taxes1
                       
Income before income taxes - GAAP
 
$
1,104
 
$
880
 
$
2,159
 
$
1,746
                           
Non-GAAP adjustments
                       
 
Currency diversification strategy, net
   
5
   
20
   
(15)
   
22
 
Mark-to-market on investments2
   
(5)
   
                       40
   
(16)
   
                       51
Total non-GAAP adjustments
   
                         -
   
                       60
   
                     (31)
   
                       73
Adjusted income before income taxes
 
$
1,104
 
$
940
 
$
2,128
 
$
1,819
                           
Adjusted pre-tax profit margin
   
75%
   
73%
   
74%
   
73%

10


     
Three Months
 
Six Months
     
Ended June 30,
 
Ended June 30,
     
2025
 
2024
 
2025
 
2024
     
(in millions)
Adjusted net income available for common stockholders1
                 
Net income available for common stockholders - GAAP
$
224
 
$
179
 
$
437
 
$
354
                           
Non-GAAP adjustments
                       
 
Currency diversification strategy, net
   
1
   
5
   
(4)
   
5
 
Mark-to-market on investments2
   
(1)
   
10
   
(4)
   
13
 
Income tax effect of above adjustments3
   
0
   
                       (3)
   
2
   
                       (4)
Total non-GAAP adjustments
   
                       (0)
   
                       12
   
                       (6)
   
                       14
Adjusted net income available for common stockholders
$
224
 
$
191
 
$
431
 
$
368
                           
Note: Amounts may not add due to rounding.
                       
                           
     
Three Months
 
Six Months
     
Ended June 30,
 
Ended June 30,
     
2025
 
2024
 
2025
 
2024
     
(in dollars)
Adjusted diluted EPS1/4
                       
Diluted EPS - GAAP
 
$
0.51
 
$
0.41
 
$
0.99
 
$
0.82
                           
Non-GAAP adjustments
                       
 
Currency diversification strategy, net
   
0.00
   
0.01
   
(0.01)
   
0.01
 
Mark-to-market on investments2
   
(0.00)
   
0.02
   
(0.01)
   
0.03
 
Income tax effect of above adjustments3
   
0.00
   
(0.01)
   
0.01
   
(0.01)
Total non-GAAP adjustments
   
(0.00)
   
0.03
   
(0.01)
   
0.03
Adjusted diluted EPS
 
$
0.51
 
$
0.44
 
$
0.98
 
$
0.85
                           
Diluted weighted average common shares outstanding
441,439,924
   
434,507,344
   
440,459,081
   
433,552,552
                           
Note: Amounts may not add due to rounding.
                       

11


Note: The term “GAAP” in the following explanation refers to generally accepted accounting principles in the United States.
1 Adjusted net revenues, adjusted income before income taxes, adjusted net income available for common stockholders and adjusted diluted earnings per share (“EPS”) are non-GAAP financial measures.
We define adjusted net revenues as net revenues adjusted to remove the effect of our currency diversification strategy and our net mark-to-market gains (losses) on investments2.
We define adjusted income before income taxes as income before income taxes adjusted to remove the effect of our currency diversification strategy and our net mark-to-market gains (losses) on investments.
We define adjusted net income available to common stockholders as net income available for common stockholders adjusted to remove the after-tax effects attributable to IBG, Inc. of our currency diversification strategy and our net mark-to-market gains (losses) on investments.
We define adjusted diluted EPS as adjusted net income available for common stockholders divided by the diluted weighted average number of shares outstanding for the period.
Management believes these non-GAAP items are important measures of our financial performance because they exclude certain items that may not be indicative of our core operating results and business outlook and may be useful to investors and analysts in evaluating the operating performance of the business and facilitating a meaningful comparison of our results in the current period to those in prior and future periods. Our currency diversification strategy and our mark-to-market on investments are excluded because management does not believe they are indicative of our underlying core business performance. Adjusted net revenues, adjusted income before income taxes, adjusted net income available to common stockholders and adjusted diluted EPS should be considered in addition to, rather than as a substitute for, GAAP net revenues, income before income taxes, net income attributable to common stockholders and diluted EPS.

2 Mark-to-market on investments represents the net mark-to-market gains (losses) on investments in equity securities that do not qualify for equity method accounting, which are measured at fair value; on our U.S. government and municipal securities portfolios, which are typically held to maturity; and on certain other investments.

3 The income tax effect is estimated using the statutory income tax rates applicable to the Company.
4 Prior period share and per share amounts have been retroactively adjusted to reflect the four-for-one forward stock split, effected in the form of a stock dividend, on June 17, 2025.


12