Is IBKR a good stock to buy? We came across a bullish thesis on Interactive Brokers Group, Inc. on The Diversified Fins Analyst’s Substack by Collin Cook. In this article, we will summarize the bulls’ thesis on IBKR. Interactive Brokers Group, Inc.’s share was trading at $68.28 as of March 16th. IBKR’s trailing and forward P/E were 30.76 and 30.21, respectively according to Yahoo Finance.
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Interactive Brokers Group, Inc. operates as an automated electronic broker in the United States and internationally. IBKR delivered a strong fourth-quarter 2025 performance, setting new records in adjusted revenue and EPS while demonstrating disciplined expense management. Total adjusted revenue reached $1,670 million, up 17% year over year and 4% sequentially, driven by commissions growth, which rose 22% Y/Y to $582 million.
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Other fees and services increased 5% Y/Y, while net interest income grew 20% Y/Y to $966 million, reflecting robust client engagement and balance sheet growth. Operating expenses remained controlled at $343 million, essentially flat year over year, resulting in pre-tax margins of 79.5%, up 383 basis points Y/Y. Adjusted diluted EPS came in at $0.65, 27% higher than the prior year and 9% above consensus, highlighting the company’s operational efficiency and strong top-line execution.
IBKR’s key client metrics reinforce its growth story, with client accounts rising 32% Y/Y to 4.4 million and total customer equity increasing 37% to $780 billion. Daily average revenue trades grew 30% Y/Y, while average commission per order remained steady, underscoring the platform’s stickiness and broad adoption across retail, advisory, and institutional segments. The company also continues to innovate, enabling account funding via stablecoins, expanding overnight trading hours, and scaling its ForecastEx prediction markets, which are gaining traction for weather and energy-linked contracts.
Looking ahead, IBKR is well positioned for continued expansion, supported by an expected National Trust Bank Charter in the U.S., strong account growth momentum, and targeted AI initiatives that could further enhance efficiency. With record revenue, robust margins, and a scalable client base, IBKR presents a compelling investment opportunity, combining durable free cash flow generation with multiple growth catalysts, positioning the stock for meaningful upside relative to peers.
Previously, we covered a bullish thesis on Interactive Brokers Group, Inc. (IBKR) by Long-term Investing in May 2025, which highlighted IBKR’s strong financials, technological edge, and steady account growth. IBKR’s stock price has appreciated by approximately 29.85% (adjusted for stock splits) since our coverage. Collin Cook shares a similar view but emphasizes fourth-quarter 2025 record revenue, EPS growth, disciplined expenses, and innovation with stablecoin funding and ForecastEx markets.
Interactive Brokers Group, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 81 hedge fund portfolios held IBKR at the end of the fourth quarter which was 68 in the previous quarter. While we acknowledge the risk and potential of IBKR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IBKR and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
