Earnings Reports - Amazon.com, Inc. reported fourth-quarter net sales of $213.39 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $211.30 billion [2] - The company's earnings per share for the fourth quarter were $1.95, which fell short of the Street consensus estimate of $1.97 [2] - Interactive Brokers Group, Inc. reported quarterly earnings of 65 cents per share, exceeding the consensus estimate of 59 cents [4] - Interactive Brokers' quarterly revenue was $1.64 billion, beating the analyst consensus estimate of $1.61 billion and up from $1.39 billion in the same period last year [4] Stock Performance - Horizon Kinetics Inflation Beneficiaries ETF gained 2.2% on Monday [5] - Amazon shares decreased by 0.8%, closing at $208.72 during the session [5] - Transocean Ltd. shares increased by 5.9%, settling at $5.71 on Monday [5] - Interactive Brokers shares rose by 5.1%, closing at $78.42 during the session [5] Investment Picks - Bryn Talkington named Horizon Kinetics Inflation Beneficiaries ETF as her final trade [1] - Stephen Weiss selected Amazon.com, Inc. as his final trade [1] - Jim Lebenthal chose Transocean Ltd. as his final trade [2] - Joe Terranova indicated that Interactive Brokers Group, Inc. is poised to reach a new all-time high [3]

Group 1 - The article does not contain relevant content regarding company or industry insights [1]

Question-and-Answer SessionSo I wanted to start with a kind of high-level macro questions. So what are your thoughts on the current market environment with markets kind of near historic highs, but certainly a little bit of angst in the market? And then what are your kind of current thoughts on account growth here as we think about maybe the next 12 to 24 months?Paul BrodyCFO, Treasurer, Secretary & Director Well, we do a lot of things if market prognostication is not really one of them. We follow along with ...

ConversationNaomi JamesChief Executive Officer And welcome, everyone. Thank you for joining us today. It's great to see so many of you here, including many investors who've traveled from Australia. This morning, some of you visited our William Sanders Retirement Village located in Devonport, just across the harbor from Auckland CBD. William Sanders is a great example of a vertical high-density village in a metro location, which has filled quickly since opening in 2019, with strong demand from people wanting ...

Brody also pointed to growth in the Introducing Broker channel, participation from banks and smaller introducing firms, and a Financial Advisors business model that avoids competing with external advisors by not having in-house advisors. He said the hedge fund segment is “going nicely,” supported by stepped-up “high-touch service,” with prop traders rounding out the segments.On account growth, Brody said Interactive Brokers’ five segments are “all growing, pretty rapidly,” describing the overall environment ...

Summary of Interactive Brokers Group (NasdaqGS:IBKR) 2026 Conference Call Company Overview - **Company**: Interactive Brokers Group (IBKR) - **Industry**: Electronic Brokerage - **Client Base**: Serves clients in over 200 countries and territories - **Daily Trades**: Executes more than 4 million trades per day - **Client Equity**: Manages nearly $780 billion in client equity [2][4] Core Insights and Arguments Market Environment and Account Growth - The current market is near historic highs, but there is some market angst - IBKR's client base reflects market activity; when markets are active, client engagement increases, driving commission revenue and margin lending - All five client segments are growing rapidly, with the individual segment seeing organic growth through word of mouth and increased advertising [4][5] Technological Advancements and Innovations - IBKR emphasizes its technological advantage and continuous innovation - New offerings include Forecast contracts and the ForecastEx exchange, which are expected to have significant potential in the market [6][7] - The company is cautious about the adoption of new products, indicating that market development takes time [8] Geographic Expansion - IBKR is expanding geographically without specific constraints, although regulatory environments can be challenging - Growth is observed across Europe, Asia, and Latin America, with local market additions enhancing client engagement [15][16] Net Interest Income (NII) - NII is derived from client credit balances, margin lending, and other sources, with a transparent fixed spread model - In the U.S., eligible balances earn Fed funds less 50 basis points, which is competitive compared to banks [17][18] Client Cash Management - Client cash behavior is influenced by market conditions, with cash balances increasing during market downturns - The company supports client trading decisions while benefiting from net interest income on cash [20][21] Artificial Intelligence (AI) Deployment - IBKR is actively deploying AI for client inquiries and internal efficiency, with a focus on improving response accuracy - AI tools are made available to all staff to enhance productivity [22][23] Revenue Generation and Pricing Power - The primary revenue source is commission income, with a focus on providing best execution for clients - IBKR maintains a low-cost model, with no plans to increase rates as they remain competitive [29][33] Margin Loan Growth and Risk Management - Margin loans are at an all-time high, with conservative risk management practices in place - The company runs various risk scenarios and stress tests to manage credit risk effectively [39][40] Capital Allocation and Shareholder Returns - IBKR has over $20 billion in capital, which attracts larger clients and provides a buffer during market volatility - The company targets a dividend return of approximately 0.5%-1% while focusing on organic growth rather than buybacks [59][60] M&A Considerations - IBKR is not actively pursuing M&A opportunities, focusing instead on organic growth - The company evaluates potential acquisitions based on strategic fit and core strengths [63][64] Additional Important Insights - IBKR is cautious about tokenization, questioning its economic value and market efficiency [46][47] - The company is exploring the establishment of a custody bank to enhance service offerings for fund customers [48][49] - Forecast contracts are seen as a significant area for future product development, with a focus on environmental contracts [52][53] This summary encapsulates the key points discussed during the conference call, highlighting the strategic direction and operational insights of Interactive Brokers Group.

Core Insights - Interactive Brokers Group, Inc. (IBKR) shares have increased by 31.9% over the past year, outperforming the industry growth of 25.4% and the S&P 500 index's rise of 16.7% [1] - The company has seen significant growth in customer accounts and daily average revenue trades (DARTs), leading to a 22% increase in commissions [3] - Analysts are optimistic about IBKR's earnings growth potential, with upward revisions for 2026 and 2027 earnings estimates indicating year-over-year growth rates of 7.3% and 6.7% respectively [22] Price Performance - IBKR's stock performance has been strong, with a notable increase compared to its peers, Robinhood Markets, Inc. (HOOD) and LPL Financial Holdings Inc. (LPLA), which gained 47.2% and 5.2% respectively [1] - The company became part of the S&P 500 index in August 2025, reflecting its strong market position [3] Growth Drivers - Technology-Driven Advantage: IBKR's technology-driven platform has kept compensation expenses low at 10.1% of net revenues in 2025, enabling strong operating leverage and sustained growth [5] - Revenue Growth: Total net revenues have experienced a compound annual growth rate (CAGR) of 22.8% from 2020 to 2025, supported by solid DART trends and a favorable trading environment [6] - Diversified Product Line: The company has expanded its product offerings, including enabling clients to fund accounts with stablecoins and launching the Karta Visa card [7][10] Global Expansion Strategy - IBKR has been actively expanding its global footprint, allowing clients to trade on various international exchanges and entering new markets [14][15] - The company has broadened access to Latin American markets and added equities from the United Arab Emirates, enhancing cross-border investing opportunities [14] Capital Distributions - IBKR has a strong track record of consistent dividend payments, raising its quarterly dividend by 28% in April 2025 and implementing a four-for-one stock split in June 2025 to improve share affordability [16][17]

Core Viewpoint - Interactive Brokers continues to report strong growth and gain market share, leading to a significant increase in stock price, with shares rising 16.4% last month [1]. Group 1: Company Performance - Interactive Brokers has a market capitalization of $33 billion and a gross margin of 95.97% [2]. - The company added 4.4 million customer accounts by the end of 2025, reflecting a 32% year-over-year growth in December, indicating a faster growth rate than the overall trading population [3]. - Commission revenue increased by 22% year-over-year last quarter, while net interest income rose by 20%, contributing to a pre-tax profit margin of 79%, one of the highest globally [4]. Group 2: Investment Potential - Over the past decade, Interactive Brokers' stock has appreciated over 900%, and currently trades at a price-to-earnings ratio (P/E) of 33.2 [5]. - Despite the seemingly high P/E ratio, the company is expected to grow into this valuation if it maintains a 32% annual customer growth rate, targeting a vast pool of potential stock traders worldwide [6]. - As the customer base expands, commission revenue and net interest income are projected to increase, driving consolidated earnings higher throughout the decade, making the stock a favorable long-term investment [7].

Core Insights - Interactive Brokers (IBKR) reported strong growth in its Electronic Brokerage monthly performance metrics for January, indicating robust client activity and increasing equity balances. Group 1: Performance Metrics - Daily Average Revenue Trades (DARTs) reached 4.411 million, a 27% increase year-over-year and a 30% increase month-over-month [1] - Ending client equity stood at $814.3 billion, reflecting a 38% increase year-over-year and a 4% increase month-over-month [1] - Ending client margin loan balances were $91.2 billion, which is 41% higher than the previous year and 1% higher than the previous month [1] - Ending client credit balances totaled $162.6 billion, including $6.2 billion in insured bank deposit sweeps, marking a 35% increase year-over-year and a 2% increase month-over-month [1] - The number of client accounts reached 4.539 million, a 32% increase year-over-year and a 3% increase month-over-month [1] - The annualized average cleared DARTs per client account was 211 [1] - The average commission per cleared Commissionable Order was $2.62, inclusive of exchange, clearing, and regulatory fees [1]

Core Insights - Interactive Brokers has launched Registered Retirement Income Funds (RRIF) aimed at Canadian residents, providing a retirement drawdown solution that aligns with government regulations while offering flexibility in managing retirement funds [1][4]. Group 1: Product Features - The RRIF is available on the same trading platforms as other registered accounts, such as the Tax-Free Savings Account (TFSA) and First Home Savings Account (FHSA), allowing Canadian investors to trade various products and manage their portfolios efficiently from a single interface [3][4]. - Key features of the RRIF include seamless conversion from existing Registered Retirement Savings Plans (RRSP) without the need to transfer assets, access to diverse investment products (stocks, options, bonds, ETFs), low-cost trading with competitive commissions, and advanced tools for portfolio analytics and automated minimum withdrawal calculations [6]. Group 2: Company Commitment - The introduction of the RRIF reflects Interactive Brokers' commitment to providing innovative financial solutions for investors globally, enhancing the range of retirement and investment choices available to Canadian clients [2][4]. - The addition of RRIFs confirms the company's dedication to the professional investment adviser channel in Canada, aiming to consolidate more client assets and improve business management for advisers [4].