Interactive Brokers Group Inc - Ordinary Shares - Class A

Strong financial performance; margin and profitability remain exceptional (good) - Pretax profit/margin: Pretax profit was record; 78% pretax margin (and 8th consecutive quarter >70%). - Revenue strength: - Commissions: $602M (+12% YoY), with the 3rd straight quarter >$600M. - Net interest income (NII): +$1.1B GAAP (+19% YoY) driven mainly by higher balances; continued expansion in margin borrowing as markets became more “risk-on”. - Other fees/services: $88M (+33% YoY) led by higher risk exposure fees, higher market data fees, and options volumes (including higher payments from exchange order-flow programs). - Operational scaling efficiency: Execution/clearing/distribution costs were higher YoY ($134M, +40% YoY) largely due to reinstated SEC regulatory fees (nearly passed through), leaving transactional profitability strong (execution/clearing cost = 17% of commission revenue, 83% gross transactional margin after adjusting for some non-transaction costs).

Dividend policy: meaningful raise; management reiterates likely sustainability (good + surprising) - Dividend increased to $0.60/year from $0.35 (material step-up). - Management said the dividend is guided by paying roughly 0.5%–1% of market value and they had fallen behind that guideline—so the raise is partly “catch-up.” - No cut expected: CFO/Chair commentary indicated they do not expect to cut the dividend in any scenario they can imagine “right now,” reducing near-term downside risk to income investors. - Not a buyback story on the call; capital focus was on dividends while maintaining a strong balance sheet.

Customer activity: trading moderated vs prior quarter, but underlying demand still expanding (mixed) - Despite somewhat slower overall trading activity vs Q2, overnight trading continues to rise: - Overnight trades: >10M trades this year vs 3.5M in the prior year quarter. - DARTs (trades per day): 4.3M (+18% YoY). - Commission per order declined: $2.59 (-4% YoY) due to smaller order sizes. - Volume mix shift: - Futures +13% YoY; stocks share volume -24% YoY (management attributed to more trading concentrated in larger/higher-quality names, and “low-priced stocks” driving disproportionate share volume). - Options and stocks were described as more muted. - No major concern flagged: management noted potential timing effects (IPO-related activity in the prior quarter) and expected more volatility ahead around midterm elections, which typically supports trading.