Stock Track | Interactive Brokers Stock Plunges 9.16% Pre-Market on Q1 Earnings Miss Despite Revenue Beat and Stock Split Announcement

Stock Track
16 Apr

Interactive Brokers Group Inc. (NASDAQ: IBKR) saw its shares plummet 9.16% in pre-market trading on Wednesday following the release of its first-quarter 2025 earnings report. The sharp decline came as the company's adjusted earnings per share (EPS) of $1.88 fell short of analysts' expectations of $1.92, despite beating revenue estimates and announcing a stock split and dividend increase.

The online brokerage firm reported quarterly revenue of $1.40 billion, surpassing the analyst consensus estimate of $1.39 billion and representing a 14.8% increase from the same period last year. However, investors seemed to focus on the earnings miss as a sign of potential challenges in the current market environment. Interactive Brokers also announced a four-for-one forward stock split and raised its quarterly dividend from $0.25 to $0.32 per share, but these shareholder-friendly actions failed to offset the negative sentiment surrounding the earnings miss.

Despite the disappointing EPS figure, Interactive Brokers demonstrated strong growth in several areas. The company reported a 32% year-over-year increase in total accounts to 3.62 million and a 23% rise in customer equity to $573.5 billion. Additionally, the firm's pretax profit for the quarter was $1.055 billion, slightly above the estimated $1.030 billion. As the market digests this information, investors will likely keep a close eye on Interactive Brokers' ability to meet earnings expectations in future quarters while maintaining its strong revenue growth trajectory.

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