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After a massive multiyear run that saw its shares more than double, Interactive Brokers (NASDAQ: IBKR) is making its stock more accessible to investors. Management just announced a 4-for-1 stock split, effective in June. The move that will increase the number of shares and decrease the share price comes as Interactive Brokers reported another quarter of staggering growth.
The stock split may grab headlines, but the real story is the strength of the underlying business. Over the last few years, Interactive Brokers has become one of the most consistently growing companies in financial services. And that growth continued in the first quarter of 2025. With key metrics across revenue, trading activity, and customer accounts all posting strong double-digit gains, the company continues to build on its long-term track record of efficient, technology-driven expansion.
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A strategic move amid strong growth
Interactive Brokers announced a 4-for-1 forward stock split, scheduled to take effect on June 18, 2025. Shareholders of record as of June 16 will receive three additional shares for each share held.
While stock splits don't change the value of a company, they can signal management's confidence in the business. After all, why go through the effort of splitting a stock if you don't think there's a good chance shares will continue rising over the long haul?
To this end, the stock split announcement is supported by exceptional fundamentals. Interactive Brokers' revenue for its first quarter of 2025 totaled $1.43 billion, up 19% year over year. One of the most impressive drivers was daily average revenue trades (DARTs), which came in at 3.52 million and were up 50% year over year. But there was plenty more to like about the quarter. Customer accounts rose 32% year over year to 3.62 million, while customer equity increased 23% to $573.5 billion.
"We saw in the first quarter the value of a global automated platform that can leverage its low costs and offer a broad range of products and markets," said Interactive Brokers investor relations chief Nancy Stuebe in the company's first-quarter earnings call.
A buying opportunity?
Notably, Interactive Brokers stock actually fell when the stock brokerage announced its first-quarter earnings release and its stock split on Wednesday afternoon. One key reason for this was likely due to the company's adjusted earnings per share of $1.88, which was up from $1.64 in the year-ago quarter but below analysts' consensus forecast for the key metric. Shares fell about 10% after the report -- a move that may have been an overreaction given the company's strong business momentum.