Interactive Brokers received a neutral rating from Raymond James as the online brokerage’s rapid account growth raises questions about its elevated valuation. The firm initiated coverage with a Market Perform rating, reflecting a balanced view on the stock’s prospects amid strong growth metrics.
Customer accounts at Interactive Brokers grew 34% year-on-year in the second quarter of 2026, reaching 5.2 million. This marks the fastest expansion since the first half of 2022, with net additions totaling 431,000 during the period. The company has sustained at least 15% annual net revenue growth since 2021, underpinned by increased retail-market participation.
The brokerage’s marketing expenditure over the four quarters preceding the report amounted to approximately $110 million. Despite this investment, adjusted pre-tax margins remained robust at 76.7% in 2025, highlighting operational efficiency. Average cleared trades per account rose 3.5% in 2025 after a 5.9% increase in 2024, while margin-loan utilization climbed to 11.7% of client equity by the end of Q2 2026, up from 10.4% at the end of 2023.
Raymond James’ adjusted earnings per share estimates project $2.66 for 2026, rising to $3.15 in 2027 and $3.70 in 2028. However, the stock’s forward price-to-earnings multiple of about 30 times is elevated compared with its three-year average of 24 times and five-year average of 21 times, suggesting valuation risks amid the accelerated growth.
