Interactive Brokers received a neutral rating from Raymond James as the brokerage faces scrutiny over its elevated valuation metrics. The firm initiated coverage with a Market Perform rating, reflecting a view that shares are fairly valued given the company’s growth trajectory and operational efficiency.
The brokerage has reported net revenue growth of at least 15% annually since 2021, driven by client account expansion with relatively modest marketing expenditure. In the second quarter of 2026, client accounts surged 34% year-over-year, marking the fastest pace since early 2022. Total accounts reached 5.2 million, up from 2.9 million two years prior, with 431,000 net additions during the quarter.
Operational metrics also highlighted strong retail investor engagement. Average settled trades per account rose 3.5% in 2025, following a 5.9% increase in 2024. Margin loan utilization climbed to 11.7% of client equity by the end of the second quarter, compared with 10.4% at the close of 2023.
Profitability remained robust, with adjusted pre-tax margins at 76.7% in 2025. Raymond James projects adjusted earnings per share of $2.66 for 2026, $3.15 for 2027, and $3.70 for 2028. Shares currently trade at approximately 30 times estimated earnings for the next 12 months, exceeding the three-year average of 24 times and the five-year average of 21 times.
