Interactive Brokers Group IBKR · USD

The table below presents selected financial information, including significant expenses, for the Company’s single operating segment for the periods indicated. Year-Ended December 31, 2025 2024 2023 (in millions) Total net revenues $ 6,205 $ 5,185 $ 4,340 Significant Expenses Transaction based fees 1 335 364 308 Non-transaction based fees 1 85 83 78 Employee compensation 2 574 533 486 Advertising 3 102 67 47 Other expenses 4 338 443 352 Total non-interest expenses 1,434 1,490 1,271 Income before income taxes 4,771 3,695 3,069 Income tax expense 414 288 257 Net income $ 4,357 $ 3,407 $ 2,812 Total Segment Assets $ 203,240 $ 150,142 $ 128,251 (1)Reported in “Execution, clearing and distribution fees” in the consolidated statements of comprehensive income.(2)Reported in “Employee compensation and benefits” in the consolidated statements of comprehensive income.(3)Reported in “General and administrative” in the consolidated statements of comprehensive income.(4)Includes “Occupancy, depreciation and amortization”; “Communications”; “Customer bad debt”; employee benefits and other personnel expenses reported in “Employee compensation and benefits”; and professional services, legal and regulatory matters, and other administrative expenses reported in “General and administrative” in the consolidated statements of comprehensive income.

15. Segment Reporting and Geographic Information Segment ReportingThe Company has a single reportable segment, brokerage, which is managed on a consolidated basis since the Company’s chief operating decision maker (“CODM”) assesses performance and allocates resources on a consolidated basis based on income before income taxes and net income as reported on the consolidated statements of comprehensive income. The Company’s CODM is its Chief Executive Officer and President. The brokerage segment provides execution, clearing and settlement of trades globally for hedge and mutual funds, ETFs, registered investment advisors, proprietary trading groups, introducing brokers and individual investors. The brokerage segment derives revenue from customers in the U.S. and international markets by routing orders and executing and processing trades in stocks, options, futures, foreign exchange instruments (“forex”), bonds, mutual funds, ETFs, precious metals, and forecast contracts on more than 170 electronic exchanges and market centers in 40 countries and 29 currencies around the world, and by offering custody, prime brokerage, and securities and margin lending services to customers. In addition, brokerage customers can use its trading platform to trade certain cryptocurrencies through third-party cryptocurrency service providers that execute, clear and custody the cryptocurrencies.Since the brokerage segment is managed on a consolidated basis, no reconciling items exist between segment and the consolidated amounts reported in these financial statements, including total assets and segment assets. The accounting policies of the brokerage segment are the same as those described in the summary of significant accounting policies in Note 2.The table below presents selected financial information, including significant expenses, for the Company’s single operating segment for the periods indicated.

8. Revenues from Contracts with CustomersRevenue from contracts with customers is recognized when, or as, the Company satisfies its performance obligations by transferring the promised services to the customers. A service is transferred to a customer when, or as, the customer obtains control of that service. A performance obligation may be satisfied at a point in time or over time. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that the Company determines the customer obtains control over the promised service. Revenue from a performance obligation satisfied over time is recognized by measuring the Company’s progress in satisfying the performance obligation in a manner that depicts the transfer of the services to the customer. The amount of revenue recognized reflects the consideration the Company expects to receive in exchange for those promised services (i.e., the “transaction price”). In determining the transaction price, the Company considers multiple factors, including the effects of variable consideration, if any. The Company’s revenues from contracts with customers are recognized when the performance obligations are satisfied at an amount that reflects the consideration expected to be received in exchange for such services. The majority of the Company’s performance obligations are satisfied at a point in time and are typically collected from customers by debiting their brokerage account with the Company. Nature of ServicesThe Company’s main sources of revenues from contracts with customers are as follows:•Commissions are charged to customers for order execution services and trade clearing and settlement services. These services represent a single performance obligation as the services are not separately identifiable in the context of the contract. The Company recognizes revenue at a point in time at the execution of the order (i.e., trade date). Commissions are generally collected from cleared customers on trade date and from non-cleared customers monthly. Commissions also include payments for order flow received from IBKR LiteSM liquidity providers.•Market data fees are charged to customers for market data services to which they subscribe that the Company delivers. The Company recognizes revenue monthly as the performance obligation is satisfied over time by continually providing market data for the period. Market data fees are collected monthly, generally in advance.

14. Commitments, Contingencies and Guarantees Legal, Regulatory and Governmental MattersThe Company is subject to certain pending and threatened legal, regulatory and governmental actions and proceedings that arise out of the normal course of business. Given the inherent difficulty of predicting the outcome of such matters, particularly in proceedings where claimants seek substantial or indeterminate damages, or which are in their early stages, the Company is generally not able to quantify the actual loss or range of loss related to such legal proceedings, the manner in which they will be resolved, the timing of their final resolution or the ultimate settlement. Management believes that the resolution of these matters will not have a material effect, if any, on the Company’s business or financial condition, but may have a material impact on the results of operations for a given period.The Company accounts for potential losses related to litigation in accordance with FASB ASC Topic 450, “Contingencies.” As of December 31, 2025 and 2024, accruals for potential losses related to legal, regulatory and governmental actions and proceedings matters were not material.Trading Technologies Matter As previously disclosed, on February 3, 2010, Trading Technologies International, Inc. (“Trading Technologies”) filed a complaint in the U.S. District Court for the Northern District of Illinois, Eastern Division (the “District Court”), against IBG LLC and IB LLC (the “Defendants”). The complaint, as amended, alleged that the Defendants infringed twelve U.S. patents held by Trading Technologies, and sought damages and injunctive relief.After proceedings before the United States Patent and Trademark Office Patent Trial Appeal Board, and review by the United States Court of Appeals for the Federal Circuit, all but four patents were found to be invalid. In June 2021, the District Court found two of the remaining four patents to be invalid, and trial on the two remaining patents began on August 6, 2021. On September 7, 2021, the jury rendered its verdict, finding that the Defendants infringed the two patents and awarding $6.6 million in damages to Trading Technologies, while rejecting Trading Technologies’ claims of willful infringement and request for damages of at least $962.4 million. On January 11, 2022, the District Court awarded Trading Technologies pre-judgment interest of $2.

11. Income TaxesIncome tax expense for the three years ended December 31, 2025, 2024, and 2023 differs from the U.S. federal statutory rate primarily due to the tax treatment of income attributable to noncontrolling interests in IBG LLC. These noncontrolling interests are held directly through a U.S. partnership. Accordingly, the income attributable to these noncontrolling interests is reported in the consolidated statements of comprehensive income, but the related U.S. income tax expense attributable to these noncontrolling interests is not reported by the Company as it is generally the obligation of the noncontrolling interests. Income tax expense is also affected by the differing effective tax rates in foreign, state and local jurisdictions where certain of the Company’s subsidiaries are subject to corporate taxation.Deferred income taxes arise primarily due to the amortization of the deferred tax assets recognized in connection with the common stock offerings (see Note 4), differences in the valuation of financial assets and liabilities, net operating losses and for other temporary differences arising from the deductibility of compensation and depreciation expenses in different periods for accounting and income tax return purposes.Under U.S. GAAP, the Company is allowed to make an accounting policy election of either (1) treating taxes due on future U.S. inclusions in taxable income related to global intangible low tax income as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into the Company’s measurement of its deferred taxes (the “deferred method”). The Company has elected the period cost method.The table below presents the components of the provision for income taxes for the periods indicated. Year-Ended December 31, 2025 2024 2023 (in millions) Income before provision for income taxes Domestic $ 3,662 $ 2,786 $ 2,316 Foreign 1,109 909 753 Total $ 4,771 $ 3,695 $ 3,069 Current Federal $ 141 $ 133 $ 104 State and local 36 22 14 Foreign 196 135 109 Total current 373 290 227 Deferred Federal 43 8 27 State and local 1 (9) 4 Foreign (3) (1) (1) Total deferred 41 (2) 30 $ 414 $ 288 $ 257 The table below presents a reconciliation of the statutory U.S. Federal income tax rate of 21% to the Company’s effective tax rate for the periods indicated. December 31, 2025 December 31, 2024 December 31, 2023 Amount Amount Amount ($ millions) Percentage ($ millions) Percentage ($ millions) Percentage U.S.

12. LeasesAll of the Company’s leases are classified as operating leases and primarily consist of real estate leases for corporate offices, data centers and other facilities. As of December 31, 2025, the weighted-average remaining lease term on these leases is approximately 7.0 years and the weighted-average discount rate used to measure the lease liabilities is approximately 4.91%. For the year ended December 31, 2025, right-of-use assets obtained under new operating leases were $63 million. The Company’s lease agreements do not contain any residual value guarantees, restrictions, or covenants.The table below presents balances reported in the consolidated statements of financial condition related to the Company’s leases for the periods indicated. December 31, December 31, 2025 2024 (in millions) Right-of-use assets 1 $ 137 $ 102 Lease liabilities 1 $ 152 $ 121 (1)Right-of-use assets are reported in “Other assets” and lease liabilities are reported in “Accounts payable, accrued expenses and other liabilities” in the consolidated statements of financial condition.The table below presents balances reported in the consolidated statements of comprehensive income related to the Company’s leases for the periods indicated. Year-Ended December 31, 2025 2024 2023 (in millions) Operating lease cost $ 37 $ 34 $ 35 Variable lease cost 7 6 6 Total lease cost $ 44 $ 40 $ 41 The table below reconciles the undiscounted cash flows of the Company’s leases to the present value of its operating lease payments for the period indicated.

ITEM 1C. CYBERSECURITY We are a global financial services firm, with a longstanding commitment to providing a reliable and secure trading environment for our customers.Technology is at the core of our business, with customers, exchanges, clearing houses, counterparties, and third-party service providers interacting with our systems and applications on an ongoing basis. As a consequence, we are subject to significant cybersecurity risks. Moreover, such risks continue to evolve as a result of the growing sophistication of cyber threat actors, geo-political instability, and advances in technology, such as AI, which may be misused in cyber-attacks.As part of our overall risk management framework, our cybersecurity program is designed to identify, assess, and manage cyber risks. The program involves risk assessments, implementation of security measures, and ongoing monitoring of systems and networks. We continually evaluate the current threat landscape to identify material risks arising from new and evolving cybersecurity threats. Management and Board Oversight of Cybersecurity RisksThe Company’s management, including the Company’s Executive Vice President ("EVP") of Technology and Chief Information Security Officer (“CISO”), are responsible for assessing and managing material risks from cybersecurity threats. Members of Company management possess relevant expertise in various disciplines that are key to effectively managing such risks.The Company’s management, including through its oversight of the Company’s policies and procedures regarding cybersecurity, is actively involved in the prevention, detection, mitigation, and remediation of cybersecurity incidents impacting or with the potential to impact the Company. Management’s oversight is augmented through the Company’s Enterprise Risk Management Framework, which includes risk and control assessments related to the Company’s cybersecurity program. Additionally, the Company’s Internal Audit Group periodically audits aspects of the Company’s cybersecurity program and reports the results of such audits to the Board’s Audit Committee, and an external audit firm conducts an annual SOC 2 attestation of the Company’s information security controls.If a cybersecurity incident occurs, incident response procedures are in place to ensure that the occurrence is appropriately reported to the CISO and senior management. Where necessary, business continuity plans are invoked to minimize disruption to business operations.

19. Subsequent EventsThe Company has evaluated subsequent events for adjustment to or disclosure in its consolidated financial statements through the date these consolidated financial statements were issued.Except as disclosed in Note 4 and Note 14, no other recordable or disclosable events occurred.