Interactive Brokers' lean, high-margin brokerage is generating rising net interest income. It is the 'big boy' broker, not Robinhood: its clients have real money on the line. In Q3 FY26, net revenue rose 16% to $1.914 billion and net interest income 19% to $1.154 billion year over year; basic EPS rose 17% to $0.69. Net income to common was $314 million of $1.348 billion total, with most going to noncontrolling partnership interests by design. Grade: A. x.com 

Interactive Brokers is a fantastic business because it is basically a tech company. Its fully automated platform keeps costs low, supporting operating margins above 70% and the industry's lowest fees, and one account can trade almost anything in over 150 markets, a scale no rival matches. Its software is too complex for beginners, leaving the mass market to competitors like Robinhood, and complex international regulation is costly. It is a powerful cash machine with a great moat. x.com 

Interactive Brokers is expensive against its earnings. At $89.98 it trades at 36x earnings and 28x next year's, while brokerages usually get 12x. At 12x next year's estimated $3.20 a share, give or take 12%, fair value is $33.75-$42.96, so buyers are paying about 109% above fair. This is a valuation read only, not fundamental work. x.com 

Robinhood's growth looks more reliant on wallet share and the market backdrop because customer and active-user growth are weak. Revenue rose 12%, accounts 7% year over year, and net new funded accounts slowed one quarter after acquisition was re-prioritized; adjusted EPS growth unexpectedly turned negative. New customers grew at a mid-single-digit rate and monthly active users fell. MAU is volatile, but needs to improve next quarter. x.com  x.com  x.com  x.com 

Robinhood's growing revenue lines make the business more scalable as users and Gold subscriptions expand. Its Q3 slide shows 14 lines at or above $100M in annualized revenue, up from 11 in 2025. Funded customers reached 28.7M (+7% YoY), Gold subscribers 5.2M (+34%) and revenue per user $200 (+5%). The results were not mind-blowing: $1.424B revenue slightly missed estimates, while adjusted EPS of $0.60 beat. Last year's rapid growth is not sustainable. x.com  x.com  x.com 

Robinhood, Interactive Brokers and Coinbase face prediction-market regulation in the near future, which would hurt their margins, revenue and profits. x.com 

Robinhood's growing non-crypto businesses make its trading-app valuation look too low. Gold subscribers rose 34% to 5.2 million, platform assets reached $396 billion, and 14 business lines now each generate over $100 million annually. Overweight with a $115 target, despite a weak report: deposits fell to $15.7 billion from $22 billion and net interest income dropped 9% as rates declined. x.com  x.com 

Robinhood's Summit launches push it toward an always-on active-trading super platform, shifting growth from new accounts to higher revenue per user. AI agents, weekend stock trading, crypto perpetuals and 4x intraday margin make users trade more often, longer and with more leverage. Prediction markets brought about $156M of Q2 revenue. If weekend trading and perps land, Robinhood will lead traditional brokers on trading hours, product breadth and tool depth, though Schwab stays ahead in custody. … Show more

Interactive Brokers will face crypto competition at the core of its trading-oriented business sooner than Robinhood will. Crypto is better at trading, as Hyperliquid shows, than at products such as crypto cards, so it should hit IBKR's trading franchise before it seriously challenges Robinhood's product-oriented business. x.com 

Korean equities' year-to-date rally is getting more fuel, as Interactive Brokers adds access to Korean stocks and Korea approves leveraged ETFs for the first time. x.com  x.com