FUTU

Futu Holdings reported second-quarter 2026 revenue of HK$7,200.21 million and net income of HK$3,646.78 million, both higher than a year earlier, alongside record trading volumes above HK$6 trillion and growing international licenses, including a new securities license in Thailand. At the same time, Futu’s Moomoo platform secured a multi-year partnership with the LPGA to launch the Futu Ladies World Championship in Hong Kong in 2027, underlining the group’s push to raise its brand profile and support client growth across Asia. With record quarterly performance and expanding licenses, we’ll now examine how this earnings update could influence Futu Holdings’ investment narrative. Capitalize on the AI infrastructure supercycle with our selection of the 56 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. To own Futu, you need to believe in its ability to grow a global, digital brokerage and wealth platform while managing rising regulatory and competitive pressures. The latest quarter’s record revenue, earnings, and HK$6 trillion-plus trading volume support the near term catalyst of international account and asset growth, but the CSRC’s proposed penalties and related mainland compliance issues keep regulatory risk firmly in focus. Overall, this earnings beat does not remove that risk, but it shows the core business is still performing. Among the recent developments, Futu’s new securities license in Thailand looks most relevant. It reinforces the international expansion catalyst by opening another regulated market at a time when mainland China restrictions are front of mind. For shareholders, that mix of record results, new licenses, and ongoing regulatory headwinds highlights how important geographic diversification has become to the Futu story. Yet beneath the record quarter, investors should be aware that mounting regulatory actions could still... Read the full narrative on Futu Holdings (it's free!) Futu Holdings' narrative projects HK$30.4 billion revenue and HK$15.7 billion earnings by 2029. This requires 8.1% yearly revenue growth and an earnings increase of about HK$4.6 billion from HK$11.1 billion today. Uncover how Futu Holdings' forecasts yield a $160.45 fair value, a 29% upside to its current price. Some of the lowest analysts were already cautious, assuming revenue would grow only about 4.4 percent annually and earnings reach roughly HK$12.4 billion by 2029, so this strong quarter and ongoing regulatory overhang may prompt you to rethink how pessimistic or optimistic that view still feels. Explore 7 other fair value estimates on Futu Holdings - why the stock might be worth as much as 76% more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Futu Holdings research is our analysis highlighting 4 key rewards that could impact your investment decision. Our free Futu Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Futu Holdings' overall financial health at a glance. Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters: Outshine the giants: these 18 early-stage AI stocks could fund your retirement. The future of work is here. Discover the 38 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. Rare earth metals are the new gold rush. Find out which 30 stocks are leading the charge. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FUTU. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Futu Holdings (FUTU) is back in focus after reporting the strongest quarter in its history, with quarterly trading volume passing HK$6 trillion, alongside new business moves in Thailand and securities-backed margin financing for virtual assets. The recent earnings beat and overseas expansion have come alongside a sharp rebound in the share price in the short term, with a 7 day share price return of 10.50% and a 30 day share price return of 22.32%. This comes even though the year to date share price return is down 30.20% and the 1 year total shareholder return is down 32.01%, while the 3 year total shareholder return of 117.17% still points to a much stronger longer term journey for Futu Holdings. Spot fresh momentum stories alongside Futu Holdings by scanning our hand picked 20 high quality undiscovered gems that have recently attracted renewed investor interest. After a record quarter and a rapid rebound in the share price, Futu Holdings now poses a simple question for investors: Does the current valuation still leave enough upside to justify the risks from here? Futu Holdings closed at $124.57 compared with a narrative fair value of $160.45, which frames the current rebound as only part of the story. Read the complete narrative. Want to understand why this fair value sits well above today's price? The narrative leans on compounding earnings, firm margins, and a richer product mix. The exact growth path and valuation multiple behind that number are what really matter. Result: Fair Value of $160.45 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Futu Holdings still faces important questions around regulatory penalties in mainland China and intense competition in mature markets, which could challenge the current growth narrative. Find out about the key risks to this Futu Holdings narrative. If this all sounds optimistic for Futu Holdings, set aside some time to review the numbers yourself and decide quickly where you stand by looking at its 4 key rewards. You do not need to stop with Futu Holdings. Use the Simply Wall Street Screener to quickly surface fresh stock ideas that match the way you like to invest. Target income potential by checking companies that appear in the 12 dividend fortresses and see which payouts might suit your portfolio. Hunt for quality at a sensible price by scanning the 46 high quality undervalued stocks that pass key fundamental checks. Prioritise sleep at night factor by reviewing the 76 resilient stocks with low risk scores that show stronger stability scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FUTU. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

On August 20, Futu Holdings Limited (NASDAQ:FUTU) reported the strongest quarter in its history, with trading volume pushing past HK$6 trillion for the first time. Buried inside those numbers, though, is a reminder that the company's oldest and largest client base isn't as untouchable as it once looked, with asset outflows tied to new compliance rules. The result is a business firing on nearly every cylinder except the one investors have relied on the longest. Futu's headline numbers back up the enthusiasm. Total revenue climbed 35.6% year over year to HK$7.2 billion, while net income jumped 41.6% to HK$3.6 billion, pushing net margin to 50.6%. Total trading volume rose 78.8% year over year to a record HK$6.42 trillion, with U.S. stock trading volume up 67.2% sequentially to HK$5.02 trillion as clients piled into semiconductor and artificial intelligence names. Client assets grew even faster than trading activity, up 43.6% year over year to HK$1.4 trillion, and margin financing and securities lending balances jumped 85.1% to HK$95.1 billion as an active Hong Kong IPO market encouraged clients to lean on leverage. The growth isn't confined to trading. Net new funded accounts rose 23.7% year over year to 252,000, led by Malaysia, where the business reached operating breakeven for the first time. Futu also picked up a Type A securities license from Thailand's regulator, its third market launch in the ASEAN region, and became the first Hong Kong broker approved for securities-backed margin financing tied to virtual assets under an upgraded Type 1 license. In the U.S., moomoo's newly launched prediction markets generated more than $200 million in trade volume in their first month, while Futu's IPO business served nearly 60% of new Hong Kong listings during the quarter. Not every part of the story is expanding. Chairman Leaf Li acknowledged that cumulative asset outflows tied to new regulations came to a mid-single-digit percentage of total client assets, the result of compliance-driven adjustments and risk-off sentiment among the company's Mainland Chinese clients. Growth is also getting more expensive to buy. Customer acquisition cost rose sequentially to HK$2,600 as new regulatory developments weighed on net new funded accounts. Profitability showed some strain too, with gross margin slipping to 86.3% from 87.4% a year earlier as processing and cloud service fees increased, while operating expenses rose 35.1% year over year as research and development, selling and marketing, and general administrative costs all climbed on investments in AI, Web 3 initiatives, and international expansion. Even the brokerage business had a trade-off, as blended commission rates fell because a larger share of trading shifted into lower-margin U.S. stocks and options. Hedge fund ownership of Futu fell from 36 funds to 24 last quarter, a pullback suggesting some institutional holders trimmed positions even as the business posted record numbers. Short interest sits at 9.16% of the float, a level that points to a real, organized bear camp rather than token skepticism. Yet the stock trades at a forward price-to-earnings ratio of just 13.19, as of August 27, a modest multiple for a company still growing revenue and net income by more than a third. Futu's second quarter shows a business accelerating in most directions while absorbing new friction in one. Record trading volumes, expanding client assets, and fresh footholds in Thailand and virtual assets argue the growth engine still has room to run. Yet the mid-single-digit asset outflows tied to Mainland China compliance rules, paired with rising acquisition costs and thinning commission rates, show not every market is cooperating. While we acknowledge the potential of FUTU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In. Disclosure: None. Follow Insider Monkey on Google News.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Record trading volumes were driven by intense retail interest in AI-related U.S. equities and a robust Hong Kong IPO pipeline, which supported higher leverage through margin financing. Client acquisition leadership shifted to Malaysia for the third consecutive quarter, catalyzed by targeted marketing around local IPOs and the broader technology rally. The company achieved a significant regulatory milestone as the first Hong Kong broker to launch securities-backed margin financing for virtual assets, aiming to enhance capital efficiency via a unified buying power framework. Management attributed the sequential decline in blended commission rates to a structural shift in trading behavior toward higher-priced U.S. tech stocks and options. Wealth management dynamics shifted as clients rotated from defensive money market funds into equity funds to capture strong market performance. Operating leverage is beginning to materialize in international markets, with Singapore expanding margins and Malaysia reaching operational breakeven. Third-quarter metrics are trending modestly softer as market volatility cools retail sentiment and moderates net new funded account additions. The Thailand market entry is positioned as a natural extension of the ASEAN footprint, though the official launch timeline remains dependent on final regulatory readiness inspections. Management expects the bulk of regulatory-driven asset outflows to have been absorbed in the second quarter, with attrition rates beginning to moderate in August. Future growth resources are being prioritized toward international business expansion to diversify the revenue base away from legacy markets. The U.S. prediction market launch serves as a pilot for global rollout, intended to drive core brokerage engagement rather than acting as a product substitute. New regulations released on May 22 resulted in cumulative asset outflows representing a mid-single-digit percentage of total client assets. Outflows were split roughly equally between Mainland clients making compliance-driven adjustments and Hong Kong clients exhibiting temporary risk-off sentiment. Selling and marketing expenses rose 53% year-over-year, reflecting sustained brand investment despite regulatory challenges to protect long-term client lifetime value. R&D investments were intentionally increased to support strategic pivots into AI-driven tools and Web 3 infrastructure. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed mid-single-digit asset outflows but noted that Hong Kong client retention remained resilient at over 98%. The pace of attrition moderated significantly by August after the initial implementation of app-based restrictions in June and July. Thailand was selected due to its digitally savvy investor base and high volume of online account openings (4.5 million as of mid-2026). The launch will leverage existing Singaporean and Malaysian infrastructure, though a specific date is withheld pending final Thai SEC approval. The blended CAC rose to HKD 2,600 primarily due to lower net new funded accounts following regulatory developments. Management maintained brand spending levels to support long-term growth, resulting in a higher per-head cost in the short term. The platform saw over $200 million in event contracts traded within the first month, showing high demand for non-traditional products. Data indicates that prediction market users are more active in traditional security trading, suggesting a strong cross-sell synergy.

HONG KONG, Aug. 20, 2026 (GLOBE NEWSWIRE) -- Futu Holdings Limited (“Futu” or the “Company”) (Nasdaq: FUTU), a leading tech-driven online brokerage and wealth management platform, today announced its unaudited financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Operational Highlights Total number of funded accounts1 increased 33.6% year-over-year to 3,842,667 as of June 30, 2026. Total number of brokerage accounts2 increased 26.6% year-over-year to 6,639,583 as of June 30, 2026. Total number of users3 increased 15.2% year-over-year to 31.3 million as of June 30, 2026. Total client assets increased 43.6% year-over-year to HK$1.40 trillion as of June 30, 2026. Daily average client assets were HK$1.39 trillion in the second quarter of 2026, an increase of 55.6% from the same period in 2025. Total trading volume in the second quarter of 2026 increased by 78.8% year-over-year to HK$6.42 trillion, in which trading volume for U.S. stocks was HK$5.02 trillion, and trading volume for Hong Kong stocks was HK$1.17 trillion. Margin financing and securities lending balance increased 85.1% year-over-year to HK$95.1 billion as of June 30, 2026. Second Quarter 2026 Financial Highlights Total revenues increased 35.6% year-over-year to HK$7,200.2 million (US$918.2 million). Total gross profit increased 33.9% year-over-year to HK$6,214.8 million (US$792.5 million). Net income increased 41.6% year-over-year to HK$3,641.9 million (US$464.4 million). Non-GAAP adjusted net income⁴ increased 40.1% year-over-year to HK$3,725.1 million (US$475.0 million). Mr. Leaf Hua Li, Futu’s Chairman and Chief Executive Officer, said, “In the second quarter, we added 252 thousand net new funded accounts, bringing total funded accounts to 3.8 million, up 33.6% year-over-year. Growth in funded accounts this quarter was supported by continued momentum across our international markets, reinforcing the diversification of our client base. Malaysia led new funded account additions for the third consecutive quarter. Hong Kong and Singapore followed as key contributors, with new client cohorts in both markets demonstrating stronger initial monetization compared with prior periods, a signal of ongoing quality improvement in our more established markets.” “Total client assets were HK$1.40 trillion as of quarter end, up 43.6% year-over-year and 14.5% quarter-over-quarter. The growth was mainly attributable to higher market valuation of clients’ stock holdings, and to a lesser extent, net asset inflow. Margin financing and securities lending balance rose 30.5% quarter-over-quarter to HK$95.1 billion, driven by an active Hong Kong IPO market, alongside upbeat sentiment that fueled higher utilization of leverage.” “Total trading volume reached a record HK$6.42 trillion, up 78.8% year-over-year and 54.6% quarter-over-quarter, supported by a meaningful acceleration in U.S. stock trading activity. U.S. stock trading volume rose 67.2% sequentially to HK$5.02 trillion, driven by heightened client interest in semiconductor and other AI value chain names. Hong Kong stock trading volume grew 15.9% quarter-over-quarter to HK$1.17 trillion, reflecting client engagement in semiconductor, China internet, and newly listed AI names.” “Total client assets in wealth management increased 10.4% year-over-year and 1.0% quarter-over-quarter to HK$180.2 billion, primarily supported by growth in equity fund holdings amid strong global equity market performance. In Hong Kong, we added new global equity mutual funds to our platform and expanded thematic investor engagement around frontier areas such as the space economy. In Singapore, we further broadened our fund shelf with new local equity strategies aligned with the country's capital markets development priorities.” “As of quarter end, we cumulatively served 683 IPO distribution and IR clients, up 32.1% year-over-year. Against a robust Hong Kong IPO backdrop, we provided investment banking services to nearly 60% of new listings during the quarter, including those of Star Sports Medicine, Lightelligence, and Metis TechBio.” “In recent months, we made meaningful progress across our global franchise. In June, Moomoo launched Prediction Markets in the U.S., broadening the ways our clients can engage with financial markets and real-world developments, driving active client participation. Futu Securities also received SFC approval to launch a virtual asset financing service through our proprietary trading platform PantherTrade, further expanding our product runway within Hong Kong's evolving virtual asset framework. In July, we obtained a Type A license from the Thailand Securities and Exchange Commission, positioning us to launch Moomoo Thailand and further extend our footprint across Southeast Asia. Together, these developments deepen the product breadth and expand the geographic reach of our platform for global investors.” Mr. Arthur Yu Chen, Futu’s Chief Financial Officer, added, “As of June 30, 2026, we have repurchased approximately 3.8 million ADSs for an aggregate consideration of approximately US$418 million in open market transactions in accordance with the authorization under the current share repurchase program.” Second Quarter 2026 Financial Results Revenues Total revenues were HK$7,200.2 million (US$918.2 million), an increase of 35.6% from HK$5,310.9 million in the second quarter of 2025. Brokerage commission and handling charge income was HK$3,360.6 million (US$428.5 million), an increase of 30.3% from the second quarter of 2025. This was mainly due to higher trading volume, partially offset by a decline in blended commission rate. Interest income was HK$3,123.8 million (US$398.3 million), an increase of 36.5% from the second quarter of 2025. The increase was mainly driven by higher interest income from margin financing and bank deposit. Other income was HK$715.8 million (US$91.3 million), an increase of 61.2% from the second quarter of 2025. The increase was primarily attributable to higher currency exchange income and IPO financing service income. Costs Total costs were HK$985.4 million (US$125.7 million), an increase of 46.9% compared to HK$670.9 million in the second quarter of 2025. Brokerage commission and handling charge expenses were HK$247.5 million (US$31.6 million), an increase of 54.1% from the second quarter of 2025. The increase was primarily due to higher trading volume. Interest expenses were HK$512.9 million (US$65.4 million), an increase of 35.8% from the second quarter of 2025. The increase was primarily due to higher expenses associated with our margin financing. Processing and servicing costs were HK$225.0 million (US$28.7 million), an increase of 69.6% from the second quarter of 2025. The increase was primarily due to increasing cloud service fees in AI capabilities. Gross Profit Total gross profit was HK$6,214.8 million (US$792.5 million), an increase of 33.9% from HK$4,639.9 million in the second quarter of 2025. Gross margin was 86.3%, as compared to 87.4% in the second quarter of 2025. Operating Expenses Total operating expenses were HK$1,751.3 million (US$223.3 million), an increase of 35.1% from HK$1,296.0 million in the second quarter of 2025. Research and development expenses were HK$501.0 million (US$63.9 million), an increase of 13.4% from the second quarter of 2025. This was primarily driven by increased investment in strategic initiatives. Selling and marketing expenses were HK$657.1 million (US$83.8 million), an increase of 53.1% from HK$429.1 million in the second quarter of 2025. This was driven by the increase of new funded accounts. General and administrative expenses were HK$593.1 million (US$75.6 million), an increase of 39.6% from the second quarter of 2025. The increase was primarily due to an increase in general and administrative personnel to support business development. Income from Operations Income from operations increased by 33.5% to HK$4,463.5 million (US$569.2 million) from HK$3,344.0 million in the second quarter of 2025. Operating margin declined to 62.0% from 63.0% in the second quarter of 2025. Net Income Net income increased by 41.6% to HK$3,641.9 million (US$464.4 million) from HK$2,572.6 million in the second quarter of 2025. Net income margin for the second quarter of 2026 increased to 50.6% from 48.4% in the year-ago quarter. Non-GAAP adjusted net income increased by 40.1% to HK$3,725.1million (US$475.0 million) from the second quarter of 2025. Non-GAAP adjusted net income is defined as net income excluding share-based compensation expenses. For further information, see "Use of Non-GAAP Financial Measures" at the bottom of this press release. Net Income per ADS Basic net income per American Depositary Share ("ADS") was HK$26.32 (US$3.36), compared with HK$18.48 in the second quarter of 2025. Diluted net income per ADS was HK$26.08 (US$3.33), compared with HK$18.24 in the second quarter of 2025. Each ADS represents eight Class A ordinary shares. Conference Call and Webcast Futu's management will hold an earnings conference call on Thursday, August 20, 2026, at 7:30 AM U.S. Eastern Time (7:30 PM on the same day, Beijing/Hong Kong Time). Please note that all participants will need to pre-register for the conference call, using the link https://register-conf.media-server.com/register/BIc3f2e0e4bf004756b6d281e81ca215dd It will automatically lead to the registration page of "Futu Holdings Ltd First Quarter 2026 Earnings Conference Call", where details for RSVP are needed. Upon registering, all participants will be provided in confirmation emails with participant dial-in numbers and personal PINs to access the conference call. Please dial in 10 minutes prior to the call start time using the conference access information. Additionally, a live and archived webcast of this conference call will be available at https://ir.futuholdings.com/. About Futu Holdings Limited Futu Holdings Limited (Nasdaq: FUTU) is an advanced technology company transforming the investing experience by offering fully digitalized financial services. Through its proprietary digital platforms, Futubull and Moomoo, the Company provides a full range of investment services, including trade execution and clearing, margin financing and securities lending, and wealth management. The Company has embedded social media tools to create a network centered around its users and provide connectivity to users, investors, companies, analysts, media and key opinion leaders. The Company also provides corporate services, including IPO distribution, investor relations and ESOP solution services. Use of Non-GAAP Financial Measures In evaluating the business, the Company considers and uses non-GAAP adjusted net income, a non-GAAP measure, as a supplemental measure to review and assess its operating performance. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines non-GAAP adjusted net income as net income excluding share-based compensation expenses. The Company presents the non-GAAP financial measure because it is used by the management to evaluate the operating performance and formulate business plans. Non-GAAP adjusted net income enables the management to assess the Company's operating results without considering the impact of share-based compensation expenses, which are non-cash charges. The Company also believes that the use of the non-GAAP measure facilitates investors' assessment of its operating performance. Non-GAAP adjusted net income is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using non-GAAP adjusted net income is that it does not reflect all items of expense that affect the Company's operations. Share-based compensation expenses have been and may continue to be incurred in the business and is not reflected in the presentation of non-GAAP adjusted net income. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance. For more information on this non-GAAP financial measure, please see the table captioned "Unaudited Reconciliations of Non-GAAP and GAAP Results" set forth at the end of this press release. Exchange Rate Information This announcement contains translations of certain HK dollars ("HK$") amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from HK$ to US$ were made at the rate of HK$7.8420 to US$1.00, the noon buying rate in effect on June 30, 2026 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the HK$ or US$ amounts referred could be converted into US$ or HK$, as the case may be, at any particular rate or at all. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from the management team of the Company, contain forward-looking statements. Futu may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Futu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Futu's goal and strategies; Futu's expansion plans; Futu's future business development, financial condition and results of operations; Futu's expectations regarding demand for, and market acceptance of, its credit products; Futu's expectations regarding keeping and strengthening its relationships with borrowers, institutional funding partners, merchandise suppliers and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Futu's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Futu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor inquiries, please contact: Investor RelationsFutu Holdings [email protected] _________________ 1 The number of funded accounts refers to the number of brokerage accounts with Futu that have a positive account balance. Multiple funded accounts by one client are counted as one funded account.2 Multiple brokerage accounts by one client are counted as one brokerage account.3 The number of users refers to the number of user accounts registered with Futu.4 Non-GAAP adjusted net income is defined as net income excluding share-based compensation expenses. Non-GAAP to GAAP reconciling items have no income tax effect.

This article first appeared on GuruFocus. Total Revenue: HKD7.2 billion, up 36% year-over-year from HKD5.3 billion. Brokerage Commission and Handling Charge Income: HKD3.4 billion, up 30% year-over-year and 27% quarter-over-quarter. Interest Income: HKD3.1 billion, up 37% year-over-year and 18% quarter-over-quarter. Other Income: HKD718 million, up 61% year-over-year and 27% quarter-over-quarter. Total Costs: HKD985 million, up 47% year-over-year. Gross Profit: HKD6.2 billion, up 34% from HKD4.6 billion in the second quarter of 2025. Gross Margin: 86.3%, compared to 87.4% in the same quarter of 2025. Operating Expenses: HKD1.8 billion, up 35% year-over-year and 11% quarter-over-quarter. R&D Expenses: HKD501 million, up 13% year-over-year and 5% quarter-over-quarter. Selling and Marketing Expenses: HKD657 million, up 53% year-over-year and 18% quarter-over-quarter. G&A Expenses: HKD593 million, up 40% year-over-year and 10% quarter-over-quarter. Income from Operations: HKD4.5 billion, up 34% year-over-year and 26% quarter-over-quarter. Operating Margin: 62%, largely flat compared to the second quarter of 2025. Net Income: HKD3.6 billion, up 42% year-over-year. Net Income Margin: 50.6%, compared to 48.4% in the same quarter last year. Effective Tax Rate: 16.1% for the quarter. Net New Funded Accounts: 252,000, up 23.7% year-over-year and 12.2% quarter-over-quarter. Total Funded Accounts: Approximately 3.84 million, up 33.6% year-over-year and 7% quarter-over-quarter. Total Client Assets: HKD1.4 trillion, up 43.6% year-over-year and 14.5% quarter-over-quarter. Margin Financing and Securities Lending Balance: HKD95.1 billion, up 31% quarter-over-quarter. Total Trading Volume: HKD6.42 trillion, up 78.8% year-over-year and 54.6% quarter-over-quarter. US Stock Trading Volume: HKD5.02 trillion, up 67.2% sequentially. Hong Kong Stock Trading Volume: HKD1.17 trillion, up 15.9% quarter-over-quarter. Wealth Management Client Assets: HKD18.2 billion, up 10% year-over-year and 1% quarter-over-quarter. IPO Distribution and IR Clients: 683, up 32% year-over-year. Warning! GuruFocus has detected 1 Warning Sign with FUTU. Is FUTU fairly valued? Test your thesis with our free DCF calculator. Release Date: August 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Futu Holdings Ltd (NASDAQ:FUTU) reported a record total trading volume of HKD6.42 trillion, up 78.8% year-over-year and 54.6% quarter-over-quarter, driven by strong client interest in AI-related US stocks and active Hong Kong IPO market. Net new funded accounts grew 23.7% year-over-year to 252,000, with total funded accounts reaching 3.84 million, up 33.6% year-over-year, supported by strong client acquisition in Hong Kong, Singapore, and Malaysia. Total client assets surged 43.6% year-over-year to HKD1.4 trillion, reflecting higher market valuations and net asset inflows, while margin financing and securities lending balance rose 31% quarter-over-quarter to HKD95.1 billion. The company achieved strong financial performance with net income up 42% year-over-year to HKD3.6 billion, and net income margin expanding to 50.6% from 48.4% in the prior year quarter. Futu Holdings Ltd (NASDAQ:FUTU) expanded its international footprint, with Malaysia achieving operational breakeven, Singapore's profitability improving, and the acquisition of a Thailand securities license, positioning for future growth in Southeast Asia. The launch of prediction markets in the US, with over 200 million event contracts traded within the first month, has driven new client acquisition and increased engagement, showing cross-sell synergies with core brokerage services. Following new regulations on May 22, Futu Holdings Ltd (NASDAQ:FUTU) experienced cumulative asset outflows of mid-single-digit percentage of total client assets, with the bulk of the impact absorbed in Q2, and Mainland client attrition continuing into July and August. The blended commission rate declined due to stronger trading activities in higher-priced US stocks and options, which could pressure future revenue growth if the trend persists. Blended customer acquisition cost (CAC) rose sequentially to around HKD2,600, and trended higher in July, driven by regulatory impacts and sustained brand investment, potentially affecting profitability. Q3 quarter-to-date metrics are trending modestly softer, with net new funded accounts moderating, net asset inflows normalizing, and total trading volume down sequentially due to cooling retail sentiment. Operating expenses increased 35% year-over-year, with selling and marketing expenses up 53% and G&A expenses up 40%, reflecting higher costs associated with client acquisition and strategic investments. The company faces regulatory uncertainty, particularly in Mainland China, which could lead to further compliance-driven outflows and impact future growth in that market. Q: Since the release of the new regulations on May 22, have you seen material changes in Mainland client share account, AUM and revenue contribution? Have you observed meaningful outflow of accounts or client assets? A: Leaf Li (Chairman and CEO): Following the release of the new rules, we promptly implemented compliance measures. Cumulative asset outflows since the new regulations were about mid-single-digit percentage of total client assets, with the bulk of the impact absorbed in Q2. Outflows came from both Mainland and Hong Kong client bases, roughly equal. Mainland outflows were compliance-driven, while Hong Kong outflows were sentiment-driven. Most Mainland outflows occurred in June and July, with attrition moderating in August. Hong Kong client retention stayed above 98%, and overseas retention remained stable. Q: What's the strategic thinking about choosing Thailand? When do we expect Futu to officially launch the business here? And do we see any synergy among the ASEAN markets we are already in? A: Unidentified Company Representative: Thailand is the third largest economy in Southeast Asia with digitally savvy investors and growing demand for global asset allocation. Over 4.5 million investors have opened accounts online in Thailand as of H1 2026. Entering Thailand is a natural next step after Singapore and Malaysia, leveraging existing regional infrastructure. Moomoo has obtained the Type A securities license from the SEC, but the official launch timeline depends on regulatory readiness and inspection, so no specific date is shared yet. Q: Can we get some color on the trajectory of your CAC in the second quarter? What were the key drivers, and how should we think about CAC in the coming quarters? A: Unidentified Company Representative: Blended CAC rose sequentially to around HKD2,600 in Q2, within the full-year guidance range of HKD2,500 to HKD3,000. The Q-o-Q increase was driven by relatively lower net new funded accounts due to regulatory developments, while maintaining brand investment for long-term growth. CAC trended higher in July relative to Q2. Q: Could you provide some breakdown on added funded accounts and period-end funded accounts by market, particularly the contribution mix from overseas markets? A: Arthur Chen (CFO): Malaysia led all markets in new fund account growth for three consecutive quarters, followed by Hong Kong. Together, these two markets made up more than 50% of net new funded accounts in Q2, with Singapore being the next largest source. By the end of Q2, Moomoo's share of total funded accounts increased to nearly 60%, led by Singapore, Malaysia, and the US. Q: Would you please show more color on our Q3 trend such as the run rate of new funded accounts, trading flow, and client AUM? A: Unidentified Company Representative: On a Q3 quarter-to-date run rate basis, key metrics are trending modestly softer against market volatility. Net addition of funded accounts moderated compared with Q2. Net asset inflows in Hong Kong and overseas markets have returned to a more normalized level. Total trading volume was down modestly sequentially, reflecting cooling retail sentiment in Q3 quarter-to-date relative to the previous quarter. Q: Since Moomoo has launched the prediction market in the US, can you show more on this business trend? How do we view the future monetization and growth opportunities of prediction markets? A: Arthur Chen (CFO): Moomoo US officially launched prediction market trading in early June after obtaining the CM license from CFTC in May. Event contracts traded exceeded 200 million within one month of launch, reflecting strong demand. Event contracts have delivered great results in acquiring new clients and driving engagement, with clear cross-sell synergy with core brokerage. Users trading event contracts are more active in securities trading, showing they are a driver, not a substitute. The rollout serves two purposes: capturing near-term opportunity and building product design, operational, and risk management expertise to bring prediction markets to other regions. Q: The commission rate is dropping a little bit Q-on-Q. What kind of structural changes are we seeing behind this drop? A: Arthur Chen (CFO): There was no price menu change in Q2 across all markets. The take rate change was driven by customer behavior. First, the contribution from derivatives in Q2 was slightly down Q-o-Q, though absolute levels remain healthy. Second, more clients traded US stocks with high concentration on high-value AI themes and tech leading names, which led the implied commission rate down a little bit. Q: On the quality of newly funded accounts, what improvements have you seen across markets? A: Arthur Chen (CFO): Average revenue per newly funded account improved sequentially across multiple overseas markets, with US, Singapore, and Hong Kong all posting double-digit growth. This reflects a structural upshift in fund account quality in growing markets like the US and continued acquisition of higher-value clients in mature markets. All funded accounts in overseas markets, including Malaysia, Australia, New Zealand, and Canada, grew double digits sequentially in Q2. Average client assets rose Q-o-Q across every overseas market, showing growth in both client numbers and wallet share. Q: Can you share an update on the overseas market development and their contribution to the group? A: Arthur Chen (CFO): Overseas markets are at different stages of maturity. Singapore has passed breakeven and net profit margin continues to expand due to operating leverage. Malaysia recently achieved breakeven at the operational level. Other overseas markets are still building out their client and asset base, with rising average client assets and retention, laying groundwork for long-term profitability. The recent securitization of the Thailand license provides an additional anchor for the ASEAN footprint. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Futu Holdings Limited Sponsored ADR? Here are five stocks we like better. Strong Q2 financial performance: Revenue rose 36% year over year to HK$7.2 billion, while net income increased 42% to HK$3.6 billion. Net margin expanded to 50.6%. Client and trading growth accelerated: Funded accounts reached 3.84 million, client assets rose 43.6% to HK$1.4 trillion, and trading volume hit a record HK$6.42 trillion, driven by U.S. equities, AI-related stocks and Hong Kong IPO activity. Overseas expansion remains central despite regulatory outflows: Mainland China and Hong Kong client-asset outflows totaled a mid-single-digit percentage, but Hong Kong retention stayed above 98%; Malaysia reached operating break-even and overseas markets continued adding clients. Hong Kong Financial Firm Futu Surges 33.12% Amid Stimulus Hints Futu (NASDAQ:FUTU) reported higher second-quarter revenue and profit as trading activity, client assets and funded accounts increased, supported by strong U.S. equity interest, Hong Kong IPO activity and growth across overseas markets. Total revenue for the second quarter rose 36% year over year to HK$7.2 billion, while net income increased 42% to HK$3.6 billion. Net income margin expanded to 50.6% from 48.4% a year earlier. Income from operations grew 34% to HK$4.5 billion, with an operating margin of 62%, largely unchanged from the prior-year quarter. → Datavault AI Locks Down CyberCatch in $94M Security Rollup Futu Holdings (NASDAQ:FUTU) Stock: Is the Chinese Fintech Company a Buy? Futu added 252,000 net new funded accounts during the quarter, up 23.7% from a year earlier and 12.2% sequentially. Total funded accounts reached about 3.84 million, an increase of 33.6% year over year and 7% from the first quarter. Chairman and Chief Executive Officer Leaf Li said client acquisition accelerated in Hong Kong, aided by a strong local initial public offering pipeline and U.S. equity performance. Singapore registered users surpassed 2 million, while Malaysia delivered a record quarter for client acquisition and led all markets in net new funded accounts for the third consecutive quarter. → Michael Burry Is Betting Against Palantir Again—Should Investors Care? Futu said Moomoo’s U.S. prediction markets product also contributed to new client acquisition and platform engagement. Total client assets reached HK$1.4 trillion at quarter-end, up 43.6% year over year and 14.5% sequentially, largely reflecting higher market values for client stock holdings and, to a lesser extent, net asset inflows. Trading volume rose 78.8% year over year and 54.6% quarter over quarter to a record HK$6.42 trillion. U.S. stock trading volume climbed 67.2% sequentially to HK$5.02 trillion, driven by interest in artificial-intelligence-related stocks. Hong Kong stock trading volume increased 15.9% to HK$1.17 trillion, with activity concentrated in semiconductor, China internet and newly listed companies. → Home Depot Analysts See a Path to $375 and Beyond Period-end margin financing and securities lending balances increased 31% sequentially to HK$95.1 billion. The company attributed the increase to an active Hong Kong IPO market and broader positive market sentiment. Brokerage commission and handling-charge income increased 30% year over year and 27% sequentially to HK$3.4 billion. Chief Financial Officer Arthur Chen said trading volume increased on both comparisons, though the blended commission rate declined as activity shifted toward higher-priced U.S. stocks and options. Chen said the company made no pricing changes during the quarter. Instead, the lower take rate reflected client trading behavior, including a modest decline in derivatives’ contribution and greater trading of high-priced U.S. technology and AI-related stocks and larger options contracts. Interest income rose 37% year over year to HK$3.1 billion, driven by margin financing, bank deposits and secured lending. Other income climbed 61% to HK$718 million, primarily because of higher foreign-exchange income and IPO financing service income. Total costs increased 47% to HK$985 million. Operating expenses rose 35% to HK$1.8 billion, including a 53% increase in selling and marketing expense to HK$657 million as the company added funded accounts. Research and development expense rose 13% to HK$501 million, which Chen said reflected investments in initiatives including AI and Web3. Gross profit increased 34% to HK$6.2 billion, while gross margin declined to 86.3% from 87.4% a year earlier. Management said it promptly implemented compliance measures following new regulations issued May 22 and remained in communication with regulators. Cumulative client asset outflows since the regulations amounted to a mid-single-digit percentage of total client assets, according to the company. The outflows came from both mainland China and Hong Kong client bases in roughly equal measure. Management said mainland outflows were primarily compliance-related adjustments, while Hong Kong outflows were concentrated shortly after the announcement amid risk-off sentiment. It added that most mainland client outflows occurred in June and July, while client attrition began moderating in August. Hong Kong client retention remained above 98% in the second quarter, and retention in overseas markets was stable sequentially, the company said. Management said it would continue directing resources and growth efforts toward international operations. Average revenue per new funded account increased sequentially across multiple overseas markets. Chen said new-client average revenue grew by double digits in the U.S., Singapore and Hong Kong. Malaysia, Australia, New Zealand and Canada each posted double-digit sequential growth in funded accounts, while average client assets increased across every overseas market where Futu operates. Malaysia and Hong Kong together accounted for more than half of second-quarter net new funded accounts, with Singapore the next-largest contributor. By the end of the quarter, Moomoo accounted for nearly 60% of total funded accounts, led by Singapore, Malaysia and the U.S., Chen said. Singapore has been profitable for several years, with both absolute profit and margin continuing to improve, management said. Malaysia reached operating break-even during the second quarter for the first time. In June, Futu Securities became the first and, according to management, only Hong Kong broker to offer securities-backed margin financing for virtual assets under an upgraded Type 1 license approval from the Securities and Futures Commission. The company is also exploring whether to extend its unified buying-power framework to virtual asset holdings. Futu said wealth management client assets totaled HK$180.2 billion, up 10% year over year and 1% sequentially. Management observed clients shifting from money market funds toward equity funds amid strong stock-market performance. The company ended the quarter with 683 IPO distribution and investor-relations clients, up 32% year over year. Futu said nearly 60% of newly listed Hong Kong companies partnered with the firm during the quarter, and it served as joint bookrunner on several listings. Looking into the third quarter, management said key operating metrics had softened modestly amid market volatility. Net additions of funded accounts were below the second-quarter level, trading volume was modestly lower sequentially, and retail sentiment had cooled. However, net asset inflows in Hong Kong and overseas markets had returned to normalized levels. In the U.S., Moomoo launched prediction market trading for retail clients in early June after receiving an FCM license in May. Chen said more than 200 million event contracts were traded during the first month after launch. He said the product has helped acquire clients and improve engagement, with users trading event contracts also showing higher securities-trading activity. Futu Holdings Ltd. is a technology-driven brokerage and wealth management company that provides online brokerage services, market data, and investment tools to retail and institutional clients. Headquartered in Hong Kong and listed on the NASDAQ under the ticker FUTU, the company operates digital trading platforms that combine order execution, real-time quotes, news, and research tools to serve active investors and wealth management customers. The firm's product suite includes brokerage access to equities, exchange-traded funds and derivatives across major markets, margin financing, initial public offering (IPO) subscription services, wealth management products and discretionary investment solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Futu Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Interested in Futu Holdings Limited Sponsored ADR? Here are five stocks we like better. Futu posted record trading activity and strong account growth in Q1 2026, adding 225,000 net new funded accounts to reach 3.59 million. Total client assets rose 47% year over year, while platform trading volume hit a record HKD 4.15 trillion. Revenue increased but profit fell sharply because Futu booked a large administrative penalty from Chinese regulators. Revenue rose 25% year over year to HKD 5.9 billion, but net income dropped 61% to HKD 831 million; excluding the penalty, net income would have risen 36%. International markets and new products remain key growth drivers, with Hong Kong, Singapore, Malaysia and Japan all contributing to account expansion. Management also highlighted upcoming initiatives such as U.S. prediction market brokerage and Hong Kong crypto platform expansion through PantherTrade. Hong Kong Financial Firm Futu Surges 33.12% Amid Stimulus Hints Futu (NASDAQ:FUTU) reported record trading activity and continued international account growth in the first quarter of 2026, while a regulatory penalty from Chinese authorities weighed sharply on reported net income. On the company’s earnings call, Chairman and Chief Executive Officer Leaf Li said Futu added 225,000 net new funded accounts during the quarter, bringing total funded accounts to 3.59 million, up 34% from a year earlier and 7% from the prior quarter. Total client assets were broadly flat sequentially but rose 47% year-over-year, as strong net inflows were offset by declines in client equity holdings. → Rocket Lab Keeps Making Headlines and Highs—Here's What's Driving the Latest Move Futu Holdings (NASDAQ:FUTU) Stock: Is the Chinese Fintech Company a Buy? Chief Financial Officer Arthur Chen said total revenue rose 25% year-over-year to HKD 5.9 billion. Net income fell 61% from a year earlier to HKD 831 million after the company reflected an administrative penalty from the China Securities Regulatory Commission’s Shenzhen Bureau. Excluding that adjustment, Chen said net income would have risen 36% year-over-year to HKD 2.9 billion. Li said total trading volume reached a platform record of HKD 4.15 trillion, up 29% year-over-year and 4% quarter-over-quarter. U.S. stock trading volume remained broadly stable at HKD 3 trillion, with artificial intelligence continuing to be the dominant investment theme among clients. → Quantum Stocks Just Got a Lifeline—Who Benefits Most? Li said client interest in U.S. equities was shifting “down the value chain” from semiconductor companies toward AI infrastructure beneficiaries. Hong Kong stock trading volume rose 22% sequentially to HKD 1 trillion, supported by heightened market volatility and “bottom fishing” activity, particularly in China technology stocks and newly listed AI-related companies. Margin financing and securities lending balances rose 8% sequentially to HKD 72.9 billion at quarter-end, reflecting stronger risk appetite, according to Li. → 5 Stocks Winning the AI Race While Everyone Watches NVIDIA Futu’s management highlighted continued growth across several international markets. Li said Hong Kong remained the company’s second-largest contributor to new account additions despite a subdued local equity market. He said the company would focus more on client assets and lifetime value in Hong Kong, citing product innovation, brand trust and its one-stop platform. Singapore delivered double-digit sequential growth in net new funded accounts. Li said average client assets in Singapore had grown at a compound annual growth rate of more than 50% over the past three years, and that the company continued to see room for further asset growth. Malaysia again led all markets in client additions, helped by marketing around U.S. equities and Moomoo’s IPO product capabilities. Li said profitability in Malaysia continued to improve and that Futu expected the market to reach breakeven within the next six to 12 months. In Japan, Li said U.S. equity trading capability continued to support client acquisition. U.S. stock trading volume in Japan rose by double digits sequentially, while U.S. options contract volume doubled. The company plans to improve its Japanese equity trading experience this year. During the question-and-answer session, management said Malaysia and Hong Kong together contributed more than half of net new funded accounts in the first quarter, while Singapore was the largest contributor among the remaining markets. Management also said more than 55% of group funded accounts were under the overseas Moomoo brand at quarter-end, primarily from Singapore, the United States and Malaysia. Chen said brokerage commission and handling charge income rose 14% year-over-year to HKD 2.6 billion but declined 5% from the prior quarter. He said trading volume grew, but the blended commission rate declined due to stronger activity in higher-priced U.S. stocks and options. Interest income rose 28% year-over-year to HKD 2.7 billion but fell 13% quarter-over-quarter. Chen attributed the sequential decline to lower interest income from securities borrowing and lending, as well as bank deposits. Other income rose 80% from a year earlier to HKD 564 million, mainly due to higher currency exchange service income and IPO subscription service charge income. Total gross profit increased 29% year-over-year to HKD 5.1 billion, with gross margin rising to 87.2% from 84% a year earlier. Operating expenses rose 25% year-over-year to HKD 1.6 billion and were flat sequentially. Chen said research and development spending increased due to higher headcount supporting strategic initiatives in new markets, while selling and marketing expenses rose on higher customer acquisition costs. Chen said the company received an administrative penalty notification from the CSRC Shenzhen Bureau on May 22 in the aggregate amount of approximately RMB 1.85 billion. He said the amount was fully reflected in the first-quarter financial statements as an adjusted subsequent event under U.S. GAAP and “does not impact our business fundamentals or financial stability.” Chen also said Futu had cumulatively repurchased approximately $418 million worth of American depositary shares as of the close of U.S. trading on May 27, under an $800 million share repurchase program announced in November 2025. In response to an analyst question about updated cross-border securities, futures and fund-related regulatory guidance from the CSRC and Hong Kong’s Securities and Futures Commission, management said the update applied across the industry. The company said it had already ceased opening accounts for Mainland Chinese identity holders and had rejected tens of thousands of non-compliant applications over the past two years. Management said Mainland China funded accounts represented about 13% of total funded accounts at the end of the first quarter, while related client assets accounted for about 17% of total client assets and contributed about 20% of revenue. The company said it did not expect the regulatory update to have a material impact on its full-year guidance of 800,000 net new funded accounts. Futu also discussed several new initiatives. In the U.S., Li said Moomoo Financial and Futu Clearing received approval to operate a prediction market brokerage and clearing business, with event contracts expected to be offered to U.S. retail investors soon. Management said prediction market products could support client acquisition, trading activity and future expansion into other jurisdictions. In Hong Kong, Li said PantherTrade obtained second-phase approval for the SFC virtual asset trading platform license in March and began full operations. The company said a portion of Futu Securities’ crypto trading volume and assets under management had migrated to PantherTrade. Futu plans to expand capabilities including OTC trading, broader token support and staking, subject to regulation. Wealth management client assets were HKD 178.4 billion at quarter-end, up 28% year-over-year and broadly stable sequentially. Li said clients rotated some assets from money market funds into equity funds during the quarter as risk appetite improved. Looking ahead, management said second-quarter net new funded accounts were expected to remain stable sequentially, while net inflows had maintained strong momentum. The company said assets under management and trading volume had the potential to post double-digit sequential growth, supported by positive market performance and active client trading. Futu Holdings Ltd. is a technology-driven brokerage and wealth management company that provides online brokerage services, market data, and investment tools to retail and institutional clients. Headquartered in Hong Kong and listed on the NASDAQ under the ticker FUTU, the company operates digital trading platforms that combine order execution, real-time quotes, news, and research tools to serve active investors and wealth management customers. The firm's product suite includes brokerage access to equities, exchange-traded funds and derivatives across major markets, margin financing, initial public offering (IPO) subscription services, wealth management products and discretionary investment solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Futu Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

HONG KONG, May 28, 2026 (GLOBE NEWSWIRE) -- Futu Holdings Limited (“Futu” or the “Company”) (Nasdaq: FUTU), a leading tech-driven online brokerage and wealth management platform, today announced its unaudited financial results for the first quarter ended March 31, 2026. First Quarter 2026 Operational Highlights Total number of funded accounts1 increased 34.3% year-over-year to 3,590,325 as of March 31, 2026. Total number of brokerage accounts2 increased 26.8% year-over-year to 6,284,404 as of March 31, 2026. Total number of users3 increased 14.9% year-over-year to 30.2 million as of March 31, 2026. Total client assets increased 47.2% year-over-year to HK$1.22 trillion as of March 31, 2026. Daily average client assets were HK$1.27 trillion in the first quarter of 2026, an increase of 60.8% from the same period in 2025. Total trading volume in the first quarter of 2026 increased by 29.1% year-over-year to HK$4.15 trillion, in which trading volume for U.S. stocks was HK$3.00 trillion, and trading volume for Hong Kong stocks was HK$1.01 trillion. Margin financing and securities lending balance increased 44.9% year-over-year to HK$72.9 billion as of March 31, 2026. First Quarter 2026 Financial Highlights Total revenues increased 24.7% year-over-year to HK$5,856.0 million (US$746.9 million). Total gross profit increased 29.4% year-over-year to HK$5,106.7 million (US$651.4 million). Net income decreased 61.2% year-over-year to HK$831.0 million (US$106.0 million). Non-GAAP adjusted net income4 decreased 58.5% year-over-year to HK$919.5 million (US$117.3 million). Mr. Leaf Hua Li, Futu’s Chairman and Chief Executive Officer, said, “In the first quarter, we added 225 thousand net new funded accounts, bringing total funded accounts to 3.6 million, up 34.3% year-over-year. Despite market volatility during the quarter, we continue to track toward our full-year guidance of 800 thousand net new funded accounts with confidence. Net new funded account growth was driven by broad-based strength across all markets despite market turbulence.” “Net asset inflow accelerated meaningfully primarily driven by our high-quality client base in Hong Kong and Singapore. Total client assets were HK$1.22 trillion as of quarter end, up 47.2% year-over-year and largely stable quarter-over-quarter, as robust inflow was offset by mark-to-market pressure on clients’ Hong Kong and U.S. equity holdings. Margin financing and securities lending balance rose 7.7% quarter-over-quarter to HK$72.9 billion, reflecting elevated client appetite to add exposure amid market pullbacks.” “Total trading volume climbed to a record HK$4.15 trillion, up 29.1% year-over-year and 4.4% quarter-over-quarter, as a rotation in client activity toward Hong Kong equities more than offset softer U.S. stock trading volumes. Hong Kong stock trading volume grew 22.5% quarter-over-quarter to HK$1.0 trillion, driven by continued momentum in China internet, semiconductor and newly listed AI stocks. U.S. stock trading volume was largely stable sequentially at HK$3.00 trillion, with technology stocks remaining key areas of client interest.” “Total client assets in wealth management increased 28.2% year-over-year and largely stable quarter-over-quarter to HK$178.4 billion. During the first quarter, we continued to broaden our product offerings to address evolving client needs. In Hong Kong, we added a space economy-themed mutual fund to our platform and expanded structured product offerings; in Japan, we partnered with Asahi Life to offer an award-winning global equity fund; and in Singapore, we added fund products under the Equity Market Development Programme to broaden clients’ access to local equity exposure.” “As of quarter end, we have cumulatively served 625 IPO distribution and IR clients, up 25.5% year-over-year. During the first quarter, we provided IPO distribution services to a number of prominent Hong Kong listings, including MiniMax, Busy Ming, and Biren Technology.” “In March, our wholly owned virtual asset exchange, PantherTrade, received its VATP license from the Hong Kong SFC to commence full-scale licensed operations, further enriching the Futu ecosystem with a broader spectrum of services and delivering a more seamless, integrated investment experience for our clients.” Mr. Arthur Yu Chen, Futu’s Chief Financial Officer, added, “On May 22, 2026, the Company received an Administrative Penalty Pre-Notification Letter from the China Securities Regulatory Commission Shenzhen Bureau in an aggregate amount of approximately RMB1.85 billion, which has been fully reflected in our first quarter financial statements as an adjusted subsequent event under U.S. GAAP. This amount does not impact our business fundamentals or financial stability. We remain focused on long-term growth across international markets.” First Quarter 2026 Financial Results Revenues Total revenues were HK$5,856.0 million (US$746.9 million), an increase of 24.7% from HK$4,694.6 million in the first quarter of 2025. Brokerage commission and handling charge income was HK$2,641.4 million (US$336.9 million), an increase of 14.3% from the first quarter of 2025. This was mainly due to higher trading volume, partially offset by a decline in blended commission rate. Interest income was HK$2,650.2 million (US$338.0 million), an increase of 28.0% from the first quarter of 2025. The increase was mainly driven by higher interest income from margin financing, bank deposit and securities borrowing and lending business. Other income was HK$564.3 million (US$72.0 million), an increase of 79.8% from the first quarter of 2025. The increase was primarily attributable to higher currency exchange income, IPO financing service income and fund distribution service income. Costs Total costs were HK$749.3 million (US$95.6 million), largely stable compared to HK$749.0 million in the first quarter of 2025. Brokerage commission and handling charge expenses were HK$164.5 million (US$21.0 million), an increase of 14.6% from the first quarter of 2025. This increase was roughly in line with the growth of our brokerage commission and handling charge income. Interest expenses were HK$414.7 million (US$52.9 million), a decrease of 11.6% from the first quarter of 2025. The decrease was primarily due to lower expenses associated with our securities borrowing and lending business. Processing and servicing costs were HK$170.1 million (US$21.7 million), an increase of 25.0% from the first quarter of 2025. The increase was primarily due to increasing cloud service fees. Gross Profit Total gross profit was HK$5,106.7 million (US$651.4 million), an increase of 29.4% from HK$3,945.7 million in the first quarter of 2025. Gross margin was 87.2%, as compared to 84.0% in the first quarter of 2025. Operating Expenses Total operating expenses were HK$1,576.5 million (US$201.1 million), an increase of 25.1% from HK$1,260.4 million in the first quarter of 2025. Research and development expenses were HK$478.9 million (US$61.1 million), an increase of 24.1% from the first quarter of 2025. This was primarily due to an increase in research and development headcount to support strategic initiatives and new markets. Selling and marketing expenses were HK$556.8 million (US$71.0 million), an increase of 21.3% from HK$459.2 million in the first quarter of 2025. This was driven by the increase of new funded accounts. General and administrative expenses were HK$540.9 million (US$69.0 million), an increase of 30.3% from the first quarter of 2025. The increase was primarily due to an increase in general and administrative personnel to support business development. Income from Operations Income from operations increased by 31.5% to HK$3,530.2 million (US$450.3 million) from HK$2,685.3 million in the first quarter of 2025. Operating margin increased to 60.3% from 57.2% in the first quarter of 2025 mainly due to strong topline growth and operating leverage. Net Income Net income decreased by 61.2% to HK$831.0 million (US$106.0 million) from HK$2,142.7 million in the first quarter of 2025. Net income margin for the first quarter of 2026 decreased to 14.2% from 45.6% in the year-ago quarter. Non-GAAP adjusted net income decreased by 58.5% to HK$919.5 million (US$117.3 million) from the first quarter of 2025. Non-GAAP adjusted net income is defined as net income excluding share-based compensation expenses. For further information, see "Use of Non-GAAP Financial Measures" at the bottom of this press release. Net Income per ADS Basic net income per American Depositary Share (“ADS”) was HK$6.08 (US$0.78), compared with HK$15.44 in the first quarter of 2025. Diluted net income per ADS was HK$6.00 (US$0.77), compared with HK$15.28 in the first quarter of 2025. Each ADS represents eight Class A ordinary shares. Recent Development As previously announced, on May 22, 2026, the Company received a Notice of Investigation and an Administrative Penalty Pre-Notification Letter (the "Pre-Notification Letter") from the China Securities Regulatory Commission and its Shenzhen Bureau (collectively, the “CSRC”). The Pre-Notification Letter proposed penalties on the relevant Futu entities in mainland China and Hong Kong for conducting certain regulated business activities without the requisite licenses or approvals. The proposed penalties comprise (i) confiscation of illegal gains of approximately RMB470 million, and (ii) imposition of fines of approximately RMB1.38 billion, in an aggregate amount of approximately RMB1.85 billion. The unaudited financial statements for the three months ended March 31, 2026 included in this earnings release have reflected the impact of this subsequent event. These amounts were included in “Others, net” of the unaudited condensed consolidated statements of comprehensive income for the three months ended March 31, 2026. Prior to giving effect to this adjustment, the Company’s net income for the three months ended March 31, 2026 were approximately HK$2,922.0 million (US$372.7 million), and non-GAAP adjusted net income was approximately HK$3,010.6 million (US$384.0 million). These amounts exclude the accounting impact of the subsequent event described above, which has been reflected in the unaudited financial statements included in this earnings release. The proposed penalty remains subject to further proceedings and the final determination by the CSRC. The Company is entitled to submit statements, present defenses, and request a hearing. The Company will fully cooperate with the CSRC and exercise its lawful rights to safeguard the legitimate interests of the Company and its shareholders. Share Repurchase Program On November 18, 2025, our board of directors authorized a share repurchase program under which the Company may repurchase up to US$800 million worth of ADSs for a period ending December 31, 2027. As of the close of the U.S. market on May 27, 2026, we have repurchased approximately US$418 million worth of ADSs in open market transactions in accordance with the authorization under this share repurchase program. Subject to market conditions, the Company may continue to execute repurchases from time to time under this share repurchase program. Conference Call and Webcast Futu's management will hold an earnings conference call on Thursday, May 28, 2026, at 7:30 AM U.S. Eastern Time (7:30 PM on the same day, Beijing/Hong Kong Time). Please note that all participants will need to pre-register for the conference call, using the link https://register-conf.media-server.com/register/BIec7483756a8d4ef789028b4abb4be479 It will automatically lead to the registration page of "Futu Holdings Ltd First Quarter 2026 Earnings Conference Call", where details for RSVP are needed. Upon registering, all participants will be provided in confirmation emails with participant dial-in numbers and personal PINs to access the conference call. Please dial in 10 minutes prior to the call start time using the conference access information. Additionally, a live and archived webcast of this conference call will be available at https://ir.futuholdings.com/. About Futu Holdings Limited Futu Holdings Limited (Nasdaq: FUTU) is an advanced technology company transforming the investing experience by offering fully digitalized financial services. Through its proprietary digital platforms, Futubull and Moomoo, the Company provides a full range of investment services, including trade execution and clearing, margin financing and securities lending, and wealth management. The Company has embedded social media tools to create a network centered around its users and provide connectivity to users, investors, companies, analysts, media and key opinion leaders. The Company also provides corporate services, including IPO distribution, investor relations and ESOP solution services. Use of Non-GAAP Financial Measures In evaluating the business, the Company considers and uses non-GAAP adjusted net income, a non-GAAP measure, as a supplemental measure to review and assess its operating performance. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines non-GAAP adjusted net income as net income excluding share-based compensation expenses. The Company presents the non-GAAP financial measure because it is used by the management to evaluate the operating performance and formulate business plans. Non-GAAP adjusted net income enables the management to assess the Company's operating results without considering the impact of share-based compensation expenses, which are non-cash charges. The Company also believes that the use of the non-GAAP measure facilitates investors' assessment of its operating performance. Non-GAAP adjusted net income is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using non-GAAP adjusted net income is that it does not reflect all items of expense that affect the Company's operations. Share-based compensation expenses have been and may continue to be incurred in the business and is not reflected in the presentation of non-GAAP adjusted net income. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance. For more information on this non-GAAP financial measure, please see the table captioned "Unaudited Reconciliations of Non-GAAP and GAAP Results" set forth at the end of this press release. Exchange Rate Information This announcement contains translations of certain HK dollars ("HK$") amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from HK$ to US$ were made at the rate of HK$7.8400 to US$1.00, the noon buying rate in effect on March 31, 2026 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the HK$ or US$ amounts referred could be converted into US$ or HK$, as the case may be, at any particular rate or at all. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from the management team of the Company, contain forward-looking statements. Futu may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Futu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Futu's goal and strategies; Futu's expansion plans; Futu's future business development, financial condition and results of operations; Futu's expectations regarding demand for, and market acceptance of, its credit products; Futu's expectations regarding keeping and strengthening its relationships with borrowers, institutional funding partners, merchandise suppliers and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Futu's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Futu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor inquiries, please contact: Investor RelationsFutu Holdings [email protected] _______________________1 The number of funded accounts refers to the number of brokerage accounts with Futu that have a positive account balance. Multiple funded accounts by one client are counted as one funded account.2 Multiple brokerage accounts by one client are counted as one brokerage account.3 The number of users refers to the number of user accounts registered with Futu.4 Non-GAAP adjusted net income is defined as net income excluding share-based compensation expenses. Non-GAAP to GAAP reconciling items have no income tax effect.

This article first appeared on GuruFocus. Total Revenue: HKD5.9 billion, up 25% year-over-year. Brokerage Commission and Handling Charge Income: HKD2.6 billion, up 14% year-over-year. Interest Income: HKD2.7 billion, up 28% year-over-year. Other Income: HKD564 million, up 8% year-over-year. Total Cost: HKD749 million. Gross Profit: HKD5.1 billion, up 29% year-over-year. Gross Margin: 87.2%, compared to 84% in the first quarter of 2025. Operating Expenses: HKD1.6 billion, up 25% year-over-year. Income from Operations: HKD3.5 billion, up 31% year-over-year. Operating Margin: 30.3%, compared to 57.2% in the first quarter of 2025. Net Income: HKD831 million, decreased by 61% year-over-year. Net Income Margin: 14.2%. Share Repurchase: Approximately USD 418 million worth of ADS repurchased. Warning! GuruFocus has detected 1 Warning Sign with FUTU. Is FUTU fairly valued? Test your thesis with our free DCF calculator. Release Date: May 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Futu Holdings Ltd (NASDAQ:FUTU) added 225,000 net new funded accounts in Q1 2026, bringing total funded accounts to 3.59 million, a 34% year-over-year increase. Singapore showed double-digit sequential growth in net new funding accounts, with a CAGR of over 50% in the past three years. Malaysia led in client addition due to effective marketing initiatives and strong IPO product capability, with profitability expected to improve and achieve breakeven within 6 to 12 months. Total revenue increased by 25% year-over-year to HKD5.9 billion, driven by higher interest income from margin financing and bank deposits. Futu Holdings Ltd (NASDAQ:FUTU) has a strong presence in Hong Kong and Singapore, with plans to expand into more international markets, enhancing business resilience and growth potential. Mark-to-market losses in client equity holdings had a substantial negative impact, affecting net asset inflow. Interest income declined 13% quarter-over-quarter due to lower interest income from security borrowing and lending business. Operating expenses increased by 25% year-over-year, driven by higher R&D and customer acquisition costs. Net income decreased by 61% year-over-year and 75% quarter-over-quarter to HKD831 million, impacted by an administrative penalty from the China Securities Regulatory Commission. Regulatory updates from CSRC and SFC created short-term disruptions, with Mainland China accounts representing a significant portion of revenue and client assets. Q: Can you share your understanding of the latest regulatory requirements published by CSRC and SFC and their impact on your operations? A: (Hua Li, CEO) The regulatory updates apply industry-wide, and we are proactively responding. We have ceased account openings for Mainland Chinese ID holders and maintain strict compliance measures. Mainland China accounts represent about 13% of our funded accounts and 20% of revenue. We do not expect these updates to materially impact our full-year guidance of 800,000 net new funded accounts. Q: How are your credit facilities and credit ratings affected by recent regulatory updates and penalties? A: (Yu Chen, CFO) Our credit facilities remain intact, and we are in constructive discussions with credit rating agencies and banks. We expect to receive our annual credit rating from S&P soon and are confident in a positive outcome. Q: What is the growth potential in international markets, particularly in mature markets like Hong Kong and Singapore? A: (Yu Chen, CFO) Despite extensive user coverage, there is significant potential for growth in client assets in Hong Kong and Singapore. Both markets have substantial wealth management assets, and we are confident in further penetrating these markets with our comprehensive product portfolio and strong brand presence. Q: What opportunities do you see in the US prediction market, and how does it align with your current business? A: (Hua Li, CEO) We obtained an OCM license to conduct prediction market brokerage in the US. These products are intuitive and flexible, potentially driving client acquisition and trading activation. We aim to accumulate expertise in product design and risk control, which will support future expansion into additional markets. Q: Can you provide an update on your crypto business in Hong Kong and potential synergies with other regions? A: (Yu Chen, CFO) We are enhancing our virtual asset product capabilities and exploring collaboration opportunities between our brokerage businesses and crypto exchange. We plan to introduce functionalities like OTC trading and staking services, aiming to build a comprehensive ecosystem for virtual assets. For the complete transcript of the earnings call, please refer to the full earnings call transcript.