TIGR

Ladies and gentlemen, thank you for standing by. Welcome to UP Fintech Holding Limited Fourth Quarter and Full Year 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. There will be a presentation followed by question and answer session. I must advise you that this conference is being recorded today, March 19, 2026. I would now like to hand the conference over to your first speaker today, Mr. Aaron Li, Head of Investor Relations. Thank you. Please go ahead.

Thank you, operator. Hello, everyone, and thank you for joining us on the call today. UP Fintech Holding Limited fourth quarter and full year 2025 earnings release was distributed earlier today and is available on our IR website at ir.itigerup.com, as well as GlobeNewswire. On the call today from UP Fintech are Mr. Wu Tianhua, Chairman and CEO, Mr. John Zeng, our CFO, Mr. Huang Lei, CEO of US Tiger Securities, and Mr. Kenny Zhao, our Financial Controller. Mr. Wu will give an overview of our business operations and discuss corporate highlights. Mr. Zeng will then discuss our financial results. They will both be available to answer your questions during the Q&A session that follows their remarks. Now, let me cover the safe harbor.

The statements we are about to make contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. For more information, please refer to our Form 6-K furnished today and our annual report on Form 20-F filed on April 23, 2025. We undertake no obligation to update any forward-looking statement except as required under applicable law. It is my pleasure to now introduce our Chairman and CEO, Mr. Wu Tianhua. Mr. Wu Tianhua will make remarks in Chinese, which will be followed by English translation. Mr. Wu Tianhua, please go ahead with your remarks.

Hello, everyone, and thank you for joining Tiger Brokers fourth quarter and full year 2025 earnings conference call.

In 2025, supported by growth in our user base and client assets, continued enhancement of product offerings and localization as well as supportive market environment, we delivered substantial improvement in both financial and operating performance. Full-year total revenue reached $612.1 million, up 56.3% compared with 2024. We are also glad to see further improvement on profitability. For the full year, GAAP net income attributable to UP Fintech was $170.9 million and non-GAAP net income was $186.5 million, both set record high, up 181.4% and 164.7% year over year respectively.

In the fourth quarter, total revenue was $175.6 million, an increase of 41.5% year-over-year. Fourth quarter GAAP and non-GAAP net income attributable to UP Fintech were $45.2 million and $48.9 million, up 61.3% and 60.5% year-over-year respectively. In the fourth quarter, we added 29,700 newly funded accounts. As the total number of newly funded accounts reaching 161,900 for full year 2025, surpassing our annual target of 150,000. As of the end of 2025, total funded accounts surpassed 1.25 million, representing a 14.8% increase from the end of 2024. Year-to-date, we continue to see healthy paying client growth.

We target to acquire 150,000 new funded clients in 2026 while prioritizing user quality. Our net asset inflow remains strong. For the full year 2025, net asset inflows exceeded $10 billion, with over $3 billion of net inflow in the fourth quarter alone. Hong Kong was the largest contributor to retail net asset inflow in the fourth quarter. Despite the impact of mark-to-market losses on client assets, total client assets at the end of fourth quarter remained stable quarter-over-quarter at $80.8 billion, up 45.7% year-over-year.

[Foreign language]

We are very pleased that over the past year, Tiger's platform has continued to win the trust and recognition of both new and existing users across our markets. Client assets in all regions have increased meaningfully. In particular, client assets in Singapore and the Australia-New Zealand market delivered strong double-digit and even more than doubling year-over-year growth. Hong Kong was a standout. Client assets there more than tripled year-over-year. Even in the fourth quarter, marked by a pullback in the Hong Kong stock market, client assets from Hong Kong still increased by more than 20% quarter-over-quarter. This performance benefited from our continued investment in the local client acquisition as well as the high-quality user base in Hong Kong.

Notably, the quality of newly funded users continued to improve in the fourth quarter in Hong Kong, with the average net asset inflow of newly acquired clients exceeding $43,000, reaching a historic high.

[Foreign language]

We also remain focused on enriching our product offerings and enhancing user experience. In the fourth quarter, we made an important upgrade to our options combo trading feature by adding support for combined orders involving options and underlying cash equities. This allows investors to deploy more sophisticated strategies to navigate market volatility, while real-time combination quotes significantly improve order execution fill rate when users trade based on combination price movements. As our presence in the Australia market has expanded in recent years, our user base and investment appetite there have become more diversified. In response, in the fourth quarter, we launched margin accounts in the Australia market. This has significantly strengthened our product competitiveness locally and further completed our trading service ecosystem.

[Foreign language]

Our To B business continues to perform well. In the investment banking business, we underwrote a total of 22 U.S. and Hong Kong IPOs in the fourth quarter, including Pony AI Inc. and Hesai, bringing the total number of U.S. and Hong Kong IPO underwritings for the year to 47. In our ESOP business, we added 39 new clients in the fourth quarter, bringing the total number of ESOP clients served to 848 as of the end of 2025.

[Foreign language]

Now I'd like to invite our CFO, John Zeng, to go over our financials.

Grace. Thanks, Tianhua Wu and Aaron Li. Let me go through our financial performance for the fourth quarter. All numbers are in U.S. dollar. Total revenue for this quarter reached $175.6 million, reflecting a year-over-year increase of 42% and a slight quarter-over-quarter increase of 0.2%. For the full year, total revenue were $612.1 million, increased of 56% compared to the previous year. Both quarterly and full year top-line reach an all-time high in our operating history. The cash equity take rate this quarter was 6.4 basis points, down from 7.1 basis points in the previous quarter as the figure normalized in Q4 due to less meme stock trading compared to third quarter.

Within commission revenue, about 65% comes from cash equities, 25% from options, and the rest comes from futures and other products. Regarding cost, interest expense was $19 million, increased by 14% from same quarter last year due to the increase in margin financing and securities lending activities. Execution and clearing expense were $5.3 million, decreased 13% from the same period of last year, primarily due to lower SEC regulatory fees. Employee compensation and benefits expense were $50.3 million, an increase of 35% year-over-year due to an increase of global headcounts. Occupancy depreciation and amortization expense increased 34% to $2.9 million due to the increase in office space and relevant leasehold improvements.

Communication and market data expense were $14.5 million, an increase of 23% year over year due to the increase in user base and IT related services. Marketing expense were $15.8 million this quarter, increased 67% year over year as we increased the marketing and branding spending under a more favorable market backdrop. General and administrative expense were $14 million, an increase of 118% year over year due to our uncollectible underwriting fee and an increase in professional service fees. Total operating costs were $102.9 million, an increase of 41% from the same quarter of last year. As a result, in the fourth quarter, GAAP net income at $45.2 million, non-GAAP net income at $48.9 million, both increased to 61% year-over-year.

For the full year of 2025, total GAAP profit was $171.2 million, and the non-GAAP net income was $186.8 million. Both are all-time high and increased 182% and 165% respectively compared to last year. Now I have concluded our presentation. Operator, please open the line for Q&A. Thanks.

Thank you. We will now begin the question-and-answer session. To ask a question on the phone, please press star one one and wait for your name to be announced. To cancel your request, you can press star one one again. One moment for the first question. Our first question comes from the line of Dennis Bai from UBS. Please go ahead.

[Foreign language] This is Dennis from UBS, thank you for giving me the opportunity to ask questions, and congratulations on the solid results.

I have two questions. First, regarding the 150,000 client acquisition guidance for 2026, could you please break down the expected contribution by market? Does this include any plans to enter new markets this year? Also, could you please share a market breakdown of new client acquisition in the fourth quarter of last year? Second question, does the company have a clear plan for the convertible bonds maturing around the end of the first quarter this year, conversion or repayment? Could this create any pressure on your cash flow or capital? Thank you.

[Foreign language] [Foreign language]

OK, I'll translate. First in terms of our full year target starting from 2025, our acquisition strategy has been set with a clear focus on quality and ROI. We've been putting more emphasis on expanding our high net worth client base rather than merely pursuing user numbers. We have executed firmly with this strategy. In 2025, full year net asset inflow exceeded $10 billion and the majority of which came from retail clients. Net inflow from retail users doubled compared with 2024 and reached an all-time high on the full year basis. This helped total client asset jump from a $40 billion range at the end of 2024 to a $60 billion range by the end of 2025, which in turn has made our overall profitability more resilient.

When we set this 150,000 new funded user target for 2026, we are following the same strategy and principles. We are confident that in terms of asset contribution and volatility, the quality of newly acquired user in the coming year will remain constant with what we saw in 2025. For the regional breakdown of new funded accounts in the fourth quarter, Singapore and Hong Kong each contributed 35%. The Australian New Zealand market contributed around 25% and the remaining roughly 5% came from the U.S. market. Looking at the 150,000 new funded user target for 2026, excluding any impact from the new markets, we expect the regional mix to be similar to what we saw in the Q4 with Hong Kong and Singapore as the main contributor.

[Foreign language] We issued a $155 million private CB back in 2021.

All of those will mature by April. Two strategic investors have agreed to extend their holding around $50 million for another two years. We will repay the rest $100 million to investors. Given our current financial profile, we don't think the repayment of the CB will have a meaningful impact on our liquidity or business operations. Thanks.

Thank you for the questions. One moment for the next question. The next question comes from the line of Emma Xu of Bank of America Securities. Please go ahead.

[Foreign language] The first question is how has the operating performance been since the first quarter, including the number of new funded customers, client assets and trading activities?

The second question is about the CAC. Your average customer acquisition cost rose significantly in the fourth quarter. What are the reasons behind this increase? What is the target average customer acquisition cost for 2026?

[Foreign language] [Foreign language]

Okay, for the first question, on the number of new funded accounts, the recent market volatility did not have a lot of impact on our acquisition pace. We expect Q1 new funded accounts to be roughly flat versus Q4. On user activity, we are seeing the following trends so far in Q1. Due to market volatility and geopolitical factors, the U.S. equity turnover has declined slightly compared with Q4. In contrast, after a previous pullback, Hong Kong equity has seen a pickup in trading activity and trading volume. In the Q1 quarter to date, Hong Kong share trading volume has already exceeded Q4 entire trading volume. With about two weeks remaining in the quarter, we will continue to monitor closely.

As for the client assets, both U.S. and Hong Kong equity markets have continued to pull back in Q1, which will lead to some mark-to-market losses in client assets. Thus, in the first two months, we saw strong net asset inflow driven by client position covered, especially from retail users. In addition, our continued marketing and branding input in 2025 have brought in more high net worth clients. As a result, at the end of February, client assets have remained relatively stable quarter-over-quarter and we will closely monitor market activity throughout March.

[Foreign language] Total marketing expense increased around $4 million quarter over quarter, primarily due to the below three reasons. First, in Singapore, we stepped up campaigns and advertising in the fourth quarter around New Year and Christmas. For example, we partnered with HelloRide to promote healthy commuting and further embed Tiger into local daily life. To deepen connection with the local community, we hosted our flagship Tiger Trade Experience 2025 event at year-end, which attracted more than 4,000 local users and received very positive feedback. Tiger Singapore also co-organized its first charity fundraising event with local non-profit organization Food from the Heart, raising funds to support youth development programs that benefit over 400 local teenagers. From investment service to community initiative, Tiger is integrating into local communities through a different angle and expanding our brand influence. In Hong Kong, we continue to increase marketing activities, including local community events and referral-based acquisition programs. As we mentioned before, Hong Kong clients are of very high quality and their payback period is the shortest across our licensed markets. Even though Hong Kong market experienced a pullback in Q4, our acquisition pace was not slowed down. Hong Kong contributed about 35% of the group's newly funded accounts in the quarter, and the user quality further improved, with the average net asset inflow of newly acquired clients rising from around $30,000 to a record high of about $43,000. In addition, our wealth management business has also developed very well over the past year.

To attract more high net worth clients to Tiger platform, we have been partnering with high quality channels, which led to higher channel rebates costing in the fourth quarter.

At the same time, the number of newly funded users in Q4 was slightly lower than in the third quarter. Those factors combined resulted in a significant increase in average CAC. Looking ahead in the first quarter, we expect both marketing expense and the number of new users to be quite stable quarter-over-quarter. Therefore, the average CAC, we expect to remain at the same level, but we are comfortable with the payback period and the user quality. Looking forward, we will adjust our strategy based on market conditions to ensure that ROI remains healthy. Thank you.

One moment for the next question. Our next question comes from Cindy Wang of China Renaissance. Please go ahead.

[Foreign Thanks for taking my question. I have two questions here. First, 4Q 2025 top line has been quite flattish, but the bottom line dropped 17% quarter-over-quarter as we've seen costs increase a lot in this quarter. So what is the reasoning behind it and any guidance for costs this year? Second, we have seen a significant increase in other revenue since second half of last year, so mainly contributed by wealth management and IPO service. So could management share some color on the wealth management business development and current AUM, as well as the progress of the investment banking business. Thank you.

[Foreign language] Revenue was roughly flat quarter-over-quarter, while our bottom line declined by around $10 million. In addition to the roughly $4 million impact from higher marketing expense mentioned earlier, there are two factors behind the profit decline. Number one, in the fourth quarter communication and market data expense increased by about $2.6 million quarter-over-quarter. This was mainly due to the upgrades we made to the crypto market data and the additional R&D costs for improving the interaction and experience of Tiger AI. We also had some expense related to overseas cloud services we purchased at the end of the year. The quarter-over-quarter increase in G&A is primarily due to we booked around $3 million in bad debt provision in the quarter. This relates to IPO underwriting deals from previous years, when revenue had already been recognized but the counterparty has not yet paid. We are doing all the necessary collection procedures. This is a one-off impact and if we recover the payment in the future, the amount will offset expense in the period when it's received. Those two items, together with higher marketing expense, added up to about $10 million in additional costs. Bottom line declined quarter-over-quarter, while top line is flat. Thanks.

[Foreign language]

For your second question, our other revenue has increased from only a few million dollars quarterly to around $25 million-$30 million for the quarter in the past two quarters. ESOP business has certainly contributed since we launched the ESOP business in 2018. We have served around 750 companies and built a solid reputation in the industry. The main drivers of this step up in other revenue, however, are our wealth management and investment banking business. For the investment banking, Tiger has long been among the industry leaders in the U.S. Tier 1 rating in terms of both deal count and size. Over the past year, as the popularity of Hong Kong IPO subscription has increased, our Hong Kong IPO pipeline has also expanded steadily.

We have offered users more attractive and inclusive terms in financing rates and subscription experience. Through IPO subscriptions, many more Hong Kong users have become familiar with our platform. In Q4, Hong Kong IPOs continue to perform strongly on our platform. Total IPO subscription amount doubled quarter-over-quarter, while the number of subscribers increased by about 80% quarter-over-quarter. For full year 2025, total subscription amount reached HKD 1.2 trillion, surpassing the trillion mark for the first time and setting a new record. As for our wealth management business, user penetration is ramping quite fast. Currently, among every five new funded clients in our licensed markets, one uses our wealth management services, driven mainly by Hong Kong and Singapore.

In Q4, both AUM for mutual funds and assets in cash management tools such as Tiger Vault delivered close to double year-over-year growth. Our structural notes feature has also entered a rapid growth phase. Trading volume in Q4 increased by more than 50% quarter-over-quarter. The number of trading accounts grew several-fold year-over-year and product coverage continues to expand. In terms of product capabilities, we launched our strategy generation engine, Smart Fund AI. This tool helps fund manager quickly create investment suggestions based on fund selection criteria and clients' risk preference, significantly reducing research times and aligning more accurately with clients' investment goals. Thank you.

That concludes the Q&A session today. I would like to hand the call back to management for closing.

Thank you. I'd like to thank everyone for joining our call today. I'm now closing the call on behalf of the management team here at Tiger. We do appreciate you participating in this call. If you have any further questions, please reach out to our investor relations team. This concludes the call and thank you very much for your time. Bye bye.

Thank you.

That concludes today's conference call. Thank you for your participation. You may now disconnect.

Thank you for standing by. Welcome to the UP Fintech Holdings Limited's Third Quarter 2025 Earnings Conference Call. [Operator Instructions] I must advise you that this conference is being recorded today, December 4, 2025. I would now like to hand the conference over to your first speaker today, Mr. Aron Lee, the Head of Investor Relations. Thank you. Please go ahead.

Thank you, operator. Hello, everyone. We appreciate you joining us today for our UP Fintech Holding Limited's Third Quarter 2025 Earnings Call. The earnings release was distributed earlier today and is available on our Investor Relations website at ir.itiger.com and through GlobeNewswire. On the call today with us are Mr. Wu Tianhua. Chairman and Chief Executive Officer; Mr. John Zeng, Chief Financial Officer; Mr. Huang Lei, CEO of U.S. Tiger Securities; and Mr. Kenny Zhao, our Financial Controller. Mr. Wu will provide an overview of our business operations and key corporate highlights, followed by Mr. Zeng, who will discuss our financial results. They will both be available to answer your questions during the Q&A session afterwards. Before we begin, I'd like to address the safe harbor statement. The upcoming remarks will contain forward-looking statements as defined by the U.S. Private Securities Location Reform Act of 1995. Actual results could differ materially due to various factors. For more details on these factors, please refer to our Form 6-K furnished today, December 4, 2025, and our annual report on Form 20-F submitted on April 23, 2025. We are not obligated to update any forward-looking statements unless required by law. Now it's my pleasure to introduce our Chairman and CEO, Mr. Wu, who will begin his remarks in Chinese, followed by English translation. Mr. Wu, please proceed.

[interpreted] Hello, everyone. Thank you for joining the Tiger Brokers' Third Quarter 2025 Earnings Conference Call. In the third quarter, Tiger once again achieved impressive performance, with all revenue segments and profit showing encouraging growth and reaching new historic highs. Our total revenue reached USD 175.2 million, representing a year-over-year increase of 73.3% and a quarter-over-quarter increase of 26.3%. We have maintained our strategy of prioritizing user quality and product experience, which has further improved our ROI and laid a solid foundation for ongoing profit growth. All of our licensed entities achieved profitability in the third quarter, resulting in a net income attributable to UP Fintech of USD 53.8 million, up 30% from the previous quarter and 3x the same quarter last year. Our non-GAAP net profit reached USD 57 million, growing 28.2% quarter-over-quarter and 2.8x year-over-year. Non-GAAP net profit hit new historical highs and has maintained double-digit quarter-over-quarter growth for 5 consecutive quarters. In the third quarter, we added 31,500 new funded accounts with Singapore and Hong Kong being the primary contributing markets. In the first 3 quarters of this year, we have acquired 132,200 new funded accounts. The total number of funded accounts reached 1,224,200, representing an 18.5% year-over-year increase. As of today, we've already achieved our annual guidance of acquiring 150,000 newly funded accounts. In addition, we are glad to see better brand recognition from Hong Kong users. In the third quarter, for the first time, Hong Kong accounted for over 30% of our quarterly new funded users, becoming a key growth engine alongside Singapore. More importantly, user quality in Hong Kong remains strong with average net asset inflow for newly acquired clients holding around USD 30,000 for 3 consecutive quarters. Meanwhile, ROI-driven acquisition strategy delivered standout results in Singapore. The average net asset inflow for newly acquired clients in the third quarter surpassed USD 60,000, a historical breakthrough and leads group average this quarter to above USD 30,000 for the first time. Regarding total current assets, net asset inflow remained robust, mainly driven by retail investors, coupled with the mark-to-market gains, total client assets reached a new record of USD 61 billion, up 17.3% quarter-over-quarter and 49.7% year-over-year, marking 12 consecutive quarters of growth. In the third quarter, all the overseas markets delivered double-digit quarter-over-quarter growth above 20% in client assets, with Hong Kong and U.S. increasing by more than 60% and 50%, respectively. In the third quarter, we continued to refine our product features to make global investing more accessible and convenient. As the leading tech-driven brokerage in Singapore, we constantly enhance the user experience for local investors. To enable more local investors to easily participate in stock market, Tiger Singapore has waived the Singapore Exchange quarterly custody fee for accounts with no [frills], thereby reducing the holding cost for long-term investors. In Hong Kong, we have expanded our product offering by introducing Japanese market derivative services, such as Nikkei futures, for the first time in the third quarter, further solidifying our global multi-asset strategy. Additionally, in September, we launched cryptocurrency trading in New Zealand, providing local users with investment services in major cryptocurrency, like Bitcoin and Ethereum. During the third quarter, Tiger platform enhanced cryptocurrency-related features by adding unique data such as macro market insights and holdings information for companies, assisting users for recognizing investment opportunities and making better investment decisions. Tiger AI has seen a rapid increase in usage with user numbers growing nearly fivefold year-over-year and the number of conversations increasing tenfold. Meanwhile, the intelligent investment analysis tool, TradingFront AI, provides real-time portfolio analysis and market insights for asset management business, helping investment advisors enhance their analysis efficiency and decision-making quality. Our 2B business also maintained strong momentum, significantly boosting other revenue by doubling them quarter-over-quarter, achieving a historic high for a single quarter. In the third quarter, we underwrote 5 U.S. IPOs, all serving as the sole bookrunner, including Linkhome and Yimutian. Additionally, we underwrote 5 Hong Kong IPOs and 1 Hong Kong public follow-on offering, including Geek Plus and Boss Zhipin. With the IPO market being active, supported robust growth in our IPO subscription business with the number of subscribers increasing by 39.3% quarter-over-quarter and subscription amount surging by 121.5%, reflecting our platform's enhanced underwriting capability. In ESOP business, we added 46 new clients in the third quarter, bringing the total to 709, a year-over-year increase of 19%. Now I'd like to invite our CFO, John, to go over our financials.

Great. Thanks, Tianhua and Aron. Let me go through our financial performance for the third quarter. All numbers are in U.S. dollars. We saw encouraging growth in all revenue components this quarter. Commission income was $72.9 million, increased 77% year-over-year and 13% quarter-over-quarter. Interest income was $73.2 million, increased 53% year-over-year and 25% quarter-over-quarter in line with our sequential growth in margin and securities lending balance. Total revenue reached $175.2 million, up 73% year-over-year and 26% quarter-over-quarter. Cash equity take rate was 7.1 bps this quarter, increased from 6.4 bps of last quarter. The uptick in cash equity take rate was mainly due to the increased trading volume of fewer low-priced U.S. stock during the third quarter, as we charge commission per share for U.S. stock trading. Within commission revenue, about 67% comes from cash equities, 25% from options and the rest from futures and other products. Now on to cost. Interest expense was $21.9 million, increased 40% year-over-year in line with the increase in interest income from margin and the securities lending business. Execution and clearing expense were $4.5 million, increased 27% from the same period of last year, in line with the increase in commission and trading volume. Employee compensation and benefits expense were $47.2 million, an increase of 64% year-over-year due to the headcount increase to strengthen overseas growth and R&D. Occupancy, depreciation and amortization expense were $2.8 million, increased 28% year-over-year due to the increase in office space and relevant leasehold improvements. Communication and market data expense were $11.8 million, an increase of 21% year-over-year due to the increase in user base and IT-related services fees. Marketing expenses were $12.9 million this quarter, increased 57% year-over-year as we beefed up user acquisition, particularly in Singapore and Hong Kong markets. General and administrative expense were $10.3 million, an increase of 49% year-over-year, due to an increase in professional service fees. Total operating costs were $89.4 million, an increase of 51% from the same quarter of last year. As a result, bottom line increased on both GAAP and non-GAAP basis. GAAP net income were $53.8 million, up 30% quarter-over-quarter and 3x of last [indiscernible]. Non-GAAP net income were $57 million, a 28% increase quarter-over-quarter and 2.8x the same quarter of last year. The non-GAAP net profit margin further expanded to 33% in the third quarter. That has concluded our presentation. Operator, please open the line for Q&A. Thanks.

[Operator Instructions] And our first question will come from Pu Han from CICC.

First, congratulations on the exciting results achieved this quarter. This is Pu Han from CICC. I have two questions. The first one is regarding the AUM breakdown. So how much is from clients net asset inflow and how much from mark-to-market gain? And in terms of the net asset inflow, how much is from retail investors and how much from institutions? The second question is about the take rate. We see both the blended take rate and the cash equity take rate increased a lot this quarter. So could you please share the reason behind the increasing take rate? That's my two questions.

[interpreted] In the third quarter, client assets saw a meaningful increase of about 17%, reaching a historic high of USD 61 billion. So of this increase, roughly 30% were from the net asset inflow and 70% were from the mark-to-market gains. More than 60% of the net asset inflow came from Singapore and Hong Kong markets, with retail clients being the key contributor.

For cash equities, the take rate increased from 6.4 bps in second quarter to 7.1 bps in the third quarter, primarily due to some U.S. local penny stock were particularly active in the quarter. Since we charge commission per shares for U.S. stock, this led to an increase in cash equity take rate. As for the blended take rate, aside from the increase in cash equity commissions, futures trading volume dropped from around 7% in the second quarter to about 4% in the third quarter. As we count notional value for futures trading, the decrease in futures trading volume, while increasing commission income, contributed to a notable increase in our overall blended take rate. This expense while our stock trading volume showed a quarter-over-quarter increase consistent with the increase in commission income, but the total trading volume was actually down. Thanks.

Operator, please move on to the next question.

And our next question will come from Cindy Wang with China Renaissance.

This is Cindy from China Renaissance and congrats for the great third quarter results. I have two questions here. First, could you give us the breakdown of 31,500 new funding accounts by regional in third quarter? And second, customer assets in overseas markets enjoyed significant sequential growth in third quarter. Could you please provide details on the onshore user assets quarter-over-quarter change and their contribution in overall client assets in third quarter?

[interpreted] So to your first question, in the third quarter, about 40% of newly funded accounts came from the Singapore market, approximately 35% were from the Hong Kong and 20% from Australia and New Zealand market and the rest 5% from the U.S. market. So in the third quarter, client assets for the onshore investor also saw a double-digit quarter-over-quarter increase with both institutional and retail clients experiencing net asset inflow and mark-to-market gains also boosted the quarter-over-quarter increase. Due to our global expansion over the past few years, the growth pace for client assets in overseas markets has been faster. By the end of the Q3, client assets of onshore retail users as a percentage of our total client assets has dropped to below 15%. The new account opening rules require onshore investors to hold value overseas, including Hong Kong identification to open accounts with us. It has been the same rule across the whole industry. We remain optimistic about the Greater China market because many high net worth individuals in Greater China already have overseas identities and the requirement for the Hong Kong Quality Migrant Admission Scheme gradually becoming less, I would say, stringent. The global asset allocation for investors is just getting started, presenting tremendous market potential. Just by serving this cohort, we will be able to sustain strong growth in client assets and trading volumes. Thanks, Cindy.

Operator, let's proceed.

And our next question will come from Emma Xu from BofA Securities.

So the first question is about the operations so far in the fourth quarter. In particular, could you share any early trends around the trading volume, client assets and new funded accounts? And the second question is about your clearing cost, which decreased quite significantly in the third quarter. So what are the major reasons behind? And do you believe the current clearing cost is sustainable or you have further room for reduction?

[interpreted] Okay. So regarding trading volume, the market remains quite active. Our trading volume for the first 2 months of the fourth quarter is already on par with the entire Q3, partly due to the increase in futures trading volume. Cash equity trading volume in the first 2 months of the fourth quarter is more than 2/3 of the cash equity trading volume in the third quarter. In terms of client assets, net asset inflow quarter-to-date remains robust, and are expected to be slightly better than the Q3. However, some users had mark-to-market loss due to the market volatility in the fourth quarter, we will have a better idea of the total client assets movement by the end of December. As of new funded accounts, we have already achieved our annual target of acquiring 150,000 clients for the year. The number of new funded accounts in Q4 are expected to be roughly in line with it in Q3. We will continue to prioritize future quality, ensuring our growth aligns with healthy business model.

So our commission income increased by 13% quarter-over-quarter. Clearing costs decreased by 17% this quarter, bringing the quarterly clearing costs to a historic low of 6%. The key reason is SEC in May announced that it will no longer charge transaction fee. Since majority of the trading volume on our platform are in U.S. securities, this changes in the asset fee has largely helped us reduce clearing costs. We believe the current clearing cost rate is quite sustainable as we are self-clearing for all core products, only a small number of stock and derivatives are cleared by third parties.

Operator, let's move on to the next question, please.

Our next question will come from Ling Tan from Haitong.

I will quickly translate my questions. Congratulations on a very good, solid third quarter result. My first question is regarding the overall operating costs and expenses. I noticed that in third quarter, there is a notable increase in the overall cost and expenses, particularly in R&D as well as employee compensation, which is higher than the previous guidance of 10% to 20% year-over-year growth. Could management explain a little bit on what's the reason behind the increase? And looking forward, do you expect the overall operating costs and expenses to remain at the current level? Or do you expect it will gradually go up or trend down? My second question is regarding Hong Kong market. In third quarter, Hong Kong contributed to roughly around 40% of the total new -- newly funded accounts. Could management explain a little bit more on Hong Kong's contribution regarding net asset inflow, total revenue as well as net profit? And also looking forward, how do you plan to maintain the strong growth in Hong Kong, given Hong Kong is a highly competitive and highly penetrated market?

So the rise in labor costs can be attributed to several factors. First, with our global expansion, the staff headcount has increased, and we have higher experienced R&D personnel to enhance our product offerings. Second, we have accrued more bonus given the recent performance. In addition, our asset management unit performed well in the third quarter, so we paid performance bonus to our fund managers. So as a result, labor costs in the third quarter were higher than normal single quarters. As for G&A expense, the increase is mainly due to -- as we grow globally, we are required to have more professional services related to AML, audit consulting and legal services. We anticipate those expense will remain at this level in the near future. So in the third quarter, Hong Kong accounts for about 35% of new users and approximately 1/4 of net asset inflow, making it a large key growth engine [indiscernible] Singapore. As for bottomline, Tiger Brokers Hong Kong has been profitable over the past years, though, its contribution to group profit was still relatively low. Considering the high user quality in Hong Kong, our current focus is to further improve our product offerings and increase market share rather than prioritizing profit contribution from the Hong Kong market. We are quite satisfied with the growth pace since entering Hong Kong. Our user base is very diversified, including existing investors using other brokers and the younger generation entering the market. We believe our product experience combined with competitive pricing are fundamental to Tiger's growing presence in Hong Kong and the reason why different users choose us. Since entering the Hong Kong market, client assets have consistently seen double-digit growth quarter-over-quarter with over 60% increase in the third quarter. The average client asset per user for both new and existing clients exceeded USD 30,000 and both velocity and ARPU are the highest across all our markets. As we increase our user acquisition in Hong Kong, along with the ongoing enhancement of our product offering like cryptos, we remain optimistic about future growth in this market. It's only a matter of time Hong Kong becomes another major profit contributor for the group.

Operator, let's move on.

And our next question will come from Dennis Bai from UBS.

Congratulations on the strong results. My first question is about client acquisition cost, perhaps CAC. We've seen an uptrend. In 2024, the CAC was about USD 150. And in the first 3 quarters, the average CAC is about $250 and in Q3, particularly the CAC exceeds USD 400, and there's no new market entry. Could you please break out the Q3 CAC by market and share your outlook for CAC in Q4 and next year? And my second question is about the interest income. We saw a sharp Q-o-Q increase in Q3, but the margin financing and stock lending balance remained flat sequentially. Could you please explain what drives the interest income growth and whether this trend is sustainable?

So overall, we privatize user quality and dynamically adjusting customer acquisition costs based on market conditions. As a result, average CAC can fluctuate across different periods and for different markets. This year, we have continued to optimize our customer acquisition strategy by eliminating channels that do not meet our ROI standards and focus on attracting high net worth users, particularly in the Singapore market. As a result, average CAC in Singapore has been rising from just over $100 back in 2024 to over $400 this year. At the same time, the quality of new users from Singapore keeps improving with the average net inflow per new users exceeding $60,000 in the third quarter. From a lifetime value perspective, we believe this will be for our profitability in the long term. The Hong Kong market has always been competitive, leading to a higher average CAC, which remains stable in the $300 to $400 range. Back in this quarter, it was about USD 300. However, due to the high quality of the local users, the payback period is still the shortest among all the markets we entered. In Australia and New Zealand, and U.S., we adopt a long-term approach to gradually earn local users' trust, resulting in a relatively stable average CAC around $200. Looking ahead, we will continue to adjust our customer acquisition strategy based on market conditions and competitive dynamics. So there are two key reasons for this interest income increase but margin balance relatively flat. So the #1 reason is the directed growth of client asset handing to an increase in client per cash adding approximately $1 billion from second quarter to third quarter. Additionally, as our profitability expense, our return earnings contributed to an increased cash balance as well. Both of those will boost interest income, but not reflected in increase in the margin financing or securities lending balance. The second reason is that while the overall margin and security lending balance remains flat from second quarter to third quarter, but the balance of high spread business, such as margin financing and the securities lending increased, while balance of lower spread business like [indiscernible] decreased, results in flat margin and security imbalance, while interest income had a big jump. Thanks.

Operator, let's move on to next question.

And I'm showing no further questions from our phone lines. And I'd now like to pass it back to Aron Lee for any closing remarks.

Thanks. I'd like to thank everyone for joining the call today. I'm now closing the call on behalf of the management team here at Tiger. We do appreciate your participation in today's call. If you have any further questions, please reach out to our Investor Relations team. This concludes the call, and thank you very much for your time.

Thank you. This concludes today's conference call. Thank you for your participation. You may now disconnect. [Portions of this transcript that are marked [interpreted] were spoken by an interpreter present on the live call.]

Ladies and gentlemen, thank you for standing by, and welcome to the UP Fintech Holding Limited Second Quarter 2025 Earnings Conference Call. [Operator Instructions] I must advise you that this conference is being recorded today, August 27, 2025. I would now like to hand the conference over to your first speaker today, Mr. Aron Lee, the Head of Investor Relations. Thank you. Please go ahead.

Thank you, operator. Hello, everyone, and thank you for joining us on the call today. UP Fintech Holding Limited's Second Quarter 2025 earnings release was distributed earlier today and is available on our IR website at ir.itigerup.com as well as Globe Newswire services. On the call today from UP Fintech are Mr. Wu Tianhua, Chairman and Chief Executive Officer; Mr. John Zeng, Chief Financial Officer; Mr. Huang Lei, CEO of U.S. Tiger Securities; and Mr. Kenny Zhao, our Financial Controller. Mr. Wu will give an overview of our business operations and discuss Corporate highlights. Mr. Zeng will then discuss our financial results. They will both be available to answer your questions during the Q&A session that follows. Now let me cover the safe harbor. The statements we are about to make contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. A number of factors could cause actual results to differ materially from those contained in any forward-looking statements. For more information about factors that could cause actual results to materially differ from those in the forward-looking statements, please refer to our Form 6-K furnished today, August 27, 2025, and our annual report on Form 20-F filed on April 23, 2025. We undertake no obligation to update any forward-looking statements, except as required under applicable law. It is my pleasure to now introduce our Chairman and Chief Executive Officer, Mr. Wu. Mr. Wu will make remarks in Chinese, which will be followed by English translation. Mr. Wu, please go ahead with your remarks.

[Interpreted] Hello, everyone. Thank you for joining the Tiger Brokers Second Quarter 2025 Earnings Conference Call. In the second quarter, driven by the growth in our user base and client assets as well as enhancements in product offerings, our total revenue, trading volume, commission income, interest income and other income all reached record highs. Our total revenue for the quarter reached USD 139 million, representing a 58.7% year-over-year increase and a 13.1% quarter-over-quarter growth. Trading volume significantly surged both year-over-year and quarter-over-quarter, reaching USD 284 billion, which contributed to a 90.1% year-over-year increase and an 11.1% quarter-over-quarter increase in commission income, reaching USD 64.8 million. Meanwhile, the margin financing and securities lending balance further expanded to USD 5.7 billion, reflecting a 65.3% year-over- year growth. Net interest income for the second quarter amounted to USD 58.7 million, representing a 32.8% year-over-year increase, benefiting from expanded user base and increase in ARPU. Our net income attributable to UP Fintech for the second quarter was USD 41.4 million, up 36.2% from the previous quarter and 16x higher than the same quarter last year. Non-GAAP net income reached USD 44.5 million, increasing 23.5% sequentially and 8.6x the number in the same quarter last year. The non-GAAP net profit margin in the second quarter increased to 32%, set another record high and has increased for 4 consecutive quarters. Additionally, for the first half of the year, our operating profit and net profit have already exceeded the total of last year, indicating a more stable and healthier business model. Our ongoing efforts to penetrate existing markets and expand our high-quality user base, we are better positioned to navigate the market turbulence in a constantly changing environment. In the second quarter, we added 38,900 (sic) [ 39,800 ] new funded accounts, with Singapore and Hong Kong being the primary contributing markets. In the first half of the year, we have acquired more than 100,000 new funded accounts, more than 2/3 of our 3- year target of 150,000 in 2025. As of the end of second quarter, the total number of funded accounts reached 1,192,700, representing a 21.4% year-over-year increase. In addition, we are glad to see that the quality of newly funded users continue to improve in the second quarter with the average net asset inflow of newly acquired clients exceeding USD 20,000, reaching a historic high. Notably, the average net asset inflow of newly acquired clients in Hong Kong and Singapore is substantially higher at around USD 30,000. Regarding total client assets, net asset inflows remained robust, reaching USD 3 billion in the second quarter, over 70% of which came from retail investors. Coupled with approximately $3.2 billion in the mark-to-market gain, total client assets reached a new record of USD 52.1 billion, up 13.5% quarter-over-quarter and 36.3% year-over-year, marking 11 consecutive quarters of growth. In the second quarter, all markets saw double-digit sequential increases in client assets, with Hong Kong and Singapore experiencing around 50% and 20% quarter-over-quarter growth, respectively. Additionally, client assets in the Australia, New Zealand and U.S. markets increased by over 30% quarter-over-quarter. In the second quarter, we continued to optimize product features and enhance user experience. In Singapore, we launched the Central Provident Fund account trading and Supplementary Retirement Scheme account trading features in July. These new offerings enable eligible clients to utilize a portion of their CPF Ordinary Account savings and retirement funds to invest in approved financial products such as selected Singapore listed stocks, while enjoying tax benefits. We keep investing option features to better serve our high-value users. We added pending order reminder for expiry date options, alerting users through the app or message when they have unfulfilled orders approaching expiration to prevent unnecessary exercise of forced liquidation in consideration to a better user experience. We also introduced conditional market order for single-leg options, allowing users to set parameters such as price, time and underwriting conditions. When triggered, the system automatically submits corresponding single-leg market orders to help users build position a close position, reducing the hassles for constant manual monitoring. Our 2B business also maintained strong momentum. In the second quarter, we underwrote 7 Hong Kong IPOs and 4 U.S. IPOs, helping to boost our other revenue to a new quarterly high. Notable IPOs included Chagee and Zhou Liu Fu Jewelry, with Chagee becoming the first NASDAQ-listed Chinese tea beverage brand, attracting over 30,000 subscribers, setting a new record for U.S. IPO subscription in the past 3 years. In our ESOP business, we added 30 new clients in the second quarter, bringing the total to 663, a year- over-year increase of 15%. Now I would like to invite our CFO, John, to go over our financials.

Great. Thanks, Tianhua Wu and Aron. Let me go through our financial performance for the second quarter. All numbers are in U.S. dollars. We saw encouraging growth in all revenue components this quarter. Commission income was $64.8 million, increased 90% year-over-year and 11% quarter-over-quarter. Interest income was $58.7 million, increased 33% year-over-year and 9% quarter-over- quarter, in line with our sequential increase in margin financing and securities lending balance. Total revenue reached $138.7 million, up 59% year-over-year and 13% quarter-over-quarter. Cash equity take rate was 6.4 bps this quarter, slightly decreased from 6.7 bps of last quarter as the U.S. market runoff in the second quarter contributed to a higher average price per share. Within commission revenue, about 65% comes from cash equities, 28% from options and the rest from futures and other products. Regarding costs, interest expense was $17.3 million, increased 28% year-over-year, in line with the increase in our interest income and margin and securities lending business. Execution and clearing expense were $5.4 million, increased 92% from the same period of last year, in line with the increase in commission and trading volume. Employee compensation and benefits expense were $35.8 million, an increase of 25% year-over-year due to headcount increase in overseas offices and R&D. Occupancy, depreciation and amortization expense were $2.7 million, increased 29% year-over-year due to the increase in office space and relevant leasehold improvements. Communication and market data expense were $10.4 million, an increase of 18% year-over-year due to the increase in user base and IT-related service fees. Marketing expense were $9.9 million this quarter, increased 54% year-over-year as we expanded our marketing activities versus a year ago. General and administrative expense were $6.7 million, a decrease of 67% year-over-year as last year, we had a onetime bad debt provision of $13.2 million. Total operating costs were $71 million, an increase of 3% from the same quarter of last year. As a result, bottom line increased on both GAAP and non-GAAP basis. GAAP net income were $41.4 million, up 36% quarter-over-quarter and 15x higher year-over-year. Non-GAAP net income were $44.5 million, a 24% increase quarter-over- quarter and 8x higher year-over-year. The non-GAAP net profit margin further expanded to 32% in the second quarter. Now I have concluded our presentation. Operator, please open the line for Q&A. Thanks.

[Operator Instructions] We will now take the first question from the line of Cindy Wang from China Renaissance.

[Foreign Language] Congrats for great Q2 results. I have 2 questions here. First, the company's pretax profit increased sequentially, but income taxes expenses decreased sequentially. And also the effective tax rate dropped to around 15%. So what is the reasoning behind it and whether is it sustainable? And also the other revenue rose strongly. Is it mainly contributed from investment banking business? Second is regarding to the crypto business. So how is the company's cryptocurrency business progressing? And we've heard that the company has brought in strategic investor to jointly develop this area. So what are your plans and views on the development of the Hong Kong crypto market? And do you have any plans to obtain licenses in Singapore and the United States?

[Foreign Language] So there are 2 primary reasons for the decline in the effective tax rate. First, pretax profit rose across all licensed subsidiary in the second quarter, which reduced the weighting of our U.S. subsidiary in terms of total group profit. Since the U.S. has the highest tax rate, okay, this reduced weighting helped to lower the overall group's tax rate. Another reason is that we secured a more favorable tax rate in Singapore, reducing it from 17% to 13.5% in the second quarter. And regarding the substantial increase in other income, the growth in investment banking was indeed a major contributor. In the second quarter, we underwrote 4 U.S. IPOs, out of which 2 of them were the so book runner. In addition, foreign exchange income saw quarter-over-quarter increase due to market volatility. Our wealth management revenue also rose by about 70% due to rapid growth in AUM.

[Interpreted] I'll translate for the second question. We firmly believe that digital asset is now established as a major asset class, and we are committed to expanding our presence in the digital asset market. Our goal is to develop a comprehensive one-stop platform that seamlessly connects traditional financial assets with digital ones. Product experience has always been the key to Tiger's long- term success. Web 3 is still a relatively new area compared to the traditional Web 2 trading. We are committed to maintaining Tiger's high standards in product functionalities. To further these efforts, we have partnered with seasoned strategic investors in the Web 3 ecosystem, who are also pioneers and successful entrepreneurs in the early days of the digital asset exchange. So by combining their expertise with our experience in Web 2 fintech, we aspire to jointly develop leading-edge digital asset trading products that will stand out in the global market. Although this business still accounts for only a small part of our total revenue, we are seeing strong growth, especially as we keep expanding in Hong Kong and roll out industry-leading features, like digital asset deposit and withdrawal. We've seen a significant increase in trading volume on our Hong Kong platform and growth in the digital asset under custody. In the second quarter, digital asset trading volume increased around 65% quarter-over-quarter and asset under custody on our exchange nearly doubled sequentially. As for the global market, we've got digital asset trading license in 14 states in the U.S. and our application in Singapore is actively progressing. So moving forward, we plan to focus more resources on improving our product and supporting more trading features, aiming to offer our users a more comprehensive and seamless trading experience. Thank you. And operator, please move on to the next question.

We will now take the next question from the line of Judy Zhang from Citi.

[Foreign Language] I have 2 questions. The first question is regarding on the company's run rate so far in 3Q quarter-to-date. Specifically, could you share with us any early trends around trading volume, client assets and the new paying customers growth? The second question is, can you update us on your progress in the Hong Kong market expansion during second quarter and the third quarter quarter-to-date? We have noticed that since entering -- Tiger entering a Hong Kong market, the company's assets from local clients have been rapidly increasing. So the company has also mentioned that the quality of the local clients is excellent. Given this satisfied ROI, when does Tiger plans to enhance the customer acquisition and advertising efforts in Hong Kong? How is it going to impact on the company's CAC going forward?

[Interpreted] Okay. So overall, we are quite satisfied with our operating performance quarter-to-date. In terms of trading activity, the average monthly number of shares traded on our platform in the, say, past 2 months has been higher than the monthly average in the second quarter. Since we earn commissions based on the numbers of shares traded in the U.S. stock market, commission revenue so far in the third quarter has been on target. Regarding client assets, there has been a high single-digit increase compared to the end of the second quarter. A significant part of this increase has been driven by mark-to-market gains. The trend in the net asset inflow is also quite positive, especially with retail clients contributing a large portion of this growth. As for the new funded accounts, we remain committed to our second quarter customer acquisition strategy of prioritizing user quality and net asset inflows. We are glad to see a meaningful improvement in the contribution from the Hong Kong market, which now almost matches the contribution from Singapore. Since the quality of users in Hong Kong is the highest across all the markets we enter, we are confident in maintaining the user quality of the new credit accounts in the third quarter.

[Foreign Language] So in the second quarter and third quarter so far, we stepped up our investment in the Hong Kong market. We organized and participated in numerous offline events and exhibitions actively engaging with the local community. Our goal is to boost brand awareness and increase customer engagement. Combining off-line activities with innovative fintech solutions and incentives, we were able to reach a bigger pie of local investors. We have seen tangible results both in the user quality and client asset. For example, in the second quarter, the average net asset inflow per new Hong Kong funded users reached around USD 30,000, which contributed to a roughly 50% quarter-over-quarter increase in overall client assets in Hong Kong. So far in the third quarter, the number of new funded accounts in Hong Kong has now nearly matched the growth we have seen in Singapore. Our accelerated expansion in Hong Kong not only creates a healthier, more sustainable growth, but also deepen our understanding of the local market. Over the past 2 years, our dedicated efforts have started to pay off. Going forward, we will continue to speed up our efforts in Hong Kong, and you will see more tighter events to drive user growth and brand awareness. Regarding CAC, since we started ramping up our customer acquisition in Hong Kong in the second quarter, the average CAC is around 400 plus. It's relatively higher than other markets, but the payback period remains quite healthy, about 2 quarters under current market conditions. For third quarter and the rest of the year, we expect the average CAC in Hong Kong to fluctuate based on our marketing strategy. We anticipate it will stay around this level.

We will now take the next question from the line of Dennis Bai from UBS.

[Foreign Language] So big congratulations to the set of strong results, and I'm Dennis from UBS. I have 2 questions. The first is about, could you please give a breakdown of the newly added customers with deposits across different regional markets? And the second is we've noticed that the newly added customers with deposits in the second quarter declined quarter-over-quarter. What's the reason behind? And how do you view the growth looking forward?

[Interpreted] For the first question about the regional breakdown of new funded accounts. In the second quarter, about 50% of newly funded accounts came from Singapore and Southeast Asia region, approximately 30% were from Hong Kong and the Greater China area, 15% from Australia and New Zealand market and around 5% from the U.S. market. In the second quarter, we added nearly 40,000 new users. We believe this number fully meets our expectations, both in terms of annual targets and customer acquisition pace. From another perspective, although the number is a bit lower than the fourth quarter, the main reason includes the impact of tariff war in April, some investor sentiment fluctuates and most importantly, targeted adjustments we made to our customer acquisition channels. This included shutting down some low-quality, low ROI channels and posting certain online advertisements in Singapore to ensure the high-quality user base. Overall, these adjustments have been proved to be effective. We place a great emphasis on increasing client assets and maintaining a healthy net asset inflow mix. As mentioned earlier, the average net asset inflow of the newly acquired clients exceeded USD 20,000 and in Singapore and Hong Kong, it even reached about USD 30,000. More importantly, the nearly 40,000 new users in Q2 contributed more net asset inflow in the quarter than the over 60,000 new users in the first quarter. Additionally, our overall customer acquisition cost decreased by about 10% compared to the first quarter. So looking ahead, whether from an efficiency perspective or on a profitability standpoint, we plan to continue optimizing and dynamically adjust our customer acquisition strategies by focus on user quality and client assets. Thanks, Dennis.

Operator, is there any other questions?

There's no further questions. I would now like to turn the conference back to Aron Lee for closing remarks.

Okay. I'd like to thank everyone for joining our call today. I'm now closing the call on behalf of the management team here at Tiger. We do appreciate your participation in today's call. If you have any further questions, please reach out to our Investor Relations team. This concludes the call, and thank you very much for your time. Bye-bye.

This concludes today's conference call. Thank you for participating. You may now disconnect.

Thank you. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]