Key Takeaways:
- Revenue rose 35.6% to HK$7.20 billion, beating consensus by US$723 million
- Net income climbed 41.6% to HK$3.64 billion on record HK$6.42 trillion trading volume
- Funded accounts grew 33.6% to 3.84 million as Malaysia led new additions
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Futu revenue jumps 35.6% as trading volume hits record HK$6.42 trillion
Futu reported Q2 revenue of HK$7.20 billion, up 35.6% year-over-year, as record trading volume and client asset growth drove a 41.6% jump in net income.
"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," Leaf Hua Li, Futu's Chairman and Chief Executive Officer, said.
Revenue of HK$7.20 billion (US$918.2 million) topped the US$6.48 billion consensus by about US$723 million. Brokerage commission income rose 30.3% to HK$3.36 billion, while interest income climbed 36.5% to HK$3.12 billion. Net income reached HK$3.64 billion, with basic net income per ADS of HK$26.32 versus HK$18.48 a year earlier.
Shares rose 0.99% to $110.50 after the release. The company repurchased about 3.8 million ADSs for US$418 million under its buyback program, and analysts at Barclays and J.P. Morgan carry price targets of $200 and $100, respectively.
Total trading volume reached a record HK$6.42 trillion, up 78.8% year-over-year, with U.S. stock trading at HK$5.02 trillion and Hong Kong stocks at HK$1.17 trillion. Total client assets rose 43.6% to HK$1.40 trillion, while daily average client assets climbed 55.6% to HK$1.39 trillion. Margin financing and securities lending balance jumped 85.1% to HK$95.1 billion.
Gross margin slipped to 86.3% from 87.4%, and operating margin eased to 62.0% from 63.0%. Total costs rose 46.9% to HK$985.4 million, with processing and servicing costs up 69.6% on higher cloud fees tied to AI capabilities. Selling and marketing expenses increased 53.1% to HK$657.1 million as the company added funded accounts.
Futu expanded its global footprint during the quarter. Moomoo launched Prediction Markets in the U.S., Futu Securities received SFC approval for a virtual asset financing service through PantherTrade, and the company obtained a Type A license from Thailand's Securities and Exchange Commission in July. Wealth management client assets reached HK$180.2 billion, up 10.4% year-over-year.
The record trading volume and 33.6% funded-account growth signal sustained retail brokerage momentum across U.S., Hong Kong and Southeast Asian markets. Investors will watch the earnings call on Aug. 20 for updated guidance on margin trends and international expansion.
This article is for informational purposes only and does not constitute investment advice.
