Futu Holdings Q2 2026 Earnings: Net New Accounts +23.7%, Net Profit HK$3.6 Billion

Futu Holdings announced its second-quarter financial results on Thursday. The company's Q2 earnings call transcript follows.

This transcript is provided by APIs. For real-time access to the full agenda, please visit consult.

Watch the webcast

Summary

Futu Holdings reported a significant increase in net new accounts, up 23.7% year-over-year, with total accounts reaching 3.84 million.

Total client assets rose to HK$1.4 trillion, up 43.6% year-over-year, benefiting from higher market valuations and net asset inflows.

Second-quarter revenue was HK$7.2 billion, up 36% year-over-year, driven by significant increases in brokerage commissions and interest income.

Futu Securities launched virtual asset margin lending services in Hong Kong, marking a strategic expansion into the digital asset market.

The company maintained a strong presence in overseas markets, achieving significant customer acquisition in Malaysia and entering the Thai market for the first time.

Net profit for the quarter was HK$3.6 billion, up 42% year-over-year, with a net profit margin of 50.6%.

Management noted that customer churn due to regulatory changes has stabilized, and overseas markets continue to show growth potential.

The launch of US prediction markets was successful, making a positive contribution to customer acquisition and engagement.

Full Transcript

Host

Welcome to the Futu Holdings Q2 2026 earnings call. All participants are currently on listen-only mode. There will be a question-and-answer session after management's prepared remarks. Today's meeting is being recorded. If you have any objections, you may disconnect now. I will now hand the meeting over to Michelle Lee, Investor Relations Manager for today's meeting. Please begin.

Michelle Lee, Investor Relations

Thank you, host. Thank you all for joining us today to discuss the Q2 2026 earnings results. Joining me today are Mr. Li Yeqing, Arthur Chen, and Robin Hsu. A reminder that today's call may contain forward-looking statements, representing the company's views on future events, which are inherently uncertain and outside the company's control.

Forward-looking statements involve inherent risks and uncertainties. We remind you that many important factors could cause actual results to differ materially from those contained in any forward-looking statements. For more information on potential risks and uncertainties, please refer to the company's filings with the US Securities and Exchange Commission, including the annual report. I will now hand the call over to Leaf. Leaf will make comments in Chinese, and I will translate.

Thank you all for joining our earnings call today. In the second quarter, we added 252,000 new accounts, up 23.7% year-over-year and 12.2% quarter-over-quarter. Total accounts reached approximately 3.84 million, up 33.6% year-over-year and 7% quarter-over-quarter. Local customer acquisition in Hong Kong accelerated quarter-over-quarter, benefiting from a strong local IPO pipeline and robust US stock performance. In Singapore, registered users broke the 2 million mark, further solidifying our leading position among local retail investors. Average revenue per new customer in both markets improved quarter-over-quarter, supported by our continuous investor education initiatives across multiple asset classes, backed by our sustained investment in brand equity. In Malaysia, our targeted marketing campaigns centered on local IPOs and AI-driven rallies generated record customer acquisition, leading all markets in net new accounts for three consecutive quarters.

In the US, moomoo's prediction markets garnered significant attention, driving incremental new customer acquisition and helping to boost overall customer engagement on our platform. As of the end of the quarter, total client assets reached HK$1.4 trillion, up 43.6% year-over-year and 14.5% quarter-over-quarter. Growth was primarily attributed to market valuation increases in client stock holdings, followed by net asset inflows. The ending margin balance and securities lending balance grew 31% quarter-over-quarter to HK$95.1 billion, supported by active Hong Kong IPO markets and broader positive market sentiment encouraging clients to take on more leverage. Benefiting from favorable market conditions, total trading volume increased 78.8% year-over-year and 54.6% quarter-over-quarter to HK$6.42 trillion, a record high. US stock trading volume increased 67.2% quarter-over-quarter to HK$5.02 trillion, driven by client interest in AI-related stocks. Hong Kong stock trading volume increased 15.9% quarter-over-quarter to HK$1.17 trillion, mainly attributed to increased trading activity in semiconductors, Chinese internet, and newly listed companies.

In June, Futu Securities became the first broker in Hong Kong to launch virtual asset margin lending services under an upgraded Class 1 license approval. We are also exploring extending the unified purchasing power framework to virtual asset holdings to further improve capital efficiency in both traditional and digital asset markets. Wealth management client assets were HK$180.2 billion, up 10% year-over-year and 1% quarter-over-quarter.

We observed a shift in client preference from money market funds to equity funds this quarter, driven by strong stock market performance. In Hong Kong, we hosted the first offline fund roadshow for retail investors, themed around commercial spaces, which received high investor interest. The event attracted a full house of in-person attendees and hundreds of live stream participants, translating into meaningful follow-up subscriptions. We ended the quarter with 683 IPO distribution and IR clients, up 32% year-over-year.

The Hong Kong IPO market remained strong in the second quarter, with nearly 60% of new listings choosing to partner with Futu. We served as joint bookrunners for several high-profile listings, including Star Sports Medicine, Liteligence, and Metis TechBio. Next, I would like to invite our Chief Financial Officer, Arthur, to discuss our financial performance.

Arthur Chen, Chief Financial Officer

Thank you, Leaf, and Michelle. Please allow me to present the Q2 financial performance. Unless otherwise stated, all figures are in Hong Kong dollars. Total revenue was HK$7.2 billion, up 36% year-over-year, compared to HK$5.3 billion in Q2 2025. Brokerage commissions and fees revenue was HK$3.4 billion, up 30% year-over-year and 27% quarter-over-quarter. Total trading volume grew on both a year-over-year and quarter-over-quarter basis, while the blended commission rate declined this quarter due to stronger US stock and options trading activity at higher price points. Interest income was HK$3.1 billion, up 37% year-over-year and 18% quarter-over-quarter. Growth year-over-year and quarter-over-quarter was primarily driven by higher interest income from margin lending, bank deposits, and securities lending. Other revenue was HK$718 million, up 61% year-over-year and 27% quarter-over-quarter. Growth year-over-year and quarter-over-quarter was primarily driven by higher foreign exchange income and IPO financing service revenue.

Our total costs were HK$985 million, up 47% year-over-year. Brokerage commissions and fees expenses were HK$248 million, up 54% year-over-year and 50% quarter-over-quarter. Growth year-over-year and quarter-over-quarter was primarily driven by increased trading volume. Interest expenses were HK$513 million, up 36% year-over-year and 24% quarter-over-quarter. Growth year-over-year and quarter-over-quarter was primarily driven by higher interest expenses related to margin lending.

Business processing and service costs were HK$225 million, up 70% year-over-year and 32% quarter-over-quarter. Growth year-over-year and quarter-over-quarter was primarily driven by higher cloud service fees. Therefore, total gross profit was HK$6.2 billion, up 34% year-over-year, compared to HK$4.6 billion in Q2 2025. Gross margin was 86.3%, compared to 87.4% in the same quarter last year. Operating expenses were HK$1.8 billion, up 35% year-over-year and 11% quarter-over-quarter.

Specifically, R&D expenses were HK$501 million, up 13% year-over-year and 5% quarter-over-quarter. Growth year-over-year and quarter-over-quarter was primarily driven by increased investment in strategic initiatives such as AI and Web3. Sales and marketing expenses were HK$657 million, up 53% year-over-year and 18% quarter-over-quarter; growth year-over-year and quarter-over-quarter was primarily driven by increased net new accounts.

General and administrative expenses were HK$593 million, up 40% year-over-year and 10% quarter-over-quarter; growth year-over-year was primarily driven by increased management and professional fees. Therefore, operating profit was HK$4.5 billion, up 34% year-over-year and 26% quarter-over-quarter. An operating profit margin of 62% was roughly flat compared to Q2 2025. Net profit increased 42% year-over-year to HK$3.6 billion. The Q2 net profit margin expanded to 50.6%, compared to 48.4% in the same quarter last year.

The effective tax rate for the quarter was 16.1%. That concludes our prepared remarks. We would now like to open the call for questions. Host, please begin.

Host

Thank you. A reminder to ask a question, please press *-1-1 on the phone, wait for your name to be announced. To withdraw a question, press *-1-1 again. We ask that you limit yourself to one question and one follow-up. Please hold a moment while we organize the Q&A list.

The first question is from Emma Xu at Bank of America Securities. Your line is open. Please begin.

Emma Xu, Bank of America Securities Analyst

Thank you for the opportunity to ask a question. Congratulations on a strong Q2 performance. Since the new regulations were released on May 22, 2020, have you seen significant changes in managed client accounts in terms of account openings, AUM, and revenue contribution? Have you observed meaningful outflows in accounts or client assets? My second question is, given the regulatory backdrop where the group achieved resilient revenue and profit in Q2, can management share the latest developments in overseas markets and their contribution to the group?

Thank you.

Michelle Lee, Investor Relations

I will translate for Leaf. Futu places great importance on compliance and is committed to meeting all applicable regulatory requirements. After the new rules were released, we quickly implemented relevant compliance measures and maintained continuous communication with regulators. Regarding cumulative asset outflows since the new rules, outflows accounted for a low single-digit percentage of our total client assets, and we believe most of the impact has been absorbed in Q2.

Outflows came from our Mainland and Hong Kong client bases, with roughly equal contributions from both. Mainland outflows were primarily due to compliance adjustments under the new rules, while Hong Kong outflows were more concentrated in the early period after the announcement, reflecting some risk aversion as the market digested the news. Most Mainland client outflows occurred in June and July, and the pace of client churn began to moderate in August after we implemented restrictions on the app.

In the second quarter, our Hong Kong customer retention rate remained above 98%, and overseas market retention rates remained stable quarter-over-quarter. We continue to see stable growth in new overseas customers, and we will continue to direct resources and growth focus toward advancing our international business.

Robin Hsu, Senior Vice President

Regarding the quality of new accounts, average revenue per new account in overseas markets improved quarter-over-quarter. In particular, the US, Singapore, and Hong Kong all achieved double-digit growth. We believe this reflects a structural improvement in account quality in growth markets like the US, as well as continued acquisition of high-value customers in mature markets like Hong Kong and Singapore, jointly supporting overall revenue growth.

From a client asset perspective, new accounts in overseas markets grew double-digit quarter-over-quarter. Average client assets in every overseas market we operate increased quarter-over-quarter, indicating that we are growing not just in customer numbers, but also in their wallet share. Our recent securitization of the Thai license also provides a very important additional pivot for our future ASEAN footprint.

In terms of profitability, our overseas markets are at different stages of maturity. For example, Singapore achieved break-even several years ago, and both absolute levels and net profit margins are continuing to expand, benefiting from operating leverage. I am also pleased to share that Malaysia recently achieved break-even at the operating level as well. While our other overseas markets are still building customer and asset bases, we believe the foundation for long-term profitability in overseas markets is likely to be established as average client assets and customer retention rates rise.

Thank you.

Emma Xu, Bank of America Securities Analyst

Thank you. That was all very helpful.

Host

Thank you, please hold for the next question. The next question is from Chiao Huang at Morgan Stanley. Your line is open. Please begin.

Chiao Huang, Morgan Stanley Analyst

Thank you. Let me briefly translate. The first question is about Thailand. What are the strategic considerations for choosing this market, and when do we expect to officially launch operations here? Have we seen any synergies between the ASEAN markets we have already entered? The second question is about commission rates, which declined slightly quarter-over-quarter. What structural changes are we seeing behind this decline? Thank you.

Michelle Lee, Investor Relations

I will translate. Thailand is the third-largest economy in Southeast Asia, with local investors quite savvy digitally and growing demand for global asset allocation and digital investment tools. According to the Stock Exchange of Thailand, over 4.5 million investors have opened accounts online as of the first half of 2026. For moomoo, entering Thailand is indeed the natural next step in the Southeast Asian market after Singapore and Malaysia, allowing us to leverage the infrastructure and operations we have already established in the region.

Moomoo has obtained an A-class securities license from the Thai SEC. Combined with our licensed operations in other overseas markets, this reflects the regulator's continued recognition of our ability to operate compliantly across multiple jurisdictions, and our overall overseas expansion pace remains stable. Regarding the timing of the official launch, we still need to pass regulatory readiness checks to obtain final approval, so we do not have a specific timeline to share at this time.

We will continue to work closely with local regulators to ensure all pre-launch preparations are thoroughly in place.

Arthur Chen, Chief Financial Officer

First, we did not make any price book changes in any of our markets in the second quarter. Therefore, the quarter-over-quarter change in the blended commission rate was primarily driven by our clients' behavior. First, the contribution of derivatives in the second quarter was slightly lower quarter-over-quarter compared to the first quarter, but the contribution remained very healthy in absolute terms. Second, more clients traded US stocks in the second quarter, with very high concentration focused on some high-value AI-themed and tech blue-chip stocks, which led to a slight decline in our implied commission rate.

Thank you.

Host

Thank you, please hold for the next question. The next question is from Charles Zhao at UBS. Your line is open. Please begin.

Charles Zhao, UBS Analyst

First, congratulations to management on an excellent performance, and congratulations on the strong performance exceeding market consensus. I am Charles Ro from UBS, and I have two questions. First, can we get some information on the trajectory of customer acquisition costs in Q2, and what are the main drivers? How should we view customer acquisition costs in the coming quarters? My second question is also, can you provide a breakdown of net new accounts and ending accounts by market?

Thank you.

Michelle Lee, Investor Relations

The blended customer acquisition cost in the second quarter increased quarter-over-quarter to approximately HK$2,600, still within our full-year guidance range of HK$2,500 to HK$3,000. The increase in customer acquisition cost quarter-over-quarter in Q2 was primarily due to relatively lower net new accounts driven by regulatory developments, while we maintained a certain level of brand investment to support long-term growth and higher customer lifetime value across markets.

Additionally, customer acquisition costs showed an upward trend in July compared to Q2.

Robin Hsu, Senior Vice President

Malaysia led all markets in net new account growth for three consecutive quarters, followed by Hong Kong. These two markets combined accounted for over 50% of the net new accounts acquired in this quarter, with Singapore being the next largest source. As of the end of Q2, moomoo's share of total accounts has increased to nearly 60%, led by Singapore, Malaysia, and the US. Thank you.

Host

Thank you, please hold for the next question. The last question is from Yoyo Fan at CICC. Your line is open, please begin.

Yoyo Fan, CICC Analyst

Thank you for answering my question, and congratulations on your outstanding performance. I am Yoyo Fan from CICC, and I have two questions. First, can you share more information on Q3 trends, such as the run rate of new accounts, trading flows, and client assets under management? Second, since moomoo has launched prediction markets in the US, can you share more about the trends of this business, and how do you view the future monetization and growth opportunities of prediction markets?

Thank you.

Michelle Lee, Investor Relations

Regarding the run rate basis for Q3 to date, our key metrics have shown a mild downward trend amidst market volatility. New account openings have moderated relative to Q2. As for net asset inflows, net asset inflows have returned to normal levels in Hong Kong and overseas markets. As for trading volume, total trading volume declined slightly quarter-over-quarter. This mainly reflects the cooling of retail sentiment in Q3 to date relative to the previous quarter.

Robin Hsu, Senior Vice President

We obtained a futures commission merchant license from the US CFTC in May, and moomoo US officially launched prediction market trading services for US retail customers in early June. As Michelle mentioned in her opening remarks, the number of event contracts traded exceeded 200 million within a month of launch, reflecting very strong demand from US retail investors for prediction market products. Event contracts have proven effective in both acquiring new customers and driving engagement, showing clear cross-selling synergies with our core brokerage business.

For example, users trading event contracts are more active in securities trading, indicating that event contracts are not a substitute for securities trading, but a driver of it. The purpose of launching our US prediction markets has two aspects. The first is certainly to capture the near-term opportunities of prediction markets taking off locally. But more importantly, it allows us to build product design, operations, and risk management expertise, which will support our ability to bring prediction markets to other regions where we operate in the future.

Thank you.

Yoyo Fan, CICC Analyst

Thank you.

Host

Thank you. I would now like to hand the meeting back to Michelle Lee for closing remarks.

Michelle Lee, Investor Relations

That concludes our call today. On behalf of the management team at Futu Holdings, I would like to thank you all for your participation today. If you have any further questions, please feel free to contact me or any of our investor relations team members. Thank you, goodbye.

Host

That concludes today's conference call. Thank you for your participation, and you may now disconnect. Have a wonderful day, everyone.

Disclaimer: This transcript is for reference only. While we strive for accuracy, this automated transcript may contain errors or omissions. For official company statements and financial information, please refer to the company's filings with the US Securities and Exchange Commission and official press releases. Statements by corporate participants and analysts reflect their views as of the date of this call and are subject to change without notice.