Futu Holdings Limited (NASDAQ: FUTU) Q2 2025 Earnings | 08/20/2025

Futu reported exceptionally strong financial and operational results for Q2 2025, driven by robust market activity, successful international expansion, and the launch of new products like cryptocurrency trading. The company achieved record highs in client assets, trading volume, and profitability.

Key Operational & Financial Highlights:

• Client Growth: Total funded accounts reached ~2.9 million, up 41% YoY and 8% QoQ. The company added 204,000 new funded accounts in the quarter (up 32% YoY). A major milestone was reached with over 50% of funded accounts now from international markets outside Futu Securities Hong Kong.

• Record Client Assets: Total client assets hit a record HK$974 billion, up 68% YoY and 17% QoQ. Net asset inflow in the first half of 2025 nearly doubled compared to the same period last year.

• Trading Volume: Total trading volume reached HK$3.59 trillion, up 121% YoY and 12% QoQ. U.S. stock trading volume was particularly strong, rising 20% QoQ to HK$2.7 trillion, driven by EV and crypto stocks.

• Strong Financials:

  • Revenue: HK$5.3 billion, up 70% YoY.

  • Net Income: HK$2.6 billion, up 113% YoY.

  • Profit Margins: Operating margin expanded to 63% (from 47.3% YoY) and net income margin to 48.4% (from 38.6% YoY), demonstrating significant operating leverage.

• Wealth Management: Assets in this segment grew to HK$163.2 billion, up 104% YoY and 17% QoQ. The company expanded its fixed income offerings and became the first online broker in Hong Kong to distribute a tokenized money market fund.

Strategic Initiatives & Market Expansion:

1. International Growth: Singapore and the U.S. are the largest international markets, followed by rapidly expanding Malaysia and Japan. The company is deepening localization with region-specific products (e.g., IPO financing in Malaysia) and major branding events (e.g., "MoveFest Japan" with 12,000 attendees).

2. Product Innovation:

   • Cryptocurrency Trading: Launched in most U.S. states in June, with over 30 trading pairs. Crypto asset value reached HK$4 billion by quarter-end, with strong momentum expected to continue.

   • Moomoo AI: The AI-powered toolset was rolled out to all international markets after a successful debut in Hong Kong, receiving high user engagement and satisfaction.

   • SMB & Wealth Tools: Launched new products like "Tap to Local" (merchant acquiring) and "Rapid Transfers" (fund movement between accounts/wallets) to enhance its one-stop platform.

3. Hong Kong IPO Leadership: The company solidified its top position in Hong Kong IPO distribution, acting as a joint bookrunner for major listings. It attracted a record 102,000 subscribers for the Haitong Weiyue IPO, ranking first among all brokers.

Outlook:

Management expressed strong confidence for Q3 and the rest of the year:

• Client Growth: The company is on track to meet its full-year target of 800,000 new funded accounts (having already achieved 460,000 in H1).

• Trading & Assets: Active trading behavior and positive market-to-market effects are expected to continue driving client asset growth in Q3. Trading volume could see further sequential increase.

• Cryptocurrency: Strong growth in crypto trading is expected to continue, with plans to add new features like crypto transfer in/out functionalities and explore licenses in new markets.

• U.S. Market: Growth in the U.S. is robust, with the partnership with the New York Mets enhancing brand recognition. Product iterations (like crypto and AI tools) are driving engagement.