Futu Holdings ((FUTU)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Futu Holdings’ latest earnings call struck an upbeat tone, as management highlighted powerful growth in accounts, trading volume, revenue and profitability despite choppy Hong Kong markets. Executives acknowledged near-term headwinds from weaker local trading and regulatory uncertainty on crypto, but stressed that strong operations and expanding margins are setting up the platform for durable growth.
Strong Client Acquisition in 2025
Futu added more than 950,000 net new funded accounts in 2025, beating its own full-year target by 19% and taking the total to about 3.4 million, up 40% from a year earlier. Management set a fresh goal of 800,000 net new funded accounts for 2026, signaling confidence even as it normalizes expectations after a blockbuster year.
Record Trading Volume
Client activity remained robust, with total trading volume hitting a record HKD 3.98 trillion in the fourth quarter, up 38% year over year and 2% sequentially. U.S. stock trading was a major driver, with turnover reaching HKD 3.0 trillion in Q4, a strong 17% increase from the prior quarter and underscoring growing global engagement.
Material Revenue and Profit Growth
The surge in trading and client activity translated into powerful top-line gains, as Q4 revenue climbed 45% year over year to HKD 6.4 billion and full-year revenue reached HKD 22.8 billion, up 68%. Gross profit rose 56% to HKD 5.7 billion in the quarter, and gross margin widened sharply to 88.7% from 82.5%, reflecting improved efficiency and scale.
Significant Margin and Net Income Expansion
Operating leverage was on full display, with income from operations jumping 87% year over year to HKD 4.1 billion and the operating margin rising to 64.4% from 50.0%. Net income advanced 80% to HKD 3.4 billion, as the net margin expanded to 52.3% from 42.2%, signaling that Futu is converting its growth into substantial profitability.
Client Assets and Leverage Growth
Total client assets ended the quarter at HKD 1.23 trillion, up 66% year over year but essentially flat versus the previous quarter as market swings offset inflows. Margin financing and securities lending balances grew 7% sequentially to HKD 67.7 billion, and daily average margin balances saw a double-digit quarterly increase, helped by strong IPO-related borrowing demand.
Geographic Expansion and Market Leadership
Growth was broad-based across regions, led by Hong Kong and Malaysia, while newer markets also gained traction. In Japan, cumulative downloads passed 2 million, and moomoo was the most downloaded trading app in Australia in 2025, with the moomoo brand now accounting for about 55% of group funded accounts, underscoring Futu’s rising overseas presence.
Wealth Management and IPO Franchise Strength
Futu’s wealth and capital-markets businesses continued to deepen client relationships, with managed assets rising 62% year over year to HKD 179.6 billion. The platform handled 600 IPO distributions, up 24%, provided investment banking services to over half of newly listed companies on the Hong Kong Board, and captured 49% of total public-offering subscription amounts, reinforcing its IPO franchise.
Product & Tech Investments — AI and Crypto
The company continued to invest heavily in technology, lifting R&D expense to HKD 507 million in Q4, up 27% year over year, to support new AI-powered features such as automated market reports, earnings and news summaries, an AI chatbot and natural-language strategy tools. Crypto offerings in Singapore and the U.S. also expanded, with client adoption reaching high single-digit to low-teen penetration, hinting at an emerging growth pillar.
Operational Improvements at Airstar Bank
Airstar Bank saw tangible operational upgrades, with streamlined account opening, the launch of mutual funds and insurance within the app, and a new desktop version improving usability. The bank also bolstered its anti–money laundering systems and AI-based fraud detection, positioning it to scale fee-based wealth-management income over time and deepen ecosystem stickiness.
Sequential Deceleration in New Funded Accounts
Despite the strong full-year tally, growth in new funded accounts cooled in the fourth quarter to about 230,000, an 8% decline from Q3, though still 9% higher than a year earlier. Management linked the slowdown mainly to Hong Kong, where a sharp market downturn dampened investor enthusiasm and temporarily weighed on client acquisition.
Market-to-Market Losses Offset Net Inflows
Quarterly net inflows into client accounts remained strong, but mark-to-market losses on Hong Kong stock holdings largely erased the benefit at the asset level. As a result, total client assets stayed flat quarter over quarter at HKD 1.23 trillion, highlighting how market volatility can mask underlying growth in new money.
Hong Kong Trading Volume Weakness
The firm’s record overall volume masked a steep pullback in Hong Kong stock trading, which dropped 31% quarter over quarter to HKD 821 billion in Q4. Management cited weaker sentiment toward China technology names and broader market softness, reinforcing the growing importance of U.S. and other overseas markets in Futu’s mix.
Regulatory and Execution Uncertainty for Crypto in Hong Kong
Futu is preparing to broaden its crypto footprint in Hong Kong but remains constrained by licensing timelines, as it waits for approvals needed to offer margin and institutional crypto services. Executives emphasized that the pace of expansion in this segment hinges on regulators, introducing an element of execution risk even as client interest remains solid.
No Share Buybacks Executed Yet
The company has an authorization to repurchase up to USD 800 million of its shares through late 2027, but it did not execute any buybacks in the fourth quarter. Management said it will stay opportunistic and monitor market conditions before deploying the program, leaving investors watching for potential capital-return catalysts.
Customer Acquisition Cost and Market Volatility Risks
Looking ahead, Futu flagged a wide planning range for 2026 customer acquisition costs of roughly HKD 2,500 to 3,000 per new funded account, reflecting uncertain marketing efficiency. Management also acknowledged that geopolitical tensions and market volatility could affect both acquisition costs and the ability to reach the 800,000-account target, underscoring external risks around growth.
Forward-Looking Guidance and Outlook
For 2026, Futu aims to add 800,000 net new funded accounts, supported by entry into another Asian market, after outperforming its 2025 guidance. Near term, executives expect first-quarter net new accounts and trading volume to be broadly flat versus Q4, with record-high net inflows, a modest uptick in total client assets despite negative marks, stable commission rates and further growth in margin and securities lending balances, while targeting CAC around HKD 2,500–3,000 for the full year.
Futu’s earnings call painted the picture of a high-growth online broker leaning into technology and international expansion while managing through Hong Kong market turbulence. Strong revenue and profit gains, growing wealth and IPO businesses, and disciplined cost control are offsetting cyclical and regulatory headwinds, leaving investors with a story of robust fundamentals and measured, though not risk-free, growth prospects.