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Futu Holdings
(NASDAQ:FUTU)
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Rating:77Outperform
Price Target:
$124.00
▲(24.80% Upside)
Action:Reiterated
Date:08/20/26
The score is driven primarily by strong financial performance (rapid recent growth with exceptional margins and improving ROE) and supportive valuation (moderate P/E with a ~2.4% dividend yield). Offsetting factors are a more mixed technical backdrop (below longer-term moving averages) and earnings-call risks pointing to near-term moderation and higher cost/CAC pressures alongside regulatory-related outflows.
Positive Factors
Strong revenue and profit growth
Rapid growth in revenue, net income, funded accounts and client assets indicates strong platform adoption. Sustained scale can support operating leverage, while margins near 50% demonstrate substantial earnings power.
Negative Factors
Material regulatory and compliance exposure
The proposed penalty highlights material compliance risk and could impose financial, operational and reputational costs. Required remediation or restrictions may also limit mainland-linked activity and increase regulatory oversight of future expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue and profit growth
Rapid growth in revenue, net income, funded accounts and client assets indicates strong platform adoption. Sustained scale can support operating leverage, while margins near 50% demonstrate substantial earnings power.
Read all positive factors
Futu Holdings (FUTU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.22B
Dividend Yield2.38%
Average Volume (3M)1.57M
Price to Earnings (P/E)11.9
Beta (1Y)1.40
Revenue Growth52.73%
EPS Growth52.01%
CountryUS
Employees3,540
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)72.08
Shares Outstanding95,750,480
10 Day Avg. Volume1,414,216
30 Day Avg. Volume1,568,967
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)4.45
Price to Sales (P/S)7.81
P/FCF Ratio4.37
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$153.93Price Target Upside54.93% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)71.22
Revenue Forecast (FY)$23.25B
Futu Holdings Business Overview & Revenue Model
Company Description
Futu Holdings Limited is a global provider of digital brokerage services for securities and the distribution of wealth management products, with operations based in Hong Kong. The company's primary offerings include a full spectrum of online finan...
How the Company Makes Money
Futu primarily generates revenue from a combination of (1) brokerage-related fees and commissions, (2) interest income from financing activities, and (3) wealth management and other service fees. Brokerage revenue comes from commissions and servic...
Futu Holdings Earnings Call Summary
Earnings Call Date:Aug 20, 2026
(Q2-2026)
| Next Earnings Date:Nov 24, 2026
Earnings Call Sentiment Positive
The call presents strong top-line and operating performance—record trading volumes, robust account and asset growth, solid revenue and net income expansion, and strategic product/regulatory milestones (virtual asset financing, U.S. prediction markets, ASEAN licensing). Offsetting risks include rising costs (notably S&M and processing), higher interest and commission expenses, a modest compression in commission rates/gross margin, a Q2–Q3 moderation in new account additions and trading activity, and mid-single-digit client asset outflows tied to recent Mainland regulations. Management highlights overseas expansion momentum and improving profitability in key markets (Singapore breakeven; Malaysia recently breakeven), while noting CAC pressures and near-term sensitivity to market volatility.Positive Updates
Robust Account Growth
252,000 net new funded accounts in Q2 (+23.7% YoY, +12.2% QoQ); total funded accounts ~3.84 million (+33.6% YoY, +7.0% QoQ). Malaysia led net new funded accounts for the third consecutive quarter; Singapore registered users surpassed 2 million.
Negative Updates
Rising Operating and Service Costs
Total costs were HKD 985 million (+47% YoY). Operating expenses totaled HKD 1.8 billion (+35% YoY, +11% QoQ), including R&D HKD 501 million (+13% YoY), selling & marketing HKD 657 million (+53% YoY), and G&A HKD 593 million (+40% YoY). Processing & servicing costs jumped 70% YoY to HKD 225 million.
Read all updates
Q2-2026 Updates
Positive
Negative
Robust Account Growth
252,000 net new funded accounts in Q2 (+23.7% YoY, +12.2% QoQ); total funded accounts ~3.84 million (+33.6% YoY, +7.0% QoQ). Malaysia led net new funded accounts for the third consecutive quarter; Singapore registered users surpassed 2 million.
Read all positive updates
Company Guidance
Management provided limited formal forward guidance but reiterated a full‑year blended CAC range of HKD 2,500–3,000 (Q2 blended CAC ≈ HKD 2,600 and higher in July) and said Q3‑to‑date trends are modestly softer with net funded‑account additions moderating versus Q2 (Q2 net adds 252,000; period‑end funded accounts 3.84 million), trading volume down modestly sequentially from Q2’s record HKD 6.42 trillion (U.S. HKD 5.02 trillion; Hong Kong HKD 1.17 trillion), and net asset inflows back to normalized levels after cumulative outflows of about mid‑single‑digit percent of total client assets (Q2 client assets HKD 1.4 trillion, +43.6% YoY, +14.5% QoQ); they noted Hong Kong retention >98%, moomoo now ~60% share of funded accounts, merchant financing/securities lending at HKD 95.1 billion, wealth management AUM HKD 180.2 billion, 683 IPO distribution/IR clients, and strong product signals (prediction‑market event contracts >$200 million in the first month); Thailand license secured but launch timing awaits regulator readiness, and the firm is exploring extending unified buying‑power to virtual assets.Futu Holdings Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.01B | 22.81B | 13.59B | 10.01B | 7.61B | 7.12B |
| Gross Profit | 21.07B | 19.87B | 11.14B | 8.47B | 6.62B | 5.91B |
| EBITDA | 14.81B | 13.86B | 6.80B | 5.18B | 3.72B | 3.30B |
| Net Income | 10.05B | 11.32B | 5.44B | 4.28B | 2.93B | 2.81B |
Balance Sheet | ||||||
| Total Assets | 246.32B | 228.42B | 158.76B | 97.14B | 94.50B | 101.54B |
| Cash, Cash Equivalents and Short-Term Investments | 23.65B | 130.54B | 14.42B | 8.19B | 5.74B | 5.83B |
| Total Debt | 22.51B | 17.68B | 8.55B | 5.89B | 2.69B | 21.91B |
| Total Liabilities | 204.83B | 188.10B | 130.75B | 72.56B | 73.64B | 80.55B |
| Stockholders Equity | 41.19B | 40.00B | 28.01B | 24.57B | 20.86B | 20.99B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 40.73B | 30.83B | -6.42B | 3.38B | 5.94B |
| Operating Cash Flow | 0.00 | 40.79B | 31.00B | -6.34B | 3.47B | 6.01B |
| Investing Cash Flow | 0.00 | -1.78B | 103.93M | -2.44B | 93.86M | -963.57M |
| Financing Cash Flow | 0.00 | 4.30B | 70.85M | 2.31B | -7.01B | 10.55B |
Futu Holdings Risk Analysis
Futu Holdings disclosed 98 risk factors in its most recent earnings report. Futu Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Futu Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $34.49B | 15.22 | 18.32% | 1.25% | 7.75% | 12.07% | |
78 Outperform | $24.68B | 24.60 | 13.78% | 0.52% | 14.04% | 60.95% | |
77 Outperform | $15.22B | 11.90 | 26.62% | 2.62% | 52.73% | 52.01% | |
75 Outperform | $193.13B | 20.09 | 20.40% | 1.16% | 10.13% | 48.07% | |
68 Neutral | $898.11M | 7.45 | 13.81% | ― | 48.35% | 37.83% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $29.03B | 28.53 | 18.45% | 0.37% | 38.82% | -14.48% |
* Financial Sector Average
FUTU
Futu Holdings
109.42
-66.47
-37.79%
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TW
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103.30
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-20.42%
Futu Holdings Corporate Events
Futu Posts Record Q2 2026 Trading and Profit as Global Expansion Accelerates
Aug 20, 2026
On August 20, 2026, Futu reported unaudited results for the quarter ended June 30, 2026, highlighting rapid user and asset growth alongside record trading activity. Funded accounts rose 33.6% year-over-year to 3.84 million, total users reached 31....
Futu’s Q1 2026 Profit Hit by China Regulatory Penalty Despite Strong Growth
May 28, 2026
Futu reported strong operating metrics for the quarter ended March 31, 2026, with funded accounts up 34.3% year-over-year to 3.59 million, total users reaching 30.2 million and client assets climbing 47.2% to HK$1.22 trillion, underpinned by recor...
Futu Faces Potential RMB1.85 Billion CSRC Penalty Over Mainland China Operations
May 22, 2026
On May 22, 2026, Futu Holdings said it has received a Notice of Investigation and an Administrative Penalty Pre-Notification Letter from the China Securities Regulatory Commission related to its mainland China operations. Regulators allege that ce...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.