Futu (NASDAQ:FUTU – Get Free Report) issued its earnings results on Thursday. The company reported $3.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.98 by $0.35, FiscalAI reports. The firm had revenue of $852.66 million for the quarter, compared to analyst estimates of $786.07 million. Futu had a return on equity of 26.48% and a net margin of 41.87%.
Here are the key takeaways from Futu’s conference call:
- Strong Q2 growth: Revenue rose 36% year over year to HKD 7.2 billion, while net income increased 42% to HKD 3.6 billion. Record trading volume, higher margin financing, and increased IPO-related income supported the results.
- Client growth remained robust, with 252,000 net new funded accounts added and total funded accounts reaching 3.84 million. Client assets rose 43.6% year over year to HKD 1.4 trillion, while Malaysia led account additions for the third consecutive quarter and Moomoo represented nearly 60% of funded accounts.
- Overseas expansion is gaining traction: Singapore continued to expand profitability, Malaysia reached operating breakeven, and Thailand offers a new Southeast Asian growth opportunity following receipt of a securities license, although launch timing remains subject to regulatory approval.
- New regulatory requirements led to cumulative client-asset outflows equivalent to a mid-single-digit percentage of total assets, with most Mainland-related outflows occurring in June and July. The impact also reduced net new funded accounts and pushed customer acquisition costs to approximately HKD 2,600, while July CAC increased further.
- Management said Q3 quarter-to-date trends are modestly softer, with lower funded-account additions and trading volume as market sentiment cooled, though Hong Kong and overseas net inflows have normalized. In the U.S., Prediction Markets exceeded 200 million contracts traded in the first month and are being positioned as a client-acquisition and cross-selling opportunity rather than a substitute for brokerage trading.
Futu Stock Performance
Shares of FUTU opened at $109.42 on Thursday. Futu has a 52-week low of $80.50 and a 52-week high of $202.53. The stock’s 50-day simple moving average is $100.75 and its 200 day simple moving average is $126.58. The stock has a market capitalization of $15.34 billion, a price-to-earnings ratio of 12.04, a price-to-earnings-growth ratio of 1.26 and a beta of 0.43.
Wall Street Analyst Weigh In
Read Our Latest Research Report on FUTU
Institutional Inflows and Outflows
Several large investors have recently bought and sold shares of the company. Arrowstreet Capital Limited Partnership boosted its stake in Futu by 7.5% during the third quarter. Arrowstreet Capital Limited Partnership now owns 1,660,168 shares of the company’s stock valued at $288,720,000 after buying an additional 116,143 shares during the period. State Street Corp increased its stake in Futu by 18.4% in the 2nd quarter. State Street Corp now owns 1,212,481 shares of the company’s stock worth $149,851,000 after acquiring an additional 188,840 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Futu by 805.2% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,126,633 shares of the company’s stock worth $195,933,000 after acquiring an additional 1,002,171 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of Futu by 34.4% in the 2nd quarter. Bank of America Corp DE now owns 1,006,656 shares of the company’s stock valued at $124,413,000 after acquiring an additional 257,389 shares in the last quarter. Finally, Renaissance Technologies LLC boosted its position in shares of Futu by 5.9% during the 4th quarter. Renaissance Technologies LLC now owns 757,226 shares of the company’s stock valued at $124,344,000 after acquiring an additional 42,200 shares during the last quarter.
Futu Company Profile
Futu Holdings Ltd. is a technology-driven brokerage and wealth management company that provides online brokerage services, market data, and investment tools to retail and institutional clients. Headquartered in Hong Kong and listed on the NASDAQ under the ticker FUTU, the company operates digital trading platforms that combine order execution, real-time quotes, news, and research tools to serve active investors and wealth management customers.
The firm’s product suite includes brokerage access to equities, exchange-traded funds and derivatives across major markets, margin financing, initial public offering (IPO) subscription services, wealth management products and discretionary investment solutions.
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