Futu (NASDAQ:FUTU) Announces Quarterly Earnings Results, Misses Estimates By $2.12 EPS

Futu (NASDAQ:FUTU) issued its quarterly earnings results on Thursday. The company reported $0.77 EPS for the quarter, missing the consensus estimate of $2.89 by ($2.12), FiscalAI reports. Futu had a net margin of 41.87% and a return on equity of 27.28%. The company had revenue of $694.17 million for the quarter, compared to analyst estimates of $761.35 million.

Here are the key takeaways from Futu’s conference call:

• Futu added 225,000 net new funded accounts in Q1, bringing total funded accounts to 3.59 million, up 34% year over year. Management said Hong Kong, Malaysia, and Singapore remained important growth drivers, while overseas Moomoo accounts surpassed 2 million.
• Trading activity hit a record, with total volume reaching HKD 4.15 trillion, up 29% year over year. U.S. volume stayed strong at HKD 3 trillion, while Hong Kong volume rose 22% sequentially as investors bought into volatility.
• Revenue rose 25% year over year to HKD 5.9 billion, but net income fell sharply because the company booked an approximately RMB 1.85 billion administrative penalty reprieve as an adjusted subsequent event. Excluding that item, management said net income would have increased year over year.
• Management highlighted continued expansion into new products and markets, including U.S. prediction markets, where it expects to launch event-contract trading soon, and the PantherTrade crypto exchange in Hong Kong, which has begun full operations after VATP approval.
• Futu said wealth management assets reached HKD 178.4 billion, up 28% year over year, with more client allocation shifting toward equity funds and structured products. It also said it remains confident in long-term growth in mature markets like Hong Kong and Singapore, and reiterated that the recent regulatory update should not materially affect full-year guidance.

Futu Trading Down 0.8%

NASDAQ:FUTU opened at $104.07 on Friday. The stock has a market cap of $14.59 billion, a P/E ratio of 11.45, a PEG ratio of 0.78 and a beta of 0.52. The stock has a 50 day simple moving average of $141.30 and a 200 day simple moving average of $155.37. Futu has a 1-year low of $80.50 and a 1-year high of $202.53.

Futu Dividend Announcement

The company also recently declared a special dividend, which was paid on Wednesday, April 29th. Investors of record on Thursday, April 16th were issued a dividend of $2.60 per share. The ex-dividend date of this dividend was Thursday, April 16th. Futu’s dividend payout ratio (DPR) is presently 28.05%.

Analyst Ratings Changes

Several research analysts recently commented on the company. JPMorgan Chase & Co. reissued a “neutral” rating and set a $87.00 price target (down from $300.00) on shares of Futu in a research report on Friday, May 22nd. The Goldman Sachs Group cut Futu from a “buy” rating to a “neutral” rating and set a $102.13 price objective for the company. in a research report on Monday. Wall Street Zen cut Futu from a “hold” rating to a “sell” rating in a research report on Saturday. Zacks Research cut Futu from a “strong-buy” rating to a “hold” rating in a research report on Friday, May 8th. Finally, Jefferies Financial Group reaffirmed a “buy” rating and issued a $170.50 price objective on shares of Futu in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Futu has a consensus rating of “Moderate Buy” and a consensus price target of $162.80.

Trending Headlines about Futu

Here are the key news stories impacting Futu this week:

• Positive Sentiment: Futu said it repurchased about US$418 million of ADSs under its buyback program, signaling management confidence and providing some support to the stock. Futu Announces Cumulative Repurchases of Approximately US$418 Million Worth of ADSs Under Share Repurchase Program
• Positive Sentiment: The company’s first-quarter update highlighted revenue growth of about 25% year over year and continued client expansion, which points to solid underlying business momentum despite the share-price weakness. Moomoo’s Parent Company Futu Releases Q1 2026 Results: Revenues up 25% YoY to US$746.9 million
• Neutral Sentiment: Management also guided to 800,000 net new funding accounts in 2026 and said Malaysia could reach breakeven in 6 to 12 months, which supports a longer-term growth story but does not offset near-term concerns. Futu targets 800,000 net new funding accounts in 2026 while expecting Malaysia to reach breakeven in 6 to 12 months
• Neutral Sentiment: Futu’s earnings call transcript and related coverage reflect continued investor focus on the quarterly results and management commentary. Futu Holdings Limited (FUTU) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Futu missed Q1 expectations, reporting EPS of $0.77 versus $2.89 expected and revenue of $694.17 million versus $761.35 million estimated, a clear earnings disappointment that can weigh on the stock. Futu earnings report
• Negative Sentiment: Fresh reports that China regulators may impose a RMB 1.85 billion penalty, along with disclosures about major mainland China revenue exposure, have intensified fears about regulatory and geopolitical risk. Why Futu Holdings (FUTU) Is Down 11.6% After China Regulator Proposes RMB 1.85 Billion Penalty
• Negative Sentiment: Multiple law firms have launched securities-fraud or class-action investigations into Futu, increasing legal overhang and adding to investor uncertainty. ROSEN, A LEADING LAW FIRM, Encourages Futu Holdings Limited Investors to Inquire About Securities Class Action Investigation – FUTU

Institutional Trading of Futu

Hedge funds have recently added to or reduced their stakes in the company. Geneos Wealth Management Inc. bought a new position in Futu during the 1st quarter worth $27,000. Quarry LP bought a new position in Futu during the 3rd quarter worth $51,000. Parkside Financial Bank & Trust increased its stake in Futu by 30,000.0% during the 4th quarter. Parkside Financial Bank & Trust now owns 301 shares of the company’s stock worth $49,000 after acquiring an additional 300 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Futu by 53.5% during the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 419 shares of the company’s stock worth $73,000 after acquiring an additional 146 shares during the period. Finally, CIBC Private Wealth Group LLC increased its stake in shares of Futu by 710.8% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 527 shares of the company’s stock valued at $92,000 after purchasing an additional 462 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.