Futu (NASDAQ:FUTU) outlined strong client growth and record trading activity in its fourth quarter and full-year 2025 earnings call, while management also discussed early 2026 business trends, product expansion in crypto and wealth management, and continued investment in AI-enabled features and risk controls.
Client growth, assets, and 2026 account guidance
Chairman and CEO Leaf Li said the company added more than 950,000 net new funded accounts in 2025, exceeding full-year guidance by 19%. Total funded accounts reached about 3.4 million, up 40% year-over-year. Management reiterated confidence in acquiring 800,000 net new funded accounts in 2026, citing “strong bottom-up growth opportunities” across established markets and newer ones.
In the fourth quarter, Futu added roughly 230,000 net new funded accounts, down 8% sequentially but up 9% year-over-year. Management attributed the sequential moderation in Hong Kong to a sharp local market downturn, while Japan and Malaysia posted double-digit sequential growth supported by client interest in U.S. stock trading.
Trading activity hit a record; U.S. mix continued to diversify
Management said total trading volume rose to a record HKD 3.98 trillion in the fourth quarter, up 38% year-over-year and 2% quarter-over-quarter. U.S. stock trading turnover increased 17% sequentially to HKD 3.0 trillion, which management linked to clients diversifying beyond large technology stocks into a wider range of sectors and across the AI value chain.
Hong Kong stock trading volume fell 31% quarter-over-quarter to HKD 821 billion as investor appetite for China technology stocks weakened amid a second-half market correction. Management said this was partially offset by increased trading interest in gold and other precious-metals-related names.
On U.S. trading composition, management said Chinese ADRs accounted for less than 10% of U.S. equity trading volume in the fourth quarter, down from roughly around 10% in the third quarter, and described the contribution from Chinese ADRs as gradually decreasing over recent quarters.
Net inflows and margin balances; Q1 2026 commentary
Futu said net asset inflow remained strong in the fourth quarter, but mark-to-market losses on clients’ Hong Kong stock holdings weighed on overall client assets. Total client assets were HKD 1.23 trillion at quarter-end, up 66% year-over-year and flat sequentially.
Management noted that both Hong Kong and Singapore saw rising net asset inflow contributions from high-net-worth clients, and in the U.S., average client assets recorded the fastest sequential increase among regions.
Margin financing and securities lending balance increased 7% sequentially to HKD 67.7 billion at quarter-end, which management attributed to heightened U.S. stock margin trading activity. The company also said popular Hong Kong IPOs during the quarter contributed to increased leverage usage, driving a double-digit sequential rise in daily average margin balance.
Looking to the first quarter of 2026 year-to-date, management said it expected net new funded accounts and trading volume to be “flattish” quarter-over-quarter. It also said it was seeing strong “bottom fishing” activity and expected a double-digit sequential increase in net asset inflows, which management said could be the highest quarterly net asset inflow on record. At the same time, it warned that negative mark-to-market impacts were significant quarter-to-date, and expected total client assets to increase modestly by quarter-end. Management added that the blended commission rate trend was flattish quarter-over-quarter so far.
Wealth management, crypto product buildout, and AirStar Bank updates
Wealth management client assets reached HKD 179.6 billion, up 62% year-over-year and 2% sequentially. Management said it expanded product offerings to meet growing demand for diversification, including more high-dividend funds in Hong Kong and a lower minimum investment threshold for structured products. In Singapore, the company introduced additional Singapore equity funds and short-duration bond funds. In Malaysia, it launched Shariah-compliant gold tracker funds that it said were met with strong demand.
On crypto, management said crypto trading volume was approximately HKD 20 billion in the fourth quarter despite market headwinds, and said crypto penetration among trading clients increased across Hong Kong, Singapore, and the U.S. During the quarter, the company added more than 10 coins in both Singapore and the U.S. and expanded related market data and information services.
In Hong Kong, management said it was still in the second stage of approval for a virtual asset trading platform (VATP) license with the SFC, and said it was confident it could obtain the license in the near future. After licensing, management said it hopes to provide services including crypto trading (including margin-related functionality using stock as collateral), staking, and tailored offerings for high-net-worth clients, as well as one-stop solutions for institutional clients.
Management also discussed product and infrastructure work at AirStar Bank. During the quarter, it streamlined account opening, launched mutual funds and insurance products in the banking app, and introduced a desktop version. Internally, it said it developed an anti-money laundering system and AI-powered fraud detection infrastructure. Over the longer run, management said it expects AirStar Bank’s revenue stream to be supported by wealth-management-related fee income supplemented by some balance sheet expansion, while near-term focus remains on user experience upgrades and infrastructure and risk-control enhancements.
Financial results: revenue +45% in Q4; margins expanded
CFO Arthur Chen reported fourth quarter total revenues of HKD 6.4 billion, up 45% from HKD 4.4 billion a year earlier. Full-year revenue rose to HKD 22.8 billion, up 68% year-over-year.
- Brokerage commission and handling charge income: HKD 2.8 billion, up 35% year-over-year and down 5% sequentially. Management said total volume rose but the blended commission rate moderated as clients traded more higher-priced U.S. stocks and options.
- Interest income: HKD 3.0 billion, up 50% year-over-year and flat sequentially, driven year-over-year by securities borrowing and lending, banking deposits, and margin financing.
- Other income: HKD 630 million, up 79% year-over-year and 42% sequentially, mainly driven by fund distribution and IPO subscription-related service charges, as well as higher enterprise public relationship service charges sequentially.
Total cost declined 6% year-over-year to HKD 729 million. Gross profit rose 56% year-over-year to HKD 5.7 billion and gross margin expanded to 88.7% from 82.5% a year earlier.
Operating expenses were HKD 1.6 billion, up 9% year-over-year and down 8% sequentially. R&D spending was HKD 507 million, up 27% year-over-year, which management said was driven by higher headcount to support crypto and AI initiatives. Selling and marketing expense was HKD 507 million, up 9% year-over-year, while G&A expense was HKD 549 million, down 5% year-over-year.
Income from operations increased 87% year-over-year to HKD 4.1 billion, with operating margin rising to 64.4% from 50% a year ago. Net income rose 80% year-over-year to HKD 3.4 billion, and net income margin expanded to 52.3% from 42.2%. The effective tax rate was 16.3%.
In Q&A, management also said it had not conducted any repurchases under its previously announced share buyback program of up to $800 million through the end of 2027, adding that it would consider market conditions and opportunities when deciding on execution.
About Futu (NASDAQ:FUTU)
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.
