Q2 FY2026
Filed Aug 20, 2026Futu Announces Second Quarter 2026 Unaudited Financial Results
Total revenues increased 35.6% year-over-year, net income increased 41.6%, and total trading volume increased 78.8%. Funded accounts, client assets, margin financing and securities lending balance, and all three revenue streams increased year-over-year, although gross margin and operating margin declined from the year-ago quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | HK$7,200.2 million (US$918.2 million) | – | 35.6% |
| Brokerage commission and handling charge incomeGAAP | HK$3,360.6 million (US$428.5 million) | – | 30.3% |
| Interest incomeGAAP | HK$3,123.8 million (US$398.3 million) | – | 36.5% |
| Other incomeGAAP | HK$715.8 million (US$91.3 million) | – | 61.2% |
| Total costsGAAP | HK$985.4 million (US$125.7 million) | – | 46.9% |
| Brokerage commission and handling charge expensesGAAP | HK$247.5 million (US$31.6 million) | – | 54.1% |
| Interest expensesGAAP | HK$512.9 million (US$65.4 million) | – | 35.8% |
| Processing and servicing costsGAAP | HK$225.0 million (US$28.7 million) | – | 69.6% |
| Total gross profitGAAP | HK$6,214.8 million (US$792.5 million) | – | 33.9% |
| Gross marginGAAP | 86.3% | – | – |
| Total operating expensesGAAP | HK$1,751.3 million (US$223.3 million) | – | 35.1% |
| Research and development expensesGAAP | HK$501.0 million (US$63.9 million) | – | 13.4% |
| Selling and marketing expensesGAAP | HK$657.1 million (US$83.8 million) | – | 53.1% |
| General and administrative expensesGAAP | HK$593.1 million (US$75.6 million) | – | 39.6% |
| Income from operationsGAAP | HK$4,463.5 million (US$569.2 million) | – | 33.5% |
| Operating marginGAAP | 62.0% | – | – |
| Net incomeGAAP | HK$3,641.9 million (US$464.4 million) | – | 41.6% |
| Net income marginGAAP | 50.6% | – | – |
| Adjusted net incomenon-GAAP | HK$3,725.1 million (US$475.0 million) | – | 40.1% |
| Basic net income per ADSGAAP | HK$26.32 (US$3.36) | – | – |
| Diluted net income per ADSGAAP | HK$26.08 (US$3.33) | – | – |
| Total number of funded accountsother | 3,842,667 | – | 33.6% |
| Total number of brokerage accountsother | 6,639,583 | – | 26.6% |
| Total number of usersother | 31.3 million | – | 15.2% |
| Total client assetsother | HK$1.40 trillion | 14.5% | 43.6% |
| Daily average client assetsother | HK$1.39 trillion | – | 55.6% |
| Total trading volumeother | HK$6.42 trillion | 54.6% | 78.8% |
| Margin financing and securities lending balanceother | HK$95.1 billion | 30.5% | 85.1% |
| Total client assets in wealth managementother | HK$180.2 billion | 1.0% | 10.4% |
| Cumulative IPO distribution and IR clientsother | 683 | – | 32.1% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Brokerage commission and handling charge incomeHigher trading volume, partially offset by a decline in blended commission rate. | HK$3,360.6 million (US$428.5 million) | – | 30.3% |
| Interest incomeHigher interest income from margin financing and bank deposit. | HK$3,123.8 million (US$398.3 million) | – | 36.5% |
| Other incomeHigher currency exchange income and IPO financing service income. | HK$715.8 million (US$91.3 million) | – | 61.2% |
Capital returns
- As of June 30, 2026, the Company had repurchased approximately 3.8 million ADSs for an aggregate consideration of approximately US$418 million in open market transactions under the current share repurchase program.
What drove it
- Funded accounts increased by 252 thousand net new funded accounts during the quarter, with Malaysia leading additions for the third consecutive quarter and Hong Kong and Singapore following as key contributors.
- Record trading volume was supported by a meaningful acceleration in U.S. stock trading activity, including heightened client interest in semiconductor and other AI value chain names.
- Hong Kong stock activity reflected engagement in semiconductor, China internet, and newly listed AI names.
- Client asset growth was mainly attributable to higher market valuation of clients' stock holdings and, to a lesser extent, net asset inflow.
- Margin financing and securities lending balance increased amid an active Hong Kong IPO market and upbeat sentiment that increased leverage utilization.
- Other income growth was primarily attributable to higher currency exchange income and IPO financing service income.
Concerns
- Gross margin was 86.3%, compared with 87.4% in the second quarter of 2025.
- Operating margin declined to 62.0% from 63.0% in the second quarter of 2025.
- Total costs increased 46.9% year-over-year, exceeding total revenue growth of 35.6%.
- Processing and servicing costs increased 69.6% year-over-year, primarily due to increasing cloud service fees in AI capabilities.
- Selling and marketing expenses increased 53.1% year-over-year, driven by the increase of new funded accounts.
- Brokerage commission and handling charge income was partially offset by a decline in blended commission rate.
What to watch
- Trading activity in U.S. stocks, where volume rose 67.2% sequentially to HK$5.02 trillion.
- The active Hong Kong IPO market and its effect on leverage utilization and IPO financing service income.
- The pace and monetization of new funded-account cohorts in Malaysia, Hong Kong, and Singapore.
- Margin development as cloud service fees in AI capabilities, selling and marketing expense, and general and administrative personnel costs increase.
- Execution of product and geographic expansion, including Prediction Markets in the U.S., virtual asset financing in Hong Kong, and Moomoo Thailand.
Balance sheet and cash flow
- Cash and cash equivalents were HK$18,380,950 thousand (US$2,343,911 thousand) as of June 30, 2026.
- Cash held on behalf of clients was HK$135,824,565 thousand (US$17,320,143 thousand) as of June 30, 2026.
- Loans and advances-current were HK$91,875,630 thousand (US$11,715,842 thousand) as of June 30, 2026.
- Total assets were HK$292,607,613 thousand (US$37,312,881 thousand) as of June 30, 2026.
- Borrowings were HK$15,735,475 thousand (US$2,006,564 thousand) as of June 30, 2026.
- Total liabilities were HK$253,403,144 thousand (US$32,313,586 thousand) as of June 30, 2026.
- Total shareholders' equity was HK$38,876,690 thousand (US$4,957,497 thousand) as of June 30, 2026.
- Total equity was HK$39,204,469 thousand (US$4,999,295 thousand) as of June 30, 2026.
- No operating cash flow or free cash flow figure was reported.
Analysis
Futu reported a strong second quarter, with total revenues increasing 35.6% year-over-year to HK$7,200.2 million (US$918.2 million) and net income increasing 41.6% to HK$3,641.9 million (US$464.4 million). Adjusted net income increased 40.1% to HK$3,725.1 million (US$475.0 million). The revenue mix expanded across brokerage commission and handling charges, interest income, and other income, with other income the fastest-growing stream at 61.2% year-over-year.
Customer and activity indicators showed broad growth. Funded accounts increased 33.6% year-over-year to 3,842,667, while total client assets increased 43.6% year-over-year and 14.5% quarter-over-quarter to HK$1.40 trillion. Trading volume reached HK$6.42 trillion, up 78.8% year-over-year and 54.6% quarter-over-quarter. Management attributed the acceleration in U.S. stock trading to interest in semiconductor and other AI value chain names, while Hong Kong activity included semiconductor, China internet, and newly listed AI names.
Profitability remained high but experienced modest gross and operating margin pressure. Gross margin was 86.3%, compared with 87.4% in the year-ago quarter, and operating margin was 62.0%, compared with 63.0%. Total costs increased 46.9% year-over-year, faster than revenue, led by a 69.6% increase in processing and servicing costs associated with cloud service fees in AI capabilities. Selling and marketing expense increased 53.1% as the Company added funded accounts. Net income margin nonetheless increased to 50.6% from 48.4%.
Interest income increased 36.5%, driven by higher income from margin financing and bank deposits. The margin financing and securities lending balance increased 85.1% year-over-year and 30.5% quarter-over-quarter to HK$95.1 billion, which management linked to an active Hong Kong IPO market and higher leverage utilization. Wealth-management client assets increased 10.4% year-over-year to HK$180.2 billion, supported primarily by equity fund holdings amid strong global equity market performance.
Capital allocation included approximately 3.8 million ADSs repurchased for approximately US$418 million as of June 30, 2026. The filing did not provide forward financial guidance. Management highlighted product and geographic expansion through U.S. Prediction Markets, Hong Kong virtual asset financing approval through PantherTrade, and a Type A license in Thailand, but these developments did not include quantitative outlook targets.
Management, verbatim
In the second quarter, we added 252 thousand net new funded accounts, bringing total funded accounts to 3.8 million, up 33.6% year-over-year. Growth in funded accounts this quarter was supported by continued momentum across our international markets, reinforcing the diversification of our client base. Malaysia led new funded account additions for the third consecutive quarter. Hong Kong and Singapore followed as key contributors, with new client cohorts in both markets demonstrating stronger initial monetization compared with prior periods, a signal of ongoing quality improvement in our more established markets.
Leaf Hua Li, Chairman and Chief Executive Officer
Total trading volume reached a record HK$6.42 trillion, up 78.8% year-over-year and 54.6% quarter-over-quarter, supported by a meaningful acceleration in U.S. stock trading activity. U.S. stock trading volume rose 67.2% sequentially to HK$5.02 trillion, driven by heightened client interest in semiconductor and other AI value chain names. Hong Kong stock trading volume grew 15.9% quarter-over-quarter to HK$1.17 trillion, reflecting client engagement in semiconductor, China internet, and newly listed AI names.
Leaf Hua Li, Chairman and Chief Executive Officer
As of June 30, 2026, we have repurchased approximately 3.8 million ADSs for an aggregate consideration of approximately US$418 million in open market transactions in accordance with the authorization under the current share repurchase program.
Arthur Yu Chen, Chief Financial Officer
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross margin guidance
- Forward operating expense guidance
- Forward tax-rate guidance
- Prior-quarter financial results for total revenue, gross profit, operating income, net income, adjusted net income, and EPS
- Operating cash flow
- Free cash flow
- Dividend information
- Share repurchase authorization amount
- Reported segment reporting beyond revenue streams
- Prior-year figures for brokerage commission and handling charge income, interest income, other income, brokerage commission and handling charge expenses, interest expenses, processing and servicing costs, research and development expenses, and general and administrative expenses
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.