Futu Holdings Limited (FUTU) Q3 2025 Earnings Call Transcript
Funded Accounts 3.13 million funded accounts, marking a 43% year-over-year and 9% quarter-over-quarter increase. Reasons: Accelerated client acquisition in all markets.
Net New Funded Accounts 254,000 net new funded accounts, up 65% year-over-year and 25% sequentially. Reasons: Accelerated client acquisition in all markets.
Total Client Assets HKD 1.24 trillion, up 79% year-over-year and 27% quarter-over-quarter. Reasons: Robust net asset inflow and appreciation in client stock holdings.
Margin Financing and Securities Lending Balance HKD 63.1 billion, climbed 23% quarter-over-quarter. Reasons: Bullish sentiment on equities and a buoyant IPO market boosting financing demand.
Total Trading Volume HKD 3.9 trillion, rose 105% year-over-year and 9% quarter-over-quarter. Reasons: Favorable market dynamics and upbeat investor sentiment.
Crypto Trading Volume Surged 161% sequentially. Reasons: 90% quarter-over-quarter increase in crypto asset balance and accelerated trading velocity.
Wealth Management Assets HKD 175.6 billion, rose 8% sequentially. Reasons: Increased allocation to fixed income funds and sustained inflow into money market funds.
IPO Distribution and IR Clients 561 clients, up 22% year-over-year. Reasons: Leading role in facilitating retail participation in the Hong Kong IPO market.
Total Revenue HKD 6.4 billion, up 86% year-over-year. Reasons: Higher trading volume.
Brokerage Commission and Handling Charge Income HKD 2.9 billion, up 91% year-over-year and 13% quarter-over-quarter. Reasons: Higher trading volume.
Interest Income HKD 3 billion, up 79% year-over-year and 33% quarter-over-quarter. Reasons: Higher interest income from security borrowing, lending business, margin financing, and bank deposits.
Other Income HKD 441 million, up 111% year-over-year. Reasons: Higher currency exchange service income, fund distribution service income, and IPO subscription service charge income.
Total Cost HKD 793.7 million, up 27% year-over-year. Reasons: Increase in brokerage commission and handling charge expenses, interest expenses, and processing and servicing costs.
Gross Profit HKD 5.6 billion, up 100% year-over-year. Reasons: Strong revenue growth.
Operating Expenses HKD 1.7 billion, up 57% year-over-year and 31% quarter-over-quarter. Reasons: Greater investment in crypto and AI capabilities, higher new fund accounts, and increased general and administrative headcount.
Income from Operations HKD 3.9 billion, up 125.5% year-over-year and 17% quarter-over-quarter. Reasons: Strong top-line growth and operating leverage.
Net Income HKD 3.2 billion, up 143% year-over-year and 25% quarter-over-quarter. Reasons: Strong revenue growth and operating leverage.
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ProShares UltraShort Ether ETF Sees 39.9% Outflow
- Significant Outflow: The ProShares UltraShort Ether ETF experienced an outflow of 640,000 units this week, resulting in a 39.9% decline in outstanding units compared to the previous week, indicating a substantial loss of investor confidence in the Ethereum market that could impact the ETF's liquidity and market performance.
- Market Reaction Tepid: This outflow reflects negative sentiment towards Ethereum, as investors may be withdrawing due to market volatility and uncertainty, exacerbating price pressure on Ethereum and affecting the overall stability of the cryptocurrency market.
- Investor Confidence Shaken: With the increase in outflows, investor confidence in the ProShares UltraShort Ether ETF is challenged, potentially leading more investors to reassess their allocations in crypto assets, which could influence future inflows.
- ETF Market Dynamics Shifting: The outflow situation of this ETF may prompt other investors to monitor its performance, thereby affecting the dynamics of the entire ETF market, particularly in the cryptocurrency sector, potentially leading to more similar products experiencing outflows or inflows.
Goldman Sachs Upgrades Futu Holdings to Buy Amid Positive Market Outlook
- Rating Upgrade: Goldman Sachs upgrades Futu Holdings from Neutral to Buy with a target price of $213.39, implying a 29% upside, reflecting a positive outlook on the Chinese wealth management market and a reassessment of Futu's new client growth.
- Market Outlook: Bank of America reiterates its Buy rating on Nvidia with a target price of $275, based on a 28x CY27E PE, indicating Nvidia's leading position in the fast-growing AI compute and networking markets, despite concerns over global AI project volatility and cyclical gaming market issues.
- M&A Potential: Citi upgrades Teck Resources to Buy, highlighting the transformative merger with Anglo American that will create a top-tier copper producer with 80% earnings exposure to copper, showcasing strategic industry consolidation.
- Stock Performance: BTIG upgrades McDonald's to Buy, noting that changes in value and promotions strategy are consistently driving traffic growth, indicating the company's adaptability and growth potential in the competitive fast-food market.
Goldman Sachs Upgrades Futu, Predicts Client Growth and Crypto Upside
- Accelerated Client Growth: Analyst Shuo Yang predicts that Futu will add 802,000 new paying clients in 2026 and 659,000 in 2027, indicating strong growth potential in favorable market conditions, which will further solidify its market position.
- Price Target Increase: Goldman Sachs upgraded Futu's rating from neutral to buy and raised the price target from $157.85 to $213.39, implying a potential gain of about 31% from Friday's close, reflecting optimism about Futu's new client growth and capital market outlook.
- Significant Competitive Advantages: Futu's low-fee, convenience-driven discount platform demonstrates higher client retention and return on equity, with the analyst noting its operational efficiency in distinct competitive regions, providing a durable competitive edge in the market.
- Digital Assets as Growth Driver: Although Futu currently offers retail crypto trading without B2B infrastructure, the analyst believes that future growth will stem from crypto trading, attracting new clients and increasing assets under management, thus driving expansion in the digital asset space.
Futu Trustee Launches Pension Family Trust with HK$3 Million Minimum Entry
- Innovative Pension Trust: Futu Trustee launched the Pension Family Trust on January 9, 2026, specifically designed for Hong Kong's middle-class families, with a minimum entry threshold of just HK$3 million, reducing traditional trust barriers by over 90% and enabling more families to access professional asset protection and succession planning services.
- Transparent Pricing Structure: The trust features a one-time setup fee of HK$28,000 and an annual management fee starting at HK$10,000, approximately 0.2%-0.3% of assets under management, with no additional charges for cash injections or trust termination, significantly alleviating financial burdens for middle-class families.
- Digital Convenience: The entire trust setup process is completed online, with real-time asset visibility, requiring only 2-3 weeks for establishment and offering 24/7 intelligent client support, greatly enhancing user experience and meeting modern families' demands for convenience.
- Comprehensive Ecosystem: This trust provides more than just a legal structure; it supports diversified global investments, allows for the injection of annuities and large life insurance policies, and ensures automatic payments to top-tier medical and elderly care providers in case of incapacity, demonstrating flexibility to adapt to evolving family needs.
Australian Investors Show 92% Interest in AI Tools for 2026 Investment Strategies
- Investor Enthusiasm for AI: A survey of over 600 Australian investors reveals that 92% are interested in leveraging AI tools for investment decisions, indicating a strong trust in technology and keen awareness of market dynamics.
- Global Investment Intentions: 75% of respondents plan to increase their investment in the US market, while 67% focus on the Australian market, reflecting their proactive stance towards global markets and pursuit of high-growth sectors.
- Risk Appetite: 68% of investors intend to maintain their current risk levels, with 25% willing to increase risk, aligning with their expectations of 5% to 15% returns in the Australian market, showcasing cautious optimism about future markets.
- Confidence in Investment Goals: Despite strong investment intentions, only 50% of investors feel confident about achieving their 2026 investment goals, with 39% uncertain, highlighting an increasing demand for guidance and better tools.
Futu Holdings Rises 98% Over the Past Year: Is Investing in FUTU Stock a Good Idea?
Futu Holdings Performance: Futu Holdings Limited (FUTU) has seen a remarkable 97.7% increase in shares over the past year, significantly outperforming its industry and competitors like Columbia Financial and American Express.
Client Growth and Financials: The company reported a 24.7% growth in funded accounts in Q3 2025, with substantial contributions from markets like Hong Kong, Singapore, and Malaysia, leading to an 86.3% year-over-year revenue increase and a 143.9% rise in net income.
Valuation and Profitability: FUTU is currently trading below industry averages in key valuation metrics, indicating it may be undervalued, while also demonstrating strong capital return capabilities and a solid liquidity position.
Analyst Confidence and Future Outlook: Analysts have shown increased confidence in FUTU, with upward revisions in earnings estimates for 2025 and 2026, suggesting a positive growth trajectory and making it a strong buy according to Zacks Rank.
ProShares UltraShort Ether ETF Sees 39.9% Outflow
- Significant Outflow: The ProShares UltraShort Ether ETF experienced an outflow of 640,000 units this week, resulting in a 39.9% decline in outstanding units compared to the previous week, indicating a substantial loss of investor confidence in the Ethereum market that could impact the ETF's liquidity and market performance.
- Market Reaction Tepid: This outflow reflects negative sentiment towards Ethereum, as investors may be withdrawing due to market volatility and uncertainty, exacerbating price pressure on Ethereum and affecting the overall stability of the cryptocurrency market.
- Investor Confidence Shaken: With the increase in outflows, investor confidence in the ProShares UltraShort Ether ETF is challenged, potentially leading more investors to reassess their allocations in crypto assets, which could influence future inflows.
- ETF Market Dynamics Shifting: The outflow situation of this ETF may prompt other investors to monitor its performance, thereby affecting the dynamics of the entire ETF market, particularly in the cryptocurrency sector, potentially leading to more similar products experiencing outflows or inflows.
Goldman Sachs Upgrades Futu Holdings to Buy Amid Positive Market Outlook
- Rating Upgrade: Goldman Sachs upgrades Futu Holdings from Neutral to Buy with a target price of $213.39, implying a 29% upside, reflecting a positive outlook on the Chinese wealth management market and a reassessment of Futu's new client growth.
- Market Outlook: Bank of America reiterates its Buy rating on Nvidia with a target price of $275, based on a 28x CY27E PE, indicating Nvidia's leading position in the fast-growing AI compute and networking markets, despite concerns over global AI project volatility and cyclical gaming market issues.
- M&A Potential: Citi upgrades Teck Resources to Buy, highlighting the transformative merger with Anglo American that will create a top-tier copper producer with 80% earnings exposure to copper, showcasing strategic industry consolidation.
- Stock Performance: BTIG upgrades McDonald's to Buy, noting that changes in value and promotions strategy are consistently driving traffic growth, indicating the company's adaptability and growth potential in the competitive fast-food market.
Goldman Sachs Upgrades Futu, Predicts Client Growth and Crypto Upside
- Accelerated Client Growth: Analyst Shuo Yang predicts that Futu will add 802,000 new paying clients in 2026 and 659,000 in 2027, indicating strong growth potential in favorable market conditions, which will further solidify its market position.
- Price Target Increase: Goldman Sachs upgraded Futu's rating from neutral to buy and raised the price target from $157.85 to $213.39, implying a potential gain of about 31% from Friday's close, reflecting optimism about Futu's new client growth and capital market outlook.
- Significant Competitive Advantages: Futu's low-fee, convenience-driven discount platform demonstrates higher client retention and return on equity, with the analyst noting its operational efficiency in distinct competitive regions, providing a durable competitive edge in the market.
- Digital Assets as Growth Driver: Although Futu currently offers retail crypto trading without B2B infrastructure, the analyst believes that future growth will stem from crypto trading, attracting new clients and increasing assets under management, thus driving expansion in the digital asset space.
Futu Trustee Launches Pension Family Trust with HK$3 Million Minimum Entry
- Innovative Pension Trust: Futu Trustee launched the Pension Family Trust on January 9, 2026, specifically designed for Hong Kong's middle-class families, with a minimum entry threshold of just HK$3 million, reducing traditional trust barriers by over 90% and enabling more families to access professional asset protection and succession planning services.
- Transparent Pricing Structure: The trust features a one-time setup fee of HK$28,000 and an annual management fee starting at HK$10,000, approximately 0.2%-0.3% of assets under management, with no additional charges for cash injections or trust termination, significantly alleviating financial burdens for middle-class families.
- Digital Convenience: The entire trust setup process is completed online, with real-time asset visibility, requiring only 2-3 weeks for establishment and offering 24/7 intelligent client support, greatly enhancing user experience and meeting modern families' demands for convenience.
- Comprehensive Ecosystem: This trust provides more than just a legal structure; it supports diversified global investments, allows for the injection of annuities and large life insurance policies, and ensures automatic payments to top-tier medical and elderly care providers in case of incapacity, demonstrating flexibility to adapt to evolving family needs.
Australian Investors Show 92% Interest in AI Tools for 2026 Investment Strategies
- Investor Enthusiasm for AI: A survey of over 600 Australian investors reveals that 92% are interested in leveraging AI tools for investment decisions, indicating a strong trust in technology and keen awareness of market dynamics.
- Global Investment Intentions: 75% of respondents plan to increase their investment in the US market, while 67% focus on the Australian market, reflecting their proactive stance towards global markets and pursuit of high-growth sectors.
- Risk Appetite: 68% of investors intend to maintain their current risk levels, with 25% willing to increase risk, aligning with their expectations of 5% to 15% returns in the Australian market, showcasing cautious optimism about future markets.
- Confidence in Investment Goals: Despite strong investment intentions, only 50% of investors feel confident about achieving their 2026 investment goals, with 39% uncertain, highlighting an increasing demand for guidance and better tools.
Futu Holdings Rises 98% Over the Past Year: Is Investing in FUTU Stock a Good Idea?
Futu Holdings Performance: Futu Holdings Limited (FUTU) has seen a remarkable 97.7% increase in shares over the past year, significantly outperforming its industry and competitors like Columbia Financial and American Express.
Client Growth and Financials: The company reported a 24.7% growth in funded accounts in Q3 2025, with substantial contributions from markets like Hong Kong, Singapore, and Malaysia, leading to an 86.3% year-over-year revenue increase and a 143.9% rise in net income.
Valuation and Profitability: FUTU is currently trading below industry averages in key valuation metrics, indicating it may be undervalued, while also demonstrating strong capital return capabilities and a solid liquidity position.
Analyst Confidence and Future Outlook: Analysts have shown increased confidence in FUTU, with upward revisions in earnings estimates for 2025 and 2026, suggesting a positive growth trajectory and making it a strong buy according to Zacks Rank.
