Futu Holdings Profit Surges 113 Percent

Futu Holdings(NASDAQ:FUTU) reported second quarter 2025 earnings on August 20, 2025, delivering a 70% year-over-year revenue surge to HKD $5.3 billion, with net income up 113% YoY to HKD $2.6 billion and client assets reaching a record HKD $974 billion. The call highlighted rapid international expansion, deepening product innovation in crypto and AI, and net income margin expanded to 48.4%, alongside strong client acquisition and retention.

International client base drives Futu Holdings growth

Funded accounts grew 41% YoY to 2.9 million, with more than 50% now sourced outside Hong Kong. Notably, Malaysia and Japan platforms demonstrated strong user engagement from tailored local offerings.

"We've reached a key milestone in our international expansion, which is at the quarter end, over 50% of funded accounts are from clients outside of Futu Securities Hong Kong. Singapore and the US are our largest international markets, followed by the rapidly expanding Malaysia and Japan, while Australia and Canada show robust growth momentum."
-- Daniel Yuan, Chief of Staff to CEO, Head of Strategy and IR

This international diversification reduces reliance on the Hong Kong market and positions the company for more resilient, global growth as it scales its platform across multiple geographies.

Futu Holdings net income margin expands with leverage from top-line surge

Total gross profit grew 82% year over year to HKD $4.6 billion on the back of a 121% year-over-year spike in trading volume that reached HKD $3.59 trillion, while operating expenses rose just 21% year over year. As a result, operating margin widened to 63%, compared to 47.3% in the second quarter 2024, with continued investment in AI and new market launches driving incremental costs.

"As a result, income from operation increased by 126% year over year and 25% quarter over quarter to HKD $3.3 billion. Operating margin increased to 63% from 47.3% in 2024, mostly due to strong top-line growth and operating leverage. Our net income increased by 113% year over year and 20% quarter over quarter to HKD $2.6 billion. Net income margin expanded to 48.4% in the second quarter as compared to 38.6% in the same quarter last year."
-- Arthur Chen, Chief Financial Officer

Rising profitability, supported by scale effects and higher average client assets, amplifies Futu Holdings’ capacity to invest in both geographic and product innovation without materially eroding margins.

Crypto and digital asset initiatives expand monetization potential

Futu Holdings advanced its digital asset strategy through the launch of retail crypto trading in the U.S. and several Asian markets, partnership-driven tokenized fund distribution, and increased investment in crypto exchange licensing in Hong Kong and beyond. The value of client-held crypto assets rose over 40% quarter-over-quarter, and Futu became the first Hong Kong broker to distribute tokenized money market funds from China AMC.

"In particular, in the second quarter, all the asset inflows from the overseas markets outside of Greater China, the amount almost exceeded the absolute amount we acquired from similar markets in 2024, which was very impressive. I think in the second half, we will continue to enhance our brand acquisitions in terms of, for instance, there will be more physical stores rolled out in different markets in the second half. And also there will be some new product offerings in the wealth management and in the crypto side as well in the second half. For instance, we do have plans to provide crypto transfer in and transfer out functionalities for overseas markets alongside the Hong Kong markets as well."
-- Arthur Chen, Chief Financial Officer

Diversified digital asset initiatives not only increase client engagement and retention but also lay the foundation for cross-selling, new revenue streams, and future profitability from tokenized products and exchange activities.

Looking Ahead

Management reiterated confidence in meeting the full-year new funded accounts target of 800,000, having achieved 460,000 in the first half, and expects continued strong net asset inflow and trading volume if market conditions persist. The company will launch crypto transfer capabilities in multiple regions, expand physical presence internationally, and pursue further digital product rollouts in wealth management and AI-powered tools. No explicit quantitative guidance was provided for third quarter revenue or profitability, but management indicated current quarter-to-date client acquisitions and asset flows are tracking in line with run rates.

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