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Are AI-Backed Offerings Fueling Futu Holdings' Growth Engine?

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Key Takeaways

  • FUTU's AI-backed Moomoo and Futubull platforms drove sharp client and account growth.
  • Futu Holdings' top line surged 69.7% y/y, powered by AI-led insights and engagement.
  • Net income soared 105% as AI automation expanded margins and strengthened retention.

Futu Holdings Limited (FUTU - Free Report) has deployed AI in its Moomoo and Futubull platforms to accelerate client acquisition, enhancing offerings for retail and high-net-worth (HNW) investors.

Futubull AI, launched in March 2025, processed approximately 2 million user queries by the end of the quarter and recorded a 3X increase in adoption from the first quarter of 2025. This success was led by the launch of Moomoo AI to seven overseas markets, assisting investors globally to make more informed and efficient investment decisions.

The aforementioned AI-driven products act as an assistance to intelligent investment, easing market research by providing real-time insights. It is responsible for enhancing customer experience and contributing to financial inclusion. For retail investors, FUTU has become a go-to option for real-time market monitoring and analysis.

The HNWs have found these products to deliver more bespoke and efficient insights. A 40% quarter-over-quarter increment in net inflows for HNW clients in Singapore is a testament to these products' efficacy.

As of the second quarter of 2025, FUTU has recorded a 40% year-over-year growth in its funded accounts, with total clients registering a 68% growth. Quarterly retention of these funded accounts was well above 98%, a testament to the high level of loyalty and customer satisfaction driven by AI-led products. We have found that FUTU’s top line surged 69.7% year over year in the June quarter. Brokerage commissions and subscription services, driven by AI-led customer insights and engagement, supported this growth.

On the profitability front, AI-enabled automation and customer retention led to a whopping 105% year-over-year upsurge in net income, with margins expanding 980 basis points. FUTU’s AI capabilities are acting as a driving force in improving user growth and engagement, enhancing its financial prowess, and validating the vitality of AI in the company’s business model for the long haul.

FUTU’s Price Performance, Valuation & Estimates

The stock has skyrocketed 130% in the past six months, significantly outperforming its competitors, Agora (API - Free Report) , Skillsoft (SKIL - Free Report) and the industry as a whole. The industry and Agora have rallied 94.8% and 31.3%, respectively, while Skillsoft has declined 7.1%.

6-Month Price Performance

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

From a valuation standpoint, FUTU trades at a forward price-to-earnings ratio of 19.06, lower than the industry’s 31.02. Agora and Skillsoft trade at 40.57 and 3.31, respectively.

P/E - F12M

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

FUTU carries a Value Score of B. Agora and Skillsoft carry C and A, respectively.

The Zacks Consensus Estimate for FUTU’s earnings for 2025 and 2026 has increased 10.7% and 9.9%, respectively, over the past 60 days.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

 

FUTU currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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Agora, Inc. Sponsored ADR (API) - free report >>

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