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FUTU Q4 Revenues Beat Estimates, Earnings Rise 79% Year Over Year
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Key Takeaways
FUTU reported Q4 2025 EPS of $3.07, up 79% YoY, as revenues climbed 45% to $827.2M.
FUTU saw brokerage income rise 34.6% and interest income increase 50.2%, with other income jumping 78.7%.
FUTU's trading volume hit a record HK$3.98T as funded accounts rose 39.6% and client assets surged 65.9%.
Futu Holdings (FUTU - Free Report) reported fourth-quarter 2025 net income of HK$23.92 ($3.07) per American Depositary Share, rising 79.2% year over year.
Revenues rose 45.3% year over year to US$827.2 million, surpassing the Zacks Consensus Estimate by 1.97%, driven by broad-based strength across brokerage commissions, interest income and other service revenue streams.
FUTU's Q4 2025 in Detail
Brokerage commission and handling charge income rose 34.6% year over year to $355.9 million, supported by higher overall trading volumes, partially offset by a mild decline in the blended commission rate.
Interest income climbed 50.2% year over year to $390.3 million, reflecting increased contributions from the securities borrowing and lending business, bank deposits and margin financing activity.
Futu Holdings Limited Sponsored ADR Price, Consensus and EPS Surprise
Other income advanced 78.7% year over year to US$81.0 million, driven by growth in fund distribution service income and IPO subscription service charge income.
Key Metrics for FUTU
Total funded accounts reached 3,365,414 as of Dec. 31, 2025, rising 39.6% year over year. FUTU added 234,000 net new funded accounts during the fourth quarter, an increase of 9% year over year.
Total brokerage accounts rose 29.8% year over year to 5,948,093, while the total registered user base grew 16% year over year to 29.2 million.
Total client assets reached HK$1.23 trillion as of Dec. 31, 2025, up 65.9% year over year, as robust net asset inflows were offset by depreciation in clients' Hong Kong stock holdings.
Total trading volume reached a record HK$3.98 trillion (US$511.3 billion) in the fourth quarter of 2025, rising 37.8% year over year, with U.S. stock trading volume accounting for HK$3.04 trillion (US$390.6 billion) and Hong Kong stock turnover contributing HK$821.1 billion (US$105.5 billion) to the total.
Margin financing and securities lending balance rose 33.1% year over year to HK$67.7 billion (US$8.7 billion), driven primarily by higher U.S. stock margin trading activity and short-term financing demand from Hong Kong IPO activity during the quarter.
Wealth management client assets grew 62% year over year to HK$179.6 billion (US$23.1 billion). Futu expanded product offerings across markets, including funds focused on high dividends in Hong Kong, domestic equity-focused funds in Singapore and Shariah-compliant gold tracker funds in Malaysia. The number of IPO distribution and investor relations clients stood at 600 as of quarter end, up 24.5% year over year.
FUTU's Operating Details
Total costs declined 6.1% year over year to US$93.6 million. Gross profit rose 56.2% year over year to US$733.6 million. Gross margin expanded to 88.7% from 82.5% in the fourth quarter of 2024, reflecting operating leverage on strong top-line growth alongside lower interest expenses tied to the securities borrowing and lending business.
Total operating expenses increased 8.6% year over year to $200.8 million. Research and development expenses rose 26.8% year over year to $65.1 million, reflecting increased headcount to support crypto and artificial intelligence initiatives. Selling and marketing expenses grew 9.2% year over year to $65.1 million, largely in line with growth in net new funded accounts, while customer acquisition costs remained flat year over year. General and administrative expenses declined 4.6% year over year to $70.6 million, primarily due to lower professional service expenses.
Income from operations increased 87% year over year to $532.8 million. Operating margin expanded to 64.4% from 50% in the fourth quarter of 2024.
Net income rose 80.2% year over year to $432.9 million. Net income margin expanded to 52.3% from 42.2% in the year-ago quarter. Non-GAAP adjusted net income, which excludes share-based compensation expenses, rose 77.0% year over year to $444million.
Balance Sheet of FUTU
As of Dec. 31, 2025, cash and cash equivalents were HK$10.47 billion (US$1.34 billion) compared to HK$10.72 billion as of Sept. 30, 2025. Cash held on behalf of clients declined to HK$113.4 billion from HK$127.6 billion in the prior quarter, reflecting lower client payables tied to a moderation in Hong Kong equity market activity.
Borrowings rose modestly to HK$12.14 billion (US$1.56 billion) as of Dec. 31, 2025, from HK$11.82 billion as of Sept. 30, 2025, reflecting continued financing activity to support platform operations and margin lending growth.
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FUTU Q4 Revenues Beat Estimates, Earnings Rise 79% Year Over Year
Key Takeaways
Futu Holdings (FUTU - Free Report) reported fourth-quarter 2025 net income of HK$23.92 ($3.07) per American Depositary Share, rising 79.2% year over year.
Revenues rose 45.3% year over year to US$827.2 million, surpassing the Zacks Consensus Estimate by 1.97%, driven by broad-based strength across brokerage commissions, interest income and other service revenue streams.
FUTU's Q4 2025 in Detail
Brokerage commission and handling charge income rose 34.6% year over year to $355.9 million, supported by higher overall trading volumes, partially offset by a mild decline in the blended commission rate.
Interest income climbed 50.2% year over year to $390.3 million, reflecting increased contributions from the securities borrowing and lending business, bank deposits and margin financing activity.
Futu Holdings Limited Sponsored ADR Price, Consensus and EPS Surprise
Futu Holdings Limited Sponsored ADR price-consensus-eps-surprise-chart | Futu Holdings Limited Sponsored ADR Quote
Other income advanced 78.7% year over year to US$81.0 million, driven by growth in fund distribution service income and IPO subscription service charge income.
Key Metrics for FUTU
Total funded accounts reached 3,365,414 as of Dec. 31, 2025, rising 39.6% year over year. FUTU added 234,000 net new funded accounts during the fourth quarter, an increase of 9% year over year.
Total brokerage accounts rose 29.8% year over year to 5,948,093, while the total registered user base grew 16% year over year to 29.2 million.
Total client assets reached HK$1.23 trillion as of Dec. 31, 2025, up 65.9% year over year, as robust net asset inflows were offset by depreciation in clients' Hong Kong stock holdings.
Total trading volume reached a record HK$3.98 trillion (US$511.3 billion) in the fourth quarter of 2025, rising 37.8% year over year, with U.S. stock trading volume accounting for HK$3.04 trillion (US$390.6 billion) and Hong Kong stock turnover contributing HK$821.1 billion (US$105.5 billion) to the total.
Margin financing and securities lending balance rose 33.1% year over year to HK$67.7 billion (US$8.7 billion), driven primarily by higher U.S. stock margin trading activity and short-term financing demand from Hong Kong IPO activity during the quarter.
Wealth management client assets grew 62% year over year to HK$179.6 billion (US$23.1 billion). Futu expanded product offerings across markets, including funds focused on high dividends in Hong Kong, domestic equity-focused funds in Singapore and Shariah-compliant gold tracker funds in Malaysia. The number of IPO distribution and investor relations clients stood at 600 as of quarter end, up 24.5% year over year.
FUTU's Operating Details
Total costs declined 6.1% year over year to US$93.6 million. Gross profit rose 56.2% year over year to US$733.6 million. Gross margin expanded to 88.7% from 82.5% in the fourth quarter of 2024, reflecting operating leverage on strong top-line growth alongside lower interest expenses tied to the securities borrowing and lending business.
Total operating expenses increased 8.6% year over year to $200.8 million. Research and development expenses rose 26.8% year over year to $65.1 million, reflecting increased headcount to support crypto and artificial intelligence initiatives. Selling and marketing expenses grew 9.2% year over year to $65.1 million, largely in line with growth in net new funded accounts, while customer acquisition costs remained flat year over year. General and administrative expenses declined 4.6% year over year to $70.6 million, primarily due to lower professional service expenses.
Income from operations increased 87% year over year to $532.8 million. Operating margin expanded to 64.4% from 50% in the fourth quarter of 2024.
Net income rose 80.2% year over year to $432.9 million. Net income margin expanded to 52.3% from 42.2% in the year-ago quarter. Non-GAAP adjusted net income, which excludes share-based compensation expenses, rose 77.0% year over year to $444million.
Balance Sheet of FUTU
As of Dec. 31, 2025, cash and cash equivalents were HK$10.47 billion (US$1.34 billion) compared to HK$10.72 billion as of Sept. 30, 2025. Cash held on behalf of clients declined to HK$113.4 billion from HK$127.6 billion in the prior quarter, reflecting lower client payables tied to a moderation in Hong Kong equity market activity.
Borrowings rose modestly to HK$12.14 billion (US$1.56 billion) as of Dec. 31, 2025, from HK$11.82 billion as of Sept. 30, 2025, reflecting continued financing activity to support platform operations and margin lending growth.
FUTU’s Zacks Ranks & Other Stocks to Consider
FUTU currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Finance sector are Nelnet (NNI - Free Report) , PhenixFIN (PFX - Free Report) and ProAssurance (PRA - Free Report) .
Nelnet, PhenixFIN and ProAssurance each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Nelnet’s 2026 EPS is pegged at $9.2 per share, down 23.21% year over year.
The Zacks Consensus Estimate for PhenixFin’s 2026 EPS is pegged at $2.5 per share, down 1.96% year over year.
The Zacks Consensus Estimate for ProAssurance’s 2026 EPS is pegged at $1.7 per share, down 33.95% year over year.