Futu (NASDAQ:FUTU) Releases Earnings Results, Beats Expectations By $0.35 EPS

Futu (NASDAQ:FUTU) announced its quarterly earnings results on Thursday. The company reported $3.33 EPS for the quarter, beating analysts’ consensus estimates of $2.98 by $0.35, FiscalAI reports. The company had revenue of $852.66 million for the quarter, compared to analysts’ expectations of $786.07 million. Futu had a net margin of 42.95% and a return on equity of 28.10%.

Here are the key takeaways from Futu’s conference call:

• Strong Q2 growth: Revenue rose 36% year over year to HKD 7.2 billion, while net income increased 42% to HKD 3.6 billion. Record trading volume, higher margin financing, and increased IPO-related income supported the results.
• Client growth remained robust, with 252,000 net new funded accounts added and total funded accounts reaching 3.84 million. Client assets rose 43.6% year over year to HKD 1.4 trillion, while Malaysia led account additions for the third consecutive quarter and Moomoo represented nearly 60% of funded accounts.
• Overseas expansion is gaining traction: Singapore continued to expand profitability, Malaysia reached operating breakeven, and Thailand offers a new Southeast Asian growth opportunity following receipt of a securities license, although launch timing remains subject to regulatory approval.
• New regulatory requirements led to cumulative client-asset outflows equivalent to a mid-single-digit percentage of total assets, with most Mainland-related outflows occurring in June and July. The impact also reduced net new funded accounts and pushed customer acquisition costs to approximately HKD 2,600, while July CAC increased further.
• Management said Q3 quarter-to-date trends are modestly softer, with lower funded-account additions and trading volume as market sentiment cooled, though Hong Kong and overseas net inflows have normalized. In the U.S., Prediction Markets exceeded 200 million contracts traded in the first month and are being positioned as a client-acquisition and cross-selling opportunity rather than a substitute for brokerage trading.

Futu Price Performance

NASDAQ FUTU opened at $123.64 on Friday. Futu has a 1 year low of $80.50 and a 1 year high of $202.53. The stock has a market capitalization of $17.33 billion, a PE ratio of 12.24, a P/E/G ratio of 1.31 and a beta of 0.43. The company’s 50 day simple moving average is $101.61 and its two-hundred day simple moving average is $126.21.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Futu by 805.2% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,126,633 shares of the company’s stock worth $195,933,000 after buying an additional 1,002,171 shares in the last quarter. BNP Paribas Financial Markets boosted its stake in Futu by 166.4% during the second quarter. BNP Paribas Financial Markets now owns 455,266 shares of the company’s stock valued at $56,266,000 after buying an additional 284,387 shares during the period. Man Group plc grew its position in Futu by 197.4% during the third quarter. Man Group plc now owns 393,609 shares of the company’s stock worth $68,453,000 after buying an additional 261,276 shares in the last quarter. Bank of America Corp DE increased its stake in Futu by 34.4% in the 2nd quarter. Bank of America Corp DE now owns 1,006,656 shares of the company’s stock worth $124,413,000 after acquiring an additional 257,389 shares during the last quarter. Finally, State Street Corp increased its stake in Futu by 18.4% in the 2nd quarter. State Street Corp now owns 1,212,481 shares of the company’s stock worth $149,851,000 after acquiring an additional 188,840 shares during the last quarter.

Key Futu News

Here are the key news stories impacting Futu this week:

• Positive Sentiment: Strong earnings beat: Futu reported quarterly earnings of $3.33 per share, above the $2.98 consensus estimate, while revenue of $852.66 million exceeded expectations of $786.07 million. The results were supported by record trading activity, and reports indicated quarterly profit rose 42%. Futu Announces Second Quarter 2026 Unaudited Financial Results
• Positive Sentiment: Healthy profitability and operating momentum: Futu reported a 41.87% net margin and 26.48% return on equity. The earnings beat and strong trading-volume growth appear to be the primary reasons investor sentiment improved.
• Neutral Sentiment: Trading reaction: Futu’s stock added roughly $800 million in market value during the session as investors responded to the results, but the shares remain below their 200-day moving average and well under their 52-week high, indicating continued volatility. Futu Holdings Surges, Adding Market Value
• Negative Sentiment: Legal risk remains prominent: Multiple law firms reminded investors of an August 25 deadline to seek lead-plaintiff status in a securities class action covering purchases from May 24, 2023, through May 27, 2026. The complaints allege undisclosed regulatory-compliance failures and misleading disclosures related to Chinese regulatory issues, including an alleged RMB1.85 billion penalty. These are allegations, not established findings, but they could create litigation costs, reputational damage and uncertainty over future operations. Futu Securities Fraud Lawsuit Deadline Alert

Analysts Set New Price Targets

A number of equities research analysts have issued reports on FUTU shares. The Goldman Sachs Group cut shares of Futu from a “buy” rating to a “neutral” rating and set a $102.13 target price on the stock. in a report on Monday, May 25th. Wall Street Zen raised Futu from a “sell” rating to a “hold” rating in a report on Saturday. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $87.00 price target (down from $300.00) on shares of Futu in a research report on Friday, May 22nd. Jefferies Financial Group reiterated a “buy” rating and set a $170.50 price objective on shares of Futu in a research note on Thursday, May 28th. Finally, Zacks Research raised Futu from a “strong sell” rating to a “hold” rating in a report on Monday, July 27th. Three analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $139.91.

About Futu

Futu Holdings Ltd. is a technology-driven brokerage and wealth management company that provides online brokerage services, market data, and investment tools to retail and institutional clients. Headquartered in Hong Kong and listed on the NASDAQ under the ticker FUTU, the company operates digital trading platforms that combine order execution, real-time quotes, news, and research tools to serve active investors and wealth management customers.

The firm’s product suite includes brokerage access to equities, exchange-traded funds and derivatives across major markets, margin financing, initial public offering (IPO) subscription services, wealth management products and discretionary investment solutions.