Futu (NASDAQ:FUTU) Announces Earnings Results

Futu (NASDAQ:FUTU) announced its 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. Futu had a net margin of 41.87% and a return on equity of 26.48%. The business had revenue of $852.66 million during the quarter, compared to analysts’ expectations of $786.07 million.

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

FUTU opened at $112.73 on Friday. The stock has a market cap of $15.80 billion, a P/E ratio of 12.40, a P/E/G ratio of 1.27 and a beta of 0.43. The stock’s 50 day simple moving average is $101.09 and its 200 day simple moving average is $126.23. Futu has a 1-year low of $80.50 and a 1-year high of $202.53.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Geneos Wealth Management Inc. purchased a new stake in shares of Futu in the 1st quarter worth about $27,000. Parkside Financial Bank & Trust raised its position in Futu by 30,000.0% during the fourth quarter. Parkside Financial Bank & Trust now owns 301 shares of the company’s stock worth $49,000 after acquiring an additional 300 shares during the last quarter. Quarry LP acquired a new position in Futu during the third quarter worth about $51,000. Jones Financial Companies Lllp lifted its holdings in shares of Futu by 442.4% in the first quarter. Jones Financial Companies Lllp now owns 640 shares of the company’s stock valued at $66,000 after purchasing an additional 522 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in shares of Futu by 53.5% in the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 419 shares of the company’s stock valued at $73,000 after purchasing an additional 146 shares during the last quarter.

Wall Street Analyst Weigh In

FUTU has been the subject of several analyst reports. Jefferies Financial Group reaffirmed a “buy” rating and set a $170.50 price objective on shares of Futu in a research note on Thursday, May 28th. JPMorgan Chase & Co. restated a “neutral” rating and set a $87.00 price target (down from $300.00) on shares of Futu in a research note on Friday, May 22nd. Wall Street Zen downgraded Futu from a “hold” rating to a “sell” rating in a report on Saturday, May 30th. Zacks Research upgraded shares of Futu from a “strong sell” rating to a “hold” rating in a research report on Monday, July 27th. Finally, The Goldman Sachs Group cut shares of Futu from a “buy” rating to a “neutral” rating and set a $102.13 price objective on the stock. in a research note on Monday, May 25th. Three investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, Futu presently has a consensus rating of “Hold” and an average target price of $139.91.

Key Stories Impacting Futu

Here are the key news stories impacting Futu this week:

• Positive Sentiment: Q2 results exceeded expectations: Futu reported adjusted earnings of $3.33 per share versus the $2.98 consensus estimate, while revenue reached $852.66 million, well above expectations of $786.07 million. The company also reported a 41.87% net margin and 26.48% return on equity. Futu Announces Second Quarter 2026 Unaudited Financial Results
• Positive Sentiment: Trading activity remained exceptionally strong: Reports indicated that second-quarter profit increased 42%, helped by record trading volume of HK$6.42 trillion. The earnings beat and elevated customer activity are the main reasons the stock has increased. Futu Holdings Q2 2026 Earnings Report
• Neutral Sentiment: Investor attention is focused on regulatory compliance: The reported lawsuit centers on allegations that Futu made misleading statements about taking “rectification measures” to satisfy Chinese regulators while allegedly continuing operations that resulted in a RMB1.85 billion penalty. The allegations have not been proven in court.
• Negative Sentiment: Multiple law firms are promoting the same securities class action: Notices from Rosen, Pomerantz, Kaplan Fox, Faruqi & Faruqi, Bragar Eagel & Squire, and others seek investors who purchased FUTU securities between May 24, 2023, and May 27, 2026. Investors have until August 25, 2026, to seek appointment as lead plaintiff. The litigation could increase legal costs, reputational risk, and uncertainty around Futu’s regulatory practices. Futu Holdings Securities Lawsuit Notice

Futu Company Profile

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.