Futu Holdings Ltd
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.68%.
Did FUTU Beat Earnings? Q1 2025 Results
Futu Holdings posted a sharp earnings miss in the first quarter of 2025, with revenue of $603.43 million falling 86.95% short of the $4.62 billion consensus estimate and declining 76.7% year-over-year, while diluted EPS of $1.96 came in 87.05% below the $15.14 analyst forecast. The gap between reported figures and Wall Street expectations reflects a significant currency and unit-conversion disconnect rather than operational weakness; on a constant-currency basis, the company's filing context tells a markedly different story, with trading volume surging 140.1% to HK$3.22 trillion and non-GAAP adjusted net income rising 97.7% year-over-year to $284.95 million. Brokerage commission income jumped 113.5% as client momentum accelerated broadly, with approximately 262,000 net new funded accounts added in Q1, bringing the total to 2.67 million. Jefferies responded by raising its price target to $139.00 while maintaining a Buy rating. Management reiterated its full-year target of 800,000 net new funded accounts, noting Q1 already accounts for roughly one-third of that goal.
- Trading volume surged 140.1% YoY to HK$3.22 trillion driven by U.S. and Hong Kong stock activity
- Strong funded account growth of 41.6% YoY to 2.67 million accounts
- Total client assets up 60.2% YoY to HK$829.8 billion with record net asset inflow
- Hong Kong market rally and IPO boom driving new funded account additions
- DeepSeek-induced market rally reignited investor interest in Hong Kong stocks
- U.S. stock trading bolstered by clients' bottom fishing of technology and semiconductor names
- Operating leverage with revenue growth significantly outpacing cost increases
- Gross margin expansion to 84.0% from 81.9% YoY
“We started 2025 on a strong note, adding approximately 262 thousand funded accounts in the first quarter, up 47.8% year-over-year and 21.9% quarter-over-quarter. Total funded accounts reached 2.7 million, representing a 41.6% increase year-over-year and a 10.9% increase quarter-over-quarter. Hong Kong remained the top contributor to new funded accounts, as our marketing initiatives effectively leveraged the Hong Kong market rally and IPO boom. We believe that brokers with leading brand equity, product experience and execution capabilities will gain outsized benefits from strong equity market performance. Malaysia posted the fastest sequential growth in new funded accounts among all seven markets. After a year of rapid market share gain in Malaysia, we think there is ample headroom for further growth and will continue to invest in our product and our brand. In Japan, new funded accounts enjoyed robust growth and reached a historic high, as we solidified our position as the go-to broker for U.S. stock trading. Funded account growth accelerated in the U.S. as we enhanced our offerings for active traders and our high-profile advertising campaigns boosted brand visibility. With one-third of our full-year target already achieved, we remain firmly on track to meet our guidance of 800 thousand net new funded accounts in 2025.”
Futu Holdings CEO, on the earnings call
Forward Guidance & Outlook
Futu reiterated its full-year 2025 guidance of 800,000 net new funded accounts, noting that with approximately 262,000 added in Q1, one-third of the target has already been achieved. Management expressed confidence in continued growth across all markets, with particular emphasis on Hong Kong (benefiting from market rally and IPO boom), Malaysia (ample headroom for further growth), Japan (solidifying position as go-to broker for U.S. stock trading), and the U.S. (enhanced offerings for active traders and high-profile advertising campaigns boosting brand visibility).
FUTU YoY Financials
FUTU Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.