FUTU(FUTU) - 2025 Q2 - Quarterly Results

Futu Q2 2025 Earnings Release Financial & Operational Highlights The company reported strong Q2 2025 growth in revenue, net income, funded accounts, and client assets Q2 2025 Key Financial Metrics (YoY) | Metric | Q2 2025 | YoY Growth | | :--- | :--- | :--- | | Total Revenues | HK$5,310.9 million | 69.7% | | Total Gross Profit | HK$4,639.9 million | 81.6% | | Net Income | HK$2,572.6 million | 112.7% | | Non-GAAP Adjusted Net Income | HK$2,659.8 million | 105.2% | Q2 2025 Key Operational Metrics (YoY) | Metric | As of June 30, 2025 | YoY Growth | | :--- | :--- | :--- | | Funded Accounts | 2,877,126 | 40.9% | | Total Client Assets | HK$973.9 billion | 68.1% | | Total Trading Volume (Q2) | HK$3.59 trillion | 121.2% | | Total Users | 27.1 million | 16.6% | - A key milestone was reached as over half of total funded accounts now originate from outside Hong Kong[3] Operational Performance Details The company saw robust client acquisition, international expansion, and growth in trading and wealth management - Client acquisition and international expansion highlights included adding over 204,000 new funded accounts, a 31.6% YoY increase, with Hong Kong being the largest contributor and new marketing initiatives launched in the U.S. and Japan[3] Q2 2025 Trading Volume Breakdown | Category | Trading Volume | QoQ Change | | :--- | :--- | :--- | | Total Trading Volume | HK$3.59 trillion | +11.6% | | U.S. Stock Trading Volume | HK$2.70 trillion | +19.7% | | Hong Kong Stock Trading Volume | HK$833.5 billion | -9.0% | - Wealth management and corporate services demonstrated strong growth, with wealth management client assets reaching HK$163.2 billion (+104.4% YoY) and the company serving 517 IPO and IR clients[3] Detailed Financial Results Strong revenue growth and operating leverage drove significant increases in gross profit and net income Revenues Total revenues grew 69.7% YoY to HK$5.3 billion, driven by brokerage commission and interest income Q2 2025 Revenue Breakdown (in HK$ million) | Revenue Source | Q2 2025 | Q2 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Brokerage commission and handling charge | 2,578.6 | 1,376.3 | 87.4% | | Interest income | 2,288.2 | 1,591.7 | 43.8% | | Other income | 444.1 | 161.0 | 175.8% | | Total Revenues | 5,310.9 | 3,129.0 | 69.7% | Costs and Gross Profit Gross profit surged 81.6% YoY to HK$4.6 billion, with gross margin expanding to 87.4% Q2 2025 Costs and Gross Profit (in HK$ million) | Item | Q2 2025 | Q2 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Total Costs | 670.9 | 574.3 | 16.8% | | Total Gross Profit | 4,639.9 | 2,554.7 | 81.6% | - Gross margin expanded to 87.4% in Q2 2025, compared to 81.6% in the same period last year[10] Operating Expenses Total operating expenses increased 20.6% YoY, reflecting investments in R&D, marketing, and personnel Q2 2025 Operating Expenses Breakdown (in HK$ million) | Expense Category | Q2 2025 | Q2 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Research and development | 441.9 | 373.9 | 18.2% | | Selling and marketing | 429.1 | 338.3 | 26.8% | | General and administrative | 424.9 | 362.1 | 17.3% | | Total Operating Expenses | 1,296.0 | 1,074.4 | 20.6% | Profitability Significant operating leverage led to a 125.9% increase in income from operations and a higher net income margin Q2 2025 Profitability Metrics (in HK$ million) | Metric | Q2 2025 | Q2 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Income from Operations | 3,344.0 | 1,480.3 | 125.9% | | Net Income | 2,572.6 | 1,209.3 | 112.7% | | Non-GAAP Adjusted Net Income | 2,659.8 | 1,296.2 | 105.2% | - The operating margin increased to 63.0% from 47.3% in Q2 2024, while the net income margin increased to 48.4% from 38.6%[13][14] Net Income per ADS | Per ADS Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Basic Net Income | HK$18.48 | HK$8.79 | | Diluted Net Income | HK$18.24 | HK$8.66 | Financial Statements The unaudited statements detail the company's financial position, performance, and non-GAAP reconciliations Unaudited Condensed Consolidated Balance Sheets Total assets grew to HK$198.4 billion, with a corresponding increase in client-related assets and liabilities Selected Balance Sheet Items (in HK$ thousands) | Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | 198,399,373 | 158,756,933 | | Cash held on behalf of clients | 105,308,081 | 68,639,816 | | Total Liabilities | 165,119,851 | 130,752,472 | | Payables to clients | 110,940,538 | 72,379,135 | | Total Shareholders' Equity | 33,291,106 | 28,011,241 | Unaudited Condensed Consolidated Statements of Comprehensive Income Net income for the second quarter more than doubled year-over-year to HK$2.6 billion Income Statement Summary - Three Months Ended June 30 (in HK$ thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenues | 5,310,890 | 3,128,986 | | Total Gross Profit | 4,639,948 | 2,554,687 | | Income from Operations | 3,343,983 | 1,480,307 | | Net Income | 2,572,560 | 1,209,298 | Unaudited Reconciliations of Non-GAAP and GAAP Results Non-GAAP adjusted net income reached HK$2.7 billion after excluding share-based compensation expenses Non-GAAP Reconciliation - Three Months Ended June 30 (in HK$ thousands) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net income (GAAP) | 2,572,560 | 1,209,298 | | Add: Share-based compensation expenses | 87,254 | 86,855 | | Adjusted net income (Non-GAAP) | 2,659,814 | 1,296,153 | Other Information This section contains details on the earnings call, non-GAAP measures, and forward-looking statements - The company will hold an earnings conference call on August 20, 2025, at 7:30 AM U.S. Eastern Time[17] - Non-GAAP adjusted net income is defined as net income excluding non-cash share-based compensation expenses[22]