FUTU · Futu Holdings Limited

Futu Holdings' first quarter 2026 results showcased robust operational momentum. Total revenues rose 24.7% year-over-year to HK$5,856 million, driven by a 29.1% increase in total trading volume to HK$4.15 trillion and a 28.0% rise in interest income to HK$2,650 million. Gross profit expanded 29.4% to HK$5,107 million, with gross margin improving to 87.2% from 84.0% in the prior year, reflecting operating leverage. Income from operations grew 31.5% to HK$3,530 million, as cost growth remained well contained. However, reported net income plummeted 61.2% to HK$831 million, primarily due to a RMB1.85 billion ($~HK$2.1 billion) CSRC administrative penalty provision recognized in 'Others, net'. Excluding this non-recurring charge, adjusted net income would have been approximately HK$2,922 million (US$372.7 million), which would have represented a 36.3% increase from the prior year. Management highlighted strong client asset inflows, with total client assets reaching HK$1.22 trillion (up 47.2% YoY) and 225,000 net new funded accounts added in the quarter. The company also noted receipt of a VATP license for its virtual asset exchange, PantherTrade, positioning it for future growth. Despite the regulatory overhang, the underlying business remains healthy, supported by diversified revenue streams and a high-quality client base.