Futu Announces First Quarter 2026 Unaudited Financial Results
Rhea-AI Summary
AI-generated analysis. Not financial advice.
Positive
- None.
Negative
- None.
News Market Reaction – FUTU
On the day this news was published, FUTU declined 4.82%, reflecting a moderate negative market reaction. Argus tracked a peak move of +12.8% during that session. Argus tracked a trough of -3.8% from its starting point during tracking. Our momentum scanner triggered 29 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $834M from the company's valuation, bringing the market cap to $16.47B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
FUTU gained 2.34% while key capital markets peers were mixed to negative: LPLA -3.67%, HLI -2.11%, TW -0.4%, EVR -0.23%, JEF +0.25%, pointing to a stock-specific move around the results and CSRC update.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 12 | Q4/FY 2025 earnings | Positive | -6.3% | Strong Q4 and full-year 2025 growth in revenue, net income and assets. |
| Nov 18 | Q3 2025 summary | Positive | -0.5% | Q3 2025 revenue and non-GAAP net income more than doubled year-over-year. |
| Nov 18 | Q3 2025 earnings | Positive | -0.5% | Q3 2025 revenues and net income grew sharply with client and volume gains. |
| Aug 20 | Q2 2025 results | Positive | +6.0% | Q2 2025 revenues and non-GAAP net income rose strongly with asset growth. |
| Aug 20 | Q2 2025 earnings | Positive | +6.0% | Q2 2025 showed outstanding revenue, net income and trading volume growth. |
Earnings releases have generally been strong fundamentally, but share-price reactions were mixed, with several past quarters selling off despite positive growth metrics.
Over the last year, Futu’s earnings releases have highlighted rapid growth in revenues, net income, trading volume, and client assets. Q2 and Q3 2025 results showed revenue growth above 69% YoY and net income more than doubling, while full-year 2025 revenue reached HK$22.8B and net income HK$11.3B. Despite these strong numbers, immediate post-earnings stock moves were often modest or negative. Today’s Q1 2026 report adds regulatory penalty impacts to an otherwise growth-focused trajectory.
Historical Comparison
Past earnings headlines for FUTU produced an average move of 0.95%, with reactions often muted or negative despite strong growth metrics.
Earnings releases since mid-2025 have traced rapid expansion in revenues, net income, trading volume, and client assets, with Q1 2026 now layering in the impact of a substantial CSRC-related penalty on otherwise strong operating trends.
Market Pulse Summary
This announcement combines strong operating growth—higher revenues, trading volume, and client assets—with a substantial proposed RMB1.85B CSRC penalty that sharply reduced reported net income. Historically, Futu’s earnings have shown rapid expansion in 2025 metrics, but share-price reactions were inconsistent. Investors may focus on how quickly underlying profitability normalizes excluding the penalty, progress on regulatory proceedings, and the pace of execution under the authorized US$800M buyback.
Key Terms
margin financing financial
securities lending financial
non-gaap financial
ads financial
ipo financial
virtual asset exchange technical
AI-generated analysis. Not financial advice.
HONG KONG, May 28, 2026 (GLOBE NEWSWIRE) -- Futu Holdings Limited (“Futu” or the “Company”) (Nasdaq: FUTU), a leading tech-driven online brokerage and wealth management platform, today announced its unaudited financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Operational Highlights
- Total number of funded accounts1 increased
34.3% year-over-year to 3,590,325 as of March 31, 2026. - Total number of brokerage accounts2 increased
26.8% year-over-year to 6,284,404 as of March 31, 2026. - Total number of users3 increased
14.9% year-over-year to 30.2 million as of March 31, 2026. - Total client assets increased
47.2% year-over-year to HK$1.22 trillion as of March 31, 2026. - Daily average client assets were HK
$1.27 trillion in the first quarter of 2026, an increase of60.8% from the same period in 2025. - Total trading volume in the first quarter of 2026 increased by
29.1% year-over-year to HK$4.15 trillion , in which trading volume for U.S. stocks was HK$3.00 trillion , and trading volume for Hong Kong stocks was HK$1.01 trillion . - Margin financing and securities lending balance increased
44.9% year-over-year to HK$72.9 billion as of March 31, 2026.
First Quarter 2026 Financial Highlights
- Total revenues increased
24.7% year-over-year to HK$5,856.0 million (US$746.9 million ). - Total gross profit increased
29.4% year-over-year to HK$5,106.7 million (US$651.4 million ). - Net income decreased
61.2% year-over-year to HK$831.0 million (US$106.0 million ). - Non-GAAP adjusted net income4 decreased
58.5% year-over-year to HK$919.5 million (US$117.3 million ).
Mr. Leaf Hua Li, Futu’s Chairman and Chief Executive Officer, said, “In the first quarter, we added 225 thousand net new funded accounts, bringing total funded accounts to 3.6 million, up
“Net asset inflow accelerated meaningfully primarily driven by our high-quality client base in Hong Kong and Singapore. Total client assets were HK
“Total trading volume climbed to a record HK
“Total client assets in wealth management increased
“As of quarter end, we have cumulatively served 625 IPO distribution and IR clients, up
“In March, our wholly owned virtual asset exchange, PantherTrade, received its VATP license from the Hong Kong SFC to commence full-scale licensed operations, further enriching the Futu ecosystem with a broader spectrum of services and delivering a more seamless, integrated investment experience for our clients.”
Mr. Arthur Yu Chen, Futu’s Chief Financial Officer, added, “On May 22, 2026, the Company received an Administrative Penalty Pre-Notification Letter from the China Securities Regulatory Commission Shenzhen Bureau in an aggregate amount of approximately RMB1.85 billion, which has been fully reflected in our first quarter financial statements as an adjusted subsequent event under U.S. GAAP. This amount does not impact our business fundamentals or financial stability. We remain focused on long-term growth across international markets.”
First Quarter 2026 Financial Results
Revenues
Total revenues were HK
Brokerage commission and handling charge income was HK
Interest income was HK
Other income was HK
Costs
Total costs were HK
Brokerage commission and handling charge expenses were HK
Interest expenses were HK
Processing and servicing costs were HK
Gross Profit
Total gross profit was HK
Operating Expenses
Total operating expenses were HK
Research and development expenses were HK
Selling and marketing expenses were HK
General and administrative expenses were HK
Income from Operations
Income from operations increased by
Net Income
Net income decreased by
Non-GAAP adjusted net income decreased by
Net Income per ADS
Basic net income per American Depositary Share (“ADS”) was HK
Recent Development
As previously announced, on May 22, 2026, the Company received a Notice of Investigation and an Administrative Penalty Pre-Notification Letter (the "Pre-Notification Letter") from the China Securities Regulatory Commission and its Shenzhen Bureau (collectively, the “CSRC”). The Pre-Notification Letter proposed penalties on the relevant Futu entities in mainland China and Hong Kong for conducting certain regulated business activities without the requisite licenses or approvals. The proposed penalties comprise (i) confiscation of illegal gains of approximately RMB470 million, and (ii) imposition of fines of approximately RMB1.38 billion, in an aggregate amount of approximately RMB1.85 billion. The unaudited financial statements for the three months ended March 31, 2026 included in this earnings release have reflected the impact of this subsequent event. These amounts were included in “Others, net” of the unaudited condensed consolidated statements of comprehensive income for the three months ended March 31, 2026.
Prior to giving effect to this adjustment, the Company’s net income for the three months ended March 31, 2026 were approximately HK
Share Repurchase Program
On November 18, 2025, our board of directors authorized a share repurchase program under which the Company may repurchase up to US
Conference Call and Webcast
Futu's management will hold an earnings conference call on Thursday, May 28, 2026, at 7:30 AM U.S. Eastern Time (7:30 PM on the same day, Beijing/Hong Kong Time).
Please note that all participants will need to pre-register for the conference call, using the link
https://register-conf.media-server.com/register/BIec7483756a8d4ef789028b4abb4be479
It will automatically lead to the registration page of "Futu Holdings Ltd First Quarter 2026 Earnings Conference Call", where details for RSVP are needed.
Upon registering, all participants will be provided in confirmation emails with participant dial-in numbers and personal PINs to access the conference call. Please dial in 10 minutes prior to the call start time using the conference access information.
Additionally, a live and archived webcast of this conference call will be available at https://ir.futuholdings.com/.
About Futu Holdings Limited
Futu Holdings Limited (Nasdaq: FUTU) is an advanced technology company transforming the investing experience by offering fully digitalized financial services. Through its proprietary digital platforms, Futubull and Moomoo, the Company provides a full range of investment services, including trade execution and clearing, margin financing and securities lending, and wealth management. The Company has embedded social media tools to create a network centered around its users and provide connectivity to users, investors, companies, analysts, media and key opinion leaders. The Company also provides corporate services, including IPO distribution, investor relations and ESOP solution services.
Use of Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses non-GAAP adjusted net income, a non-GAAP measure, as a supplemental measure to review and assess its operating performance. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines non-GAAP adjusted net income as net income excluding share-based compensation expenses. The Company presents the non-GAAP financial measure because it is used by the management to evaluate the operating performance and formulate business plans. Non-GAAP adjusted net income enables the management to assess the Company's operating results without considering the impact of share-based compensation expenses, which are non-cash charges. The Company also believes that the use of the non-GAAP measure facilitates investors' assessment of its operating performance.
Non-GAAP adjusted net income is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using non-GAAP adjusted net income is that it does not reflect all items of expense that affect the Company's operations. Share-based compensation expenses have been and may continue to be incurred in the business and is not reflected in the presentation of non-GAAP adjusted net income. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.
The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance.
For more information on this non-GAAP financial measure, please see the table captioned "Unaudited Reconciliations of Non-GAAP and GAAP Results" set forth at the end of this press release.
Exchange Rate Information
This announcement contains translations of certain HK dollars ("HK$") amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from HK$ to US$ were made at the rate of HK
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from the management team of the Company, contain forward-looking statements. Futu may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Futu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Futu's goal and strategies; Futu's expansion plans; Futu's future business development, financial condition and results of operations; Futu's expectations regarding demand for, and market acceptance of, its credit products; Futu's expectations regarding keeping and strengthening its relationships with borrowers, institutional funding partners, merchandise suppliers and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Futu's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Futu does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For investor inquiries, please contact:
Investor Relations
Futu Holdings Limited
ir@futuholdings.com
_______________________
1 The number of funded accounts refers to the number of brokerage accounts with Futu that have a positive account balance. Multiple funded accounts by one client are counted as one funded account.
2 Multiple brokerage accounts by one client are counted as one brokerage account.
3 The number of users refers to the number of user accounts registered with Futu.
4 Non-GAAP adjusted net income is defined as net income excluding share-based compensation expenses.
| FUTU HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except for share and per share data) | |||||
| As of December 31, | As of March 31, | ||||
| 2025 | 2026 | 2026 | |||
| HK$ | HK$ | US$ | |||
| ASSETS | |||||
| Cash and cash equivalents | 10,465,888 | 16,485,774 | 2,102,777 | ||
| Cash held on behalf of clients | 113,398,356 | 114,781,186 | 14,640,460 | ||
| Restricted cash | 2,510 | 4,008 | 511 | ||
| Term deposit | - | 106,405 | 13,572 | ||
| Short-term investments | 6,688,871 | 6,517,535 | 831,318 | ||
| Securities purchased under agreements to resell | 507,767 | 535,986 | 68,366 | ||
| Loans and advances-current (net of allowance of HK | 64,607,370 | 73,685,339 | 9,398,640 | ||
| Receivables: | |||||
| Clients | 838,521 | 758,288 | 96,720 | ||
| Brokers | 18,459,373 | 18,688,930 | 2,383,792 | ||
| Clearing organizations | 5,522,472 | 6,204,482 | 791,388 | ||
| Fund management companies and fund distributors | 1,997,086 | 1,655,735 | 211,191 | ||
| Interest | 852,186 | 918,083 | 117,102 | ||
| Amounts due from related parties | 6,780 | 2,079 | 265 | ||
| Prepaid assets | 77,960 | 140,665 | 17,942 | ||
| Other current assets | 225,478 | 366,894 | 46,798 | ||
| Total current assets | 223,650,618 | 240,851,389 | 30,720,842 | ||
| Operating lease right-of-use assets | 569,939 | 570,293 | 72,741 | ||
| Long-term investments | 615,220 | 657,609 | 83,879 | ||
| Loans and advances-non-current | 139,668 | 106,618 | 13,599 | ||
| Other non-current assets | 3,461,431 | 4,130,762 | 526,882 | ||
| Total non-current assets | 4,786,258 | 5,465,282 | 697,101 | ||
| Total assets | 228,436,876 | 246,316,671 | 31,417,943 | ||
| LIABILITIES | ||||||
| Amounts due to related parties | 67,143 | 106,074 | 13,530 | |||
| Payables: | ||||||
| Clients | 125,249,957 | 126,826,924 | 16,176,904 | |||
| Brokers | 38,678,396 | 44,453,958 | 5,670,148 | |||
| Clearing organizations | 750,964 | 2,527,818 | 322,426 | |||
| Fund management companies and fund distributors | 1,277,467 | 1,458,619 | 186,048 | |||
| Interest | 62,527 | 72,507 | 9,248 | |||
| Borrowings | 12,143,237 | 15,708,151 | 2,003,591 | |||
| Securities sold under agreements to repurchase | 4,743,096 | 6,198,116 | 790,576 | |||
| Lease liabilities-current | 200,089 | 204,915 | 26,137 | |||
| Accrued expenses and other current liabilities | 4,527,129 | 6,839,824 | 872,425 | |||
| Total current liabilities | 187,700,005 | 204,396,906 | 26,071,033 | |||
| Lease liabilities-non-current | 393,843 | 395,629 | 50,463 | |||
| Other non-current liabilities | 21,906 | 34,070 | 4,346 | |||
| Total non-current liabilities | 415,749 | 429,699 | 54,809 | |||
| Total liabilities | 188,115,754 | 204,826,605 | 26,125,842 | |||
| SHAREHOLDERS’ EQUITY | ||||||
| Class A ordinary shares | 73 | 61 | 8 | |||
| Class B ordinary shares | 27 | 27 | 3 | |||
| Additional paid-in capital | 19,158,175 | 14,048,566 | 1,791,909 | |||
| Treasury Stock | (5,199,257 | ) | - | - | ||
| Accumulated other comprehensive income | 51,503 | 303,508 | 38,713 | |||
| Retained earnings | 25,990,667 | 26,841,217 | 3,423,624 | |||
| Total shareholders' equity | 40,001,188 | 41,193,379 | 5,254,257 | |||
| Non-controlling interests | 319,934 | 296,687 | 37,844 | |||
| Total equity | 40,321,122 | 41,490,066 | 5,292,101 | |||
| Total liabilities and equity | 228,436,876 | 246,316,671 | 31,417,943 | |||
| FUTU HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands, except for share and per share data) | ||||||||
| For the Three Months Ended | ||||||||
| March 31, 2025 | March 31, 2026 | March 31, 2026 | ||||||
| HK$ | HK$ | US$ | ||||||
| Revenues | ||||||||
| Brokerage commission and handling charge income | 2,310,220 | 2,641,434 | 336,918 | |||||
| Interest income | 2,070,469 | 2,650,234 | 338,040 | |||||
| Other income | 313,948 | 564,322 | 71,980 | |||||
| Total revenues | 4,694,637 | 5,855,990 | 746,938 | |||||
| Costs | ||||||||
| Brokerage commission and handling charge expenses | (143,505 | ) | (164,474 | ) | (20,979 | ) | ||
| Interest expenses | (469,333 | ) | (414,687 | ) | (52,894 | ) | ||
| Processing and servicing costs | (136,115 | ) | (170,120 | ) | (21,699 | ) | ||
| Total costs | (748,953 | ) | (749,281 | ) | (95,572 | ) | ||
| Total gross profit | 3,945,684 | 5,106,709 | 651,366 | |||||
| Operating expenses | ||||||||
| Research and development expenses | (385,979 | ) | (478,880 | ) | (61,082 | ) | ||
| Selling and marketing expenses | (459,202 | ) | (556,751 | ) | (71,014 | ) | ||
| General and administrative expenses | (415,245 | ) | (540,917 | ) | (68,995 | ) | ||
| Total operating expenses | (1,260,426 | ) | (1,576,548 | ) | (201,091 | ) | ||
| Income from Operations | 2,685,258 | 3,530,161 | 450,275 | |||||
| Others, net | (20,598 | ) | (2,133,424 | ) | (272,120 | ) | ||
| Income before income tax expense and share of (loss)/gain from equity method investments | 2,664,660 | 1,396,737 | 178,155 | |||||
| Income tax expense | (490,959 | ) | (606,984 | ) | (77,421 | ) | ||
| Share of (loss)/gain from equity method investments | (30,997 | ) | 41,232 | 5,259 | ||||
| Net income | 2,142,704 | 830,985 | 105,993 | |||||
| Attributable to: | ||||||||
| Ordinary shareholders of the Company | 2,145,323 | 850,550 | 108,489 | |||||
| Non-controlling interests | (2,619 | ) | (19,565 | ) | (2,496 | ) | ||
| 2,142,704 | 830,985 | 105,993 | ||||||
| Net income per share attributable to ordinary shareholders of the Company | ||||||||
| Basic | 1.93 | 0.76 | 0.10 | |||||
| Diluted | 1.91 | 0.75 | 0.10 | |||||
| Net income per ADS | ||||||||
| Basic | 15.44 | 6.08 | 0.78 | |||||
| Diluted | 15.28 | 6.00 | 0.77 | |||||
| Weighted average number of ordinary shares used in computing net income per share | ||||||||
| Basic | 1,113,426,758 | 1,121,453,268 | 1,121,453,268 | |||||
| Diluted | 1,126,352,076 | 1,133,330,016 | 1,133,330,016 | |||||
| Net income | 2,142,704 | 830,985 | 105,993 | |||||
| Other comprehensive income/(loss), net of tax | ||||||||
| Changes in the fair value of financial assets | - | (12,158 | ) | (1,551 | ) | |||
| Foreign currency translation adjustment | 65,215 | 260,481 | 33,225 | |||||
| Total comprehensive income | 2,207,919 | 1,079,308 | 137,667 | |||||
| Attributable to: | ||||||||
| Ordinary shareholders of the Company | 2,210,552 | 1,102,555 | 140,633 | |||||
| Non-controlling interests | (2,633 | ) | (23,247 | ) | (2,966 | ) | ||
| 2,207,919 | 1,079,308 | 137,667 | ||||||
| FUTU HOLDINGS LIMITED UNAUDITED RECONCILIATIONS OF NON-GAAP AND GAAP RESULTS (In thousands) | |||||
| For the Three Months Ended | |||||
| March 31, 2025 | March 31, 2026 | March 31, 2026 | |||
| HK$ | HK$ | US$ | |||
| Net income | 2,142,704 | 830,985 | 105,993 | ||
| Add: Share-based compensation expenses | 74,199 | 88,546 | 11,294 | ||
| Adjusted net income | 2,216,903 | 919,531 | 117,287 | ||
Non-GAAP to GAAP reconciling items have no income tax effect.
