Futu Holdings (FUTU) reported stronger second-quarter results as trading activity and client assets expanded across major markets. Net income rose 41.6% year over year to HK$3.64 billion during the quarter. FUTU stock climbed 2.74% to $112.42 after recovering from an early drop below $110. The Nasdaq-listed operator of the Futubull and Moomoo trading platforms serves retail investors across Hong Kong, the United States, Singapore, Malaysia, and other international markets, making its results a useful gauge of retail trading demand in those regions.

Futu Holdings Limited, FUTU

Futu Holdings Profit Rises as Revenue Reaches HK$7.2 Billion

Futu generated HK$7.20 billion in total revenue during the second quarter, up 35.6% from a year earlier. Brokerage commission and handling income increased 30.3% to HK$3.36 billion, supported by higher trading activity despite a lower blended commission rate. Together with interest income, commissions form Futu's two largest revenue lines.

Interest income rose 36.5% from the prior year to HK$3.12 billion, helped by higher margin financing balances and bank deposits during the quarter. Other income also climbed 61.2% to HK$715.8 million.

Gross profit reached HK$6.21 billion, a 33.9% increase from the comparable 2025 period. Gross margin, however, declined to 86.3% from 87.4% a year earlier. Operating income increased 33.5% to HK$4.46 billion despite higher expenses.

Trading Volume Hits Record HK$6.42 Trillion

Total trading volume increased 78.8% year over year to a record HK$6.42 trillion. U.S. stock trading accounted for HK$5.02 trillion of the quarterly total. Strong activity in semiconductor and artificial intelligence-related companies supported the increase in U.S. market trading.

Hong Kong stock trading volume reached HK$1.17 trillion during the quarter. Trading activity benefited from semiconductor companies, internet stocks, and newly listed artificial intelligence businesses. Total trading volume also rose 54.6% from the previous quarter. Because Futu earns commissions on client trades, swings in market turnover feed directly into its brokerage revenue.

Margin financing and securities lending balances increased 85.1% year over year to HK$95.1 billion. The balance was also up 30.5% from the previous quarter. Strong Hong Kong IPO activity and higher leverage use supported the expansion.

Funded Accounts and Client Assets Continue Expanding

Futu ended June with 3.84 million funded accounts, a 33.6% increase year over year. The company added about 252,000 net new funded accounts during the quarter. Malaysia generated the strongest additions, while Hong Kong and Singapore also contributed to growth. The geographic mix reflects Futu's push beyond its traditional Hong Kong base into Southeast Asian markets such as Malaysia and Singapore.

Total brokerage accounts rose 26.6% year over year to 6.64 million. Total users increased 15.2% to 31.3 million by June 30. The figures indicate continued expansion across Futu's international brokerage operations.

Client assets increased 43.6% from a year earlier to HK$1.40 trillion at quarter-end. Wealth management assets reached HK$180.2 billion, up 10.4% year over year. Futu expanded its investment offerings across Hong Kong and Singapore during the period.

Futu Expands Products Across International Markets

Futu continued to add financial products as it broadened its presence outside established markets. Moomoo, the company's international-facing platform, launched prediction markets in the United States in June, adding a newer product category to its lineup. The company also secured approval for virtual asset financing services in Hong Kong.

Futu obtained a Type A license from Thailand's securities regulator in July. The approval positions the company to launch Moomoo Thailand and expand further across Southeast Asia. These initiatives follow earlier expansion in markets including Malaysia and Singapore. The Thailand launch and the Hong Kong virtual asset financing rollout are the company's next expansion milestones to watch in coming quarters.

The company also continued returning capital through its existing share repurchase program. Futu had repurchased about 3.8 million ADSs, or American depositary shares, by June 30 for roughly $418 million. Diluted net income per ADS increased to HK$26.08 from HK$18.24 a year earlier.