Q2 2026 UP Fintech Holding Limited Earnings Call Transcript
Key Points
- Total revenue reached an all-time high of USD182 million, up 31.4% year-over-year and 17.7% sequentially.
- Returned to profitability with GAAP net income of USD39.4 million and non-GAAP net income of USD42.8 million, up about 20% quarter-over-quarter excluding one-off items.
- Client assets grew across all markets, with strong double-digit growth in Hong Kong (up nearly 30% QoQ), Australia/New Zealand (up over 30% QoQ), and the US (up nearly 50% QoQ).
- New funded accounts increased 12.7% quarter-over-quarter, with high-quality users averaging net asset inflows of over USD25,000 per account in Q3-to-date.
- Investment banking momentum continued with underwriting 14 Hong Kong IPOs and 4 US IPOs, plus steady growth in ESOP business with 50 new clients.
- Regulatory impact from May 22 has largely been contained, with Mainland retail users now accounting for under 10% of total client assets and no further policy changes received.
- Cash equity take rate dropped significantly from 5.9 bps to 3.6 bps due to higher trading volume from zero-commission US clients and high-priced AI/semi stocks.
- Operating costs increased 47% year-over-year, driven by higher employee compensation (including severance), marketing expenses (up 87% YoY), and communication/market data fees.
- Effective tax rate was elevated at 28% due to a noncash deferred tax asset write-down and a prudence-based treatment of the one-off penalty as nondeductible.
- Other net loss of over USD2 million was recorded due to FX losses from RMB appreciation against the US dollar.
- Q3-to-date trading volume and commissions are running slightly below Q2 levels due to a high base and market pullback.
- Marketing expenses rose significantly, with average CAC expected to increase to USD450-550 in the second half, potentially pressuring margins.
Ladies and gentlemen, thank you for standing by, and welcome to UP FinTech Holdings Limited second quarter 2036 earnings conference call. (Operator Instructions) I must advise you that this conference is being recorded today, August 26, 2026.
I would now like to hand the conference over to your speaker today, Mr. Aron Lee, the Head of Investor Relations. Thank you. Please go ahead.
Thank you, operator. Hello, everyone, and thank you for joining us for the call today. UP Fintech Holding Limited Second Quarter 2026 earnings release was distributed earlier today, and this is available on our IR website at ir.itiger.com as well as GlobeNewswire services.
On the call today from UP Fintech are Mr. Wu Tianhua, Chairman and CEO; Mr. John Zeng, our CFO, and Mr. Wang Lei, CEO of US Tiger Securities.
Mr. Wu will give an overview of our business operations and discuss corporate highlights. Mr. Zeng will then discuss our financial results. They will both be available to answer your
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