Q1 2026 Futu Holdings Ltd Earnings Call Transcript
Key Points
- Futu Holdings Ltd (FUTU) added 225,000 net new funded accounts in Q1 2026, bringing total funded accounts to 3.59 million, a 34% year-over-year increase.
- Singapore showed double-digit sequential growth in net new funding accounts, with a CAGR of over 50% in the past three years.
- Malaysia led in client addition due to effective marketing initiatives and strong IPO product capability, with profitability expected to improve and achieve breakeven within 6 to 12 months.
- Total revenue increased by 25% year-over-year to HKD5.9 billion, driven by higher interest income from margin financing and bank deposits.
- Futu Holdings Ltd (FUTU) has a strong presence in Hong Kong and Singapore, with plans to expand into more international markets, enhancing business resilience and growth potential.
- Mark-to-market losses in client equity holdings had a substantial negative impact, affecting net asset inflow.
- Interest income declined 13% quarter-over-quarter due to lower interest income from security borrowing and lending business.
- Operating expenses increased by 25% year-over-year, driven by higher R&D and customer acquisition costs.
- Net income decreased by 61% year-over-year and 75% quarter-over-quarter to HKD831 million, impacted by an administrative penalty from the China Securities Regulatory Commission.
- Regulatory updates from CSRC and SFC created short-term disruptions, with Mainland China accounts representing a significant portion of revenue and client assets.
Hello, ladies and gentlemen. Welcome to Futu Holdings first quarter 2026 earnings conference call (Operator Instructions)
Today's conference is being recorded. I would now like to turn the conference over to your host for today's conference call, Alan Cui, Investor Relations Manager at Futu. Go ahead, sir.
Thank you for joining us today to discuss our first quarter 2026 earnings results. Joining on the call today are Mr. Leaf Li, Chairman and Chief Executive Officer; Arthur Chen, Chief Financial Officer; and Robin Xu, Senior Vice President.
As a reminder, today's call may include forward-looking statements, which represent the company's belief regarding future events, which, by their nature, are not certain and are outside of the company's control. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. For more
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