Futu Holdings' Q2 2025 Earnings Call: Unraveling Contradictions in Crypto Strategy, Client Acquisition, and Interest Income Trends

Crypto trading business strategy, crypto asset holding and trading growth, crypto asset growth and strategy, client acquisition cost trends, interest income trends are the key contradictions discussed in Futu Holdings Limited's latest 2025Q2 earnings call.



International Expansion and Client Growth:
- As of the end of Q2 2025, total funded accounts reached approximately 2.9 million, representing a 41% increase year-over-year and an 8% rise quarter-over-quarter.
- This growth is attributed to the company's expanding international footprint, with over 50% of funded accounts from clients outside of Futu Securities Hong Kong, driven by strong performance in markets like Singapore, the U.S., Malaysia, Japan, and Australia.

Cryptocurrency Trading and Product Innovation:
- In Q2 2025, Futu launched cryptocurrency trading in most U.S. states, contributing to a robust growth in trading volume.
- The momentum in cryptocurrency trading is driven by increased adoption and engagement from clients, with the asset value of cryptocurrencies reaching HKD 4 billion, up 40% sequentially.

Financial Performance and Interest Income:
- Total revenue for Q2 2025 was HKD 5.3 billion, up 70% year-over-year, with interest income contributing HKD 2.3 billion, an increase of 44% year-over-year.
- The growth in interest income was driven by higher income from security borrowing and lending, bank deposits, and margin financing, despite a decline in HIBOR rates, due to increased demand for short positions and client cash positions.

Regional Client Acquisition and Market Strategy:
- In the second quarter, Hong Kong and Malaysia together accounted for over 50% of new client acquisitions, with the U.S. and Singapore also contributing significantly.
- The company remains confident in achieving its full-year target of 800,000 new funded accounts, despite potential regulations impacting Mainland Chinese clients in Hong Kong, as client acquisition remains healthy across regions.