Futu Q2 Earnings Recap: Rating Upgrade

Futu Holdings reported Q2 earnings, with a 24% YoY increase in revenue to $128.8m. The company's net income rose to $30.6m, up 26% YoY. The tech-driven investment firm's share price has ranged since initiation of coverage four years ago. Despite developing a social community, NiuNiu, and offering services through Futubull and Moomoo, peers like Robinhood have outperformed. The company's revenue growth and net income increase justify a rating upgrade.

Futu Holdings Ltd. (Nasdaq: FUTU), a leading global tech-driven online brokerage and wealth management platform, reported its Q2 2025 earnings on August 20, 2025. The company's revenue increased by 69.7% year-over-year (YoY) to US$676.6 million, while its non-GAAP adjusted net income rose by 105.2% YoY to US$338.8 million [1].

The company's total trading volume across its platforms grew by 12% quarter-over-quarter (QoQ) and 121% YoY to US$457 billion, with US equities hitting US$343 billion, an all-time high. Singaporean, Australian, Japanese, and Canadian equities also recorded historical highs in quarterly trading volume [1].

Futu's user base expanded significantly, with 27.12 million registered users, 5.24 million brokerage accounts, and 2.88 million funded accounts as of June 30, 2025. The company's total client assets surged to US$124 billion, demonstrating an accelerated growth of 17% QoQ and 68% YoY. Notably, the Hong Kong market reported strong net inflows, while the Singapore market posted robust user growth, with one in every two Singapore residents now a moomoo user [1].

In the second quarter, cryptocurrency assets grew significantly by 43% QoQ across the Company’s platforms. Futu has placed cryptocurrency expansion at the forefront of its business strategy, introducing Moomoo Crypto to US investors and exploring the rollout of cryptocurrency trading services across its global markets [1].

The company also made significant strides in artificial intelligence (AI) applications. It introduced its self-developed blockbuster feature, Moomoo AI, an AI chatbot that empowers users worldwide to make smarter investment decisions with cutting-edge technologies. The company continues to upgrade its platform features and enrich its product selections to meet various investor demands [1].

Futu's localization strategy also drove long-term market growth. The company introduced educational sections within its in-app community, partnered with various organizations to promote financial literacy, and secured several prestigious awards in global markets [1].

Despite the strong Q2 performance, Futu's share price has ranged since the initiation of coverage four years ago. However, the company's revenue growth and net income increase justify a rating upgrade [2].

References:
[1] https://digitalmore.co/moomoos-parent-company-futu-releases-q2-2025-results-net-income-up-105-yoy-to-us339-million/
[2] https://laotiantimes.com/2025/08/20/moomoos-parent-company-futu-releases-q2-2025-results-net-income-up-105-yoy-to-us339-million/