Key Takeaways for Futu Holdings Stock as of August 2026
- Record Trading Quarter: Futu’s Q2 2026 revenue hit HKD7.2B, up 36% YoY, while net income climbed 42% YoY to HKD3.6B on trading volume that set a new record at HKD6.42T, up 78.8% YoY.
- CAC Guidance Held: Client acquisition cost rose to ~HKD2,600 in Q2, still inside management’s full-year guidance range of HKD2,500 to HKD3,000, though CAC trended higher again in July.
- Margin Expansion: Net income margin widened to 50.6% from 48.4% a year earlier, even as gross margin slipped to 86.3% from 87.4% on faster-growing but lower-margin U.S. options and equities flow.
- Regulatory Outflows Absorbed: CEO Leaf Li disclosed mid-single-digit percentage client asset outflows tied to new Mainland rules issued May 22, split roughly evenly between Mainland and Hong Kong clients.
Futu Holdings stock just posted its strongest quarter on record, and the regulatory overhang investors feared turned out to cost a mid-single-digit slice of assets rather than the business itself. See the full financials on TIKR for free →
Futu Holdings Stock Posts a Record Quarter While Absorbing a Regulatory Hit
Futu Holdings Limited (FUTU) reported second quarter 2026 revenue of HKD 7.2 billion, up 36% from HKD 5.3 billion a year earlier, on trading volume that hit a record HKD 6.42 trillion, up 78.8% year over year and 54.6% quarter over quarter. Net income rose 42% year over year to HKD 3.6 billion, and net income margin expanded to 50.6% from 48.4% in the same period last year. Total funded accounts reached approximately 3.84 million, up 33.6% year over year, after the company added 252,000 net new funded accounts during the quarter.
That growth ran directly into a new regulatory backdrop. Mainland Chinese authorities issued rules on May 22 tightening how domestic investors access offshore brokers, and Futu spent the quarter absorbing the fallout. CEO Leaf Li addressed the impact directly on the Q2 2026 earnings call: “As for the cumulative asset outflows since the new regulations, the outflows were about mid-single-digit percentage of our total client assets. And we believe the bulk of the impact has already been absorbed in Q2.” The outflows split almost evenly between Mainland clients complying with app-level restrictions and Hong Kong clients reacting to risk-off sentiment right after the announcement, and Hong Kong client retention still held above 98% for the quarter.
The offshore business picked up the slack. Total client assets reached HKD 1.4 trillion, up 43.6% year over year, driven mostly by rising portfolio values rather than fresh deposits, and margin financing and securities lending balances jumped 31% quarter over quarter to HKD 95.1 billion as clients leaned into an active Hong Kong IPO calendar. U.S. stock trading volume alone grew 67.2% sequentially to HKD 5.02 trillion, concentrated in AI-related names, while Malaysia led every market in net new funded accounts for a third straight quarter and Singapore crossed 2 million registered users.
Costs grew alongside the volume. Total costs rose 47% year over year to HKD 985 million, pulling gross margin down to 86.3% from 87.4%, and operating expenses climbed 35% to HKD 1.8 billion as selling and marketing spend jumped 53% to chase the new account wave. Client acquisition cost rose to roughly HKD 2,600, still inside the company’s full-year guidance band of HKD 2,500 to HKD 3,000, but management flagged that CAC trended higher again in July.
That July softness carried into the outlook. Management described Q3 quarter-to-date net new funded accounts as moderating and trading volume as down modestly sequentially, a marked change of pace from the record print investors just saw. Futu’s new U.S. prediction markets business, launched in June under a CFTC license, already cleared $200 million in event contract volume within its first month, giving the company a fresh growth lever just as its core China-linked franchise adjusts to a tighter regulatory perimeter.
Futu just delivered its best quarter on record while working through a regulatory shock that only cost it a mid-single-digit slice of client assets. Track the next quarter’s numbers on TIKR for free →
TIKR Values Futu Holdings Stock at $135 by 2030
TIKR’s mid-case model values Futu Holdings stock at $135 by December 2030, implying a 9% total return from the current price of $124, or 2% annualized over 4.4 years.
That return sits well below what the stock has already delivered over the past three and five years, a signal that the model sees Futu Holdings stock’s easiest gains as largely realized after the run that pushed shares from roughly $49 three years ago to today’s price.
The model’s modest forward return reflects a business the market has already rewarded heavily for its growth, leaving less room for multiple expansion even as fundamentals stay strong. Q2’s 36% revenue growth and 42% net income growth support the case that Futu Holdings can keep compounding earnings, but the mid-single-digit client asset outflows tied to the May regulatory rules and the softer Q3 quarter-to-date trends management described both temper how much further the stock can re-rate from here. The target assumes Futu holds its Malaysia and Hong Kong account growth engines steady while its Mainland exposure keeps normalizing at a slower, post-regulation pace.
Futu Holdings stock trades near its TIKR mid-case target after a record quarter, and the model’s 9% return leaves little cushion for a fresh regulatory surprise. Compare the full valuation scenarios on TIKR for free →
Should You Invest in Futu Holdings Limited?
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Pull up Futu Holdings Limited stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
