Futu Holdings Ltd - ADR

Strong Client Acquisition Growth: Futu added over 950,000 net funded accounts in 2025, surpassing its full-year guidance by 19%. Total funded accounts reached approximately 3.4 million, marking a 40% year-over-year increase. The company aims to add 800,000 net new funded accounts in 2026, expecting continued growth in established markets like Hong Kong and Malaysia.

Robust Financial Performance: In Q4 2025, total revenues surged to HKD 6.4 billion, up 45% year-over-year, with full-year revenue growing by 68% to HKD 22.8 billion. Net income rose by 80% year-over-year to HKD 3.4 billion, benefiting from strong brokerage income and interest revenue driven by higher trading volumes and margin financing.

Challenges in Market Conditions: The fourth quarter experienced a downturn in client growth in Hong Kong, attributed to a significant pullback in the local stock market. Trading activity showed a decline in Hong Kong stock trading volume by 31% quarter-over-quarter, with investor sentiment affected by volatility in Chinese technology stocks.