Futu Q1 Revenue Rises 25% to HKD5.9 Billion While Net Income Drops 61%
FUTU•Futu Holdings reported Q1 revenue of HKD5.9 billion, up 25% year-over-year, and gross profit rose 29% to HKD5.1 billion, lifting gross margin to 87.2%. Net income fell 61% to HKD831 million due to mark-to-market losses and a regulatory penalty, with USD418 million of ADS repurchased and 225,000 net new funded accounts added.
1. Q1 Financial Highlights
Futu Holdings posted total revenue of HKD5.9 billion in Q1 2026, a 25% year-over-year increase supported by HKD2.6 billion in brokerage commission income (+14%) and HKD2.7 billion in interest income (+28%). Gross profit climbed 29% to HKD5.1 billion, with margin expanding to 87.2%.
2. Profitability Drivers and Challenges
Operating expenses rose 25% to HKD1.6 billion, reflecting investments in R&D and customer acquisition. Net income declined 61% to HKD831 million, impacted by mark-to-market losses on client equity holdings and an administrative penalty from the China Securities Regulatory Commission.
3. Client Growth and Account Metrics
Futu added 225,000 net new funded accounts, a 34% year-over-year increase, bringing the total to 3.59 million. Singapore delivered double-digit sequential growth and Malaysia's marketing and IPO initiatives led client additions, with breakeven expected within 6–12 months in Malaysia.
4. Regulatory Impact and Share Repurchase
The firm repurchased USD418 million of ADS and paused account openings for Mainland Chinese ID holders to comply with new CSRC and SFC rules, which cover 13% of funded accounts and generate 20% of revenue, without altering full-year net new account guidance.
