Futu Holdings (FUTU) AI Stock Analysis

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Futu Holdings

(NASDAQ:FUTU)

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Rating:77Outperform

Price Target:$112.00▲(9.15% Upside)

Action:reiterated

Date:08/20/26

The score is driven primarily by strong financial performance (rapid recent growth with exceptional margins and improving ROE) and supportive valuation (moderate P/E with a ~2.4% dividend yield). Offsetting factors are a more mixed technical backdrop (below longer-term moving averages) and earnings-call risks pointing to near-term moderation and higher cost/CAC pressures alongside regulatory-related outflows.

Positive Factors

Growth and ProfitabilityRapid revenue and earnings growth combined with exceptionally high margins demonstrate strong operating leverage in Futu’s digital brokerage model. This profitability provides resources to fund technology, marketing, regulatory expansion, and new products while supporting durable earnings capacity.

Negative Factors

Regulatory Asset OutflowsRegulatory restrictions can impair customer acquisition, reduce assets available for trading and wealth products, and raise compliance or platform-adjustment costs. Because the changes affected both Mainland and Hong Kong flows, they represent a meaningful structural risk to scale.

Futu Holdings (FUTU) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $14.39B
Dividend Yield: 2.53%
Average Volume (3M): 1.15M
Price to Earnings (P/E): 10.1
Beta (1Y): 1.45
Revenue Growth: 44.47%
EPS Growth: 39.64%
Country: US
Employees: 3,540
Sector: Financial
Sector Strength: 68
Industry: Financial - Capital Markets

Futu Holdings Business Overview & Revenue Model

Company Description

Futu Holdings Limited is a global provider of digital brokerage services for securities and the distribution of wealth management products, with operations based in Hong Kong. The company's primary offerings include a full spectrum of online financia...

How the Company Makes Money

Futu makes money primarily by monetizing activity on its brokerage and wealth-management platforms through a mix of transaction-based and interest-based revenue streams. A core driver is brokerage commissions and service fees generated when clients p...

Futu Holdings Earnings Call Summary

Earnings Call Date:Aug 19, 2026(Q2-2026)|% Change Since:-6.22%|Next Earnings Date:Nov 23, 2026

Earnings Call SentimentPositive

The call presents strong top-line and operating performance—record trading volumes, robust account and asset growth, solid revenue and net income expansion, and strategic product/regulatory milestones (virtual asset financing, U.S. prediction markets, ASEAN licensing). Offsetting risks include rising costs (notably S&M and processing), higher interest and commission expenses, a modest compression in commission rates/gross margin, a Q2–Q3 moderation in new account additions and trading activity, and mid-single-digit client asset outflows tied to recent Mainland regulations. Management highlights overseas expansion momentum and improving profitability in key markets (Singapore breakeven; Malaysia recently breakeven), while noting CAC pressures and near-term sensitivity to market volatility.

Positive Updates

Robust Account Growth

252,000 net new funded accounts in Q2 (+23.7% YoY, +12.2% QoQ); total funded accounts ~3.84 million (+33.6% YoY, +7.0% QoQ). Malaysia led net new funded accounts for the third consecutive quarter; Singapore registered users surpassed 2 million.

Negative Updates

Rising Operating and Service Costs

Total costs were HKD 985 million (+47% YoY). Operating expenses totaled HKD 1.8 billion (+35% YoY, +11% QoQ), including R&D HKD 501 million (+13% YoY), selling & marketing HKD 657 million (+53% YoY), and G&A HKD 593 million (+40% YoY). Processing & servicing costs jumped 70% YoY to HKD 225 million.

Company Guidance

Management provided limited formal forward guidance but reiterated a full‑year blended CAC range of HKD 2,500–3,000 (Q2 blended CAC ≈ HKD 2,600 and higher in July) and said Q3‑to‑date trends are modestly softer with net funded‑account additions moderating versus Q2 (Q2 net adds 252,000; period‑end funded accounts 3.84 million), trading volume down modestly sequentially from Q2’s record HKD 6.42 trillion (U.S. HKD 5.02 trillion; Hong Kong HKD 1.17 trillion), and net asset inflows back to normalized levels after cumulative outflows of about mid‑single‑digit percent of total client assets (Q2 client assets HKD 1.4 trillion, +43.6% YoY, +14.5% QoQ); they noted Hong Kong retention >98%, moomoo now ~60% share of funded accounts, merchant financing/securities lending at HKD 95.1 billion, wealth management AUM HKD 180.2 billion, 683 IPO distribution/IR clients, and strong product signals (prediction‑market event contracts >$200 million in the first month); Thailand license secured but launch timing awaits regulator readiness, and the firm is exploring extending unified buying‑power to virtual assets.

Futu Holdings Financial Statement Overview

Summary

Overall financial quality is strong: accelerating revenue growth in the latest year with exceptional profitability (very high gross, EBIT, and net margins) and improving ROE. Offsetting risks are rising absolute debt and historically volatile cash flow (including a materially negative cash flow year in 2023), which reduce confidence in consistency.

Income Statement

92Very Positive

Balance Sheet

78Positive

Cash Flow

71Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.91B	22.81B	13.59B	10.01B	7.61B	7.12B
Gross Profit	23.16B	19.87B	11.14B	8.47B	6.62B	5.91B
EBITDA	16.32B	13.86B	6.80B	5.18B	3.72B	3.30B
Net Income	11.12B	11.32B	5.44B	4.28B	2.93B	2.81B
Balance Sheet
Total Assets	292.64B	228.42B	158.76B	97.14B	94.50B	101.54B
Cash, Cash Equivalents and Short-Term Investments	25.31B	130.54B	14.42B	8.19B	5.74B	5.83B
Total Debt	28.32B	17.68B	8.55B	5.89B	2.69B	21.91B
Total Liabilities	253.43B	188.10B	130.75B	72.56B	73.64B	80.55B
Stockholders Equity	38.88B	40.00B	28.01B	24.57B	20.86B	20.99B
Cash Flow
Free Cash Flow	0	40.73B	30.83B	-6.42B	3.38B	5.94B
Operating Cash Flow	0	40.79B	31.00B	-6.34B	3.47B	6.01B
Investing Cash Flow	0	-1.78B	103.93M	-2.44B	93.86M	-963.57M
Financing Cash Flow	0	4.30B	70.85M	2.31B	-7.01B	10.55B

Futu Holdings Technical Analysis

Technical Analysis SentimentNeutral

Last Price102.61

Price Trends

50DMA111.08Negative

100DMA106.56Negative

200DMA124.01Negative

Market Momentum

MACD-2.60Positive

RSI44.55Neutral

STOCH47.87Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FUTU, the sentiment is Neutral. The current price of 102.61 is below the 20-day moving average (MA) of 105.43, below the 50-day MA of 111.08, and below the 200-day MA of 124.01, indicating a bearish trend. The MACD of -2.60 indicates Positive momentum. The RSI at 44.55 is Neutral, neither overbought nor oversold. The STOCH value of 47.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FUTU.

Futu Holdings Risk Analysis

Futu Holdings disclosed 98 risk factors in its most recent earnings report. Futu Holdings reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Futu Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

FUTU against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TIGR	83Outperform	$703.20M	6.11	13.05%	―	41.46%	-8.31%
FUTU	77Outperform	$14.46B	10.08	28.42%	2.53%	44.47%	39.64%
HOOD	71Outperform	$75.50B	38.95	20.92%	―	21.65%	-11.10%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ETOR	66Neutral	$1.83B	7.50	18.97%	―	9.87%	32.48%
XP	66Neutral	$7.26B	7.78	22.05%	2.61%	16.84%	20.39%
GS	61Neutral	$261.68B	12.72	17.90%	2.01%	11.97%	41.36%

* Financial Sector Average

Performance Comparison

FUTU and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
FUTU	Futu Holdings	102.61	-78.63	-43.38%
GS	Goldman Sachs Group	896.09	123.70	16.02%
TIGR	Up Fintech Holding	3.85	-6.50	-62.80%
XP	Xp Incorporation	14.56	-3.66	-20.08%
HOOD	Robinhood Markets, Inc. Class A	85.68	-41.40	-32.58%
ETOR	Etoro Group Ltd.	22.58	-10.89	-32.54%

Futu Holdings Corporate Events

Futu Posts Record Q2 2026 Trading and Profit as Global Expansion Accelerates

Aug 20, 2026

On August 20, 2026, Futu reported unaudited results for the quarter ended June 30, 2026, highlighting rapid user and asset growth alongside record trading activity. Funded accounts rose 33.6% year-over-year to 3.84 million, total users reached 31.3 m...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 20, 2026

Futu Holdings AI Stock Analysis