Futu Holdings (FUTU)
NASDAQ:FUTU
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Futu Holdings
(NASDAQ:FUTU)
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Rating:72Outperform
Price Target:
$116.00
▼(-30.51% Downside)
Action:Reiterated
Date:05/29/26
The score is driven primarily by strong underlying financial performance (high margins, strong recent growth and ROE) and supportive valuation (low P/E with a dividend). These positives are tempered by weak technicals (price below key moving averages with negative MACD) and earnings-call risk factors, led by the large regulatory penalty and continued Mainland China regulatory exposure despite reiterated guidance and strong operating momentum.
Positive Factors
High margins & revenue growth
Futu’s exceptionally high gross and net margins and recent strong revenue growth indicate durable earnings power from its digital brokerage model. Sustained operating leverage and low incremental costs per user support long‑term cash generation and profitability even as the business scales internationally.
Negative Factors
Material regulatory penalty & China exposure
A ~RMB1.85B regulatory penalty and ongoing CSRC scrutiny create sustained legal and compliance risk. Mainland China clients account for a meaningful share of assets and roughly 20% of revenue, so regulatory actions or restrictions could structurally curtail revenue and complicate operations over many quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins & revenue growth
Futu’s exceptionally high gross and net margins and recent strong revenue growth indicate durable earnings power from its digital brokerage model. Sustained operating leverage and low incremental costs per user support long‑term cash generation and profitability even as the business scales internationally.
Read all positive factors
Futu Holdings (FUTU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.49B
Dividend YieldN/A
Average Volume (3M)5.31M
Price to Earnings (P/E)10.5
Beta (1Y)1.43
Revenue Growth52.73%
EPS Growth52.01%
CountryUS
Employees3,343
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)56.70
Shares Outstanding95,750,480
10 Day Avg. Volume12,223,822
30 Day Avg. Volume5,308,218
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)4.45
Price to Sales (P/S)7.81
P/FCF Ratio4.37
Enterprise Value/Market Cap8.88
Enterprise Value/Revenue6.70
Enterprise Value/Gross Profit7.96
Enterprise Value/Ebitda12.01
Forecast
1Y Price Target
$172.90Price Target Upside3.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)76.43
Revenue Forecast (FY)$23.81B
Futu Holdings Business Overview & Revenue Model
Company Description
Futu Holdings Limited provides digitalized securities brokerage and wealth management product distribution service in Hong Kong and internationally. It offers online financial services, including securities and derivative trades brokerage, margin ...
How the Company Makes Money
Futu primarily generates revenue from (1) brokerage-related income and (2) interest-related income, supplemented by other service fees tied to its platform and wealth products.
1) Brokerage-related income (commissions and fees): Futu earns transa...
Futu Holdings Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Neutral
The call presented a mix of strong operational momentum (robust account growth, record trading volumes, double-digit revenue and gross profit growth YoY, international expansion, new licenses and product launches, and active buybacks) alongside material near-term challenges — most notably the RMB 1.85 billion regulatory penalty that sharply reduced reported net income and continued regulatory scrutiny related to Mainland China clients. Management emphasized diversified international growth, intact credit facilities, and confidence in long-term prospects, but Q1 earnings were materially impacted by the one-off regulatory adjustment and some sequential softness in interest and brokerage income and higher operating expenses.Positive Updates
Strong Client Growth
Added 225,000 net new funded accounts in Q1; total funded accounts reached 3.59 million, up 34% year-over-year and 7% quarter-over-quarter. Malaysia led client additions for the quarter; Singapore delivered double-digit sequential growth in net new funded accounts.
Negative Updates
Regulatory Administrative Penalty Recognized
Received an Administrative Penalty Pre-Notification Letter from CSRC Shenzhen Bureau for ~RMB 1.85 billion, fully reflected in Q1 statements as an adjusted subsequent event. Net income fell to HKD 831 million, down 61% YoY and 75% QoQ; net income margin at 14.2%. Management stated that, prior to this adjustment, net income would have been HKD 2.9 billion (up 36% YoY) with a 49.9% margin.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Client Growth
Added 225,000 net new funded accounts in Q1; total funded accounts reached 3.59 million, up 34% year-over-year and 7% quarter-over-quarter. Malaysia led client additions for the quarter; Singapore delivered double-digit sequential growth in net new funded accounts.
Read all positive updates
Company Guidance
Management reiterated its full‑year target of 800,000 net new funded accounts and said last Friday’s regulatory update should not materially affect that guidance; the company added 225,000 net new funded accounts in Q1 to reach 3.59 million total (up 34% YoY, 7% QoQ) and expects Q2 net new funded accounts to be roughly stable sequentially. Based on the current Q2 run‑rate, management sees potential for double‑digit sequential growth in AUM and trading volume while interest income is expected to remain broadly stable QoQ; margin financing and securities lending balances rose 8% QoQ to HKD 72.9 billion and period‑end wealth client assets were HKD 178.4 billion (up 28% YoY). They also noted Mainland China funded accounts were ~13% of Q2 funded accounts (≈17% of client assets, ≈20% of revenue), Malaysia is expected to breakeven within 6–12 months, credit facilities remain intact, and the company has repurchased ~USD 418 million of ADSs under a USD 800 million program.Futu Holdings Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.87B | 22.81B | 13.59B | 10.01B | 7.61B | 7.12B |
| Gross Profit | 15.05B | 19.87B | 11.14B | 8.47B | 6.62B | 5.91B |
| EBITDA | 9.98B | 13.64B | 6.80B | 5.18B | 3.72B | 3.30B |
| Net Income | 7.91B | 11.32B | 5.44B | 4.28B | 2.93B | 2.81B |
Balance Sheet | ||||||
| Total Assets | 198.40B | 228.42B | 158.76B | 97.14B | 94.50B | 101.54B |
| Cash, Cash Equivalents and Short-Term Investments | 9.38B | 130.54B | 14.42B | 8.19B | 5.74B | 5.83B |
| Total Debt | 9.79B | 17.68B | 8.55B | 5.89B | 2.69B | 21.91B |
| Total Liabilities | 165.12B | 188.10B | 130.75B | 72.56B | 73.64B | 80.55B |
| Stockholders Equity | 33.29B | 40.00B | 28.01B | 24.57B | 20.86B | 20.99B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 40.73B | 30.83B | -6.42B | 3.38B | 5.94B |
| Operating Cash Flow | 0.00 | 40.79B | 31.00B | -6.34B | 3.47B | 6.01B |
| Investing Cash Flow | 0.00 | -1.78B | 103.93M | -2.44B | 93.86M | -963.57M |
| Financing Cash Flow | 0.00 | 4.30B | 70.85M | 2.31B | -7.01B | 10.55B |
Futu Holdings Technical Analysis
Negative
166.93
Price Trends
139.08
Negative
145.64
Negative
158.96
Negative
Market Momentum
-13.51
Positive
29.61
Positive
40.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FUTU, the sentiment is Negative. The current price of 166.93 is above the 20-day moving average (MA) of 120.18, above the 50-day MA of 139.08, and above the 200-day MA of 158.96, indicating a bearish trend. The MACD of -13.51 indicates Positive momentum. The RSI at 29.61 is Positive, neither overbought nor oversold. The STOCH value of 40.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $23.70B | 24.60 | 13.64% | 0.45% | 18.26% | 66.10% | |
74 Outperform | $28.56B | 13.75 | 17.21% | 1.26% | 5.83% | 1.44% | |
72 Outperform | $13.49B | 10.47 | 26.62% | ― | 52.73% | 52.01% | |
70 Outperform | $150.59B | 16.31 | 19.08% | 1.07% | 8.11% | 53.31% | |
68 Neutral | $883.79M | 7.30 | 21.89% | ― | 48.34% | 37.83% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $22.61B | 25.95 | 17.04% | 0.32% | 38.08% | -22.75% |
* Financial Sector Average
FUTU
Futu Holdings
95.78
-10.13
-9.57%
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291.84
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Raymond James Financial
150.51
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SCHW
Charles Schwab
88.00
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2.15%
TIGR
Up Fintech Holding
4.76
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TW
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100.60
-38.62
-27.74%
Futu Holdings Corporate Events
Futu’s Q1 2026 Profit Hit by China Regulatory Penalty Despite Strong Growth
May 28, 2026
Futu reported strong operating metrics for the quarter ended March 31, 2026, with funded accounts up 34.3% year-over-year to 3.59 million, total users reaching 30.2 million and client assets climbing 47.2% to HK$1.22 trillion, underpinned by recor...
Futu Faces Potential RMB1.85 Billion CSRC Penalty Over Mainland China Operations
May 22, 2026
On May 22, 2026, Futu Holdings said it has received a Notice of Investigation and an Administrative Penalty Pre-Notification Letter from the China Securities Regulatory Commission related to its mainland China operations. Regulators allege that ce...
Futu Holdings Declares US$365 Million Cash Dividend for April 2026
Apr 2, 2026
On April 2, 2026, Futu Holdings announced that its board of directors approved a cash dividend of US$0.325 per ordinary share, equivalent to US$2.6 per American Depositary Share, payable in U.S. dollars to shareholders of record as of April 16, 20...
Futu Holdings Posts Surging 2025 Profit as Client Assets and Trading Volumes Hit Records
Mar 12, 2026
Futu Holdings reported strong operational and financial performance for the fourth quarter and full year 2025, with results released on March 12, 2026. Funded accounts grew 39.6% year-over-year to 3.37 million, total users reached 29.2 million, an...
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.