EX-99.1 2 tm2615605d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Futu Announces First Quarter 2026 Unaudited Financial Results

 

HONG KONG, May 28, 2026 (GLOBE NEWSWIRE) -- Futu Holdings Limited (“Futu” or the “Company”) (Nasdaq: FUTU), a leading tech-driven online brokerage and wealth management platform, today announced its unaudited financial results for the first quarter ended March 31, 2026.

 

First Quarter 2026 Operational Highlights

 

·Total number of funded accounts1 increased 34.3% year-over-year to 3,590,325 as of March 31, 2026.
·Total number of brokerage accounts2 increased 26.8% year-over-year to 6,284,404 as of March 31, 2026.
·Total number of users3 increased 14.9% year-over-year to 30.2 million as of March 31, 2026.
·Total client assets increased 47.2% year-over-year to HK$1.22 trillion as of March 31, 2026.
·Daily average client assets were HK$1.27 trillion in the first quarter of 2026, an increase of 60.8% from the same period in 2025.
·Total trading volume in the first quarter of 2026 increased by 29.1% year-over-year to HK$4.15 trillion, in which trading volume for U.S. stocks was HK$3.00 trillion, and trading volume for Hong Kong stocks was HK$1.01 trillion.
·Margin financing and securities lending balance increased 44.9% year-over-year to HK$72.9 billion as of March 31, 2026.

 

First Quarter 2026 Financial Highlights

 

·Total revenues increased 24.7% year-over-year to HK$5,856.0 million (US$746.9 million).
·Total gross profit increased 29.4% year-over-year to HK$5,106.7 million (US$651.4 million).
·Net income decreased 61.2% year-over-year to HK$831.0 million (US$106.0 million).
·Non-GAAP adjusted net income4 decreased 58.5% year-over-year to HK$919.5 million (US$117.3 million).

 

Mr. Leaf Hua Li, Futu’s Chairman and Chief Executive Officer, said, “In the first quarter, we added 225 thousand net new funded accounts, bringing total funded accounts to 3.6 million, up 34.3% year-over-year. Despite market volatility during the quarter, we continue to track toward our full-year guidance of 800 thousand net new funded accounts with confidence. Net new funded account growth was driven by broad-based strength across all markets despite market turbulence.”

 

“Net asset inflow accelerated meaningfully primarily driven by our high-quality client base in Hong Kong and Singapore. Total client assets were HK$1.22 trillion as of quarter end, up 47.2% year-over-year and largely stable quarter-over-quarter, as robust inflow was offset by mark-to-market pressure on clients’ Hong Kong and U.S. equity holdings. Margin financing and securities lending balance rose 7.7% quarter-over-quarter to HK$72.9 billion, reflecting elevated client appetite to add exposure amid market pullbacks.”

 

 

1 The number of funded accounts refers to the number of brokerage accounts with Futu that have a positive account balance. Multiple funded accounts by one client are counted as one funded account.

2 Multiple brokerage accounts by one client are counted as one brokerage account.

3 The number of users refers to the number of user accounts registered with Futu.

4 Non-GAAP adjusted net income is defined as net income excluding share-based compensation expenses.

 

 

 

 

“Total trading volume climbed to a record HK$4.15 trillion, up 29.1% year-over-year and 4.4% quarter-over-quarter, as a rotation in client activity toward Hong Kong equities more than offset softer U.S. stock trading volumes. Hong Kong stock trading volume grew 22.5% quarter-over-quarter to HK$1.0 trillion, driven by continued momentum in China internet, semiconductor and newly listed AI stocks. U.S. stock trading volume was largely stable sequentially at HK$3.00 trillion, with technology stocks remaining key areas of client interest.”

 

“Total client assets in wealth management increased 28.2% year-over-year and largely stable quarter-over-quarter to HK$178.4 billion. During the first quarter, we continued to broaden our product offerings to address evolving client needs. In Hong Kong, we added a space economy-themed mutual fund to our platform and expanded structured product offerings; in Japan, we partnered with Asahi Life to offer an award-winning global equity fund; and in Singapore, we added fund products under the Equity Market Development Programme to broaden clients’ access to local equity exposure.”

 

“As of quarter end, we have cumulatively served 625 IPO distribution and IR clients, up 25.5% year-over-year. During the first quarter, we provided IPO distribution services to a number of prominent Hong Kong listings, including MiniMax, Busy Ming, and Biren Technology.”

 

“In March, our wholly owned virtual asset exchange, PantherTrade, received its VATP license from the Hong Kong SFC to commence full-scale licensed operations, further enriching the Futu ecosystem with a broader spectrum of services and delivering a more seamless, integrated investment experience for our clients.”

 

Mr. Arthur Yu Chen, Futu’s Chief Financial Officer, added, “On May 22, 2026, the Company received an Administrative Penalty Pre-Notification Letter from the China Securities Regulatory Commission Shenzhen Bureau in an aggregate amount of approximately RMB1.85 billion, which has been fully reflected in our first quarter financial statements as an adjusted subsequent event under U.S. GAAP. This amount does not impact our business fundamentals or financial stability. We remain focused on long-term growth across international markets.”

 

First Quarter 2026 Financial Results

 

Revenues

 

Total revenues were HK$5,856.0 million (US$746.9 million), an increase of 24.7% from HK$4,694.6 million in the first quarter of 2025.

 

Brokerage commission and handling charge income was HK$2,641.4 million (US$336.9 million), an increase of 14.3% from the first quarter of 2025. This was mainly due to higher trading volume, partially offset by a decline in blended commission rate.

 

Interest income was HK$2,650.2 million (US$338.0 million), an increase of 28.0% from the first quarter of 2025. The increase was mainly driven by higher interest income from margin financing, bank deposit and securities borrowing and lending business.

 

Other income was HK$564.3 million (US$72.0 million), an increase of 79.8% from the first quarter of 2025. The increase was primarily attributable to higher currency exchange income, IPO financing service income and fund distribution service income.

 

Costs

 

Total costs were HK$749.3 million (US$95.6 million), largely stable compared to HK$749.0 million in the first quarter of 2025.

 

 

 

 

Brokerage commission and handling charge expenses were HK$164.5 million (US$21.0 million), an increase of 14.6% from the first quarter of 2025. This increase was roughly in line with the growth of our brokerage commission and handling charge income.

 

Interest expenses were HK$414.7 million (US$52.9 million), a decrease of 11.6% from the first quarter of 2025. The decrease was primarily due to lower expenses associated with our securities borrowing and lending business.

 

Processing and servicing costs were HK$170.1 million (US$21.7 million), an increase of 25.0% from the first quarter of 2025. The increase was primarily due to increasing cloud service fees.

 

Gross Profit

 

Total gross profit was HK$5,106.7 million (US$651.4 million), an increase of 29.4% from HK$3,945.7 million in the first quarter of 2025. Gross margin was 87.2%, as compared to 84.0% in the first quarter of 2025.

 

Operating Expenses

 

Total operating expenses were HK$1,576.5 million (US$201.1 million), an increase of 25.1% from HK$1,260.4 million in the first quarter of 2025.

 

Research and development expenses were HK$478.9 million (US$61.1 million), an increase of 24.1% from the first quarter of 2025. This was primarily due to an increase in research and development headcount to support strategic initiatives and new markets.

 

Selling and marketing expenses were HK$556.8 million (US$71.0 million), an increase of 21.3% from HK$459.2 million in the first quarter of 2025. This was driven by the increase of new funded accounts.

 

General and administrative expenses were HK$540.9 million (US$69.0 million), an increase of 30.3% from the first quarter of 2025. The increase was primarily due to an increase in general and administrative personnel to support business development.

 

Income from Operations

 

Income from operations increased by 31.5% to HK$3,530.2 million (US$450.3 million) from HK$2,685.3 million in the first quarter of 2025. Operating margin increased to 60.3% from 57.2% in the first quarter of 2025 mainly due to strong topline growth and operating leverage.

 

Net Income

 

Net income decreased by 61.2% to HK$831.0 million (US$106.0 million) from HK$2,142.7 million in the first quarter of 2025. Net income margin for the first quarter of 2026 decreased to 14.2% from 45.6% in the year-ago quarter.

 

Non-GAAP adjusted net income decreased by 58.5% to HK$919.5 million (US$117.3 million) from the first quarter of 2025. Non-GAAP adjusted net income is defined as net income excluding share-based compensation expenses. For further information, see "Use of Non-GAAP Financial Measures" at the bottom of this press release.

 

 

 

 

Net Income per ADS

 

Basic net income per American Depositary Share (“ADS”) was HK$6.08 (US$0.78), compared with HK$15.44 in the first quarter of 2025. Diluted net income per ADS was HK$6.00 (US$0.77), compared with HK$15.28 in the first quarter of 2025. Each ADS represents eight Class A ordinary shares.

 

Recent Development

 

As previously announced, on May 22, 2026, the Company received a Notice of Investigation and an Administrative Penalty Pre-Notification Letter (the "Pre-Notification Letter") from the China Securities Regulatory Commission and its Shenzhen Bureau (collectively, the “CSRC”). The Pre-Notification Letter proposed penalties on the relevant Futu entities in mainland China and Hong Kong for conducting certain regulated business activities without the requisite licenses or approvals. The proposed penalties comprise (i) confiscation of illegal gains of approximately RMB470 million, and (ii) imposition of fines of approximately RMB1.38 billion, in an aggregate amount of approximately RMB1.85 billion. The unaudited financial statements for the three months ended March 31, 2026 included in this earnings release have reflected the impact of this subsequent event. These amounts were included in “Others, net” of the unaudited condensed consolidated statements of comprehensive income for the three months ended March 31, 2026.

 

Prior to giving effect to this adjustment, the Company’s net income for the three months ended March 31, 2026 were approximately HK$2,922.0 million (US$372.7 million), and non-GAAP adjusted net income was approximately HK$3,010.6 million (US$384.0 million). These amounts exclude the accounting impact of the subsequent event described above, which has been reflected in the unaudited financial statements included in this earnings release. The proposed penalty remains subject to further proceedings and the final determination by the CSRC. The Company is entitled to submit statements, present defenses, and request a hearing. The Company will fully cooperate with the CSRC and exercise its lawful rights to safeguard the legitimate interests of the Company and its shareholders.

 

Share Repurchase Program

 

On November 18, 2025, our board of directors authorized a share repurchase program under which the Company may repurchase up to US$800 million worth of ADSs for a period ending December 31, 2027. As of the close of the U.S. market on May 27, 2026, we have repurchased approximately US$418 million worth of ADSs in open market transactions in accordance with the authorization under this share repurchase program. Subject to market conditions, the Company may continue to execute repurchases from time to time under this share repurchase program.

 

Conference Call and Webcast

 

Futu's management will hold an earnings conference call on Thursday, May 28, 2026, at 7:30 AM U.S. Eastern Time (7:30 PM on the same day, Beijing/Hong Kong Time).

 

Please note that all participants will need to pre-register for the conference call, using the link

 

https://register-conf.media-server.com/register/BIec7483756a8d4ef789028b4abb4be479

 

It will automatically lead to the registration page of "Futu Holdings Ltd First Quarter 2026 Earnings Conference Call", where details for RSVP are needed.

 

Upon registering, all participants will be provided in confirmation emails with participant dial-in numbers and personal PINs to access the conference call. Please dial in 10 minutes prior to the call start time using the conference access information.

 

Additionally, a live and archived webcast of this conference call will be available at https://ir.futuholdings.com/.

 

About Futu Holdings Limited

 

Futu Holdings Limited (Nasdaq: FUTU) is an advanced technology company transforming the investing experience by offering fully digitalized financial services. Through its proprietary digital platforms, Futubull and Moomoo, the Company provides a full range of investment services, including trade execution and clearing, margin financing and securities lending, and wealth management. The Company has embedded social media tools to create a network centered around its users and provide connectivity to users, investors, companies, analysts, media and key opinion leaders. The Company also provides corporate services, including IPO distribution, investor relations and ESOP solution services.

 

Use of Non-GAAP Financial Measures

 

In evaluating the business, the Company considers and uses non-GAAP adjusted net income, a non-GAAP measure, as a supplemental measure to review and assess its operating performance. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. The Company defines non-GAAP adjusted net income as net income excluding share-based compensation expenses. The Company presents the non-GAAP financial measure because it is used by the management to evaluate the operating performance and formulate business plans. Non-GAAP adjusted net income enables the management to assess the Company's operating results without considering the impact of share-based compensation expenses, which are non-cash charges. The Company also believes that the use of the non-GAAP measure facilitates investors' assessment of its operating performance.

 

 

 

 

Non-GAAP adjusted net income is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. This non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using non-GAAP adjusted net income is that it does not reflect all items of expense that affect the Company's operations. Share-based compensation expenses have been and may continue to be incurred in the business and is not reflected in the presentation of non-GAAP adjusted net income. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited.

 

The Company compensates for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance.

 

For more information on this non-GAAP financial measure, please see the table captioned "Unaudited Reconciliations of Non-GAAP and GAAP Results" set forth at the end of this press release.

 

Exchange Rate Information

 

This announcement contains translations of certain HK dollars ("HK$") amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from HK$ to US$ were made at the rate of HK$7.8400 to US$1.00, the noon buying rate in effect on March 31, 2026 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the HK$ or US$ amounts referred could be converted into US$ or HK$, as the case may be, at any particular rate or at all.

 

Safe Harbor Statement

 

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from the management team of the Company, contain forward-looking statements. Futu may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Futu's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Futu's goal and strategies; Futu's expansion plans; Futu's future business development, financial condition and results of operations; Futu's expectations regarding demand for, and market acceptance of, its credit products; Futu's expectations regarding keeping and strengthening its relationships with borrowers, institutional funding partners, merchandise suppliers and other parties it collaborates with; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Futu's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Futu does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

 

For investor inquiries, please contact:

 

Investor Relations

Futu Holdings Limited

ir@futuholdings.com

 

 

 

 

FUTU HOLDINGS LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

(In thousands, except for share and per share data)

 

   As of December 31,   As of March 31, 
   2025   2026   2026 
   HK$   HK$   US$ 
ASSETS               
Cash and cash equivalents   10,465,888    16,485,774    2,102,777 
Cash held on behalf of clients   113,398,356    114,781,186    14,640,460 
Restricted cash   2,510    4,008    511 
Term deposit   -    106,405    13,572 
Short-term investments   6,688,871    6,517,535    831,318 
Securities purchased under agreements to resell   507,767    535,986    68,366 
Loans and advances-current (net of allowance of HK$374,604 thousand and HK$441,152 thousand as of December 31, 2025 and March 31, 2026, respectively)   64,607,370    73,685,339    9,398,640 
Receivables:               
Clients   838,521    758,288    96,720 
Brokers   18,459,373    18,688,930    2,383,792 
Clearing organizations   5,522,472    6,204,482    791,388 
Fund management companies and fund distributors   1,997,086    1,655,735    211,191 
Interest   852,186    918,083    117,102 
Amounts due from related parties   6,780    2,079    265 
Prepaid assets   77,960    140,665    17,942 
Other current assets   225,478    366,894    46,798 
Total current assets   223,650,618    240,851,389    30,720,842 
                
Operating lease right-of-use assets   569,939    570,293    72,741 
Long-term investments   615,220    657,609    83,879 
Loans and advances-non-current   139,668    106,618    13,599 
Other non-current assets   3,461,431    4,130,762    526,882 
Total non-current assets   4,786,258    5,465,282    697,101 
Total assets   228,436,876    246,316,671    31,417,943 

 

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FUTU HOLDINGS LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)

 

(In thousands, except for share and per share data)

 

   As of December 31,   As of March 31, 
   2025   2026   2026 
   HK$   HK$   US$ 
LIABILITIES               
Amounts due to related parties   67,143    106,074    13,530 
Payables:               
Clients   125,249,957    126,826,924    16,176,904 
Brokers   38,678,396    44,453,958    5,670,148 
Clearing organizations   750,964    2,527,818    322,426 
Fund management companies and fund distributors   1,277,467    1,458,619    186,048 
Interest   62,527    72,507    9,248 
Borrowings   12,143,237    15,708,151    2,003,591 
Securities sold under agreements to repurchase   4,743,096    6,198,116    790,576 
Lease liabilities-current   200,089    204,915    26,137 
Accrued expenses and other current liabilities   4,527,129    6,839,824    872,425 
Total current liabilities   187,700,005    204,396,906    26,071,033 
                
Lease liabilities-non-current   393,843    395,629    50,463 
Other non-current liabilities   21,906    34,070    4,346 
Total non-current liabilities   415,749    429,699    54,809 
Total liabilities   188,115,754    204,826,605    26,125,842 
                
SHAREHOLDERS’ EQUITY               
Class A ordinary shares   73    61    8 
Class B ordinary shares   27    27    3 
Additional paid-in capital   19,158,175    14,048,566    1,791,909 
Treasury Stock   (5,199,257)   -    - 
Accumulated other comprehensive income   51,503    303,508    38,713 
Retained earnings   25,990,667    26,841,217    3,423,624 
Total shareholders' equity   40,001,188    41,193,379    5,254,257 
                
Non-controlling interests   319,934    296,687    37,844 
Total equity   40,321,122    41,490,066    5,292,101 
Total liabilities and equity   228,436,876    246,316,671    31,417,943 

 

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FUTU HOLDINGS LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

(In thousands, except for share and per share data)

 

   For the Three Months Ended 
   March 31,
2025
   March 31,
2026
   March 31,
2026
 
   HK$   HK$   US$ 
Revenues               
Brokerage commission and handling charge income   2,310,220    2,641,434    336,918 
Interest income   2,070,469    2,650,234    338,040 
Other income   313,948    564,322    71,980 
Total revenues   4,694,637    5,855,990    746,938 
Costs               
Brokerage commission and handling charge expenses   (143,505)   (164,474)   (20,979)
Interest expenses   (469,333)   (414,687)   (52,894)
Processing and servicing costs   (136,115)   (170,120)   (21,699)
Total costs   (748,953)   (749,281)   (95,572)
Total gross profit   3,945,684    5,106,709    651,366 
                
Operating expenses               
Research and development expenses   (385,979)   (478,880)   (61,082)
Selling and marketing expenses   (459,202)   (556,751)   (71,014)
General and administrative expenses   (415,245)   (540,917)   (68,995)
Total operating expenses   (1,260,426)   (1,576,548)   (201,091)
                
Income from Operations   2,685,258    3,530,161    450,275 
                
Others, net   (20,598)   (2,133,424)   (272,120)
                
Income before income tax expense and share of (loss)/gain from equity method investments   2,664,660    1,396,737    178,155 
                
Income tax expense   (490,959)   (606,984)   (77,421)
Share of (loss)/gain from equity method investments   (30,997)   41,232    5,259 
                
Net income   2,142,704    830,985    105,993 
                
Attributable to:               
Ordinary shareholders of the Company   2,145,323    850,550    108,489 
Non-controlling interests   (2,619)   (19,565)   (2,496)
    2,142,704    830,985    105,993 

 

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FUTU HOLDINGS LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Continued)

 

(In thousands, except for share and per share data)

 

   For the Three Months Ended 
   March 31,
2025
   March 31,
2026
   March 31,
2026
 
   HK$   HK$   US$ 
Net income per share attributable to ordinary shareholders of the Company               
Basic   1.93    0.76    0.10 
Diluted   1.91    0.75    0.10 
                
Net income per ADS               
Basic   15.44    6.08    0.78 
Diluted   15.28    6.00    0.77 
                
Weighted average number of ordinary shares used in computing net income per share               
Basic   1,113,426,758    1,121,453,268    1,121,453,268 
Diluted   1,126,352,076    1,133,330,016    1,133,330,016 
                
Net income   2,142,704    830,985    105,993 
Other comprehensive income/(loss), net of tax               
Changes in the fair value of financial assets   -    (12,158)   (1,551)
Foreign currency translation adjustment   65,215    260,481    33,225 
Total comprehensive income   2,207,919    1,079,308    137,667 
                
Attributable to:               
Ordinary shareholders of the Company   2,210,552    1,102,555    140,633 
Non-controlling interests   (2,633)   (23,247)   (2,966)
    2,207,919    1,079,308    137,667 

 

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FUTU HOLDINGS LIMITED

 

UNAUDITED RECONCILIATIONS OF NON-GAAP AND GAAP RESULTS

 

(In thousands)

 

   For the Three Months Ended 
   March 31,
2025
   March 31,
2026
   March 31,
2026
 
   HK$   HK$   US$ 
Net income   2,142,704    830,985    105,993 
Add: Share-based compensation expenses   74,199    88,546    11,294 
Adjusted net income   2,216,903    919,531    117,287 

 

Non-GAAP to GAAP reconciling items have no income tax effect.

 

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