Futu Holdings (NASDAQ: FUTU), the tech-focused online trading platform, posted net income that more than doubled in the second quarter as volatile markets and high-profile stock offerings drove trading activity across its global client base.

Futu Holdings Sees Net Income Double In Q2 2025

The Hong Kong-based company reported net income of HK$2.57 billion (US$327.7 million) for the three months ended June 30, up 113% from HK$1.21 billion (US$154.1 million) in the same period last year. Revenue jumped 69.7% to HK$5.31 billion (US$676.6 million).

The results underscore how market turbulence can benefit online brokerages, even as it rattles individual investors. Futu's trading volumes surged 121% year-over-year to HK$3.59 trillion (US$457.5 billion) during the quarter, with U.S. stock trading reaching HK$2.70 trillion (US$344.0 billion) and Hong Kong stocks accounting for HK$833.5 billion (US$106.2 billion).

Client Growth Accelerates

Futu's funded accounts, those with positive balances, grew to nearly 2.9 million by quarter-end, marking a 40.9% increase from a year earlier. For comparison, in the previous quarter the number of accounts stood at 2.67 million. More tellingly for the company's international ambitions, over half of these accounts now come from clients outside its Hong Kong Securities operation.

"Trade policy-induced market volatility, coupled with a slate of high-profile IPOs, boosted retail sentiment in Hong Kong, which, for the third quarter in a row, contributed the highest number of new funded accounts across all markets," said Leaf Hua Li, Futu's Chairman and Chief Executive.

The company added more than 204,000 new funded accounts during the quarter, a 31.6% increase from the previous year. Client retention remained strong at above 98%, the company said.

Also check Futu's 2024 results: Futu Profit Surges 113% as AI and Crypto Stocks Fuel $371 Billion Trading Volume

Asset Surge Drives Revenue

Total client assets climbed to a record HK$973.9 billion (US$124.1 billion), up 68% year-over-year and 17% from the first quarter. The increase reflected both new money flowing in and favorable market movements in Hong Kong and U.S. equities.

Net asset inflows during the first half of 2025 nearly doubled compared to the same period last year, Futu said, with growth coming from all markets where it operates.

The asset growth helped drive interest income, which rose 43.8% to HK$2.29 billion (US$291.5 million). Brokerage commission and handling charges jumped 87.4% to HK$2.58 billion (US$328.5 million), though the company noted that blended commission rates were softer than the year-ago quarter.

International Expansion Continues

Futu has been pushing beyond its Hong Kong base into markets including the United States, Singapore, Malaysia and Japan.

“In the second quarter, we became the official sponsor of the New York Mets, further elevating our brand image in the U.S. and beyond,” Hua Li added. “We also launched crypto trading in most of the states in June, strengthening our value proposition as a one-stop trading platform.”

In Japan, Futu partnered with Nasdaq and the Japan Exchange Group to host an investment event that attracted over 12,000 Tokyo-based investors to register, helping raise brand awareness among local retail investors.

The company also expanded its wealth management offerings, with assets under management in that segment reaching HK$163.2 billion (US$20.8 billion), up 104.4% year-over-year. In Hong Kong, Futu became the first online broker to offer structured products to retail investors and the only platform to distribute tokenized money market funds.

Market Volatility Creates Opportunity

The quarter saw significant market swings, particularly in April when various factors including cryptocurrency-related developments sparked increased trading interest. U.S. stock trading volume at Futu grew 20% sequentially, led by electric vehicle and crypto-related names.

Hong Kong stock trading volume declined 9.0% quarter-over-quarter, mainly due to reduced activity in technology stocks, though this was partly offset by higher turnover in consumer-related companies.

Futu's gross profit margin expanded to 87% from 82% in the prior year quarter, while operating expenses rose just 21% to HK$1.30 billion (US$165.1 million). This operating leverage helped push the operating margin to 63.0% from 47% a year earlier.