Futu Rides AI, Chip Frenzy to Record Trading Volume

Futu Holdings Ltd. (NASDAQ:FUTU) stock is trading higher in Thursday’s premarket session after the company reported strong second-quarter results.

Futu Holdings Earnings Snapshot

Futu reported revenue of $918.16 million, beating the analyst estimate of $775.99 million.

Revenue rose 35.6% year over year to 7.20 billion Hong Kong dollars, while gross profit increased 33.9% to 6.21 billion Hong Kong dollars ($792.5 million).

Adjusted net income climbed 40.1% to 3.73 billion Hong Kong dollars ($475 million).

International markets remained key growth drivers. Malaysia led new client additions for the third consecutive quarter, followed by Hong Kong and Singapore. New clients in those markets also showed stronger initial monetization.

As of June 30, Futu had repurchased about 3.8 million American depositary shares for approximately $418 million.

Funded Accounts Climb 34%

Futu added 252,000 net new funded accounts during the quarter. That brought total funded accounts to 3.8 million, up 33.6% year over year.

Brokerage accounts increased 26.6% to 6.64 million, while total users rose 15.2% to 31.3 million.

Total client assets climbed 43.6% to 1.40 trillion Hong Kong dollars. Daily average client assets increased 55.6% to 1.39 trillion Hong Kong dollars.

Trading volume hit a record 6.42 trillion Hong Kong dollars, up 78.8% year over year. U.S. stock trading volume rose 67.2% sequentially to 5.02 trillion Hong Kong dollars, driven by semiconductor and artificial intelligence stocks. Hong Kong stock volume increased 15.9% sequentially to 1.17 trillion Hong Kong dollars.

Margin financing and securities lending balances rose 85.1% year over year and 30.5% sequentially to 95.1 billion Hong Kong dollars. Strong Hong Kong IPO activity and higher leverage utilization supported the increase.

Wealth management assets increased 10.4% to 180.2 billion Hong Kong dollars.

Futu had served 683 IPO distribution and investor relations clients cumulatively, up 32.1% year over year. The company also provided investment banking services to nearly 60% of Hong Kong’s new listings during the quarter.

FUTU Price Action: Futu Holdings shares were up 9.52% at $119.84 during premarket trading on Thursday, according to Benzinga Pro data.

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