Futu Reports 34% Account Growth in Q1 2026, May 29

Futu Holdings Limited announced first-quarter 2026 results on May 28, showing rapid user growth but sharply lower profits. Funded accounts jumped 34.3% year-over-year to 3.59 million, while total client assets climbed 47.2% to HK$1.22 trillion. However, net income fell 61.2% to HK$831 million. The mixed results highlight the tension between scaling and profitability in Hong Kong’s competitive fintech market.

User Base Expands Sharply Across All Metrics

Futu added 225,000 net new funded accounts in Q1, bringing the total to 3.59 million, up 34.3% from the prior year. Brokerage accounts grew 26.8% to 6.28 million, while total users increased 14.9% to 30.2 million. Daily average client assets hit HK$1.27 trillion, up 60.8% year-over-year. Total trading volume rose 29.1% to HK$4.15 trillion, with U.S. stocks accounting for HK$3.00 trillion and Hong Kong stocks HK$1.01 trillion.

Revenue Grows, But Profits Collapse

Total revenues increased 24.7% to HK$5,856 million (US$746.9 million), while gross profit climbed 29.4% to HK$5,107 million (US$651.4 million). Net income, however, fell 61.2% to HK$831 million (US$106 million). Non-GAAP adjusted net income dropped 58.5% to HK$920 million (US$117.3 million). The profit decline outpaced revenue growth, signaling rising costs and margin compression.

Margin Financing Surges Amid Market Volatility

Margin financing and securities lending balances grew 44.9% to HK$72.9 billion as of March 31. Despite market volatility during the quarter, Futu’s Chairman Leaf Hua Li said the company remains confident in reaching full-year guidance of 800,000 net new funded accounts. The company’s ability to attract new users suggests strong brand momentum in the region.

What This Means for Investors

Futu is growing its customer base rapidly but struggling to convert that growth into profits. The 61% profit drop despite 25% revenue growth indicates the company is spending heavily on acquisition and operations. Investors should monitor whether management can stabilize margins as the user base matures. The strong trading volume and margin financing growth show demand remains solid in Hong Kong and U.S. markets.

Final Thoughts

Futu’s Q1 results reveal a classic growth-versus-profitability trade-off. While user acquisition accelerated, net income collapsed 61%, suggesting the company is prioritizing market share over near-term earnings. Watch for margin improvement in coming quarters.

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