Futu Holdings Ltd. (NASDAQ:FUTU) Reports Strong Q3 2025 Revenue and User Growth Despite EPS Miss

Futu Holdings Ltd. (NASDAQ:FUTU) has released its financial results for the third quarter of 2025, delivering a performance that significantly surpassed analyst expectations on the top line while presenting a more complex picture on the bottom line. The market's initial reaction appears to be cautiously optimistic as investors digest the mixed earnings components against a backdrop of robust user growth and record trading activity.

Earnings and Revenue Performance Versus Estimates

The company's third-quarter results revealed a substantial divergence between its revenue achievement and its earnings per share relative to analyst forecasts. While revenue growth was exceptionally strong, the EPS figure came in well below what the market had anticipated.

• Revenue: The company reported total revenues of HK$6,402.9 million (approximately US$822.9 million), marking an 86.3% increase year-over-year. This figure handily exceeded the analyst estimate of US$5.829 billion.
• Earnings Per Share (EPS): The non-GAAP adjusted net income was HK$3,312.5 million (US$425.7 million), up 136.9% from the same period last year. However, the non-GAAP diluted EPS of US$2.93 fell significantly short of the analyst estimate of US$65.06.

This discrepancy between soaring revenues and an EPS miss, despite massive growth, is a key focal point for the market's interpretation of the results.

Market Reaction

The immediate market reaction suggests a positive, though not euphoric, response to the earnings beat on revenue and the strong operational growth. In pre-market trading following the announcement, FUTU's stock was up approximately 2.02%. This upward movement indicates that investors are likely focusing on the company's powerful top-line expansion and impressive user metrics, viewing them as primary indicators of long-term health, even as they weigh the earnings per share figure against expectations.

Operational and Financial Highlights

Beyond the headline earnings numbers, the press release detailed explosive growth across all key operational metrics, painting a picture of a company rapidly expanding its market reach and user engagement.

• Client Growth: Total funded accounts increased by 42.6% year-over-year to over 3.13 million. The company added 254,000 net new funded accounts in the quarter alone.
• Client Assets: Total client assets surged 78.9% to HK$1.24 trillion, driven by market gains and robust net asset inflows.
• Trading Volume: Total trading volume reached a record HK$3.90 trillion, up 104.8% year-over-year. This was fueled by strong activity in U.S. stocks (HK$2.60 trillion), a significant sequential increase in Hong Kong stock trading, and a 161% quarter-over-quarter surge in crypto trading volume.
• Profitability Metrics: The company demonstrated improved operational efficiency, with gross margin expanding to 87.6% from 81.8% a year ago, and operating margin increasing to 61.0% from 50.4%.

Looking Ahead

The press release did not include a specific quantitative financial outlook for the upcoming quarter or full year. Therefore, it is not possible to directly compare management's internal projections with the analyst estimates for Q4 2025 revenue (US$6.018 billion) and full-year 2025 sales (US$19.928 billion). The absence of formal guidance does not inherently signal a positive or negative stance and is a neutral factor in assessing the market's reaction.

Management did, however, express strong confidence in future growth avenues, particularly highlighting the early stages of crypto adoption and continued expansion in markets like Hong Kong, Malaysia, and the U.S. Additionally, the board authorized a new share repurchase program of up to US$800 million, signaling a belief in the company's intrinsic value and a commitment to returning capital to shareholders.

For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the data here.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The performance data and estimates referenced are based on publicly available information and are subject to change. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.