Futu Holdings Limited Q4 FY2025 earnings call

• Client acquisition: In 2025, delivered strong client acquisition, adding over 950,000 NENU funded accounts and surpassing full-year guidance by 19%, with total funded accounts reaching ~3.4 million, a 40% year-over-year increase. Confident in acquiring 800,000 NENU funded accounts in 2026. • Market performance: Growth of all market customers strong, with Hong Kong and Malaysia making biggest contribution. Hong Kong market consolidated leading position. Market share of Moomoo in Malaysia significantly increased. Cumulative app downloads in Japan crossed 2 million. Moomoo was most downloaded trading app in Australia. • Product supply: In Hong Kong, enhanced high-dividend funds lineup and lowered minimum investment threshold for structured products. In Singapore, introduced more Singapore equity funds and short-duration bond funds. In Malaysia, launched Soraya-compliant Gold Tractor Funds. Optimized Airstar Bank's account opening processes and launched mutual funds and insurance products in the banking app, and introduced a desktop version. • Technology and risk management: Independently developed anti-waste systems and built seven major recognition systems based on AI. Streamlined account opening processes and strengthened compliance and risk management capabilities.

In 2025, total funded accounts reached around 3.4 million, a 40% year-over-year increase. Net new funded accounts in Hong Kong recorded high double-digit year-over-year increase. Market share of Moomoo in Malaysia significantly increased. Cumulative app downloads in Japan as of November last year crossed 2 million. Moomoo was the most downloaded trading app in Australia in 2025. Total trading volume climbed to a record HK$3.98 trillion, up 38% year-over-year and 2% quarter-over-quarter. Goldfish Commission handling charge income was $2.8 billion, up 35% year-over-year and down 5% Q2Q. Interest income was $3 billion, 50% year-over-year and flat QVQ. Other income was $630 million, 79% year-over-year and 42% QVQ. Total cost was $729 million, a decrease of 6% from the fourth quarter of 2024. Gross profit was $5.7 billion, an increase of 56% from the fourth quarter of 2024. Operating expenses were up 9% year-over-year and down 8% QVQ to $1.6 billion. Income from operation increased 87% year-over-year and 6% year-over-year to $4.1 billion. Net income increased by 80% year-over-year and 5% cumulative to $3.4 billion.

• 2026 target: Set competitive asset customer leads in 2026 as 800,000. • 2025 performance: Delivered strong client acquisition, adding over 950,000 NENU funded accounts and surpassing full-year guidance by 19%, with total funded accounts reaching ~3.4 million, a 40% year-over-year increase. Confident in acquiring 800,000 NENU funded accounts in 2026. • 2026 outlook: Remain confident in ability to acquire 800,000 NENU funded accounts in 2026 supported by strong bottom-up growth opportunities across established and newer markets. • First quarter 2026: Expect net new funded accounts and trading volume to be flattish quarter-of-a-quarter, expect double-digit sequential increase in net asset inflows, and expect quarterly net asset inflow in the first quarter to be the highest quarterly number. • Share buyback: Share repurchase program of up to $800 million to December 2007, no use in fourth quarter, will continue to closely look at market conditions and look for potential market opportunities to conduct share buyback program.

Q: About business trends in first quarter of 2026 including new users, customer entry fee, transaction fee and interest rate trend. Also about transaction fee structure and trading volume breakdown for US stock.

A: Regarding Chinese ADR's contribution to US stock trading volumes, latest quarter it's less than 10%. For first quarter 2026, expect net new funded accounts and trading volume to be flattish quarter-of-a-quarter, expect double-digit sequential increase in net asset inflows, expect quarterly net asset inflow in first quarter to be highest quarterly number, blinded commission rate slattish Q1Q.

Q: About crypto business latest developments after Hong Kong regulatory policy relaxation and AI's specific empowerment to business.

A: Waiting for Hong Kong regulators for BATP license approvals, confident to get license soon. After launch, hope to provide crypto trading with margin using stock as collateral and staking service, and tailor-made crypto service to high-end customers. AI is company-level strategy, integrated into product experience and internal operations, improved customer investment opportunities and information collection efficiency, introduced AI quantifying transactions function, expanded asset division supported by AI Chatbot and AI Reader, integrated AI technology into production, operation, customer service, and intelligence teams.

Q: About 800,000 customer guidance and Airstock Bank's future.

A: 800,000 guidance includes assumption of entering a new Asian market. Airstock Bank will continue to focus on generating synergies with existing business, externally upgrade user experience, internally enrich infrastructures, launch more wealth management related products in next couple of quarters, enhance compliance and risk controls, revenue stream will be more fee incomes from wealth management activities supplement by some balance sheet expansion business in long run.

Q: About new users regional breakdown and AUM regional breakdown.

A: Malaysia and Singapore contributed more than half of real estate client growth, other regions like US, Singapore, Japan contributed about 10%-20%. Net asset inflows have moderations in first quarter but remain high, momentum strong. Market-to-market loss in fourth quarter almost fully offset net asset inflows. Hong Kong remains largest in terms of clients access AUM breakdowns, followed by Singapore and new markets like Japan and US.

Q: About new markets rationale and performance measurement for high net worth clients.

A: New market in Asian region, still applying for relevant license. Internal assessment of relationship managers for high net worth clients is comprehensive system of indicators including customer income, total assets, retention rate, etc.

Q: About 2026 new customers contribution from Hong Kong and overseas markets and first quarter trading volume, etc.

A: Hong Kong will continue to be strong contributor. CAC for 2026 around $2,500 to $3,000 Hong Kong dollars with flexibility. First quarter total trading volume flattish quarter-to-quarter, stay at historic high, expect sequential increase in margin financing and securities lending balance, expect historic high quarterly net asset inflow in first quarter.

Q: About Hong Kong competition pattern and share repurchase program progress.

A: Competitive pattern in Hong Kong not changed much, influenced by overall market sentiment. Share repurchase program not used in fourth quarter, will continue to closely look at market conditions to conduct share buyback program.