Is FUTU's Global Diversification Strategy Yielding Benefits?

Futu Holdings Limited’s FUTU quarterly metrics reveal compelling evidence behind the successful international expansion. As of Sept. 30, 2025, FUTU’s total funded accounts reached 3.1 million, up 42.6% year over year and 8.8% sequentially. This growth was derived from client acquisition across every market.

Management disclosed that 254,000 new funded accounts were added in the third quarter of 2025, representing 24.7% sequential growth. Hong Kong was leading in client acquisitions due to strong equity market performance and an IPO pipeline.

In Singapore, Futu Holdings registered sequential growth in its newly funded accounts, positioning it as the number one retail broker in Singapore. Malaysia had meaningful contributions to FUTU’s funded account growth. It was impressive how the company managed to secure 28,000 investor sign-ups in Singapore in July and Malaysia in October via MooFest. The U.S. delivered a high-double-digit sequential increase in new funded accounts, ensuring momentum in vital regions.

This client growth resulted in higher client assets and trading activity. In the third quarter of 2025, total client assets increased 79% year over year and 27% sequentially, fueled by strong asset inflow. The client base expansion, supported by favorable market forces and upbeat investor sentiment, drove trading volume year over year by a whopping 105% and 9% sequentially.

FUTU’s operational strength was significantly boosted by its global expansion strategy. The company registered an explosive year-over-year surge of 86.3% in its revenues in the third quarter of 2025. Net income showed a lofty rally of 143.9% year over year, resulting in a net income margin expansion of 1,180 basis points from the year-ago quarter. This remarkable margin expansion suggests the utilization of a scalable tech platform, facilitating exponential top-line growth to disproportionately favorable profit hikes. Therefore, international expansion not only aids growth but also is a margin driver for the business.

FUTU’s Price Performance, Valuation & Estimates

The stock has soared 99.7% in the past year, significantly outperforming its peers, LendingClub LC, NerdWallet NRDS and the industry as a whole. The industry has declined 13.3%, while LendingClub and NerdWallet have gained 18.4% and 10.8%, respectively, in the same period.

1-Year Share Price Performance

From a valuation standpoint, FUTU trades at a 12-month forward price-to-earnings ratio of 17.15, lower than the industry’s 23.56. LendingClub and NerdWallet are trading at 12.33 and 17.14, respectively.

P/E - F12M

FUTU carries a Value Score of C. LendingClub and NerdWallet carry D and B, respectively.

The Zacks Consensus Estimate for FUTU’s earnings for 2025 and 2026 has increased 6.3% and 7.2%, respectively, over the past 60 days. 

FUTU currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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