Can FUTU's One-Stop Strategy Insulate Itself From Market Volatility?

Futu Holdings Limited FUTU registered a whopping 86.3% year-over-year surge in its revenues in the third quarter of 2025. While the company witnessed an explosive 90.6% year-over-year rise in revenues from brokerage commission and handling charges, it is making efforts to pivot toward a “one-stop” financial ecosystem to mitigate market turbulence.

It is impressive how interest income of $391.3 million has caught up to FUTU’s brokerage commission and handling charges amounting to $374.5 million. This diversification is an effective strategy to generate steady returns from margin financing, securities lending and idle cash in a situation where trading velocity tanks.

FUTU’s inclination toward crypto trading and wealth management makes its one-stop strategy more prominent. In the third quarter of 2025, crypto trading volume surged 161% from the preceding quarter, driven by 90% sequential growth in crypto assets and higher trading velocity. On the wealth management front, asset balance increased 7.6% from the preceding quarter due to money market inflows and fixed income products.

The company launched a self-service request-for-quote function for structured products, aiding professional investors to customize products based on conditions they demand, obtain quotes and trade without human hindrance. It will allow them to fulfill client needs while boosting operational efficiency.

Futu Holdings is ensuring that it continues to generate revenues even if users halt trading during a recession. It can capture more customers on the back of its one-stop strategy that provides easy access to other services that generate management and service fees.

FUTU’s Price Performance, Valuation & Estimates

The stock has skyrocketed 106.6% in the past year, significantly outperforming its peers, PRA Group PRAA, Virtu Financial VIRT and the industry as a whole. The industry has declined 3.8%. PRA Group and Virtu Financial have lost 15.2% and 2.4%, respectively.

1-Year Share Price Performance

From a valuation standpoint, FUTU trades at a 12-month forward price-to-earnings ratio of 15.46, higher than PRA Group’s 7.88 and Virtu Financial’s 7.55.

P/E - F12M

FUTU carries a Value Score of B. PRA Group and Virtu Financial carry a Value Score of A.

The Zacks Consensus Estimate for FUTU’s earnings for 2025 and 2026 has increased 8.9% and 9.4%, 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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