How FUTU Is Building Revenue Shields Against Market Downturns

Futu Holdings Limited (FUTU) just posted an 86.3% year-over-year revenue jump in Q3 2025, but what’s really interesting isn’t just the growth—it’s how the company is structuring its business to insulate itself from trading slowdowns.

The numbers tell a compelling story of diversification at work. Brokerage commissions and handling charges skyrocketed 90.6% year-over-year to $374.5 million, which sounds like pure trading momentum. But here’s the plot twist: interest income hit $391.3 million, nearly matching brokerage revenues. This crossover matters because it signals FUTU isn’t betting everything on commission cycles anymore.

Revenue Streams Are Evening Out

When trading dries up during bear markets, most brokers suffer. FUTU’s building multiple revenue lifelines through margin financing, securities lending, and yield on idle cash reserves. These typically generate returns regardless of whether users are aggressively buying and selling.

The company’s strategic shift into crypto and wealth management adds another layer of insulation. Crypto trading volume jumped 161% quarter-over-quarter in Q3 2025, fueled by a 90% sequential surge in crypto assets under management. Meanwhile, wealth management assets grew 7.6% sequentially, backed by inflows into money market funds and fixed income products.

FUTU also rolled out a self-service request-for-quote tool for structured products, letting professional investors customize instruments and trade independently. This move boosts both client satisfaction and operational margins without requiring heavy staffing.

Outpacing Competitors by a Wide Margin

The stock has crushed the broader market and peer performance. Over the past year, FUTU surged 106.6%, while PRA Group (PRAA) and Virtu Financial (VIRT) returned negative -15.2% and -2.4%, respectively. The financial services sector itself declined 3.8%, making FUTU’s performance even more striking.

From a valuation angle, FUTU trades at a forward P/E of 15.46—higher than PRAA’s 7.88 and VIRT’s 7.55. While this premium suggests the market is pricing in future growth, it also reflects confidence in FUTU’s diversification model.

Analyst Sentiment Strengthens

The Zacks Consensus Estimate for FUTU’s 2025 and 2026 earnings has both increased—up 8.9% and 9.4% respectively over the past 60 days. FUTU carries a Zacks Rank of #1 (Strong Buy), signaling analyst conviction.

With its Value Score of B (PRAA and VIRT both score A), FUTU’s premium valuation appears justified given its unique positioning to weather market volatility through revenue diversification and strategic expansion into higher-margin services.

The bet here: even if retail traders go quiet during downturns, FUTU’s wealth management, crypto operations, and financing arms keep the revenue engine running.