UP Fintech Q2 2025 Earnings Report

UP Fintech EPS Results

• Actual EPS: N/A
• Consensus EPS: $0.10
• Beat/Miss: N/A
• One Year Ago EPS: $0.02

UP Fintech Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $118.12 million
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

UP Fintech Announcement Details

• Quarter: Q2 2025
• Date: 8/27/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, August 27, 2025
• Conference Call Time: 8:00AM ET

UP Fintech (NASDAQ:TIGR) provides online brokerage services focusing on Chinese investors. The company has developed a brokerage platform, which allows investor to trade stocks, options, warrants, and other financial instruments that can be accessed through its APP and website. It offers brokerage and value-added services, including investor education, community engagement, and IR platform services. In addition, the company provides trade execution, margin financing, and securities lending services; asset management and wealth management; ESOP management; fund license application, product design, asset custody, transaction execution, and funding allocation; fund structuring and management; and IPO underwriting services. Further, it offers market information, community engagement, and simulated trading services. UP Fintech Holding Limited was founded in 2014 and is based in Beijing, China.

UP Fintech Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Our Q2 total revenue hit $138.7 million, up 58.7% YoY, with net income of $41.4 million (16× YoY) and a record non-GAAP margin of 32%.
• Positive Sentiment: We added 38,900 new funded accounts in Q2 (over 100,000 in H1), reaching 1.19 million funded accounts (+21.4% YoY) with average net inflows per new client exceeding $20,000.
• Positive Sentiment: Total client assets climbed to a record $52.1 billion (+36.3% YoY), driven by $3 billion of net inflows and strong growth across all markets, especially Hong Kong and Singapore.
• Positive Sentiment: We launched new product enhancements—such as Singapore CPF investment accounts and advanced options order features—and saw digital asset trading volume surge 65% Q/Q with assets under custody nearly doubling.
• Positive Sentiment: Our investment banking business underwrote 7 Hong Kong and 4 U.S. IPOs in Q2, including Charjie’s U.S. listing, setting a new subscription record and boosting other revenue to a quarterly high.

Presentation

[Operator]

Ladies and gentlemen, thank you for standing by, and welcome to the UP Fintech Holding Limited Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. There will be a presentation followed by a question and answer session. I must advise you that this conference is being recorded today, 08/27/2025. I would now like to hand the conference over to your first speaker today, Mr. Aaron Lee, the Head of Investor Relations. Thank you. Please go ahead.

[Aaron Li, Head - IR at Tiger Brokers]

Thank you, operator. Hello, everyone, and thank you for joining us for the call today of Fintech Coding Limited's second quarter twenty twenty five earnings release was distributed earlier today and is available on our IR website at ir.itigerup.com as well as Globe Newspire Services. On the call today from UpFintech are Mr. Wutianhua, Chairman and Chief Executive Officer Mr. Zhang Seng, Chief Financial Officer Mr. Huang Lei, CEO of U. S. Tiger Securities and Mr. Kenny Zhao, our Financial Controller. Mr. Wu will give an overview of our business operations and discuss corporate highlights. Mr. Seng will then discuss our financial results. They will both be available to answer your questions during the Q and A session that follows the following. Now let me cover the Safe Harbor.

[Aaron Li, Head - IR at Tiger Brokers]

The statements we're about to make contain forward looking statements within the meaning of The U. S. Private Securities Litigation Reform Act of 1995. A number of factors could cause actual results to differ materially from those contained in any forward looking statement. For more information about factors that could cause actual results to materially differ from those in the forward looking statements, please refer to our Form six ks furnished today, 08/27/2025, and our annual report on Form 20 F filed on 04/23/2025.

[Aaron Li, Head - IR at Tiger Brokers]

We undertake no obligation to update any forward looking statement, except as required under applicable law. It is my pleasure to now introduce our Chairman and Chief Executive Officer, Mr. Wu. Mr. Wu will make remarks in Chinese, which will be followed by English translation. Mr. Wu, please go ahead with your remarks.

[Moderator]

Hello, everyone. Thank you for joining the Tiger Brokers second quarter twenty twenty five earnings conference call. In the second quarter, driven by the growth in our user base and client assets as well as enhancements in product offerings, our total revenue, trading volume, commission income, interest income and other income all reached record highs.

[Moderator]

Our total revenue for the quarter reached million dollars representing a 58.7% year over year increase and a 13.1 quarter over quarter growth. Trading volume significantly surged both year over year and quarter over quarter, reaching US284 billion dollars which contributed to a 90.1% year over year increase and 11.1% quarter over quarter increase in commission income, reaching US64.8 million dollars Meanwhile, the margin financing and securities lending balance further expanded to US5.7 billion dollars reflecting a 65.3% year over year growth. Net interest income for the second quarter amounted to US58.7 million dollars representing a 32.8% year over year increase. Benefiting from expanded user base and increase in ARPU, Our net income attributable to our fintech for the second quarter was US41.4 million dollars up 36.2% from the previous quarter and 16x higher than the same quarter last year. Non GAAP net income reached million dollars increasing 23.5% sequentially and 8.6 times the number in the same quarter last year.

[Moderator]

The non GAAP net profit margin in the second quarter increased to 32%, set another record high and has increased for four consecutive quarters. Additionally, for the first half of the year, our operating profit and net profit have already exceeded the total of last year, indicating a more stable and healthier business model. Through our growing efforts to penetrate existing markets and expand a high quality user base, we are better positioned to navigate the market turbulence in a constantly changing environment. In the second quarter, we added 38,900 new funded accounts with Singapore and Hong Kong being the primary contributing markets. In the first half of the year, we have acquired more than 100,000 new funded accounts, more than two thirds of our full year target of 150,000 in 2025.

[Moderator]

As of the end of the second quarter, the total number of funded accounts reached 1,192,700, representing a 21.4% year over year increase. In addition, we are glad to see that the quality of newly funded user continue to improve in the second quarter, with the average net asset inflow of newly acquired clients exceeding US20000 dollars reaching a historic high. Notably, the average net asset inflow of newly acquired clients in Hong Kong and Singapore is substantially higher at around US30000 dollars Regarding total client assets, net asset inflows remained robust, reaching US3 billion dollars in the second quarter. Over 70% of which came from retail investors, coupled with approximately US3.2 billion dollars in the mark to market gain, total client assets reached a new record of US52.1 billion dollars up 13.5% quarter over quarter and 36.3% year over year, marking 11 consecutive quarters of growth. In the second quarter, all markets saw double digit sequential increases in client assets, with Hong Kong and Singapore experiencing around 5020% quarter over quarter growth, respectively.

[Moderator]

Additionally, client assets in the Australia, New Zealand and U. S. Market increased by over 30% quarter over quarter. In the second quarter, we continue to optimize product features and enhance user experience. In Singapore, we launched the central provision fund account trading and supplementary retirement scheme account trading features in July.

[Moderator]

These new offerings enable eligible clients to utilize a portion of their CPF ordinary account saving and retirement funds to invest in approved financial products, such as selected Singapore listed stocks, while enjoying tax benefits. We keep investing option features to better serve our high value users. We added pending order reminder for expiry date options, alerting users through the app or message when they have unfulfilled orders approaching expiration to prevent unnecessary exercise of forced liquidation in consideration to a better user experience. We also introduced conditional market order for single leg options, allowing users to set parameters such as price, time and underlying conditions. When triggered, the system automatically submits corresponding single leg market order to help users build position or close position, reducing the hassle for constant manual monitoring.

[Moderator]

Our 2B business also maintained strong momentum. In the second quarter, we underwrote seven Hong Kong IPOs and four U. S. IPOs, helping to boost our other revenue to a new quarterly high. Notable IPOs included Charjie and Joliotu Jewelry, with Charjie becoming the first Netflix listed Chinese tea beverage brand, attracting over 30,000 subscribers, setting a new record for U.

[Moderator]

S. IPO subscription in the past three years. In our East of business, we added 30 new clients in the second quarter, bringing the total to six sixty three, a year over year increase of 15%. Now I would like to invite our CFO, Zhang to go over our financials.

[John Zeng, CFO & Director at UP Fintech]

Great. Thanks, Tian Hwan and Aaron. Let me go through our financial performance for the second quarter. All numbers are in U. S.

[John Zeng, CFO & Director at UP Fintech]

Dollar. We saw encouraging growth in all revenue components this quarter. Commission income was $64,800,000 increased to 90% year over year and 11% quarter over quarter. Interest income was $58,700,000 increase of 33% year over year and 9% quarter over quarter, in line with our sequential increase margin financing and the securities lending balance. Total revenue reached $138,700,000 up 59% year over year and 13% quarter over quarter.

[John Zeng, CFO & Director at UP Fintech]

Cash equity take rate was 66.4 bps this quarter, slightly decreased from 6.7 bps of last quarter as The U. S. Market went up in the second quarter, contributed to a higher average price per share. Waiting commission revenue, about 65% comes from cash equities, 28% from options and the rest from futures and other products. Regarding cost, interest expense was $17,300,000 increased 28% year over year, in line with the increase in our interest income and margin and securities lending business.

[John Zeng, CFO & Director at UP Fintech]

Execution and clearing expense were $5,400,000 increased 92% from the same period of last year, in line with the increase in commission and trading volume. Employee compensation and benefits expense were $35,800,000 an increase of 25% year over year due to headcount increase in overseas offices and R and D. Occupancy, depreciation and amortization expense were $2,700,000 increased to 29% year over year due to the increase in office space and relevant lease call improvements. Communication and market data expense were $10,400,000 an increase of 18% year over year due to the increase in user base and IT related service fees. Marketing expense were $9,900,000 this quarter, increased to 54% year over year as we expanded our marketing activities versus a year ago.

[John Zeng, CFO & Director at UP Fintech]

General and administrative expense were $6,700,000 a decrease of 67% year over year as last year we had a onetime bad debt provision of 13,200,000.0 Total operating costs were $71,000,000 an increase of 3% from the same quarter of last year. As a result, bottom line increased on both GAAP and non GAAP basis. GAAP net income were $41,400,000 up 36% quarter over quarter and a 15 times higher year over year. Non GAAP net income were 44,500,000.0 a 24% increase quarter over quarter and eight times higher year over year. The non GAAP net profit margin further expanded to 32% in the second quarter.

[John Zeng, CFO & Director at UP Fintech]

Now I have concluded our presentation. Operator, please open the line for Q and A. Thanks.

[Operator]

Thank We will now take the first question from the line of Cindy Wang from China Renaissance.

[Cindy Wang, Director at China Renaissance]

Thanks for taking my questions and congrats for great Q2 results. I have two questions here. First, the company's pretax profit increased sequentially, but income taxes expenses decreased sequentially. And also the effective tax rate dropped to around 15%. So what is the reasoning behind it?

[Cindy Wang, Director at China Renaissance]

And whether is it sustainable? And also the other revenue rose strongly as in many contributed from investment banking business. Second is regarding to the crypto business. So how is the company's cryptocurrency business progressing? And we've heard that the company has brought in strategic investor to jointly develop this area.

[Cindy Wang, Director at China Renaissance]

So what are your plans and views on the development of the Hong Kong crypto market? And do you have any plans to obtain licenses in Singapore and The United States? Thank you.

[John Zeng, CFO & Director at UP Fintech]

So there are two primary reasons for the decline in the effective tax rate. First, pretax profit rose across all licensed subsidiary in the second quarter, which reduced the weighting of our U. S. Subsidiary in terms of total group profit. Since The U.

[John Zeng, CFO & Director at UP Fintech]

S. Has the highest tax rate, okay, this reduced the weighting helped to lower the overall group's tax rate. Another reason is that we secured a more favorable tax rate in Singapore, reducing it from 17% to 13.5% in the second quarter. And regarding the substantial increase in other income, the growth in investment banking was indeed a major contributor. In the second quarter, we underwrote four U.

[John Zeng, CFO & Director at UP Fintech]

S. IPOs, out of which two of them were the sole book runner. In addition, foreign exchange income saw quarter over quarter increase due to market volatility. Our wealth management revenue also rose by about 70% due to rapid growth in AUM. Thanks.

[Moderator]

I'll translate for the second question. We firmly believe that digital asset is now established as a major asset class, and we are committed to expanding our presence in the digital asset market. Our goal is to develop a comprehensive one stop platform that seamlessly connects traditional financial assets with digital ones. Product experience has always been the key to TIGR's long term success. The Web3 is still a relatively new area compared to the traditional Web2 trading.

[Moderator]

We are committed to maintaining Tiger's high standards in product functionalities. To further these efforts, we have partnered with seasoned strategic investors in the Web3 ecosystem, who are also pioneers and successful entrepreneurs in the early days of the digital asset exchange. So by combining their expertise with our experience in Web2 Fintech, we aspire to jointly develop leading edge digital asset trading products that will stand out in the global market. Although this business still accounts for only a small part of our total revenue, We are seeing strong growth, especially as we keep expanding in Hong Kong and roll out industry leading features like digital asset deposit and withdraw. We've seen a significant increase in trading volume on our Hong Kong platform and growth in the digital asset under custody.

[Moderator]

In the second quarter, digital asset trading volume increased around 65% quarter over quarter and asset under custody on our exchange nearly doubled sequentially. As for the global market, we've got digital asset trading license in 14 states in The U. S. And our application in Singapore is actively progressing. So moving forward, we plan to focus more resources on improving our product and supporting more trading features aiming to offer our user a more comprehensive and seamless trading experience.

[Moderator]

Thank you. And operator, please move on to the next question.

[Operator]

Thank you. We will now take the next question from the line of Judy Tsang from Citi. Please go ahead.

[Judy Zhang, Vice President & Equity Analyst at Citi]

Thank you for taking my question. I have two questions. The first question is regarding on the company's run rate so far in 3Q quarter to date. Specifically, could you share with us any early trends around trading volume, client asset and the new paying customers growth? The second question is, can you update us on your progress in the Hong Kong market expansion during second quarter and the third quarter quarter to date?

[Judy Zhang, Vice President & Equity Analyst at Citi]

We have noticed that since entering Tiger entering Hong Kong market, the company's assets from local clients have been rapidly increasing. So the company has also mentioned that the quality of the local clients is excellent. Given the satisfied ROI, when does Tiger plans to enhance the customer acquisition and advertising efforts in Hong Kong? How is it going to impact on the company's CAC going forward? Thank you.

[Moderator]

Okay. So overall, we are quite satisfied with our operating performance quarter to date. In terms of trading activity, the average monthly number of shares traded on our platform in the, say, past two months has been higher than the monthly average in the second quarter. Since we earned commissions based on the numbers of shares traded in The U. S.

[Moderator]

Stock market, commission revenue so far in the third quarter has been on target. Regarding client assets, there has been a high single digit increase compared to the end of the second quarter. A significant part of this increase has been driven by mark to market gains. The trend in the net asset inflow is also quite positive, especially with retail clients contributing a large portion of this growth. As for the new funded accounts, we remain committed to our second quarter customer acquisition strategy of prioritizing user quality and net asset inflows.

[Moderator]

We are glad to see a meaningful improvement in the contribution from the Hong Kong market, which now almost matches the contribution from Singapore. Since the quality of users in Hong Kong is the highest across all the market we enter, we are confident in maintaining the user quality of the new funded accounts in the third quarter.

[John Zeng, CFO & Director at UP Fintech]

So in the second quarter and third quarter so far, we stepped up our investment in the Hong Kong market. We organized and participated in numerous offline events and exhibitions, actively engaging with the local community. Our goal is to boost brand awareness and increase customer engagement, Combining offline activities with innovative fintech solutions and incentives, we were able to reach a bigger pile of local investors. We have seen tangible results, both in the user quality and client asset. For example, in the second quarter, the average net asset inflow per NIO Hong Kong funded users reached around US30000 dollars which contributed to a roughly 50% quarter over quarter increase in overall client assets in Hong Kong.

[John Zeng, CFO & Director at UP Fintech]

So far in the third quarter, the number of new funded accounts in Hong Kong has now nearly matched the growth we have seen in Singapore. Our accelerated expansion in Hong Kong not only creates a healthier, more sustainable growth, but also deepen our understanding of the local market. Over the past two years, our dedicated efforts have started to pay off. Going forward, we will continue to speed up our efforts in Hong Kong, and you will see more Tiger events to drive user growth and brand awareness. Regarding CAC, since we started ramping up our customer acquisition in Hong Kong in the second quarter, the average CAC is around 400 plus.

[John Zeng, CFO & Director at UP Fintech]

It's relatively higher than other markets, but the pay back period remains quite healthy, about two quarters on the current market conditions. For third quarter and the rest of the year, we expect the average CAC in Hong Kong to fluctuate based on our marketing strategy. We anticipate it will stay around this level. Thanks.

[Moderator]

Thank you.

[Operator]

We will now take the next question from the line of Dennis Bai from UBS. Please go ahead.

[Dennis Bai, Analyst at UBS Group]

So big con congratulations to the set of strong results, and I'm Dennis from UBS. I have two questions. The first is about, could you please give a breakdown of the newly added customers with deposits across different regional markets? And the second is we have noticed that the newly added customers with deposits in the second quarter declined quarter over quarter. What's the reasons behind?

[Dennis Bai, Analyst at UBS Group]

And how do you view the growth looking forward? Thank you.

[Moderator]

For the first question about the regional breakdown of new funded accounts. In the second quarter, about 50% of newly funded accounts came from Singapore and Southeast Asia region, approximately 30% were from Hong Kong and the Greater China area, 15% from Australia and New Zealand market and around 5% from The U. S. Market. In the second quarter, we added nearly 40,000 new users.

[Moderator]

They believe this number fully meets our expectations, both in terms of annual targets and customer acquisition pace. From another perspective, though the number is a bit lower than the first quarter, the main reason includes the impact of tariff war in April, some investor sentiment fluctuates and most importantly, targeted adjustments we made to our customer acquisition channels. This included shutting down some low quality, low ROI channels and posting certain online advertisements in Singapore to ensure the high quality user base. Overall, these adjustments have been proved to be effective. We place great emphasis on increasing client assets and maintaining a healthy net asset inflow mix.

[Moderator]

As mentioned earlier, the average net asset inflow of newly acquired clients exceeded US20000 dollars and in Singapore and Hong Kong, it even reached about 30,000. More importantly, the nearly 40,000 new users in Q2 contributed more net asset inflow in the quarter than the over 60,000 new users in the first quarter. Additionally, our overall customer acquisition cost decreased by about 10% compared to the first quarter. So looking ahead, whether from an efficiency perspective or on a profitability standpoint, we plan to continue optimizing and dynamic adjust our customer acquisition strategies by focus on user quality and client assets. Thanks, Dennis. Operator, is there any other questions?

[Operator]

There is no further questions. I would now like to turn the conference back to Aaron Li for closing remarks.

[Aaron Li, Head - IR at Tiger Brokers]

Okay. I'd like to thank everyone for joining our call today. I'm now closing the call on behalf of the management team here at Tiger. We do appreciate your participation in today's call. If you have any further questions, please reach out to our Investor Relations team.

[Aaron Li, Head - IR at Tiger Brokers]

This concludes the call, and thank you very much for your time. Bye bye.

[Operator]

This concludes today's conference call. Thank you for participating. You may now disconnect.

[John Zeng, CFO & Director at UP Fintech]

Thank you.

Participants

Executives

• John Zeng, CFO & Director

Analysts

• Aaron Li, Head - IR at Tiger Brokers
• Moderator
• Cindy Wang, Director at China Renaissance
• Judy Zhang, Vice President & Equity Analyst at Citi
• Dennis Bai, Analyst at UBS Group