Aug 26, 2026 earnings call — Record revenue and return to profitability
Total revenue reached USD 182 million, an all-time high, and GAAP net income was USD 39.4 million, returning to profitability.
Revenue $0.2B (est $0.2B) · EPS $0.23 (est $0.21)
Key quotes
"Our total revenue for the quarter reached USD 182 million, an all-time high, representing a sequential increase of 17.7% and a year-over-year growth of 31.4%."
"In the Singapore market, we further strengthened our localized trading capability by launching fractional share trading for Singapore listed stocks and REITs, which effectively lowered the trading entry barriers, making local investment more accessible and friendly to beginners."
"Mainland retail users saw net asset inflow of about USD 500 million in the second quarter, most of them between May 22 and June 12."
Analyst Q&A 3
Other loss and tax rate; Q3 trends
Q (You Fan · CICC): The analyst asked why there was an over USD 2 million loss in the “other” line and why Q2 tax rate was nearly 28%, and what the normalized tax rate should be. They also asked for Q3 run-rate metrics: trading velocity, client assets and new funded accounts.
A: They said the roughly USD 2 million loss was mainly an FX loss from RMB appreciation and U.S. dollar depreciation and is noncash. They expect a normalized effective tax rate in the 10% to 15% range; Q2 was higher due to a roughly USD 1 million deferred tax write-down tied to share-based awards and a nondeductible May 22 penalty that added about USD 6 million. Quarter-to-date in Q3, client assets grew with more than USD 1 billion from net inflow and mark-to-market gains, trading volume and commissions are running slightly below Q2, and new funded users are flat or up with average net asset inflow about $25,000 per new user.
"This was mainly an FX loss driven by the continued appreciation of the RMB and the corresponding depreciation of the U.S. dollar during the second quarter." — John Zeng (CFO)
Regulatory changes and Mainland client impact
Q (Yun-Yin Wang · China Renaissance): The analyst asked for updates after the May 22 regulatory actions: any new policies, and whether Mainland clients have stabilized for trading, churn and asset flow and how their share of assets and revenue changed. They also asked why cash equity take rate fell and the trend.
A: They said they implemented required monitoring on June 12 to restrict onshore activities and have not received further policy changes. Mainland retail users had about USD 500 million net inflow in Q2, now account for under 10% of total client assets, and their revenue contribution fell to the 15% to 20% range in Q2; the outflow impact has largely run its course. For cash equity take rate, it fell from 5.9 bps to 3.6 bps because AI and semi stocks traded at high prices with very low take rates, the NASDAQ rally raised average share prices (lowering per-share take rate), and some high-frequency U.S. local clients traded commission-free; they expect some recovery in Q3.
"As I mentioned earlier, cash equity take rate went down from 5.9 bps in the first quarter to 3.6 bps in the second quarter for several reasons." — John Zeng (CFO)
New accounts geography and higher marketing costs
Q (Emma Xu · BofA): The analyst asked the geographic split of new funded accounts in Q2 and why marketing expense and CAC rose, including split between acquisition and reengagement, where spend increased, and CAC outlook for H2.
A: They said over 70% of new funded accounts in Q2 came from Singapore and Hong Kong (split roughly even), Australia and New Zealand contributed around 25%, and the rest came from the U.S. They said marketing spending excluding FCN rebates rose about USD 2.5 million quarter-over-quarter and average CAC rose from around USD 420 in Q1 to about USD 450 in Q2; roughly 60% to 70% of marketing was for brand building focused in Hong Kong and Singapore, and they expect average CAC to be around USD 450 to USD 550 in the second half.
"Excluding the FCN rebates, marketing spending was up about USD 2.5 million quarter-over-quarter, and average CAC rose from around USD 420 in Q1 to about USD 450 in Q2." — John Zeng (CFO)