UP Fintech disclosed financial results for the quarter ended June 30, 2026 during an August 26 earnings call, posting its highest revenue on record alongside a significant swing from the prior quarter’s loss to profitability.
Revenue climbed 31.4% on a year-over-year basis and 17.7% sequentially to reach $182.3 million. The company reported GAAP net income of $39.4 million, a reversal from the first quarter’s $26.9 million loss, which had been attributable to a one-time penalty related to a May 22 rectification classified as a nondeductible tax expense. Commission income advanced 21% year over year and 17% quarter over quarter to $78.3 million, while interest income rose 36% year over year and 24% sequentially to $79.8 million. New funded accounts expanded 12.7% quarter over quarter to 32,600, with total funded accounts reaching 1.32 million, up 10.3% year over year. Total client assets increased 3.1% quarter over quarter and 16.7% year over year to $60.7 billion, aided by $1.5 billion in net inflows from retail clients in Singapore and Hong Kong.
The growth concentration in Asia reflected the company’s strategic focus, with over 70% of new account additions originating from Singapore and Hong Kong. Hong Kong local account balances alone grew nearly 30% quarter over quarter. UP Fintech expanded its product offerings in these markets, launching fractional share trading for Singapore-listed stocks and REITs, and rolling out Cboe index options in Hong Kong. The company also underwrote 14 Hong Kong IPOs during the quarter, compared with four US IPOs. Its employment stock ownership plan business added 50 clients, bringing total clients served to 840.
The expansion strategy came with elevated operating costs. Marketing and branding expenses surged 86.6% year over year to $18.4 million, and the average customer acquisition cost rose to $450 from $420 the previous quarter, with management projecting a range of $450 to $550 for the second half of 2026. Employee compensation and benefits increased 39.4% year over year to $50 million due to severance expenses related to business unit reorganization. Communication and market data costs climbed 56.4% year over year to $16.2 million, and general and administrative expenses rose 44.6% year over year to $9.8 million.
Margins also compressed at the trading level, with the cash equity take rate declining to 3.6 basis points from 5.9 basis points the prior quarter, attributed to high-frequency traders increasingly using the company’s US subsidiary offering zero-commission trades. Mainland China’s revenue share fell to 15% to 20% from 20% to 25% in the first quarter following the implementation of a monitoring mechanism on June 12 to restrict onshore activity by Mainland users, while its share of client assets dropped below 10%. Management indicated that trading volume and commissions were trending slightly below the second quarter pace heading into the third quarter amid broader market conditions.
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