Detailed narrative
Regulatory Impact and Mainland China Client Strategy
On May 22, new industry-wide regulations were rolled out by China's securities regulator concerning cross-border trading for Mainland investors. The company received a one-time📎 penalty of RMB 411 million (approximately $60 million), which has been fully accounted for in Q1 results and is not expected to materially affect core operations.
The new rules shift regulatory approach to territory-based oversight, restricting onshore marketing and app availability within Mainland China, which the company had already complied with by May 2023.
Client Asset Trends and Recovery
Despite market turbulence causing $4.9 billion in mark-to-market losses and a 3.2% quarter-over-quarter decline in total client assets to $58.9 billion by Q1 end, the company saw robust year-over-year growth of 28.4%. In Q2-to-date, these mark-to-market losses have been fully recovered, and healthy net asset inflows continued across overseas markets, with U.S. client assets rising nearly 40% QoQ and Australia, New Zealand, and Hong Kong posting high single-digit to double-digit QoQ growth.
Product Enhancements and AI Integration
UP Fintech continues to enhance its platform with significant feature updates. A major upgrade to Tiger AI introduced a multi-agent architecture, integrating market core search, analysis, and risk control into stand-alone AI agents, boosting accuracy. A dedicated AI agent for futures was launched, and Tiger AI upgraded to a three-mode collaborative system by integrating with a cloud model, improving intelligent service capabilities.
New derivative features, including Hong Kong index option trading and TRAC orders, were also rolled out.
2B Business Performance
The company's 2B business demonstrated strong performance in Q1 FY26. This included participation in 10 Hong Kong IPOs, covering leading AI companies, and successfully completing two large-scale U.S.-backed IPOs. Demand for Hong Kong IPO subscriptions remained robust, with total subscription amounts on the platform exceeding HKD 1 trillion year-to-date.
The ESOP business added 42 new clients, bringing the total to 790 by the end of March 2026, reflecting sustained market demand for professional ESOP and digital management solutions.
Customer Acquisition Strategy and Efficiency
The company prioritizes user quality, focusing on client assets and net asset inflow as core KPIs for acquisition efficiency. The ratio of customer acquisition cost to quarterly retail net asset inflow was approximately $170 in Q1 FY26, compared to $150 over the past four quarters and $120 in the year prior, indicating effective acquisition of high-quality users.
Singapore and Hong Kong accounted for over 75% of new funded accounts, with Australia, New Zealand, and the U.S. contributing the remainder.
Mainland China Client Contribution
Mainland retail investors' assets under consolidated accounts represented approximately 10% of total client assets and contributed between 20% to 25% of total net revenue as of the end of Q1 FY26. Following the new regulatory rules, some short-term asset outflow from Mainland retail accounts was observed, but management expects stabilization, noting that overseas markets remain unaffected and continue to record net asset inflows.