UP Fintech Holding, operating as Tiger Brokers, reported second-quarter 2026 revenue of $182.3 million, up 31.4% from the same period last year and 17.7% sequentially, exceeding the $150 million estimate by 21.5%. Adjusted earnings per share totaled $0.23, surpassing the consensus forecast of $0.194 by 18.6%. The company returned to profitability with GAAP net income of $39.4 million and non-GAAP net income of $42.8 million, following a $59.7 million regulatory penalty in the prior quarter.
Total client assets grew 16.7% year-over-year to $60.7 billion, while new funded accounts increased by 35,600 to 1.32 million. Geographic expansion drove growth, with U.S. client assets rising nearly 50% quarter-over-quarter, Hong Kong and Singapore contributing over $1.5 billion in net inflows, and Australia and New Zealand up more than 30%. Commission income rose 21% year-over-year to $78.3 million, with cash equities accounting for 71% of the total, options 24%, and the remainder from futures and other products.
Interest income climbed 36% year-over-year to $79.8 million, offsetting a 47% rise in total operating costs to $103.9 million. Employee compensation and benefits surged 39% due to severance costs from a group reorganization, while marketing expenses jumped 87%. The cash equity take rate fell to 3.6 basis points from 5.9 basis points in Q1, reflecting high trading volumes in low-fee AI and semiconductor stocks and zero-commission U.S. trading.
Mainland China retail outflows totaled approximately $500 million in Q2, primarily between May 22 and June 12, reducing their share of total client assets to under 10% and revenue contribution to 15%-20%. The company repurchased about $5 million of ADSs under a $50 million buyback program announced in June. Shares slipped 3.02% in premarket trading to $5.30, following a 52-week range of $4 to $13.42.
Management noted trading volumes and commissions in Q3 were tracking slightly below Q2 levels due to market pullbacks, though client assets and net inflows remained robust. Average customer acquisition cost is expected in the $450-$550 range, with the cash equity take rate anticipated to recover somewhat as share prices adjust. The effective tax rate is projected to normalize to 10%-15% in the second half.
