Earnings call transcript: TigerLogic Q2 2025 revenue surges 55%

UP Fintech Holding Limited, also known as TigerLogic, reported a strong second quarter in 2025, with total revenue reaching $122.6 million, marking a 55.3% increase year-over-year. The company, currently valued at $1.48 billion, saw significant growth across various segments, including commission income and net interest income. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value model, suggesting potential upside opportunity. Despite these gains, the company’s stock price remained unchanged in recent trading sessions, trading at $8.43.

Key Takeaways

• Total revenue increased by 55.3% year-over-year.
• Commission income more than doubled compared to the previous year.
• Tiger AI user satisfaction exceeded 80%.
• The company added 60,900 new funded accounts, a 111.2% increase year-over-year.

Company Performance

TigerLogic’s performance in the second quarter of 2025 was marked by substantial growth in several key areas. The company reported a 55.3% increase in total revenue compared to the same period last year, driven by strong commission income and net interest income. InvestingPro data shows the company maintains an impressive 83.8% gross profit margin and has achieved a 46.6% revenue growth over the last twelve months. The growth was particularly notable in the Singapore and Greater China regions, where trading volumes and client assets saw significant increases.

Financial Highlights

• Total Revenue: $122.6 million, up 55.3% year-over-year
• Commission Income: $58.3 million, more than doubled year-over-year
• Net Interest Income: $53.8 million, up 22.7% year-over-year
• GAAP Net Income: $30.4 million, up 8.4% quarter-over-quarter and 146.7% year-over-year
• Non-GAAP Net Income: $36 million, up 18.3% quarter-over-quarter and 145% year-over-year

Outlook & Guidance

Looking ahead, TigerLogic aims to acquire at least 150,000 new funded accounts in 2025. The company also anticipates a 10-20% growth in headcount per year. However, it expects customer acquisition costs to rise to between $250 and $300. The company plans to increase its marketing spend in the second half of 2025 to support these goals.

Executive Commentary

Wu Tianhua, CEO of TigerLogic, emphasized the company’s strong market position, particularly in Hong Kong. "Whether we look at its status as the global financial hub or the high quality of its user base, Hong Kong remains a very compelling market," he stated. CFO Zhang Zheng highlighted the company’s commitment to technology, saying, "We will continue to invest in product and R&D to maintain our competitive edge as technology is the core of our platform."

Risks and Challenges

• Potential impacts of Federal Reserve rate cuts on revenue.
• Rising customer acquisition costs could affect profitability.
• Increased competition in key markets like Hong Kong and Singapore.
• Dependence on technology-driven innovations to maintain competitive advantage.

Overall, TigerLogic’s strong financial performance in Q2 2025 reflects its robust market position and effective growth strategies, although challenges such as rising costs and competitive pressures remain. InvestingPro assigns the company a "GREAT" Financial Health score of 3.17, with particularly strong ratings in growth (3.78) and cash flow (3.56). Analysts maintain a positive outlook, with consensus price targets suggesting potential upside. For detailed insights into TigerLogic’s valuation, growth prospects, and over 30 additional financial metrics, check out the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Full transcript - TigerLogic Corporation (TIGR) Q1 2025:

Nadia, Conference Operator: Ladies and gentlemen, thank you for standing by, and welcome to the UP Fintech Holding Limited First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in listen only mode. There will be a presentation followed by the question and answer session. I must advise you that this conference is being recorded today, 05/30/2025. I would now like to hand the conference over to our first speaker today, Mr.

Arun Li, the Head of Investor Relations. Thank you. Please go ahead.

Arun Li, Head of Investor Relations, UP Fintech: Thank you, Nadia. Hello, everyone, and thank you for joining us for the call today. UP Fintech Coding Limited’s first quarter twenty twenty five earnings release was distributed earlier today and is available on our IR website at ir.itigerup.com as well as GlobeNewsFire Services. On the call today from UP Fintech are Mr. Wu Tianhua, Chairman and Chief Executive Officer Mr.

Zhang Zheng, Chief Financial Officer Mr. Fang Lei, CEO of US Tiger Securities and Mr. Kenny Zhao, our Financial Controller. Mr. Wu will give an overview of our business operations and discuss corporate highlights.

Mr. Song will then discuss our financial results. They will both be available to answer your questions during the Q and A session that follows the remarks. Now let me cover the safe harbor. The statements we are about to make contain forward looking statements within the meaning of The US 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 statements. 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, 05/30/2025, and our annual report on Form 20 F filed on 04/23/2025. 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 an English translation. Mr. Wu, please go ahead with your remarks. Hello, everyone.

Thank you for joining the Tiger Brokers first quarter twenty twenty five earnings In the first quarter, our total revenue reached US122.6 million dollars up 55.3 year over year. Despite heightened volatility in the Hong Kong and The US markets, trading activity remained strong. As a result, total trading volume reached $217,000,000,000 US dollar, driving commission income to a record high of 58,300,000.0 US dollar, more than doubling year over year. In addition, marketing financing and securities lending balance increased to 5,200,000,000.0 US dollar, increased 89.4% year over year.

Net interest income reached 53,800,000.0 US dollar increased 22.7% year over year. On our bottom line, continued growth in our user base and rising ARPU driven by product diversification helped us further leverage fixed operation costs, leading to stronger, more sustainable profitability. Non GAAP net income attributable to Outfintech increased to 36,000,000 US dollar, reflecting an 18.3% sequential increase and a 145% increase year over year. GAAP net income attributable to our fintech reached 30,400,000.0 US dollar, up 8.4% quarter over quarter and and 146.7% year over year. Both net income and profit margin set record high and this continued improvement in earnings quality gives us greater flexibility to pursue strategic initiatives and further accelerate long term growth.

In the first quarter, we added 60,900 new funded accounts, which accounts for over 40% of our fully target of acquired at least 150,000 new funded accounts in 2025 and representing a 2.9% increase quarter over quarter and a strong 111.2% growth year over year. The total number of funded accounts reached 1,152,900 as of the end of the first quarter, an increase of 23.5% year over year. In terms of client assets, net inflow remained strong, reaching US3.4 billion dollars for the quarter, driven primarily by retail clients in Singapore and Greater China region. Combined with approximately US780 million dollars in mark to market gains, total gland assets reached a record high of 45,900,000,000.0 US dollar, up 9.9% quarter over quarter and 39.5% year over year, marking our tenth consecutive quarter of growth. In addition, client assets from the Greater China region increased by over 20% quarter over quarter.

Also, we are encouraged to see the average net asset inflow of newly acquired clients from the Hong Kong market in the first quarter exceeded 30,000, demonstrating the growing trust and engagement they’ve built in the market during the two years after entering. Following the success in Singapore, Hong Kong has become a key strategic market where we are investing further to deepen our presence. In the first quarter, we continue to enhance our product offerings and improve user experience. On the AI front, we officially upgraded TigerGPT to Tiger AI, marking a significant step forward in the personalization and intelligence. The upgrade expanded our AI capability from a single model to a dual model architecture and introduce new features that allow integration with users’ watch list and portfolio data.

This allows Tiger AI to deliver more personalized and relevant investment insights. Following the upgrade, user satisfaction with Tiger AI exceeded 80%. As for crypto, following type one license uplift, Tiger Brokers Hong Kong has now received approval from the Hong Kong SFC to offer virtual asset trading, deposit, and withdrawal services to both retail and professional investors. This means not only can we support multi asset classes within a single account, while also building greater synergy between traditional investors and digital asset holders, laying the groundwork for increased market participation and advisory activity. In addition, we recently launched the equity repo and delivery versus payment features, significantly improving the efficiency of our stock borrowing and lending operations and strengthening our service capability for institution and high net worth clients.

In our corporate business, we enrolled four Hong Kong IPOs in the first quarter, including Chip and Go and Nanshan Aluminum and participated in Mishia Group’s IPO, which set new record for IPO subscription amount in the Hong Kong market. And total subscription amount for this IPO exceeded HKD 100,000,000,000 on our platform. In our ESOP business, we added 20 new clients in the first quarter, bringing the total number of Easoft clients served to six thirty three as of 03/31/2025, increased by 14% year over year. Now I’d like to invite our CFO Zhang to go over our financials.

Zhang Zheng, Chief Financial Officer, UP Fintech: Great. Thanks, Tianhua and Aaron. Let me go through our financial performance for for the first quarter. All numbers are in US dollar. Committed income was 58,300,000.0, increased 4% quarter over quarter and more than doubled year over year.

Interest income was 53,800,000.0, increased 23 year over year, but slightly decreased 4% quarter over quarter. The slight decrease was due to majority of our US treasury holdings were matured in the fourth quarter. So in this quarter, we had a one time decrease of 1,500,000.0 in interest income. Together, total revenue reached 122,600,000.0, up 55.3% year over year. Cash equities take rate was 6.7 bps this quarter, slightly decreased from 6.9 bps of last quarter.

Within commission revenue, about six about 65% comes from cash equities, 30% from options, and the rest from future and other products. Now to cost. Interest expense was $50,000,000 decreased 10% quarter over quarter, in line with the decrease in interest income and slightly increased 2% compared to the same quarter of last year. Execution and clearing expense were $5,300,000 increased 139% from the same period last year, in line with the increase in commission and trading volume. Employee compensation and benefits expense were 33,800,000.0, an increase of 22 year over year due to headcount increase to strengthen overseas growth and R and D.

Occupancy depreciation and amortization expense were $2,100,000 remained flat year over year. Communication and market data expense were $9,800,000 an increase of 14% year over year due to the increase in user base and IT related service fees. Marketing expenses were $10,900,000 this quarter, increased 148% year over year, as market condition is more favorable versus a year ago for user acquisition. General and administrative expenses were $5,100,000 a decrease of 5% year over year due to a decrease in professional service fees. Total operating costs were $67,100,000 an increase of 32% from the same quarter of last year.

As a result, bottom line increased on both GAAP and non GAAP basis. GAAP net income were $30,400,000 up 8.4% quarter over quarter and 146.7% year over year. Non net income were 36,000,000, an 18.3% increase quarter over quarter and a 145% increase year over year. The non GAAP net profit margin expanded from 25% in the previous quarter to nearly 30% this quarter. Now I have concluded our presentation.

Operator, please open the line for Q and A. Thanks.

Nadia, Conference Operator: Thank you, dear participants. If you would like to ask a question, please press 11 on your telephone keypad and wait for your name to be announced. To withdraw a question, please press 11 again. Once again, if you would like to ask a question, please press 11. And now we’re going to take our first question.

And the question comes from the line of Cindy Wang from China Renaissance. Your line is open. Please ask your question.

Cindy Wang, Analyst, China Renaissance: Thanks for taking my question and congrats for the great first quarter results. I have two questions here. First, with markets remaining volatile in second quarter, how have these affected the company’s run rate so far? And could you share any early trends around trading volume, client assets and newly funded accounts? Second, company saw further improvement in profitability in first quarter.

Looking ahead, how should we think about the cost, particularly like headcount and customer acquisition? Can you provide us some guidance on the outlook for customer acquisition cost? Thank you.

Arun Li, Head of Investor Relations, UP Fintech: Okay. I’ll translate for this part. Overall, we are quite pleased with how things are shaping up in the second quarter so far. In terms of trading volume, we saw a significant pickup in market volatility in April, mainly driven by the concerns over the tariff. That actually pushed our monthly trading volume to a new record, crossing $100,000,000,000 for the first time in our history.

So far in Q2, we’ve seen an improvement compared to the same period in the Q1. And it’s hard to predict what headline news might emerge in June, but we will be closing sorry, closely monitoring market activity throughout the month. And in terms of client assets, net asset inflow remained strong throughout April and May, continuing the solid pace we saw in the first quarter. Both institution and retail clients across all of our licensed markets contributed positively. And starting from late April, the market rebound helps drive some meaningful mark to market gains as well.

As of now, client assets already set another record high and increased by around double digits compared to the end of the first quarter. And when it comes to the new funded accounts, during the increased market volatility in q two, we made dynamic adjustment to our acquisition strategies. So we expect the number of new funded users will decrease compared to the high base in the Q1. While the user quality remained healthy and net asset inflow continued to be robust, Therefore, we are confident to meet our annual guidance of acquiring at least 150,000 new family users this year. Yes.

Zhang Zheng, Chief Financial Officer, UP Fintech: Okay, now So in regards to labor cost, we will continue to invest in product and R and D to maintain our competitive edge as technology is the core of our platform. At the same time, we will be expanding our team in key markets like Hong Kong and The US, and of course functions from front office to back office. Let me say, our overall headcount growth will remain disciplined. We expect compensation expense to grow about 10 to 20% per year. We will invest more in customer acquisition to build stronger brand and penetrate deeper into our core markets.

The pace of our marketing spending will be based on market conditions. By the way, expect to spend more in the second half of this year. Our average CAC is between 150 to 180 through 2024 and the first quarter of twenty twenty five. For the next few quarters, we expect the average CAC to rise to around $2.50 to 300 US dollar. There are two key reasons for this.

First of all, we will beef up our efforts in high value markets like Hong Kong, where the quality of users is significantly higher. From a payback perspective, a higher CAC in those markets is acceptable. We’re also ready to invest more in brand and user awareness. This type of investments might not yield immediate conversions, which can push up CAC in the short term, But they are important for our long term growth and the brand awareness. Thanks.

Arun Li, Head of Investor Relations, UP Fintech: Thank you. Lydia, please go for the next question.

Nadia, Conference Operator: Thank you. Now we’re going to take our next question. And the next question comes from the line of Emma Xu from Bank of America. Your line is open. Please ask your question.

Cindy Wang, Analyst, China Renaissance: So congratulations on another quarter of strong growth. I have two questions. The first one is about net asset inflow. It was particularly strong in the first quarter, contributing to a double digit increase in your total client assets. So could you elaborate on the breakdown of lease inflows in terms of regions and account types?

The second question is about your interest income. We can see that your margin financing and security lending balances grew around 15% in the first quarter, yet the net interest income remained flattish sequentially. Was this primarily driven by the declining interest rate? If the Fed cuts interest rate twice this year, say, by 25 bps each time, what will be the estimated impact on your P and L?

Arun Li, Head of Investor Relations, UP Fintech: In the first quarter, we recorded about US3.2 billion dollars in net asset inflows. Around 60% of them came from the users in the Greater China area, 30% from Singapore, and the remaining 10% from US and Australia New Zealand markets. Overall, roughly 60% of net asset inflow were contributed by retail clients.

Zhang Zheng, Chief Financial Officer, UP Fintech: Okay. Okay, so the gross margin financing and security lending balance was mainly driven by more active market backdrop. Our net interest income from margin financing alone actually increased quarter over quarter despite the rate cut implication. The reason our total net interest income remained flat this quarter is because a larger portion of our US treasury investment mature at the end of last year, which had a quarter over quarter impact of 500,000.0 US dollar. As for the impact of future records, we estimate that for every 25 bps cut by the Federal Reserve, our quarterly net interest income would be negatively impacted by about $1 to $1,500,000 is about roughly 1% of our quarterly revenue.

Thanks.

Arun Li, Head of Investor Relations, UP Fintech: Thanks, Emma. Operator, please proceed to next question.

Nadia, Conference Operator: Thank you. Now we’re going to take our next question. And the question comes from the line of Yu Fan from CICC. Your line is open. Please ask your question.

Yu Fan, Analyst, CICC: Thanks management for taking my questions. This is Youyoufan from CICC. I have two questions here. The first one is that we see the strong new customer acquisition this quarter. Could you please provide a regional breakdown of the newly funded accounts in Q1?

The second question, could you please update on your progress in the Hong Kong market during Q1? And how you view the market opportunity and the strategic focus going forward considering the recent Ant Group’s merger with BrightSmart Securities while this intensified local competition? Thank you.

Arun Li, Head of Investor Relations, UP Fintech: In the first quarter, about 45% of newly sanitized came from Singapore and Southeast Asia. Around 35% were from the Greater China region. And Australia, New Zealand and The US market each accounted for about 10%. Hong Kong has always been a highly competitive market and the recent merge between Ant Group and Bright Smart Securities, in our view, future validates the attractiveness of this market. Whether we look at its status as the global financial hub or the high quality of its user base, Hong Kong remains a very compelling market.

With more players entered simply highlights the long term potential of this market. And from our perspective, increased competition is a good thing for local users. It raised the bar for the entire industry and encourages all of us to keep improving. As a tech driven brokerage, Tiger has already built strong barriers across different key areas. This include our clearing efficiency for Hong Kong and US equities, a robust product set, especially in The US derivatives, virtual asset trading capabilities, and the deep integration of AI in the in the in the investment process, All of which set set us apart.

We’ve also introduced some product that differentiation to better serve local users. For example, our trading commission are generally lower than the most platforms in this market, and our emerging market fund yields are comparatively attractive. These are just a few ways we are delivering real value to users. So looking ahead, we plan to continue invest in both talent and marketing in Hong Kong with the goal of delivering a superior product experience. We are confident that with time, continued optimization, and consistent execution, we will be able to secure a meaningful share of the Hong Kong market.

And here are some highlights about the Q1 operational highlights about the Hong Kong market. Firstly, thanks to the high average client assets and strong trading velocity, ARPU from our Hong Kong users remained the highest among all the market we enter. In the first quarter, new funded clients in Hong Kong brought in an average net asset inflow of over 30,000 US dollar. Secondly, client assets in Hong Kong continued to grow at a strong pace, up more than 20% quarter over quarter and over four times year over year, marking it one our third largest market in terms of asset under custody. In March, we officially rolled out the upgraded Tiger AI for Hong Kong users.

Now it’s available with unlimited free access. Powered by world class leading language AI models and our market data, Tiger AI is designed to help users analyze investments more efficiently and make smarter decisions. Thank you. Operator, next question, please.

Nadia, Conference Operator: Yes. This for today. I would now like to hand the conference over to Arun Lee for any closing remarks.

Arun Li, Head of Investor Relations, UP Fintech: Thank you. 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.

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

Nadia, Conference Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect. Have a nice day.

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