Tiger Brokers Turns the Page: Record Revenue as Mainland Exposure Fades

A Record Quarter Built on a Shifting Foundation

UP Fintech's second-quarter 2026 results mark a clear inflection point. Total revenue reached $182 million, an all-time high, up 31% year-over-year and 18% sequentially. The growth was broad-based: commission income rose 21% YoY to $78.3 million, while interest income surged 36% to $79.8 million. CFO John Zeng framed it simply: “Commission income was $78.3 million, increased 21% year-over-year and 17% quarter-over-quarter.” — John Zeng, Management / Executive · 2026-08-26 Operating profit reached $56.8 million, returning to profitability after the previous quarter’s one-off penalty dragged the bottom line into a loss.

The most significant strategic shift is what management did not dwell on: the reduction in Mainland China retail exposure. The May 22 regulatory action remains the elephant in the room. In the current call, CEO Tianhua Wu confirmed that “Mainland retail users now accounts for under 10% of our total client assets, down further from before.” — Tianhua Wu, Management / Executive · 2026-08-26 This is a dramatic change from the start of the year, when Mainland clients contributed roughly 10% of assets and 20–25% of revenue, as disclosed on the prior call. The speed of the pivot is remarkable: the company is rebuilding its base around Hong Kong, Singapore, and Australia/New Zealand, with client assets growing quarter-over-quarter in every market.

The Cash equity take rate became the quarter's defining metric — it dropped from 5.9 bps to 3.6 bps, a 39% decline. Management attributed this to a mix shift toward high-priced AI and semiconductor trades, a rising NASDAQ, and the growing volume of zero-commission U.S. client flow. As Zeng explained, “The first 2 factors are market-driven, so the trend is hard to predict.” — John Zeng, Management / Executive · 2026-08-26 The take-rate compression is a real concern for investors, but the regulatory update that reshaped the client base had a more lasting impact.

So with those net asset inflows, Mainland retail users now accounts for under 10% of our total client assets, down further from before. And their revenue contribution has come down from the 20% to 25% range in full year 2025 and Q1 to a 15% to 20% range in Q2.

Pivoting to Quality: The New Geography of Growth

The most telling number may be the quality of new users. Average net asset inflow per new funded account rose from under $20,000 in Q1 to over $25,000 in Q2, and management expects that trend to continue. On the Q3 run rate, Wu noted “so far in Q3, the average net asset inflow per new funded user has risen further versus Q2 to around $25,000, which is in line with our quality-first approach to client acquisition.” — Tianhua Wu, Management / Executive · 2026-08-26 This is a deliberate strategy: spending more on branding in Hong Kong and Singapore while pulling back from low-ROI channels.

That shift is also visible in the expense line. Marketing expense jumped 87% YoY to $18.4 million, with the incremental spend going primarily into Hong Kong and Singapore brand campaigns — including a SpaceX-themed campaign and a World Cup TV ad. The company expects CAC to settle in the $450–$550 range for the second half, a level that would have seemed unthinkable a year ago but is now justified by the quality of clients.

The global business is now the undisputed growth engine. Client assets grew 16.7% YoY to $60.7 billion, with double-digit growth in Hong Kong for five straight quarters. The company added 32,600 new funded accounts, with Singapore and Hong Kong contributing over 70% of them. While Mainland revenue share has fallen to the 15–20% range, the overall revenue mix is more diversified and arguably more resilient.

What Changed — and What It Means

The bottom line story is not just the record revenue — it's how the company has repositioned itself under pressure. The regulatory shock, which initially looked like a setback, has forced Tiger Brokers to double down on its internationalization strategy. As Wu put it, “More importantly, our core growth engine is our global business.” — Tianhua Wu, Management / Executive · 2026-08-26 That message was repeated across the call, and it's supported by the numbers: every major market grew client assets sequentially.

However, the new fund account growth is slowing — the 32,600 added is below the 39,000 in Q1 and well off the 60,000 pace of earlier quarters. Management remains confident in the annual guidance, but the trade-off between quantity and quality is now explicit. The Cash equity take rate will continue to be a closely watched KPI, especially if zero-commission momentum in the U.S. accelerates.

Contrasting with the prior call, where the tone was defensive and the outlook uncertain, this quarter felt like a turning point. The company has absorbed the penalty, adjusted its client base, and is now growing from a cleaner, more global foundation. Whether that yields sustained profitability remains to be seen, but the direction is unmistakable.