Question · Q3 2025
Dennis Bai from UBS asked about the rising trend in client acquisition cost (CAC), requesting a breakdown by market for Q3 2025 and an outlook for Q4 and next year. He also questioned the significant quarter-over-quarter increase in interest income despite a relatively flat margin financing and stock lending balance.
Answer
CFO John Zeng explained that CAC fluctuates due to prioritizing user quality and ROI, with Singapore's CAC rising to over $400 due to attracting high-net-worth users, while Hong Kong's remained stable at $300-$400. He attributed interest income growth to increased client idle cash from asset growth and retained earnings, plus a shift towards higher-spread margin financing and securities lending within a flat overall balance.
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