Executive Summary / Key Takeaways

• Webull Corporation has achieved three consecutive quarters of operating profitability, reporting a Q2 2025 adjusted operating profit of $23.3 million on revenues of $131.5 million, demonstrating strong operating leverage as revenue growth significantly outpaced expense increases.
• The company is capitalizing on a "technology-induced tectonic shift" in retail investing, expanding its multi-asset platform to include equities, options, prediction markets, and a relaunched crypto trading offering across 14 global markets, with crypto expected to be a significant top-line accelerator.
• Customer assets under management (AUM) reached an all-time high of $15.9 billion in Q2 2025, growing 64% year-over-year, driven by substantial net deposits and the successful adoption of Webull Premium, a subscription service attracting high-quality, active traders.
• Webull is well-capitalized, having raised over $200 million from incentive warrants and secured access to an additional $1 billion through a standby equity purchase agreement, which will strategically fund product innovation and continued global expansion.
• While facing competitive pressures from established brokers and agile fintechs, Webull differentiates itself through its advanced technology, comprehensive educational tools, and community-driven platform, aiming for sustainable market share growth among sophisticated retail investors.

The Digital Frontier: Webull's Vision for the Modern Investor

Webull Corporation, founded in 2016, has rapidly evolved from a global market data platform into a leading digital investment powerhouse. Headquartered in St. Petersburg, Florida, the company operates a sophisticated online brokerage that empowers retail investors with 24/7 access to global financial markets across 14 jurisdictions in North America, Asia Pacific, Europe, and Latin America. Webull's strategic foundation is built upon recognizing and capitalizing on a profound "technology-induced tectonic shift" in the investment landscape, moving beyond traditional online platforms to a new era defined by fintech innovation and broadened access to diverse asset classes.

The company's core strategy centers on delivering a seamless, user-friendly, and low-cost trading experience, integrating market data, investor education, and a vibrant user community within a single application. This holistic approach aims to meet the demands of a new generation of sophisticated retail investors who seek direct control over their financial futures and expect flexibility, control, and access to alternative investment classes. Webull's journey has been marked by continuous product expansion and geographic penetration, including its Canadian broker-dealer launch in January 2024 and recent rollouts in Latin America and the Netherlands, establishing a strong global footprint.

Technological Edge and Product Innovation

Webull's competitive advantage is deeply rooted in its proprietary technology platform, which underpins its ability to offer a comprehensive suite of financial products. This advanced infrastructure facilitates seamless trading across a wide array of assets, including global stocks, ETFs, options, futures, fractional shares, and digital assets. The platform's intuitive user experience and extensive functionality are designed to help customers build wealth over time, distinguishing it from competitors by providing a more robust learning ecosystem and deeper analytical tools.

A critical technological differentiator is Webull's capacity for rapid product deployment and integration. This was evident in the Q2 2025 expansion of its partnership with Kalshi, enabling crypto hourly contract trading and Fed events trading, which provides engaging and accessible ways for investors to participate in prediction markets. Furthermore, Webull Premium, a subscription-based service launched in March 2025, quickly attracted 75,000 subscribers, well ahead of an internal target of 100,000 by year-end. This service offers "some of the lowest margin financing rates on the Street," a tangible benefit that attracts active traders and contributes to increased margin activity and customer asset growth.

The reintroduction of crypto trading is a cornerstone of Webull's technological roadmap and growth strategy. After temporarily withdrawing from the crypto market due to prior regulatory uncertainties, Webull has "leaned into digital assets in a very big way," driven by growing customer demand and a clearer global regulatory path. The company relaunched crypto trading in Brazil in June 2025 with 240 coins, followed by the U.S. and Australia in late August 2025, starting with 50 digital asset coins in the U.S. This initial phase is part of "multiple phases of having the best crypto trading experience in the world," with plans to introduce advanced features like staking and coin-in/coin-out functionality. This strategic move is expected to be "accretive to our top line very, very quickly," leveraging a pre-existing customer base that previously engaged with crypto on the platform.

Beyond trading, Webull has enhanced its advisory services through a collaboration with BlackRock (BLK), offering model portfolios that provide US-based investors access to professionally managed, diversified portfolios tailored to various risk profiles. This integration, available directly through the Webull app, caters to tech-comfortable individuals seeking convenient, automated portfolio management. The company also partnered with Visa (V) to enable real-time fund movements to and from investment accounts, further enhancing the platform's utility and user experience.

Financial Performance and Operational Strength

Webull delivered a robust second quarter in 2025, showcasing significant financial momentum and operational effectiveness. Total revenues surged 46% year-over-year to $131.5 million, a performance largely attributed to an increase in customer assets, explosive growth in equities volumes, and the timely delivery of new offerings and geographic expansion. This revenue growth significantly outpaced the 20% year-over-year increase in adjusted expenses, which reached $108.2 million, primarily driven by higher brokerage and transaction charges from increased volumes and elevated marketing spend.

A key highlight of the quarter was Webull's achievement of three consecutive quarters of operating profitability. The adjusted operating profit for Q2 2025 stood at $23.3 million, representing an 18 percentage point improvement in operating margin year-over-year. Adjusted net income also saw a substantial increase, reaching $15.4 million, marking a 13.4 percentage point margin expansion. These figures underscore the scalability of Webull's platform and the inherent strength of its business model.

Operational metrics further illustrate this strength. Daily Average Revenue Trades (DARTs) increased by an impressive 56% year-over-year, with trading-related revenues rising by 63%. Revenue per trade improved to $1.42 from $1.34 a year ago, reflecting enhanced monetization strategies, particularly a new pricing model for options implemented in the latter half of the previous year. Equity notional volumes soared 58% year-over-year to $161 billion, up 26% sequentially, benefiting from market volatility. Interest-related income, derived from client cash balances, margin financing, and Webull Premium adoption, grew 14% year-over-year to $36.3 million, demonstrating resilience despite interest rate headwinds.

Customer assets under management (AUM) reached an all-time high of $15.9 billion, a substantial 64% year-over-year increase and a $3.3 billion sequential jump. Net deposits contributed significantly, rising 37% year-on-year to over $1.4 billion, bringing cumulative deposits over the last 12 months to $5.4 billion. While the company added approximately 144,000 new funded accounts, net funded accounts increased by about 10,000 to 4.73 million, as roughly 100,000 inactive accounts from the pandemic era rolled off. This indicates a strategic shift towards prioritizing "high-quality customers" and growing AUM, a strategy expected to drive long-term engagement and margin expansion.

Capital Position and Outlook

Webull is "very well capitalized," a critical factor for its innovation and competitive edge. The company completed its de-SPAC transaction in Q2 2025, raising over $200 million from the exercise and redemption of BULLZ incentive warrants. Furthermore, in July 2025, Webull secured a standby equity purchase agreement (SEPA) providing access to up to $1 billion in capital over three years, with $142.8 million already drawn. These funds will be strategically deployed to fuel new product development, expand asset classes, and accelerate global expansion.

Management's outlook for Q3 2025 remains optimistic, anticipating "another solid quarter," assuming no major market dislocation. Customer AUM has already surpassed $18 billion midway through Q3, and July marked the firm's highest revenue month ever. The crypto business is expected to be "perfectly positioned to be accretive to our top line very, very quickly," leveraging existing customer demand and a clearer regulatory environment. Webull plans to "lean into" increased marketing spend, using its strong capital position to attract high-quality customers and facilitate asset transfers from traditional brokers, a strategy that has proven successful in growing its U.S. market share.

Competitive Landscape and Positioning

Webull operates in a highly competitive digital brokerage market, vying for market share against established players like Charles Schwab (SCHW) and Interactive Brokers (IBKR), as well as agile fintech rivals such as Robinhood Markets (HOOD). Indirect competition also comes from cryptocurrency exchanges like Coinbase (COIN) and digital payment platforms expanding into investing tools.

Compared to Robinhood, Webull differentiates itself by emphasizing comprehensive educational tools, advanced market data analytics, and a community-driven platform, appealing to a more sophisticated and engaged investor base. While Robinhood excels in rapid user acquisition through gamified features, Webull's focus on deeper engagement and holistic financial empowerment suggests a more sustainable path to market share capture and potentially stronger long-term profitability. Webull's gross profit margin of 78.09% (TTM) indicates strong underlying business economics, though its negative net profit margin of -3.03% (TTM) reflects ongoing investment in growth and expansion.

Against Charles Schwab, Webull demonstrates superior digital agility and cost-effectiveness. Webull's platform is purpose-built for mobile and web-first users, offering an intuitive interface and faster innovation in features like real-time data analytics. While Schwab benefits from its established brand trust, diversified revenue streams, and scale, Webull's digital-first approach positions it strongly for younger demographics and tech-savvy investors. Schwab's P/E ratio of 24.96 (2025) reflects its mature, stable profile, whereas Webull's current negative P/E (TTM) highlights its growth-oriented investment phase.

In comparison to Interactive Brokers, which caters primarily to professional and active traders with advanced tools and cost leadership, Webull's strength lies in its user education and community features, making investing more approachable for a broader retail audience. Webull aims to offer "the best crypto trading experience in the world" with "tightest spreads," directly challenging IBKR's efficiency claims in certain asset classes. While IBKR's P/E ratio of 33.76 (2025) reflects its efficient operations, Webull's broader appeal in retail investing could drive stronger user loyalty and market share growth.

Webull's competitive advantages, or "moats," include its proprietary technology platform, which enables efficient operations and enhanced user engagement, and its strong emphasis on investor education and community. These factors help Webull attract and retain customers, fostering loyalty and potentially leading to stronger pricing power for premium services. However, vulnerabilities exist, such as potential dependence on third-party technology infrastructure and the inherent regulatory risks associated with global operations and rapidly evolving asset classes like cryptocurrencies. The company also faces scrutiny regarding its connections to China, which U.S. lawmakers have raised with the SEC, posing a potential delisting risk.

Risks and Challenges

Despite its strong growth trajectory, Webull faces several pertinent risks. The company's reliance on trading-related income, including payment for order flow (PFOF), exposes it to potential new regulations or bans that could impact revenue. Fluctuations in interest rates and volatile prices of securities and digital assets also pose risks to trading volumes and interest-related income. Furthermore, as a regulated financial services company, Webull must continuously develop and maintain robust compliance and risk management infrastructures and meet capital requirements, which can incur substantial costs.

The company's global expansion, while a key growth driver, exposes it to complex and constantly evolving political and regulatory environments across 14 markets. The failure to protect customer data and privacy or prevent security breaches could lead to economic loss, reputational damage, and legal liabilities. The recent roll-off of approximately 100,000 inactive accounts, many established during the pandemic, highlights the ongoing challenge of maintaining user engagement and account quality.

Conclusion

Webull Corporation is carving out a significant niche in the evolving digital investment landscape, demonstrating impressive growth and a clear path to sustained profitability. Its strategic focus on technological innovation, particularly in expanding access to diverse asset classes like cryptocurrencies and prediction markets, positions it at the forefront of a new era for retail investing. The company's ability to achieve three consecutive quarters of operating profitability, coupled with robust customer asset growth and strategic capital deployment, underscores the strength of its business model and execution.

While competitive pressures from both established financial institutions and agile fintechs remain, Webull's differentiated platform, emphasizing advanced tools, investor education, and a vibrant community, provides a compelling value proposition for the modern investor. The successful reintroduction of crypto trading and the strong adoption of Webull Premium are critical indicators of its capacity to innovate and capture market share. Investors should recognize Webull's potential for continued expansion, driven by its technological leadership and strategic agility, even as it prudently manages regulatory complexities and operational risks inherent in a rapidly transforming global financial market.