Webull Q1 Earnings Call Highlights

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Webull (NASDAQ:BULL) reported first-quarter revenue growth of 36% year over year, as higher trading activity across equities, options and newer asset classes helped offset a more volatile market backdrop and heavier marketing spending.

The digital brokerage generated total revenue of $159.9 million in the first quarter of 2026, Group CFO H.C. Wang said on the company’s earnings call. Trading-related revenue rose 36% year over year to $110.9 million, while interest-related income increased 29% to $40.1 million, driven by growth in margin loans and client cash balances.

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Customer assets reached $24 billion, up 90% from a year earlier, though management said the figure declined sequentially because of market volatility. Customer net deposits totaled $2.1 billion in the quarter, also up more than 90% year over year.

“What the numbers demonstrate, however, is that our customers remained engaged and continued to make meaningful deposits into the Webull platform during the quarter,” Group President and U.S. CEO Anthony Denier said.

Trading Volumes Hit Records

Webull said equity notional volume rose 104% year over year to more than $261 billion and increased 9.2% sequentially. Options volume totaled 159 million contracts, up 31% year over year and 3.2% from the prior quarter.

Denier said equities and options remain the core of Webull’s business, while futures, prediction markets and crypto also contributed to growth. futures volume grew 84% year over year and 27% sequentially, with Denier citing strong interest in commodities futures, particularly oil futures.

Wang said daily average revenue trades increased to 1.31 million in the quarter and noted that trading activity rebounded in April and May as markets recovered. He said Webull will begin publishing monthly operating metrics through its investor relations website to give investors more frequent updates between quarterly reports.

Expenses Rise as Webull Invests in Growth

Adjusted operating expenses increased 64% year over year to $145.1 million, Wang said, largely because of increased marketing and branding investments. Those included asset-matching programs in several global markets, campaigns promoting zero-commission offerings outside the United States, and Webull’s sponsorship as the official jersey patch partner of the Tampa Bay Rays.

Adjusted operating profit was $14.8 million, representing a 9.3% margin, while adjusted net income was $9.2 million, or 5.8% of revenue. Wang said first-quarter profitability metrics were lower than in prior periods because of the step-up in marketing, but added that Webull has remained profitable on an adjusted basis for six consecutive quarters.

“We remain confident that as revenue scales, marketing as a percentage of revenue will continue to come down, and margins will improve accordingly,” Wang said.

Denier said the company is not managing for short-term margin expansion, but rather investing to build long-term leadership. Webull also recently announced a share repurchase program of up to $100 million of its Class A ordinary shares, which Denier said reflects confidence in the company’s long-term value and “disciplined capital allocation.”

AI and Active Traders Remain Central to Strategy

Denier framed Webull’s long-term strategy around what he described as an industry shift from competing primarily on user interface to competing on infrastructure that can support AI-driven trading. He said Webull is investing in API architecture, AI products and B2B infrastructure to position itself as an execution and custody layer for AI agents.

The company highlighted several planned AI-related initiatives for 2026:

• Vega Analyst, an AI research tool that will allow users to request company research reports, is currently being tested with a select group of customers.
• Portfolio Blueprint is intended to enable one-click portfolio construction and execution, including copy trading.
• AI Portfolio, planned for later in the year, is expected to support agentic portfolio construction and trading.

In response to an analyst question about risks from third-party AI agents, Denier said Webull is focused on security, compliance, disclosures and risk controls. He added that the company is working with regulators on an appropriate framework for AI-enabled trading.

Pattern Day Trader Rule Change Seen as Tailwind

Management repeatedly pointed to the SEC’s elimination of the pattern day trader rule as a potential structural tailwind for Webull’s active-trader customer base. Denier said Webull will be ready when the rule change takes effect June 4 and expects customers who qualify for intraday margin to be able to place unlimited day trades.

Denier said Webull’s average account size was just below $5,000 at quarter-end, making its customers more directly affected by the rule than many customers at legacy brokers. He said his low-end expectation is for a 20% increase in transactions over time from the removal of the rule, while cautioning that the impact will not occur immediately on day one.

He also said the change could encourage account consolidation among active traders who previously maintained multiple brokerage accounts to navigate day-trading limits. Webull plans marketing and education efforts around the rule change, including potential incentives for customers to consolidate assets on its platform.

Global and Institutional Expansion Advances

Webull added approximately 800,000 registered users during the quarter, bringing total registered users to 27.6 million, up 15% from a year earlier. Funded accounts rose by about 80,000 to 5.11 million, an 8% year-over-year increase. The company also reported a record quarterly retention rate of 98.4%.

Internationally, Denier said Webull received permission during the quarter to operate in 22 additional markets in the European Economic Area and is now approved to expand across Europe. The company currently operates in 15 markets and has expanded zero-commission offerings beyond the United States to Hong Kong, Singapore, Canada, the U.K., Australia, Brazil and Mexico. Webull also recently launched in Germany.

In Asia-Pacific, customer assets reached $4 billion, and Webull has more than 790,000 funded accounts outside the United States.

Institutional flow accounted for 9.5% of Webull’s equity notional volume in the first quarter. Denier said the company is nearing 200 institutional clients on its platform and expects institutional and B2B activity to continue expanding. He cited growth from Meritz and other institutional clients, while declining to disclose specific flow from Meritz.

Webull also received approval for a U.S. self-clearing license, which Denier called a “huge game changer” for the business. He said the company still needs to complete onboarding with DTCC and OCC and does not expect the self-clearing business to be operational until the fourth quarter. Once active, he said self-clearing should lower transaction and custody costs and could allow Webull to pass savings to customers, particularly on the B2B side.

Asked about prediction markets and crypto, Denier said prediction markets are averaging around 100 million contracts a month and represent about 2% of total revenue. Crypto also represented roughly 2% of revenue in the first quarter. He said Webull still expects to roll out coin-in, coin-out capabilities and staking products in the second quarter, after delaying them to prioritize work on its agentic AI infrastructure.

About Webull (NASDAQ:BULL)

Webull Financial LLC is a commission-free online brokerage platform that provides individual investors with access to U.S. equities, exchange-traded funds (ETFs), options, and cryptocurrencies. Through its mobile and desktop applications, the company offers real-time market data, advanced charting tools, customizable watchlists, and streamlined order execution. Webull’s platform is designed to support both self-directed traders and investors seeking an intuitive interface coupled with professional-grade analytics.

In addition to its core trading services, Webull delivers educational resources and research tools to help users make informed decisions.

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