Webull Q2 Earnings Call Highlights
Key Points
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- Record Q2 performance: Webull’s revenue rose 51% year over year to $198.8 million, while adjusted operating profit surged 169% to $62.6 million as expenses grew more slowly than revenue.
- PDT rule boosts trading: The June elimination of the Pattern Day Trader rule helped drive a 62% increase in DARTs, a 73% rise in equity trading volume and a 68% increase in options volume. Webull said elevated activity continued into July and August.
- Expansion beyond core brokerage: Customer assets climbed 79% to $28.5 billion, while Webull continued international expansion and development of AI, prediction-market and crypto offerings; prediction-markets revenue grew 71% sequentially to roughly $5 million-$6 million.
Webull (NASDAQ:BULL) reported record second-quarter results for 2026, with revenue rising 51% year over year to $198.8 million as higher trading activity and customer asset growth lifted both transaction- and interest-related income.
Group President and U.S. CEO Anthony Denier said the elimination of the Pattern Day Trader, or PDT, rule on June 4 was the company’s defining event during the quarter. He said Webull’s technology allowed qualified customers to make unlimited day trades under its zero-commission model after the rule change took effect.
“Executing on this rule change was our defining event for the quarter and contributed to a significant increase in trading volumes and record quarterly results,” Denier said.
Trading Activity Drives Revenue Growth
Webull reported trading-related revenue of $147.7 million, up 66% from a year earlier and 33% sequentially. Daily average revenue trades, or DARTs, increased 62% year over year to 1.64 million.
Equity notional trading volume reached $279 billion, up 73% from the prior-year period, while options volume rose 68% to 213 million contracts. Options volume increased 34% sequentially. Denier said the activity helped Webull reach a top-five position among retail brokers in options trading for the first time.
The company said the PDT rule’s removal has changed customer behavior, with traders making a greater number of smaller trades rather than conserving a limited number of day trades. Denier said the higher number of trades within overall volume has supported payment-for-order-flow economics.
Webull’s July operating figures showed options activity remained steady after the June change, according to Denier, while August trading activity was tracking above July levels. He said the company does not expect trading volumes to return to levels seen before the PDT rule was eliminated.
- Customer assets rose 79% year over year to $28.5 billion.
- Net customer deposits totaled $1.6 billion, up more than 7% year over year.
- Funded accounts reached 5.13 million, an 8% increase from a year earlier.
- Registered users increased 13% to 28.2 million.
- Quarterly retention was 97.3%.
Profitability Expands as Expenses Grow More Slowly
Group CFO H.C. Wang said adjusted operating expenses increased 26% year over year to $136.2 million, a slower rate than revenue growth. Expenses declined 6% from the first quarter, primarily because marketing costs normalized.
Adjusted operating profit rose 169% year over year to $62.6 million, producing an adjusted operating margin of roughly 31%. Adjusted net income was $43.2 million, for a 21.7% net profit margin.
Interest-related income increased 18% to $42.8 million, supported by higher assets under management, margin loan balances and client cash balances. Wang described interest income as a durable complement to the company’s trading revenue.
Marketing expenses in the first half continued to include amortization related to asset-match promotions launched during 2025, Wang said. The company reduced the scale of those promotions beginning in the first quarter, including lowering a 3.5% IRA asset-match offer to 1% and ending some promotions in certain markets.
For the remainder of 2026, Wang said Webull expects marketing spending to remain broadly between first-quarter and second-quarter levels, absent major market changes. Denier said current priorities include U.S. brand building, attracting higher-quality accounts and supporting international growth.
International and Institutional Expansion Continue
Webull said it is licensed in 35 markets and has trading operations in 18 markets after launching in Spain, Argentina and Colombia during the second quarter. International funded accounts totaled about 810,000, while customer assets in Asia-Pacific exceeded $5 billion.
The company recently announced an acquisition of Pi Securities in Thailand, expected to close at the end of August. Denier said the transaction is expected to expand Webull’s Asia-Pacific assets under management and provide access to active trading accounts in Thailand.
Wang said Webull views its Asian operations collectively, citing cross-market opportunities including institutional clients and high-net-worth customers who may seek offshore accounts. Institutional assets under management exceeded $1.4 billion, or about 5% of total assets under management, with most institutional clients located outside the United States.
In the U.S., Webull received a clearing license from FINRA in April but said it is not currently clearing trades and does not expect to begin doing so for some time. The company has expanded its institutional offering to include futures and prediction markets, and announced a partnership with Monark Markets to provide accredited investors access to late-stage private companies through special purpose vehicles.
AI, Crypto and Prediction Markets
Webull continued to build AI-enabled products during the quarter. Its Vega AI intelligence system added about 160,000 users, bringing active Vega users to 480,000. Engagement among active traders rose about 23% sequentially, Denier said.
The company also connected its MCP server with leading AI models, allowing users to use natural-language prompts for research, tool-building and trade execution through the Webull platform. Denier said the current focus is on portfolio construction, research and trade analysis, with additional execution-oriented AI features expected later in the year.
Crypto revenue was about $2.25 million during the quarter, representing just over 1% of total revenue, according to Denier. He said Webull was in the process of gradually rolling out crypto deposit and withdrawal capabilities.
Denier also said prediction-markets revenue was approximately $5 million to $6 million in the quarter and that the business grew 71% sequentially.
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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