Q2 FY2026
Filed Aug 19, 2026Webull reported record Q2 revenue of $198.8 million, up 51% year-over-year and 24% sequentially, alongside $62.6 million of adjusted operating profit and $43.2 million of adjusted net income.
Revenue, trading activity, customer assets and adjusted operating profit all increased materially year-over-year. The company also reported GAAP net income attributable to the Company of $24.4 million, compared with a prior-year net loss of $28.3 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $198,831,080 | 24% | 51% |
| Equity and option order flow rebatesGAAP | $112,961,852 | – | – |
| Interest related incomeGAAP | $42,752,379 | – | – |
| Handling charge incomeGAAP | $34,780,092 | – | – |
| Other revenuesGAAP | $8,336,757 | – | – |
| Trading-related revenueother | $147.7 million | – | 66% |
| Brokerage and transaction expenseGAAP | $44,348,662 | – | – |
| Technology and development expenseGAAP | $22,157,376 | – | – |
| Marketing and branding expenseGAAP | $35,046,209 | – | – |
| General and administrative expenseGAAP | $51,823,929 | – | – |
| Total operating expensesGAAP | $153,376,176 | – | 13% |
| Share-based compensationGAAP | $17,135,196 | – | – |
| Adjusted operating expensesnon-GAAP | $136,240,980 | – | 26% |
| Other expense, netGAAP | $10,768,430 | – | – |
| Income before income taxesGAAP | $34,686,474 | – | – |
| Provision for income taxesGAAP | $10,343,085 | – | – |
| Net incomeGAAP | $24,343,389 | – | – |
| Net income attributable to the CompanyGAAP | $24,364,324 | – | – |
| Net income per ordinary share - basicGAAP | $0.05 | – | – |
| Net income per ordinary share - dilutedGAAP | $0.04 | – | – |
| Adjusted operating profitnon-GAAP | $62,590,100 | – | – |
| Adjusted operating profit per share - basicnon-GAAP | $0.12 | – | – |
| Adjusted operating profit per share - dilutednon-GAAP | $0.12 | – | – |
| Adjusted operating marginnon-GAAP | 31.5% | – | – |
| Adjusted net incomenon-GAAP | $43,161,954 | – | – |
| Total contra revenueother | $(12,415,934) | – | – |
| Customer assets (AUM)other | $28.5 billion | – | 79% |
| Net deposits growthother | 7% | – | 7% |
| Registered usersother | 28.2 million users | – | 13% |
| Funded accountsother | 5.13 million | – | 8% |
| Equity notional volumeother | $279 billion | 7% | 73% |
| Options contracts volumeother | 213 million | 34% | 68% |
| DARTsother | 1.6 million | – | 62% |
Capital returns
- During the quarter, the Company repurchased and cancelled 1,820,788 Class A ordinary shares at an average repurchase price of $6.03.
- The Company’s share repurchase program may repurchase up to $100 million of its Class A ordinary shares.
What drove it
- Record quarterly trading volumes followed implementation of updated active trader functionality after the June 4 elimination of the Pattern Day Trader Rule.
- Equity notional volume grew 73% year-over-year to $279 billion and options contracts volume grew 68% year-over-year to 213 million.
- Customer assets grew 79% year-over-year to $28.5 billion, driven by net deposits that grew 7% year-over-year.
- Vega AI added approximately 160,000 new users during the quarter, bringing total active users to approximately 480,000.
- Webull launched in Spain, Argentina, and Colombia; it is licensed across 35 markets globally and operates trading activities in 18 markets.
- The company announced the acquisition of Pi Securities in Thailand, where customer assets in Asia-Pacific now exceed $5 billion.
Concerns
- Trading-related income includes payment for order flow, and the company identifies the risk of new regulation or bans on payment for order flow and similar practices.
- Equity notional volume and options contracts volume are highly sensitive to market conditions in the short term.
- The company relies on a limited number of market makers and liquidity providers to generate a large portion of its revenues.
- Total contra revenue was $(12,415,934), compared with $(5,087,904) in the prior-year comparative quarter.
- The company is continuing to invest in active-trader offerings, international expansion, AI capabilities, and its institutional business.
- The release states that unaudited financial and operational information is subject to potential adjustments.
What to watch
- Whether elevated equity and options activity persists following the updated active trader functionality and the June 4 elimination of the Pattern Day Trader Rule.
- The progression of customer assets, net deposits, funded accounts, and DARTs.
- The durability of adjusted operating margin, reported at 31.5%, as the company invests in products, international expansion, AI, and institutional offerings.
- Execution of launches in Spain, Argentina, and Colombia and the announced acquisition of Pi Securities in Thailand.
- Potential changes in regulation affecting payment for order flow, event contracts, prediction markets, digital assets, AI, and global brokerage operations.
Balance sheet and cash flow
- Cash and cash equivalents were $701,621,304 as of June 30, 2026, compared with $653,188,906 as of December 31, 2025.
- Cash and cash equivalents segregated under federal and foreign requirements were $1,224,069,199 as of June 30, 2026, compared with $1,537,119,275 as of December 31, 2025.
- Total assets were $4,112,737,595 as of June 30, 2026, compared with $3,880,871,303 as of December 31, 2025.
- Revolving credit facility was $17,611,040 as of June 30, 2026, compared with $0 as of December 31, 2025.
- Unsecured promissory notes were $50,000,000 in current liabilities as of June 30, 2026; unsecured promissory notes were $65,000,000 in non-current liabilities as of December 31, 2025.
- Total liabilities were $3,069,065,168 as of June 30, 2026, compared with $2,864,391,356 as of December 31, 2025.
- Total shareholders’ equity was $1,043,532,166 as of June 30, 2026, compared with $1,016,292,713 as of December 31, 2025.
- No operating cash flow or free cash flow was reported.
Analysis
Webull reported a record second quarter, with total revenues of $198,831,080 versus $131,493,350 in the prior-year comparative quarter. The company said revenue increased 51% year-over-year and 24% sequentially. Trading-related revenue increased 66% year-over-year to $147.7 million. Equity and option order flow rebates were $112,961,852, interest related income was $42,752,379, handling charge income was $34,780,092, and other revenues were $8,336,757.
Activity and customer metrics supported the growth. Customer assets totaled $28.5 billion, up 79% year-over-year, with net deposits up 7% year-over-year. Registered users rose 13% year-over-year to 28.2 million users and funded accounts increased 8% year-over-year to 5.13 million. Equity notional volume grew 73% year-over-year to $279 billion and 7% from the previous quarter, while options contracts volume grew 68% year-over-year to 213 million and 34% from the previous quarter. DARTs increased 62% year-over-year to 1.6 million.
Expense growth trailed revenue growth on a GAAP basis. Total operating expenses were $153,376,176, compared with $135,218,723, and the company described the increase as 13% year-over-year. Brokerage and transaction costs rose with trading volumes, while share-based compensation declined to $17,135,196 from $26,969,402. Adjusted operating expenses were $136,240,980, compared with $108,249,321. Income before income taxes was $34,686,474, compared with a loss before income taxes of $(21,385,169), and net income attributable to the Company was $24,364,324, compared with a loss of $(28,274,027).
Non-GAAP profitability expanded sharply. Adjusted operating profit was $62,590,100, compared with $23,244,029, and the company reported a 31.5% adjusted operating margin. Adjusted net income was $43,161,954, compared with $15,412,300. The reconciliation shows that adjusted measures exclude items including share-based compensation, other expense or income, foreign currency transaction gains and losses, and certain other items. Total contra revenue was $(12,415,934), compared with $(5,087,904) in the prior-year comparative quarter.
Capital allocation included the repurchase and cancellation of 1,820,788 Class A ordinary shares at an average repurchase price of $6.03. Cash and cash equivalents were $701,621,304 at June 30, 2026. Webull provided no forward financial guidance. The release instead emphasized product development, including Vega AI and MCP, international expansion, the planned Pi Securities acquisition, and expansion of B2B offerings. Key disclosed risks include reliance on trading-related income and payment for order flow, market-sensitive trading volumes, dependence on market makers and liquidity providers, and regulatory risks across its products and global operations.
Management, verbatim
I’m proud to report a record second quarter for Webull, highlighted by our successful implementation of updated active trader functionality following the June 4 elimination of the Pattern Day Trader Rule.
Anthony Denier, Group President and U.S. CEO
Q2 was the best quarter in Webull’s history, with record revenue of $198.8 million, up 51% year-over-year and 24% sequentially.
H.C. Wang, Chief Financial Officer
Adjusted operating profit reached $62.6 million, representing a 31.5% operating margin, while adjusted net income was $43.2 million.
H.C. Wang, Chief Financial Officer
Not in the filing
stated, not guessed- Forward financial guidance
- Prior-period outlook for guidance comparison
- Gross profit and gross margin
- GAAP operating income or loss
- Operating cash flow
- Free cash flow
- Dividend information
- Quarter-end total debt line item
- Segment revenue disclosure
- Prior-quarter figures for financial statement line items other than the stated total-revenue sequential growth and operating-volume sequential changes
- Cash flow statement
- Tax rate
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.