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    BULL
    Earnings call· Mar 2026(Q1 FY26)

    Webull Q1 FY26 earnings call BULL

    May 21, 2026 Source

    Executive summary

    Webull Q1 FY26 — Strong Growth Driven by Active Traders, Institutional Traction, and AI Focus

    Webull delivered a strong Q1 FY26, driven by robust trading volumes from active traders and significant traction in its institutional business, which now contributes 9.5% of equity volumes. The company is strategically investing in AI-driven product development and global expansion, positioning itself as a leader in the evolving financial services landscape. While increased marketing spend impacted short-term profitability, management remains focused on long-term category leadership and capital returns, including a $100 million share repurchase program.

    Highlights

    5

    • Revenue grew 36% year-over-year to $159.9 million.

    • Customer assets reached $24 billion, up 90% year-over-year.

    • Equity notional volume increased 104% year-over-year to $261 billion.

    • Quarterly retention rate reached a record high of 98.4%.

    • Received U.S. self-clearing license approval, expected to be operational by Q4 2026.

    Concerns

    4

    • Adjusted operating expenses increased 64% year-over-year to $141.1 million, impacting profitability.

    • Adjusted operating profit margin declined to 9.3% and adjusted net income margin to 5.8% due to increased marketing investments.

    • Customer assets and net deposits declined sequentially due to market volatility and challenging macro backdrop in Q1.

    • Sequential decline in interest-related income due to an industry-wide decrease in fully paid stock lending revenue.

    Guidance & targets

    3
    CategoryTargetConfidence
    Share Repurchase Program
    up to $100 million
    high materiality
    High
    Self-clearing operational status
    Operational by Q4 2026
    high materiality
    High
    Monthly operating metrics publication
    Publishing monthly operating metrics
    low materiality
    High

    Operational metrics

    26
    Revenue growth
    36%YoY
    Q1 FY26

    Driven by high trading volumes across all core asset classes.

    Customer assets
    $24 billionup 90% YoY
    Q1 FY26

    Decreased slightly from the beginning of the year due to market volatility.

    Institutional order flow as percentage of equity volume
    9.5%
    Q1 FY26

    Reflects meaningful traction in a business in early stages of scaling.

    Equity notional volume
    $261 billionup 104% YoY, up 9.2% sequentially
    Q1 FY26

    All-time high for Webull.

    Options contract volume
    159 millionup 31% YoY, up 3.2% sequentially
    Q1 FY26

    All-time high for Webull.

    Futures growth
    84%YoY
    Q1 FY26

    Driven by huge interest in commodities futures, especially oil futures.

    Adjusted operating expenses
    $141.1 millionup 64% YoY
    Q1 FY26

    Primarily driven by increased marketing and branding investments.

    Registered users
    27.6 millionup 15% YoY (3 million added in past year)
    Q1 FY26

    Webull originated as a global market data platform.

    Funded accounts
    5.11 millionup 8% YoY
    Q1 FY26

    Defined as accounts with initial deposit and balance above zero for 45 consecutive days.

    Quarterly retention rate
    98.4%record high
    Q1 FY26
    Customer net deposits
    $2.1 billionup 90% YoY
    Q1 FY26

    Sequentially declined due to challenging macro backdrop.

    Adjusted operating profit
    $14.8 millionlower compared to prior quarters
    Q1 FY26

    Q1 marks sixth consecutive quarter of operating profitability.

    Adjusted net income
    $9.2 millionlower compared to prior quarters
    Q1 FY26

    Primarily reflecting step-up in marketing investments.

    Trading-related revenues
    $110.9 millionup 36% YoY
    Q1 FY26

    Reflects continued strength across trading income streams.

    Operating profit margin ex marketing
    40%or higher every quarter
    Since Q3 2024

    Demonstrates commitment to profitability and disciplined operating expenses.

    Marketing spend as percentage of revenue
    20%
    Last two quarters

    Expected to narrow as revenue scales.

    Transaction increase from PDT rule removal
    20%low end expectation
    Over time

    Speculation, not expected on day 1.

    Customer assets
    $4 billion
    Q1 FY26
    Funded accounts
    790,000
    Q1 FY26
    Hong Kong broker-dealer equity flow contribution
    very close second
    Q1 FY26

    Due to concentration on institutional and B2B accounts outside the U.S.

    Vega platform usage by active traders
    16 to 17
    per month

    20% of these users make a trade after engaging with Vega.

    Institutional clients onboarded
    nearing 200
    Q1 FY26

    Pipeline is extremely strong and getting stronger.

    Prediction markets revenue contribution
    2%
    Q1 FY26

    Still represents a small amount of quarterly revenues.

    Prediction markets volume
    100 million
    per month

    Continued on same trajectory path as Q4.

    Crypto revenue contribution
    2%
    Q1 FY26

    Represents a huge opportunity to grow closer to 15-25% of revenue.

    New accounts first trade in crypto
    20%
    Year-to-date

    Indicates customer engagement in crypto.

    Industry KPIs

    1
    MetricValueDetails
    Net interest income$40.1 millionUSD

    Product announcements

    6
    ProductTypeDetails
    Vega Analystlaunch
    Portfolio Blueprintlaunch
    AI Portfoliolaunch
    MCP serverlaunch
    Webull Connectlaunch
    TrustLinklaunch

    Deals & partnerships

    2
    Tampa Bay RaysOfficial jersey patch sponsor and official online brokerage.

    Launched awareness campaigns to promote offerings.

    MeritInstitutional client sending order flow.

    Largest institutional client onboarded in South Korea.

    Risks & headwinds

    5
    Market volatility and challenging macro backdropQ1 FY26

    Customer assets decreased slightly from beginning of year; sequential decline in customer net deposits.

    Mitigation: Focus on active traders who engage during volatility; continued investment in customer acquisition and AUM growth.

    Increased operating expenses due to marketing investmentsQ1 FY26

    Adjusted operating expenses up 64% YoY to $141.1 million; adjusted operating profit margin 9.3%, adjusted net income margin 5.8% (lower than prior quarters).

    Mitigation: Expect marketing as a percentage of revenue to narrow as revenue scales, leading to margin expansion over time; maintaining 40% operating profit margin ex-marketing.

    Decline in fully paid stock lending revenueQ1 FY26

    Sequential decline in interest-related income ($40.1 million, up 29% YoY, but sequentially down).

    Mitigation: Expects to normalize as market activities pick back up.

    Risks associated with third-party AI agentic toolsFuture (next 2-3 years)

    null

    Mitigation: Prioritizing security, safety, and compliance; working with regulators to build proper frameworks; focusing on education, disclaimers, and notifications for customers.

    Delays in crypto product rolloutQ1 FY26 (originally planned for March rollout)

    Coin in/out capabilities and staking products pushed back from March rollout.

    Mitigation: Diverted resources to AI agentic platforms; still very optimistic on crypto's long-term opportunity (20% of new accounts' first trade is crypto).

    What to watch in Q2 FY26

    5

    PDT rule impact on transaction volumes

    Q2 FY26 (1 month of data by next call)
    CurrentWebull ready on June 4; low-end expectation of 20% transaction increase over time.
    TargetInitial signs of increased transaction activity and account consolidation.

    Why it matters

    Significant structural tailwind for Webull's active trader base, potential for substantial volume growth and market share gains.

    my expectations on the low end is an increase of 20% on the low end in terms of transaction increase we're going to see with the removal of PDT. This is not going to happen on day 1 on June 4, but I believe this will happen over time⏳.

    Q&A highlights

    6

    How will the PDT rule change impact Webull's client base, trading activity, and cohort expansion, and its significance as a structural driver?

    Webull is ready for the June 4 PDT rule change, expecting a low-end 20% increase in transaction volume over time. The rule change presents a unique opportunity for account consolidation from other brokers, especially for active traders with smaller AUM, a key cohort for Webull.

    “my expectations on the low end is an increase of 20% on the low end in terms of transaction increase we're going to see with the removal of PDT. This is not going to happen on day 1 on June 4, but I believe this will happen over time.”

    asked by Karim Assef · answered by Anthony Michael Denier

    2 min read7 chapters

    Detailed Narrative

    01

    Strategic Focus on AI and Infrastructure

    Webull is positioning itself for an inflection point in financial services, shifting competition from UI to AI agent interaction and robust B2B infrastructure. The company is building a complete, multi-liable, and developer-friendly execution and custody infrastructure, informing current decisions in API architecture, AI product roadmap, and B2B infrastructure design. This strategy aims to establish Webull as an industry leader in the emerging agentic stack.

    02

    Q1 FY26 Financial and Operational Highlights

    Webull reported strong Q1 FY26 results with revenue of $159.9 million, up 36% YoY. Customer assets grew 90% YoY to $24 billion, despite a sequential decline due to market volatility🌐. Equity notional volume surged 104% YoY to $261 billion, and option volume rose 31% to 159 million contracts, both reaching all-time highs. The company achieved its sixth consecutive quarter of operating profitability, with adjusted operating profit at $14.8 million.

    03

    Product Innovation for Active Traders

    Webull's product roadmap for 2026 includes three key initiatives for active traders: Vega Analyst, an AI-powered research tool providing comprehensive, personalized reports; Portfolio Blueprint, enabling one-click portfolio construction and execution; and AI Portfolio, for agentic portfolio construction and trading. These tools are designed to enhance the self-directed investment experience and leverage AI-driven decision-making.

    04

    Global Expansion and Market Penetration

    International expansion remains a core growth pillar. Webull received permission to operate in 22 additional markets in the European Economic Area during Q1, now approved across all of Europe, and recently launched operations in Germany. In APAC, customer assets reached $4 billion, with over 790,000 funded accounts outside the U.S., demonstrating the company's ability to export its retail trading experience globally.

    05

    Institutional and B2B Platform Development

    A significant milestone was achieved with the approval of Webull's U.S. self-clearing license, strengthening its operational backbone and creating synergies for the B2B business. The company also released its MCP server to enable AI agents to interact with its platform, positioning Webull as a preferred execution and custody layer. Institutional flow accounted for 9.5% of equity notional volume in Q1, reflecting early traction in this scaling business.

    06

    Impact of Pattern Day Trader (PDT) Rule Elimination

    The SEC's elimination of the PDT rule, effective June 4, is seen as a structural tailwind for Webull's active trader focus. The company has updated its systems and will be ready on day one to support unlimited day trades for qualifying customers. Management anticipates a low-end increase of 20% in transaction volume over time⏳ due to this change, alongside opportunities for account consolidation from other platforms.

    07

    Capital Allocation and Share Repurchase

    Webull announced a share repurchase program of up to $100 million of its Class A ordinary shares, reflecting confidence in its long-term value and commitment to disciplined capital allocation. This move signals the company's strategy to both invest for growth and return capital to shareholders when appropriate, balancing aggressive investment with financial prudence.

    AI-generated summary of the company’s earnings call. Not investment advice.