Webull (BULL) Q4 FY25 earnings call: guidance and Q&A

Asked for details on the sequential increase in Q4 marketing spend, its allocation (customer acquisition vs. balance incentives), and the expected run rate for 2026.

Management explained the Q4 marketing spend was strategic and successful in driving AUM growth and net deposits, primarily targeting active traders. They noted the majority is performance-based. While Q1 2026 is expected to be lighter, they remain opportunistic. H. Wang added that marketing as a percentage of revenue decreased from 35% in 2024 to 23-24% in 2025.

“The majority of our marketing spend is actually performance-based. So these are for successful deposits, for successful account openings, these are that we can track. These are not fixed branding investments that are committed early in the year. So we have a lot of flexibility to dynamically calibrate and adjust the marketing spend as we see where the market is going.”

asked by Christopher Brendler · answered by H. Wang

Inquired about DARTs and equity/options trading trends for 2026 year-to-date, given market changes.

Anthony Denier stated that January 2026 was the second-best month since inception, indicating a strong Q1. He highlighted that volatility benefits their active trader base, especially in options, which has higher margins. He also emphasized the advantage of their global distribution and growing B2B business in diverse market conditions.

“January is probably the second best month we've ever had as a company since inception. So Q1 is certainly looking strong. When there is volatility, especially with our customer base, there's a lot of activity and a lot of trading.”

asked by Christopher Brendler · answered by Anthony Michael Denier

Asked for further breakdown of the $3.9 billion net new deposits, specifically if crypto or the Meritz partnership contributed significantly, beyond marketing spend.

Anthony Denier clarified that the net deposits were purely from retail, not B2B relationships like Meritz. Crypto is included but its contribution is currently 'de minimis,' with key product rollouts expected to make it more material by Q2. He noted Meritz has already facilitated over $1 billion notional in equity trading for Korean customers, with expectations to 10x that by year-end.

“any of the B2B relationships that we've onboarded, they're not attributable to net deposits. Those net deposits are purely coming from retail. Crypto, however, is included because our crypto business is only attributed to retail right now.”

asked by Mike Grondahl · answered by Anthony Michael Denier

Sought an update on capital priorities for 2026 and key focus areas for M&A in terms of size and target markets.

H. Wang stated that the primary focus remains on organic growth through customer and AUM acquisition, technology investment (especially AI), and geographical expansion. M&A is opportunistic, not a core strategy, but they would evaluate interesting opportunities from a risk-reward perspective.

“We'll continue to be very focused investing in growth, that means customer acquisition, AUM acquisition and continue to invest in technology, especially AI, to make us the best-in-class platform for active traders and also in geographical expansion where we're currently operating.”

asked by Karim Assef · answered by H. Wang

Questioned Webull's competitive crypto pricing strategy, asking if a higher initial price with subsequent cuts might be better, and the expected revenue contribution from crypto and prediction markets in 2026.

Anthony Denier explained that their competitive crypto pricing is sustainable because they are not reliant on crypto revenue, making any contribution accretive. They target active crypto traders with specific product models to be detailed later. He noted prediction markets are about volume, with a $0.01 commission per contract, and while they drive traffic, they are not expected to be a core business. H. Wang clarified that crypto and prediction market revenues were first presented in Q4, contributing to the 'platform and trading fees' line.

“any revenue that we add, whether it's from a pricing spread that's 1/4 of the margin of our next competitor, that's still accretive revenue for us. And if any of our competitors were to match our pricing, they'd have to be cutting their crypto revenue significantly.”

asked by Brian Vieten · answered by Anthony Michael Denier