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    BULL
    Earnings call· Dec 2025(Q4 FY25)

    Webull Q4 FY25 earnings call BULL

    Mar 4, 2026 Source

    Executive summary

    Webull Q4 FY25 — Record Revenue and Strong Profitability Driven by Active Trader Engagement and Global Expansion

    Webull concluded its first full year as a public company with record revenue and strong operating profitability, driven by its focus on active traders and strategic global expansion. The company successfully integrated AI tools like Vega, expanded its product offerings including prediction markets and crypto, and grew its international footprint. While marketing spend increased significantly in Q4 to fuel customer and AUM growth, management remains committed to balancing investment with disciplined execution and expects to maintain strong operating margins.

    Highlights

    5

    • Full-year 2025 revenue reached $571 million, representing 46% growth from 2024.

    • Customer assets reached an all-time high of $24.6 billion in Q4 FY25, an 81% increase year-over-year.

    • Adjusted operating profit margin improved by 14.6 percentage points annually to 19.3% for the full year 2025.

    • Webull Premium subscribers reached 102,000 by year-end, surpassing the 100,000 target.

    • Net deposits in Q4 FY25 were $3.9 billion, a 225% increase year-over-year.

    Concerns

    2

    • Adjusted operating expenses increased by 62% year-over-year in Q4 FY25 to $143.6 million, primarily due to increased marketing and branding investments.

    • Interest-related income was roughly flat sequentially in Q4 FY25, as declines in fully paid stock lending revenues offset increases in other categories.

    Guidance & targets

    6
    CategoryTargetConfidence
    Webull Premium subscribers
    Double current base
    medium materiality
    High
    Digital asset licenses
    Bring online in a number of other markets
    medium materiality
    Medium
    Meritz notional equity traded volume
    10x current volume
    medium materiality
    High
    Crypto revenue contribution
    More material contribution
    medium materiality
    Medium
    B2B business size relative to retail
    Equal to or greater than retail business
    high materiality
    High
    Crypto trading licenses
    2 more licenses
    medium materiality
    Medium

    Segment performance

    1
    SegmentRevenueYoYQoQMargin
    International (non-U.S.)
    Strong growth in non-U.S. broker-dealer flow, driven by exporting the U.S. retail experience and competitive pricing.
    Funded accounts: >760,000APAC customer assets: >$3 billionCanada customer assets: $1.5 billion (on track to reach soon)Canada customer assets: >$1 billion (4 months ago)Hong Kong customer order flow: nearly doubled (after zero commission in Nov 2025)
    		—more than doubled——

    Operational metrics

    28
    Adjusted operating expenses
    $460.7 millionup 24% from 2024
    FY25

    Elevated but disciplined increase as the company invests in strategic product offerings and market expansion.

    Adjusted operating profit
    $110.3 million
    FY25

    Strong operating profitability for the full year.

    Adjusted operating profit margin
    19.3%up 14.6 percentage points from 2024
    FY25

    Significant improvement in profitability.

    Adjusted operating expenses
    $143.6 millionup 62% year-over-year
    Q4 FY25

    Primarily driven by increased marketing and branding investments.

    Adjusted operating profit
    $21.6 million
    Q4 FY25

    Fifth consecutive quarter of operating profitability.

    Adjusted operating profit margin
    13%
    Q4 FY25

    Consistent profitability.

    Adjusted net income
    $14.6 million
    Q4 FY25

    Represents 8.8% of revenue.

    Adjusted net income
    $84 million
    FY25

    First year as a public company.

    Operating profit margin ex-marketing
    45%
    Q4 FY25

    Demonstrates strong operating leverage when excluding marketing investments.

    Marketing expense as percentage of revenue
    23%-24%down from 35% in 2024
    FY25

    Reflects efforts to control marketing spend relative to revenue growth.

    Registered users
    26.8 millionup 15% year-over-year
    Q4 FY25

    Driven by marketing investments and strong market demand.

    Funded accounts
    5.03 millionup 8% year-over-year
    Q4 FY25

    Definition: accounts with initial deposit remaining above 0 for 45 consecutive days.

    Quarterly retention rate
    97%
    Q4 FY25

    High retention rate for funded accounts.

    Customer assets
    $24.6 billionup 81% year-over-year
    Q4 FY25

    All-time high, reflecting strong trading volumes.

    Net deposits
    $3.9 billionup 225% year-over-year
    Q4 FY25

    Record deposits in the quarter, driven by successful marketing.

    Cumulative net deposits
    $8.6 billion
    FY25

    Total net deposits for the full year.

    Equity trading volume (notional)
    $732 billionup 59% year-over-year
    FY25

    Record trading volumes across all asset categories.

    Options trading volume (contracts)
    550 millionup 19% year-over-year
    FY25

    Strong growth in newer products.

    Equity notional volume
    $239 billionup 87% year-over-year
    Q4 FY25

    Strong growth in core offerings.

    Options contract volume
    154 millionup 38% year-over-year
    Q4 FY25

    Continued growth in core offerings.

    Prediction contracts traded
    162 million
    Q4 FY25

    Exciting innovation with strong momentum.

    Webull Premium subscribers
    102,000surpassing 100,000 target
    year-end 2025

    Subscription-based service for active traders.

    Vega AI weekly active users
    1.2 million
    weekly

    AI assistant launched at the end of 2025.

    Trading-related revenues
    $112.5 millionup 56% year-over-year
    Q4 FY25

    Supported by momentum and strong trading activity across asset classes.

    DARTs (Daily Average Revenue Trades)
    1.2 million
    Q4 FY25

    The transcript states '1.2 million (sic) [ 1,202 ]'. Given the context of strong trading activity and 5 million funded accounts, 1.2 million DARTs is used as the more plausible figure.

    Interest-related income
    $43.5 millionup 31% year-over-year
    Q4 FY25

    Primarily driven by higher interest earned on client cash, margin lending, and corporate cash.

    Customer margin balances
    $689 millionup 43% year-over-year
    end of Q4 FY25

    Reflects higher utilization from premium customers.

    Promissory note balance
    $65 milliondown $35 million from beginning of Q4
    end of Q4 FY25

    Company paid down $35 million of the principal in Q4.

    Industry KPIs

    1
    MetricValueDetails
    Net interest income$43.5 millionUSD

    Product announcements

    9
    ProductTypeDetails
    Vega AI assistantlaunch
    Webull Premiumupdate
    BlackRock model portfolioslaunch
    Crypto trading (U.S.)update
    Crypto trading (Australia and Brazil)launch
    Prediction marketslaunch
    Sports prediction marketsroadmap
    Webull platform (Netherlands)launch
    Webull licenses (Germany, Italy, Spain, Portugal)expansion

    Deals & partnerships

    2
    Webull PayAcquisition of crypto business to reintroduce crypto trading for U.S. customers.

    Enabled reintroduction of crypto trading for U.S. customers.

    Meritz Financial GroupPartnership to increase access to the U.S. market for Korean investors.

    Strategic partnership for B2B expansion, with significant notional trading volume already achieved.

    Risks & headwinds

    3
    Elevated marketing spendQ4 FY25, but management expects Q1 FY26 to be 'much lighter'.

    Q4 FY25 adjusted operating expenses up 62% YoY to $143.6 million, primarily due to marketing.

    Mitigation: Marketing spend is performance-based and dynamically adjustable; management aims to maintain strong operating margins and keep marketing expense as a percentage of revenue controlled (23-24% in FY25, down from 35% in FY24).

    Flat sequential interest-related incomeQ4 FY25

    Interest-related income was 'roughly flat' sequentially in Q4 FY25.

    Mitigation: Attributed to normalization of borrowing rates for hard-to-borrow securities, which had elevated revenues in prior quarter. Business model is relatively resilient to interest rate changes, and this revenue stream is expected to expand long-term with client asset growth.

    Regulatory and political oversight of prediction marketsOngoing

    discussed_not_quantified

    Mitigation: Management is waiting to see the direction of regulatory and political oversight before committing to doubling down on the product.

    What to watch in Q1 FY26

    5

    Crypto revenue contribution

    Q2 FY26
    Currentde minimis
    Targetmuch more material

    Why it matters

    Significant crypto revenue contribution is expected after key product rollouts, which could be a new growth driver.

    I think there'll be much more material conversations to have for Q2 in terms of crypto revenue contribution.

    Q&A highlights

    5

    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

    2 min read6 chapters

    Detailed Narrative

    01

    AI Integration and Vega's Impact

    Webull is at the forefront of AI integration in the investing industry, notably with the launch of Vega, an AI assistant for trading and platform guidance. Vega provides real-time insights, AI-generated trading ideas, market data, and portfolio monitoring. Since its launch a few months ago, Vega assists 1.2 million global users weekly, with 10% of weekly active users deploying the tool and answering over 10 million questions. AI is also being integrated across customer service, R&D, and internal operations to optimize and scale the global business.

    02

    Strategic Global Expansion

    Webull continued its global expansion in 2025, now operating in 14 countries. Funded accounts outside the U.S. reached over 760,000, and APAC customer assets surpassed $3 billion. The company launched its platform in the Netherlands and secured licenses in 4 additional EU markets (Germany, Italy, Spain, Portugal). The partnership with Meritz Financial Group has facilitated over $1 billion notional in equity trading for Korean investors, with expectations for significant growth.

    03

    Growth in Customer Assets and Deposits

    Customer assets reached an all-time high of $24.6 billion in Q4 FY25, an 81% year-over-year increase and a $3.4 billion sequential increase. This growth was supported by record net deposits of $3.9 billion in Q4, a 225% year-over-year increase, bringing cumulative net deposits for the full year to $8.6 billion. This reflects successful marketing campaigns targeting high-net-worth active traders.

    04

    Product Diversification and Innovation

    Webull expanded its product offerings significantly in 2025. This included the reintroduction of crypto trading for U.S. customers via the Webull Pay acquisition, and launches in Australia and Brazil. Prediction markets were introduced, with over 162 million contracts traded in Q4, including 81 million in December alone. The company also launched BlackRock model portfolios for robo-advisor services and expanded Webull Premium, its subscription service, to 102,000 subscribers.

    05

    Operating Leverage and Marketing Strategy

    Despite a 62% year-over-year increase in adjusted operating expenses in Q4, primarily due to marketing and branding investments, Webull achieved a 13% adjusted operating profit margin. Management emphasized that marketing spend is strategic and performance-based, focused on customer and AUM acquisition. Excluding marketing, the cost base is well-controlled, with a 45% operating profit margin in Q4, demonstrating strong operating leverage. The company expects to scale revenues ahead of expenses over time⏳.

    06

    B2B Opportunities

    Building on its partnership with Meritz, Webull plans to significantly expand its B2B platform in 2026. The company sees substantial opportunities to offer its solutions to brokerage firms, high-net-worth individuals, family offices, and wealth advisors, leveraging its competitive pricing, technology, global presence, and product diversification. Management anticipates the B2B business could become equal to or greater than its retail business in the next several years.

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