Webull Q2 2026 Earnings: Record Trading Volumes Drive 51% Revenue Growth

Webull (NASDAQ: BULL) reported Q2 2026 revenue of $198.8 million, up 51% year over year, while diluted EPS was $0.04 versus a diluted loss of $1.20 per share in the prior-year quarter. Record equity and options activity lifted trading-related revenue 66% to $147.7 million, helping adjusted operating profit reach $62.6 million at a 31.5% adjusted margin.

Core Financial Results

Revenue growth substantially outpaced the 13% increase in GAAP operating expenses, moving income before taxes and net income attributable to Webull into positive territory. Adjusted operating expenses rose 26% to $136.2 million, but this was still well below the 51% revenue increase.

The EPS comparison requires additional context. The prior-year quarter recorded a $518.9 million loss attributable to ordinary shareholders after preferred-share-related fair-value and other adjustments, compared with a $28.3 million net loss attributable to the company. No comparable preferred-share adjustments were recorded in Q2 2026.

Adjusted operating profit excludes share-based compensation, one-time transactions, and other expense or income. Adjusted net income also excludes share-based compensation, foreign-currency transaction gains and losses, and one-time items.

Business and Operating Performance

Trading-related revenue accounted for approximately 74% of total revenue and remained the main growth driver. Equity and options order-flow rebates increased to $113.0 million from $68.7 million, while handling-charge income rose to $34.8 million from $20.1 million. Interest-related income grew more moderately to $42.8 million from $36.3 million.

Customer growth was slower than the increase in trading activity, indicating that higher engagement among existing customers also contributed to the quarter. The following metrics show the difference between account growth, assets, and transaction volumes.

Management said updated active-trader functionality introduced following the June 4 elimination of the Pattern Day Trader Rule contributed to record trading volumes. Webull also reported approximately 480,000 active Vega AI users after adding about 160,000 during the quarter.

International funded accounts reached approximately 810,000. Webull launched in Spain, Argentina, and Colombia, bringing its licensed footprint to 35 markets and active trading operations to 18 markets. The company also announced the acquisition of Thailand-based Pi Securities and continued expanding its institutional and B2B offerings.

Profitability and Balance Sheet

Adjusted operating margin reached 31.5%, up from approximately 17.7% in the prior-year quarter. This operating leverage reflected revenue growth that exceeded both GAAP and adjusted expense growth.

Brokerage and transaction costs increased 27% to $44.3 million, consistent with higher trading volumes. Technology and development expenses rose 16% to $22.2 million, marketing and branding expenses increased 16% to $35.0 million, and general and administrative expenses were nearly flat at $51.8 million. Share-based compensation declined to $17.1 million from $27.0 million, limiting the increase in total GAAP operating expenses.

Promotional payments classified as contra revenue increased to $12.4 million from $5.1 million. These payments directly reduced reported revenue and grew faster than the top line during the quarter.

Webull ended June with $701.6 million in cash and cash equivalents, compared with $653.2 million at December 31, 2025. Total equity was $1.04 billion, while current borrowings included a $17.6 million revolving credit facility and $50.0 million of unsecured promissory notes. During the quarter, Webull repurchased and canceled 1,820,788 Class A shares at an average price of $6.03.

Management Commentary

Group President and U.S. CEO Anthony Denier attributed part of the trading increase to Webull’s ability to make its updated active-trader functionality available immediately after the rule change. He also emphasized continued investment in AI, international markets, and the institutional business.

CFO H.C. Wang described Q2 as Webull’s best quarter to date and pointed to the 31.5% adjusted operating margin as evidence of the platform’s operating leverage. Management did not provide quantitative forward guidance in the supplied results.

Recent Insider Trading

Over the reported six-month period, insiders purchased 69,719 shares across four transactions and sold 75,000 shares in one transaction, resulting in a net sale of 5,281 shares. The detailed report identified the following transaction with a clear direction and value.

The transaction data alone do not establish the insider’s view of Webull’s future performance.

Risks Investors Should Monitor

• Dependence on trading activity: Trading-related revenue represented approximately 74% of quarterly revenue. Equity and options volumes are sensitive to market conditions, making this revenue stream difficult to predict.
• Regulatory exposure: Webull relies partly on payment for order flow and operates regulated brokerage businesses across multiple jurisdictions. Changes in trading, prediction-market, AI, or payment-for-order-flow rules could affect revenue or compliance costs.
• Market-sensitive customer assets: Customer assets increased 79%, while net deposits grew 7%. Because customer assets include mark-to-market changes, adverse markets could reverse part of the asset growth and reduce trading activity or related revenue.
• Expansion and promotional costs: Brokerage expenses increased with transaction volumes, and contra revenue more than doubled. Continued product and geographic expansion could require additional technology, marketing, compliance, and operational spending.

Summary

Webull’s Q2 2026 results were driven by substantially higher equity and options activity, which pushed trading-related revenue higher and produced significant operating leverage. The company returned to GAAP profitability and expanded its adjusted operating margin while continuing to invest in AI, international markets, and institutional products. Future results will depend heavily on whether trading engagement remains elevated and whether expansion costs, promotional payments, and regulatory requirements remain manageable.