Profitable growth, but key cost catalysts face major delays

Active traders stay busy

Webull is built for people who trade from a phone and want more tools than a basic investing app gives them. The company has gained share with younger, self-directed investors, then pushed into more countries and into B2B services for foreign brokerages that want U.S. market access.

The main bear case used to be simple. Critics believed the company could grow but not make money. That case is retired now. Webull reported $571 million of revenue in 2025 and reached $28.5 billion in customer assets by Q2 2026, driven by sustained operating profitability and international traction in the APAC region.

The near-term setup got a massive boost from the SEC removal of the Pattern Day Trader rule on June 4, 2026. That rule had limited frequent day trading in smaller accounts. Webull active traders often have smaller accounts, and removing the rule has unlocked significant options and equity volumes.

This is not a clean win yet. Management recently announced they do not anticipate clearing trades internally for some time, delaying a major margin improvement lever. Additionally, the business still depends heavily on U.S. payment for order flow. If regulators change that model or if retail trading cools, the growth story will slow.

Paid for retail order flow

Webull makes money in a few ways. In the U.S., its largest revenue source is equity and option order flow rebates. In plain English, Webull routes customer orders to market makers and receives payment for that order flow. Outside the U.S., it can charge customers more directly through commissions and platform fees.

The second big piece is interest related income. Webull earns from customer cash deposits, margin loans, and stock lending. In 2025, interest related income was $154.3 million, or 27.0% of total revenue. That makes interest rates and customer cash balances important to results.

Smaller but important levers are growing. Prediction markets are generating $5 million to $6 million per quarter, significantly outpacing crypto revenue. The B2B side is also scaling, with institutional assets exceeding $1.4 billion and accounting for roughly 5% of total assets by Q2 2026.

Self-clearing was supposed to be the next major operating test. Webull received approval for a U.S. self-clearing license in early 2026. However, the rollout is delayed. This means the anticipated drop in transaction costs and improved pricing for institutional partners will not materialize in the near future.

Tools for traders, plus new bets

Revenue is still concentrated

The mix below uses Webull's 2025 Form 20-F revenue components for the year ended December 31, 2025. Webull does not present these as separate operating segments, so the split is a revenue-line view.

What can break

In one breath