Webull's Q2 2025 Earnings Call: Contradictions Emerge on Crypto Expansion Timelines and User Growth Metrics

The above is the analysis of the conflicting points in this earnings call

Date of Call: August 28, 2025

Financials Results

• Revenue: $131.5M, up 46% YOY
• Operating Margin: Approximately 17.7% adjusted operating margin (=$23.3M on $131.5M revenue), up ~1,800 bps YOY; operating profit down $5.4M sequentially

Guidance:

• Q3 on pace for continued growth; management anticipates a solid quarter barring major market dislocation.
• AUM has surpassed ~$18B so far in Q3; July was the highest revenue month in company history.
• Crypto trading relaunched in the U.S., Brazil, and Australia; plans to expand to additional jurisdictions as licenses allow.
• Will continue to draw on the up-to-$1B standby equity purchase facility strategically to fund growth and product rollout.
• Marketing spend will "lean in" to capture asset transfers and market share in the U.S.

Business Commentary:

• Revenue and Profitability Growth:
• Webull Corp reported revenue of $131.5 million for Q2 2025, up 46% year-over-year.

• The growth was attributed to increased customer assets, explosive growth in equities volumes, on-time delivery of new offerings, and geographic expansion.

• Crypto Trading Reintroduction:

• Webull announced the reintroduction of crypto trading in the U.S., Brazil, and Australia.

• This was driven by growing customer demand and a clearer regulatory path in the U.S. and globally.

• Customer Asset Growth:

• Webull's customer assets grew 64% year-over-year to $15.9 billion, reaching an all-time high.

• This growth was fueled by a market recovery, substantial net deposits, and new asset classes like crypto.

• Operating Profitability:

• Webull achieved three consecutive quarters of operating profitability, with an adjusted operating profit of $23.3 million in Q2.
• This success was driven by disciplined execution, revenue growth outpacing expense growth, and strategic investments.

Sentiment Analysis:

• “Total revenues grew 46% year-over-year to $131.5 million.” “Webull has now achieved 3 consecutive quarters of operating profitability… adjusted operating profit was $23.3 million.” “Customer assets grew 64% year-over-year to $15.9 billion, an all-time high.” “Our AUM has now surpassed USD 18 billion and July was our highest revenue month ever… we anticipate Q3 will be another solid quarter.”

Q&A:

• Question from Elias Noah Abboud (BofA Securities): Please detail organic growth: net new assets in Q2 and where you’re seeing outsized growth by geography/demographics.
  Response: Net deposits were ~$1.5B (+37% YOY), driven by Premium subscribers, post-listing brand confidence, favorable markets, and strong asset-transfer promos; fastest growth in Canada and LatAm (notably Brazil).

• Question from Michael John Grondahl (Northland Capital Markets): How is the crypto relaunch (U.S., Brazil, Australia) going and what’s the incremental opportunity?
  Response: Early but promising; regulators supportive; relaunch is Phase 1 with substantial accretive top-line potential given customer demand and integrated experience.

• Question from Michael John Grondahl (Northland Capital Markets): Update on marketing strategy shift and effectiveness?
  Response: U.S. focus shifted to rewards-based, balance-transfer promotions to attract higher-quality AUM; strategies vary by region; results evident in AUM growth.

• Question from Michael John Grondahl (Northland Capital Markets): Any updates on Kalshi, Premium, BlackRock models, or other new products?
  Response: Prediction markets expanding conservatively; Premium strong; more products are in the pipeline, leveraging the U.S. model globally.

• Question from Christopher Charles Brendler (Rosenblatt Securities): How meaningful could crypto be and what’s the impact on outlook from the U.S. relaunch?
  Response: Crypto was meaningful before removal; expect quick adoption and revenue accretion on relaunch due to existing user base and seamless integration.

• Question from Christopher Charles Brendler (Rosenblatt Securities): What is driving higher DARTs per funded account?
  Response: Market volatility, adoption of Webull Premium’s low margin rates, and substantial AUM growth are boosting engagement and activity.

• Question from Christopher Charles Brendler (Rosenblatt Securities): How to think about marketing spend levels from here?
  Response: They plan to lean into asset-transfer promotions to capture AUM, supported by strong capitalization (warrants and SEPA).

• Question from Edward Lee Engel (Compass Point): Crypto strategy outside the U.S.? And thoughts on M&A given cash on hand?
  Response: Rolling out crypto across jurisdictions as regulators allow; near term focuses on organic customer/AUM growth; M&A considered opportunistically.

• Question from Robin Holby (TD Cowen): How many crypto assets at launch, will staking be offered, and any key differentiators?
  Response: Brazil launched with 240 coins; U.S. with 50 (to grow); plans for staking and coin in/out; goal is best-in-class crypto trading with tight spreads.