Webull's Q2 2025 Earnings Call: Contradictions Emerge on Crypto Trading Expansion and U.S. Relaunch Timelines

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: Adjusted operating margin up 18 percentage points YOY

Guidance:

• Midway through Q3, management is on pace for continued growth.
• AUM has surpassed $18B; July was the firm’s highest revenue month ever.
• Barring major market dislocation, Q3 expected to be another solid quarter.
• Crypto trading relaunched in the U.S.; launched in Brazil and Australia with more regions planned; expected to be quickly accretive.
• Will continue to lean into marketing to drive asset transfers and market share, supported by ample capital (warrants and SEPA).
• Will draw on standby equity facility opportunistically to fund product rollout and global expansion.
• Focus near term on organic growth; M&A considered opportunistically.

Business Commentary:

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

• The growth was driven by an increase in customer assets, explosive growth in equities volumes, on-time delivery of new offerings, and geographic expansion.

• Operating Profitability and Margin Expansion:

• Webull achieved operating profitability for the third consecutive quarter, with adjusted operating profit of $23.3 million.

• The company expanded its adjusted operating profit margin by 18 percentage points year-over-year, reflecting the strength of its strategy and execution.

• Crypto Trading Reintroduction:

• Webull reintroduced crypto trading in the U.S. and expanded it to Brazil and Australia, aligning with customer demands amidst a clearer regulatory path.

• This move aims to meet growing customer demand and provide access to alternative investment classes.

• Customer Asset and Deposit Growth:

• Customer assets grew by 64% year-over-year to $15.9 billion, with customer deposits over $1.4 billion, a 37% increase year-over-year.
• The growth was fueled by market recovery, strong corporate earnings, and the reintroduction of crypto trading.

Sentiment Analysis:

• “Total revenues grew 46% year-over-year to $131.5 million.” “Webull has now achieved 3 consecutive quarters of operating profitability.” “Customer assets grew 64% YOY to $15.9 billion” and “AUM has now surpassed USD 18 billion.” “July was our highest revenue month ever as a firm.” “Barring major market dislocation, we anticipate Q3 will be another solid quarter.” Management also expects crypto’s relaunch to be “accretive to our top line very, very quickly.”

Q&A:

• Question from Elias Noah Abboud (BofA Securities): Please detail organic growth drivers—net new assets, and where (geographies/demographics) you’re seeing outsized growth?
  Response: Net deposits were ~$1.5B, up 37% YOY, driven by Premium users and asset transfers; strongest momentum in Canada and Latin America, with early crypto traction in Brazil.

• Question from Michael John Grondahl (Northland Capital Markets): How is the new crypto rollout (U.S., Brazil, Australia) progressing, and what is the incremental opportunity?
  Response: Early but promising; regulatory backdrop now supportive and reintroduction should scale quickly, making crypto a meaningful, accretive contributor.

• Question from Michael John Grondahl (Northland Capital Markets): Marketing has shifted toward rewards/matching—how effective is it, and is current spend a good run-rate?
  Response: They’re leaning in to capture asset transfers; spend rose QoQ and will continue given strong ROI and ample capital.

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

• Question from Christopher Charles Brendler (Rosenblatt Securities): How meaningful could crypto be to the outlook after U.S. relaunch?
  Response: Management expects rapid, seamless adoption by existing users, making crypto quickly accretive to revenue.

• Question from Christopher Charles Brendler (Rosenblatt Securities): What’s driving higher DARTs per funded account and engagement?
  Response: Stronger market volatility, low-margin rates via Webull Premium, and >70% YOY AUM growth are boosting activity.

• Question from Christopher Charles Brendler (Rosenblatt Securities): How should we view marketing levels going forward?
  Response: Expect continued elevated spend to accelerate AUM transfers and U.S. market share, supported by recent capital raises.

• Question from Edward Lee Engel (Compass Point): What’s the crypto strategy outside the U.S., and how are you viewing M&A given the cash position?
  Response: Plan to add crypto across regions subject to local regulators; near term focus is organic growth, with opportunistic M&A.

• Question from Robin Holby (TD Cowen): How many crypto assets are offered at launch, will you enable staking, and what differentiates the product?
  Response: Brazil launched with ~240 coins; U.S. launched with 50 and growing; staking/other features are planned, aiming for best-in-class spreads and experience.