Webull Swings to $24 Million Profit as Trading Revenue Jumps 66%

Webull swung to a second-quarter net profit of $24.4 million from a $28.3 million loss a year earlier, according to unaudited results released Wednesday. Revenue rose 51% to $198.8 million, while total operating expenses fell 6% sequentially after a 68% year-over-year jump in the prior quarter. Trading-related revenue surged 66% to $147.7 million, accounting for about three-quarters of total revenue, driven by a 68% increase in options contracts to 213 million and a 73% climb in equity notional volume to $279 billion. 

Chief Financial Officer H.C. Wang called Q2 the best quarter in Webull's history, with adjusted operating profit of $62.6 million and adjusted net income of $43.2 million. GAAP operating expenses rose 13% year over year to $153.4 million, with marketing spending of $35.0 million down from $49.4 million in Q1. The company disclosed $12.4 million in contra revenue, more than double the prior year's $5.1 million. 

Customer assets reached $28.5 billion at end-June, up 79% year over year, though they slipped to $27.3 billion in July. Funded accounts grew 8% to 5.13 million, while registered users rose 13% to 28.2 million. Webull’s interest-related income increased 18% to $42.8 million, accounting for 22% of total revenue, placing the firm’s revenue mix more heavily weighted toward transaction activity than peers such as Robinhood and Interactive Brokers.