Webull Corporation Class A Ordinary Shares (BULL) Earnings

Management highlights

### Core Strategic Pillars Progress - Pillar 1: Become the leading platform for active traders. The SEC's elimination of the Pattern Day Trader (PDT) rule, effective June 4, 2026, was a tailwind for Webull's core active trader customer base, which has an average account size well below the former $25,000 PDT threshold. Webull reached a top five position among all U.S. retail brokers for options trading for the first time in company history, driven by post-PDT rule share gains. - Pillar 2: Expand global footprint. Webull is now licensed across 35 global markets and operates live trading in 18 markets after Q2 launches in Spain, Argentina, and Colombia. Total international funded accounts reached approximately 810,000, with APAC customer assets exceeding $5 billion. The acquisition of Pi Securities in Thailand is expected to close at the end of August 2026, and will immediately add scale, high-quality local active accounts, and position Webull for further regional growth. In Argentina, Webull completed its first customer-initiated tokenized equity trade, expanding regional product capabilities. - Pillar 3: Grow institutional business. After receiving a U.S. clearing license from FINRA in April 2026, Webull is building out its future clearing platform, but does not expect to begin clearing client trades for some time. The institutional product suite was expanded to add futures and prediction markets, and a new partnership with Monarch Markets gives accredited investors access to late-stage private companies via special purpose vehicles. ### AI Product Development - Webull's AI-powered trading intelligence tool Vega added 160,000 new users in Q2, bringing total active Vega users to 480,000, up 12% quarter-over-quarter. Engagement from active traders is up 23% quarter-over-quarter, with active traders remaining the heaviest users of the tool. - Webull connected its MCP server to leading third-party AI models, enabling users to conduct research, build custom tools, and execute trades via natural language. This is a key milestone in the development of agentic trading capabilities, and builds on Webull's technical infrastructure advantage in this emerging space. ### User and Asset Growth - Total registered users grew to 28.2 million, up 13% year-over-year, with 600,000 new registered users added in Q2. Total funded accounts reached 5.13 million, up 8% year-over-year, with 132,000 gross new funded accounts and 20,000 net new funded accounts (the gap reflects ongoing active pruning of dormant, low-value accounts). Quarterly retention rate hit 97.3%. - Total customer assets grew 79% year-over-year to $28.5 billion, with an average customer account size of nearly $5,500 (up nearly 100% year-over-year). Net customer deposits in Q2 were $1.6 billion, up over 7% year-over-year. ### Trading Volume - Total equity notional volume was $279 billion, up 73% year-over-year and 7% sequentially. Total options contract volume reached 213 million contracts, up 68% year-over-year and 34% sequentially. ### Financial Performance - Total Q2 revenue hit a record $198.8 million, up 51% year-over-year, with accelerating growth from Q1 2026. Adjusted operating expenses were $136.2 million, up 26% year-over-year and down 6% sequentially, driven by marketing spend normalization. Adjusted operating profit hit a record $62.6 million, up 169% year-over-year, for an adjusted operating margin of 31.5%. Adjusted net income was $43.2 million, for a net margin of 21.7%. Excluding marketing expenses, adjusted operating margin has held steady at ~40% per quarter since Q3 2024, demonstrating strong underlying platform economics.

Guidance

- Management reaffirmed that Webull's technology-driven business model has significant inherent operating leverage, which will continue to expand as revenue scales, supporting ongoing margin expansion. - Marketing spend will normalize through the remainder of 2026 as the amortization of 2025's aggressive asset match promotion costs rolls off. Management expects full-year 2026 marketing spend to stay between Q2 2026 (lower) and Q1 2026 (higher) levels, with no material further decline expected from Q2 levels. - Management expects the elevated trading activity and volume gains following the elimination of the PDT rule to be durable, and not a temporary one-time bump. Volumes are not expected to revert to pre-PDT levels, with the new higher activity level already sustained through June, July, and early August 2026. - Further product rollouts for AI-powered agentic trading capabilities, focused on trade execution functionality, are expected to launch by the end of 2026.

Segment performance

Trading-related revenue: $147.7 million, up 66% year-over-year and 33% quarter-over-quarter, contributing 74.3% of total revenue. Average daily trades (ADTs) hit 1.64 million, up 62% year-over-year and 25% quarter-over-quarter. Interest-related income: $42.8 million, up 18% year-over-year, contributing 21.5% of total revenue, driven by higher AUM, margin loan growth, and higher client cash balances. Crypto revenue was approximately $2.25 million, contributing just over 1% of total Q2 revenue. Prediction markets revenue was an estimated $5-6 million, up 71% quarter-over-quarter. Institutional segment: Institutional AUM exceeds $1.4 billion, accounting for approximately 5% of total company AUM, with the large majority of institutional clients based outside the U.S.

Risks & headwinds

- All forward-looking statements about future performance are inherently uncertain, and actual results may differ materially from current expectations based on unidentified risk factors outlined in Webull's SEC filings. - Trading volumes and revenue are sensitive to broader stock market volatility and sentiment; while Webull's active trader base makes the business more insulated from market downturns than peers, it is not completely immune to extended bear market conditions that can reduce overall trading activity over time. - The buildout of Webull's U.S. self-clearing platform and international institutional pipeline is taking longer than initially expected, with uncertainty around the exact timeline for commercial launch of new clearing capabilities.

Analyst Q&A

• Q: Is the PDT rule elimination benefit driven by customers trading more in existing accounts, or by asset consolidation from other brokers? How durable is the benefit? /

  A: The benefit comes from both channels. Webull actively targeted previously restricted active traders that split activity across multiple accounts to avoid PDT rules. While ACAT transfer data undercounts deposits from these traders (who often hold no securities to transfer), Webull saw considerable new net deposits from this cohort. July and early August volumes have remained elevated after the initial June bump, with options holding steady and August trending stronger than July. The higher activity level is expected to be permanent. The removal of trading limits also led to a significant increase in the number of smaller trades per volume unit, which improves Webull's take rate and payment for order flow revenue, creating a double positive for the business.

• Q: What is the strategy behind cleaning up dormant funded accounts, and when will this pruning process roll off? /

  A: Dormant account pruning is a required compliance process under U.S. state unclaimed property rules, which requires liquidating low-value inactive accounts and remitting balances to state regulators. Most of the accounts being pruned are low-value (average $10-$15 AUM) accounts that signed up during 2021's meme stock frenzy for small deposit promotions, never traded, and generate no revenue. The process cleans up Webull's account base, and the company is replacing these low-quality drain accounts with higher-quality active funded accounts, which is a key driver of the rapid increase in Webull's average account size. There is no set end date, as dormant account pruning is an ongoing routine operational activity for retail brokerages.

• Q: How does Webull's agentic AI offering differ from competitors, and what is the current adoption and use case? /

  A: Webull is focusing on phased, responsible rollout of agentic AI, starting with portfolio research, trade analysis, and portfolio building, rather than prioritizing algorithmic execution immediately. Webull has integrated its MCP server with all major large AI model platforms, emphasizing customer education for this entirely new interface type. Early use cases include natural language queries to quickly analyze market activity and portfolio data, cutting down research time from hours to seconds. Further AI product updates focused on execution capabilities will launch by the end of 2026. Management does not see volume from agentic trading as material enough to break out at this very early stage of development.

• Q: Is there a first mover advantage to Webull being ready for the PDT rule change ahead of peers? /

  A: Webull gained significant share of voice around the PDT rule elimination, being mentioned in ~90% of major media coverage of the change, thanks to advance preparation, customer education, and media outreach. This first mover exposure drove significant new customer interest for Webull, which is disproportionately positioned to benefit from the rule change relative to larger traditional brokers that target higher net worth clients. While the broader industry will see a rising tide lift all activity, Webull's early readiness and focus on the sub-$25,000 active trader demographic gives it a durable competitive advantage from the rule change.