Webull Corporation Class A Ordinary Shares 2026 Q2 Earnings Call

Please go ahead. Good morning, good afternoon, and good evening, everyone.

Welcome to Webull's second quarter 2026 conference call. Earlier today, we issued a press release detailing our second quarter financial results. A copy of the release can be found on our IR website at webullcorp.com under the Investor Relations tab. Please note that this call is being recorded and will be available for replay via our IR website. This call will include forward-looking statements about the company's performance and business outlook. These statements are based on how we see things today and contain elements of uncertainty. For information concerning the factors that can cause actual results to differ materially, please refer to the cautionary statement and risk factors contained in our filings with the Securities and Exchange Commission and press release, both of which can be accessed via our website.

Today's presentation will include a discussion on adjusted operating expenses, adjusted operating profit, and adjusted net income, all non-GAAP financial measures. Reconciliation of these non-GAAP financial measures to their most directly comparative GAAP measures are included in the press release that we issued today. It is important to note that although we believe that these non-GAAP measures provide useful information about our operating results, this should not be considered in isolation or construed as an alternative to their directly comparative GAAP measures. Furthermore, other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. We encourage our investors and others to review our financial information in its entirety and not rely on a single financial measure. With me today is our Group President and U.S. CEO, Anthony Denier, and our Group CFO, H.C. Wang. We will begin with prepared remarks and then take questions at the end.

With that, I'd like to now turn it over to Anthony.

Thank you, Carlos, and hello, everyone. Thanks for joining us today. Before I walk through our second quarter results, I want to share an update on the SEC's elimination of the Pattern Day Trader rule, or PDT rule, that became effective on June 4. Last quarter, we highlighted our expectation that the elimination of the PDT rule would be a strong tailwind for our active traders and noted that our engineering team was busy ensuring our systems were ready for the change. Today, I am pleased to share that we successfully navigated the changes in the market resulting from the removal of the PDT rule. From the moment the rule change took effect, Webull's advanced technology platform enabled every qualified customer to place unlimited day trades with the full benefit of our zero commission model behind them.

Executing on this rule change was our defining event for the quarter and contributed to a significant increase in trading volumes and record quarterly results. Turning now to slide 2. In Q2, we delivered record revenue of $198.8 million, up 51% year-over-year, driven by continued asset growth and strong trading activity across all our core asset classes, with options and equities being particularly strong on the back of the PDT rule change. Customer assets reached $28.5 billion, representing 79% year-over-year growth. While we continue to aggressively invest in organic growth initiatives and remain committed to building this business for long-term category leadership, the Q2 results also demonstrate the operating leverage in our business model as revenue growth significantly outpaced the growth in adjusted operating expenses.

As a result, we delivered record adjusted operating profit of $62.6 million, up 169% year-over-year, representing an adjusted operating margin of 31.3%. Now turning to slide 3, which highlights key developments in Q2 towards executing on our 2026 strategic roadmap. Webull's focus remains centered on our three core growth pillars. First, establishing Webull as a platform of choice for active traders. Second, expanding our global footprint by exporting the U.S. retail experience worldwide. Third, building our institutional business. As we have highlighted over the past year, AI remains core to everything we are building. For active traders, we continue to roll out AI-powered tools that further enhance the Webull user experience. Vega, our AI-powered intelligence system, continues to see very good traction with our active trader base.

We added approximately 160,000 new Vega users in Q2, bringing the total number of active Vega users to 480,000, an increase of 12% quarter-over-quarter. Active traders remain the heaviest Vega users, with engagement up approximately 23% quarter-over-quarter. During the quarter, we further enhanced our position within the agentic stack with our MCP server being connected to leading AI models, enabling users to use natural language to conduct research, build tools, and execute trades through the Webull platform. This is an important step forward in agentic trading and further establishes Webull's infrastructure as a differentiator in agentic trading. We also significantly upgraded our paper trading offering, establishing parity with our live trading capabilities across asset classes and giving users an increasingly comprehensive environment to test and refine their trading strategies.

We believe this is a unique offering, empowering our users to create realistic simulations and gain invaluable experience in a no-risk environment. Turning to our international expansion efforts, we now have approximately 810,000 international funded accounts. We are licensed across 35 markets globally and operate trading activities in 18 markets following the Q2 launches in Spain, Argentina, and Colombia. We continue to leverage our global infrastructure, compliance expertise, and product depth to scale the U.S. trading experience globally. In APAC, our customer assets have grown to over $5 billion. We recently announced the acquisition of Pi Securities in Thailand, which is expected to close at the end of August. This acquisition will increase our AUM in the region significantly and positions us for further growth in Thailand as we combine Pi's expertise in the local market with our best-in-class technology platform.

In Latin America, we continue to expand our product offering, including in Argentina, where we completed our first customer-initiated tokenized equity trade, an important milestone as we continue to expand our product capabilities across the region. Finally, turning to our institutional business. We continue to make progress building out this business, with institutional AUM exceeding $1.4 billion as our customer base continues to grow, accounting for approximately 5% of our total AUM. The large majority of institutional clients are located outside of the U.S. Within the U.S., having received our clearing license from FINRA in April, our team is busy building the platform of our future, even though we are not currently clearing and do not anticipate clearing trades for some time. In addition to offering execution and custody services, we also expanded our institutional product offering to include access to futures and prediction markets.

We further announced our partnership with Monark Markets to provide accredited investors with access to late-stage private companies through special purpose vehicles, further broadening the investment opportunities available through the Webull ecosystem. On slide 4, I'll discuss our continued user and funded account growth. Our targeted marketing continues to drive adoption as we added approximately 600,000 registered users during the quarter, bringing our total to 28.2 million, up 13% from 24.9 million at the end of the second quarter of 2025. As a reminder, Webull has a considerable number of registered users that still take advantage of our data offerings in markets where our trading platform is not yet available. We remain committed to providing access to industry-leading market data and information to all users, regardless of their ability to currently invest on the platform.

On the right side of the slide, you can see funded account metrics, which showed steady growth. For context, funded accounts are defined as accounts where customers have made an initial deposit and the balance has remained above zero for 45 consecutive calendar days as of the record date. Funded accounts reached 5.13 million in the quarter, an 8% year-over-year increase. Growth in gross funded accounts was approximately 132,000, while net new funded accounts increased by approximately 20,000 users as we continue to actively address dormant accounts. Our quarterly retention rate was 97.3%. Turning now to slide 5. Customer assets increased 79% on a year-over-year basis to $28.5 billion. I would note that our average customer account has nearly doubled to over $5,500 over this period.

As you can see on the right-hand side of the slide, net customer deposits in the quarter were $1.6 billion, up over 7% on a year-over-year basis. On slide 6, you will find trading volumes for the quarter. As mentioned in my earlier remarks, our successful navigation of the PDT rule change drove meaningful share gains, helping us reach a top five position among all retail brokers in options for the first time in our history, and driving record volume in both equities and options during the quarter. Equity notional volume totaled $279 billion, up 73% year-over-year and 7% sequentially. While options contract volume reached 213 million contracts, up 68% year-over-year and 34% sequentially. With that, I will pass the call over to HC for a closer look at our financial results for the quarter.