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Webull Reports First Quarter 2025 Financial Results


Webull Reports First Quarter 2025 Financial Results

Total revenues grew 32% year-over-year to $117 million, reflecting strong account and trading volume growth

Customer assets increased 45% year-over-year, driven by increased customer net deposits

Disciplined execution alongside robust revenue growth driving profitability

ST. PETERSBURG, Fla., May 22, 2025 /PRNewswire/ -- Webull Corporation (NASDAQ: BULL) ("Webull" or the "Company") today announced financial results for the quarter ending March 31, 2025.

"We are proud to have delivered a very strong first quarter, driven by significant account and trading volume growth that reflects continued demand for Webull's differentiated trading platform," said Anthony Denier, Webull's Group President and U.S. CEO. "We believe our results speak to our strong value proposition, reliable and innovative platform, and focus on global distribution to meet the needs of our sophisticated retail customers. Moving forward we will remain focused on broadening our product portfolio, introducing new asset classes, and expanding access to customers globally, all with the goal of strengthening the customer experience to further expand our position as the advanced retail investment platform of choice."

"In the first quarter, we continued to execute on our strategy and achieved impressive momentum across the business, growing total revenues by 32% alongside strong improvements on the bottom line," said H.C. Wang, Group CFO of Webull. "We continue to see strong account growth as our global teams execute on our strategy in 2025 to address and meet the long-term investing needs of individual investors around the world."

First Quarter Business and Financial Highlights

Total revenues increased 32% year-over-year to $117.4 million.Trading-related revenue increased 52% year-over-year.Total operating expenses decreased 2.0% year-over-year to $96.8 million.Adjusted operating expenses increased 2.4% year-over-year to $88.7 million.Income before income taxes increased $29.3 million year-over-year from a loss of $9.8 million to income of $19.5 million.Net income attributable to the Company increased $25.5 million year-over-year from a loss of $12.6 million to income of $12.9 million.Adjusted operating profit totaled $28.7 million for the quarter, representing an increase of $26.4 million year-over-year and a 22 percentage point improvement in operating margin to 24.4%.Customer assets totaled $12.6 billion, representing 45% year-over-year growth, driven by strong net deposits, which grew 66% year-over-year.Registered users increased 17% year-over-year to 24.1 million users.Funded accounts increased to 4.7 million, representing 10% year-over-year growth.Equities notional volume grew to $128 billion, a 15% year-over-year increase.Options contracts volume grew to 121 million, an 8% year-over-year increase.DARTs increased to 924 thousand, representing a 44% year-over-year growth.

Company Highlights

In February, we partnered with Kalshi, the first CFTC-regulated exchange with prediction markets, to offer our users the ability to trade binary event contracts on the Webull platform. Webull initially offered S&P 500 and Nasdaq hourly binary contracts.In March, we successfully launched Webull Premium, a subscription-based membership service that unifies the Company's best-in-class products and offers an elevated investing experience for our users. As of May 15, 2025, Webull Premium had approximately 40,000 users, representing nearly $2.0 billion in customer assets.Subsequent to the close of the first quarter, Webull consummated its previously announced business combination and its Class A ordinary shares, warrants and incentive warrants began trading on Nasdaq.In May, we enhanced the Webull Advisors platform by partnering with BlackRock to offer model portfolios. Webull Advisors now delivers intelligent, automated wealth management tools to its U.S.-based customers. Investors can now access a range of professionally managed, diversified portfolios across various asset classes, including alternatives and digital assets.In May, we also announced our collaboration with Visa on the U.S. platform, whereby Webull users can efficiently transfer money between their Webull brokerage account and external bank accounts through Visa Direct.

Conference Call Information

Webull will host a conference call to discuss its results at 5:00 p.m. E.T. today, May 22, 2025. The conference call can be accessed at https://event.choruscall.com/mediaframe/webcast.html?webcastid=SMs1hkAY or participants may dial 1-866-652-5200 (U.S.) or 1-412-317-6060 (international).

Following the call, a replay and transcript will be available on the Company's website at www.webullcorp.com/investor-relations, as well as the earnings press release and accompanying slide presentation.

About Webull Corporation

Webull Corporation (NASDAQ: BULL) owns and operates Webull, a leading digital investment platform built on next-generation global infrastructure. Through its global network of licensed brokerages, Webull offers investment services in 14 markets across North America, Asia Pacific, Europe, and Latin America. Webull serves more than 24 million registered users globally, providing retail investors with 24/7 access to global financial markets. Users can put investment strategies to work by trading global stocks, ETFs, options, futures, and fractional shares through Webull's trading platform, which seamlessly integrates market data and information, its user community, and investor education resources. Learn more at www.webullcorp.com.

Contacts

For Investors

[email protected]

For Media

5W Public Relations

Nicholas Koulermos

[email protected]

(212) 999-5585

Use of Non-GAAP Financial Measures

We use adjusted operating profit and adjusted operating expenses, both non-GAAP financial measures, to evaluate our operating results and for financial and operational decision-making purposes. Adjusted operating profit represents income (loss) from continuing operations, before income taxes, excluding share-based compensation expenses, and other expense (income), net. Adjusted operating expenses represent total operating expenses, excluding share-based compensation expenses.

We believe that both adjusted operating profit and adjusted operating expenses help identify underlying trends in our business that could otherwise be distorted by the effect of certain expenses that we include in income from continuing operations, before income taxes, and total operating expenses. We believe that adjusted operating profit and adjusted operating expenses provide useful information about our operating results, enhances the overall understanding of our past performance and future prospects and allows for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.

Adjusted operating profit and adjusted operating expenses should not be considered in isolation or construed as an alternative to income from continuing operations, before income taxes, and total operating expenses or any other measure of performance or as an indicator of our operating performance. Investors are encouraged to compare the historical non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted operating profit and adjusted operating expenses presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.

For more information on these non-GAAP financial measures, please see the table captioned "Unaudited Reconciliations of Non-GAAP and GAAP Financial Measures" set forth at the end of this press release.

Definitions

"Customer assets" refer to the sum of the fair value of all equities, ETFs, options, warrants, futures, and cash held by customers in their Webull brokerage accounts, net of customer margin balances, as of the record date. While customer assets are significantly impacted by mark-to-market valuations of customers' investments, we consider customer assets an important metric as growth in customer assets generally leads to an increase in trading volumes and revenue.

"DARTs" refers to daily average revenue trades, which is the number of customer trades executed during a given period divided by the number of trading days in that period. DARTs provide us information on how active our customers trade. A limitation of this metric is that it does not capture the size of the trade and revenue per trade varies significantly depending on size and type of trades.

"Equities notional volume" refers to the aggregate dollar value (purchase price or sale price as applicable) of trades executed over a specified period of time. Equity notional volume directly drives our equities trading revenue, as we earn payment for order flow or commissions for customers' equities trades based on a percentage of notional value. However, equity notional volume is highly sensitive to market conditions in the short-term, which makes predicting our equity trading revenue with precision difficult.

"Funded accounts" refer to Webull brokerage accounts into which the customer has made an initial deposit or money transfer, of any amount, whose account balance (which is measured as the fair value of assets in the customer's account less the amount due from the customer) has not dropped to or below zero for 45 consecutive calendar days as of the record date. Funded accounts reflect unique customers, and multiple funded accounts by a single customer are counted as one funded account. Growth in our funded accounts provides insight as to the effectiveness of our marketing efforts and our ability to acquire monetizable customers. Funded accounts are positively correlated with, but are not determinative, of customer assets, trading volumes, and revenue.

"Options contracts volume" refers to the total number of options contracts bought or sold over a specified period of time. Options contracts volume directly drives our options trading revenue, as we earn payment for order flow or commissions for customers' options trades on a per contract basis. However, options contracts volume is highly sensitive to market conditions in the short-term, which makes predicting our options trading revenue with precision difficult.

"Registered users" refer to those users who have registered on our platform but not necessarily have opened a brokerage account with one of our licensed broker-dealers. Growth in our registered users provides insight as to the popularity of the Webull App. While we do not generate revenue from registered users who do not have brokerage accounts with us, registering an account on the Webull App is the first step toward opening and funding a brokerage account with us.

Webull Corporation

Condensed Consolidated Statements of Financial Position

March 31,

2025

December 31,

2024

(Unaudited)

Assets

Cash and cash equivalents

$

297,480,490

$

270,728,008

Cash and cash equivalents segregated under federal and foreign requirements

906,742,825

939,232,153

Receivables from brokers, dealers, and clearing organizations

219,258,173

262,093,040

Receivables from customers, net

299,765,984

301,107,428

Prepaid expenses and other current assets

61,313,557

50,344,836

Customer-held fractional shares

105,839,019

108,252,531

Total current assets

1,890,400,048

1,931,757,996

Right-of-use assets

64,604,135

66,293,751

Property and equipment, net

33,204,229

33,629,770

Intangible assets, net

19,937,282

19,415,963

Goodwill

5,197,438

5,197,438

Deferred tax assets

10,159,867

12,374,499

Total non-current assets

133,102,951

136,911,421

Total assets

$

2,023,502,999

$

2,068,669,417

Liabilities, mezzanine equity, and shareholders' equity

Payables due to customers

$

1,312,281,169

$

1,378,625,130

Payables due to brokers, dealers, and clearing organizations

5,684,067

1,490,537

Lease liabilities - current portion

3,384,966

4,969,959

Accounts payable and other accrued expenses

56,827,363

61,079,799

Total current liabilities

1,378,177,565

1,446,165,425

Lease liabilities - non-current portion

10,318,113

10,438,555

Deferred tax liabilities

5,484,358

5,292,255

Total non-current liabilities

15,802,471

15,730,810

Total liabilities

1,393,980,036

1,461,896,235

Commitments and Contingencies

-

-

Mezzanine equity

Convertible redeemable preferred shares (aggregate liquidation preference of

$644,274,805 and $644,132,365 as of March 31, 2025 and December 31, 2024,

respectively; and aggregate redemption value of $2,883,451,470 and

$2,861,748,733 as of March 31, 2025 and December 31, 2024, respectively)

2,883,451,470

2,861,748,733

Total mezzanine equity

2,883,451,470

2,861,748,733

Shareholders' deficit

Class A ordinary shares ($0.0001 par value; 4,000,000,000 shares authorized,

143,531,581 and 139,307,244 shares issued and outstanding, respectively, as of

March 31, 2025 and December 31, 2024)

13,931

13,931

Class B ordinary shares ($0.0001 par value, 1,000,000,000 shares authorized,

no shares issued and outstanding as of March 31, 2025 and December 31, 2024,

respectively;)

-

-

Treasury shares (4,224,356 shares as of March 31, 2025 and December 31, 2024)

-

-

Additional paid in capital

-

-

Accumulated deficit

(2,241,614,509)

(2,241,066,624)

Accumulated other comprehensive loss

(13,426,170)

(15,195,946)

Total shareholders' deficit

(2,255,026,748)

(2,256,248,639)

Noncontrolling interest

1,098,241

1,273,088

Total deficit

(2,253,928,507)

(2,254,975,551)

Total liabilities, mezzanine equity, and total deficit

$

2,023,502,999

$

2,068,669,417

Webull Corporation

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

For the Three Months Ended

March 31,

2025

2024

Revenues

Equity and option order flow rebates

$

64,111,182

$

43,912,117

Interest related income

31,140,064

32,497,629

Handling charge income

17,547,010

9,704,509

Other revenues

4,570,579

2,821,465

Total revenues

117,368,835

88,935,720

Operating expenses

Brokerage and transaction

23,245,456

17,932,844

Technology and development

16,924,892

14,890,082

Marketing and branding

22,991,038

34,014,065

General and administrative

33,620,720

31,908,841

Total operating expenses

96,782,106

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