Webull swung to a second-quarter net profit of $24.4 million from a $28.3 million loss a year earlier. Revenue rose 51% to $198.8 million, according to unaudited results released yesterday (Wednesday).
One quarter earlier, the online broker lost $21.7 million as operating expenses rose 68% year over year. Costs moved the other way this time. Revenue increased 24% from the first three months of 2026 while total operating expenses fell 6% sequentially.
The reversal shows how quickly heavier options and equity activity can feed through Webull's income statement. It also leaves the company dependent on trading conditions: funded accounts grew only 8% year over year, far behind the 51% increase in revenue.
Trading Revenue Drives the Rebound
Trading-related revenue increased 66% to $147.7 million and supplied about three-quarters of total revenue. Options revenue rose to $88.4 million from $56.2 million, while equity revenue reached $33.5 million, up from $19.6 million.
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Webull recorded 213 million options contracts during the quarter, 68% more than a year earlier. Equity notional volume climbed 73% to $279 billion, and daily average revenue trades increased 62% to 1.64 million.
"Q2 was the best quarter in Webull's history," Chief Financial Officer H.C. Wang said. The company reported adjusted operating profit of $62.6 million, up from $23.3 million, and adjusted net income of $43.2 million, compared with $15.4 million.
| Metric | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Total revenue | $198.8 million | $131.5 million | +51% |
| Trading-related revenue | $147.7 million | $88.8 million | +66% |
| Net income attributable to Webull | $24.4 million | -$28.3 million | Turned profitable |
| Adjusted operating profit | $62.6 million | $23.3 million | +169% |
| Customer assets | $28.5 billion | $15.9 billion | +79% |
| Funded accounts | 5.13 million | 4.73 million | +8% |
Source: Webull Q2 2026 earnings release and presentation. Financial figures are unaudited; adjusted measures are non-GAAP.
GAAP operating expenses rose 13% year over year to $153.4 million, a slower pace than revenue. Brokerage and transaction costs increased to $44.3 million from $34.8 million as activity grew.
Marketing and branding spending was $35.0 million, up from $30.3 million a year earlier but down from $49.4 million in the first quarter. Earlier FinanceMagnates.com reporting on Webull's annual filing found that promotional spending had accelerated sharply in late 2025.
The latest release separately disclosed $12.4 million of contra revenue, promotional payments recorded as reductions in revenue under accounting rules. That was more than double the $5.1 million recorded a year earlier.
Retail Brokers Benefit From Heavier Activity
Other listed brokers also converted higher customer activity into revenue during the quarter. Robinhood's net revenue rose 32% to $1.31 billion, with options remaining its largest disclosed trading category and event contracts becoming its second largest.
Interactive Brokers reported a 28% increase in net revenue to $1.90 billion as commissions, customer accounts and margin lending grew, and its $1.06 billion of net interest income alone exceeded Webull's total quarterly revenue by more than five times.
Webull's mix is more concentrated in transaction activity. Interest-related income rose 18% to $42.8 million, equal to 22% of total revenue, while trading-related revenue accounted for 74%.
Assets Slip After the Quarter Ends
Customer assets reached $28.5 billion at the end of June, up 79% year over year, after Webull recorded $2.1 billion of net deposits during the quarter. Registered users increased 13% to 28.2 million, while funded accounts reached 5.13 million.
Webull also said Vega AI added about 160,000 users during the quarter, taking active users to roughly 480,000. The company has expanded its Model Context Protocol tools for natural-language research and trade execution.
Post-quarter data in the presentation showed customer assets falling to $27.3 billion in July from $28.5 billion in June. Registered users rose to 28.4 million, but funded accounts remained at about 5.1 million.
About 810,000 funded accounts were outside the United States. Following launches in Spain, Argentina and Colombia, Webull operated trading services in 18 markets and reported more than $1.4 billion of institutional assets under management.
