Webull Q2 FY2025 Earnings Call Transcript
Webull Corp (NASDAQ:BULL) reported its second-quarter financial results after the market close on Thursday.
Below are the transcripts from the second quarter earnings call.
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OPERATOR
Good evening and welcome to Webull’s second quarter 2025 conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing Star and zero on your telephone keypad. After today’s presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one on your telephone keypad. To withdraw your question, please press star and then two. Please note this event is being recorded. I would now like to turn the conference over to Carlos Questell, Webull’s Head of Investor Relations. Please go ahead.
Carlos Questell (Head of Investor Relations)
Good morning, good afternoon and good evening everyone. Welcome to Webull’s second quarter 2025 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. During the call we will be making 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 additional 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, they 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 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 US 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.
Anthony Denier (Group President and US CEO)
Thank you Carlos and hello everyone. Thank you for joining our second earnings conference call as a public company. As you all know, the market experienced extreme volatility in the second quarter, beginning with the sharp sell off triggered by the Liberation Day tariff announcement. The S&P 500 dropped over 12% in early April, but quickly rebounded after the most severe tariffs were paused. Strong corporate earnings, tame inflation data and speculative rallies in tech and AI stocks have fueled a full recovery with the S&P 500 reaching an all time high by the end of the quarter. As a result, the environment for retail self directed trading is the most favorable we have seen since February of 20. The market is undergoing a technology induced tectonic shift that only happens once every several years. One major shift came in the late 90s and early 2000s when trading moved from brick and mortar branches to online platforms. Then almost 20 years later, the transition from PC to mobile first trading launched the next shift which was accelerated by the widespread acceptance of of zero commission and pandemic lockdowns where trading became increasingly social. We’re now in a new era spurred by a more discernible regulatory environment, one that empowers fintech innovations and broadens access to products that were once out of reach. For retail investors, this evolution is opening the door to entirely new asset classes, enabling investors to trade everything from equities and bonds to crypto prediction markets and tokenized real world assets all within a single platform. Today’s new generation of retail investors demands. Direct control over their financial futures and. Webull is uniquely positioned to meet that demand not only as a trading platform offering the products they want, but also. As a trusted source of market data. And insights and as a community of like minded investors seeking to learn, share and grow together. I am happy to report that Webull is very well capitalized. Access to capital is critical to our ability to innovate and compete on the cutting edge. As you know, we completed our De SPAC to become a public company in the second quarter, raising over 200 million from the exercise and redemption of the Bull Z incentive warrants. In addition, in July we entered into a standby equity purchase agreement allowing us to access up to 1 billion of capital over the next three years at our discretion. To date we have raised 1 42.8 million through this facility. We will continue to draw on these. Funds, strategically deploying capital as market conditions and business opportunities warrant. This will put us in a position to continue delivering new products and enabling broader access to our differentiated platform globally. Now slide 2 summarizes our second quarter highlights. We delivered another strong quarter for Webull shareholders with year over year revenue growth, outpacing growth and operating expenses allowing another quarter of solid profits. Our total revenues grew 46% year over year to 1 31.5 million, largely attributed to an increase in customer assets which reached an all time high explosive growth in equities, volumes on time, delivery of new offerings and geographic expansion. We recorded adjusted expenses for the quarter of 108.2 million, representing a year over year increase of 20%. Our increase in expenses were mainly driven by higher brokerage and transaction charges attributable to growth in transaction volumes and higher marketing spend. Even so, this growth was far outpaced by our revenue expansion. Notably, a standout result, and one that I’m incredibly proud to announce here today, is that webull has now achieved three straight quarters of operating profitability. We posted a year over year increase in adjusted operating profit margin of 18 percentage points, bringing our total adjusted operating profit for the second quarter to to 23.3 million. This achievement underscores the strength of our strategy and execution and reflects our dedication to delivering value to our shareholders. Of course, our financial performance is a function of the quality of our offerings, so let’s move to Slide 3. We continue to scale our existing products while delivering against our roadmap for new offerings. Our resources are focused on initiatives designed to continue expanding our customer base and customer assets while increasing our wallet share. Webull Premium, our subscription based service for active traders and long term investors, was launched in March and to date has attracted 75,000 subscribers, well ahead of our internal target of 100,000 subscribers. By year end we are seeing steady demand for Webull Premium with average daily trading volumes by premium subscribers up across all product categories. We also expanded our partnership with Kalshi during the second quarter to begin offering crypto hourly contract trading and Fed events trading to our prediction market customers. Prediction markets provide an engaging and accessible way to trade, lower barriers of entry and offer precise tools for all experience levels. On the last earnings call I mentioned that we’ll be bringing back crypto trading to the Webull platform and we have delivered on that promise. Starting this week, webull customers in the US can trade crypto again through the Webull app. We have also launched crypto trading in Brazil and Australia and are actively exploring digital asset licenses in several other markets. We are introducing crypto to meet growing customer demand amidst a clearer regulatory path in the US and globally. Today’s investors are more sophisticated than ever and expect flexibility, control and access to alternative investment classes. Crypto is now a vital part of that mix. By reintroducing it, we are aligning with our users evolving needs and delivering the frictionless investing experience they expect. Finally, we are capitalizing on our technology infrastructure to seamlessly roll out the webull app to new geographies, expanding access globally. We launched our Latin American Webull app in Q2 and we have begun rolling. Out the Webull app in the Netherlands. Giving us a strong foothold across Latin America and European markets. Turning now to slide 4, here you can see our registered users and funded account growth. In the second quarter we added roughly 800,000 users, bringing the platform to a total of 24.9 million registered users, which translates to 18% year over year growth. Webull was originally launched as a global market data platform before evolving to become the leading digital investment platform we are today. As a result, we have a significant number of registered users in geographies where our trading platform is not yet available. We are committed to offering access to best in class market data and information to everyone whether or not they currently. Have a brokerage account. With us on the right side, you can see that the number of funded accounts is holding steady. Funded accounts are Webull brokerage accounts where the customer has made an initial deposit and the account balance has remained above zero for 45 consecutive calendar days as of the record date. Similar to other platforms, we count each customer only once, regardless of the number of funded accounts they hold. We saw nearly 10% growth year over year and despite the extreme market volatility in the quarter we added roughly 144,000 new funded accounts. However, the net funded accounts only increased by about 10,000 to 4.73 million as ...
