Webull Corporation Class A Ordinary Shares Q1 FY2026 earnings call

### Strategic Direction and Long-Term Vision - Management identifies an inflection point in retail brokerage: competition is shifting from mobile user interface quality to API-based infrastructure that supports AI agent trading, and Webull is deliberately building to become a leader in this new ecosystem. - Three core long-term priorities are deepening the trading experience for self-directed active traders, expanding global footprint, and building B2B/institutional infrastructure.

### User and Customer Growth - Added 800,000 new registered users in Q1, bringing the total platform user base to 27.6 million registered users (15% year-over-year increase). - Added 80,000 new funded accounts, reaching a total of 5.11 million funded accounts (8% year-over-year increase), with a record high quarterly retention rate of 98.4%. - Customer assets reached $24 billion (90% year-over-year increase) and Q1 net deposits were $2.1 billion (over 90% year-over-year increase); sequential declines in both metrics reflected industry-wide Q1 market volatility, but customer engagement remained strong.

### Product and AI Initiatives for Active Traders - Three new AI-powered products are rolling out in 2026: Vega Analyst (customized institutional-grade research for retail traders, currently in beta testing), Portfolio Blueprint (one-click portfolio construction and copy trading), and AI Portfolio (agentic AI-driven portfolio management and trading). - Webull completed system updates ahead of the SEC's June 4 elimination of the pattern day trader (PDT) rule, and will support unlimited day trades for eligible customers on day one. - Trading volume growth: Equity notional volume rose 104% year-over-year to $261 billion (up 9.2% sequentially), options volume rose 31% year-over-year to 159 million contracts (up 3.2% sequentially), and futures volume grew 84% year-over-year and 27% sequentially, led by commodities futures demand amid market uncertainty.

### Global Expansion - Received approval to operate in 22 additional European Economic Area markets, and is now approved to operate across all of Europe. Launched in Germany, with further European rollouts planned through 2026. - Currently operates in 15 total markets, with zero-commission offerings live in 7 markets outside the U.S. Non-U.S. customer assets reached $4 billion, with over 790,000 funded accounts outside the U.S.

### B2B and Institutional Progress - Received U.S. self-clearing license, a major milestone that will enable in-house trade clearing and custody, strengthening B2B operational backbone and creating future cost synergies and operating leverage. - Released an MCP server that enables native interaction between AI agents and Webull's platform, positioning Webull as a preferred execution and custody layer for the emerging AI agentic trading stack. - Launched region-specific B2B products: Webull Connect for financial advisors in Australia, and TrustLink for trustees in Hong Kong. - Authorized a $100 million share repurchase program for Class A ordinary shares, reflecting confidence in long-term value and commitment to disciplined capital allocation. - Starting in May 2026, Webull will publish monthly operating metrics on its investor relations website to increase transparency for investors.

Webull's total Q1 2026 revenue was $159.9 million, a 36% year-over-year increase. Trading-related revenue (the largest segment) grew 36% year-over-year to $110.9 million, accounting for 69.4% of total revenue, driven by record volumes across core and new asset classes. Interest-related revenue grew 29% year-over-year to $40.1 million, accounting for 25.1% of total revenue, driven by growth in margin loan and client cash balances. Prediction markets contributed approximately 2% of total revenue, and crypto also contributed approximately 2% of total revenue. Institutional order flow represented 9.5% of total platform equity volumes in Q1. Adjusted operating profit was $14.8 million with a 9.3% operating margin, and adjusted net income was $9.2 million (5.8% of revenue). Adjusted operating expenses increased 64% year-over-year to $141.1 million, primarily due to higher marketing investments.

- Management expects marketing spend as a percentage of total revenue will decline over the next one to two years as revenue scales, leading to expansion of operating margins over time; absolute marketing spend may remain elevated to support strategic growth initiatives. - Management expects institutional order flow as a share of total equity volume will accelerate and increase meaningfully from the current 9.5% level as B2B infrastructure investments continue to bear fruit. - U.S. self-clearing operations are expected to become operational in Q4 2026, with cost savings and competitive benefits emerging after full implementation. - The impact of the PDT rule elimination on transaction volumes is expected to be a larger driver of growth in Q3 2026 rather than Q2 2026, with a low-end expectation of a 20% long-term increase in transactions from the rule change. - Management expects crypto revenue contribution will grow from the current ~2% to closer to 20% over the short term after new product launches in Q2 2026.

- Forward-looking statements (including growth projections, product launch timelines, and market share expectations) are based on current expectations and carry inherent uncertainty, with actual results potentially differing materially due to market conditions, regulatory changes, and other unforeseen factors, as detailed in Webull's SEC filings. - Q1 market volatility driven by sector sell-offs, escalating geopolitical tensions, rising energy prices, and inflation concerns negatively impacted sequential customer asset and net deposit growth industry-wide, and similar macro headwinds could pressure future results. - The emerging AI agentic trading space requires new risk controls and compliance frameworks, and there are inherent risks related to rogue AI agent behavior and AI hallucinations that require ongoing mitigation in collaboration with regulators. - Self-clearing implementation remains subject to final approval from DTCC and OCC, so benefits are not expected until the end of 2026, and delays could impact cost savings and B2B competitive positioning. - New product launches (such as crypto wallet and staking functionality) can be delayed if engineering resources are diverted to higher-priority strategic initiatives, which could impact near-term growth in new product segments.

Q: How will the elimination of the pattern day trader (PDT) rule impact Webull's trading activity and client growth, and what is Webull's competitive positioning for this change? / A: Webull will be ready to support unlimited day trades for eligible customers on the June 4 effective date, while most legacy brokers are not expected to be ready on day one due to outdated legacy systems and lower priority for the change. The average Webull account size is just below $5,000, meaning Webull's core client cohort is disproportionately impacted by the PDT rule. Management expects a low-end 20% long-term increase in transaction volumes from the rule change, and that the change will enable Webull to consolidate client assets from multiple brokerage accounts that active traders currently use to skirt PDT restrictions. Webull has a marketing and incentive plan prepared to drive this consolidation. The impact is expected to be most pronounced in Q3 2026 rather than Q2.

Q: Institutional order flow was almost 10% of total equity volume in Q1; how large can this segment become for Webull over time? / A: The growth in institutional order flow reflects early traction from years of B2B infrastructure investment. Institutional flow is a core driver of Webull's volume outperformance against peers in Q1, alongside strong engagement from Webull's core active retail cohort (who increase activity during volatility, unlike casual retail traders that step back) and growing international volume, particularly from Hong Kong. Management expects the share of institutional order flow will accelerate very quickly from the current ~10% level. Webull has now nearly 200 institutional clients onboarded, with a very strong pipeline that continues to grow after investments in 2025.

Q: What is the outlook for crypto revenue, and when will Webull roll out key new crypto products? / A: Crypto currently contributes ~2% of total revenue for Webull, similar to prediction markets, but represents a large long-term growth opportunity. Key new products: wallet functionality for coin-in/coin-out and staking were delayed from Q1 when engineering resources were diverted to prioritize building the MCP server for AI agent integration, but they are still on track to launch in Q2 2026. Around 20% of new Webull accounts open a crypto trade as their first transaction after funding, indicating strong latent demand that will be unlocked once the new products launch. Management expects crypto revenue can grow to ~20% of total revenue in the short term after these launches.

Q: How will the new U.S. self-clearing license benefit Webull's B2B business, and when will benefits be seen? / A: Gaining the self-clearing license required multiple years of work, but full operation is still pending final approval and onboarding with DTCC (for equities) and OCC (for options), so self-clearing is not expected to be operational until Q4 2026. Once live, self-clearing will significantly reduce per-transaction costs by eliminating third-party clearing fees. Lower costs will allow Webull to pass through savings to customers, greatly improving competitiveness for B2B business, which relies on competitive pricing to win institutional clients.