Webull Corporation Class A Ordinary Shares Q4 FY2025 earnings call

• Webull's full year results show strong progress as a public company, with record revenue and improved operating profit margin. - Launched Vega, an AI assistant for trading, which currently assists 1.2 million global users each week. - Webull Premium has 102,000 subscribers, contributing 30% of AUM and 60% of overall margin debit balances. - Reintroduced crypto trading for U.S. customers, launched in Australia and Brazil, and exploring digital asset licenses in other markets. - Launched prediction markets, with over 152 million prediction contracts traded in the quarter. - Continued global expansion, with more than 760,000 funded accounts outside the U.S., APAC customer assets surpassing $3 billion, and partnership with Merit Financial Group. - Priorities for 2026 include sustaining and growing elite offerings for active traders, growing global business, and building on B2B platform. - In Q4, added roughly 1 million registered users, bringing total to 26.8 million, and 100,000 new funded accounts, totaling 5.03 million. Customer assets reached an all-time high of $24.6 billion in Q4. Equity notional volume was $239 billion, up 87% year-over-year, and options contract volume was $154 million, up 38% year-over-year.

In 2025, Webull recorded revenue of $571 million, a 46% growth from 2024. Customer assets reached $24.6 billion, an 81% increase from 2024. Equity trading volume increased by 59% to $732 billion, options volume rose by 19% to 550 million contracts. Adjusted operating expenses were $460.7 million, an annual increase of 24%. Adjusted operating profit was $110.3 million, with an adjusted operating profit margin of 19.3%. In Q4, total revenue was $165.2 million, up 50% year-over-year. Trading-related revenues increased 56% to $112.5 million. Interest-related income grew 31% to $43.5 million. Adjusted operating expenses in Q4 were $143.6 million, up 62% year-over-year. Adjusted operating profit in Q4 was $21.6 million, with an adjusted operating profit margin of 13%.

• Prioritize sustaining and growing elite offerings for active traders leveraging AI tools. - Continue growing global business by cementing position in existing markets and adding localized product offerings. - Build on B2B platform. - Q1 marketing spend expected to be lighter than Q4 due to the success of Q4. - Expect margins to continue improving as revenue base scales and diversifies, providing flexibility to invest in customers and AUM growth.

Q: Please dive into the marketing spend in the fourth quarter, how much went to new customer acquisition and incentives on folks bringing over balances, and if elevated level will continue?

A: Anthony said Q4 marketing expense was higher due to successful AUM growth, majority focused on high net worth active trading customers, net deposits in Q4 were record. HC added marketing expense as percentage of revenue came down from 35% in 2024 to 23 - 24% in 2025, majority is performance-based, flexible to calibrate.

Q: Comment on 2026 year to date trends in darts and equity versus option?

A: January was second best month ever, in volatile market, options business has higher margin, well-positioned with core customer base, global distribution, and B2B business expanding.

Q: How should we think about prediction markets in contributing to earnings and profitability in 2026?

A: Prediction markets are a tool to engage and keep clients engaged, not part of core business, but a great re-engagement and on-ramp tool.

Q: Attribute big growth to crypto or merits?

A: Net deposits purely from retail, crypto included, Merits is early, traded north of a billion notional in equity for Korean customers, B2B not attributable to net deposits.

Q: Update on capital priorities and M&A?

A: Focus on investing in growth, customer acquisition, AUM acquisition, technology, geographical expansion, M&A opportunistic.

Q: Plans to publish monthly metrics?

A: Evaluating, have disclosed more granular data, will release on more regular cadence when ready.

Q: Specific segments driving performance marketing growth?

A: International contribution doubling, crypto and prediction markets important, international cohort key, pushing pricing and user experience globally.

Q: What drove sequential increase in trading revenue segment?

A: Includes futures, crypto, prediction markets, commissions on foreign affiliates, Q4 jump due to growth in futures, consolidation of crypto business, and prediction markets.

Q: Promissory note balance decline?

A: Paid $35 million of principal in Q4, goal is to eventually pay it off, evaluating based on cash flow and strategic priorities.

Q: Customer funnel for prediction markets versus crypto, fee structure?

A: Prediction markets charge one penny commission per contract, receive exchange rebates, focused on active securities traders. Crypto targeting active traders, different models, near term focused on volume and engagement, not big revenue numbers yet