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• Core Strategic Pillars & Product Development

• Webull's three core growth pillars are: establishing the platform as a top choice for active traders, expanding the global footprint by exporting the U.S. retail experience worldwide, and building the institutional business. AI is a core component of all product development.
• The firm's AI-powered intelligence tool Vega added 160,000 new users in Q2, bringing total active users to 480,000 (12% quarter-over-quarter growth), with active trader engagement up 23% quarter-over-quarter.
• Webull connected its MCP server to leading AI models to enhance its agentic AI offering, enabling natural language portfolio research, trade analysis, and simulation testing, with execution-focused AI functionality expected to launch by the end of 2026.
• The PDT rule elimination went live on June 4th; Webull's platform was fully prepared and delivered seamless unlimited day trades to qualified customers, driving a significant increase in trading volumes and record quarterly results. Webull reached a top five position among U.S. retail brokers for options trading for the first time.

• User and Asset Growth

• Total registered users reached 28.2 million, up 13% year-over-year, with 600,000 new registered users added in Q2.
• Total funded accounts reached 5.13 million, an 8% year-over-year increase, with 132,000 gross new funded accounts and 20,000 net new funded accounts after pruning dormant low-value accounts, with a quarterly retention rate of 97.3%.
• Total customer assets reached 28.5 billion USD, 79% year-over-year growth, with an average customer account size of over 5,500 USD, nearly doubled year-over-year. Net customer deposits were 1.6 billion USD, up 7% year-over-year.

• Trading Volume Performance

• Equity notional volume totaled 279 billion USD, up 73% year-over-year and 7% quarter-over-quarter. Options contract volume reached 213 million contracts, up 68% year-over-year and 34% quarter-over-quarter.

• Global Expansion

• Webull now holds licenses in 35 global markets and operates in 18 markets after Q2 launches in Spain, Argentina, and Colombia, with approximately 810,000 international funded accounts. APAC customer assets have grown to over 5 billion USD.
• The acquisition of Pi Securities in Thailand is expected to close at the end of August 2026, which will significantly increase regional AUM and enable further growth by combining Pi's local expertise with Webull's technology.
• In Latin America, Webull completed its first customer-initiated tokenized equity trade in Argentina, expanding regional product capabilities.

• Institutional Business Progress

• Institutional AUM exceeds 1.4 billion USD, accounting for approximately 5% of total AUM, with the large majority of clients based outside the U.S.
• After receiving a clearing license from FINRA in April 2026, the firm is building its future clearing platform, though live clearing is not expected to launch for some time.
• Product expansion for institutional clients now includes futures and prediction markets, plus a new partnership with Monarch Markets to offer access to late-stage private companies via special purpose vehicles.

• Financial Profitability

• Total revenue hit a record 198.8 million USD, up 51% year-over-year, with accelerating growth from Q1 2026. Adjusted operating expenses were 136.2 million USD, up 26% year-over-year and down 6% quarter-over-quarter due to marketing spend normalization.
• Record adjusted operating profit was 62.6 million USD, up 169% year-over-year, with an adjusted operating margin of 31.5%. Adjusted net income was 43.2 million USD, with a net profit margin of 21.7%. Excluding marketing, adjusted operating margin has stayed above 40% every quarter since Q3 2024, demonstrating strong operating leverage as revenue scales.

• Management reaffirms that the PDT rule elimination's positive impact on trading volumes is durable, not just a temporary post-change bump. July options volume remained steady, August volumes are trending stronger than July, and activity is not expected to revert to pre-PDT levels. The shift in customer trading behavior (more small, frequent day trades) is permanently positive for revenue via higher take rates and payment for order flow.
• Marketing spend will normalize through the remainder of 2026 as the amortization of 2025's aggressive asset matching promotion expenses rolls off. For the second half of 2026, marketing spend is expected to stay around Q2 2026 levels (not lower than Q2, and not higher than Q1 2026) as the firm continues investing in quality customer acquisition and global growth.
• Margin balances are expected to continue growing long-term alongside AUM; the July dip was a one-off fluctuation, and August margin balances are trending toward all-time highs as market risk appetite returns.
• Agentic AI product rollout will proceed in phases: current functionality focuses on research, portfolio analysis and simulation, with execution-focused features expected to launch by the end of 2026.
• Institutional business overseas, which has progressed slower than initially expected, is now ready to scale, with new partner onboarding expected to conclude by the end of August 2026.

Webull reports two core revenue segments for Q2 2026: 1) Trading-related revenue: Totaled 147.7 million USD, representing 74.3% of total revenue, with 66% year-over-year growth and 33% quarter-over-quarter growth. Average daily trades increased 62% year-over-year to 1.64 million, and 25% quarter-over-quarter. 2) Interest-related income: Totaled 42.8 million USD, representing 21.5% of total revenue, with 18% year-over-year growth. This segment has been stable in recent quarters, driven by higher AUM, growth in margin loans and client cash balances. Crypto revenue was 2.25 million USD in the quarter, representing just over 1% of total revenue. Prediction market revenue is currently between 5-6 million USD per quarter, growing month-over-month.

• Forward-looking statements about future growth, product development and performance contain inherent uncertainty, and actual results may differ materially from expectations based on factors referenced in the firm's SEC filings and press releases.
• Dormant account pruning is a required compliance process under U.S. state regulations that incurs operational costs and per-account fees for the firm.
• Crypto revenue remains a very small portion of total revenue, and regulatory uncertainty for the asset class has constrained growth to date.
• Clearing platform buildout following the April 2026 FINRA license approval is ongoing, and live clearing service is not expected to launch for a significant period of time.

Q: Is the PDT rule elimination benefit coming from customers trading more actively, or from asset consolidation from other brokers, and will the benefit be durable? / A: The benefit comes from both channels. Webull aggressively targeted active traders who previously split their activity across multiple accounts to avoid PDT restrictions. While ACAT transfer data does not capture these flows (most day traders do not hold securities to transfer), the firm saw significant new net deposits from this cohort. Post-change volumes have stayed elevated into July and August, so activity will not revert to pre-PDT levels. The new rule has also changed customer behavior, leading to more frequent small day trades, which increases payment for order flow per volume, creating a double positive for revenue.

Q: Can you explain why you are pruning dormant accounts, and when will this pruning process end? / A: Pruning dormant accounts is a required compliance process under U.S. state unclaimed property rules, where low-activity accounts must be liquidated and funds transferred to state regulators. Most of the accounts being pruned are low-value accounts opened during the 2021 meme stock trading frenzy via small deposit promotions, where users signed up only to get free stock and never traded. Pruning cleans up the account base, replaces non-revenue accounts with high-quality new accounts, and explains the gap between gross and net new funded accounts. This process is an ongoing standard operational requirement for broker-dealers.

Q: What is the differentiation between Webull's agentic AI offering and competitors' offerings, and what volume currently comes from this functionality? / A: Webull's current focus is on integrating AI for natural language portfolio research, trade analysis, and strategy simulation, with a heavy emphasis on customer education for this new technology, rather than prioritizing algorithmic execution that some peers focus on. The firm is rolling out AI functionality incrementally in a responsible, transparent fashion, with execution-focused AI features planned for launch towards the end of 2026. The firm did not provide specific volume attribution for agentic AI trading at this early stage.

Q: Is there a first mover advantage for Webull from being ready for PDT elimination ahead of peers? / A: Yes, Webull captured significant share of voice during the PDT rule change: the firm was mentioned in nearly 90% of news articles covering the rule change, after proactive media outreach and customer education ahead of the launch. Webull's core customer base of younger, smaller, active traders is exactly the demographic that benefits most from PDT elimination, giving the firm a natural competitive edge over traditional platforms that focus on higher-asset customers. While the entire industry benefits from higher volumes, Webull has captured incremental new users and activity from this first mover advantage.