Webull Q2 Earnings Jump After Crypto Rally

Webull Corporation (NASDAQ: BULL) reported record quarterly revenue and its strongest profitability since listing in second-quarter 2026 results released Aug. 19. Management attributed the surge in platform activity primarily to the SEC’s removal of the Pattern Day Trader (PDT) rule and a concurrent rally in crypto assets.

Record Quarter and Margins

Webull said total revenue for the quarter ended June 30, 2026, reached $198.8 million, a 51% increase year over year. Adjusted operating profit rose 169% to $62.6 million, representing a 31.5% adjusted operating margin. Adjusted net income was $43.2 million, with a 21.7% adjusted net margin. Adjusted operating expenses increased 26% year over year to $136.2 million but declined 6% sequentially, reflecting operating leverage as revenue growth outpaced expenses. On a GAAP basis, net income was $24.36 million, with basic earnings per share of $0.05 and diluted EPS of $0.04. The company called the quarter its best to date.

Trading Volumes and Catalysts

Trading-related revenue, which includes equities, options, crypto, and other transaction-driven income, rose 66% year over year to $147.7 million, accounting for about three-quarters of total revenue. Equity notional trading volume totaled $279 billion, up 73% year over year, while options contract volume reached 213 million contracts, a 68% increase. Daily Average Revenue Trades (DARTs) averaged 1.64 million, up 62% year over year. Management linked the surge in equities and options activity to the SEC’s elimination of the PDT rule on June 4, 2026, which removed the $25,000 equity requirement for frequent day traders. They said trading volumes in July and August remained broadly sustainable after the rule change. Shares rose on Aug. 19 alongside a broader crypto rally, which typically boosts platform activity.

Customer Assets and Strategic Priorities

Customer assets reached $28.5 billion, up 79% year over year, supported by $1.6 billion in net deposits during the quarter. Funded accounts totaled 5.13 million, an 8% increase, while registered users rose 13% to 28.2 million. International funded accounts reached roughly 810,000, with Asia-Pacific customer assets exceeding $5 billion. The average account size nearly doubled to more than $5,500. Management highlighted ongoing investments in active-trader tools, international expansion, and an institutional business. They also emphasized newer product lines such as AI-driven features and prediction markets, which generated about $5–6 million in revenue, up 71% sequentially. The quarter demonstrated the platform’s operating leverage and potential for further margin expansion if revenue growth continues to outpace expenses.

“Q2 was the best quarter in Webull's history,” the CFO said in the company press release.