Strong top-line growth and record user engagement metrics are offset by sharply rising costs and declining profitability. The self-clearing approval and EU expansion are positive long-term catalysts, but near-term margin compression and the GAAP loss suggest the market may reprice for a slower path to profitability. Watch for Q2 guidance on expense discipline and PDT rule change impact on trading volumes.
Price Chart
Executive Summary
Webull reported Q1 2026 revenue of $159.9M (+36% YoY) with record trading volumes and customer assets of $24B (+90% YoY), but GAAP net loss widened to $21.7M from $13.1M net income a year ago due to a 68% surge in operating expenses driven by marketing, share-based compensation, and investment in global expansion. Adjusted operating profit fell to $14.8M from $28.7M, and adjusted net income dropped to $9.2M from $21.3M, reflecting margin compression as the company prioritizes growth over near-term profitability.
Key Facts
- Total revenues increased 36% YoY to $159.9 million.
- GAAP net loss attributable to the Company was $21.7 million vs. net income of $13.1 million in Q1 2025.
- Adjusted operating profit declined to $14.8 million from $28.7 million YoY.
- Adjusted net income decreased to $9.2 million from $21.3 million YoY.
- Total operating expenses increased 68% YoY to $162.3 million.
- Customer assets grew 90% YoY to $24 billion; net deposits grew 91% YoY.
- Equity notional volume surged 104% YoY to $261 billion; options contracts volume up 31% YoY to 159 million.
- DARTs increased 42% YoY to 1.3 million.
- FINRA approved Webull Securities US for self and correspondent clearing in April 2026.
- Company received permission to operate across the European Economic Area and launched in Germany.
Financial Impact
Revenue grew $42.5M YoY (+36%) to $159.9M, but GAAP net income swung to a $21.7M loss from a $13.1M profit. Adjusted operating profit margin fell from 24.4% to 9.3%.
Risk Factors
- Continued elevated marketing and SBC spending could further pressure margins and delay GAAP profitability.
- Revenue concentration in payment for order flow (PFOF) exposes the company to regulatory risk.
- Global expansion and new clearing infrastructure carry execution and integration risks.
- Share-based compensation of $17.2M in Q1 (up from $8.1M YoY) is a significant drag on GAAP earnings.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001213900-26-060085 |
| Document: ea029183001ex99-2.htm | 0001213900-26-060085 |
| Document: ea0291830-6k_webull.htm | 0001213900-26-060085 |
| Document: 0001213900-26-060085-index-headers.html | 0001213900-26-060085 |
| Document: 0001213900-26-060085-index.html | 0001213900-26-060085 |
| Document: 0001213900-26-060085.txt | 0001213900-26-060085 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
May 21, 2026 22w ago | 6-K | $1.92 $2.88 | ▲ +50.00% | ▲ +46.81% | $1.40 (−27.08%) |
Apr 24, 2026 26w ago | EFFECT | $2.30 $2.66 | ▲ +15.90% | ▲ +10.82% | $1.40 (−39.00%) |
Apr 21, 2026 26w ago | 6-K | $2.45 $2.48 | ▲ +1.12% | ▼ −5.78% | $1.40 (−42.86%) |
Apr 7, 2026 28w ago | 6-K | $1.25 $2.19 | ▲ +75.20% | ▲ +61.93% | $1.40 (+12.00%) |
US Market Status
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