Revenue growth reached 46.3% in 2025Q2, yet gross margins compressed to 73.5% from 80% levels seen throughout 2024, signaling rising costs of execution.
| Sales/Revenue | 458.45M | 571M | 390.23M | 389.6M | 388.33M |
| Revenue Growth % | 26.3% | 46.32% | 0.16% | 0.33% | - |
| Cost of Goods Sold | 100.46M | 128.75M | 79.31M | 66.42M | 59.76M |
| COGS % of Revenue | - | 22.55% | 20.32% | 17.05% | 15.39% |
| Gross Profit | 357.99M | 442.25M | 310.92M | 323.18M | 328.57M |
| Gross Margin % | 78.09% | 77.45% | 79.68% | 82.95% | 84.61% |
| Gross Profit Growth % | - | 42.24% | -3.79% | -1.64% | - |
| Operating Expenses | 336.81M | 383.77M | 325.28M | 300.2M | 260.01M |
| OpEx % of Revenue | - | 67.21% | 83.36% | 77.05% | 66.96% |
| Selling, General & Admin | 263.09M | 301.36M | 254.77M | 243.37M | 209.74M |
| SG&A % of Revenue | - | 52.78% | 65.29% | 62.47% | 54.01% |
| Research & Development | 70.02M | 0 | 63.84M | 52.16M | 46.77M |
| R&D % of Revenue | - | - | 16.36% | 13.39% | 12.04% |
| Other Operating Expenses | 2M | 82.42M | 6.67M | 4.68M | 3.5M |
| Operating Income | 21.18M | 58.47M | -14.35M | 22.98M | 68.55M |
| Operating Margin % | 4.62% | 10.24% | -3.68% | 5.9% | 17.65% |
| Operating Income Growth % | - | 507.39% | -162.46% | -66.48% | - |
| EBITDA | 25.16M | 61.71M | -7.68M | 27.66M | 72.06M |
| EBITDA Margin % | 5.49% | 10.81% | -1.97% | 7.1% | 18.56% |
| EBITDA Growth % | 292.25% | 903.09% | -127.78% | -61.62% | - |
| D&A (Non-Cash Add-back) | 5.07M | 3.23M | 6.67M | 4.68M | 3.5M |
| EBIT | 6.34M | 50.66M | -11.93M | 20.18M | 65.69M |
| Net Interest Income | 0 | 148.79M | -122.78K | 0 | 1.41M |
| Interest Income | 0 | 154.26M | 0 | 0 | 1.41M |
| Interest Expense | 0 | 5.46M | 122.78K | 0 | 0 |
| Other Income/Expense | -15M | -13.28M | 2.3M | -2.8M | -2.87M |
| Pretax Income | 6.18M | 45.2M | -12.05M | 20.18M | 65.69M |
| Pretax Margin % | 1.35% | 7.92% | -3.09% | 5.18% | 16.91% |
| Income Tax | 23.27M | 20.83M | 13.82M | 16.14M | 32.21M |
| Effective Tax Rate % | 376.45% | 46.09% | -114.71% | 79.99% | 49.04% |
| Net Income | -13.88M | 24.77M | -22.69M | 6.07M | 50.08M |
| Net Margin % | -3.03% | 4.34% | -5.82% | 1.56% | 12.9% |
| Net Income Growth % | 53.96% | 209.15% | -473.91% | -87.88% | - |
| Net Income (Continuing) | -17.09M | 24.37M | -25.87M | 4.04M | 33.47M |
| Discontinued Operations | 1000K | 0 | 2.69M | 1.78M | 16.6M |
| Minority Interest | 999.74K | 187.23K | 1.27M | 660.22K | 0 |
| EPS (Diluted) | -0.03 | -1.23 | -1.13 | -0.73 | -0.00 |
| EPS Growth % | 108.87% | -8.85% | -54.79% | - | - |
| EPS (Basic) | - | -1.23 | -1.13 | -0.73 | -0.00 |
| Diluted Shares Outstanding | 431.39M | 397M | 459.36M | 459.36M | 459.36M |
| Basic Shares Outstanding | 431.39M | 397M | 459.36M | 459.36M | 459.36M |
| Dividend Payout Ratio | - | - | - | - | - |
Regulatory PFOF monetization risk
According to the latest quarterly data, Webull achieved a 46.3% year-over-year revenue growth rate in 2025Q2, signaling strong market penetration, yet this top-line expansion appears to be occurring alongside significant volatility in quarterly performance, suggesting that growth durability remains highly sensitive to broader retail trading sentiment.
The acceleration to $131.5 million in revenue for 2025Q2 marks a notable recovery from the contraction observed in early 2024. However, investors should monitor whether this growth is sustainable or merely a byproduct of transient market volatility, as the company has yet to demonstrate a consistent, linear upward trajectory in its top-line results.
As reported in the income statement, Webull's gross margin contracted to 73.5% in 2025Q2, a notable decline from the 80% levels maintained throughout 2024, which may indicate rising costs associated with execution, clearing, or the changing mix of lower-margin trading products within the platform's ecosystem.
The erosion of gross margin suggests that the company's cost of revenue is scaling faster than its transactional income. This warrants further investigation into whether the firm is facing increased competitive pressure on pricing or if structural changes in market data and clearing costs are beginning to weigh on the core brokerage business.
Based on the provided financial figures, Webull's operating margin plummeted to -2.8% in 2025Q2, demonstrating a failure to achieve operating leverage as SG&A expenses surged to $81.3 million, significantly outpacing the growth in gross profit and highlighting a reliance on aggressive spending to maintain its competitive market position.
The inability to convert gross profit into operating income suggests that the company's current business model requires heavy, non-discretionary investment in customer acquisition and administrative infrastructure. This lack of scalability implies that profitability may remain elusive until the firm can significantly reduce its reliance on high-cost marketing and promotional incentives.
Analysis of the income statement reveals that stock-based compensation reached $27.0 million in 2025Q2, a figure that exceeds the company's net loss of $28.3 million, suggesting that reported earnings are heavily impacted by non-cash equity awards that may mask the underlying cash-burning nature of current operations.
The high level of stock-based compensation relative to net income raises concerns regarding the quality of earnings and the potential for shareholder dilution. Investors should be wary of the discrepancy between GAAP results and cash-based performance, as the current compensation structure appears to be a significant drag on the company's path to sustainable profitability.
While Webull has demonstrated rapid top-line growth, the company's heavy reliance on payment for order flow and transaction-based revenue, as inferred from its business model, presents a significant risk of margin compression should regulatory bodies move to restrict or ban these practices in the near future.
Short-sellers would likely focus on the company's inability to generate consistent operating income despite high gross margins, arguing that the current model is fundamentally fragile. The reliance on volatile trading activity rather than recurring fee-based revenue suggests that the company may struggle to maintain its valuation if retail engagement levels experience a prolonged downturn.
Quick answers to the most common questions about buying BULL stock.
For fiscal year 2025, Webull Corporation Class A Ordinary Shares (BULL) reported total revenue of $571.0M. This represents a 47.0% increase compared to $388.3M in 2022.
Webull Corporation Class A Ordinary Shares (BULL) is profitable, generating $24.8M in net income for the fiscal year ending 2025 with a net profit margin of 4.3%.
Webull Corporation Class A Ordinary Shares (BULL) reported an operating income of $58.5M, resulting in an operating profit margin of 10.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Webull Corporation Class A Ordinary Shares (BULL) generated $442.2M in gross profit for the year, representing a gross profit margin of 77.5%. This demonstrates the company's core pricing power and production efficiency.