Profitable growth, still tied to trading heat
- Webull grew 2025 revenue to $571 million and turned net income positive.
- The core engine is still active trading, especially options and equity order flow.
- The PDT rule removal in June 2026 should help smaller active accounts trade more freely.
- Self-clearing approval could lower costs and make the B2B business more competitive.
- The big watch item is whether crypto, prediction markets, and AI tools become real revenue lines.
Active traders are the prize
Webull is built for people who trade from a phone and want more tools than a basic investing app gives them. The company has gained share with younger, self-directed investors, then pushed into more countries and into B2B services for foreign brokerages that want U.S. market access.
The main bear case used to be simple: the company could grow, but not make money. That case looks weaker now. Webull reported $571 million of revenue in 2025, up from $390.2 million in 2024, and net income of $24.4 million in 2025 after a net loss in 2024. Management also said Q4 2025 was its fifth straight quarter of operating profitability.
The near-term setup is helped by the SEC's removal of the Pattern Day Trader rule, called PDT, effective June 4, 2026. That rule had limited frequent day trading in smaller accounts. Webull's active traders often have about $5,000 accounts, so removing the rule could help customers trade more and move more of their account activity to Webull.
This is not a clean win yet. The business still depends heavily on trading activity and payment for order flow, which means Webull gets paid for routing U.S. orders to market makers. If regulators change that model, or if retail trading cools, the growth story can slow fast.
Paid when customers trade
Webull makes money in a few ways. In the U.S., its largest revenue source is equity and option order flow rebates. In plain English, Webull routes customer orders to market makers and receives payment for that order flow. Outside the U.S., it can charge customers more directly through commissions and platform fees.
The second big piece is interest related income. Webull earns from customer cash deposits, margin loans, and stock lending. In 2025, interest related income was $154.3 million, or 27.0% of total revenue. That makes interest rates and customer cash balances important to results.
Smaller but important levers are growing. Webull Premium adds subscription revenue. Crypto and prediction markets are still small, each around 2% of revenue in the internal view, but they give Webull more shots on goal. The B2B side is also early, with institutional flow at 9.5% of equity notional volume in Q1 2026.
Self-clearing is the next operating test. Webull received approval for a U.S. self-clearing license in Q1 2026. If it brings clearing and custody work in-house as expected, it can lower transaction costs and sharpen pricing for institutional partners. If the rollout slips, that cost advantage may arrive later than investors hope.
Tools for traders, plus new bets
Retail brokerage app
This is the core product. Customers trade equities, ETFs, options, bonds, and other assets through a mobile-first platform with advanced data and longer trading sessions.
Options trading
Options are a major revenue driver. In 2025, trading activity revenue from options was $237.5 million, far larger than equities at $94.2 million.
Webull Premium
Premium is the paid subscription layer for active traders and longer-term investors. Management said it had 75,000 subscribers after launch in 2025, then 90,000 by Q3 2025.
Vega and AI tools
Vega is Webull's AI assistant for research and trading questions. Management said Vega was helping 1.2 million global users each week by Q4 2025, and Q1 2026 added more AI research and agent tools.
B2B market access
Webull sells U.S. market access and routing services to foreign brokerages and institutions. Management said institutional flow reached 9.5% of Q1 2026 equity notional volume.
Crypto and Webull Pay
Crypto returned to the U.S. app through Webull Pay, with launches also in Brazil and Australia. The upside is real, but coin transfer and staking rollouts were delayed.
Prediction markets
Webull offers sports prediction markets through Kalshi. Management frames this more as an engagement feature today than as a core revenue pillar.
Revenue is still concentrated
The mix below uses Webull's 2025 Form 20-F revenue components for the year ended December 31, 2025. Webull does not present these as separate operating segments, so the split is a revenue-line view.
What can break
PFOF rule change
High impact · Medium oddsPayment for order flow is central to Webull's U.S. trading revenue. Equity and option order flow rebates were 53.3% of total revenue in 2025. A rule change that caps, bans, or changes this model could hit revenue and pricing.
Retail trading slowdown
High impact · Medium oddsWebull does best when customers trade often. Its results are tied to DARTs, equity notional volume, and options contracts. If markets get quiet or customers trade less, revenue can fall faster than accounts fall.
Self-clearing execution risk
Medium impact · Medium oddsSelf-clearing can lower costs and help the B2B business, but it also adds operational and compliance work. A bad rollout could cause service issues or higher expenses. A delay would push out a key margin catalyst.
AI tool mistakes
Medium impact · Medium oddsWebull is leaning into AI research and agentic tools. If an AI tool gives bad information, acts outside a customer's intent, or creates trade errors, Webull could face customer harm and regulator attention. The risk rises as third-party AI tools connect to the platform.
Global expansion complexity
Medium impact · Medium oddsInternational growth is a key part of the story, but each country has its own rules, licenses, taxes, and customer habits. Webull has permission to operate in more European Economic Area markets, but getting users and revenue is harder than getting approval. Weak local adoption could make expansion spend less efficient.
Ordinary shareholder loss optics
Medium impact · Low oddsWebull reported positive net income in 2025, but also reported a large net loss attributable to ordinary shareholders because of preferred share accounting and related items. That does not erase the operating improvement, but it can confuse investors and weigh on trust. The open question is how clean future shareholder-level earnings look after the listing-related effects fade.
In one breath
How does Webull make money if trading looks free?
In the U.S., Webull earns payment for order flow on many equity and options trades. It also earns interest income from customer cash, margin loans, stock lending, subscriptions, and fees in non-U.S. markets.
Why does the PDT rule matter for Webull?
The Pattern Day Trader rule limited frequent day trading for smaller accounts. Management says its removal is a tailwind because many Webull active traders have about $5,000 accounts and may trade more freely after June 4, 2026.
Is Webull profitable?
Webull reported 2025 net income of $24.4 million on $571 million of revenue. The company also said Q4 2025 marked five straight quarters of operating profitability, though ordinary shareholder results were hurt by preferred share accounting.
What is the biggest risk for BULL stock?
The biggest risk is that the main revenue engine depends on active trading and payment for order flow. If trading activity slows or regulators change how order routing is paid, Webull's revenue base could weaken.