Webull (BULL) Q4 2025: Marketing Spend Drives $3.9B Net Deposits, AI and Global Expansion Reshape Growth Profile
Webull’s fourth quarter capped a transformative first year as a public company, with aggressive marketing spend fueling record net deposits and a surge in active trader engagement. AI integration and international expansion are rapidly diversifying both product mix and revenue streams, while management signals a return to disciplined expense control in 2026. Investors should watch for B2B platform traction and the monetization path for new asset classes as the next phase of growth unfolds.
Summary
- AI-Powered Platform Engagement: Vega AI assistant now reaches 1.2 million weekly users, deepening differentiation.
- Marketing Investment Converts to Growth: Record net deposits and funded accounts reflect effective, performance-based spend.
- B2B and International Push: Early B2B momentum and global asset growth set up multi-channel expansion.
Performance Analysis
Webull delivered a breakout Q4, with total revenue up sharply year-over-year, underpinned by a 225% jump in net new deposits to $3.9 billion and record trading activity across equities, options, and new asset classes. The quarter saw 100,000 new funded accounts, bringing the total to 5.03 million—an 8% increase—while customer assets hit an all-time high of $24.6 billion. This growth is broad-based, with equity trading volume up 87% year-over-year and options contract volume up 38%.
Adjusted operating expenses rose 62%, primarily due to targeted marketing and branding investments aimed at acquiring high-value, active traders. Despite elevated spend, Webull maintained a positive adjusted operating profit margin, reflecting the platform’s underlying operating leverage. Notably, excluding marketing, the operating margin reached 45%, underscoring cost discipline outside of growth initiatives. Trading-related revenues and interest income both posted double-digit growth, with margin lending balances up 43% and diversified product adoption accelerating.
- Deposit Surge: Net new deposits soared, reflecting both effective marketing and strong product-market fit for active traders.
- International Revenue Mix: Non-U.S. customer assets and trading flow more than doubled, signaling success in global expansion.
- Product Diversification: Prediction markets and crypto contributed meaningfully for the first time, laying groundwork for future revenue streams.
Webull’s results demonstrate the power of a focused, technology-led business model and the willingness to invest opportunistically when market conditions align. The challenge now is to sustain profitable growth as marketing spend normalizes and new business lines scale.
Executive Commentary
"AI is dramatically changing the investing industry, and we at Webull are on the forefront of many of those changes. We're proud to be shaping the future of active, self-directed trading through the integration of AI via Vega, our AI assistant for trading and platform guidance, delivering real-time insights and AI-generated trading ideas."
Anthony Denier, Group President and U.S. CEO
"The increase in marketing spend is intentional and strategic. We're capitalizing on a strong equity market backdrop, multiple industry catalysts, and the branding tailwind from our recent listing to accelerate customer acquisition, AUM growth, and international expansion. Over time, we remain confident in our ability to scale revenues ahead of expenses, supported by the operating leverage in our model."
H.C. Wang, Group CFO
Strategic Positioning
1. AI-Driven Differentiation
Vega, Webull’s proprietary AI assistant, is quickly becoming a core platform asset, used weekly by 1.2 million users and handling over 10 million queries since launch. The integration of AI into user experience, customer service, and internal operations positions Webull as a technology leader among trading platforms. The company is committed to further embedding AI across the business to drive engagement, retention, and operational efficiency.
2. Premium and Subscription Monetization
Webull Premium, the subscription-based service for active traders, surpassed 100,000 subscribers, contributing 30% of AUM and 60% of margin debit balances. Management aims to double the subscriber base in 2026, leveraging enhanced features and the stickiness of premium offerings. Subscription revenue and higher-margin customer segments are becoming increasingly central to the business model.
3. Global Expansion and Product Breadth
International growth is accelerating, with 760,000 funded accounts outside the U.S., APAC assets above $3 billion, and new market launches in the EU and Canada. Webull’s strategy of exporting the U.S. retail trading experience globally is gaining traction, supported by local partnerships and regulatory licenses. Product expansion into crypto, futures, and prediction markets further diversifies the revenue base and attracts new customer cohorts.
4. B2B Platform and Institutional Channel
The B2B business, including the Merit Financial Group partnership in Korea, is in early innings but is expected to scale meaningfully over the next several years. Management sees B2B as a potential peer to the retail business, with a pipeline of institutional clients attracted by Webull’s technology, pricing, and product breadth. This channel offers a hedge against retail cyclicality and incremental monetization opportunities.
5. Disciplined Capital Allocation and Margin Focus
Despite a step-up in Q4 marketing, management is signaling a return to tighter expense control, with performance-based marketing and a focus on scaling operating leverage. The company paid down $35 million of promissory note debt in the quarter and maintains flexibility to balance growth investment with profitability and balance sheet health.
Key Considerations
Webull’s Q4 reflects a deliberate pivot toward scale, technology leadership, and global diversification, but the sustainability of these gains will depend on execution in several areas.
Key Considerations:
- Marketing ROI and Expense Normalization: Q4’s outsized marketing spend delivered record deposits, but management expects a lighter spend in Q1 and a flexible, performance-based approach going forward.
- Monetization of New Asset Classes: Crypto and prediction markets are gaining traction but remain a small share of revenue; success hinges on product-market fit and regulatory clarity.
- B2B Channel Ramp: Early-stage partnerships, especially in Korea, are expected to scale, with management forecasting a 10x increase by year-end and B2B potentially rivaling retail over time.
- International and Non-U.S. Growth: Doubling of international trading flow and rapid asset accumulation in APAC and Canada highlight the success of global expansion, but require continued investment and localization.
Risks
Webull faces several risks as it scales: Market volatility could affect trading volumes and customer behavior, while regulatory changes—especially around digital assets and prediction markets—could impact growth plans. Elevated marketing spend may not translate to sustained retention if competitive intensity rises. The B2B channel is early-stage, and execution risk remains high. Finally, the company’s ability to maintain operating leverage as it diversifies product and geographic mix will be tested in 2026.
Forward Outlook
For Q1 2026, management indicated:
- Marketing spend will be materially lower than Q4, returning to a more normalized run-rate.
- Trading volumes and user engagement remain strong, with January described as the company’s second-best month ever.
For full-year 2026, management maintained a focus on:
- Doubling premium subscribers and further embedding AI across the platform.
- Continuing international expansion and B2B channel development.
Management emphasized disciplined investment in growth, a flexible approach to marketing, and ongoing margin improvement as scale increases.
- AI and premium product enhancements are expected to drive engagement and retention.
- B2B partnerships and local product launches will be a key focus area.
Takeaways
Webull’s first year as a public company closed with record growth, but the next phase will test the scalability of its AI, global, and B2B ambitions.
- Marketing Conversion: Performance-based marketing drove record net deposits and funded account growth, but future efficiency and retention will be critical as spend normalizes.
- Strategic Diversification: The company’s pivot to AI, subscriptions, international markets, and B2B channels creates new revenue streams and hedges against retail cyclicality.
- Execution Watch: Investors should track B2B ramp, monetization of new asset classes, and the ability to sustain margin improvement as the business model evolves.
Conclusion
Webull’s Q4 results reflect a company in transition—from high-growth retail disruptor to a diversified, technology-led global platform. The next year will be pivotal as management balances investment with profitability, scales new channels, and seeks to realize the full potential of its AI and international strategy.
Industry Read-Through
Webull’s results offer several industry signals: Active trader platforms with differentiated technology and AI integration are capturing share, especially as volatility returns to markets. The success of performance-based marketing and global expansion validates the scalability of digital-first models, while the rapid adoption of prediction markets and crypto points to growing demand for alternative asset classes. Competitors will need to invest in platform experience, product breadth, and international reach to keep pace. The B2B channel, if scaled, could reshape the economics of retail brokerage, creating new competition for both legacy and fintech platforms.