Webull (CAMT) Q3 2025: 71% Equity Volume Surge Drives Margin Expansion and Global Diversification
Webull’s third quarter delivered record revenue and margin expansion, propelled by a 71% jump in equity trading volume and robust global user growth. The company’s strategic product launches—crypto futures, sports prediction markets, and AI-powered Vega—are deepening engagement and reactivating dormant accounts, while international expansion is shifting the growth mix. With margin discipline and product innovation converging, Webull is positioning itself as a diversified, mobile-first global investment platform with momentum heading into 2026.
Summary
- Product-Led Engagement: Crypto relaunch and prediction markets are reactivating dormant users and driving new account growth.
- Margin Expansion: Revenue growth far outpaced expenses, highlighting strong operating leverage amid global scaling.
- Global Momentum: International business is accelerating, setting up non-U.S. funded accounts to become a primary growth engine.
Performance Analysis
Webull posted record quarterly revenue, operating profit, and user growth, underpinned by a 71% year-over-year surge in equity trading volume and a strong pickup in international funded accounts. The company’s top-line growth outpaced expense increases by a wide margin, resulting in a 28.7-point improvement in adjusted operating margin and a fourth consecutive quarter of profitability. Customer assets hit an all-time high, with net deposits up sharply and a 9% YoY increase in funded accounts, reflecting both organic growth and the impact of the Webull Pay acquisition.
Options trading revenue continued to accelerate, benefiting from improved monetization following last year’s pricing model shift. Interest-related income also grew, supported by higher balances and increased margin lending activity. Expense discipline was evident, with operating expenses rising just 13% despite significant business scaling, as lower marketing spend and smarter customer incentives offset higher transaction and G&A costs.
- Trading Activity Surge: Equity trading volume grew 71% YoY, fueling revenue and market share gains.
- Funded Account Growth: 200,000 net new funded accounts, with international now representing 50% of new additions.
- Operating Leverage: Margin expansion driven by revenue growth outpacing expense increases, with a focus on sustainable profitability.
Momentum continued into October, which was cited as the strongest month ever for customer deposits, trading volumes, and revenues, signaling a robust start to Q4.
Executive Commentary
"This quarter marks significant milestones in product diversification and geographic expansion as we continue to see high growth across our platform on the heels of our public listing. We successfully reintroduced crypto back to the Webull app and expanded our offerings in the space to include crypto futures trading. We also introduced sports prediction markets through our partnership with Kalshi and are on track to achieve a major international milestone as Webull Canada will soon become the first non-U.S. brokerage in our group to reach $1 billion in assets under management."
Anthony Denier, Group President and U.S. CEO
"We continue to take a disciplined approach to balancing execution costs and operating efficiency as we continue to scale the business. And we are pleased with our continued margin expansion and profitability."
H.C. Wang, Group CFO
Strategic Positioning
1. Product Innovation and Diversification
Webull’s rollouts of crypto futures, prediction markets, and the AI-powered Vega assistant are not just driving incremental revenue—they are fundamentally reshaping user engagement and broadening the platform’s appeal. The relaunch of crypto has been a catalyst for new account openings, with over half of new funded accounts now trading crypto. Prediction markets, particularly in sports, have reactivated dormant users and attracted a new customer demographic. Vega, developed in-house, is providing personalized insights and has seen tens of millions of user engagements, supporting retention and deepening user stickiness.
2. Global Expansion and Market Penetration
International growth is becoming a defining feature of Webull’s trajectory. The company now operates 14 broker-dealers globally, with recent launches in the Netherlands and rapid growth in Canada, Australia, and Thailand. International funded accounts have reached 700,000 and, for the first time, are contributing equally to new account growth versus the U.S. Webull is also leveraging B2B partnerships, such as with Merits in South Korea, to access new customer pools without direct local licensing, with more institutional deals expected to follow.
3. Operating Efficiency and Margin Discipline
Margin expansion is being achieved through disciplined cost management and evolving marketing strategies. Marketing spend has shifted toward asset-matching promotions with longer amortization periods, resulting in more predictable expenses and higher ROI. G&A increases are tied to headcount and product development, but are being offset by operating leverage as the business scales. The company has maintained adjusted operating margins around 20% for four quarters, signaling a commitment to sustainable, profitable growth even during rapid expansion.
4. Platform Monetization and Revenue Mix Evolution
Webull’s monetization strategy is diversifying beyond equity commissions to include options, interest income, and new product lines. The options business is benefiting from pricing changes, while interest-related income is up due to higher balances and margin activity. Prediction markets and crypto trading are emerging as new revenue streams, with the company targeting competitive take rates to attract active traders. B2B transaction revenue from institutional partners will be integrated into core trading volumes, adding another layer of resilience to the revenue mix.
Key Considerations
Webull’s quarter reflects a platform in transition—from U.S.-centric, retail-only, and equity-heavy to a diversified, global, multi-asset fintech with strong operating leverage. The following factors will shape near- and medium-term investor outcomes:
Key Considerations:
- AI-Driven Engagement: Vega’s in-house development is delivering high user engagement at minimal incremental cost, supporting retention and differentiation.
- International Scale: Non-U.S. funded accounts are now half of new additions, and international AUM is accelerating, especially in Canada and Asia-Pacific.
- Product Stickiness: Crypto, prediction markets, and new asset classes are deepening wallet share and reactivating dormant users, expanding the addressable market.
- Expense Discipline: Operating leverage is being maintained even as the company invests in R&D and global expansion, with marketing spend optimized for ROI.
- B2B Opportunity: Institutional partnerships are opening new revenue channels, with initial deals already live and a pipeline that could materially boost transaction volumes.
Risks
Webull’s rapid global expansion exposes it to regulatory complexity, operational risk, and heightened competition, especially in crypto and options trading. Sustaining high margin growth may become challenging as the company invests in new geographies and product lines with uncertain payback periods. Volatile trading activity, reliance on favorable market conditions, and evolving regulatory regimes in digital assets and prediction markets could impact revenue and user growth.
Forward Outlook
For Q4, Webull management signaled:
- Momentum in October with record customer deposits, trading volumes, and revenues.
- Continued international expansion and product launches, including further crypto offerings and geographic rollouts.
For full-year 2025, guidance was not formally updated but management emphasized:
- Focus on sustainable margin expansion and disciplined investment in growth.
- Expectation that international and B2B growth will accelerate into 2026.
Management highlighted that product innovation and global diversification will remain at the forefront as they seek to consolidate wallet share and enter new markets.
Takeaways
Webull’s Q3 results underscore a successful pivot to global, multi-asset platform growth, with strong margin discipline and product innovation driving engagement and profitability.
- Product Expansion Pays Off: New offerings in crypto, prediction markets, and AI are reactivating users and attracting new demographics, fueling growth beyond traditional equity trading.
- Margin and Scale Converge: Revenue growth is far outpacing expenses, supporting a sustainable margin profile even as the company aggressively scales internationally.
- International and B2B Are the Next Frontiers: Investors should watch for further acceleration in non-U.S. funded accounts and institutional partnerships as key drivers of the next growth phase.
Conclusion
Webull’s third quarter demonstrates a platform hitting its stride, blending robust revenue growth, margin expansion, and global reach. The convergence of product innovation, disciplined execution, and international momentum positions Webull to capitalize on the mobile-first, multi-asset investing trend as it enters 2026.
Industry Read-Through
Webull’s results highlight secular shifts within retail brokerage: mobile-first platforms, product diversification, and AI-driven personalization are becoming table stakes for customer acquisition and retention. The success of sports prediction markets and crypto relaunches signals that engagement tools and alternative asset classes are critical levers for activating and monetizing next-gen investors. Traditional brokerages and fintechs must adapt to global, multi-asset competition and increasingly sophisticated user demands, or risk ceding share to agile, tech-driven platforms like Webull.