Webull Q1 revenue jumps 36% but company posts $21.7M loss

Webull Corporation (NASDAQ: BULL) announced first-quarter revenue of $159.9 million, a 36 percent increase year-over-year, but posted a significant net loss of $21.7 million as expenses climbed.

"I'm proud to report a strong start to our second year as a public company and meaningful progress in enhancing, expanding and extending our leading-platform for self-directed active traders," said Anthony Denier, Group President and U.S. CEO of Webull. "We continue to innovate in AI, including beta-testing for our Vega Analyst, which will bring comprehensive research reports to our users, as well as launching agentic trading solutions on Webull."

The digital investment platform's results presented a mixed picture for investors. While the company missed analyst estimates for profitability, it showed robust growth in its user base and trading activity. The reported net loss of $0.04 per share compares to a net income of $13.1 million, or a loss of $0.06 per share after preferred share accretion, in the same period last year.

Metric	Q1 2026 Actual	Q1 2025 Actual	Year-over-Year
Total Revenues	$159.9 million	$117.4 million	+36%
Net (Loss) Income	($21.7 million)	$13.1 million	-265%
Net Loss Per Share	($0.04)	($0.06)	N/A
Adjusted Net Income	$9.2 million	$21.3 million	-57%

Growth vs. Costs

Webull's revenue growth was powered by a 104% year-over-year increase in equity notional volume to $261 billion and a 31% rise in options contracts volume to 159 million. This activity came from a growing user base, with funded accounts climbing 8% to 5.1 million and total customer assets surging 90% to $24 billion.

However, this growth came at a cost. Total operating expenses increased 68% year-over-year to $162.3 million. The company cited higher marketing and branding expenses, increased brokerage and transaction costs, and a rise in share-based compensation as the primary drivers for the jump in spending.

The company highlighted several strategic initiatives, including receiving permission to operate across the European Economic Area and launching its app in Germany. Webull is also investing heavily in technology, developing AI-driven research tools and preparing its infrastructure for a FINRA rule change related to pattern day trading.

The increase in spending on global expansion and new products weighed on profitability, reversing six consecutive quarters of positive adjusted operating profit. Investors will be watching to see if these investments can translate into future earnings growth to justify the current costs. The company's next earnings report will provide an update on this progress.

This article is for informational purposes only and does not constitute investment advice.