Webull Corp Annual Report - How They Did This Year

I’ve put together this plain-English guide to help you understand Webull’s latest annual report. Instead of digging through hundreds of pages of jargon, I’ve broken down the essentials so you can decide if this company fits your investment goals.

1. What does this company do?

Webull is a digital brokerage platform. Think of it as a tech-focused competitor to apps like Robinhood or E*TRADE. Their app lets you trade stocks, options, and crypto. They make money by charging interest on borrowed funds, selling premium data subscriptions, and earning interest on the cash you keep in your account.

Big Update: Webull went public on the Nasdaq (ticker: BULL) on April 10, 2025, after merging with a SPAC. This move raised about $350 million to fund operations. While this transition brings more transparency, it also invites more scrutiny from investors.

2. Financial performance: Are they making money?

Webull is still in a "growth at all costs" phase. They bring in significant revenue, but they are not yet profitable.

• The Losses: They lost $487.5 million in 2025, an improvement from the $517.8 million loss in 2024. High marketing costs—$210 million this year—and heavy spending on their trading technology drive these losses.
• Revenue Source: Total revenue hit $1.24 billion in 2025. Over half of this (53.3%) comes from "Payment for Order Flow." This is when they get paid to send your trades to market makers like Citadel Securities. The rest comes from interest (28%) and subscription fees (18.7%).

3. Major wins and challenges

Their biggest win was going public and growing to over 15 million global accounts. However, they are a young company, having launched in 2018. They are still learning how to turn this into a consistently profitable business. Their main challenge is that they currently spend more to sign up a new user than that user earns them in their first two years.

4. Key risks: What could go wrong?

As a financial company, Webull faces several risks that could impact your wallet:

• The PFOF Risk: Since over half their revenue comes from routing your trades, new SEC rules limiting this practice could cut their revenue by 20–30% overnight.
• Market Dependence: If the stock market slows down, Webull’s revenue drops. They also rely on a few specific partners to process trades; if those partners leave or pay less, Webull’s business could stall.
• Crypto Volatility: Crypto accounted for 12% of trading volume in 2025. If prices crash or regulations tighten, it could hurt their trading volume and reputation.
• The "Controlled Company" Factor: Insiders hold shares with 20 votes each, while your public shares get only one vote. Founders control over 85% of the voting power, meaning your vote won't change company policy.
• Tech Risks: They are betting on AI for customer support and trading. AI can have "bugs" or errors, which could lead to system crashes or bad trades, triggering massive regulatory fines.

5. Future outlook

Now that they are public, the pressure is on. They must prove they can grow without burning through cash. They aim to be profitable by 2027 by expanding into wealth management and retirement accounts. They are also moving into emerging markets, which adds currency risks and complex regulatory hurdles.

Webull is a high-risk, high-growth investment. They are losing less money than last year, but they haven't proven they can be a sustainable business yet. Watch their "Net Loss" figure over the next two quarters to see if their cost-cutting is working.