New York, May 21, 2026, 17:05 EDT
Webull Corp shares dropped in after-hours trading Thursday. The online brokerage posted higher first-quarter revenue but moved to a net loss, hit by bigger marketing, transaction, and stock-compensation expenses.
Webull’s latest report is in focus as investors look for signals on retail trading demand ahead of new U.S. day-trading rules set for June. Shares of Webull on Nasdaq last traded at $6.61 as of 4:47 p.m. EDT, down about 5.4% from the previous close after moving between $6.50 and $7.20 on volume of 32.7 million shares.
Stocks advanced on a strong day for the market. The Dow Jones Industrial Average ended at a record, with the S&P 500 up 0.17%. The Nasdaq Composite gained 0.09%, according to Reuters.
Webull reported total revenue jumped 36% to $159.9 million for the quarter ended March 31. On a GAAP basis, Webull logged a net loss of $21.7 million, after showing net income of $13.1 million a year ago.
Costs weighed this time. Total operating expenses jumped 68% to $162.3 million, with the company spending more on marketing, branding, brokerage, transaction costs, product expansion, and share-based compensation, according to the filing. Adjusted operating profit, which takes out some items like share-based compensation, dropped to $14.8 million from $28.7 million.
Trading metrics showed gains. Customer assets jumped 90% from a year ago to $24.6 billion. The company’s investor presentation also showed funded accounts climbed to 5.11 million and registered users hit 27.6 million. Equity notional volume—the total dollar amount in stock trades—was up 104% to $261 billion. Options contracts volume was up 31% to 159 million.
Daily average revenue trades, or DARTs, climbed to roughly 1.3 million. Webull tracks this number to gauge activity that brings in trading revenue. More trades can help, but trade size and kind still make a difference.
Webull group president and U.S. CEO Anthony Denier called it a “strong start” to year two as a public company, flagging the firm’s AI tools and beta testing for Vega Analyst. CFO H.C. Wang said Webull had “strong revenue growth” and marked its sixth quarter in a row with adjusted profit. PR Newswire
Robinhood is the main competitive read-through here. Both firms cater to active retail traders, and both stocks moved up in April after the SEC signed off on FINRA’s move to scrap the old $25,000 pattern day trader minimum. Mike Grondahl at Northland told Reuters then that more day trading brings more orders per user, which goes straight to revenue for brokerages.
FINRA is set to start intraday margin standards on June 4, dropping the pattern day trader number and the $25,000 minimum. Member firms have until Oct. 20, 2027, to fully switch over. Webull said it put the needed systems in place and expects the new standards will lead to more active trading.
But the setup looks messy. Webull’s costs are climbing faster than revenue, and it’s still exposed to swings in trading, rate changes, volatility and payment for order flow—the broker fees for sending customer trades. The latest filing also points to risks covering regulation, cybersecurity, China, crypto, and global growth. There’s also a risk the $100 million buyback plan could be paused or altered.
Investors are seeing a mixed story for now. The broker keeps picking up users, assets and trades, but it’s paying up to drive that growth. The next big check comes in June, when a new rule kicks in, and the question is if that means more volume or just thinner margins.
