Webull Q3 2025: Strong Growth and Profitability, Structural Risks Intact

What happened

Webull reported Q3 2025 revenue of $156.9 million, up 55% year over year, driven by elevated user engagement and high trading volumes. Customer assets grew 84% year over year, benefiting from broad market recovery and continued strong net deposits onto the platform. Management highlighted strong profitability in the quarter even as the company invested in geographic expansion, AI capabilities and new or enhanced product offerings. This performance builds on Webull's mobile-first positioning and expanding international footprint outlined in prior filings, suggesting the platform is leveraging market volatility and rate tailwinds effectively. At the same time, the results do not resolve structural concerns from the DeepValue report around earnings volatility, leverage, and regulatory overhang on order-flow economics.

Implication

The combination of 55% revenue growth and strong profitability indicates operating leverage is emerging as trading activity and customer assets scale, which is supportive for medium-term earnings power. However, because Webull's revenues remain heavily tied to trading volumes and interest-related income, investors should treat this as a cyclical upswing rather than a new baseline until several quarters of consistent performance are demonstrated. Incremental spending on international expansion and AI is strategically sensible given the company's mobile-first, data-heavy model, but it also raises execution risk and could pressure margins if trading activity normalizes. With valuation already reflecting some of the growth story and regulatory changes around execution-quality reporting and order-flow economics still pending, risk-reward screens as balanced rather than compelling. Position sizing should therefore assume heightened earnings and regulatory volatility, with more aggressive accumulation best reserved for signs of sustained positive free cash flow and evidence that regulatory shifts are not materially impairing order-flow economics.

Thesis delta

The Q3 print nudges the thesis modestly more constructive by demonstrating that Webull can deliver strong top-line growth and profitability while funding its expansion agenda. Nonetheless, the core HOLD stance remains intact because the quarter does not yet address concerns about earnings volatility, leverage and regulatory risk, nor does it prove that current trading and rate conditions are sustainable. We move to a HOLD with a positive bias, looking for multiple quarters of consistent profitability and clearer visibility on U.S. market-structure reforms before revisiting a potential upgrade.