Shares of Webull surged 10.8% to $9.97 on Thursday as investors continued to pile in following what management called the company's best quarter as a public company. The rally outpaced a 1.52% gain in financials and even Bitcoin's 3.17% rise, signaling that something company-specific — not just market euphoria — is driving the move.
A Regulatory Gift Turbocharged Trading Volumes
The June elimination of the Pattern Day Trader rule — which previously barred accounts under $25,000 from frequent day trades — helped drive a 62% increase in daily average revenue trades, a 73% jump in equity trading volume, and 68% more options contracts. That single policy change handed Webull's core user base — small, active retail traders — far more freedom to trade. Trading-related revenues climbed 66% year over year to $147.7 million.
Webull said elevated activity continued into July and August , suggesting Q3 could carry similar momentum.
Profits Grew Three Times Faster Than Revenue
Adjusted operating profit surged 169% to $62.6 million, representing a 31.3% operating margin — meaning Webull kept roughly a third of every dollar it brought in. Adjusted net income hit $43.2 million, a 21.7% net profit margin , flipping from a loss a year ago. The takeaway: costs are growing much slower than revenue, and each new trade is increasingly profitable.
A $116.5 Million Shelf Filing Adds a Cautionary Note
On September 1, Webull filed a shelf registration covering up to $116.5 million in Class A shares for existing holders to sell. This isn't the company raising fresh capital — it lets early investors and insiders cash out. Those selling shareholders may still see a positive return on shares they bought at much lower prices, while public buyers may not enjoy the same economics. That overhang could cap gains.
Wall Street Is Split on What Comes Next
Scotiabank initiated coverage with a neutral "sector perform" rating and a $9.00 price target — already below today's price. Rosenblatt is far more bullish, reiterating a buy with a $15.00 target.
The consensus target recently moved to $12.00 , implying about 20% upside from here but masking wide disagreement. Key risks include the inherent volatility of trading activity, still-tiny crypto revenue of roughly $2.25 million, and the early stage of new products like AI tools and prediction markets. Webull's quarter was exceptional — the question is whether a rule-driven boom becomes a durable business.