PDT Elimination Ignites Webull's Record Quarter

A Structural Tailwind Hits

The elimination of the Pattern Day Trader (PDT) rule on June 4, 2026, was the defining event of Webull's second quarter. CEO Anthony Denier, who had spent the prior year preparing for the change, saw it deliver. Revenue reached a record $198.8 million, up 51% year-over-year, while adjusted operating profit hit $62.6 million — a margin of 31.5%.

“I truly believe that removal of PDT is the standard going forward. It will not revert, or volumes will not revert to pre‑PDT levels,” Denier said on the call. “I truly believe that removal of PDT is the standard going forward. It will not revert, or volumes will not revert to pre‑PDT levels.” — Anthony Michael Denier, Chief Executive Officer · 2026-08-19 His confidence is backed by a fundamental shift in client behavior: instead of spreading trades across multiple accounts to dodge the old three‑day limit, active traders are now consolidating.

We actually see the behavior of a lot of those active traders change... when that restriction was removed.

Agentic AI: The Next Frontier

Beyond the rule change, Webull is pushing into the next frontier of trading technology. Its MCP server now lets users interact with the platform through large language models, enabling natural‑language research, portfolio construction, and trade ideas. “We are very, very early in Phase 1, where most of the interactions with our MCP server is based around portfolio building, research and trade analysis,” said Denier. “We are very, very early in Phase 1, where most of the interactions with our MCP server is based around portfolio building, research and trade analysis.” — Anthony Michael Denier, Chief Executive Officer · 2026-08-19 This is a deliberate step toward agentic trading, which he believes will be the new battleground as retail investors delegate more execution to autonomous agents. The company's Vega AI assistant also grew, adding ~160,000 active users in the quarter, with engagement up 23% QoQ.

Discipline and the Dormant Account Cleanup

The operating leverage is unmistakable. Adjusted operating expenses rose just 26% YoY, well below the 51% revenue growth, thanks to a disciplined approach to marketing spend. After last year's aggressive asset‑match promotions, marketing fell to $35 million in Q2, down 6% sequentially, and management expects it to hold around that level for the remainder of 2026. “We can expect marketing spend to be similar... to the first half,” said CFO H.C. Wang. “We can expect marketing spend to be similar... to the first half.” — H. Wang, Chief Financial Officer · 2026-08-19

Beneath the headline numbers, the company is also cleaning house. Funded accounts grew only 20,000 net, but gross adds were 132,000 — the difference being the removal of dormant, zero‑revenue accounts. “This actually cleans up our account base on its own. And it's a very healthy thing for our business,” explained Denier. “This actually cleans up our account base on its own. And it's a very healthy thing for our business.” — Anthony Michael Denier, Chief Executive Officer · 2026-08-19 The dormant account purge, combined with a focus on higher‑quality customers, is lifting average account size to over $5,500.

Global Expansion Continues

Webull's international engine remains a key growth driver. The company now operates in 18 markets and added Spain, Argentina, and Colombia in Q2. International funded accounts reached 810,000, and the pending acquisition of Pi Securities in Thailand adds an established local broker with a strong active‑trader base. The global footprint also supports the institutional business, which now holds $1.4 billion in AUM, with a large majority of clients outside the U.S.

The prior quarter's call had set the stage: “my expectations on the low end is an increase of 20% on the low end in terms of transaction increase we're going to see with the removal of PDT,” Denier had said. “my expectations on the low end is an increase of 20% on the low end in terms of transaction increase we're going to see with the removal of PDT.” — Anthony Michael Denier, CEO · 2026-05-21 That forecast is already being exceeded. And the company's longer‑term vision for prediction markets, articulated earlier this year, remains a meaningful though still small contributor. “prediction markets are exciting for our business. I think it opens up our TAM to a completely new demographic of customer.” — Anthony Michael Denier, Chief Executive Officer · 2026-03-05

The quarter wasn't without blemishes — crypto revenue is still just $2.25 million, and prediction markets are growing from a low base — but the core engine is firing on all cylinders. Webull has turned a regulatory tailwind into a sustainable competitive advantage, and the margin expansion proves the model can scale.