Webull (NASDAQ:BULL | BULL Price Prediction) stock is up 13% to $9.76 in early Thursday trading after the online broker posted its strongest quarter as a public company. Meanwhile, Robinhood Markets (NASDAQ:HOOD) stock practically unchanged at $95.34. For the broader sector context, the iShares U.S. Broker-Dealers & Securities Exchanges ETF (NYSEARCA:IAI) shares are flat/unchanged at around $190.
That flat sector print on the IAI ETF matters for framing. IAI is a narrow, unleveraged industry fund concentrated in brokerages and exchanges, so an unchanged tape alongside a 13% move in Webull stock frames today as a single-company earnings reaction rather than a group rally.
The tension worth surfacing sits underneath the Webull print. Webull’s revenue and customer assets surged, yet registered-user growth was the slowest in at least three years, meaning the quarter was carried by existing customers trading far more rather than by new customers arriving on the platform. That distinction matters for how durable today’s rally proves to be.
Record Quarter Fueled by Pattern Day Trader Rule Change
[stock_chart symbol=”BULL”]
Webull reported Q2 2026 revenue of $198.8 million, up 51% year over year and above the $165.71 million consensus. Adjusted operating profit at Webull set a company record at $62.6 million, up 169%. Also, Webull’s adjusted EPS of $0.05 topped the $0.04 estimate.
Customer assets at Webull climbed to $28.5 billion, up 79%, and daily average revenue trades hit a record 1.64 million. Equity notional volume reached $279 billion, taking the firm to a top-five position among all retail brokers in options for the first time in its history. Moreiver, options contract volume totaled 213 million contracts.
The catalyst behind the volume was the June 4, 2026 elimination of the Pattern Day Trader rule, which removed the $25,000 minimum account balance requirement for frequent margin day trading. Webull’s average account size sits just below $5,000, so a large share of the customer base had been directly constrained by the old rule.
Webull CEO Anthony Denier called the change the “defining event for the quarter” and told listeners on the call that “removal of PDT is the standard going forward. It will not revert or volumes will not revert to pre PDT levels.” Northland Securities analyst Michael Grondahl maintained a Buy rating on Webull stock and raised his price target to $15 from $14.
Where Webull and Robinhood Markets Diverge
Through Wednesday’s close, Webull stock was up 11% year to date, while Robinhood stock was down 15%. The IAI ETF was up 7% over the same stretch, in line with a steady grind higher in brokerages and exchanges.
The performance gap widens further today. Robinhood stock is barely moving because the company has no earnings catalyst of its own on the tape, and both platforms cater to active traders while both stand to benefit from the PDT change over time. Only Webull is delivering a printed quarter into this session, and that is what the tape is rewarding.
A nearly unchanged $190 print on the IAI ETF reinforces the point about scope. A narrow, unleveraged sector fund concentrated in brokerages and exchanges would move if the tape were repricing the broader group, and it isn’t. The move is entirely idiosyncratic to Webull’s Q2 results.
What to Watch Now
Registered users at Webull grew to 28.2 million, up 13%, the slowest pace in at least three years. Webull’s funded accounts came in at 5.13 million, up 8% year over year, meaning the quarter rested on existing customers trading far more rather than a wave of new brokerage relationships arriving on the platform.
Volume per existing customer is the most cyclical input a brokerage has, and position sizing in Webull stock should reflect that dependence. If PDT-driven activity normalizes as markets quiet down, the same operating leverage that produced Webull’s record adjusted operating profit will work in reverse. Moderate sizing in Webull stock preserves room to add on any pullback if Q3 volumes confirm the trend Denier described.
On the call, Denier stated August was trending along June levels and was “looking even stronger than July”, which sets a high bar for the Q3 comparison at Webull. Traders can watch for whether the 13% gain in Webull stock holds through the afternoon and that additional sell-side notes follow Northland’s target increase.
Shareholders may want to keep an eye on whether that sustained August activity translates into a Q3 revenue print that clears the bar Q2 just set. The next scheduled catalyst at Webull will be that Q3 report.
Contact [email protected] for any questions or corrections.
Top Gaining Stocks
Top Losing Stocks