Prepared remarks
Good evening, welcome to Webull Corporation Class A Ordinary Shares' Third Quarter 2025 Conference Call. All participants will be in a listen-only mode. Please note this event is being recorded. I would now like to turn the conference over to Carlos Questell, Webull Corporation Class A Ordinary Shares' Head of Investor Relations. Please go ahead.
Good morning, good afternoon, and good evening everyone. Welcome to Webull Corporation Class A Ordinary Shares' third quarter 2025 conference call. Earlier today, we issued a press release detailing our third quarter financial results. A copy of the release can be found on our IR website at webullcorp.com under the Investor Relations tab. Please note that this call is being recorded and will be available for replay via our IR website. During the call, we will be making forward-looking statements about the company's performance and business outlook. These statements are based on how we see things today and contain elements of uncertainty. For additional information concerning the factors that can cause actual results to differ materially, please refer to the cautionary statement and risk factors contained in our filings with the Securities and Exchange Commission and press release, both of which can be accessed via our website. The presentation will include a discussion on adjusted operating expenses, adjusted operating profit, and adjusted net income, all non-GAAP financial measures. Reconciliation of these non-GAAP financial measures to their most directly comparative GAAP measures are included in the press release that we issued today. It's important to note that although we believe that these non-GAAP measures provide useful information about our operating results, they should not be considered in isolation or construed as an alternative to their directly comparative GAAP measures. Furthermore, other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure. With me today is our Group President and U.S. CEO, Anthony Michael Denier, and our Group CFO, H. C. Wang. We will begin with prepared remarks and then take questions at the end. With that, I would like to turn it over to Anthony.
Thank you, Carlos, and hello, everyone. Thanks for joining us today. Webull Corporation Class A Ordinary Shares' third quarter results demonstrate continued momentum and growth in what remains a highly favorable market environment for our business. Our Q3 results reflect this environment, but also our global team's continued ability to achieve our goals, driving strong results across almost every metric. Strong corporate earnings, interest rate reductions, and rallies in technology and AI stocks have driven robust market conditions with the S&P maintaining near record levels throughout the quarter. This backdrop, combined with our ongoing technological innovation, product expansion, and increased access across geographies, continues to create significant opportunities for our customers worldwide. Webull Corporation Class A Ordinary Shares is exceptionally well positioned to continue to capitalize on the global consumer shift towards mobile-first trading. We are executing well against this favorable backdrop. This quarter marks significant milestones in product diversification and geographic expansion as we continue to see high growth across our platform. On the heels of our public listing, we successfully reintroduced crypto back to the Webull app and expanded our offerings in the space to include crypto futures trading. We also introduced sports prediction markets through our partnership with Kalshi and are on track to achieve a major international milestone as Webull Canada will soon become the first non-U.S. brokerage in our group to reach $1 billion in assets under management. Just last week, we launched Vega, the latest evolution of our AI-powered decision-making partner, which will enhance the investor experience by providing personalized insights and analysis to inform trading decisions for our users. These offerings are already leading to meaningful ROI. We are seeing strong adoption among both new and existing customers as the platform successfully reengages dormant accounts through compelling new products. During the quarter, we brought crypto trading back to the Webull platform and brought Webull Pay back into our group, which added $1.2 billion in 140,000 funded accounts. Now over 50% of new funded accounts are trading crypto. We will continue to meet investors where they are and increase our share of wallet by introducing them to our expanded products and solutions over time. Our differentiated offerings, including direct deposit enablement and the launch of corporate bonds, continue to set Webull Corporation Class A Ordinary Shares apart from competitors. With each new product, we continue to strive to be the one-stop platform for traders looking to get the most personalized and agile investment opportunities on the market. I am proud of the Webull Corporation Class A Ordinary Shares team for the innovation and execution they have shown in reaching these milestones. We have reached another important milestone in our journey as a public company with the expiration of all shareholder lockup restrictions on October 8, which significantly increased our public float, further enhancing our market liquidity. With that, let me now walk you through the key highlights from the quarter in more detail. Here on Slide two, I'll walk you through our third quarter highlights. We delivered another strong quarter for Webull Corporation Class A Ordinary Shares shareholders. With the year-over-year revenue growth significantly outpacing increasing operating expenses, driving solid margin expansion for another quarter. We recorded top-line revenue of $156.9 million, representing 55% growth year over year driven by four key factors. First, customer assets reached an all-time high of $21.2 billion, inclusive of the $1.2 billion in assets from the acquisition of Webull Pay, marking the third consecutive quarter of AUM growth. Second, equity trading volume surged for the third straight quarter, up 71% year over year. Third, our on-time delivery of new product offerings, including crypto futures and prediction markets, enhanced stickiness and new user growth. Fourth, we continue to broaden access to our leading platform across new and varied geographies. We recorded adjusted operating expenses for the quarter of $120 million, representing a year-over-year increase of just 13%. Our increase in expenses was mainly driven by increased brokerage and transaction expenses, reflecting higher trading volume as well as higher general and administrative expenses driven by increased compensation and bonus accruals reflecting headcount growth and stronger than expected performance. The increase in G&A expenses was partially offset by a lower marketing spend. Lastly, we delivered a fourth straight quarter of operating profitability with a strong 28.7% increase in adjusted operating margin on a year-over-year basis to 23.4%, representing adjusted operating profit of $36.7 million for the third quarter. We continue to focus on execution and margin expansion, reflecting our commitment to delivering sustainable growth and value for our shareholders. Turning now to Slide three and our 2025 roadmap. We continue to enhance our existing product offering while executing against the ambitious roadmap we outlined in Q2 to support our growing customer base and expand market share through new offerings and geographies. We are particularly excited about the launch of Vega. Vega is an AI tool that combines news, earnings, and technical data to deliver a focused, intuitive experience that helps both new and seasoned investors navigate modern trading and make smarter decisions. Other key features of Vega include statistical insights, options trading that showcase investment opportunities, and voice commands for placing trades as we continue to enable accessibility on our platform. As we continue to broaden our offerings to solidify our position as a one-stop investment platform for retail and sophisticated investors, Vega will play a crucial role in enabling further consolidation as investors gain powerful insights across their portfolio of equities, bonds, crypto, and more. Webull Premium, our subscription-based service for active traders and long-term investors, has now reached 90,000 subscribers, a 20% increase from just last quarter and is tracking well ahead of our internal target of 100,000 subscribers by year-end. Our premium offerings have been further bolstered by the introduction of corporate bonds during Q3. Corporate bonds provide customers with low-risk investment opportunities and steady yields while also facilitating asset transfers from traditional brokerages, positioning Webull Corporation Class A Ordinary Shares as the one-stop platform for sophisticated investors. I am excited to discuss the launch of prediction markets. Through our partnership with Kalshi, we have introduced sports prediction markets covering NFL, NBA, NASCAR, F1, and college football events. This offering provides an engaging and accessible trading experience that lowers barriers to entry. Results have been exceptional. More than 30 million prediction contracts were placed in October, nearly twice as many as were placed in September, over half of which were sports contracts. As I stated previously, the return of crypto to our platform has delivered instant results and has become a significant driver of funded account growth. While we currently offer crypto trading to our customers in the U.S., Brazil, and Australia, we will continue expanding crypto offerings across geographies and are actively exploring digital asset licenses in numerous other markets. Finally, our expansion of products available internationally continues to progress. During the quarter, we launched our Webull platform in the EU, beginning in The Netherlands, and anticipate launching in additional European markets over the coming months. We also entered into a strategic partnership with Merits Financial Group to offer U.S. market access to Merits customers in South Korea. In addition, Level three options trading is now live in Singapore and Hong Kong and is set to launch in Japan imminently. We are excited to continue to scale and reach even more global customers as our product offerings continue to grow. We have now over 700,000 funded accounts outside the U.S., and we continue to prioritize delivering U.S. products to international markets and building diversified revenue streams globally. On Slide four, I'll discuss our growth in both users and funded accounts. During the third quarter, we added roughly 1 million registered users, bringing the platform to a total of 25.9 million registered users, a more than 3 million increase from the third quarter of last year, representing a 17% increase. Importantly, that 1 million increase also represents a large sequential increase, showcasing that our product and geographic expansion is driving robust user growth. Webull Corporation Class A Ordinary Shares was originally launched as a global market data platform before evolving to become the leading digital investment platform we are today. As a result, we have a significant number of registered users in geographies where our trading platform is not yet available. We are committed to offering access to best-in-class market data and information to everyone, whether or not they currently have a brokerage account with us. On the right side of the slide, you can see funded account metrics. Funded accounts, defined as accounts where customers have made an initial deposit that has remained above zero for forty-five consecutive calendar days as of the record date, showed healthy growth. We added approximately 200,000 new funded accounts this quarter, inclusive of accounts onboarded through our acquisition of Webull Pay, bringing the total number of funded accounts to 4.93 million, a 9% year-over-year increase. As we continue to innovate and enhance our offering, I am also happy to report that our quarterly retention rate remained high and grew slightly on a sequential basis to 97.7%. Turning to Slide five, as I previously mentioned, Webull Corporation Class A Ordinary Shares customer assets reached an all-time high of $21.2 billion, inclusive of $1.2 billion in assets from the acquisition of Webull Pay, representing an 84% increase on a year-over-year basis and a $5.3 billion sequential increase. The growth in customer assets reflects strong momentum driven by favorable market dynamics and robust deposit activity. Our customers deposited over $2.1 billion during the quarter, a 31% increase year over year, bringing our cumulative net deposits over the last twelve months to $5.9 billion. On Slide six, I'll provide an overview of trading volumes for the quarter. While we are always looking to expand and enhance our product offerings, growth in our core products also continues to accelerate. Our equity volume increased by 71% on a year-over-year basis and 26.7% sequentially, totaling $24 billion. Our options contract volume was 147 million in the third quarter. The associated revenue continues to outpace contract volume growth after implementing a new pricing model in the second half of last year. We are pleased to see the continued results of that initiative with a steady increase in the monetization of our options business. We are now midway through Q4 and are on pace for further growth. October was our best month ever in terms of customer deposits, trading volumes, and revenues. Our new products are driving increases in market share and the consolidation of users' portfolios onto the Webull app. With that, I'll pass the call over to H. C. Wang for a closer look at our financial results for the quarter.
Thank you, Anthony, and thanks to everyone for joining us today. Slide seven shows that in the third quarter, Webull Corporation Class A Ordinary Shares generated revenue of $156.9 million, up 55% year over year. Adjusted operating expenses for the quarter came in at $120.2 million, an increase of 13% from a year ago. We continue to take a disciplined approach to balancing execution costs and operating efficiency as we continue to scale the business. We are pleased with our continued margin expansion and profitability. On the following slides, I will walk through the components of revenues and expenses in more detail. Now turning to Slide eight, on our profitability performance. As Anthony mentioned earlier, Webull Corporation Class A Ordinary Shares has now recorded its fourth consecutive quarter of operating profitability. In Q3, adjusted operating profit reached $36.7 million, our most profitable quarter ever, representing a 28.7% improvement in adjusted operating profit margin year over year. Adjusted net income for the quarter was $32.9 million, up RMB38.6 million year over year. Adjusted net profit margin improved 26.5% year over year, reaching 20.9% of revenue. Turning to Slide nine. Our trading-related revenues continue to accelerate, supported by higher trading volumes across all asset classes and improved monetization, particularly in options. Momentum from the second quarter carried through to Q3, with daily average revenue trade increasing 56% year over year, driving a 64% rise in trading-related revenues. On a per trade basis, revenue increased to $1.53. Turning to Slide 10, our interest-related income. This category includes interest earned on client and corporate cash as well as revenues from margin financing and stock lending activities. In the third quarter, interest-related income grew 32% year over year to RMB43.4 million, driven by higher interest-earning balances across all categories: corporate cash, client cash, margin lending, and fully paid stock lending, reflecting the continued growth of our client assets. Finally, let's turn to Slide 11 for a closer look at operating expenses. As a high-growth business with meaningful operating leverage, we expect operating expenses to increase as we scale, but at a much slower pace compared to revenue growth. In the third quarter, operating expenses grew 13% year over year, primarily due to higher brokerage and transaction costs associated with rapid growth in trading volumes and product expansion. General and administrative expenses also increased, reflecting headcount growth and higher bonus accruals tied to stronger than expected performance. These increases were partially offset by lower marketing spend as we continue to optimize our marketing and branding strategy. We remain committed to maintaining expense discipline while continuing to invest strategically in innovation, customer acquisition, and wallet share expansion to capture sustainable long-term growth opportunities. Now thank you everyone. With that, I will turn the call back to Anthony before we open the line for questions.
Thanks, H. C. This was a record quarter for Webull Corporation Class A Ordinary Shares on many metrics, including revenue and funded account growth, marking an exciting new chapter for our platform as we successfully unveiled innovative product offerings, including crypto futures, sports prediction markets, and our AI-powered decision partner Vega. We remain energized as we continue to deliver our product roadmap for U.S. and global investors. I want to recognize the global Webull Corporation Class A Ordinary Shares team for their continued dedication as we continue to grow our platform following our public listing in early 2025. We look forward to engaging with you at several upcoming industry and investor conferences. On that note, we welcome any questions you may have either here on the call or one-on-one.
Questions and answers
Thank you. We will now begin the question and answer session. Your first question today will come from Kareem Saif with Bank of America Securities. Please go ahead.
Everyone. Can you hear me okay?
Loud and clear.
Perfect. Okay. Well, congrats on a great quarter. My first question is on prediction markets. It was very nice to see you guys added sports contracts to the offering. So Anthony, I was wondering if you could help size the revenue opportunity for Webull Corporation Class A Ordinary Shares from the prediction markets offering as well as share some of the economics that you have with Kalshi?
Sure. Happy to, Kareem. So yes. Many people do not know this, but we have been partnering with Kalshi since the very beginning of the year. We just recently got into the sports prediction markets, at the beginning of the NFL season. Late August, I believe, for Thursday night football. And the prediction market pre-sports has seen some really nice growth as we did, like, SPY hourlies, NBX hourlies, some major Fed events. But the sports numbers have been completely blowing us away, right? We have all seen the headlines about how much growth we have seen from Kalshi and Polymarket on a notional value. We are seeing that lockstep. The value of offering these sports predictive contracts is multifold the way I look at it. Right? We announced 30 million contracts in October. You know, we are already now halfway into Q4 on November 20. And that number is completely gone. We are blowing that number away already in November. Right? And I would not be surprised if we see a month-on-month growth of over 100% on a pretty consistent level. Now the opportunity from a monetary standpoint varies with every partner that Kalshi has. So we charge a $0.01 commission to our clients that are trading per contract. We also get an exchange rebate from Kalshi. The blended rate comes in anywhere between 1.25 to 1.5¢ per contract. On the revenue side. That being said, I do not think it is merely a revenue catalyst for our business. These sports prediction markets are reengaging dormant accounts, right? It is also addressing a completely new total addressable market of customers. And so, you know, if we have customers that came on the platform in 2021 during GameStop, the world opened up. They got quiet, right? Life got in the way, and they were not actively trading. Now they are back because of these sports prediction markets in a big way. And it is a great way to reengage customers that have gone dormant. It is a great way to address a whole new addressable market of clients. So it is a very exciting time for our industry. And I do think prediction markets are going to be something that continues to push us not only on new customer acquisition but product expansion.
Got it. That was very helpful. Thank you very much. And then for my follow-up, so obviously, it was very nice to see, I believe you called it in your prepared remarks, net deposits in October were very strong. The best I believe, the best months for Webull Corporation Class A Ordinary Shares. But when I look at net deposits in Q3, very strong also at $2.1 billion, which I believe like when I look at it as a percentage of your AUA or AUC, it is like almost 53% annualized. So I was wondering if you could maybe unpack that a little bit for us, where are you seeing that strength coming from? If you could maybe unpack it by geography, that would be very helpful.
Absolutely. So one of the great advantages we have versus many of our peers is the fact that we are truly a global platform. We have 14 broker-dealers that are currently operating around the world. The U.S. is the largest and the oldest but we just opened up in The Netherlands in September. Went live in 2025 and we continue to look to expand. That expansion and us taking significant market share not only in the U.S. but outside the U.S. is one of the great drivers for that AUM growth. Right? So we took in $2.1 billion of net deposits in Q3 alone. That is not including the acquisition of Webull Pay and the money we received as part of the AUM in that acquisition. I would put it on two different catalysts for that impressive net new money coming in. One is the evolution of our marketing style. We have been evolving our marketing over time and we have seen a lot of success and great ROI on our incentive transfer programs, such as offering sticky money to rollover 401(k)s into Webull Corporation Class A Ordinary Shares, where we are offering matching deposits. This has proven extremely successful in bringing new AUM into the platform. Then back to the geographic expansion. We are seeing huge growth in markets like Canada that we did not announce about to cross $1 billion in AUM alone in that market. That is only call it, twenty months old at this point. We have other locations that we are seeing huge amounts of growth like Australia, of all places, and Thailand is doubling on a quarter-over-quarter basis in terms of what we are seeing in transaction. That is a recurring theme we are seeing outside of the U.S. As we start expanding U.S. products outside to the non-U.S. entities, we see customer demand for U.S. products really pushing new customer acquisition and new AUM coming into the platform.
Got it. That was very helpful. Thank you so much for taking my questions. I'll hop back in the queue.
The next question will come from Steven Chubak with Wolfe Research. Please go ahead.
Hi, good afternoon and thanks for taking my questions. I wanted to ask a two-parter just on expenses and margins. So we saw really good expense discipline in the quarter. Total revenues were up 55%, adjusted expense up 13%. So impressive incremental margin just north of 75%. I wanted to understand the sustainability of those incremental margins, just given myriad opportunities to lean in on the investment side? And then for the second part, given the comments you just made, Anthony, around the marketing strategy, why not choose to lean in a little bit more in terms of marketing spend just given the strong momentum in Q3 and October? I recognize the high ROI is that was the one bucket that actually saw declines year on year. I wanted to better understand how you're thinking about the opportunity to lean in there as well.
Sure. Happy to pick that up. When we look at our customers being able to transfer assets in, we are continually improving on the product and the rails for them to do so easily. When we think of margin expansion, we are cognizant that we are in an extreme growth phase of our business. So right where we are now in the mid-20s in terms of margin is extremely healthy for a growth company. We are going to continue to deliver on that. I can hand it over to H. C. for a little more detail on the actual margin and the expenses side.
Sure. Thanks, Anthony, and thank you for the question. Yes. So for us, as you can see, we have consistently maintained our adjusted operating margin around 20% for the last four quarters. We are constantly optimizing and adjusting how we are approaching expenses. For example, marketing. I think you asked about why not over invest in marketing when the market is good. In a certain sense, we are very opportunistic. We actually do a lot of work and review on a market-by-market basis to see where we get the highest ROIs in terms of our marketing dollars. But we also want to be smart about investing in forms of different promotions that we take. We have shifted more from giving away free stocks to customers to more of these asset matching promotions. As a result, we are seeing significant increases in net deposits and AUM growth. Another result of that is there is a greater amortization of marketing expenses, meaning it's not just given away immediately when the customer funds their accounts. The customer would have to deposit AUM and maintain their AUM for a number of months before they accrue and earn the whole marketing spend. This helps us in managing expenses to make the marketing expense more predictable quarter over quarter, which is good for managing the P&L. For the G&A expense, most of it is proportionate to our headcount growth and our continued investment in R&D as we continue to enter into new geographies and expand products. We will continue to remain disciplined in managing our expenses to ensure we are on the right path of margin expansion while capturing growth opportunities.
That's great color. And for my follow-up, I did want to ask, given the relaunch of crypto in the U.S., how your crypto strategy might evolve now that you're getting that second at bat? Specifically, I wanted to understand where the crypto pricing is today? Do you see a potential to be more aggressive in terms of take rates to attract more users? How do you see that pricing evolving over time as competition intensifies in the space?
Yeah. I appreciate that question. Extremely excited about the relaunch of crypto and appreciate you mentioning this as our second chance. We launched crypto back in 2019, then, during the process of trying to get our company listed, we spun it out to Webull Pay. Now we have brought crypto back to the brokerage platform, back in August, as a kind of a light-speed project, if you will. So this is our second opportunity to really excel. What does that mean for us? We are still in the early stages of our crypto offering on our platform. I think we lean into the sophistication of our active trading user base. Right now, we have approximately 100 basis points. Coinbase retail is about 150 basis points. I know some of our competitors use a variable model based on the actual token itself for pricing. We are going to aggressively position ourselves to attract active crypto traders by squeezing those take rates. Now, the timeline for that business may be early in '26; I need to be careful on guidance. However, we have a significant opportunity to relaunch our crypto product that attracts the customers who call Webull Corporation Class A Ordinary Shares home – sophisticated and active retail traders. We will tailor our crypto trading products specifically to them, especially as we roll out new products in the crypto space. I don't want to disclose too much right now. We'll announce a lot of major new additions to our crypto offering to level the playing field with our competitors. Once we are on that playing field, we're going to aggressively target those active traders.
That's great color. Thanks so much for taking my questions.
The next question will come from Michael John Grondahl with Northland Securities. Please go ahead.
Hey, thanks guys. Anthony, can you talk a little bit about the Merits announcement and kind of the opportunity you have there globally? Is Merits the first? Do you have other customers internationally you're helping like that?
So Merits is the first publicly announced but not the first. When we refer to Merits, we're talking about institutional customer bases or a B2B business, which is a completely new line of business for us. We have been 100% focused on retail since we launched in 2018. Now we're directing significant internal resources to targeting B2B partnerships in geographies where we don't currently operate a broker-dealer. We're also in discussions with B2B partnerships with institutional partners in places where we do have a retail platform. That said, none of this revenue is yet even factored into our current models and current growth. So Merits is an example of getting access to South Korean retail without needing a South Korean retail brokerage license. We will continue to focus on opportunities like that, and I believe the institutional side of our business is just beginning. Merits is the first announcement on a very long list of clients in the pipeline. This will be a huge boom not only for our market share but for our top and bottom lines.
And when would you expect Merits to go live? Has it started? What does that timeline look like to ramp up?
Typically, institutional onboarding takes much longer than retail onboarding. We can open a retail account in minutes, and our retail customers can typically trade within five minutes of downloading the app. This is quite different for institutional clients, as there are many more checks and approvals, sometimes even at the board level. That being said, we are currently live with Merits. We are currently trading on behalf of their clients' orders. As we continue to grow the relationships, the amount of flow we receive from Merits will continue to grow over time.
Got it. And then just lastly related to that, where will that revenue show up? Is that in other revenues or in the equity and options line?
This is actually one of the fun parts. The revenues will show up in our transaction volumes. Even if we see a slowdown in U.S. retail trading volumes, our trading volumes will continue to tick up because we're onboarding a lot of these B2B relationships. So it will be mixed into the transaction revenue in equities and hopefully in the next several months options as well. Currently, we're trading equities only with Merits.
Got it. Hey, thank you and good luck.
Next question will come from Christopher Charles Brendler with Rosenblatt. Please go ahead.
Hey, thanks. Good evening and congratulations on the strong results here. I'd like to ask about the funded accounts, which ticked up. I know even if you back out the crypto, you did see a nice tick up there. I know there's been a bit of a refocus of your marketing strategy towards assets over accounts, but given the gap between registered and funding, I'd love to see that close a little bit. So how are you thinking about funded account growth as you head into 2026? Thanks.
Sure. Hey, Chris. Funded account growth in my opinion, we're going to see so. We're going to start seeing a lot more attribution coming from outside the U.S. As we mentioned earlier, we have more than 700,000 funded accounts now outside the U.S. We have seen momentum in onboarding of funded accounts outside the U.S. for the last six months; it was about 55% of new funded accounts coming from the U.S brokerage and about 45% from outside. That number is now completely equalizing, and we are at about fifty-fifty. In fact, I wouldn't be surprised if we start seeing new funded account growth outside of the U.S. outpace funded accounts growth in the U.S. I believe that is going to continue to be the driver as the 13 broker-dealers that we operate outside the U.S. start to really mature. If you remember, the first brokerage outside the U.S. we opened was Hong Kong in 2021. The second one wasn't until 2022, which was Singapore. We just opened our latest one in The Netherlands in September '25. These are all relatively young businesses that are in hyperscale mode. We are going to see a lot of low-cost, low customer acquisition costs, new funded accounts being driven from outside the U.S. In the U.S., we will continue to focus on the quality of our customers.
That's super helpful color. Thanks so much for that. I wanted to add a quick follow-up on numbers. Does crypto or prediction markets have any impact on third-quarter metrics like DARTs or trading revenues? Will those kind of transactions show up in those metrics in the fourth quarter?
Yes, sure. We actually closed the Webull Pay transaction at the very end of the third quarter. The third quarter metrics include the AUM and funded accounts that we consolidated as part of the transaction. However, the revenues, transaction volumes, and DARTs did not occur during the quarter because they occurred after the transaction's completion. They will start to be included and presented as part of the consolidated group results starting in Q4.
Okay, great. That's helpful. Then I just have one more quick one. Which is on Vega. It seems like this is a product that would help attract folks to your platform and potentially keep them there longer? Any insights on the initial impact of Vega? And on the expense side, is there an ongoing expense from running this AI that you're outsourcing or is it all developed in-house and there won't be much additional expense?
Yes. The Vega AI launch is not only significant for Webull Corporation Class A Ordinary Shares, but this is the future of investing. There is so much news flow and information at all investors' fingertips, often leading to overwhelming amounts. Now we have created in-house our Vega AI trading assistant that analyzes your portfolio and can advise you on high levels of risk, providing insights into implied volatility in some of your options positions. This is a game changer for the industry. Since we developed everything in-house, there is no increased cost, and user engagement has been phenomenal. We are seeing tens of millions of engagements with Vega, whether it's for actionable trading through the Vega AI trade assistant or just analysis of earnings or consolidation of news. Every day we see more and more engagements and regular user returns, making Vega a crucial part of how retail engages with their portfolios and accesses market opportunities.
Well, that's great. I obviously need to try it out. Thanks so much.
The next question will come from Brian Vieten with Seiberg. Please go ahead.
Great. Thanks guys. Anthony, we saw a nice pickup in funded accounts this quarter. I think you said 50% of new accounts are trading crypto. Does that include the Webull Pay folks? Looking ahead, could you speak to the opportunity in converting existing Webull funded accounts? I'm just curious about that as your customer demographic is younger and digitally native. Thanks.
Yes, exactly right. The average Webull Corporation Class A Ordinary Shares customer is in their young 30s; they are very crypto native. It really pained me in September 2023 when we had to remove our crypto offering from our brokerage platform. Our customers were not happy with that. So bringing it back was imperative. Now that we have it back, we have the opportunity not only to excel with a better offering of crypto, especially for our customer type. We have seen great engagement from crypto-native customers who are either returning to Webull Corporation Class A Ordinary Shares or discovering it for the first time. As you mentioned, 50% of new funded accounts, 50% of them, the first trade they made was with cryptocurrency on the Webull Corporation Class A Ordinary Shares platform. These are not customers coming over from Webull Pay; they are new customers to Webull Corporation Class A Ordinary Shares simply because we now offer crypto. We will continue to lean into that type of customer and ensure we provide the tightest spreads and the best trading experience for the customers who call us home, particularly the active and sophisticated users.
Very good. Thank you. Then just one more if I may. Just on the future listings, I think at one point the plan was to get to 100 by year-end, I'm not sure if maybe that's contingent on some of the regulatory dynamics, as you alluded to. However, what is the complexion of those future listings? Are you envisioning more established crypto protocols or more differentiated, newer tokenized assets? Any commentary on the listing strategy would be great. Thank you.
Yes. One of the fundamentals we’ve always held is whether it's crypto, equities, options, or even prediction markets, we want to give our customers access to as much as possible. While I do not want to go on record stating that we're going to have 100 different tokens available to trade by year-end, that certainly is our goal. However, when we look at new product types, it's about offering a better experience. The short answer is yes. We plan to have many different opportunities and offerings on the platform as we can manage. We are determined to ensure Webull Corporation Class A Ordinary Shares is the best place to trade.
Thanks, Anthony. Congrats on a great quarter.
Next question will come from Edward Lee Engel with Compass Point. Please go ahead.
Hi, everyone. Thanks for taking my question. I appreciate some of the color you gave about funded accounts outside The U.S. Just kind of wanted to get a better sense on maybe some of the localized features that you're offering in some of these markets, and where the roadmap is, whether it's tax wrappers or savings accounts, or local banking connectivity? Thanks.
Sure. It really depends on the region. We've always held a single mentality here: we have a global vision but execute locally. Each Webull Corporation Class A Ordinary Shares broker-dealer that we have, 14 around the world, has a local team. It's not an American running the office in London; we have a Brit in London leading that office. They not only have a better understanding of customer needs but also better opportunities for local marketing and differentiation. That being said, many of those businesses are still relatively young, and we are constantly adding new products, such as tax wrappers—for example, IRAs in the U.S. or ESAs, ISAs in the UK. As soon as we obtain regulatory approval to add those products, we do. Most of the time, every Webull Corporation Class A Ordinary Shares entity will trade local securities in that country as well as give customers the ability to trade U.S. Products. One exception could be Indonesia, which currently does not have a license for customers to trade U.S. securities – however, we hope that will change by year-end. We see the majority of transactions happening in our non-U.S. entities, and they are primarily in U.S. products. This aligns with my previous comments regarding the exportation of the U.S. retail trading experience being a key growth factor in the next year and a half.
Great, appreciate that color. And then, I guess, to date, we have seen a bit of volatility in U.S. markets. Curious if you could provide any insight on how your users are holding up through some of that? Thanks.
Sure. I think uniquely, Webull Corporation Class A Ordinary Shares is extremely well positioned for a rising VIX. Our customers, I mean, we've been offering the ability to short-sell since we launched the platform in 2018. In times of volatility, our customers tend to trade more. In the past couple of weeks, we have seen explosive volume due to volatility. I believe Webull Corporation Class A Ordinary Shares is better positioned to weather volatile markets than our peers. That being said, long-term volatility is not ideal for a cyclical business, but as a platform, we are accelerating into this volatility in the short term.
Great. Thanks for that. And yeah, congrats on another quarter of progress.
Thanks.
We'll conclude our question and answer session as well as the conference call. Thank you all for attending today's presentation. You may now disconnect.