Camtek Ltd.

Good evening and welcome to Webull's third quarter 2025 conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Carlos Questel, Webull's head of investor relations. Please go ahead. Carlos Questel, Webull's head of investor relations.

Good morning, good afternoon, and good evening, everyone. Welcome to Webull's 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 weeblecorp.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'll 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. Today's 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 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's 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, which drove 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 is exceptionally well-positioned to continue to capitalize on the global consumer shift towards mobile-first trading. We're 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. And 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're seeing strong adoption among both new and existing customers as the platform successfully re-engages dormant accounts through compelling new products. During the quarter, we brought crypto trading back to the Weevil platform and brought Weevil Pay back into our group, which added $1.2 billion in AUM and over 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 Weevil 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'm proud of the Weevil team for the innovation and execution they've demonstrated in reaching these milestones. We've reached another important milestone in our journey as a public company with the expiration of all shareholder lockup restrictions on October 8th, 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 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 We Will 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. And fourth, we continue to broaden access to our leading platform across new and varied geographies. We recorded adjusted 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-point 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're 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 for 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. Weevil 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 trekking 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 Weevil as the one-stop platform for sophisticated investors. I'm excited to discuss the launch of prediction markets on our platform. Through our partnership with Calshi, we've 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. The 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 US, 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 Merit's financial group to offer U.S. market access to Merit's customers in South Korea. In addition, Level 3 options trading is now live in Singapore and Hong Kong and is set to launch in Japan imminently. and we're 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. Weevil 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 45 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, we're 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 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 12 months to 5.9 billion. On slide six, I'll provide an overview of trading volumes for the quarter. While we're always looking to expand and enhance our product offerings, growth in our core products also continue to accelerate. Our equity volume increased by 71% on a year-over-year basis and 26.7% sequentially, totaling $204 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. and 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, and our new products are driving increases in market share and the consolidation of users' portfolio onto the Webull app. With that, I'll pass the call over to HC for a closer look at our financial results for the quarter.