Compugen 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.

Thank you, Anthony, and thanks to everyone for joining us today. Slide 7 shows that in the third quarter, Webull 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. And 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 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 $38.6 million year-over-year. Adjusted net profit margin improved 26.5 percent year-over-year, reaching 20.9 percent 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. Daily average revenue trade increased 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 on 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 $43.4 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, HC. This was a record quarter for Webull 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 predicting 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 team for their continued dedication to 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.

Thank you. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then 2. At this time, we will pause momentarily to assemble our roster. And your first question today will come from Kareem Saif with Bank of America Securities. Please go ahead.

Hi. Good evening, 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 of So, Anthony, I was wondering if you could maybe, like, you know, help size the revenue opportunity for Webull from the prediction markets offering, as well as, like, you know, maybe share some of the, any of the economics that you have with CalSheet.

Sure. Happy to, Kareem. So, yes, so many people don't know this, but we've 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, you know, The prediction market pre-sports has seen some really nice growth as we did like SPY hourly, NDX hourly, some major Fed events. But the sports numbers have been completely blowing us away, right? And we've all seen the headlines and how much growth we've seen from Calci and Tali market on a notional value. We're seeing that lockstep and the value of offering these sports predictive contracts are multifold the way I look at it. We announced 30 million contracts in October. We're already now halfway into Q4 on the 20th of November, and that number is is completely gone we're blowing that number away already in november right and i wouldn't be surprised if we see if we see a month-on-month growth at over a hundred percent on a pretty consistent level now the opportunity from a monetary standpoint is different with every partner that CalSheet has. So we do charge a one-cent commission to our clients that are trading per contract, and we also get an exchange rebate from CalSheet. And the blended rate comes in anywhere between one and a quarter to one and a half cents per contract on the revenue side. That being said... I don't think it's merely a revenue catalyst for our business. These sports prediction markets are re-engaging dormant accounts, right? And it's also addressing a completely new TAM of customer. And so, you know, if we have customers that might have came on the platform in 2021 during GameStop, the world opened up, they got quiet, right? Life got in the way and they weren't actively trading. Now they're back because of these sports prediction markets in a big way. And it's a great way to reengage customers that have gone dormant. It's a great way to address a whole new addressable market of clients. So very exciting time for our industry. And I do think prediction markets are going to be something that's going to continue 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. It was the best, I believe, like, you know, the best months for Webull. But when I look at net deposits in 3Q, very strong also, 2.1 billion, which I believe, like, when I look at it as a percentage of... your AUA or AUC, it's almost 53% annualized. I was wondering if you could maybe help 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. One of the great advantages we have versus a lot 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 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. So we took in $2.1 billion of net deposits in Q3 alone. That's not including the acquisition of We Will Pay and the money we received as part of the AUM in that acquisition. And I would put it on two different catalysts for that impressive net new money coming in. One is the evolution of our marketing style. So we have been evolving our marketing over time and we've seen a lot of success and great ROI on our incentive transfer programs. So offering like sticky money to roll over 401ks into Webull, where we're offering matching deposits, extremely successful in bringing new AUM into the platform. And then back to the geographic expansion, we're seeing, Huge growth in markets like Canada that we then announced is about to cross $1 billion in AUM alone in that market. That's only, call it, 20 months old at this point. We have other locations that we're seeing huge amounts of growth, like Australia. Of all places, Thailand is growing in the – is doubling on a quarter-over-quarter basis in terms of what we're seeing in transactions. And that's a recurring theme that we're seeing outside of the U.S. As we start expanding on U.S. products outside to the non-U.S. entities, we're seeing the customer demand for U.S. products really push new customer acquisition and new AUM coming into the platforms.

Got it. That was very helpful. Thank you so much for taking my questions. I'll hop back in the queue.

Next question will come from Steven Schubach with Wolf Research. Please go ahead.

Hi. Good afternoon, and thanks for taking my questions. So one of the – hey, I hope you guys are well. So I wanted to ask a multi-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 an 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 3Q in October? I recognize the high ROIs. That was the one bucket that actually saw declines year on year, so I wanted to better understand how you're thinking about the opportunity to lean in there as well.

Sure. Happy to pick that up. So when we look at our customers being able – to transfer assets in. We're constantly improving on the product and the rails for them to do so easily. And when we think of margin expansion, we are very cognizant that we are in an extreme growth phase of our business. So right where we are now in the mid kind of 20s of margin, I think is extremely healthy for a growth company. And we're 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 Yeah, so for us as you can see that we've consistently maintained our Adjusted operating margin around 20% for the last four quarters and so we are constantly optimizing and adjusting how we're approaching expenses. For example, marketing. I think you asked about why not overinvest in marketing when the market is good. I think 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 the forms of different promotions that we take. And so we have, over time, shifted more from giving away free stocks to customers to more of these asset-matching promotions. And as a result of that, we are seeing significant increases in net deposits in AUM growth. Another result of that is... there's a greater amortization of marketing expenses. So 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 So actually that helps us in managing expenses to make the marketing expense more predictable quarter over quarter, which I think is a good thing in terms of managing the P&L. And also for the G&A expense, I think a lot of it is just proportionate to our headcount growth and to our continued investment in R&D as we continue to enter into new geographies and expand products. So we'll continue to remain disciplined and manage our expenses to make sure that we continue on the right path of market expansion and continue to capitalize on this market environment and continue to drive growth.

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 that and specifically wanted to better understand where the crypto pricing is today. Do you see an opportunity to potentially be more aggressive in terms of take rates to attract more users? and how you see that pricing evolving over time as competition intensifies in the space?

Yeah, no, I appreciate that question. Extremely excited about the relaunch of crypto, and I appreciate you mentioning it's kind of our second at bat. You know, we obviously, we had crypto, and we launched crypto back in 2019, you know, through the process of trying to get our company listed. Previous administration, we spun it out to WeWillPay. We brought We brought that crypto back to the brokerage platform, the main brokerage platform back in August, kind of like a light speed project, if you will. And so I look at it exactly like that. This is our second opportunity to really knock it out of the park. What does that mean for us? Right. So we're still in the early innings of crypto. at least crypto offering on our platform. I think we lean into the sophisticated fact of our active trading platform user base and so 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 and we are going to aggressively lean in to squeezing those take rates to attract active crypto traders Now, timeline on that business is probably going to be early in 26. I have to be careful on guidance. But when I think about it, you know, we have an amazing opportunity to relaunch our crypto product with a whole new vigor that attracts the customers that call Webull home. Sophisticated, experienced, and active retail traders, we are going to cater to our crypto trading products specifically to them. As we roll out especially new products in the crypto world, I don't want to give up too much on this call. We'll be announcing a lot of major new additions to our crypto offering to get us on the same level playing field as all of our competitors. Once we are on that playing field, we're going to aggressively take those active traders from our comps.

That's great, Keller. Thanks so much for taking my questions.

The next question will come from Mike Grondahl with Northland Securities. Please go ahead.

Hey, thanks, guys. Anthony, can you talk a little bit about the Merit announcement and kind of the opportunity you have there globally? And is Merit the first? Do you have other – customers internationally, you're helping like that?

So Merits is the first publicly announced, but not the first. And when we say Merits, we're talking about institutional customer bases or 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 spending a significant amount of internal resources and a significant amount of focus on targeting B2B partnerships in geographies where we don't currently operate a broker-dealer. We're even talking to B&B partnerships, to institutional-type partners in places where we actually do have retail, a retail platform. Having said that, None of this revenue is yet even factored in to our current models and our current growth. And so the future, so Merits is an example of getting access to South Korean retail without having to have a South Korean retail brokerage license. We're going to continue to focus on opportunities like that, and in my opinion, The institutional side of our business, which is just beginning, Merits is the first announcement on a very long list of clients that are in the pipeline. That's going to 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?

So typically, institutional onboarding takes much longer than retail onboarding, right? We can open up a retail account in minutes, and our retail customers can typically trade within five minutes of downloading the app. It's very different for institutional. There is a lot more checks. There is a lot more approval, sometimes even up at the board level. That being said, we are currently live with merits. We are currently trading on behalf of their client's orders. And as we continue to grow the relationships, the amount of flow that 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 other revenues or in the equity and options line?

So this is actually one of the fun parts. So The revenues actually show up in our transaction volumes. So even if we see a slowdown in, you know, 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's going to be baked into the transaction revenue mixed in the equities and hopefully in the next several months options. Currently, we're trading equities only with merits.

Got it. Hey, thank you, and good luck.

Thank you. Next question will come from Chris 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 little 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. Well, 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 of the U.S. Like we mentioned on the call earlier, we have more than 700,000 funded accounts now that are outside the U.S. And we've seen the momentum and onboarding of funded accounts outside of the U.S. Basically, for the last six months, it was about 55%, 50%, right? 55% of new funded accounts coming from the U.S. broker, about 45% coming from outside. That number is now completely equalizing. And we're at about 50-50. And, in fact, I wouldn't be surprised if we start seeing new funded account growth outpace outside of the U.S., outpace funded account growth in the U.S. I believe that's going to be the continued driver as the 13 broker dealers that we operate outside the U.S. start to really mature. If you remember, the first brokerage outside of the U.S. we opened was Hong Kong in Q3 of 21. The second one wasn't until Q2 of 2022, which is Singapore. We just opened our latest one in the Netherlands in September of 25. So these are all relatively young businesses that are in hyperscale mode. And so we're going to see a lot of low cost, low customer acquisition costs, new funded accounts really being driven from outside the U.S. And in the U.S., we're going to continue to focus on quality of our customers.

That's super helpful, Connor. 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? And will those kind of transactions show up in those metrics in the fourth quarter?

HC, you want to take this?

Yeah, sure. So we actually closed the WebullPay transaction at the very end of the third quarter. So what the third quarter metrics include is the AOM and funded accounts that were consolidated as part of the transaction. What's not included is the revenues, the transaction volumes, and the darts, because those are you know, those take place over the course of the quarter. But, you know, the transaction did not close until the very end. But they will start to be included and presented as part of the consolidated group results starting in Q4.

Okay, great. That's helpful. And then I just have one more quick one, which is on Vega, you know, it seems like this is a product that would help attract folks to your platform and potentially stay there longer. Any insights on the initial impact of Vega and on the expense side? Is it an ongoing expense for running this AI that you're outsourcing, or is it all developed in-house that it won't be a much additional expense?

Yeah, so the Vega AI launch is not only a huge thing for Webull. This is the future of investing, right? There is so much news flow, so much information at all investors' fingertips. Often it's like drinking out of a fire hose. Now, we've created in-house, to answer that question, in-house we've created our Vega AI trading assistant. Not only analyzes your portfolio, but can advise you on high levels of risk and give you insights into implied volatility in some of your options positions, right? This is a game changer for the industry. And so because we developed it all in-house, there is no increased costs and the user engagement has been phenomenal. We're seeing tens of millions of engagements of Vega, whether it's for actionable trading through the Vega AI trade assistant or just analysis of earnings or consolidation of news. And every day we're seeing more and more engagements and we're seeing regular engagements, meaning we're seeing users come back to Vega regularly. And I believe that this is now the beginning of a whole new way that retail engages in their own portfolio and accesses market information and market opportunity.

Wow, that's great. I obviously need to try it out. Thanks so much.

The next question will come from Brian Vietten with Cybert. Please go ahead.

Great. Thanks, guys. Anthony, so nice pickup in funded accounts this quarter. I think you said 50% of new accounts are trading crypto. Does that include the WebullPay folks? And then looking ahead, could you speak to the opportunity in converting existing Webull-funded accounts? I'm just curious on that as I know your customer demographic is younger and digitally native.

Yeah, exactly right. So the average Webull customer is in their young 30s, so very, very crypto native. And it really pained me back in September of 23 when we had to strip out our crypto offering from our brokerage platform. Our customers were not happy with it. So bringing it back was imperative. Now that we have it back and we have the opportunity not only to knock it out of the park with you know, a better offering of crypto, especially for our customer type. We've been seeing great engagement for crypto native customers either coming back to Webull or discovering Webull for the first time. So like you mentioned, 50% of new funded accounts, 50% of them, the first trade they made was with cryptocurrency on the Webull platform. Those are not customers coming over from Webull Pay. Those are new customers to Webull in and of itself simply because we now offer crypto. So we're going to continue to lean in to that type of customer. And like I mentioned before, make sure we give the tightest spreads and the best trading experience for the customer that calls us home, and that's the active, sophisticated type.

Very good. Thank you. And then just one more, if I may. Just on the – you know, future listings. I think at one point the plan was to get to a hundred by year end. I'm not sure if maybe there's some, it's a little contingent on some of the regulatory dynamics, which you alluded to, but just the complexion of those future listings, are you envisioning more so, you know, listing established crypto protocols or, you know, kind of newer tokenized assets where you might be more differentiated, just any, commentary on the listing strategy. It would be great. Thank you.

Yeah. So, I mean, one of the fundamentals that we've always held here, whether it's crypto, it's, it's equities, it's options, you know, again, prediction markets, we want to give our customers the availability to trade as much as we possibly can offer. You know, If that means, so you mentioned 100 as a number, I don't want to go on record and say we're going to have 100 different tokens available to trade by year end, but that certainly is our goal. Having said that, you know, when we look at, you know, when we look at the opportunity for crypto, it's more than just offering tokens. you know, new product types, it's offering a better experience to do so. So, yes, the short answer is yes. We, you know, we plan to have as many different opportunities and as many different offerings on the platform as we possibly can bring. And we plan to really lean into making sure our customers feel that this is the best place, Webull is the best place to trade.

Thanks, Anthony. Congrats on a great quarter.

Next question will come from Edward Engel with CompassPoint. Please go ahead.

Hi, everyone. Thanks for taking my question. 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 some of these markets and kind of where the roadmap is, whether it's tax wrappers or savings accounts or local banking connectivity. Thanks.

Sure. So it really depends on the region. We've always had a single mentality here. We have one global vision, but we make sure that we execute locally. What does that mean? Simply, every Webull broker deal that we have, 14 around the world, has a local team. It's not an American that's sitting in London. We have a Brit sitting in London running the office there. There's a reason for that. Not only do they have a better feel For what that customer needs, they also have a better opportunity for local marketing, how to differentiate. That being said, a lot of those businesses are still relatively young and we're constantly adding new products. Things like cash wrappers, for example, IRAs in the U.S. or ISAs in the U.K. I'm thinking U.K., maybe too much, but IRAs. As soon as we have the regulatory approval to add those products, we always do. And for the most part, there are two or three exceptions, but for the most part, every Webull entity will trade the local security in that country, as well as give customers the ability to trade U.S. products. The one example I can think of is Indonesia. There is no license yet in Indonesia for our Indonesian customers to trade U.S. securities. However, hopefully that will change by year end. That all being said, we see the majority of transactions happening in our non-U.S. entities. The transactions are happening in U.S. products. And that goes back to things I've been talking about for the last year and change. The exportation of the U.S. retail trading experience, is one of the largest growth factors that I believe we're going to see in the next year, year and a half, especially when it comes to retail out of the US. We have seen the adoption of not only obviously ETF trading outside the US, but options trading specifically. For example, a customer sitting in New York City has a position in Nvidia yesterday, coming out with earnings at the close. And we have a customer sitting in Japan, Also, with the position in NVIDIA, they're looking at the same news flows. They're listening to the same podcast. They're listening to it. They're watching the same Reddit feeds. They're reading the same comments on the Webull community. Yet a lot of times they're not able to trade the same products. We're changing that. Now our customers in Japan can trade calendar spreads, can put on a condor. That doesn't exist for the most part outside of the U.S., And we are working very hard to make sure that we export that U.S. retail investor experience to everywhere outside the U.S., which is one of the main reasons why we're seeing such amazing growth in our non-U.S. brokerages.

Great. Appreciate that color. And then, I mean, I guess core to date, we have seen a bit of volatility in the U.S. equity market. I'm curious if you're able to provide any color on, I guess, how your users are kind of holding up through some of that. Thanks.

Sure. I think uniquely Webull, we are extremely well positioned for a rising VIX. Our customers, I mean, we've been offering the ability to short sell since the first day that we launched a platform in 2018. Our customers, again, I keep saying this word sophisticated. I keep saying this word experience. When there's volatility, our customers are trading more. And so just the past couple weeks, we've seen explosive volume due to volatility, and I think Webull is probably uniquely positioned to weather volatile markets a lot better than our peers. That, of course, being said, long-term volatility is never amazing for a cyclical business, but I believe as a platform, we are accelerating into this volatility in the short term.

Great. Thanks for that. And then, yeah, congrats on all the recent progress.

Thanks. We'll conclude our question and answer session as well as conference call. Thank you all for attending today's presentation. You may now disconnect.