TLDR
- Northland initiated coverage of Webull with an “Outperform” rating and $18 price target
- Company reported Q2 net loss of $518.86 million despite 46% revenue growth to $131.49 million
- Webull relaunched crypto trading services in August and expanded to Brazil through Coinbase partnership
- Stock’s Relative Strength Rating improved from 78 to 82, indicating better market leadership
- Company secured $1 billion standby equity agreement with Yorkville Advisors for future growth funding
Webull Corporation is catching analyst attention even as the trading platform grapples with mixed financial results. The commission-free trading platform recently received its first major analyst coverage, but the timing comes after some challenging quarterly numbers.
Northland analyst Mike Grondahl initiated coverage with an “Outperform” rating and set an $18 price target. The analyst pointed to Webull’s comprehensive trading suite that includes stocks, ETFs, options, and cryptocurrencies. Grondahl highlighted how the platform appeals to younger, more sophisticated investors who want professional-grade tools.
The positive coverage comes at an interesting time. Webull’s stock had dropped 8.96% over the past month before the analyst recommendation. The current share price of $12.82 sits well below the 52-week high of $79.56.
Revenue Growth Can’t Hide the Losses
Webull’s Q2 2025 results tell a complex story. The company posted total revenues of $131.49 million, representing a 46% increase from the previous year. That’s the kind of growth that typically gets investors excited.
But the bottom line painted a different picture. Webull recorded a net loss attributable to shareholders of $518.86 million. That’s a massive jump from the $22.67 million loss in Q2 2024.
The company blamed most of this loss on fair value adjustments related to ordinary shares issued to preferred shareholders. It’s an accounting issue, but one that still hit the stock price hard. Shares fell 7.36% following the earnings announcement.
The earnings report showed EPS growth dropped from 500% to 0%. However, the revenue acceleration from 32% to 46% growth provided some comfort to bulls.
Platform Expansion and Market Position
Webull hasn’t been sitting still while dealing with profitability challenges. The company relaunched its cryptocurrency trading services on August 25, 2025. Users can now trade Bitcoin, Ethereum, Solana, and Cardano directly through the platform.
The crypto relaunch included international expansion. Webull entered the Brazilian market in June through a partnership with Coinbase. Brazilian users can access the same popular cryptocurrencies that U.S. customers trade.
The platform’s appeal to active traders continues to drive user engagement. Webull offers commission-free trading with advanced tools that were traditionally only available to institutional investors. This approach has helped the company build a loyal user base.
Webull also secured financial flexibility for future growth. The company signed a $1 billion standby equity purchase agreement with Yorkville Advisors. This three-year deal lets Webull issue Class A ordinary shares when needed for expansion or product development.
Market Leadership Metrics Show Promise
The stock’s technical indicators suggest improving market sentiment. Webull’s Relative Strength Rating jumped from 78 to 82 on Friday. This metric compares price performance over the trailing 52 weeks to all other stocks in the database.
A rating of 80 or higher typically indicates strong market leadership potential. History shows the best performing stocks often have RS ratings above 80 before major moves. Webull currently ranks 27th among peers in the Finance-Investment Banking/Brokers industry group.
The company’s market cap stands at $6.22 billion with a P/E ratio of 85.61. The stock trades at a PEG ratio of 0.85, which suggests potential undervaluation relative to its growth rate.
Webull’s gross margin of 78.11% demonstrates the platform’s ability to generate profit from its core trading services. The challenge remains turning that gross profit into net income while managing share-based compensation costs.
