Brian Vieten

Brian Vieten asked for clarification on the 50% of new accounts trading crypto, specifically if it included Webull Pay customers, and the opportunity to convert existing Webull funded accounts given their demographic. He also inquired about the future crypto listing strategy, including the goal of 100 tokens by year-end and the focus on established versus newer tokenized assets.

Answer

Group President and U.S. CEO, Anthony Denier, confirmed that the 50% figure for new funded accounts trading crypto does NOT include Webull Pay customers, but rather new Webull customers attracted by the crypto offering. He highlighted the average Webull customer's young, crypto-native demographic and the imperative of bringing crypto back to the platform. Denier stated that Webull aims to offer as many different tokens and product types as possible, with a goal of 100 tokens by year-end being aspirational. He emphasized providing the tightest spreads and best trading experience for active, sophisticated users.

Brian Vieten inquired about Webull's future crypto listing strategy, specifically whether the company envisions listing more established crypto protocols or newer tokenized assets to achieve its goal of 100 listings by year-end.

Answer

Anthony Denier (Group President and U.S. CEO, Webull) stated that the fundamental goal is to offer customers the ability to trade as much as possible, aiming for 100 different tokens by year-end, though not committing to it. He emphasized offering a better experience and plans to lean into making Webull the best place to trade, implying a broad approach to listings.

Brian Vieten of Needham & Company asked about the expected growth trajectory for funded accounts in the APAC region following the new Singapore license and the geographic breakdown of the 40 million registered users.

Answer

CEO Yoni Assia clarified that the 40 million registered users is a cumulative figure since 2007. He stated that while Europe and the UK currently represent about 65% of the business, the company sees Asia (through its Singapore hub) and the U.S. as having the highest potential for future growth.

Brian Vieten of Needham & Company inquired about the growth trajectory for new funded accounts in the APAC region following the new Singapore license, and asked about the geographic composition of the 40 million registered users versus funded accounts.

Answer

CEO Yoni Assia explained that mature markets like Europe, the UK, and Australia show higher conversion rates from registered to funded accounts. He identified Asia (via Singapore) and the U.S. as significant growth opportunities that are expected to increase as a percentage of the business over time, complementing the current 65% concentration in the UK and Europe.

Brian Vieten from Needham & Company asked whether the strong Q2 commercial momentum represented a pull-forward of demand from the second half of the year and also inquired about the margin profile of recent card launches.

Answer

President & CEO Jonathan Wilk clarified that the Q2 results were not a pull-forward and that the company anticipates continued momentum, as reflected in the updated guidance. He attributed the significant gross margin expansion primarily to improved manufacturing efficiencies driven by the CompoSecure Operating System, rather than being solely dependent on the mix of new product launches.

Brian Vieten from Needham & Company asked about the outlook for the second half of the year, questioning if the strong Q2 results represented a pull-forward of demand. He also inquired about the margin profile of the newer card launches.

Answer

CEO Jonathan Wilk stated that the strong Q2 performance was not a pull-forward and that the company sees continued momentum through the rest of the year. He attributed the significant gross margin improvement to the broad impact of the CompoSecure Operating System across all functions, rather than the specific margin profile of any single new product.

Brian Vieten from Needham & Company asked about the investment required to secure power exclusivity, the duration of those rights, and the key geographies in the pipeline beyond Texas.

Answer

CEO Asher Genoot explained that exclusivity costs vary from a few hundred thousand dollars for land options to multi-million dollar investments that move a site into the 'development' category. He identified Louisiana, Chicago, Kansas, and the Pennsylvania/Ohio region as other key geographic areas of focus.

Brian Vieten of Needham & Company asked about the investment required to secure site exclusivity, the duration of these rights, and key geographies in the pipeline beyond Texas.

Answer

CEO Asher Genoot explained that costs for exclusivity vary from a few hundred thousand dollars for land options to multi-million dollar investments that move a site into active development. He identified Louisiana, Chicago, Kansas, and the Pennsylvania/Ohio region as other key areas of focus for development.