Webull Cuts Price Target to $12, Cites 81% Marketing Spend Surge
Webull’s Q4 2025 revenue rose to $165.2 million—beating consensus—and trading volumes reached $239 billion, but operating expenses surged to $143.6 million as marketing spend jumped 81% to $53.3 million. Rosenblatt cut its 12-month price target to $12 from $15—implying about 100% upside—on expectations marketing expenses will decline in Q1 2026.
1. Q4 2025 Financial Results
Webull delivered Q4 2025 revenue of $165.2 million, topping Rosenblatt’s $162.7 million estimate and Street consensus of $150.9 million. Daily average revenue trades hit 1.2 million, equity notional volumes climbed to $239 billion, and trading revenue reached $112.5 million.
2. Marketing Spend and Profit Impact
Operating expenses surged to $143.6 million versus Rosenblatt’s $122.8 million estimate, driven by an 81% quarter-over-quarter increase in marketing and branding spend to $53.3 million. Management framed the blitz as a performance-based push after record $3.9 billion in quarterly net deposits and expects marketing to decline materially in Q1 2026.
3. Revised Price Target and Upside Outlook
Analyst Chris Brendler reaffirmed a Buy rating but cut the 12-month price target to $12 from $15, valuing shares at 20× 2027 adjusted EBITDA versus 25× previously. At a closing price of $6.07, the new target implies roughly 100% upside as marketing expenses normalize.
4. Strategic Initiatives and User Engagement
CEO Anthony Denier emphasizes Webull’s focus on serious self-directed investors through an institutional-grade, mobile-first platform. Growth in prediction markets, crypto trading, premium subscriptions and international users underpins expectations for enhanced engagement and long-term leverage.