Webull’s Stock Gains Bullish New Analyst Coverage, Despite Q2 Losses

Webull Corporation (NASDAQ: BULL) is in the midst of conflicting signals, buoyed by positive analyst coverage while still grappling with the aftermath of a disappointing second-quarter earnings report. Despite a recent dip in the past month, the stock is seeing renewed interest.

The positive sentiment stems from Northland analyst Mike Grondahl initiating coverage of Webull with an “Outperform” rating and an $18 price target.

Grondahl's bullish stance emphasizes Webull's comprehensive suite of trading products, which includes stocks, ETFs, options, and cryptocurrencies. The platform's appeal to a younger, more sophisticated investor base, providing tools traditionally reserved for professionals, is a key factor driving the analyst's optimism. This endorsement arrives as the stock had dipped 8.96% in the past month, suggesting its potential for a rebound.

However, the company's Q2 2025 financial results, released on August 31, present a contrasting picture. Webull reported a net loss attributable to shareholders of $518.86 million, a stark increase from the $22.67 million loss in the same period the previous year.

This substantial loss was primarily attributed to a significant loss related to the fair value of ordinary shares issued to preferred shareholders. Despite a 46% increase in total revenues to $131.49 million, the market reacted negatively, with the stock price declining by 7.36% following the announcement.

In a strategic move to expand its market presence, Webull re-entered the cryptocurrency market in June by launching services in Brazil through a partnership with Coinbase. Brazilian users can now trade popular cryptocurrencies like Bitcoin, Ethereum, Solana, and Cardano directly within the Webull platform. 

Further bolstering its financial flexibility, Webull secured a $1 billion standby equity purchase agreement with Yorkville Advisors' investment fund YA II PN, Ltd. This three-year agreement allows Webull to issue Class A ordinary shares at its discretion, providing capital for growth initiatives such as product expansion and geographic diversification.

The conflicting signals, with positive analyst coverage juxtaposed against substantial Q2 losses, create a complex outlook for Webull. While Grondahl's “Outperform” rating suggests confidence in the platform's long-term potential, the company must address its profitability concerns to sustain investor confidence.