ebitda
40 pct
FY 2027
management target
WEALTHFRONT CORPORATION
Last · NASDAQ$10.45+0.35 (+3.47%)close · yahoo · 16h ago
Market cap$1.63B156.2M sh
P/E · TTM-10.7fwd 14.2 · eps -0.98 · loss
Beta—vs S&P 500
Div yield0.00%annual · TTM
52w range
$7.20$14.75
Volume3.0Msession
| Revenue | $371.7M |
|---|---|
| Operating income | $37.8M |
| Net income | $30.6M |
| Operating margin | 10.2% |
| Net margin | 8.2% |
| Return on equity | 4.9% |
| Period | TTM 2026-07-31 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Strong asset growth is offset by cash-management pressure, weaker profitability, and execution risk in newer products.
Hold: Wealthfront is compounding assets well, with platform assets up 12% to $99.0 billion, investment advisory assets up 30% to $54.1 billion, and $1.1 billion of quarterly net deposits.
But revenue grew only 1% as cash-management revenue fell 10%, while adjusted EBITDA margin fell to 41% from 49%; the product expansion is promising but the near-term earnings and deposit trajectory are not clean enough for a buy.
Themes
- Platform Assets
- Investment Advisory
- Cash Management
- Cross Product Adoption
- Home Lending
- Brokerage Launch
Near term
The October launch of the Wealthfront Brokerage Account could improve self-directed asset consolidation, but management provided no quantified inflow target.
Cross-product incentives have produced roughly 7,500 new account openings and better adoption, but management warned that successful incentives can pressure fee rates and client acquisition costs.
Cash net deposits improved in July and August, yet the 2023 and 2024 cohorts remain weaker and September tax payments may distort deposit trends.
Home Lending is expanding across states, but higher rates and tighter housing affordability remain volume headwinds while the business is still absorbing investment costs.
Longer term
Investment advisory assets and revenue are scaling faster than the legacy cash business, supporting a broader wealth-management relationship as clients accumulate assets.
The family-account, brokerage, mortgage, and AI roadmap could raise client wallet share, but each product requires execution and additional investment before its economics are proven.
Management targets a long-term adjusted EBITDA margin above 40%, relying on automation and greater scale after near-term Home Lending investment.
Red flags
Total revenue growth of 1% masked a 10% decline in cash-management revenue, and adjusted EBITDA fell 15% year over year with margin down eight percentage points.
Cash-management assets declined 4% year over year, while the company is using incentives to repair cross-product adoption in the 2023 and 2024 cohorts.
The call gave no quantified Home Lending volume, profitability, or payback targets despite continued product-development spending.
The AI initiative is only a selective client test, with no evidence yet of adoption, monetization, or reliability at scale.
Forward outlook
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-04-24
- Platform Asset Growth
- Net Deposit Slowdown
- Ipo Sbc
- Dilution Risk
- Interest Rate Sensitivity
- Mortgage Credit Risk
- Regulatory Risk
Red flags
- Net deposits declined 62% year over year to $6.7 billion from $17.7 billion, a material deterioration in the primary organic-growth metric despite 17% platform-asset growth.
- GAAP net loss attributable to common stockholders was $42.1 million, or $(0.74) per basic share, versus $194.4 million of net income in FY2025; the filing says profitability has not yet been sustained.
- The IPO created substantial potential dilution: 1.95 million common-stock warrants were outstanding at January 31, 2026, while 23.8 million options and 15.7 million dual-trigger RSUs were excluded from diluted EPS as antidilutive.
- Mortgage liquidity depends on a limited number of loan purchasers or aggregators; a reduction in their acquisitions could force Wealthfront to retain loans longer, increasing credit, interest-rate, and funding exposure.
- The company had no management assessment or auditor attestation of internal control over financial reporting because of the SEC transition period for newly public companies.
Earnings transcripts
Press & signals
- GlobeNewswire
Wealthfront Reports September 2026 Monthly Metrics
- GlobeNewswire
Wealthfront Reports Fiscal Second Quarter 2027 Results