Originaltext
Diese Übersetzung bewerten
Mit deinem Feedback können wir Google Übersetzer weiter verbessern
Home
Wealthfront Corporation Common Stock
Wealthfront Reports Fiscal Fourth Quarter and Full Year 2026 Results
Business
Mar 11 2026
24 min read

Wealthfront Reports Fiscal Fourth Quarter and Full Year 2026 Results

news images

Record annual revenue of $365.0 million in the fiscal year ending January 31, 2026,
including a quarterly record of $96.1 million in the fiscal fourth quarter ending January 31, 2026
Total Platform Assets up 17% year-over-year to a record $94.1 billion

PALO ALTO, Calif., March 11, 2026 (GLOBE NEWSWIRE) -- Wealthfront Corporation (Nasdaq: WLTH), a tech-driven financial platform helping digital natives turn their savings into wealth, announced financial results for its fiscal fourth quarter and full year ended January 31, 2026.

David Fortunato - CEO, President & Director: “We capped off a milestone year in the fourth quarter as we went public and drove another quarter-end record in Total Platform Assets due in large part to a second consecutive record quarter in net cross account transfers from Cash Management to Investment Advisory. We continued to expand our product suite in our effort to optimize client financial outcomes including with the launch of early access to Wealthfront Home Lending, the initial rollout of the Wealthfront Treasury Money Market Fund, and further enhancements to our core Investment Advisory and Cash Management offerings.”

Alan Imberman - CFO & Treasurer: “Fiscal 2026 was a banner year in which we drove record Platform Assets, Revenue, and Adjusted EBITDA contributing to strong cash generation that resulted in corporate cash balances ending January above $440 million. Fiscal 2027 is off to a strong start with total net deposit growth in February amidst a dynamic macro-environment. In March, our board of directors authorized a $100 million share repurchase program. Given the multi-decade opportunity to compound wealth with new and existing clients, we view our shares as attractive at current levels.”

Fiscal Fourth Quarter and Full Year 2026 Results Summary

 

Three Months Ended January 31,

 

 

 

Twelve Months Ended January 31,

 

 

 

($ in thousands, except per share amounts)

 

2026

 

 

 

2025

 

 

% change

 

 

2026

 

 

 

2025

 

 

% change

 

GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

$

96,136

 

 

$

82,680

 

 

16%

 

 

$

364,993

 

 

$

308,859

 

 

18

%

 

Net income (loss) - diluted

 

(134,774

)

 

 

32,092

 

 

NM

 

 

 

(43,203

)

 

 

181,752

 

 

NM

 

 

Net income margin - diluted (%)

 

(140

)%

 

 

39

%

 

 

 

 

(12

)%

 

 

59

%

 

 

 

Diluted earnings per common share

$

(1.31

)

 

$

0.23

 

 

NM

 

 

$

(0.76

)

 

$

1.31

 

 

NM

 

 

Net cash provided by operating activities

 

33,306

 

 

 

19,915

 

 

67

 

 

 

152,189

 

 

 

123,150

 

 

24

%

 

Operating cash flow conversion (%)

 

NM

 

 

 

62

%

 

 

 

 

 

NM

 

 

 

63

%

 

 

 

 

Non-GAAP1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

44,210

 

 

$

36,202

 

 

22

%

 

$

170,688

 

 

$

142,688

 

 

20

%

 

Adjusted EBITDA margin (%)

 

46

%

 

 

44

%

 

 

 

 

 

47

 %

 

 

46

%

 

 

 

 

Free cash flow

 

32,998

 

 

 

18,969

 

 

74

%

 

 

151,051

 

 

 

117,307

 

 

29

%

 

Free cash flow conversion (%)

 

75

%

 

 

52

%

 

 

 

 

 

88

 %

 

 

82

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Non-GAAP measure. Wealthfront’s reasons for use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document in the section labeled ‘Non-GAAP Reconciliations’.

F4Q26 Financial Highlights

  • Quarterly total revenue of $96.1 million increased 16% year-over-year primarily driven by a 17% year-over-year increase in Total Platform Assets to $94.1 billion. This includes Investment Advisory Assets of $48.7 billion, which were up 29% year-over-year and Cash Management Assets of $45.4 billion, which were up 7% year-over-year. Change in Total Platform Assets included Total Net Deposits of $6.7 billion in the year and $(360) million in the quarter.

  • Funded Clients of 1.42 million grew 17% year-over-year. Funded Accounts of 1.84 million grew 16% year-over-year.

  • GAAP expenses of $310.7 million compared to $51.8 million in the prior year quarter, with the increase due primarily to higher stock-based compensation (SBC) expense primarily tied to one-time, IPO-related SBC expense of $239.0 million. Adjusted operating expenses of $57.1 million increased 15% year-over-year due to higher product development expense, partially offset by lower marketing expense.

  • GAAP diluted net income (loss) of $(134.8) million compared to $32.1 million in the prior year quarter with the decline due to higher GAAP expenses primarily tied to one-time, IPO-related SBC expense of $239.0 million. GAAP diluted net income margin was (140)%, compared to 39% in the prior year quarter with the decrease primarily driven by one-time, IPO-related SBC expense.

  • GAAP diluted EPS was $(1.31) compared to $0.23 in the prior year quarter driven primarily by one-time, IPO-related SBC expense.

  • Adjusted EBITDA1 of $44.2 million grew 22% year-over-year. Adjusted EBITDA margin1 was 46%, compared to 44% for the prior year quarter. We expect Adjusted EBITDA margins to decline sequentially but remain above 40% for the fiscal first quarter 2027.

  • Net cash provided by operating activities was $33.3 million and Free cash flow1 was $33.0 million. Free cash flow conversion ratio1 was 75% for the three months ended January 31, 2026 and 88% in the twelve months ended January 31, 2026.

F2026 Financial Highlights

  • Annual total revenue of $365.0 million increased 18% year-over-year.

  • Annual GAAP expenses of $476.2 million compared to $187.4 million in the prior year with the increase due to higher SBC expense primarily tied to one-time, IPO-related SBC expense of $239.0 million. Annual adjusted operating expenses of $211.1 million increased 19% year-over-year due to higher product development and general & administrative expense, partially offset by lower marketing expense.

  • Annual GAAP diluted net income (loss) of $(43.2) million compared to $181.8 million in the prior year due to the one-time impact of IPO-related SBC expense of $239.0 million. Annual GAAP diluted net income margin was (12)%, compared to 59% in the prior year with the decrease primarily driven by the same factors.

  • Annual GAAP diluted EPS was $(0.76) down year-over-year compared to $1.31 in the prior year due primarily to the one-time impact of IPO-related SBC expense.

  • Annual adjusted EBITDA1 of $170.7 million grew 20% year-over-year. Annual adjusted EBITDA margin1 was 47%, compared to 46% for the twelve months ended January 31, 2025.

F4Q26 Business Highlights

  • Generated a second consecutive record quarter of net cross account transfers from Cash Management to Investment Advisory amidst a Cash-to-Invest transition environment. This helped drive annualized organic growth2 in Investment Advisory to 11% in the quarter, with monthly annualized organic growth accelerating throughout the period, ending at 15% in January.

  • Increased the base Annual Percentage Yield (APY) on the Wealthfront Cash Account by five basis points to 3.30% effective January 30, 2026, as a result of the effective federal funds rate (EFFR) stabilizing at a higher rate within its target range. This industry-leading APY reflects the company’s ongoing commitment to sharing structural efficiencies and higher yields directly with its clients, further bolstering the value proposition of the Wealthfront Cash Account as the primary home for digital native clients' uninvested cash and savings.

  • Launched early access to Wealthfront Home Lending, which is intended to deliver a digitally seamless home mortgage experience with low, transparent rates and no hidden fees. The company began a measured rollout to clients in November, starting in Colorado and having since expanded to Texas and California, with a full rollout in those states as well as early access in additional states expected to come later this year.

  • Rolled out the Wealthfront Treasury Money Market Fund (WLTXX), a proprietary fund intended to improve after-tax returns through a low-risk, highly liquid investment vehicle and offered at a competitive 0.25% expense ratio. The fund invests primarily in U.S. Treasury securities, offering clients a Cash Management option whose interest is generally exempt from state and local taxes. The fund was initially released to select clients in December with a full rollout scheduled to be completed in March.

  • Took further steps in making the Wealthfront Cash account the best cash account experience for young professional savers including the introduction of a comprehensive transaction search function, real-time debit card notifications for both individual and joint accounts, and increased daily withdrawal limits up to $1 million for qualified clients. The company also bolstered the interoperability of the Cash Management and Investment Advisory accounts, including the introduction of auto dividend sweeps from Investment Advisory accounts to Cash Management accounts.

1 Non-GAAP measure. Wealthfront’s reasons for use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document in the section labeled ‘Non-GAAP Reconciliations’.
2 Annualized organic growth is calculated as total net deposits in a given period, multiplied by an annualization factor based on actual day counts in that period, divided by prior period ending assets.

Conference Call

Wealthfront’s executive management team will host a live audio webcast beginning at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) today to discuss the quarter and full-year’s financial results and business highlights. The live webcast as well as the earnings press release and earnings presentation can be found at https://ir.wealthfront.com. Following the call, a replay of the webcast will be available on the Wealthfront Investor Relations website.

About Wealthfront

Wealthfront is a tech-driven financial platform helping digital natives turn their savings into wealth. Since pioneering the automated investing category in 2011, the company has grown into a leading consumer fintech that helps clients achieve their financial goals with innovative saving, investing, borrowing, and lending products. Wealthfront’s expanding suite of high-quality, low-cost offerings helps digital natives earn more on their savings, borrow at lower rates, and keep more of their returns. To learn more and get started, visit www.wealthfront.com or download the Wealthfront app.

Contacts

Investors: ir@wealthfront.com

Press: press@wealthfront.com

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements contained in this press release other than statements of historical fact, including statements regarding Wealthfront’s future operating results and financial condition, its business strategy and plans, market growth, and its objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “target,” “plan,” “expect,” and similar expressions are intended to identify forward-looking statements.

These forward-looking statements are made as of the date they were first issued and are based on information available to Wealthfront together with Wealthfront’s expectations, estimates, forecasts, projections, beliefs, and assumptions as of such date. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Wealthfront’s control. Wealthfront’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors. Further information on potential risks that could affect actual results is included in Wealthfront’s most recent filings with the Securities and Exchange Commission (the “SEC”), including in our most recent Form 10-Q, copies of which may be obtained by visiting Wealthfront’s Investor Relations website at https://ir.wealthfront.com or the SEC's website at https://www.sec.gov. Past performance is not necessarily indicative of future results. Wealthfront undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Forward-looking statements should not be relied upon as representing Wealthfront’s views as of any date subsequent to the date of this press release.

Additional Information

We announce material information to the public through filings with the SEC, the investor relations page on our website (ir.wealthfront.com), press releases, public conference calls, public webcasts, and our social media accounts on X, Instagram, Facebook, and LinkedIn in order to achieve broad, non-exclusionary distribution of information to the public and for complying with our disclosure obligations under Regulation FD.

The content of our websites and information that we may post on or provide to online and social media channels, including those mentioned above, and information that can be accessed through our websites or these online and social media channels are not incorporated by reference into this presentation or in any report or document we file with the SEC, and any references to our websites or these online and social media channels are intended to be inactive textual references only.

Non-GAAP Financial Measures

We collect and analyze operating and financial data to evaluate the health of our business, allocate our resources, and assess our performance. In addition to total revenue, net income (loss) and other results under GAAP, we utilize non-GAAP calculations of adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”). Adjusted EBITDA is defined as net income (loss), excluding: (i) interest expenses, (ii) provision for (benefit from) income taxes, (iii) depreciation and amortization, (iv) stock-based compensation expense, (v) change in fair value of the convertible note, warrant liabilities, and SAFEs, and (vi) nonrecurring expenses, if any. The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount and timing of these items is unpredictable, are not driven by core results of operations and render comparisons with prior periods and competitors less meaningful. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. We believe Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Moreover, we have included Adjusted EBITDA and Adjusted EBITDA Margin in this press release because they are key measurements used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, identify trends affecting our business and perform strategic planning and annual budgeting. Free Cash Flow reflects net cash provided from operating activities, less (i) purchases of property, software, and equipment and (ii) capitalized internally developed software. We believe Free Cash Flow allows investors to evaluate the cash generated from our underlying operations in a manner similar to the method used by management. However, the utility of Free Cash Flow as a measure of our liquidity is limited as it does not represent the total increase or decrease in our cash balance for a given period. Free Cash Flow Conversion reflects 1) Free Cash Flow divided by 2) Adjusted EBITDA. Adjusted Operating Expenses reflect GAAP operating expenses, less (i) stock-based compensation expense and (ii) nonrecurring expenses, if any. The above items are excluded from our Adjusted Operating Expenses because these items are non-cash in nature, or because the amount and timing of these items is unpredictable, are not driven by core results of operations and render comparisons with prior periods and competitors less meaningful. Please refer to the Appendix for a reconciliation of each non-GAAP financial measure presented herein to the most directly comparable financial measure stated in accordance with GAAP.

Key Business Metrics

Platform assets: We define “platform assets” as the total value of financial assets held by clients in their accounts as of a stated date on our platform. Net deposits and changes in value attributable to financial market performance are included in the change in platform assets in any given period. We further break down platform assets into two categories of products: cash management and investment advisory.

Net deposits: We define “net deposits” as the value of all assets clients have placed into products on our platform, net of withdrawals, over a defined period of time. We exclude changes in value attributable to financial market performance from this metric. We view net deposits as an important barometer of our ability to scale and grow organically and accumulate assets onto our platform. We view the relevant metric as net deposits on a platform-wide basis, not by individual product. Although net deposits can vary by product based on the economic environment, total net deposits provides a more comprehensive view of our growth because our platform offers diverse financial products that are designed to perform under a wide range of economic conditions, allowing the business to maintain resilience and increase total platform assets across market cycles and through extraordinary events.

Funded clients: We define “funded clients” as clients with balances greater than zero or that have been greater than zero on at least one occasion during the 45 consecutive calendar days ending as of the measurement date. Funded clients include clients with a zero balance across all accounts as of the measurement date if they had greater than zero balances in at least one account within 45 calendar days prior to the measurement date. Individuals who shared funded joint accounts are each considered to be a separate funded client. The number of funded clients is as of a stated date and reflects our scale and monetization potential.

Funded accounts: We define “funded accounts” as accounts with balances greater than zero or that have been greater than zero on at least one occasion during the 45 consecutive calendar days ending as of the measurement date. Funded accounts include accounts with a zero balance as of the measurement date if they had greater than zero balances within 45 calendar days prior to the measurement date. A shared funded joint account is considered a single funded account. The number of funded accounts is as of a stated date and reflects our scale and monetization potential.

WEALTHFRONT CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

 

($ in thousands)

January 31, 2026

 

January 31, 2025

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

440,805

 

 

$

142,860

 

Cash segregated and on deposit for regulatory purposes

 

10,375

 

 

 

9,083

 

Due from clients

 

227,413

 

 

 

118,518

 

Accounts receivable

 

33,127

 

 

 

29,127

 

Client-held fractional shares

 

514,877

 

 

 

28,057

 

Other current assets

 

49,187

 

 

 

18,805

 

Total current assets

 

1,275,784

 

 

 

346,450

 

Deferred tax assets, net

 

119,749

 

 

 

60,194

 

Operating lease right-of-use asset

 

8,696

 

 

 

11,229

 

Property, software, and equipment, net

 

7,755

 

 

 

14,723

 

Other noncurrent assets

 

3,745

 

 

 

2,610

 

Total assets

$

1,415,729

 

 

$

435,206

 

Liabilities, redeemable convertible preferred stock, and stockholders’ equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

 

7,299

 

 

 

6,467

 

Accrued liabilities

 

8,830

 

 

 

7,517

 

Due to clients

 

30,209

 

 

 

9,452

 

Payable to clearing broker

 

227,439

 

 

 

118,174

 

Current portion of operating lease liabilities

 

4,101

 

 

 

3,556

 

Fractional shares repurchase obligation

 

514,877

 

 

 

28,057

 

Total current liabilities

 

792,755

 

 

 

173,223

 

Operating lease liabilities, net of current portion

 

6,292

 

 

 

9,796

 

Other noncurrent liabilities

 

1,993

 

 

 

9,651

 

Total liabilities

$

801,040

 

 

$

192,670

 

Commitments and contingencies

 

 

 

Redeemable convertible preferred stock, $0.0001 par value per share; 0 and 85,490,483 shares authorized as of January 31, 2026 and January 31, 2025, respectively; 0 and 69,914,359 shares issued and outstanding as of January 31, 2026 and January 31, 2025, respectively; aggregate liquidation preference of $0 and $229,543 as of January 31, 2026 and January 31, 2025, respectively

 

 

 

 

227,198

 

Stockholders’ equity:

 

 

 

Common stock, $0.0001 par value per share; 214,611,134 shares authorized as of January 31, 2026 and January 31, 2025; 152,118,527 and 41,532,599 shares issued as of January 31, 2026 and January 31, 2025; 150,645,067 and 40,110,106 shares outstanding as of January 31, 2026 and January 31, 2025, respectively

 

12

 

 

 

4

 

Treasury stock, at cost; 1,473,460 and 1,422,493 shares held as of January 31, 2026 and January 31, 2025, respectively

 

(13,052

)

 

 

(12,593

)

Additional paid-in capital

 

769,730

 

 

 

127,862

 

Accumulated deficit

 

(142,001

)

 

 

(99,935

)

Total stockholders’ equity

$

614,689

 

 

$

15,338

 

Total liabilities, redeemable convertible preferred stock, and stockholders’ equity

$

1,415,729

 

 

$

435,206

 

 

 

 

 

 

 

 

 


WEALTHFRONT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

 

 

Three Months Ended
January 31,

 

Twelve Months Ended
January 31,

($ in thousands)

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

Revenue:

 

 

 

 

 

 

 

Cash management

$

69,749

 

 

$

62,056

 

 

$

271,700

 

 

$

230,946

 

Investment advisory

 

25,803

 

 

 

19,632

 

 

 

91,899

 

 

 

73,045

 

Other revenue

 

584

 

 

 

992

 

 

 

1,394

 

 

 

4,868

 

Total revenue

 

96,136

 

 

 

82,680

 

 

 

364,993

 

 

 

308,859

 

Costs and operating expenses:

 

 

 

 

 

 

 

Cost of revenue

 

9,574

 

 

 

8,543

 

 

 

38,007

 

 

 

30,964

 

Product development

 

150,056

 

 

 

18,085

 

 

 

212,437

 

 

 

64,515

 

General and administrative

 

114,984

 

 

 

7,841

 

 

 

149,128

 

 

 

29,092

 

Marketing

 

20,240

 

 

 

14,475

 

 

 

51,755

 

 

 

52,196

 

Operations and support

 

15,802

 

 

 

2,839

 

 

 

24,836

 

 

 

10,619

 

Total costs and operating expenses

 

310,656

 

 

 

51,783

 

 

 

476,163

 

 

 

187,386

 

Interest expense

 

508

 

 

 

253

 

 

 

891

 

 

 

2,810

 

Other income, net

 

(5,053

)

 

 

(812

)

 

 

(10,813

)

 

 

(20,566

)

Income before income taxes

 

(209,975

)

 

 

31,456

 

 

 

(101,248

)

 

 

139,229

 

Provision for (benefit from) income taxes

 

(76,320

)

 

 

(636

)

 

 

(59,182

)

 

 

(55,218

)

Net income (loss)

$

(133,655

)

 

$

32,092

 

 

$

(42,066

)

 

$

194,447

 

Net income (loss) attributable to common shareholders:

 

 

 

 

 

 

 

Net income (loss) attributable to common stockholders, basic

$

(133,655

)

 

$

32,092

 

 

$

(42,066

)

 

$

194,447

 

Net income (loss) attributable to common stockholders, dilutive

$

(134,774

)

 

$

32,092

 

 

$

(43,203

)

 

$

181,752

 

Earnings per share (EPS):

 

 

 

 

 

 

 

Basic

$

(1.30

)

 

$

0.82

 

 

$

(0.74

)

 

$

4.99

 

Diluted

$

(1.31

)

 

$

0.23

 

 

$

(0.76

)

 

$

1.31

 

Weighted-average shares outstanding used in computing EPS:

 

 

 

 

 

 

 

Basic

 

102,601,387

 

 

 

39,108,339

 

 

 

56,694,634

 

 

 

38,990,556

 

Diluted

 

102,830,296

 

 

 

137,775,723

 

 

 

56,937,428

 

 

 

138,660,318

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-Based Compensation by Type

 

Three Months Ended
January 31,

 

Twelve Months Ended
January 31,

($ in thousands)

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

 

 

 

 

 

 

 

 

 

 

Product development

$

124,266

 

 

$

1,632

 

 

$

127,414

 

 

$

7,325

 

General and administrative

 

102,992

 

 

 

419

 

 

 

110,677

 

 

 

2,041

 

Marketing

 

8,242

 

 

 

109

 

 

 

8,472

 

 

 

536

 

Operations and support

 

12,788

 

 

 

239

 

 

 

13,261

 

 

 

1,099

 

Stock-based compensation expense, net of amounts capitalized

 

248,288

 

 

 

2,399

 

 

 

259,824

 

 

 

11,001

 

Capitalized stock-based compensation expense

 

 

 

 

(279

)

 

 

 

 

 

(1,637

)

Total stock-based compensation expense

$

248,288

 

 

$

2,120

 

 

$

259,824

 

 

$

9,364

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


WEALTHFRONT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

 

 

Three Months Ended
January 31,

 

Twelve Months Ended
January 31,

($ in thousands)

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

Operating activities

 

 

 

 

 

 

 

Net income (loss)

$

(133,655

)

 

$

32,092

 

 

$

(42,066

)

 

$

194,447

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization of property, software, and equipment, net

 

1,829

 

 

 

1,779

 

 

 

7,397

 

 

 

6,236

 

Non-cash lease expense

 

859

 

 

 

783

 

 

 

3,280

 

 

 

3,066

 

Cash interest paid on convertible note

 

 

 

 

 

 

 

 

 

 

(904

)

Cash interest expense on related-party long-term debt

 

 

 

 

(6,193

)

 

 

 

 

 

(6,193

)

Non-cash interest expense on related-party long-term debt

 

 

 

 

171

 

 

 

 

 

 

2,272

 

Deferred income taxes

 

(74,049

)

 

 

(660

)

 

 

(59,555

)

 

 

(60,194

)

Stock-based compensation expense

 

248,288

 

 

 

2,120

 

 

 

259,824

 

 

 

9,364

 

Impairment of internally developed software

 

 

 

 

 

 

 

709

 

 

 

 

Change in fair value of convertible note

 

 

 

 

 

 

 

 

 

 

(16,927

)

Change in fair value of warrant liabilities

 

(1,494

)

 

 

220

 

 

 

(1,517

)

 

 

678

 

Change in fair value of simple agreement for future equity

 

(219

)

 

 

374

 

 

 

66

 

 

 

1,298

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Due from clients

 

(36,343

)

 

 

(23,210

)

 

 

(108,895

)

 

 

(49,052

)

Accounts receivable

 

(1,056

)

 

 

(1,647

)

 

 

(4,000

)

 

 

(8,946

)

Other current and noncurrent assets

 

(18,144

)

 

 

(5,586

)

 

 

(31,517

)

 

 

(9,890

)

Accounts payable

 

(2,294

)

 

 

29

 

 

 

832

 

 

 

3,287

 

Accrued liabilities

 

(3,547

)

 

 

(3,343

)

 

 

1,313

 

 

 

2,116

 

Due to clients

 

17,796

 

 

 

823

 

 

 

20,757

 

 

 

7,127

 

Payable to clearing broker

 

36,313

 

 

 

23,037

 

 

 

109,265

 

 

 

48,761

 

Lease liabilities

 

(979

)

 

 

(874

)

 

 

(3,705

)

 

 

(3,396

)

Net cash provided by operating activities

$

33,306

 

 

$

19,915

 

 

$

152,189

 

 

$

123,150

 

Investing activities

 

 

 

 

 

 

 

Purchases of property, software, and equipment

 

(308

)

 

 

(31

)

 

 

(1,138

)

 

 

(533

)

Capitalized internally developed software

 

 

 

 

(915

)

 

 

 

 

 

(5,310

)

Net cash used in investing activities

$

(308

)

 

$

(946

)

 

$

(1,138

)

 

$

(5,843

)

Financing activities

 

 

 

 

 

 

 

Repayment of convertible note

 

 

 

 

 

 

 

 

 

 

(29,122

)

Principal repayment of related-party long-term debt

 

 

 

 

(20,000

)

 

 

 

 

 

(20,000

)

Proceeds from draw on credit facility

 

(200,000

)

 

 

 

 

 

(200,000

)

 

 

 

Repayment of draw on credit facility

 

200,000

 

 

 

 

 

 

200,000

 

 

 

 

Taxes paid related to net shares of settlement of equity awards in connection with IPO

 

(136,855

)

 

 

 

 

 

(136,855

)

 

 

 

Proceeds from issuance of common stock

 

282,222

 

 

 

 

 

 

282,222

 

 

 

 

Equity issuance costs

 

(9,162

)

 

 

 

 

 

(9,162

)

 

 

 

Proceeds from exercise of stock options, including early exercises

 

5,278

 

 

 

2,626

 

 

 

12,439

 

 

 

4,919

 

Repurchase of common stock

 

(194

)

 

 

(13,555

)

 

 

(459

)

 

 

(37,037

)

Proceeds from issuance of treasury stock

 

 

 

 

22,694

 

 

 

 

 

 

22,694

 

Net cash provided by (used in) financing activities

$

141,290

 

 

$

(8,235

)

 

$

148,186

 

 

$

(58,546

)

Net increase in cash and cash equivalents, cash segregated and on deposit for regulatory purposes, and restricted cash

 

174,288

 

 

$

10,734

 

 

 

299,237

 

 

 

58,761

 

Cash and cash equivalents, cash segregated and on deposit for regulatory purposes, and restricted cash at the beginning of the period

 

279,502

 

 

 

143,819

 

 

 

154,553

 

 

 

95,792

 

Cash and cash equivalents, cash segregated and on deposit for regulatory purposes, and restricted cash at the end of the period

$

453,790

 

 

$

154,553

 

 

$

453,790

 

 

$

154,553

 

 

 

 

 

 

 

 

 


WEALTHFRONT CORPORATION
KEY BUSINESS METRICS

 

TOTAL

As of or for the
Three Months Ended
January 31,

 

As of or for the
Twelve Months Ended
January 31,

(in $ millions unless otherwise noted)

 

2026

 

 

 

2025

 

 

2026

 

 

2025

Platform assets

$

94,106

 

 

$

80,175

 

$

94,106

 

$

80,175

Cash management

 

45,361

 

 

 

42,411

 

 

45,361

 

 

42,411

Investment advisory

 

48,745

 

 

 

37,764

 

 

48,745

 

 

37,764

 

 

 

 

 

 

 

 

Net deposits

$

(360

)

 

$

2,667

 

$

6,659

 

$

17,714

 

 

 

 

 

 

 

 

Funded clients (# in thousands)

 

1,417

 

 

 

1,212

 

 

1,417

 

 

1,212

Funded accounts (# in thousands)

 

1,843

 

 

 

1,584

 

 

1,843

 

 

1,584

 

 

 

 

 

 

 

 

 

 

 

 

 


CASH MANAGEMENT

As of or for the
Three Months Ended
January 31,

 

As of or for the
Twelve Months Ended
January 31,

(in $ millions unless otherwise noted)

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

Cash management assets (off-balance sheet), beginning of the period

$

47,011

 

 

$

41,400

 

 

$

42,411

 

 

$

29,361

 

Cash management assets (off-balance sheet), end of the period

 

45,360

 

 

 

42,411

 

 

 

45,360

 

 

 

42,411

 

Average1

 

46,185

 

 

 

41,906

 

 

 

43,886

 

 

 

35,886

 

 

 

 

 

 

 

 

 

Cash management revenue

$

69.7

 

 

$

62.1

 

 

$

271.7

 

 

$

230.9

 

 

 

 

 

 

 

 

 

Annualized cash management fee rate (in %)2

 

0.60

%

 

 

0.59

%

 

 

0.62

%

 

 

0.64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


INVESTMENT ADVISORY

As of or for the
Three Months Ended
January 31,

 

As of or for the
Twelve Months Ended
January 31,

(in $ millions unless otherwise noted)

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

Investment advisory assets (off-balance sheet),
beginning of the period

$

45,811

 

 

$

35,096

 

 

$

37,764

 

 

$

28,240

 

Investment advisory assets (off-balance sheet), end of the period

 

48,745

 

 

 

37,764

 

 

 

48,745

 

 

 

37,764

 

Average1

 

47,278

 

 

 

36,430

 

 

 

43,255

 

 

 

33,002

 

 

 

 

 

 

 

 

 

Investment advisory revenue

$

25.8

 

 

$

19.6

 

 

$

91.9

 

 

$

73.0

 

 

 

 

 

 

 

 

 

Annualized investment advisory fee rate (in %)2

 

0.22

%

 

 

0.21

%

 

 

0.21

%

 

 

0.22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Average balance rows represent the average of the beginning of period and end of period balances.
2 Annualized cash management fee rate and Annualized investment advisory fee rate is calculated by annualizing revenue for the given period and dividing by the simple average asset balance presented.


WEALTHFRONT CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(UNAUDITED)

 

The following tables present reconciliations of GAAP to non-GAAP measures disclosed within this document.

Adjusted Operating Expenses

 

Three Months Ended
January 31,

 

 

Twelve Months Ended
January 31,

 

($ in thousands)

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

GAAP operating expenses

$

310,656

 

 

$

51,783

 

 

$

476,163

 

 

$

187,386

 

Less: Stock-based compensation expense

 

248,288

 

 

 

2,120

 

 

 

259,824

 

 

 

9,364

 

Less: Employer payroll taxes on IPO-triggered vesting of equity awards

 

5,275

 

 

 

 

 

 

5,275

 

 

 

 

Adjusted operating expenses

$

57,093

 

 

$

49,663

 

 

$

211,064

 

 

$

178,022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA & Adjusted EBITDA Margin

 

Three Months Ended
January 31,

 

Twelve Months Ended
January 31,

($ in thousands)

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

Net income (loss)

$

(133,655

)

 

$

32,092

 

 

$

(42,066

)

 

$

194,447

 

Net income margin

(139)%

 

 

39

%

 

(12)%

 

 

63

%

Add:

 

 

 

 

 

 

 

Interest expense

 

508

 

 

 

253

 

 

 

891

 

 

 

2,810

 

Provision for (benefit from) income taxes

 

(76,320

)

 

 

(636

)

 

 

(59,182

)

 

 

(55,218

)

Depreciation and amortization of property, software, and equipment, net

 

1,829

 

 

 

1,779

 

 

 

7,397

 

 

 

6,236

 

EBITDA (non-GAAP)

 

(207,638

)

 

 

33,488

 

 

 

(92,960

)

 

 

148,275

 

Stock-based compensation expense

 

248,285

 

 

 

2,120

 

 

 

259,824

 

 

 

9,364

 

Change in fair value of convertible note, warrant liabilities, and SAFEs

 

(1,712

)

 

 

594

 

 

 

(1,450

)

 

 

(14,951

)

Employer payroll taxes on IPO-triggered vesting of equity awards

 

5,275

 

 

 

 

 

 

5,275

 

 

 

 

Adjusted EBITDA (non-GAAP)

$

44,210

 

 

$

36,202

 

 

$

170,688

 

 

$

142,688

 

Adjusted EBITDA Margin (non-GAAP)

 

46

%

 

 

44

%

 

 

47

%

 

 

46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free Cash Flow & Free Cash Flow Conversion

 

Three Months Ended
January 31,

 

Twelve Months Ended
January 31,

(in thousands)

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

Net cash provided by operating activities

$

33,306

 

 

$

19,915

 

 

$

152,189

 

 

$

123,150

 

Divided by: Net income (loss)

 

(133,655

)

 

 

32,092

 

 

 

(42,066

)

 

 

194,447

 

Operating cash flow conversion

NM

 

 

62

%

 

NM

 

 

63

%

 

 

 

 

 

 

 

 

Net cash provided by operating activities

$

33,306

 

 

$

19,915

 

 

$

152,189

 

 

$

123,150

 

Less: Capital expenditures

 

(308

)

 

 

(946

)

 

 

(1,138

)

 

 

(5,843

)

Free cash flow

$

32,998

 

 

$

18,969

 

 

$

151,051

 

 

$

117,307

 

Divided by: Adjusted EBITDA (non-GAAP)

 

44,210

 

 

 

36,202

 

 

 

170,688

 

 

 

142,688

 

Free cash flow conversion

 

75

%

 

 

52

%

 

 

88

%

 

 

82

%