Wealthfront CorporationNASDAQ: WLTH

Wealthfront Reports Fiscal Third Quarter 2026 Results with Record Total Revenue of $93.2 Million and Net Income of $30.9 Million

Revenue up 16% to a record $93.2 million
Net income of $30.9 million with a Net income margin of 33%

Total Platform Assets up 21% to a record $92.8 billion
Adjusted EBITDA1 up 24% to $43.8 million with an Adjusted EBITDA margin1 of 47%

PALO ALTO, Calif., Jan. 12, 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 third quarter ended October 31, 2025.

David Fortunato - CEO, President & Director: “We continued to execute in our core business driving Platform Assets to a record at quarter-end amidst a dynamic macro environment. This included the best quarter in net cross account transfers from Cash Management to Investment Advisory in the company’s history. We achieved this while accelerating the pace of product innovation including the launch of Nasdaq-100 Direct and the origination of our first home mortgage.”

Alan Imberman - CFO & Treasurer: “Our fiscal third quarter results highlighted the purposeful balance of the business model between Cash Management and Investment Advisory. We drove profitable growth and another quarter of strong free cash flow generation, while also improving our liquidity profile by increasing the capacity on our revolving credit facility from $50 million to $250 million.”

Fiscal Third Quarter 2026 Results Summary

Three Months Ended
October 31,

Nine Months Ended
October 31,

($ in thousands, except per share amounts)

2025

2024

% change

2025

2024

% change

GAAP

Total revenue

$

93,220

$

80,309

16

%

$

268,857

$

226,179

19

%

Net income

30,901

30,046

3

%

91,589

162,355

(44)

%

Net income margin (%)

33%

37%

34%

72%

Diluted earnings per common share

$

0.21

$

0.22

(5)

%

$

0.64

$

1.08

(41)

%

Net cash provided by operating activities

41,479

35,158

18

%

118,884

103,235

15

%

Operating cash flow conversion (%)

134%

117%

130%

64%

Non-GAAP1

Adjusted EBITDA

$

43,813

$

35,273

24

%

$

126,479

$

106,486

19

%

Adjusted EBITDA margin (%)

47%

44%

47%

47%

Free cash flow

41,280

34,071

21

%

118,053

98,338

20

%

Free cash flow conversion (%)

94%

97%

93%

92%

____________________
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’.

F3Q26 Financial Highlights

  • Quarterly total revenue of $93.2 million increased 16% year-over year primarily driven by Total Platform Assets of $92.8 billion, which were up 21% year-over-year. This includes Cash Management Assets of $47.0 billion, which were up 14% year-over-year, and Investment Advisory Assets of $45.8 billion, which were up 31% year-over-year. Total Platform Asset growth included Total Net Deposits of $1.6 billion in the quarter.

  • Funded Clients of 1.38 million grew 20% year-over-year.

  • GAAP expenses of $61.8 million increased 21% year-over-year primarily due to higher share-based compensation and product development expense, partially offset by lower marketing expense. Adjusted operating expenses of $53.7 million increased 11% year-over-year due to higher product development expense, partially offset by lower marketing expense.

  • GAAP net income of $30.9 million increased 3% year-over-year. GAAP net income margin was 33%, compared to 37% for the three months ended October 31, 2024, with the decrease driven in part by a GAAP tax benefit realized in the prior year quarter.

  • GAAP diluted EPS for the three months ended October 31, 2025 was $0.21, down year-over-year compared to $0.22 for the three months ended October 31, 2024 as higher GAAP net income was more than offset by a higher average diluted sharecount.

  • Adjusted EBITDA1 of $43.8 million grew 24% year-over-year. Adjusted EBITDA margin1 was 47%, compared to 44% for the three months ended October 31, 2024.

  • Net cash provided by operating activities was $41.5 millon and Free cash flow1 was $41.3 million. Free cash flow conversion ratio1 was 94% for the three months ended October 31, 2025 and 93% in the nine months ended October 31, 2025.

F3Q26 Business Highlights

  • Originated the company’s first home mortgage in the quarter with a broader intention to offer clients access to low, transparent rates and no hidden fees. Wealthfront now has state licenses that cover the states of residence for the majority of its clients and began a measured rollout in the fiscal fourth quarter, initially to clients in Colorado.

  • Launched Nasdaq-100 Direct, the first-ever product to offer retail investors tax savings from tax-loss harvesting in combination with tracking the Nasdaq-100 Index®. Nasdaq-100 Direct allows investors to turn market volatility into a tax-saving opportunity and is currently available for a 0.12% annual advisory fee.

  • Generated the best quarter of net cross account transfers from Cash Management to Investment Advisory in the company’s history, highlighting the balanced nature of the business and the enhanced breadth of Investment Advisory products available to clients.

  • Introduced free instant wire transfers, further bolstering the attractiveness of the Cash Management account that already provides an industry-leading annual percentage yield (APY) on as little as $1 and with $0 in account fees, up to $8 million in FDIC insurance for individual accounts and up to $16 million for joint accounts through our program banks, free instant withdrawals, and paycheck access up to two days early, among other features.

____________________
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’.

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’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 the final prospectus Wealthfront filed with the SEC pursuant to Rule 424(b), dated December 11, 2025, 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.

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 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, 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 define Incremental Adjusted EBITDA margin as the year-over-year change in Adjusted EBITDA divided by the year-over-year change in revenue over the comparable prior year period. We believe Adjusted EBITDA, Adjusted EBITDA Margin, and Incremental 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, Adjusted EBITDA Margin, and Incremental Adjusted EBITDA margin in this press release because it is a key measurement 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 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)

October 31,
2025

January 31,
2025

Assets

Current assets:

Cash and cash equivalents

$

266,191

$

142,860

Cash segregated and on deposit for regulatory purposes

10,701

9,083

Due from clients

191,070

118,518

Accounts receivable

32,071

29,127

Client-held fractional shares

211,299

28,057

Other current assets

31,447

18,805

Total current assets

742,779

346,450

Deferred tax assets, net

45,700

60,194

Operating lease right-of-use asset

9,545

11,229

Property, software, and equipment, net

9,276

14,723

Other noncurrent assets

3,341

2,610

Total assets

$

810,641

$

435,206

Liabilities, redeemable convertible preferred stock, and stockholders’ equity

Current liabilities:

Accounts payable

9,593

6,467

Accrued liabilities

12,377

7,517

Due to clients

12,413

9,452

Payable to clearing broker

191,126

118,174

Current portion of operating lease liabilities

4,035

3,556

Fractional shares repurchase obligation

211,299

28,057

Total current liabilities

440,843

173,223

Operating lease liabilities, net of current portion

7,329

9,796

Other noncurrent liabilities

9,912

9,651

Total liabilities

$

458,084

$

192,670

Commitments and contingencies

Redeemable convertible preferred stock, $0.0001 par value per share; 85,490,483 shares authorized as of October 31, 2025 and January 31, 2025; 69,852,421 and 69,914,359 shares issued and outstanding as of October 31, 2025 and January 31, 2025, respectively; aggregate liquidation preference of $229,393 and $229,543 as of October 31, 2025 and January 31, 2025, respectively

227,198

227,198

Stockholders’ equity:

Common stock, $0.0001 par value per share; 214,611,134 shares authorized as of October 31, 2025 and January 31, 2025; 44,871,567 and 41,532,599 shares issued as of October 31, 2025 and January 31, 2025; 43,419,298 and 40,110,106 shares outstanding as of October 31, 2025 and January 31, 2025, respectively

4

4

Treasury stock, at cost; 1,452,269 and 1,422,493 shares held as of October 31, 2025 and January 31, 2025, respectively

(12,858

)

(12,593

)

Additional paid-in capital

146,559

127,862

Accumulated deficit

(8,346

)

(99,935

)

Total stockholders’ equity

$

125,359

$

15,338

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

$

810,641

$

435,206

WEALTHFRONT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

Three Months Ended
October 31,

Nine Months Ended
October 31,

($ in thousands)

2025

2024

2025

2024

Revenue:

Cash management

$

68,812

$

60,157

$

201,951

$

168,890

Investment advisory

24,182

19,141

66,096

53,413

Other revenue

226

1,011

810

3,876

Total revenue

93,220

80,309

268,857

226,179

Costs and operating expenses:

Cost of revenue

10,178

7,988

28,433

22,421

Product development

20,922

17,063

62,381

46,430

General and administrative

15,404

7,365

34,144

21,251

Marketing

12,234

15,812

31,515

37,721

Operations and support

3,046

2,705

9,034

7,780

Total costs and operating expenses

61,784

50,933

165,507

135,603

Interest expense

217

1,031

383

2,557

Other income, net

(3,526

)

(1,182

)

(5,760

)

(19,754

)

Income before income taxes

34,745

29,527

108,727

107,773

Provision for (benefit from) income taxes

3,844

(519

)

17,138

(54,582

)

Net income

$

30,901

$

30,046

$

91,589

$

162,355

Earnings per share (EPS):

Basic

$

0.72

$

0.77

$

2.22

$

4.17

Diluted

$

0.21

$

0.22

$

0.64

$

1.08

Weighted-average shares outstanding used in computing EPS:

Basic

42,872,653

38,856,370

41,224,226

38,951,008

Diluted

142,510,293

138,336,934

142,434,669

138,890,885

Stock-Based Compensation by Type

Three Months Ended
October 31,

Nine Months Ended
October 31,

($ in thousands)

2025

2024

2025

2024

Product development

$

851

$

1,832

$

3,148

$

5,693

General and administrative

7,047

511

7,687

1,622

Marketing

62

134

230

427

Operations and support

128

275

473

860

Stock-based compensation expense, net of amounts capitalized

8,088

2,752

11,538

8,602

Capitalized stock-based compensation expense

—

(250

)

—

(1,358

)

Total stock-based compensation expense

$

8,088

$

2,502

$

11,538

$

7,244

WEALTHFRONT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

Three Months Ended
October 31,

Nine Months Ended
October 31,

($ in thousands)

2025

2024

2025

2024

Operating activities

Net income

$

30,901

$

30,046

$

91,589

$

162,355

Adjustments to reconcile net income to net cash provided by operating activities:

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

1,862

1,649

5,568

4,457

Non-cash lease expense

813

771

2,421

2,283

Cash interest paid on convertible note

—

—

—

(904

)

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

—

765

—

2,101

Deferred income taxes

4,767

6

14,494

(59,534

)

Stock-based compensation expense

8,086

2,503

11,536

7,244

Impairment of internally developed software

—

—

709

—

Change in fair value of convertible note

—

—

—

(16,927

)

Change in fair value of warrant liabilities

(437

)

189

(23

)

458

Change in fair value of simple agreement for future equity

(660

)

375

285

924

Changes in operating assets and liabilities:

Due from clients

(33,291

)

(16,867

)

(72,552

)

(25,842

)

Accounts receivable

(1,126

)

(1,736

)

(2,944

)

(7,299

)

Other current and noncurrent assets

(2,291

)

(3,430

)

(13,373

)

(4,304

)

Accounts payable

3,161

409

3,126

3,258

Accrued liabilities

(4,173

)

1,408

4,860

5,459

Due to clients

1,498

3,195

2,961

6,304

Payable to clearing broker

33,293

16,727

72,952

25,724

Lease liabilities

(924

)

(852

)

(2,725

)

(2,522

)

Net cash provided by operating activities

$

41,478

$

35,158

$

118,883

$

103,235

Investing activities

Purchases of property, software, and equipment

(198

)

(272

)

(830

)

(502

)

Capitalized internally developed software

—

(815

)

—

(4,395

)

Net cash used in investing activities

$

(198

)

$

(1,087

)

$

(830

)

$

(4,897

)

Financing activities

Repayment of convertible note

—

—

—

(29,122

)

Proceeds from exercise of stock options, including early exercises

2,040

2,159

7,161

2,293

Repurchase of common stock

(27

)

(23,482

)

(265

)

(23,482

)

Net cash provided by (used in) financing activities

$

2,013

$

(21,323

)

$

6,896

$

(50,311

)

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

43,293

12,748

124,949

48,027

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

236,209

131,071

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

$

279,502

$

143,819

$

279,502

$

143,819

WEALTHFRONT CORPORATION
KEY BUSINESS METRICS

TOTAL

As of or for the
Three Months Ended
October 31,

(in $ millions unless otherwise noted)

2025

2024

Platform assets

$

92,821

$

76,496

Cash management

47,011

41,400

Investment advisory

45,810

35,096

Net deposits

$

1,568

$

4,394

Funded clients (# in thousands)

1,378

1,149

Funded accounts (# in thousands)

1,785

1,488

CASH MANAGEMENT

As of or for the
Three Months Ended
October 31,

(in $ millions unless otherwise noted)

2025

2024

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

$

46,579

$

38,085

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

47,011

41,400

Average1

46,795

39,743

Cash management revenue

$

68.8

$

60.2

Annualized cash management fee rate (in %)2

0.58%

0.60%

INVESTMENT ADVISORY

As of or for the
Three Months Ended
October 31,

(in $ millions unless otherwise noted)

2025

2024

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

$

41,596

$

33,275

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

45,811

35,096

Average1

43,704

34,186

Investment advisory revenue

$

24.2

$

19.1

Annualized investment advisory fee rate (in %)2

0.22%

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
October 31,

Nine Months Ended
October 31,

($ in thousands)

2025

2024

2025

2024

GAAP operating expenses

$

61,784

$

50,933

$

165,507

$

135,603

Less: Stock-based compensation expense

8,088

2,502

11,539

7,244

Adjusted operating expenses

$

53,696

$

48,431

$

153,968

$

128,359

Adjusted EBITDA & Adjusted EBITDA Margin

Three Months Ended
October 31,

Nine Months Ended
October 31,

($ in thousands)

2025

2024

2025

2024

Net income

$

30,901

$

30,046

$

91,589

$

162,355

Net income margin

33%

37%

34%

72%

Add:

Interest expense

217

1,031

383

2,557

Provision for (benefit from) income taxes

3,844

(519

)

17,138

(54,582

)

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

1,860

1,649

5,568

4,457

EBITDA (non-GAAP)

$

36,822

$

32,207

$

114,678

$

114,787

Stock-based compensation expense

8,088

2,502

11,539

7,244

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

(1,097

)

564

262

(15,545

)

Adjusted EBITDA (non-GAAP)

$

43,813

$

35,273

$

126,479

$

106,486

Adjusted EBITDA Margin (non-GAAP)

47%

44%

47%

47%

Incremental Adjusted EBITDA Margin

Three Months Ended
October 31,

Nine Months Ended
October 31,

($ in thousands)

2025

2024

2025

2024

Total revenue

$

93,220

$

80,309

$

268,857

$

226,179

(a) 2025 change versus prior year period

12,911

NA

42,678

NA

Adjusted EBITDA (non-GAAP)

$

43,813

$

35,273

$

126,479

$

106,486

(b) 2025 change versus prior year period

8,540

NA

19,993

NA

Incremental adjusted EBITDA margin (b/a)

66%

47%

Free Cash Flow & Free Cash Flow Conversion

Three Months Ended
October 31,

Nine Months Ended
October 31,

(in thousands)

2025

2024

2025

2024

Net cash provided by operating activities

$

41,478

$

35,158

$

118,883

$

103,235

Divided by: Net income

30,901

30,046

91,589

162,355

Operating cash flow conversion

134%

117%

130%

64%

Net cash provided by operating activities

$

41,478

$

35,158

$

118,883

$

103,235

Less: Capital expenditures

(198

)

(1,087

)

(830

)

(4,897

)

Free cash flow

$

41,280

$

34,071

$

118,053

$

98,338

Divided by: Adjusted EBITDA (non-GAAP)

43,813

35,273

126,479

106,486

Free cash flow conversion

94%

97%

93%

92%