Wealthfront Reports Fiscal Fourth Quarter and Full Year 2026 Results
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 | |||
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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 | |||||||
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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 | |||||||
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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 | % | |||||||
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