Wealthfront Reports Fiscal Second Quarter 2027 Results
WEALTHFRONT CORP (WLTH) filed an SEC Form 8-K — Results of Operations and Financial Condition. Wealthfront Reports Fiscal Second Quarter 2027 Results Total Platform Assets up 12% year-over-year to $99.0 billion at the end of the quarter Funded clients up 14% year-over-year to 1.5 million at the end of the quarter Surpassed $100 billion in Total Platform Assets as of the en
How this was made
The 30-second read
Why it matters
The report provides fresh data on revenue, earnings, cash flow, and AUM growth, essential for updating valuation and risk models.
Market read
First‑report earnings release with modest revenue growth but sharp earnings decline; key for fintech sector positioning.
What to watch
The impact of upcoming home‑lending expansion and potential regulatory scrutiny on digital mortgage products.
Wealthfront Reports Fiscal Second Quarter 2027 Results; Total Platform Assets up 12% year-over-year to $99.0 billion at the end of the quarter; Funded clients up 14% year-over-year to 1.5 million at the end of the quarter
Total revenue increased 1% year-over-year and platform assets, funded clients, and funded accounts grew, but GAAP diluted net income, diluted EPS, Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted free cash flow all declined year-over-year as stock-based compensation and product development expense increased.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $91.87M | – | 1 % |
| Cash management revenueGAAP | $ 61,758 | – | – |
| Investment advisory revenueGAAP | $ 28,804 | – | – |
| Other revenueGAAP | $ 1,312 | – | – |
| Cost of revenueGAAP | $ 10,764 | – | – |
| Product development expenseGAAP | $ 34,009 | – | – |
| General and administrative expenseGAAP | $ 15,685 | – | – |
| Marketing expenseGAAP | $ 10,715 | – | – |
| Operations and support expenseGAAP | $ 3,914 | – | – |
| Total costs and operating expensesGAAP | $75.09M | – | – |
| Adjusted operating expensesnon-GAAP | $58.65M | – | 17% |
| Net incomeGAAP | $ 17,751 | – | – |
| Net income attributable to common stockholders, dilutiveGAAP | $17.56M | – | (49) % |
| Net income marginGAAP | 19 % | – | – |
| Diluted earnings per common shareGAAP | $ 0.10 | – | (59) % |
| Basic earnings per shareGAAP | $ 0.12 | – | – |
| Interest expenseGAAP | $ 255 | – | – |
| Provision for income taxesGAAP | $ 2,644 | – | – |
| Adjusted EBITDAnon-GAAP | $38.06M | – | (15) % |
| Adjusted EBITDA marginnon-GAAP | 41 % | – | – |
| Net cash provided by operating activitiesGAAP | $47.31M | – | 22 % |
| Operating cash flow conversionother | 267% | – | – |
| Adjusted free cash flownon-GAAP | $28.29M | – | (27) % |
| Adjusted free cash flow conversionnon-GAAP | 74% | – | – |
| Stock-based compensation expenseGAAP | $16.43M | – | – |
| Platform assetsother | $98.99B | – | 12% |
| Net depositsother | $ 1,053 | – | – |
| Funded clients (# in thousands)other | 1.51M | – | 14% |
| Funded accounts (# in thousands)other | 1.97M | – | 15% |
| Annualized cash management fee rateother | 0.55 % | – | – |
| Annualized investment advisory fee rateother | 0.22 % | – | – |
| Six-month total revenueGAAP | $ 182,358 | – | – |
| Six-month net incomeGAAP | $ 30,585 | – | – |
| Six-month Adjusted EBITDAnon-GAAP | $ 75,574 | – | – |
| Six-month net cash provided by operating activitiesGAAP | $ 69,992 | – | – |
| Six-month Adjusted free cash flownon-GAAP | $ 71,001 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Cash managementCash Management Assets were $44.9 billion, down 4% year-over-year. The company cited stronger growth in Investment Advisory Assets versus that of higher-fee Cash Management Assets as the primary reason for the difference between revenue growth and Total Platform Asset growth. | $ 61,758 | – | – |
| Investment advisoryInvestment Advisory Assets were $54.1 billion, up 30% year-over-year. | $ 28,804 | – | – |
| Other revenueNo driver was provided. | $ 1,312 | – | – |
Capital returns
- Repurchased 3.3 million shares resulting in approximately $30 million of open market repurchases.
- Repurchase of common stock was $ (31,838) for the three months ended July 31, 2026.
- Repurchase of common stock was $ (60,099) for the six months ended July 31, 2026.
What drove it
- Quarterly total revenue increased 1% year-over-year primarily due to a 12% year-over-year increase in Total Platform Assets to $99.0 billion.
- Total Platform Asset growth included Total Net Deposits of $1.1 billion in the quarter.
- Funded Clients of 1.51 million grew 14% year-over-year and Funded Accounts of 1.97 million grew 15% year-over-year.
- The company launched general availability of Wealthfront Home Lending in Texas in early May and California in early August.
- Wealthfront launched Custodial Accounts and made automation improvements to Wealthfront Home Lending.
Concerns
- The difference between revenue growth and Total Platform Asset growth was primarily due to stronger growth in Investment Advisory Assets versus that of higher-fee Cash Management Assets.
- Cash Management Assets were $44.9 billion, down 4% year-over-year.
- GAAP expenses increased from $51.8 million in the prior year quarter to $75.1 million, primarily due to higher stock-based compensation expense and higher product development expense.
- Stock-based compensation expense was $16.4 million versus $1.6 million in the prior year quarter, primarily due to recognition of dual-trigger stock awards following the December 2025 IPO.
- Adjusted free cash flow for the three months ended July 31, 2026 included the typical, partial payment of employee cash bonuses in July.
What to watch
- Whether Investment Advisory Assets and Cash Management Assets change the relationship between Total Platform Asset growth and revenue growth.
- Expansion of Wealthfront Home Lending to Washington, Florida, Illinois, and Oregon in the coming months.
- Progress toward Wealthfront Home Lending's objective to consistently offer rates at least 50 basis points below the national average.
- The expense impact of stock-based compensation and higher personnel-related expenses associated with the launch of Wealthfront Home Lending.
- Total Platform Assets after the company surpassed $100 billion as of the end of August.
Balance sheet and cash flow
- Cash and cash equivalents were $ 453,308 as of July 31, 2026, compared with $ 440,805 as of January 31, 2026.
- Cash segregated and on deposit for regulatory purposes was $ 12,200 as of July 31, 2026, compared with $ 10,375 as of January 31, 2026.
- The CFO said the company had cash balances above $450 million at quarter-end and a debt-free balance sheet.
- Total assets were $ 1,782,772 as of July 31, 2026, compared with $ 1,415,729 as of January 31, 2026.
- Total liabilities were $ 1,162,910 as of July 31, 2026, compared with $ 801,040 as of January 31, 2026.
- Total stockholders’ equity was $ 619,862 as of July 31, 2026, compared with $ 614,689 as of January 31, 2026.
- Net cash provided by operating activities was $ 47,310.
- Net cash used in investing activities was $ (268).
- Net cash used in financing activities was $ (23,575).
Analysis
Wealthfront reported fiscal second-quarter total revenue of $ 91,874, up 1 % from $ 91,123. Platform assets reached $ 98,990, compared with $ 88,175 a year earlier, while funded clients rose to 1,507 thousand and funded accounts rose to 1,968 thousand. Net deposits were $ 1,053, versus $ 3,662 in the prior-year quarter. The company also said it surpassed $100 billion in Total Platform Assets as of the end of August.
Product mix constrained revenue growth relative to asset growth. Cash management revenue was $ 61,758, compared with $ 68,873, while investment advisory revenue was $ 28,804, compared with $ 22,040. Cash management assets ended the period at $ 44,857, versus $ 46,579, and investment advisory assets ended at $ 54,133, versus $ 41,596. Wealthfront identified stronger growth in Investment Advisory Assets than in higher-fee Cash Management Assets as the principal reason revenue grew more slowly than platform assets.
Profitability declined as costs increased. Total costs and operating expenses were $ 75,087 versus $ 51,843, with product development expense at $ 34,009 versus $ 21,227. Stock-based compensation expense was $ 16,433 compared with $ 1,571, which the company attributed primarily to recognition of dual-trigger stock awards following its December 2025 IPO. GAAP diluted earnings per common share were $ 0.10 versus $ 0.24, Adjusted EBITDA was $ 38,065 versus $ 44,759, and Adjusted EBITDA margin was 41 % versus 49 %.
Cash generation remained positive but declined on the adjusted measure. Net cash provided by operating activities rose to $ 47,310 from $ 38,924, while Adjusted free cash flow declined to $ 28,293 from $ 38,837 and Adjusted free cash flow conversion was 74% versus 87%. The company repurchased 3.3 million shares, resulting in approximately $30 million of open market repurchases. Cash and cash equivalents were $ 453,308 at July 31, 2026, and management described the balance sheet as debt-free.
The operating focus is product expansion and automation. Wealthfront launched general availability of Home Lending in Texas in early May and California in early August, with further expansion planned, and introduced Custodial Accounts. The filing provided no financial outlook, so the next reported period will be important for evidence that Home Lending, product investment, and asset mix can support revenue growth while the stock-based compensation and product-development expense burden is absorbed.
Management, verbatim
Our focus on growing with clients through their wealth-building journeys has resulted in the purposeful construction of a durable business model that surpassed $100 billion in Total Platform Assets as of the end of August. We are extremely proud of this achievement and will continue supporting our clients with innovative products as they make significant life decisions such as buying homes and starting families.
David Fortunato, CEO, President & Director
Our product-led growth strategy drove another strong quarter of adjusted free cash flow and enabled us to continue to invest in the organic build out of Wealthfront Home Lending, launch Custodial Accounts, and deliver several enhancements to our Cash Management and Investment Advisory products.
Alan Imberman, CFO & Treasurer
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-period outlook was not provided.
- Gross margin was not reported.
- Operating income was not reported.
- GAAP effective tax rate was not reported.
- Non-GAAP EPS was not reported.
- Quarter-over-quarter comparisons were not reported for the reported metrics.
- Dividend information was not provided.
- A quantified debt balance was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Wealthfront, a Nasdaq‑listed fintech firm, disclosed its quarterly financials via an SEC Form 8‑K, the first public release of these numbers.
Ticker impact
Wealthfront Corp filed its Form 8‑K reporting Q2 2027 results with revenue, earnings, cash flow and asset growth figures.
Modest short‑term volatility; potential upside if investors focus on asset growth and share repurchase, downside risk from earnings decline.
The new financial metrics provide fresh data for valuation models; the mixed earnings narrative may cause a split reaction.
Market effects
Highlights continued growth in digital wealth‑management platforms and pressure on fee structures.
Positive signal for U.S. fintech sector investors.
Limited to fintech niche; no broad macro impact.
Counterpoint
Earnings decline and rising expenses may signal margin pressure that outweighs asset growth, suggesting a short‑term pullback.
Key entities
- companyWealthfront Corp
Nasdaq‑listed fintech platform for digital‑native investors.
- executiveDavid Fortunato
CEO, President & Director of Wealthfront.
- executiveAlan Imberman
CFO & Treasurer of Wealthfront.
