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Wealthfront Corporation
(NASDAQ:WLTH)
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Rating:56Neutral
Price Target:
$11.00
▲(24.15% Upside)
Action:Reiterated
Date:09/15/26
WLTH’s score is primarily held back by weakening profitability and higher leverage despite healthy revenue growth, while cash flow strength provides an important offset. Technicals are supportive with positive momentum versus key moving averages. Valuation is constrained by losses (negative P/E) and no dividend yield, while the latest earnings call was a net positive due to record platform assets, ongoing product expansion, and cash generation despite pressure on cash management revenue and expenses.
Positive Factors
Platform scale and client growth
Rapid growth in platform assets, funded clients, and accounts indicates sustained customer adoption and expanding scale. A larger asset base can deepen recurring advisory relationships, improve operating leverage over time, and strengthen Wealthfront’s position as a digital wealth platform.
Negative Factors
Material profitability deterioration
The shift from strong profits in 2024–2025 to substantial TTM losses weakens earnings durability and reduces the company’s ability to fund growth from profits. Sharp operating and gross-margin deterioration suggests that revenue growth is currently not translating efficiently into sustainable earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Platform scale and client growth
Rapid growth in platform assets, funded clients, and accounts indicates sustained customer adoption and expanding scale. A larger asset base can deepen recurring advisory relationships, improve operating leverage over time, and strengthen Wealthfront’s position as a digital wealth platform.
Read all positive factors
Wealthfront Corporation (WLTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.59B
Dividend YieldN/A
Average Volume (3M)1.64M
Price to Earnings (P/E)―
Beta (1Y)1.75
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees396
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.89
Shares Outstanding156,176,440
10 Day Avg. Volume2,850,004
30 Day Avg. Volume1,640,551
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.80
Price to Sales (P/S)1.35
P/FCF Ratio3.26
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$10.95Price Target Upside23.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.36
Revenue Forecast (FY)$374.91M
Wealthfront Corporation Business Overview & Revenue Model
Company Description
Wealthfront Corporation operates as a privately held asset management firm. While primarily serving individual investors, its client base also extends to high-net-worth individuals, charitable organizations, and corporate entities. The company bui...
Wealthfront Corporation Earnings Call Summary
Earnings Call Date:Sep 09, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Jan 18, 2027
Earnings Call Sentiment Positive
The call was broadly positive, supported by record platform assets, strong investment advisory growth, improving deposit and cross-product adoption trends, resilient client growth, continued product expansion, robust cash generation, and ongoing share repurchases. The main challenges were declines in cash management revenue and assets, higher expenses, lower adjusted EBITDA, lagging 2023 and 2024 cohorts, and near-term mortgage affordability and investment headwinds. Highlights significantly outweighed the lowlights.Positive Updates
Platform Assets Surpassed $100 Billion
Total platform assets surpassed $100 billion for the first time in August, reaching $100.9 billion, including $55.8 billion in investment advisory assets and $45.1 billion in cash management assets. The company said it doubled total platform assets in less than three years.
Negative Updates
Cash Management Revenue and Assets Declined
Cash management revenue was $61.8 million, down 10% year-over-year. Cash management assets were $44.9 billion, down 4% year-over-year, while average cash management balances were down 1% year-over-year. The annualized cash management fee rate was 55 basis points, down 6 basis points year-over-year.
Read all updates
Q2-2027 Updates
Positive
Negative
Platform Assets Surpassed $100 Billion
Total platform assets surpassed $100 billion for the first time in August, reaching $100.9 billion, including $55.8 billion in investment advisory assets and $45.1 billion in cash management assets. The company said it doubled total platform assets in less than three years.
Read all positive updates
Company Guidance
Wealthfront expects to complete the transition of its stock investing account to the broker dealer and rename it the Wealthfront Brokerage Account in October, plans to enter Washington, Florida, Illinois, and Oregon in the coming months, and intends to deliver mortgage rates at least 50 basis points below the national average; for next quarter, it expects roughly $3 million to $3.5 million in one-time employer tax expense tied to option exercises, while the long-term adjusted EBITDA margin can be over 40%, with a near-term headwind from home lending. The APY to APR conversion could be around 1 basis point with every 25 basis point increase roughly, but the company cannot give specific guidance for the rest of the year or into the future on the cash management fee rate.Wealthfront Corporation Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
35
Negative
Cash Flow
68
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 371.71M | 364.99M | 308.86M | 216.71M |
| Gross Profit | 61.15M | 82.32M | 277.89M | 193.82M |
| EBITDA | -130.03M | -92.96M | 148.28M | 86.63M |
| Net Income | -72.17M | -42.07M | 194.45M | 76.97M |
Balance Sheet | ||||
| Total Assets | 1.78B | 1.42B | 435.21M | 231.15M |
| Cash, Cash Equivalents and Short-Term Investments | 1.28B | 966.06M | 180.00M | 102.21M |
| Total Debt | 825.37M | 10.39M | 13.35M | 87.62M |
| Total Liabilities | 1.16B | 801.04M | 192.67M | 184.81M |
| Stockholders Equity | 619.86M | 614.69M | 242.54M | 46.34M |
Cash Flow | ||||
| Free Cash Flow | 143.01M | 151.05M | 122.62M | 72.42M |
| Operating Cash Flow | 144.77M | 152.19M | 123.15M | 72.92M |
| Investing Cash Flow | -1.76M | -1.14M | -5.84M | -5.16M |
| Financing Cash Flow | 88.89M | 148.19M | -58.55M | -39.50M |
Wealthfront Corporation Risk Analysis
Wealthfront Corporation disclosed 73 risk factors in its most recent earnings report. Wealthfront Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Wealthfront Corporation Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.22B | 65.70 | 15.64% | 0.82% | 20.18% | 85.68% | |
72 Outperform | $662.92M | 2.14 | 68.06% | 4.67% | 10.16% | ― | |
59 Neutral | $342.94M | -16.57 | -1.22% | ― | -10.34% | 49.81% | |
56 Neutral | $1.59B | -12.28 | -14.62% | ― | ― | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | $333.24M | -0.15 | -159.15% | 26.96% | -3.46% | -79.01% |
* General Sector Average
WLTH
Wealthfront Corporation
10.87
-3.32
-23.40%
RDVT
Red Violet
76.21
26.21
52.44%
ALIT
Alight
11.87
-55.74
-82.44%
OPFI
OppFi
7.22
-4.20
-36.78%
BLND
Blend Labs
1.36
-2.83
-67.54%
Wealthfront Corporation Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Wealthfront Q2 2027 Results Highlight Asset Growth
Negative
Sep 9, 2026
Wealthfront reported fiscal second quarter 2027 results on September 9, 2026, showing total revenue of $91.9 million, up 1% year over year, as Total Platform Assets rose 12% to $99.0 billion and funded clients grew 14% to 1.51 million. Despite ass...
Executive/Board ChangesShareholder Meetings
Wealthfront Stockholders Elect Directors and Ratify Auditor
Positive
Jun 24, 2026
On June 23, 2026, Wealthfront Corporation held its 2026 Annual Meeting of Stockholders, where a quorum was achieved with approximately 81.03% of outstanding common shares represented. Stockholders voted on the election of two Class I directors and...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.