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Wealthfront Corporation (WLTH) AI Stock Analysis
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Wealthfront Corporation
(NASDAQ:WLTH)
WLTH’s score is held back primarily by weakened profitability and higher leverage in the financial statements, despite solid operating and free cash flow. Support comes from a positive earnings call focused on strong platform asset/client momentum and product expansion, alongside moderately constructive technicals. Valuation remains a constraint due to the negative P/E and lack of dividend yield.
Wealthfront Corporation (WLTH) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $1.60B
- Dividend Yield
- ―
- Average Volume (3M)
- 2.41M
- Price to Earnings (P/E)
- -11.6
- Beta (1Y)
- 1.76
- Revenue Growth
- ―
- EPS Growth
- ―
- Country
- US
- Employees
- 415
- Sector
- General
- Sector Strength
- 55
- Industry
- Software - Application
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 builds...
Wealthfront Corporation Earnings Call Summary
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.
Q2-2027 Updates
Positive Updates
Negative 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
Financial performance is pressured by a sharp profitability deterioration (TTM net margin around -19% and weaker gross/operating profitability) and a notable rise in leverage (debt-to-equity ~1.33x). Offsetting this, operating cash flow (~$145M) and free cash flow (~$143M) remain solid, indicating resilient cash generation despite reported losses.
Income Statement
42NeutralBalance Sheet
35NegativeCash Flow
68Positive| 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 Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLTH, the sentiment is Neutral. The current price of 10.27 is below the 20-day moving average (MA) of 10.68, above the 50-day MA of 10.18, and above the 200-day MA of 9.68, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 46.51 is Neutral, neither overbought nor oversold. The STOCH value of 20.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WLTH.
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.
Latest Risks Added
0 New RisksWealthfront Corporation Peers Comparison
Overall Rating
OPFI74Outperform
RDVT70Outperform- WLTH55Neutral
BLND50Neutral
ALIT47Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| OPFI | 74Outperform | $478.87M | 2.44 | 38.14% | ― | 5.58% | ― |
| RDVT | 70Outperform | $1.28B | 68.97 | 15.64% | ― | 20.18% | 85.68% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| WLTH | 55Neutral | $1.60B | -11.60 | -14.62% | ― | ― | ― |
| BLND | 50Neutral | $264.89M | -13.64 | -1.22% | ― | -10.34% | 49.81% |
| ALIT | 47Neutral | $240.57M | -0.12 | -159.15% | 35.83% | -3.46% | -79.01% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| WLTH | Wealthfront Corporation | 10.27 | -3.92 | -27.63% | |
| RDVT | Red Violet | 80.00 | 25.99 | 48.12% | |
| ALIT | Alight Inc | 8.93 | -45.12 | -83.48% | |
| OPFI | Oppfi Inc | 5.62 | -4.43 | -44.08% | |
| BLND | Blend Labs, Inc. | 1.12 | -2.13 | -65.54% |
Wealthfront Corporation Corporate Events
Wealthfront Expands Share Repurchase Authorization Signaling Confidence
PositiveOn October 20, 2026, Wealthfront Corporation’s board approved an additional $150 million authorization for repurchases of the company’s common stock, expanding its existing share buyback program that had $18.3 million remaining from the $...
Wealthfront Q2 2027 Results Highlight Asset Growth
NegativeWealthfront 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 asset...
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.
Date of analysis: Oct 21, 2026