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 $100 million share repurchase program. Given the multi-decade opportunity to compound wealth with new and existing clients, we view our shares as attractive at current levels."
Fiscal Fourth Quarter and Full Year 2026 Results Summary
Three Months Ended January Twelve Months Ended January
31, 31,
---------------------------
($ 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-GAAP(1)
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
============= =============
WEALTHFRONT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Twelve Months Ended
January 31, 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 Twelve Months Ended
31, 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
======= ===== ======= ======
WEALTHFRONT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended Twelve Months Ended
January 31, 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
-------- ------- -------- -------
WEALTHFRONT CORPORATION
KEY BUSINESS METRICS
As of or for the As of or for the
Three Months Ended Twelve Months Ended
TOTAL January 31, 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
As of or for the As of or for the
Three Months Ended Twelve Months Ended
CASH MANAGEMENT January 31, 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
Average(1) 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%
As of or for the As of or for the
Three Months Ended Twelve Months Ended
INVESTMENT ADVISORY January 31, 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
Average(1) 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 Twelve Months
January 31, 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 $178,022
Adjusted EBITDA & Adjusted EBITDA Margin
Three Months Ended Twelve Months Ended
January 31, January 31,
-------------------------- --------------------------
($ 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 Twelve Months Ended
January 31, 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%
-------- ------ ------- -
(MORE TO FOLLOW) Dow Jones Newswires
March 11, 2026 16:11 ET (20:11 GMT)