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 end of August

PALO ALTO, Calif., Sept. 09, 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 second quarter ended July 31, 2026.

David Fortunato - CEO, President & Director: "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. This quarter, we made further progress in automating the home mortgage origination process and enhanced our suite of family wealth management offerings with Custodial Accounts. We remain focused on shipping products aligned with our clients' interests, and in doing so, believe we are in a strong position to achieve our goal of becoming the modern wealth manager for digital natives."

Alan Imberman - CFO & Treasurer: "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. During the quarter, we repurchased 3.3 million shares resulting in approximately $30 million of open market repurchases. We continue to maintain a strong and flexible capital position moving forward with cash balances above $450 million at quarter-end coupled with our strong adjusted free cash flow profile and debt-free balance sheet."

Fiscal Second Quarter 2027 Results Summary

 
                            Three Months Ended July 31, 
                         --------------------------------- 
($ in thousands, except 
per share amounts)             2026             2025         % change 
                         ----------------  ---------------  ---------- 
GAAP 
Total revenue             $        91,874   $       91,123      1% 
Net income - diluted               17,562           34,741    (49)% 
  Net income margin - 
   diluted (%)                        19%              38% 
Diluted earnings per 
 common share             $          0.10   $         0.24    (59)% 
Net cash provided by 
 operating activities              47,310           38,924     22% 
  Operating cash flow 
   conversion (%)                    267%             112% 
Non-GAAP(1) 
Adjusted EBITDA           $        38,065   $       44,759    (15)% 
  Adjusted EBITDA 
   margin (%)                         41%              49% 
Adjusted free cash flow            28,293           38,837    (27)% 
  Adjusted free cash 
   flow conversion (%)                74%              87% 
 
 

(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'.

F2Q27 Financial Highlights

   -- Quarterly total revenue of $91.9 million increased 1% year-over-year 
      primarily due to a 12% year-over-year increase in Total Platform Assets 
      to $99.0 billion. 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. 
      Investment Advisory Assets were $54.1 billion, up 30% year-over-year, and 
      Cash Management Assets were $44.9 billion, down 4% year-over-year. 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. Funded Accounts 
      of 1.97 million grew 15% year-over-year. 
 
   -- GAAP expenses of $75.1 million increased from $51.8 million in the prior 
      year quarter, with the increase due primarily to higher stock-based 
      compensation (SBC) expense and higher product development expense. SBC 
      expense was $16.4 million in the quarter versus $1.6 million in the prior 
      year quarter, with this increase due primarily to the recognition of 
      dual-trigger stock awards following the IPO, which took place in December 
      2025. Adjusted operating expenses1 of $58.7 million, which excludes SBC 
      expense, increased 17% year-over-year, primarily due to higher adjusted 
      product development expense. The increase in adjusted product development 
      expense was primarily due to higher personnel-related expenses, including 
      from increased headcount associated with the launch of Wealthfront Home 
      Lending. 
 
   -- GAAP diluted net income of $17.6 million decreased from $34.7 million in 
      the prior year quarter with the decline primarily due to higher GAAP 
      expenses as a result of higher SBC expense from the recognition of 
      dual-trigger stock awards following the IPO versus prior to the IPO. GAAP 
      diluted net income margin was 19%, a decrease from 38% in the prior year 
      quarter driven primarily by the same SBC impact noted above. 
 
   -- GAAP diluted EPS was $0.10 compared to $0.24 in the prior year quarter 
      primarily due to higher SBC expense tied to the recognition of 
      dual-trigger stock awards following the IPO versus prior to the IPO. 
 
   -- Adjusted EBITDA1 of $38.1 million declined 15% year-over-year. Adjusted 
      EBITDA margin1 was 41%, compared to 49% for the prior year quarter. 
 
   -- Net cash provided by operating activities was $47.3 million and Adjusted 
      free cash flow1 was $28.3 million. Adjusted free cash flow conversion 
      ratio1 was 74% for the three months ended July 31, 2026. Note, adjusted 
      free cash flow for the three months ended July 31, 2026 includes the 
      typical, partial payment of employee cash bonuses in July. 

(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'.

Recent Business Highlights

   -- Surpassed $100 Billion in Total Platform Assets as of the end of August, 
      doubling the figure in less than three years. This milestone underscores 
      digital natives' commitment to proven, long-term saving and investing 
      strategies as clients are building emergency funds, investing for 
      retirement, and saving for their first homes, often at the same time. An 
      analysis of clients on the platform from January 1, 2021, to January 1, 
      2026, shows that millennials have on average nearly tripled their wealth 
      held on our platform over that time frame, and Gen Z clients have on 
      average quintupled their wealth held on our platform over that time 
      frame. Wealthfront will aim to continue to build high-quality products at 
      industry-low fee rates in order to help turn clients' savings into wealth 
      and ensure that they achieve their financial goals. 
 
   -- Launched general availability of Wealthfront Home Lending in Texas in 
      early May and California in early August. Wealthfront Home Lending is now 
      live in Colorado, Texas, and California, with expansions to Washington, 
      Florida, Illinois, and Oregon planned in the coming months. Wealthfront 
      Home Lending intends to deliver a fully digital home mortgage experience 
      with below market rates. By building a fully digital product, removing 
      unnecessary steps, and automating away most overhead, Wealthfront Home 
      Lending aims to consistently offer rates at least 50 basis points below 
      the national average, an objective it has delivered to clients on average 
      since launch. 
 
   -- Enhanced the digital experience for Wealthfront Home Lending with several 
      automation improvements. These improvements include the launch of a 
      self-service scenarios tool that allows borrowers to explore custom loan 
      configurations and lock in their rate autonomously online without loan 
      officer intervention, smarter restricted stock unit (RSU) income 
      verification processes, and a streamlined intake flow that pre-fills 
      certain fields incorporating data from both Wealthfront accounts and 
      linked accounts. These product enhancements reflect excellent progress 
      towards Wealthfront Home Lending's vision of delivering the first 
      mortgage product designed to be handled entirely in a mobile app. 
 
   -- Expanded suite of family wealth management offerings with Custodial 
      Accounts. The new offering is one of the only custodial accounts designed 
      to lower a child's future taxes. Wealthfront's software automates a 
      Tax-Gain Harvesting strategy designed to consider the favorable federal 
      tax treatment available to children, helping realize up to $1,350 in 
      tax-free growth each year without requiring a federal tax return filing, 
      increasing their cost basis, thereby reducing the amount of realized gain 
      when the investment is later sold. Thanks to this strategy, when the 
      funds are eventually withdrawn by the child years later, they may have 
      less taxes to pay and can keep more of their returns. Wealthfront's 
      Custodial Account complements the existing 529 Education Savings Plans as 
      well as Joint and Trust Cash and Investing Accounts in the ongoing 
      expansion of family wealth management offerings.