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Wealthfront profit drops as assets reach $99B

WLTH grew platform assets and client counts but saw profit margins compress as stock-based compensation and product development expenses increased.

Filing Impact
(High)
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(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Wealthfront Corporation (WLTH) reported fiscal second quarter 2027 revenue of $91.9 million, up 1% year over year, as Total Platform Assets rose 12% to $99.0 billion and surpassed $100 billion as of the end of August. Investment Advisory Assets grew 30% to $54.1 billion, while Cash Management Assets declined 4% to $44.9 billion. Net deposits were $1.1 billion, down from $3.7 billion a year earlier, with strong inflows into advisory products offset by modest cash outflows.

Profitability softened. GAAP net income fell 49% to $17.8 million and diluted EPS declined to $0.10 from $0.24, mainly due to a jump in stock‑based compensation to $16.4 million tied to IPO-related awards and higher product development spend. Adjusted EBITDA decreased 15% to $38.1 million, with margin at 41% versus 49%. Operating cash flow increased 22% to $47.3 million, and adjusted free cash flow was $28.3 million (74% conversion). Wealthfront ended the quarter with $453.3 million in corporate cash and cash equivalents, no debt, and repurchased 3.3 million shares for roughly $30 million.

Positive

  • Total Platform Assets rose 12% year over year to $99.0 billion, and exceeded $100 billion as of the end of August, supported by $1.1 billion in quarterly net deposits and strong 30% growth in Investment Advisory Assets.
  • Balance sheet and liquidity remain strong, with $453.3 million in corporate cash and cash equivalents, no debt, and continued ability to fund product investments and $30 million of share repurchases.
  • Client scale is expanding: funded clients reached 1.51 million and funded accounts 1.97 million, both up in the mid-teens percentage range year over year, supporting future monetization potential.

Negative

  • Profitability weakened materially: GAAP net income fell 49% to $17.8 million and diluted EPS declined 59% to $0.10, driven by a sharp increase in stock-based compensation and higher operating expenses.
  • Adjusted EBITDA dropped 15% to $38.1 million with margin compressing from 49% to 41%, reflecting lower Cash Management fee rates after rate cuts, client promotions, and increased investment in Wealthfront Home Lending.
  • Growth in deposits and cash flows moderated: net deposits declined from $3.7 billion to $1.1 billion year over year, Cash Management revenue fell 10%, and adjusted free cash flow decreased 27% to $28.3 million.

Filing Explained

The September 9 Form 8-K reports completed second-quarter results and discloses cash plus an untapped revolving facility; the latter is borrowing capacity, not cash already held, and the balance sheet separately lists short-term financing.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Total revenue $91.9 million Three months ended July 31, 2026, up 1% year over year
GAAP net income $17.8 million Quarter ended July 31, 2026, down 49% from $34.7 million
Diluted EPS $0.10 Quarter ended July 31, 2026, versus $0.24 a year earlier
Adjusted EBITDA $38.1 million Quarter ended July 31, 2026, down 15% year over year
Total Platform Assets $99.0 billion As of July 31, 2026, up 12% year over year
Investment Advisory Assets $54.1 billion As of July 31, 2026, up 30% year over year
Cash Management Assets $44.9 billion As of July 31, 2026, down 4% year over year
Corporate cash and cash equivalents $453.3 million Balance sheet as of July 31, 2026, debt-free
Total Platform Assets financial
"Total Platform Assets up 12% year-over-year to $99.0 billion at the end"
Adjusted EBITDA financial
"Adjusted EBITDA of $38.1 million declined 15% year-over-year"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted free cash flow financial
"Adjusted free cash flow was $28.3 million and Adjusted free cash flow"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
Net deposits financial
"Total Platform Asset growth included Total Net Deposits of $1.1 billion"
Net deposits measure the amount of money customers put into a financial institution or platform minus the money they withdrew or moved out during a given period. Think of it as the net water added to a bucket after pours and spills; positive net deposits mean more cash staying with the firm, which signals customer trust, fuels lending or investment activity, and can boost future income and financial stability—key things investors watch.
Funded clients financial
"Funded Clients of 1.51 million grew 14% year-over-year"
Rule of 40 financial
"Rule of 40 (in Percentage Points) Revenue growth (in ppt)"
The "rule of 40" is a simple guideline used by investors to assess the health of a company's growth and profitability. It adds a company's growth rate to its profit margin; if the total is 40% or higher, the company is generally considered to be performing well. This helps investors quickly gauge whether a company is balancing rapid growth with solid profits, much like checking if a car’s speed and fuel efficiency together are within a safe and efficient range.
Revenue $91.9 million up 1% year over year
GAAP net income $17.8 million down 49% year over year
Diluted EPS $0.10 down from $0.24 a year earlier
Adjusted EBITDA $38.1 million down 15% year over year
Adjusted EBITDA margin 41% down from 49% a year earlier
Operating cash flow $47.3 million up 22% year over year
Adjusted free cash flow $28.3 million down 27% year over year

FAQ

How did WLTH’s revenue perform in the fiscal second quarter 2027?
Revenue was $91.9 million for the quarter ended July 31, 2026, up 1% year over year. Cash Management revenue declined 10% to $61.8 million, while Investment Advisory revenue grew 31% to $28.8 million.

What were Wealthfront (WLTH) earnings and margins this quarter?
GAAP net income was $17.8 million, down 49% year over year, with diluted EPS of $0.10 versus $0.24. Adjusted EBITDA was $38.1 million, down 15%, and the Adjusted EBITDA margin was 41% compared with 49% a year earlier.

How large are WLTH’s Total Platform Assets and client base now?
Total Platform Assets were $99.0 billion at July 31, 2026, up 12% year over year, and exceeded $100 billion by end of August. Funded clients reached 1.51 million and funded accounts 1.97 million, both growing in the mid-teens percentage range.

What is driving the change in Wealthfront’s asset mix between cash and advisory?
Investment Advisory Assets increased 30% year over year to $54.1 billion, while Cash Management Assets declined 4% to $44.9 billion. Net deposits of $1.1 billion were driven by advisory inflows, partially offset by $26 million of cash management withdrawals.

What is WLTH’s cash position and capital return activity?
Wealthfront held $453.3 million in corporate cash and cash equivalents at quarter-end, with a debt-free balance sheet. The company repurchased 3.3 million shares for approximately $30 million during the quarter and carries a $250 million untapped revolving credit facility.

How did Wealthfront’s operating cash flow and adjusted free cash flow trend?
Net cash provided by operating activities was $47.3 million, up 22% year over year. Adjusted free cash flow was $28.3 million, down 27%, resulting in an adjusted free cash flow conversion of 74% of Adjusted EBITDA.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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0001524566FALSE00015245662026-09-092026-09-09

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 9, 2026

Wealthfront Corporation

(Exact name of registrant as specified in its charter)

Delaware001-4298720-8280144
(State or other jurisdiction
of incorporation)		(Commission
File Number)
(IRS Employer
Identification No.)
261 Hamilton Avenue
Palo Alto, California
94301
(Address of principal executive offices)
(Zip Code)

(844) 995-8437
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, $0.0001 par value per share
WLTHThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐


Item 2.02 Results of Operations and Financial Condition.
On September 9, 2026, Wealthfront Corporation (the “Company”) issued a press release announcing its financial results for the second fiscal quarter ended July 31, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. As previously announced, the Company will host a conference call on September 9, 2026 at 2:00 p.m. PT/5:00 p.m. ET.
Item 7.01 Regulation FD Disclosure.
On September 9, 2026, the Company posted a supplemental information presentation to its website at ir.wealthfront.com, which is attached hereto as Exhibit 99.2.

The information furnished in this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information in this Current Report shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this Current Report, regardless of any general incorporation language in the filing.

The Company announces material information to the public through filings with the Securities and Exchange Commission (the “SEC”), the investor relations page on its website (ir.wealthfront.com), press releases, public conference calls, public webcasts, and its social media accounts on X and LinkedIn in order to achieve broad, non-exclusionary distribution of information to the public and for complying with its disclosure obligations under Regulation FD.

The content of the Company’s websites and information that the Company may post on or provide to online and social media channels, including those mentioned above, and information that can be accessed through the Company’s websites or these online and social media channels are not incorporated by reference into this Current Report on Form 8-K or in any other report or document the Company files with the SEC, and any references to the Company’s websites or these online and social media channels are intended to be inactive textual references only.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit NumberDescription
99.1
Press Release of Wealthfront Corporation dated September 9, 2026
99.2
Supplemental Information Presentation for the second fiscal quarter ended July 31, 2026
104Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Wealthfront Corporation
Date:September 9, 2026By:
/s/ Alan Imberman
Name: Alan Imberman
Title: Chief Financial Officer


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 end of August



Palo Alto, CA - September 9, 2026 - 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)20262025% change
GAAP
Total revenue$91,874 $91,123 1 %
Net income - diluted17,562 34,741 (49)%
Net income margin - diluted (%)19%38%
Diluted earnings per common share$0.10 $0.24 (59)%
Net cash provided by operating activities47,310 38,924 22 %
Operating cash flow conversion (%)267%112%
Non-GAAP1
Adjusted EBITDA$38,065 $44,759 (15)%
Adjusted EBITDA margin (%)41%49%
Adjusted free cash flow28,293 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.
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
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’.

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.
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’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.


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’.

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 Annual Report on Form 10-K for the fiscal year ended January 31, 2026 filed with the SEC on April 24, 2026 and our most recent Quarterly Report on 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 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. Adjusted Free Cash Flow reflects net cash provided from operating activities, less (i) purchases of property, software, and equipment and (ii) capitalized internally developed software, plus (i) the change in temporary client funding receivables, which include (a) the change in direct deposit receivables and (b) the change in instant withdrawal receivables. We believe Adjusted 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 Adjusted 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. Adjusted Free Cash Flow Conversion reflects 1) Adjusted 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 our clients and we have placed into products on our platform, net of withdrawals, over a defined period of time. Beginning with our fiscal second quarter 2027 earnings report, we include deposit matches from client promotions within the presented amounts starting with June 2026, which aligns with the launch of Wealthfront Custodial Accounts and its related promotion. 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)
July 31,
2026		January 31, 2026
Assets
Current assets:
Cash and cash equivalents$453,308 $440,805 
Cash segregated and on deposit for regulatory purposes12,200 10,375 
Due from clients302,562 227,413 
Accounts receivable30,923 33,127 
Client-held fractional shares816,880 514,877 
Other current assets36,005 49,187 
Total current assets1,651,878 1,275,784 
Deferred tax assets, net113,921 119,749 
Operating lease right-of-use asset7,081 8,696 
Property, software, and equipment, net6,337 7,755 
Other noncurrent assets3,555 3,745 
Total assets$1,782,772 $1,415,729 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable6,526 7,299 
Accrued liabilities10,479 8,649 
Short-term financing5,116 181 
Due to clients10,998 30,209 
Payable to clearing broker302,658 227,439 
Current portion of operating lease liabilities4,336 4,101 
Fractional shares repurchase obligation816,880 514,877 
Total current liabilities1,156,993 792,755 
Operating lease liabilities, net of current portion4,151 6,292 
Other noncurrent liabilities1,766 1,993 
Total liabilities$1,162,910 $801,040 
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.0001 par value per share; 214,611,134 shares authorized as of July 31, 2026 and January 31, 2026; 158,756,966 and 151,782,411 shares issued as of July 31, 2026 and January 31, 2026, respectively; 150,748,902 and 150,305,463 shares outstanding as of July 31, 2026 and January 31, 2026, respectively
12 12 
Treasury stock, at cost; 8,008,064 and 1,476,948 shares held as of July 31, 2026 and January 31, 2026, respectively
(73,151)(13,052)
Additional paid-in capital804,417 769,730 
Accumulated deficit(111,416)(142,001)
Total stockholders’ equity$619,862 $614,689 
Total liabilities and stockholders’ equity$1,782,772 $1,415,729 


WEALTHFRONT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
July 31,		Six Months Ended
July 31,
($ in thousands)
2026202520262025
Revenue:
Cash management$61,758 $68,873 $125,139 $133,139 
Investment advisory28,804 22,040 55,048 41,914 
Other revenue1,312 210 2,171 584 
Total revenue91,874 91,123 182,358 175,637 
Costs and operating expenses:
Cost of revenue10,764 9,587 20,728 18,255 
Product development34,009 21,227 67,724 41,459 
General and administrative15,685 8,873 32,606 18,740 
Marketing10,715 9,093 21,935 19,281 
Operations and support3,914 3,063 8,030 5,988 
Total costs and operating expenses75,087 51,843 151,023 103,723 
Interest expense255 99 507 166 
Other expense (income), net(3,863)(690)(6,997)(2,234)
Income before income taxes20,395 39,871 37,825 73,982 
Provision for income taxes2,644 5,130 7,240 13,294 
Net income$17,751 $34,741 $30,585 $60,688 
Net income attributable to common shareholders:
Net income attributable to common stockholders, basic$17,751 $34,741 $30,585 $60,688 
Net income attributable to common stockholders, dilutive$17,562 $34,741 $30,574 $60,688 
Earnings per share (EPS):
Basic$0.12 $0.86 $0.20 $1.50 
Diluted$0.10 $0.24 $0.18 $0.43 
Weighted-average shares outstanding used in computing EPS:
Basic150,094,381 40,497,003 150,260,391 40,386,351 
Diluted174,051,608 141,996,997 174,050,331 142,121,531 

Stock-Based Compensation by Type
Three Months Ended
July 31,		Six Months Ended
July 31,
($ in thousands)
2026202520262025
Product development$9,698 $1,046 $19,818 $2,297 
General and administrative5,590 291 11,309 640 
Marketing378 77 619 168 
Operations and support
767 157 1,739 345 
Stock-based compensation expense16,433 1,571 33,485 3,450 
Capitalized stock-based compensation expense— — — — 
Total stock-based compensation expense,
net of amounts capitalized		$16,433 $1,571 $33,485 $3,450 



WEALTHFRONT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
July 31,		Six Months Ended
July 31,
($ in thousands)
2026202520262025
Operating activities
Net income$17,751 $34,741 $30,585 $60,688 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, software, and equipment, net1,237 1,859 2,671 3,706 
Non-cash lease expense753 814 1,615 1,608 
Deferred income taxes1,948 9,727 5,828 9,727 
Stock-based compensation expense16,433 1,571 33,485 3,450 
Impairment of internally developed software— 331 — 709 
Change in fair value of warrant liabilities(255)414 157 414 
Change in fair value of simple agreement for future equity— 945 — 945 
Changes in operating assets and liabilities:
Due from clients(28,894)(13,576)(75,149)(39,261)
Accounts receivable(1,172)(3,127)2,204 (1,818)
Other current and noncurrent assets20,075 (12,407)18,421 (11,082)
Originations of mortgages held for sale(41,974)— (55,529)— 
Proceeds from sale of mortgages held for sale37,116 — 50,479 — 
Accounts payable(732)(261)(773)(35)
Accrued liabilities(2,236)799 1,831 9,033 
Due to clients(1,051)4,174 (19,211)1,463 
Payable to clearing broker29,146 13,812 75,219 39,659 
Lease liabilities(899)(892)(1,906)(1,801)
Other noncurrent liabilities64 — 64 — 
Net cash provided by operating activities$47,310 $38,924 $69,992 $77,405 
Investing activities
Purchases of property, software, and equipment(268)(421)(1,253)(632)
Net cash used in investing activities$(268)$(421)$(1,253)$(632)
Financing activities
Taxes paid related to net share settlement of RSUs(5,700)— (10,353)— 
Net borrowings (payments) on short-term funding facilities4,935 — 4,935 — 
Proceeds from exercise of stock options, including early exercises5,852 4,752 6,970 5,121 
Proceeds from exercise of common stock warrants— — 960 — 
Proceeds from issuance of common stock under ESPP3,176 — 3,176 — 
Repurchase of common stock(31,838)(25)(60,099)(238)
Net cash provided by (used in) financing activities$(23,575)$4,727 $(54,411)$4,883 
Net increase in cash and cash equivalents, cash segregated and on deposit for regulatory purposes, and restricted cash and cash equivalents23,467 43,230 14,328 81,656 
Cash and cash equivalents, cash segregated and on deposit for regulatory purposes, and restricted cash and cash equivalents at the beginning of the period444,651 192,979 453,790 154,553 
Cash and cash equivalents, cash segregated and on deposit for regulatory purposes, and restricted cash and cash equivalents at the end of the period$468,118 $236,209 $468,118 $236,209 


WEALTHFRONT CORPORATION
KEY BUSINESS METRICS

TOTALAs of or for the
Three Months Ended
July 31,
(in $ millions unless otherwise noted)20262025
Platform assets$98,990 $88,175 
Cash management44,85746,579
Investment advisory54,13341,596
Net deposits$1,053 $3,662 
Cash management(26)2,806
Investment advisory1,079856
Funded clients (# in thousands)1,5071,318
Funded accounts (# in thousands)
1,9681,710


CASH MANAGEMENTAs of or for the
Three Months Ended
July 31,
(in $ millions unless otherwise noted)20262025
Cash management assets (off-balance sheet), beginning of the period$44,883 $43,774 
Cash management assets (off-balance sheet), end of the period44,857 46,579 
Average1
44,870 45,177 
Cash management revenue$61.8 $68.9 
Annualized cash management fee rate (in %) 2
0.55 %0.60 %


INVESTMENT ADVISORYAs of or for the
Three Months Ended
July 31,
(in $ millions unless otherwise noted)20262025
Investment advisory assets (off-balance sheet), beginning of the period$51,718 $37,085 
Investment advisory assets (off-balance sheet), end of the period54,133 41,596 
Average1
52,926 39,341 
Investment advisory revenue$28.8 $22.0 
Annualized investment advisory fee rate (in %) 2
0.22 %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 using actual year and actual quarter day counts 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
July 31,		Six Months Ended
July 31,
($ in thousands)
2026202520262025
GAAP operating expenses$75,087 $51,843 $151,023 $103,723 
Less: Stock-based compensation expense16,433 1,571 33,485 3,450 
Less: IPO-related service provider expense— — 929 — 
Adjusted operating expenses
$58,654 $50,272 $116,609 $100,273 

Adjusted EBITDA & Adjusted EBITDA Margin
Three Months Ended
July 31,		Six Months Ended
July 31,
($ in thousands)
2026202520262025
Net income$17,751 $34,741 $30,585 $60,688 
Net income margin19 %38 %17 %35 %
Add:
Interest expense255 99 507 166 
Provision for (benefit from) income taxes2,644 5,130 7,240 13,294 
Depreciation and amortization of property, software, and equipment, net1,237 1,859 2,671 3,706 
EBITDA (non-GAAP)$21,887 $41,829 $41,003 $77,854 
Stock-based compensation expense16,433 1,571 33,485 3,450 
Change in fair value of warrant liabilities and SAFEs(255)1,359 157 1,359 
IPO-related service provider expense— — 929 — 
Adjusted EBITDA (non-GAAP)$38,065 $44,759 $75,574 $82,663 
Adjusted EBITDA Margin (non-GAAP)41 %49 %41 %47 %


WEALTHFRONT CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(UNAUDITED)
Adjusted Free Cash Flow & Adjusted Free Cash Flow Conversion
Three Months Ended
July 31,		Six Months Ended
July 31,
(in thousands)2026202520262025
Net cash provided by operating activities$47,310 $38,924 $69,992 $77,405 
Divided by: Net income (loss)17,751 34,741 30,585 60,688 
Operating cash flow conversion
267%112%229%128%
Net cash provided by operating activities$47,310 $38,924 $69,992 $77,405 
Less: Capital expenditures(268)(421)(1,253)(632)
   Add: Change in temporary client funding receivables(18,749)334 2,261 4,343 
Adjusted free cash flow$28,293 $38,837 $71,001 $81,116 
Divided by: Adjusted EBITDA (non-GAAP)
38,065 44,759 75,574 82,663 
Adjusted free cash flow conversion74%87%94%98%
Net cash provided by (used in) investing activities$(268)$(421)$(1,253)$(632)
Net cash provided by (used in) financing activities$(23,575)$4,727 $(54,411)$4,883 

Earnings Presentation Q2 2027

 

Disclaimer Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements that involve substantial risks and uncertainties. All statements contained in this presentation other than statements of historical fact, including statements regarding our future operating results and financial condition, our business strategy and plans, market growth, and our 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 Annual Report on Form 10-K for the fiscal year ended January 31, 2026 filed with the SEC on April 24, 2026 and our most recent Quarterly Report on 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 presentation. 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 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 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, 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 presentation 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. Adjusted Free Cash Flow reflects net cash provided from operating activities, less (i) purchases of property, software, and equipment and (ii) capitalized internally developed software, plus (i) the change in temporary client funding receivables, which include (a) the change in direct deposit receivables and (b) the change in instant withdrawal receivables. We believe Adjusted 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 Adjusted 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. Adjusted Free Cash Flow Conversion reflects Adjusted Free Cash Flow divided by Adjusted EBITDA. Adjusted Operating Expenses reflect GAAP 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. 02

 

Q2 2027 Business Update 03Note: Years reflect calendar years. Enhanced the Digital Experience for Wealthfront Home Lending Launched a self-service scenarios tool that allows borrowers to explore custom loan configurations and lock in their rate autonomously online without loan officer intervention Rolled out smarter restricted stock unit (RSU) income verification processes that improves loan officer efficiency and allows borrowers to get an accurate rate quote more quickly and allows home buyers to get a faster pre-qualification Introduced streamlined intake flow that pre-fills relevant fields incorporating data from both Wealthfront accounts and linked accounts Expanded Availability of Wealthfront Home Lending Launched general availability of Wealthfront Home Lending in Texas in early May and California in early August Added to Suite of Family Wealth Management Offerings with Custodial Accounts Added Custodial Accounts to existing 529, joint, and trust accounts, expanding Wealthfront’s suite of family wealth management offerings. The account is one of the only custodial accounts designed to lower a child’s future taxes through Tax-Gain Harvesting C2024 C2025 C2026-TD Automated Bond Ladders S&P 500 Direct Free Instant Withdrawals Joint Access Joint Cash Account Shared Views & Checking Features Fully Paid Securities Lending Platform Referrals Fractional Shares for Automated Investing Accounts, IRAs, and Automated Bond Portfolios Nasdaq-100 Direct Home Mortgages Wealthfront Treasury Money Market Fund (WLTXX) Cross-Product Adoption Incentive Cash Category Goals & Recurring Cash-to- Category Transfers One-Tap-To-Invest in Stock Investing Accounts Custodial Accounts

 

Total Platform Assets (in $ B) $88.2 $92.8 $94.1 $96.6 $99.0 $46.6 $47.0 $45.4 $44.9 $44.9 $41.6 $45.8 $48.7 $51.7 $54.1 Q2’26 Q3’26 Q4’26 Q1’27 Q2’27 • Month-end Total Platform Assets of $99.0 billion were up 12% year-over-year (YoY). This included trailing twelve-month net deposits of $2.8 billion. • Investment Advisory Assets of $54.1 billion were up 30% YoY. • Cash Management Assets of $44.9 billion were down 4% YoY. 04Note: Fiscal quarters ended January 31, April 30, July 31, and October 31. Growth rates are year-over-year. Investment Advisory Cash Management +30% (4)% +12%

 

Total Net Deposits (in $ B) $3.7 $1.6 $0.6 $1.1 $(0.4) Q2’26 Q3’26 Q4’26 Q1’27 Q2’27 • Wealthfront generated $1.1 billion in net inflows across the platform in Q2 2027 driven by Investment Advisory net inflows of $1.1 billion, partially offset by Cash Management net withdrawals of $26 million. 05Note: Fiscal quarters ended January 31, April 30, July 31, and October 31.

 

1,710 1,785 1,843 1,900 1,968 Total Funded Accounts & Funded Clients (in 000s) +14% 1,318 1,378 1,417 1,458 1,507 Q2’26 Q3’26 Q4’26 Q1’27 Q2’27 • Funded accounts ended the quarter at 1.97 million, up 15% YoY, with funded clients of roughly 1.51 million, up 14% YoY, reflecting 1.3 funded accounts per funded client. • Q2 2027 was the strongest quarter of new funded Investment Advisory clients since Q1 2025. 06Note: Fiscal quarters ended January 31, April 30, July 31, and October 31. Growth rates are year-over-year. Ending Total Funded Clients Ending Total Funded +15% Accounts

 

$91.1 $93.2 $96.1 $90.5 $91.9 $81.5 $83.0 $86.6 $80.5 $81.1 89% 89% 90% 89% 88% Q2’26 Q3’26 Q4’26 Q1’27 Q2’27 Total Revenue & Gross Profit (in $ M) Gross profit margin Cost of Revenue Gross profit +1% Adjusted Operating Expenses (in $ M) $50.3 $53.7 $57.1 $58.0 $58.7 Q2’26 Q3’26 Q4’26 Q1’27 Q2’27 • Quarterly revenue of $91.9 million, up 1% YoY and quarterly gross profit of $81.1 million, down 1% YoY. • Cash Management revenue of $61.8 million, down 10% YoY, due primarily to a lower annualized Cash Management fee rate of 55 bps, down 6 bps driven primarily by the fee rate decline realized in converting annual percentage yields (APYs) to annual percentage rates (APRs) following the 75 bps in fed funds rate cuts versus the same period last year as well as client promotions. Investment Advisory revenue of $28.8 million, up 31% YoY, due primarily to higher average Investment Advisory balances up 35% YoY. • Strong gross profit margin of 88% down roughly 1% YoY. • Adjusted operating expenses were $58.7 million, up 17% YoY, due primarily to higher adjusted product development expense. • The increase in adjusted product development expense was primarily due to personnel- related expense, including increased headcount associated with the launch of Wealthfront Home Lending. +17% 07 (1)% Note: Fiscal quarters ended January 31, April 30, July 31, and October 31. Growth rates are year-over-year. Please refer to the Appendix for a reconciliation of non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP.

 

Adj. EBITDA (in $ M) & Adj. EBITDA Margin (in %) Adjusted EBITDA (15)% GAAP Diluted Net Income (Loss) (in $ M) & GAAP Diluted EPS (in $) • Adjusted EBITDA of $38.1 million was down 15% YoY and reflected an adjusted EBITDA margin of 41%, down 8 percentage points YoY. • The YoY decline in Adjusted EBITDA margin included the impact of a lower annualized Cash Management fee rate driven primarily by the fee rate decline realized in converting annual percentage yields (APYs) to annual percentage rates (APRs) following the 75 bps in fed funds rate cuts versus the same period last year and the impact of client promotions, as well as the continued organic investment into Wealthfront Home Lending. $44.8 $43.8 $44.2 $37.5 $38.1 49% 47% 46% 41% 41% Q2’26 Q3’26 Q4’26 Q1’27 Q2’27 • GAAP diluted net income of $17.6 million was down YoY driven primarily by higher RSU- related stock-based compensation expense recognized subsequent to the IPO in December 2025 and higher product development expense. The higher RSU-related stock-based compensation expense is due to the dual-trigger conditions that were satisfied upon the completion of the IPO in December 2025. • GAAP diluted earnings per share (EPS) of $0.10 was down YoY primarily due to the same factors noted above. 08 Note: Fiscal quarters ended January 31, April 30, July 31, and October 31. Growth rates are year-over-year. Please refer to the Appendix for a reconciliation of non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP. margin Adjusted EBITDA $34.7 $30.6 $12.8 $17.6 $(134.8) $0.24 $0.21 $(1.31) $0.07 $0.10 Q2’26 Q3’26 Q4’26 Q1’27 Q2’27 GAAP Diluted EPS income (loss) GAAP Diluted net

 

67 63 62 49 42 49 47 46 41 41 18 16 16 7 1 Q2’26 Q3’26 Q4’26 Q1’27 Q2’27 Rule of 40 (in Percentage Points) Revenue growth (in ppt) Adjusted EBITDA margin (in ppt) Adjusted Free Cash Flow ($ M) Adjusted Free Cash Flow Conversion (in %) $38.8 $39.5 $34.2 $42.7 $28.3 87% 90% 77% 114% 74% Q2’26 Q3’26 Q4’26 Q1’27 Q2’27 09 Note: Fiscal quarters ended January 31, April 30, July 31, and October 31. Rule of 40 figures may not equal the sum of subtotals due to rounding. On Adjusted Free Cash Flow, figures for Q2’26-Q4’26 are restated to reflect the inclusion of “Change in temporary client funding receivables” initially made in Q1’27. Please refer to the Appendix for a reconciliation of non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP. Adjusted free cash flow conversion Adjusted free cash flow LTM FCF conversion: 88%

 

Corporate Liquidity (in $ M) $272.7 $516.2 $690.8 $678.2 $703.3 $222.7 $266.2 $440.8 $428.2 $453.3 $50.0 $250.0 $250.0 $250.0 $250.0 Q2’26 Q3’26 Q4’26 Q1’27 Q2’27 10Note: Fiscal quarters ended January 31, April 30, July 31, and October 31. Corporate cash & cash equivalents Revolving credit facility (untapped) CAPITAL PRIORITIES Organic investments Total available liquidity Share repurchases M&A with a preference to ‘build’ versus ‘buy’ • Repurchased approximately $30 million of shares in the open market during Q2 2027. • Ended the quarter at $453 million in corporate cash & cash equivalents.

 

Appendix

 

(in $ thousands excluding EPS and shares) Q2’26 Q3’26 Q4’26 Q1’27 Q2’27 Revenue: Cash management 68,873 68,812 69,749 63,381 61,758 Investment advisory 22,040 24,182 25,803 26,244 28,804 Other revenue 210 226 584 859 1,312 Total revenue 91,123 93,220 96,136 90,484 91,874 Costs and operating expenses: Cost of revenue 9,587 10,178 9,574 9,964 10,764 Product development 21,227 20,922 150,056 33,715 34,009 General and administrative 8,873 15,404 114,984 16,921 15,685 Marketing 9,093 12,234 20,240 11,220 10,715 Operations and support 3,063 3,046 15,802 4,116 3,914 Total costs and operating expenses 51,843 61,784 310,656 75,936 75,087 Interest expense 99 217 508 252 255 Other expense (income), net (690) (3,526) (5,053) (3,134) (3,863) Income before income taxes 39,871 34,745 (209,975) 17,430 20,395 Provision for (benefit from) income taxes 5,130 3,844 (76,320) 4,596 2,644 Net income (loss) 34,741 30,901 (133,655) 12,834 17,751 Net income (loss) attributable to common shareholders: Net income (loss) attributable to common stockholders, basic 34,741 30,901 (133,655) 12,834 17,751 Net income (loss) attributable to common stockholders, dilutive 34,741 30,573 (134,774) 12,823 17,562 Earnings per share (EPS): Basic 0.86 0.72 (1.30) 0.08 0.12 Diluted 0.24 0.21 (1.31) 0.07 0.10 Weighted-average shares outstanding used in computing EPS (in shares): Basic 40,497,003 42,872,653 102,601,387 151,724,284 150,094,381 Diluted 141,996,997 142,510,293 102,830,296 175,500,854 174,051,608 Income Statement 12

 

(in $ thousands unless otherwise noted) Q2’26 Q3’26 Q4’26 Q1’27 Q2’27 Total revenue 91,123 93,220 96,136 90,484 91,874 Less: Cost of revenue 9,587 10,178 9,574 9,964 10,764 Gross profit 81,536 83,042 86,562 80,520 81,110 Gross profit margin (in %) 89 % 89 % 90 % 89 % 88 % Gross Profit 13

 

(in $ thousands unless otherwise noted) Q2’26 Q3’26 Q4’26 Q1’27 Q2’27 Net cash provided by operating activities 38,924 41,478 33,306 22,683 47,310 Divided by: Net income 34,741 30,901 (133,655) 12,834 17,751 Operating cash flow conversion 112 % 134 % NM 177 % 267 % Net cash provided by operating activities 38,924 41,478 33,306 22,683 47,310 Less: Capital expenditures (421) (198) (308) (985) (268) Add: Change in temporary client funding receivables 334 (1,774) 1,244 21,010 (18,749) Adjusted free cash flow1 38,837 39,506 34,242 42,708 28,293 Divided by: Adjusted EBITDA (non-GAAP) 44,759 43,813 44,210 37,510 38,065 Adjusted free cash flow conversion2 87 % 90 % 77 % 114 % 74 % Non-GAAP Reconciliation: Adjusted Free Cash Flow 15 1 Adjusted free cash flow reflects 1) Net cash provided by operating activities less 2) Capital expenditures plus 3) the Change in temporary client funding receivables, which includes i) the change in direct deposit receivables and ii) the change in instant withdrawal receivables. 2 Adjusted free cash flow conversion equals 1) Adjusted free cash flow divided by 2) Adjusted EBITDA. Note: Prior period figures are restated to reflect the inclusion of “Change in temporary client funding receivables” initially made in Q1’27. 14

 

(in $ thousands unless otherwise noted) Q2'26 Q3'26 Q4'26 Q1'27 Q2'27 Product development 1,046 850 124,266 10,120 9,698 General and administrative 291 7,049 102,992 5,721 5,590 Marketing 77 62 8,242 240 378 Operations and support 157 127 12,788 972 767 Total stock-based compensation expense 1,571 8,088 248,288 17,053 16,433 Capitalized stock-based compensation expense — — — — — Total stock-based compensation expense, net of amounts capitalized 1,571 8,088 248,288 17,053 16,433 Non-GAAP Reconciliation: Expense Detail (in $ thousands unless otherwise noted) Q2'26 Q3'26 Q4'26 Q1'27 Q2'27 GAAP operating expenses 51,843 61,784 310,656 75,936 75,087 Less: Stock-based compensation expense 1,571 8,088 248,288 17,053 16,433 Less: Employer payroll taxes on IPO-triggered vesting of equity awards — — 5,275 — — Less: IPO-related service provider expense — — — 929 — Adjusted operating expenses 50,272 53,696 57,093 57,954 58,654 15

 

(in $ thousands unless otherwise noted) Q2'26 Q3'26 Q4'26 Q1'27 Q2'27 Net income (loss) 34,741 30,901 (133,655) 12,834 17,751 Net margin (in %) 38 % 33 % (139) % 14 % 19 % Add: Interest expense 99 217 508 252 255 Provision for (benefit from) income taxes 5,130 3,844 (76,320) 4,596 2,644 Depreciation and amortization of property, software, and equipment, net 1,859 1,860 1,829 1,434 1,237 EBITDA (non-GAAP) 41,829 36,822 (207,638) 19,116 21,887 Stock-based compensation expense 1,571 8,088 248,288 17,053 16,433 Change in fair value of warrant liabilities and SAFEs 1,359 (1,097) (1,712) 412 (255) Employer payroll taxes on IPO-triggered vesting of equity awards — — 5,275 — — IPO-related service provider expense — — — 929 — Adjusted EBITDA (non-GAAP) 44,759 43,813 44,210 37,510 38,065 Adjusted EBITDA Margin (non-GAAP) [in %] 49 % 47 % 46 % 41 % 41 % Non-GAAP Reconciliation: Adjusted EBITDA 16

 

(in $ millions unless otherwise noted) Q2'26 Q3'26 Q4'26 Q1'27 Q2'27 Platform assets $ 88,175 $ 92,821 $ 94,106 $ 96,600 $ 98,990 Cash management 46,579 47,011 45,360 44,883 44,857 Investment advisory 41,596 45,811 48,745 51,718 54,133 Net deposits $ 3,662 $ 1,568 $ (360) $ 554 $ 1,053 Cash management 2,806 432 (1,651) (477) (26) Investment advisory 856 1,136 1,290 1,031 1,079 Funded accounts (in # thousands) 1,710 1,785 1,843 1,900 1,968 Funded clients (# in thousands) 1,318 1,378 1,417 1,458 1,507 Key Business Metrics (1 of 2) 17Note: Sum of subtotals may not equal totals due to rounding.

 

(in $ millions unless otherwise noted) Q2'26 Q3'26 Q4'26 Q1'27 Q2'27 Cash management assets (off-balance sheet), beginning of the period 43,774 46,579 47,011 45,360 44,883 Cash management assets (off-balance sheet), end of the period 46,579 47,011 45,360 44,883 44,857 Average1 45,177 46,795 46,186 45,121 44,870 Cash management revenue 68.9 68.8 69.7 63.4 61.8 Annualized cash management fee rate (in %) 2 0.60 % 0.58 % 0.60 % 0.58 % 0.55 % Investment advisory assets (off-balance sheet), beginning of the period 37,085 41,596 45,811 48,745 51,718 Investment advisory assets (off-balance sheet), end of the period 41,596 45,811 48,745 51,718 54,133 Average1 39,341 43,704 47,278 50,232 52,926 Investment advisory revenue 22.0 24.2 25.8 26.2 28.8 Annualized investment advisory fee rate (in %) 2 0.22 % 0.22 % 0.22 % 0.21 % 0.22 % Key Business Metrics (2 of 2) 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 using actual year and actual quarter day counts and dividing by the applicable average asset balance. Note: Sum of subtotals may not equal totals due to rounding. Note: Sum of subtotals may not equal totals due to rounding.Note: Sum of subtotals may not equal totals due to rounding. 18

 

Illustrative GAAP Diluted Weighted-Average Shares Outstanding Sensitivity Assumed Average Share Price Illustrative for F2Q27 (shares in millions) $10.00 173.8 ACTUAL $10.20 174.1 $12.00 176.0 $14.00 177.6 $16.00 178.9 $18.00 179.8 $20.00 180.6 19 NOTE: The GAAP diluted weighted-average shares outstanding and assumed share prices provided in this table are being provided for illustrative purposes only and do not purport to represent what GAAP diluted weighted-average shares outstanding or our share price may be for any future period or would have been for F2Q27 given the impact of share price to other related factors such as share repurchases. The trading price of our common stock could be volatile, and there can be no guarantee that actual trading prices will be at, below, or above the assumed prices provided in the presented table.

 

Definitions 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 our clients and we have placed into products on our platform, net of withdrawals, over a defined period of time. Beginning with our fiscal second quarter 2027 earnings report, we include deposit matches from client promotions within the presented amounts starting with June 2026, which aligns with the launch of Wealthfront Custodial Accounts and its related promotion. 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. 20

 

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