Wealthfront (WLTH) investor relations material

Executive summary

• Achieved record quarterly revenue of $93.2 million, up 16% year-over-year, and record gross profit of $83 million, up 15% year-over-year, with net income of $30.9 million and a net income margin of 33%.

• Total platform assets reached $92.8 billion, up 21% year-over-year, driven by both Cash Management and Investment Advisory growth.

• Funded clients grew 20% year-over-year to 1.38 million, with 1.78 million funded accounts, reflecting strong client acquisition and engagement.

• Launched new products including home lending, Nasdaq-100 Direct, and the first home mortgage, expanding the product suite and platform offerings.

• Maintained high client retention and growth through a digital-first experience, word-of-mouth referrals, and targeted lifecycle marketing.

Financial highlights

• Cash Management assets grew 14% year-over-year to $47 billion; Investment Advisory assets grew 31% to $45.8 billion.

• Cash Management revenue was $68.8 million (+14% YoY); Investment Advisory revenue was $24.2 million (+26% YoY).

• Adjusted EBITDA was $43.8 million, up 24% year-over-year, with a 47% margin; GAAP net income was $30.9 million (+3% YoY); diluted EPS was $0.21.

• Free cash flow was $41.3 million, with a 94% conversion ratio; ended the quarter with $266 million in cash and equivalents, rising to over $400 million post-IPO.

• Adjusted operating expenses were $53.7 million, up 11% year-over-year, mainly due to higher product development and share-based compensation costs.

Outlook and guidance

• No quarterly guidance provided; monthly metrics will be reported, with strong asset growth continuing into November and December.

• Ongoing nationwide rollout of Home Lending, with licenses covering the majority of client states and a focus on product innovation and liquidity improvement.

• Focus remains on cross-product adoption and asset retention during interest rate transition periods, leveraging a broad product suite.