Wealthfront Corporation: Wealthfront Reports Fiscal Third Quarter 2026 Results with Record Total Revenue of $93.2 Million and Net Income of $30.9 Million

Revenue up 16% to a record $93.2 million
Net income of $30.9 million with a Net income margin of 33%
Total Platform Assets up 21% to a record $92.8 billion
Adjusted EBITDA¹ up 24% to $43.8 million with an Adjusted EBITDA margin¹ of 47%

PALO ALTO, Calif., Jan. 12, 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 third quarter ended October 31, 2025.

David Fortunato - CEO, President & Director: "We continued to execute in our core business driving Platform Assets to a record at quarter-end amidst a dynamic macro environment. This included the best quarter in net cross account transfers from Cash Management to Investment Advisory in the company's history. We achieved this while accelerating the pace of product innovation including the launch of Nasdaq-100 Direct and the origination of our first home mortgage."

Alan Imberman - CFO & Treasurer: "Our fiscal third quarter results highlighted the purposeful balance of the business model between Cash Management and Investment Advisory. We drove profitable growth and another quarter of strong free cash flow generation, while also improving our liquidity profile by increasing the capacity on our revolving credit facility from $50 million to $250 million."

Fiscal Third Quarter 2026 Results Summary

	Three Months Ended October 31,											Nine Months Ended October 31,
($ in thousands, except per share amounts)		2025				2024			% change				2025				2024			% change
GAAP
Total revenue	-	93,220			-	80,309			16	-		-	268,857			-	226,179			19	-
Net income		30,901				30,046			3	-			91,589				162,355			(44)	-
Net income margin			(12,593	-
Additional paid-in capital		146,559				127,862
Accumulated deficit		(8,346	-			(99,935	-
Total stockholders' equity	-	125,359			-	15,338
Total liabilities, redeemable convertible preferred stock, and stockholders' equity	-	810,641			-	435,206

WEALTHFRONT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
	Three Months Ended October 31,								Nine Months Ended October 31,
($ in thousands)		2025				2024				2025				2024
Revenue:
Cash management	-	68,812			-	60,157			-	201,951			-	168,890
Investment advisory		24,182				19,141				66,096				53,413
Other revenue		226				1,011				810				3,876
Total revenue		93,220				80,309				268,857				226,179
Costs and operating expenses:
Cost of revenue		10,178				7,988				28,433				22,421
Product development		20,922				17,063				62,381				46,430
General and administrative		15,404				7,365				34,144				21,251
Marketing		12,234				15,812				31,515				37,721
Operations and support		3,046				2,705				9,034				7,780
Total costs and operating expenses		61,784				50,933				165,507				135,603
Interest expense		217				1,031				383				2,557
Other income, net		(3,526	-			(1,182	-			(5,760	-			(19,754	-
Income before income taxes		34,745				29,527				108,727				107,773
Provision for (benefit from) income taxes		3,844				(519	-			17,138				(54,582	-
Net income	-	30,901			-	30,046			-	91,589			-	162,355
Earnings per share (EPS):
Basic	-	0.72			-	0.77			-	2.22			-	4.17
Diluted	-	0.21			-	0.22			-	0.64			-	1.08
Weighted-average shares outstanding used in computing EPS:
Basic		42,872,653				38,856,370				41,224,226				38,951,008
Diluted		142,510,293				138,336,934				142,434,669				138,890,885

Stock-Based Compensation by Type
	Three Months Ended October 31,							Nine Months Ended October 31,
($ in thousands)		2025			2024				2025			2024
Product development	-	851		-	1,832			-	3,148		-	5,693
General and administrative		7,047			511				7,687			1,622
Marketing		62			134				230			427
Operations and support		128			275				473			860
Stock-based compensation expense, net of amounts capitalized		8,088			2,752				11,538			8,602
Capitalized stock-based compensation expense		-			(250	-			-			(1,358	-
Total stock-based compensation expense	-	8,088		-	2,502			-	11,538		-	7,244

WEALTHFRONT CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
	Three Months Ended October 31,								Nine Months Ended October 31,
($ in thousands)		2025				2024				2025				2024
Operating activities
Net income	-	30,901			-	30,046			-	91,589			-	162,355
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, software, and equipment, net		1,862				1,649				5,568				4,457
Non-cash lease expense		813				771				2,421				2,283
Cash interest paid on convertible note		-				-				-				(904	-
Non-cash interest expense on related-party long-term debt		-				765				-				2,101
Deferred income taxes		4,767				6				14,494				(59,534	-
Stock-based compensation expense		8,086				2,503				11,536				7,244
Impairment of internally developed software		-				-				709				-
Change in fair value of convertible note		-				-				-				(16,927	-
Change in fair value of warrant liabilities		(437	-			189				(23	-			458
Change in fair value of simple agreement for future equity		(660	-			375				285				924
Changes in operating assets and liabilities:
Due from clients		(33,291	-			(16,867	-			(72,552	-			(25,842	-
Accounts receivable		(1,126	-			(1,736	-			(2,944	-			(7,299	-
Other current and noncurrent assets		(2,291	-			(3,430	-			(13,373	-			(4,304	-
Accounts payable		3,161				409				3,126				3,258
Accrued liabilities		(4,173	-			1,408				4,860				5,459
Due to clients		1,498				3,195				2,961				6,304
Payable to clearing broker		33,293				16,727				72,952				25,724
Lease liabilities		(924	-			(852	-			(2,725	-			(2,522	-
Net cash provided by operating activities	-	41,478			-	35,158			-	118,883			-	103,235
Investing activities
Purchases of property, software, and equipment		(198	-			(272	-			(830	-			(502	-
Capitalized internally developed software		-				(815	-			-				(4,395	-
Net cash used in investing activities	-	(198	-		-	(1,087	-		-	(830	-		-	(4,897	-
Financing activities
Repayment of convertible note		-				-				-				(29,122	-
Proceeds from exercise of stock options, including early exercises		2,040				2,159				7,161				2,293
Repurchase of common stock		(27	-			(23,482	-			(265	-			(23,482	-
Net cash provided by (used in) financing activities	-	2,013			-	(21,323	-		-	6,896			-	(50,311	-
Net increase in cash and cash equivalents, cash segregated and on deposit for regulatory purposes, and restricted cash		43,293				12,748				124,949				48,027
Cash and cash equivalents, cash segregated and on deposit for regulatory purposes, and restricted cash at the beginning of the period		236,209				131,071				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	-	279,502			-	143,819			-	279,502			-	143,819

WEALTHFRONT CORPORATION KEY BUSINESS METRICS
TOTAL	As of or for the Three Months Ended October 31,
(in $ millions unless otherwise noted)		2025			2024
Platform assets	-	92,821		-	76,496
Cash management		47,011			41,400
Investment advisory		45,810			35,096
Net deposits	-	1,568		-	4,394
Funded clients (# in thousands)		1,378			1,149
Funded accounts (# in thousands)		1,785			1,488

CASH MANAGEMENT	As of or for the Three Months Ended October 31,
(in $ millions unless otherwise noted)		2025				2024
Cash management assets (off-balance sheet), beginning of the period	-	46,579			-	38,085
Cash management assets (off-balance sheet), end of the period		47,011				41,400
Average1		46,795				39,743
Cash management revenue	-	68.8			-	60.2
Annualized cash management fee rate (in %)2		0.58-				0.60-

INVESTMENT ADVISORY	As of or for the Three Months Ended October 31,
(in $ millions unless otherwise noted)		2025				2024
Investment advisory assets (off-balance sheet), beginning of the period	-	41,596			-	33,275
Investment advisory assets (off-balance sheet), end of the period		45,811				35,096
Average1		43,704				34,186
Investment advisory revenue	-	24.2			-	19.1
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 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 October 31,						Nine Months Ended October 31,
($ in thousands)		2025			2024			2025			2024
GAAP operating expenses	-	61,784		-	50,933		-	165,507		-	135,603
Less: Stock-based compensation expense		8,088			2,502			11,539			7,244
Adjusted operating expenses	-	53,696		-	48,431		-	153,968		-	128,359

Adjusted EBITDA & Adjusted EBITDA Margin
	Three Months Ended October 31,								Nine Months Ended October 31,
($ in thousands)		2025				2024				2025				2024
Net income	-	30,901			-	30,046			-	91,589			-	162,355
Net income margin		33%				37%				34%				72%
Add:
Interest expense		217				1,031				383				2,557
Provision for (benefit from) income taxes		3,844				(519	-			17,138				(54,582	-
Depreciation and amortization of property, software, and equipment, net		1,860				1,649				5,568				4,457
EBITDA (non-GAAP)	-	36,822			-	32,207			-	114,678			-	114,787
Stock-based compensation expense		8,088				2,502				11,539				7,244
Change in fair value of convertible note, warrant liabilities, and SAFEs		(1,097	-			564				262				(15,545	-
Adjusted EBITDA (non-GAAP)	-	43,813			-	35,273			-	126,479			-	106,486
Adjusted EBITDA Margin (non-GAAP)		47-				44-				47-				47-

Incremental Adjusted EBITDA Margin
	Three Months Ended October 31,							Nine Months Ended October 31,
($ in thousands)		2025				2024			2025				2024
Total revenue	-	93,220			-	80,309		-	268,857			-	226,179
(a) 2025 change versus prior year period		12,911			NA				42,678			NA
Adjusted EBITDA (non-GAAP)	-	43,813			-	35,273		-	126,479			-	106,486
(b) 2025 change versus prior year period		8,540			NA				19,993			NA
Incremental adjusted EBITDA margin (b/a)		66-							47-

Free Cash Flow & Free Cash Flow Conversion
	Three Months Ended October 31,								Nine Months Ended October 31,
(in thousands)		2025				2024				2025				2024
Net cash provided by operating activities	-	41,478			-	35,158			-	118,883			-	103,235
Divided by: Net income		30,901				30,046				91,589				162,355
Operating cash flow conversion		134-				117-				130-				64-
Net cash provided by operating activities	-	41,478			-	35,158			-	118,883			-	103,235
Less: Capital expenditures		(198	-			(1,087	-			(830	-			(4,897	-
Free cash flow	-	41,280			-	34,071			-	118,053			-	98,338
Divided by: Adjusted EBITDA (non-GAAP)		43,813				35,273				126,479				106,486
Free cash flow conversion		94-				97-				93-				92-