Wealthfront Corporation (WLTH) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: N/A
• Average Volume (3M): 4.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.78
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 359
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 150,120,380
• 10 Day Avg. Volume: 4,168,691
• 30 Day Avg. Volume: 4,168,691
• PEG Ratio: 0.07
• Price to Book (P/B): 8.56
• Price to Sales (P/S): 6.72
• P/FCF Ratio: 16.93
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 2.93
• Enterprise Value/Gross Profit: 3.55
• Enterprise Value/Ebitda: 7.34
• 1Y Price Target: $15.71
• Price Target Upside: 80.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $9.50 ▲(9.45% Upside)

Strong financial performance (high growth, expanding profitability, strong cash generation, and much lower leverage) is the primary positive. The score is held back by weak technicals (price below the 20-day average with deeply oversold momentum) and limited valuation data due to missing P/E and dividend yield.

Positive Factors

Revenue Growth

Sustained 42.5% revenue growth to $308.9M in 2025 indicates strong demand and product-market fit. Over the next several months this growth underpins reinvestment in product and distribution, supports scaling economics, and strengthens competitive positioning if trends persist.

Cash Generation & Conversion

Robust operating cash flow and near-1.0x free-cash-flow-to-net-income conversion show earnings backed by real cash. This durable cash generation improves capacity to fund growth, reduces external financing reliance, and enhances resilience to shocks over a multi-month horizon.

Balance Sheet Strength

A dramatic reduction in debt and a materially larger equity base meaningfully lower financial risk and increase strategic optionality. Improved leverage and capital cushion support investment, M&A flexibility, and withstands near-term volatility while preserving long-term solvency.

Negative Factors

Margin Sustainability Risk

The sharp jump to a ~63% net margin in 2025 may reflect non-recurring items or one-time gains. If margins revert toward historical levels, reported profitability, cash conversion and reinvestment capacity could decline materially over the coming months.

Limited Cash-Flow History

Strong recent FCF is encouraging but is based on only two annual observations. That limited sample reduces confidence in durability: short multi-year cycles or one-off timing effects could materially change cash generation and planning assumptions within the next 2–6 months.

ROE Volatility Risk

Exceptionally high ROE signals outsized profitability today but also sensitivity: if earnings normalize or one-offs unwind, ROE and shareholder returns could compress rapidly. This creates risk to sustainable capital efficiency over the intermediate term.

Wealthfront Corporation Business Overview & Revenue Model

Company Description

Wealthfront Corporation is a privately owned investment manager. It primarily provides its services to individuals. It also caters to high net worth individuals, charitable organizations, and corporations. The firm invests in the public equity and fixed income funds. It also invests in mutual funds and exchange traded funds. It conducts in-house research to make its investments. Wealthfront Corporation was formerly known as Wealthfront Inc. and is based in Redwood City, California with an additional office in Palo Alto, California.

How the Company Makes Money

Wealthfront Corporation Financial Statement Overview

Summary

Strong revenue growth and sharply higher profitability (2025 revenue up ~42.5% YoY; EBIT margin ~39%; net margin ~63%) supported by excellent cash conversion (FCF roughly matches net income) and much lower leverage (debt down to $13.4M; debt-to-equity ~0.06). Main risk is sustainability of unusually high 2025 margins, which may include non-recurring benefits.

Income Statement

Profitability is very strong, with 2025 revenue of $308.9M up ~42.5% year over year and meaningfully higher margins versus 2024 (net margin ~63% vs ~36%). Operating profitability is also robust (EBIT margin ~39% in 2025), supporting high earnings power. The main weakness is that the 2025 net margin is unusually high for the industry and could be influenced by non-recurring items, so sustainability bears watching despite the strong trajectory.

Balance Sheet

The balance sheet improved dramatically year over year: total debt fell to $13.4M from $87.6M and leverage is now very low (debt-to-equity ~0.06 vs ~1.89 in 2024), indicating substantially reduced financial risk. Equity also expanded strongly ($242.5M vs $46.3M), improving the capital cushion. A potential watch item is that returns on equity are extremely high in both years, which can reflect outsized profitability but can also be volatile if earnings normalize.

Cash Flow

Cash generation is strong and scaling: operating cash flow rose to $123.2M (from $72.9M) and free cash flow to $122.6M (from $72.4M), with free cash flow growth of ~69% in 2025. Cash conversion is excellent, with free cash flow roughly matching net income in both periods (~1.0x), suggesting earnings are supported by real cash. The key weakness is limited visibility into cash flow durability beyond these periods since only two annual data points are provided.

Breakdown	TTM	Dec 2024	Dec 2023
Income Statement
Total Revenue	353.66M	308.86M	216.71M
Gross Profit	292.53M	277.89M	193.82M
EBITDA	141.35M	127.71M	87.61M
Net Income	127.06M	194.45M	76.97M
Balance Sheet
Total Assets	810.64M	435.21M	231.15M
Cash, Cash Equivalents and Short-Term Investments	488.19M	180.00M	102.21M
Total Debt	11.36M	13.35M	87.62M
Total Liabilities	458.08M	192.67M	184.81M
Stockholders Equity	352.56M	242.54M	46.34M
Cash Flow
Free Cash Flow	107.05M	122.62M	72.42M
Operating Cash Flow	107.72M	123.15M	72.92M
Investing Cash Flow	-1.53M	-5.84M	-5.16M
Financing Cash Flow	-10.32M	-58.55M	-39.50M

Wealthfront Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDVT	73 Outperform	$640.73M	59.05	11.58%	―	22.27%	117.93%
WLTH	67 Neutral	$1.30B	―	―	―	―	―
OPFI	67 Neutral	$822.17M	-12.35	9.19%	―	9.63%	-112.71%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FRGE	52 Neutral	$618.85M	-9.07	-28.65%	―	16.40%	22.80%
BLND	52 Neutral	$618.20M	-23.94	―	―	-15.41%	71.18%
ALIT	47 Neutral	$815.80M	―	-66.86%	8.12%	-12.37%	-754.18%