Wealthfront Corporation (WLTH)
NASDAQ:WLTH
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Wealthfront Corporation
(NASDAQ:WLTH)
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Rating:65Neutral
Price Target:
$10.50
▲(34.44% Upside)
Action:ReiteratedDate:03/13/26
WLTH scores positively on fundamentals driven by strong revenue growth, robust and rising free cash flow, and an improved balance sheet, with supportive (though not risk-free) earnings-call tone and guidance. The score is held back primarily by weak technical momentum (below key moving averages with negative MACD) and the sharp 2026 GAAP profitability reversal, while valuation appears reasonable but not especially compelling without a dividend.
Positive Factors
Strong free cash flow generation
Wealthfront's sustained, large free cash flow (FCF ~$151M in 2026) and strong operating cash generation provide durable financial flexibility. High cash conversion supports reinvestment, buybacks, and cushioning versus cyclical revenue swings, improving long-term capital allocation optionality.
Negative Factors
Earnings and margin volatility
The sharp 2026 EBIT and net-income reversal signals meaningful earnings volatility. Even if partly driven by one-offs, swings complicate multi-period profit visibility and planning. Persistent volatility can raise funding costs, constrain strategic investments, and weaken stakeholder confidence.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Wealthfront's sustained, large free cash flow (FCF ~$151M in 2026) and strong operating cash generation provide durable financial flexibility. High cash conversion supports reinvestment, buybacks, and cushioning versus cyclical revenue swings, improving long-term capital allocation optionality.
Read all positive factors
Wealthfront Corporation (WLTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.44B
Dividend YieldN/A
Average Volume (3M)1.76M
Price to Earnings (P/E)―
Beta (1Y)1.20
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees359
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.31
Shares Outstanding150,120,380
10 Day Avg. Volume2,695,488
30 Day Avg. Volume1,760,748
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.80
Price to Sales (P/S)1.35
P/FCF Ratio3.26
Enterprise Value/Market Cap0.69
Enterprise Value/Revenue2.70
Enterprise Value/Gross Profit7.21
Enterprise Value/Ebitda-10.31
Forecast
1Y Price Target
$12.29Price Target Upside57.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.57
Revenue Forecast (FY)$399.26M
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...
How the Company Makes Money
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Wealthfront Corporation Earnings Call Summary
Earnings Call Date:Mar 11, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jan 18, 2027
Earnings Call Sentiment Positive
The call portrayed strong top-line and operational momentum with record revenue, adjusted EBITDA, platform assets, client and account growth, and continued product innovation (cash APY increases, direct-deposit incentive, WLTX X fund, fractional shares, and early home lending). Temporary and largely explainable headwinds included sizeable January cash outflows related to rate cuts and seasonality, GAAP losses driven by one-time IPO-related stock compensation, near-term fee-rate pressure from incentives, and early-stage home lending and money-market fund ramp. On balance, the positive growth, profitability on an adjusted basis, robust free cash flow, and a debt-free balance sheet outweighed the transitory and one-time challenges outlined.Positive Updates
Record Platform Assets and Asset Growth
Total platform assets grew 17% year-over-year to a record $94.1 billion at fiscal year-end and reached $95.2 billion at the February month-end.
Negative Updates
Q4 and January Cash Management Outflows
The year included $400 million of net outflows in Q4. Cash management experienced large net outflows in January of $840 million; although improved to $145 million net outflows in February, tax-season outflows are expected to resume (April 2025 outflows were $537 million and the company expects a larger figure this year given asset growth).
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Q4-2026 Updates
Positive
Negative
Record Platform Assets and Asset Growth
Total platform assets grew 17% year-over-year to a record $94.1 billion at fiscal year-end and reached $95.2 billion at the February month-end.
Read all positive updates
Company Guidance
Guidance highlights: Wealthfront expects a first‑quarter annualized cash‑management fee rate of 57–58 basis points (after the Jan. 30 +5bp APY pass‑through and a new 25bp direct‑deposit incentive), anticipates adjusted‑EBITDA margins to decline sequentially but remain above 40% in Q1 FY27, and warns of significant seasonal cash‑management net outflows starting in March through the April 15 tax deadline (April 2025 outflows were $537M and this year’s outflows may be larger given higher cash balances). The company authorized $100M of share repurchases, plans to expand home‑lending to general availability in Colorado (and Texas/California later this year) targeting mortgage rates at least 50bps below the national average, and pointed to continued operational momentum (Feb platform assets $95.2B, investment‑advisory AUM $50.0B with $416M net deposits in Feb, cash management AUM $45.2B with Feb net outflows $145M and cumulative cash deposits positive since Feb 16).Wealthfront Corporation Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
76
Positive
Cash Flow
86
Very Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 364.99M | 308.86M | 216.71M |
| Gross Profit | 82.32M | 277.89M | 193.82M |
| EBITDA | -92.96M | 127.71M | 87.61M |
| Net Income | -42.07M | 194.45M | 76.97M |
Balance Sheet | |||
| Total Assets | 1.42B | 435.21M | 231.15M |
| Cash, Cash Equivalents and Short-Term Investments | 966.06M | 180.00M | 102.21M |
| Total Debt | 10.39M | 13.35M | 87.62M |
| Total Liabilities | 801.04M | 192.67M | 184.81M |
| Stockholders Equity | 614.69M | 242.54M | 46.34M |
Cash Flow | |||
| Free Cash Flow | 151.05M | 122.62M | 72.42M |
| Operating Cash Flow | 152.19M | 123.15M | 72.92M |
| Investing Cash Flow | -1.14M | -5.84M | -5.16M |
| Financing Cash Flow | 148.19M | -58.55M | -39.50M |
Wealthfront Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $500.76M | 60.77 | 13.47% | ― | 22.27% | 117.93% | |
70 Outperform | $640.14M | 10.53 | 73.23% | ― | 9.63% | -112.71% | |
65 Neutral | $1.44B | -11.70 | -9.90% | ― | ― | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
48 Neutral | $514.23M | -115.75 | -12.90% | ― | -15.41% | 71.18% | |
47 Neutral | $294.40M | -0.33 | -119.20% | 8.12% | -12.37% | -754.18% |
* Technology Sector Average
WLTH
Wealthfront Corporation
9.57
-4.62
-32.56%
RDVT
Red Violet
35.49
-0.04
-0.11%
ALIT
Alight
0.55
-4.12
-88.23%
OPFI
OppFi
7.52
-0.64
-7.84%
BLND
Blend Labs
2.00
-1.28
-39.02%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.