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Wealthfront Corporation
(NASDAQ:WLTH)
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Rating:59Neutral
Price Target:
$9.00
▼(-18.63% Downside)
Action:Reiterated
Date:06/27/26
The score is anchored by a mixed financial profile: strong growth, low leverage, and solid cash generation are offset by a meaningful TTM profitability reversal and slightly weakening FCF growth. Technical indicators are notably weak (below key moving averages with negative MACD), while the latest earnings call was generally positive but included guidance for near-term margin and cash-flow conversion pressure. Valuation is less supportive due to a negative P/E and no provided dividend yield.
Positive Factors
Low Leverage / Strong Balance Sheet
Extremely low leverage and a sizable equity base give Wealthfront durable financial flexibility to fund product rollouts, withstand rate/macro shocks, and support buybacks or opportunistic investments without near-term refinancing risk, strengthening long-term optionality.
Negative Factors
Profitability Deterioration
A sharp swing to negative operating and net margins signals structural pressure on profitability. Unless cost structure or pricing materially improves, ongoing operating losses can erode returns, constrain reinvestment capacity, and limit shareholder value creation over a multi-quarter horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage / Strong Balance Sheet
Extremely low leverage and a sizable equity base give Wealthfront durable financial flexibility to fund product rollouts, withstand rate/macro shocks, and support buybacks or opportunistic investments without near-term refinancing risk, strengthening long-term optionality.
Read all positive factors
Wealthfront Corporation (WLTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.37B
Dividend YieldN/A
Average Volume (3M)1.83M
Price to Earnings (P/E)―
Beta (1Y)2.08
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees359
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.77
Shares Outstanding149,361,220
10 Day Avg. Volume3,498,183
30 Day Avg. Volume1,834,230
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 Cap0.61
Enterprise Value/Revenue2.23
Enterprise Value/Gross Profit8.20
Enterprise Value/Ebitda-7.51
Forecast
1Y Price Target
$11.90Price Target Upside7.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.37
Revenue Forecast (FY)$379.50M
Wealthfront Corporation Business Overview & Revenue Model
Company Description
Wealthfront Corporation operates as a privately held asset management firm. While primarily serving individual investors, its client base also extends to high-net-worth individuals, charitable organizations, and corporate entities. The company bui...
How the Company Makes Money
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Wealthfront Corporation Earnings Call Summary
Earnings Call Date:Jun 04, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Jan 18, 2027
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial picture: strong asset growth (notably in investment advisory), record platform assets, accelerating cross-product adoption, continued product innovation (including early Home Lending progress), solid cash generation and a strong Rule of 40 performance. Headwinds were acknowledged — seasonal April cash outflows, modest cash management fee pressure, elevated operating expenses as the company invests in product development and Home Lending, and timing/macro sensitivity around mortgage scaling. On balance, the positive growth, profitability metrics, cash generation, and progress on strategic initiatives outweighed the transitory and investment-driven headwinds.Positive Updates
Record Platform Assets and Strong Asset Growth
Total platform assets reached a record $96.6 billion at quarter end, up 19% year-over-year; May month-end record of $99 billion.
Negative Updates
April Cash Management Net Withdrawals
Cash management experienced $577 million in net withdrawals in April (seasonality/tax season), exceeding last April's $538 million and reducing quarterly net deposit totals; management characterized this as expected seasonality.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Platform Assets and Strong Asset Growth
Total platform assets reached a record $96.6 billion at quarter end, up 19% year-over-year; May month-end record of $99 billion.
Read all positive updates
Company Guidance
Wealthfront guided to modest near‑term margin compression as it scales Wealthfront Home Lending and funds incentives, saying adjusted EBITDA margins should be closer to ~40% (versus prior 45–47%) and that adjusted free cash flow conversion will be lower in fiscal Q2 (due to the July payout of 35% of accrued cash bonuses); management also cited a May‑end run‑rate annualized cash management fee of 54 bps (56 bps EFFR‑neutral) versus a Q1 reported cash fee of 58 bps (in the 57–58 bps range) and reiterated that the 25 bps cross‑product incentive remains accretive. Operational and financial context accompanying that guidance included total platform assets of $96.6B at quarter end and $99B at May end (+19% YoY), investment advisory assets $51.7B (+39% YoY), cash management assets $44.9B (+3% YoY), ~1.46M funded clients and ~1.9M funded accounts (+15% YoY), Q1 total net deposits $554M (April cash withdrawals $577M), May net deposits $447M ( $342M invest / $140M cash), revenue $90.5M (+7% YoY), adjusted EBITDA $37.5M (41% margin), adjusted free cash flow $42.7M (114% conversion), GAAP net income $12.8M (EPS $0.07), cash $428M, 3.1M shares repurchased for ~$27M at $8.66 avg, tax‑season client payments >$3B (with $500M paid directly from Wealthfront, +40% YoY), cross‑product adoption ~63% (up ~1.5 pts since Feb) with ~4,000 account openings from the incentive, and early Home Lending signals such as ~25% MoM increase in May rate‑lock volume and a goal to deliver mortgage rates ~50 bps better than the national average.Wealthfront Corporation Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 370.96M | 364.99M | 308.86M | 216.71M |
| Gross Profit | 100.74M | 82.32M | 277.89M | 193.82M |
| EBITDA | -110.09M | -92.96M | 148.28M | 86.63M |
| Net Income | -55.18M | -42.07M | 194.45M | 76.97M |
Balance Sheet | ||||
| Total Assets | 1.62B | 1.42B | 435.21M | 231.15M |
| Cash, Cash Equivalents and Short-Term Investments | 428.21M | 966.06M | 180.00M | 102.21M |
| Total Debt | 9.39M | 10.39M | 13.35M | 87.62M |
| Total Liabilities | 1.01B | 801.04M | 192.67M | 184.81M |
| Stockholders Equity | 614.19M | 614.69M | 242.54M | 46.34M |
Cash Flow | ||||
| Free Cash Flow | 134.48M | 151.05M | 122.62M | 72.42M |
| Operating Cash Flow | 136.39M | 152.19M | 123.15M | 72.92M |
| Investing Cash Flow | -1.91M | -1.14M | -5.84M | -5.16M |
| Financing Cash Flow | 117.19M | 148.19M | -58.55M | -39.50M |
Wealthfront Corporation Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $924.42M | 65.52 | 13.98% | ― | 18.07% | 60.39% | |
73 Outperform | $1.44B | 4.20 | 134.28% | ― | 12.95% | ― | |
59 Neutral | $1.37B | -11.94 | -11.66% | ― | ― | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | $438.23M | -19.13 | -12.24% | ― | -17.06% | 54.45% | |
47 Neutral | $383.05M | -0.12 | -171.94% | 8.12% | -3.15% | -6679.57% |
* General Sector Average
WLTH
Wealthfront Corporation
9.14
-5.05
-35.59%
RDVT
Red Violet
65.52
15.44
30.83%
ALIT
Alight
14.26
-101.08
-87.64%
OPFI
OppFi
9.96
-4.27
-30.01%
BLND
Blend Labs
1.81
-1.65
-47.69%
Wealthfront Corporation Corporate Events
Executive/Board ChangesShareholder Meetings
Wealthfront Stockholders Elect Directors and Ratify Auditor
Positive
Jun 24, 2026
On June 23, 2026, Wealthfront Corporation held its 2026 Annual Meeting of Stockholders, where a quorum was achieved with approximately 81.03% of outstanding common shares represented. Stockholders voted on the election of two Class I directors and...
Business Operations and StrategyStock BuybackFinancial DisclosuresProduct-Related Announcements
Wealthfront Posts Solid Q1 Growth and Expands Platform
Positive
Jun 4, 2026
Wealthfront reported fiscal first-quarter 2027 results on June 4, 2026, with revenue rising 7% year over year to $90.5 million, driven by a 19% increase in Total Platform Assets to a record $96.6 billion, including strong 39% growth in higher-yiel...
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.