Wealthfront (WLTH) Q3 2026 earnings summary

Executive summary

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

• Total platform assets reached $92.8 billion, up 21% year-over-year, with 1.38 million funded clients (+20% YoY) and 1.78 million funded accounts (+20% YoY).

• 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, strong word-of-mouth referrals, and targeted lifecycle marketing.

• Completed IPO in December, raising over $130 million in net cash proceeds and converting all preferred stock to common stock.

Financial highlights

• Cash management assets rose 14% year-over-year to $47.0 billion; investment advisory assets increased 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; cash and cash equivalents stood at $266 million at quarter end, rising to over $400 million post-IPO.

• Total costs and operating expenses rose 21–22% year-over-year, mainly due to higher product development and share-based compensation.

Outlook and guidance

• Ongoing nationwide rollout of Home Lending, with licenses covering the majority of client states and early promising results.

• Focus on cross-product adoption, asset retention during interest rate transitions, and continued investment in product development and automation.

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

• Liquidity expected to be sufficient for at least the next 12 months, supported by strong cash flow and a $250 million undrawn credit facility.