Wealthfront (WLTH) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 saw record annual revenue of $365 million, up 18% year-over-year, and Q4 revenue of $96.1 million, up 16% year-over-year.

• Platform assets reached $94.1 billion, up 17% year-over-year, with investment advisory assets up 29% and cash management assets up 7%.

• Funded clients grew 17% to 1.42 million, and funded accounts rose 16% to 1.84 million.

• Product innovation included enhancements to cash management, investment advisory, and the rollout of home lending in select states.

• Went public during the year and launched new products, including a proprietary Treasury Money Market Fund.

Financial highlights

• Fiscal 2026 revenue reached $365 million, up 18% year-over-year; adjusted EBITDA was $170.7 million, up 20%, with a 47% margin.

• Q4 adjusted EBITDA was $44.2 million, up 22% year-over-year, with a 46% margin.

• Q4 GAAP net loss was -$134.8 million, primarily due to a one-time IPO-related stock-based compensation expense of $239 million.

• Free cash flow for the year was $151.1 million, with an 88% conversion ratio; Q4 free cash flow was $33 million, with a 75% conversion.

• Ended January 2026 with corporate cash balances above $440 million and no corporate debt.

Outlook and guidance

• Adjusted EBITDA margins expected to decline sequentially but remain above 40% in Q1 fiscal 2027 due to investments in incentives and home lending.

• Q1 annualized cash management fee rate guided to 57-58 basis points, with potential for further compression depending on incentive uptake.

• Anticipates significant seasonal cash management outflows in March and April due to tax season.

• Fiscal 2027 started strong with net deposit growth in February despite a dynamic macro environment.