Wealthfront (NASDAQ:WLTH) Releases Quarterly Earnings Results, Misses Estimates By $0.07 EPS

Wealthfront (NASDAQ:WLTH) released its earnings results on Wednesday. The company reported ($1.31) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.24) by ($0.07), Zacks reports. The company had revenue of $96.14 million for the quarter, compared to analyst estimates of $91.95 million.

Here are the key takeaways from Wealthfront’s conference call:

• Record fiscal performance — revenue of $365M (+18% YoY) and Adjusted EBITDA of $170.7M (+20% YoY) with a 47% margin, plus strong free cash flow of $151.1M (88% conversion).
• Platform and client growth — total platform assets reached a record $94.1B at fiscal year-end (and $95.2B in February), investment advisory assets rose 29% YoY to $48.7B, and funded clients grew ~17% to ~1.42M.
• Cash Management pressure — sizable cash outflows after rate cuts (January net outflows ~$840M, improving to $145M in February); Wealthfront raised client APY 5bps and launched a 25bps direct-deposit incentive, guiding Q1 cash-management fee rate to ~57–58bps and warning that wider uptake could compress margins further.
• Home Lending rollout is early-stage — expanded early access to Colorado, Texas, and California and aims to offer rates ~50bps below the national average, but Wealthfront is deliberately scaling slowly to improve digital experience and operations before broader availability.
• GAAP vs. cash profile — GAAP diluted net loss of $134.8M driven by $239M IPO-related double-trigger equity expense, while the company remains debt-free with $440.8M cash and a $100M share repurchase authorization.

Wealthfront Trading Down 7.7%

WLTH traded down $0.65 during trading on Thursday, hitting $7.75. 974,714 shares of the company’s stock were exchanged, compared to its average volume of 1,470,063. Wealthfront has a 1 year low of $7.20 and a 1 year high of $14.88.

Hedge Funds Weigh In On Wealthfront

Several hedge funds and other institutional investors have recently made changes to their positions in WLTH. Tiger Global Management LLC purchased a new stake in Wealthfront during the 4th quarter worth $205,982,000. Wellington Management Group LLP purchased a new position in Wealthfront in the fourth quarter valued at about $54,182,000. T. Rowe Price Investment Management Inc. purchased a new position in Wealthfront in the fourth quarter valued at about $31,136,000. JPMorgan Chase & Co. acquired a new position in shares of Wealthfront during the fourth quarter worth about $27,725,000. Finally, Whale Rock Capital Management LLC purchased a new stake in shares of Wealthfront in the fourth quarter worth about $21,744,000.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the stock. Wells Fargo & Company cut their price target on shares of Wealthfront from $12.50 to $12.00 and set an “overweight” rating on the stock in a research note on Thursday. Keefe, Bruyette & Woods restated a “market perform” rating and set a $9.50 price objective (down from $13.50) on shares of Wealthfront in a report on Thursday. Wall Street Zen raised Wealthfront from a “sell” rating to a “hold” rating in a research report on Friday, January 23rd. The Goldman Sachs Group set a $12.00 target price on Wealthfront in a report on Tuesday, January 20th. Finally, Royal Bank Of Canada lowered their price target on Wealthfront from $17.00 to $14.00 and set an “outperform” rating for the company in a research report on Monday. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, Wealthfront has a consensus rating of “Moderate Buy” and an average price target of $11.88.

Trending Headlines about Wealthfront

Here are the key news stories impacting Wealthfront this week:

• Positive Sentiment: Company reported record FY-2026 revenue and platform growth and announced a share repurchase plan, which supports cash generation and shareholder returns. Wealthfront Reports Fiscal Fourth Quarter and Full Year 2026 Results
• Positive Sentiment: Wells Fargo kept an “overweight” rating on WLTH (PT trimmed modestly), implying substantial upside vs. current levels — a supportive analyst view for buyers. Wells Fargo price target note
• Neutral Sentiment: Quarterly results were mixed: revenue beat estimates ($96.14M vs. ~$91.95M consensus) but EPS missed (loss of $1.31 vs. $1.24 est.), creating uncertainty over near-term profitability despite top-line momentum. Quarterly results and materials
• Neutral Sentiment: Management’s earnings call transcript and slide deck are available for details on guidance, margins and capital allocation — important for assessing whether the revenue trend will translate to improvement in profitability. Earnings call transcript
• Negative Sentiment: Multiple securities law firms have launched investigations into Wealthfront (investor notices from Faruqi & Faruqi and BFA Law), raising legal and reputational risk that can pressure the stock and increase potential liabilities. Faruqi & Faruqi investigation notice BFA Law shareholder notice
• Negative Sentiment: Several analysts issued more pessimistic forecasts and lowered price targets (Keefe, RBC and others), which increases selling pressure and reduces near-term analyst support. Analyst coverage notes

Wealthfront Company Profile

Wealthfront (NASDAQ:WLTH) is a technology-driven wealth management firm that provides automated investment services to individual investors. Operating as a robo-advisor, the company uses algorithms and software to construct and manage diversified portfolios largely composed of low-cost exchange-traded funds (ETFs). Its platform is geared toward long-term, goal-based investing with an emphasis on passive strategies, automated rebalancing and straightforward user experience delivered through web and mobile applications.

The company’s product suite includes automated portfolio management, tax-loss harvesting and goal-planning tools that help clients set and track financial objectives.