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Get filing alertsWealthfront Q2 profit falls 49% to $17.6M on IPO stock comp
Filed September 9, 2026 · Period ending September 9, 2026 · ~1 min read
Key Changes
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GAAP diluted net income fell 49% year-over-year to $17.6 million, and diluted EPS fell 59% to $0.10, driven by higher stock-based compensation from dual-trigger awards after the December 2025 IPO.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
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Total Platform Assets reached $99.0 billion at quarter-end, up 12% year-over-year, and surpassed $100 billion as of the end of August; funded clients grew 14% to 1.51 million.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
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Adjusted EBITDA declined 15% year-over-year to $38.1 million, with margin contracting to 41% from 49%, reflecting a lower Cash Management fee rate and investment in Home Lending.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
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The company repurchased 3.3 million shares for approximately $30 million during the quarter, ending with $453 million in corporate cash and an untapped $250 million revolver.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
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Total revenue grew 1% year-over-year to $91.9 million, while gross profit declined 1% to $81.1 million, with gross margin at 88%.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR →
Summary
Wealthfront reported second-quarter fiscal 2027 results showing a sharp decline in profitability despite continued asset growth. GAAP diluted net income fell 49% year-over-year to $17.6 million, and diluted EPS dropped 59% to $0.10, primarily due to higher stock-based compensation expense from dual-trigger awards recognized after the December 2025 IPO.
Adjusted EBITDA also declined 15% to $38.1 million, with margin contracting from 49% to 41%, reflecting a lower annualized Cash Management fee rate and ongoing investment in Wealthfront Home Lending. On the growth side, Total Platform Assets reached $99.0 billion at quarter-end, up 12% year-over-year, and surpassed $100 billion as of the end of August.
Funded clients grew 14% to 1.51 million, and funded accounts grew 15% to 1.97 million. Investment Advisory assets grew 30% to $54.1 billion, while Cash Management assets declined 4% to $44.9 billion. The company repurchased 3.3 million shares for approximately $30 million during the quarter and ended with $453 million in corporate cash plus an untapped $250 million revolving credit facility. For retail holders, the key tension is between strong asset and client growth and declining profitability driven by post-IPO stock compensation and investment spending. The company's debt-free balance sheet and ongoing buybacks provide some support, but the margin compression in adjusted EBITDA and the shift toward lower-fee Investment Advisory assets are worth monitoring in future quarters.
Section-by-Section Diff
Event · Exhibit 99.1
Wealthfront reports Q2 FY2027 results: revenue up 1% to $91.9M, net income down 49% to $17.6M, platform assets up 12% to $99.0B.
Added in current filing · view on EDGAR →
Total revenue $ 91,874 $ 91,123 1 %
Total revenue grew 1% year-over-year to $91.9 million, driven by a 12% increase in Total Platform Assets to $99.0 billion. The slower revenue growth relative to asset growth reflects stronger growth in lower-fee Investment Advisory Assets versus higher-fee Cash Management Assets.
Added in current filing · view on EDGAR →
Platform assets $ 98,990 $ 88,175
Total Platform Assets reached $99.0 billion at quarter-end, up 12% year-over-year, and surpassed $100 billion as of the end of August. Funded clients grew 14% to 1.51 million, and funded accounts grew 15% to 1.97 million.
Added in current filing · view on EDGAR →
Adjusted EBITDA $ 38,065 $ 44,759 (15) %
Adjusted EBITDA declined 15% year-over-year to $38.1 million, with margin contracting to 41% from 49%. Adjusted free cash flow fell 27% to $28.3 million, and the adjusted free cash flow conversion ratio was 74%.
Event · Exhibit 99.2
Wealthfront Q2 2027 earnings: revenue up 1% YoY to $91.9M, adjusted EBITDA down 15% to $38.1M, platform assets up 12% to $99.0B.
Added in current filing · view on EDGAR →
Month-end Total Platform Assets of $99.0 billion were up 12% year-over-year (YoY). This included trailing twelve-month net deposits of $2.8 billion.
Total platform assets reached $99.0 billion at quarter-end, up 12% year-over-year, with trailing twelve-month net deposits of $2.8 billion. Investment Advisory assets grew 30% to $54.1 billion, while Cash Management assets declined 4% to $44.9 billion.
Event · Item 2.02 — Results of Operations and Financial Condition
Wealthfront announced Q2 FY2026 financial results via press release and will host a conference call on September 9, 2026.
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On September 9, 2026, Wealthfront Corporation (the “Company”) issued a press release announcing its financial results for the second fiscal quarter ended July 31, 2026.
The Company issued a press release disclosing its financial results for the second fiscal quarter ended July 31, 2026. The press release is furnished as Exhibit 99.1 to this Form 8-K. Specific financial figures are not included in the 8-K body itself.
Added in current filing · verify on EDGAR →
As previously announced, the Company will host a conference call on September 9, 2026 at 2:00 p.m. PT/5:00 p.m. ET.
Management will host a conference call on September 9, 2026 at 2:00 p.m. PT / 5:00 p.m. ET to discuss the quarterly results. This provides investors an opportunity to hear management's commentary and ask questions.
Event · Item 7.01 — Regulation FD Disclosure
Wealthfront posted a supplemental investor presentation to its website under Regulation FD.
Show 1 minor / wording change
Added in current filing · verify on EDGAR →
On September 9, 2026, the Company posted a supplemental information presentation to its website at ir.wealthfront.com, which is attached hereto as Exhibit 99.2.
The company furnished a supplemental information presentation on its investor relations website.2. This is a routine Regulation FD disclosure with no material business impact stated in the filing.
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Figures/quotes linked to EDGAR · Narrative written by AI · Sep 10, 2026 · How we verify