Wealthfront revenue hits record high but records loss due to IPO-related expenses, stock price soars /n

Investing.com – Wealthfront Corporation (NASDAQ:WLTH) announced quarterly revenue of $96.1 million, up 16% year-over-year. The financial platform reported a GAAP net loss of $1.31 per share for the quarter ending January 31, 2026. This revenue figure exceeded the $82.7 million from the same period last year.

The company reported a GAAP net loss of $134.8 million for the quarter, compared to a net profit of $32.1 million in the same period last year, mainly due to a one-time stock compensation expense related to the IPO of $239 million. Excluding these costs, adjusted EBITDA reached $44.2 million, up 22% year-over-year, with an adjusted EBITDA margin of 46%. For fiscal year 2026, Wealthfront achieved annual revenue of $365 million, a record high, up 18% year-over-year.

In after-hours trading on Wednesday, the stock rose 5.4%. The company’s total platform assets increased 17% to a record $94.1 billion, including $48.7 billion in investment advisory assets, up 29% year-over-year, and $45.4 billion in cash management assets, up 7%.

CEO David Fortunato stated, “We closed a milestone year with a strong fourth quarter. The company successfully went public, and total platform assets reached a new quarterly high, largely driven by a record second consecutive quarter of net transfers from cash management accounts to investment advisory accounts.”

The company generated $33.3 million in net cash from operating activities this quarter, totaling $152.2 million for the year. Wealthfront’s board of directors approved a $100 million share repurchase plan in March. The company expects the adjusted EBITDA margin in the first quarter of fiscal year 2027 to decline sequentially but remain above 40%.

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