Wealthfront (NASDAQ:WLTH) Releases Earnings Results, Misses Expectations By $0.02 EPS

Wealthfront (NASDAQ:WLTH) issued its quarterly earnings results on Thursday. The company reported $0.07 earnings per share for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.02), Zacks reports. The firm had revenue of $90.48 million during the quarter. The company’s revenue was up 7.1% on a year-over-year basis.

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

• Record platform assets reached $96.6 billion, up 19% year over year, while funded clients rose 15% to about 1.46 million and funded accounts grew to roughly 1.9 million.
• Wealthfront said its cross-product adoption incentive is showing early traction, driving more than 4,000 new account openings and lifting asset-weighted cross-product adoption to about 63% by May end.
• The company highlighted strong tax-season engagement, including more than $500 million of taxes paid directly from Wealthfront cash accounts, up 40% year over year, and greater use of portfolio lines of credit to fund tax payments.
• Revenue rose 7% to $90.5 million, with investment advisory revenue up 32% year over year, while adjusted EBITDA was $37.5 million and margin came in at 41% as the company continued investing in incentives and Home Lending.
• The company said Home Lending is progressing as planned, with Colorado and Texas launches, a second takeout investor added, and rate-lock volume up roughly 25% month over month in May despite a higher-rate environment.

Wealthfront Price Performance

Shares of WLTH stock opened at $9.85 on Friday. The stock’s 50 day simple moving average is $10.87. Wealthfront has a 1-year low of $7.20 and a 1-year high of $14.88.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in WLTH. Tiger Global Management LLC acquired a new position in Wealthfront in the 4th quarter valued at $205,982,000. Wellington Management Group LLP acquired a new position in Wealthfront in the 4th quarter valued at $54,182,000. T. Rowe Price Investment Management Inc. acquired a new position in Wealthfront in the 4th quarter valued at $31,136,000. JPMorgan Chase & Co. acquired a new position in Wealthfront in the 4th quarter valued at $27,725,000. Finally, Whale Rock Capital Management LLC acquired a new position in Wealthfront in the 4th quarter valued at $21,744,000.

Key Stories Impacting Wealthfront

Here are the key news stories impacting Wealthfront this week:

• Positive Sentiment: Wealthfront reported fiscal Q1 2027 revenue of $90.5 million, up 7% year over year, and record Total Platform Assets of $96.6 billion, up 19%, showing continued growth in assets and client engagement. Article Title
• Positive Sentiment: The company also highlighted strong operating cash generation, with adjusted free cash flow of $42.7 million, while funded clients and funded accounts both rose 15% year over year. Article Title
• Positive Sentiment: Zacks upgraded Wealthfront to a Buy, suggesting improving sentiment around the company’s earnings outlook. Article Title
• Neutral Sentiment: JPMorgan and Keefe, Bruyette & Woods both lowered their price targets, but still kept constructive ratings of overweight and market perform, respectively, which signals caution rather than a sharp negative call. Article Title Article Title
• Negative Sentiment: Adjusted results were softer than headline growth suggests: net income fell 51% year over year and EPS came in at $0.07, below the $0.09 consensus estimate, with higher stock-based compensation weighing on profitability. Article Title

Analysts Set New Price Targets

A number of equities research analysts recently commented on WLTH shares. Royal Bank Of Canada dropped their target price on Wealthfront from $14.00 to $13.00 and set an “outperform” rating on the stock in a research report on Friday. The Goldman Sachs Group dropped their target price on Wealthfront from $12.00 to $10.50 and set a “neutral” rating on the stock in a research report on Thursday, March 12th. Weiss Ratings began coverage on Wealthfront in a report on Wednesday, March 11th. They issued a “sell (d)” rating for the company. Citizens Jmp decreased their price target on Wealthfront from $20.00 to $17.00 and set a “market outperform” rating for the company in a report on Monday, March 16th. Finally, Keefe, Bruyette & Woods reduced their target price on Wealthfront from $12.00 to $11.00 and set a “market perform” rating for the company in a research note on Friday. Four investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $12.75.

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.