Why Wealthfront Stock Dropped Today
Key Points
After expanded at a solid pace throughout most of 2025, Wealthfront saw its deposits dip in December.
A slowdown in Wealthfront's cash management business could offset gains in its investment advisory services.
- These 10 stocks could mint the next wave of millionaires ›
Shares of Wealthfront (Nasdaq: WLTH) sank on Tuesday after the tech-powered financial services provider reported a downturn in its customer deposits.
By the close of trading, Wealthfront's stock price had fallen more than 16%.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
Assets fuel Wealthfront's earnings growth
Total assets on Wealthfront's platform jumped 21% year over year to $92.8 billion in the quarter ended Oct. 31. The gains were driven by a 20% rise in funded client accounts to 1.38 million.
The wealth management specialist offers relatively high yields on its online savings products with up to $8 million in FDIC insurance for individual accounts. These attractive features helped to fuel a 14% increase in the fintech's cash management assets to $47 billion.
Additionally, rising stock prices contributed to a 31% surge in Wealthfront's investment advisory assets to $45.8 billion. Declining interest rates also played a role, as they prompted many clients to transfer funds from their savings accounts to their investment accounts.
"Our fiscal third quarter results highlighted the purposeful balance of the business model between cash management and investment advisory," chief financial officer Alan Imberman said in a press release.
All told, Wealthfront's revenue rose 16% year over year to $93.2 million. In turn, the automated investing pioneer's earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 24% to $43.8 million.
A worrisome trend
However, investors appeared to focus on a slowdown in Wealthfront's asset growth at the end of 2025. It saw $208 million in net deposit outflows in December. Moreover, the decline in Wealthfront's cash management assets largely offset the rise in its investment advisory assets.
In December 2024, Wealthfront enjoyed net inflows of $874 million.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 968%* — a market-crushing outperformance compared to 197% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
See the stocks »
*Stock Advisor returns as of January 13, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
