Wealthfront (WLTH) Fiscal Q2 2027 Earnings Call: Platform Assets Reach $99 Billion
Source Tradingkey
Key Takeaways
- Total platform assets reached $99.0 billion at quarter-end, up 12% year over year and 2% sequentially. Wealthfront subsequently surpassed $100 billion in August, ending the month at $100.9 billion.
- Investment advisory assets rose 30% year over year to $54.1 billion, while cash management assets declined 4% to $44.9 billion. Quarterly net deposits totaled $1.1 billion, all from investment advisory.
- Revenue increased 1% year over year to $91.9 million. Investment advisory revenue grew 31%, offsetting a 10% decline in cash management revenue.
- Adjusted EBITDA fell 15% to $38.1 million, with margin contracting eight percentage points to 41%, reflecting lower cash management revenue, client incentives and continued investment in Wealthfront Home Lending.
- The company plans to convert its stock investing account into the Wealthfront Brokerage Account in October, adding more order types and a broader list of investable securities.
- Management said near-term margins will face pressure from Home Lending investment, but it continues to believe adjusted EBITDA margin can exceed 40% over the long term.
Core Financial Data
| Metric | Fiscal Q2 2027 | Change / Commentary |
|---|---|---|
| Total platform assets | $99.0 billion | Up 12% YoY and 2% QoQ |
| Investment advisory assets | $54.1 billion | Up 30% YoY and 5% QoQ |
| Cash management assets | $44.9 billion | Down 4% YoY |
| Net deposits | $1.1 billion | Included $1.1 billion from investment advisory |
| Funded clients | 1.1 million | Up 14% YoY |
| Funded accounts | 1.97 million | Up 15% YoY |
| Revenue | $91.9 million | Up 1% YoY |
| Cash management revenue | $61.8 million | Down 10% YoY |
| Investment advisory revenue | $28.8 million | Up 31% YoY |
| Gross profit | $81.1 million | Down 1% YoY; 88% margin |
| GAAP expenses | $75.1 million | Up 45% YoY |
| Adjusted operating expenses | $58.7 million | Up 17% YoY |
| Adjusted EBITDA | $38.1 million | Down 15% YoY; 41% margin |
| GAAP diluted net income | $17.6 million | Diluted EPS of $0.10 |
| Operating cash flow | $47.3 million | — |
| Adjusted free cash flow | $28.3 million | 74% of adjusted EBITDA |
| Cash and cash equivalents | $453 million | Quarter-end balance |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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