The sharp deceleration in revenue growth (7% vs 16% last quarter) and the EPS miss are the primary concerns. Cash Management revenue declining YoY signals fee rate pressure from the rate-cutting cycle. Monitor the next quarter for whether the cross-product adoption incentive can re-accelerate net deposits and whether Cash Management fee rates stabilize. The $100M buyback authorization provides a floor but does not offset the fundamental deceleration.
Price Chart
Executive Summary
Wealthfront reported F1Q27 revenue of $90.5M (+7% YoY), missing the $91.8M consensus, and GAAP diluted EPS of $0.07, well below the $0.16 consensus. Revenue growth decelerated sharply from 16% YoY in F4Q26, driven by a 1% decline in Cash Management revenue as fee rates compressed. Adjusted EBITDA declined 1% YoY to $37.5M, with margin contracting to 41% from 45%. The company repurchased $27M in stock at an average of $8.66 per share, but the deceleration in top-line growth and earnings miss are the dominant signals.
Key Financial Metrics
Key Facts
- Revenue of $90.5M grew only 7% YoY, decelerating from 16% YoY growth in F4Q26 and missing the $91.8M consensus
- GAAP diluted EPS of $0.07 missed the $0.16 consensus by 56%
- Cash Management revenue declined 1% YoY to $63.4M as the annualized fee rate fell to 0.58% from 0.61%
- Adjusted EBITDA declined 1% YoY to $37.5M, with margin contracting to 41% from 45%
- Total Platform Assets grew 19% YoY to a record $96.6B, but net deposits slowed to $0.6B from $1.8B a year ago
- Repurchased over 3M shares at an average price of $8.66 for $27M in open market buybacks
- GAAP operating expenses rose 46% YoY to $75.9M, driven by higher SBC and product development costs
- Operating cash flow fell 41% YoY to $22.7M
Financial Impact
Revenue miss of ~$1.3M vs consensus and EPS miss of $0.09 per share; Adjusted EBITDA margin down 4pp YoY
Risk Factors
- Continued compression of Cash Management fee rates as the Fed cuts rates could further pressure revenue growth
- Cash Management net outflows of $477M in the quarter, with tax-season withdrawals exceeding expectations, may signal client attrition
- Adjusted operating expenses growing at 16% YoY, outpacing revenue growth of 7%, compressing margins
- GAAP diluted EPS of $0.07 is heavily diluted by 175.5M diluted shares vs 142.5M a year ago
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-040793 |
| Document: q127earningspresentation.htm | 0001628280-26-040793 |
| Document: wlth-20260604.htm | 0001628280-26-040793 |
| Document: 0001628280-26-040793-index-headers.html | 0001628280-26-040793 |
| Document: 0001628280-26-040793-index.html | 0001628280-26-040793 |
| Document: 0001628280-26-040793.txt | 0001628280-26-040793 |
| 8-K Data (Synthetic) | 0001628280-26-040793 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 6d ago | 8-K | $11.20 | awaiting T+5 | — | $10.63 (−5.09%) |
Sep 18, 2026 5w ago | Insider Cluster | $10.06 $10.00 | ▲ +0.60% | ▼ −0.42% | $10.63 (−5.67%) |
Sep 17, 2026 5w ago | 144 | $10.10 $10.18 | ▲ +0.79% | ▼ −0.48% | $10.63 (+5.25%) |
Sep 17, 2026 5w ago | Insider Cluster | $10.10 $10.18 | ▲ +0.79% | ▼ −0.48% | $10.63 (+5.25%) |
Sep 15, 2026 6w ago | 144 | $10.17 $9.84 | ▼ −3.24% | ▼ −5.81% | $10.63 (+4.52%) |
Sep 9, 2026 6w ago | Press Release | $10.88 $10.10 | ▲ +7.17% | ▲ +6.67% | $10.63 (+2.30%) |
Jun 17, 2026 18w ago | Insider Cluster | $8.44 $8.07 | ▼ −4.38% | ▼ −2.72% | $10.63 (+25.95%) |
Jun 15, 2026 19w ago | 144 | $8.44 $8.21 | ▼ −2.73% | ▼ −0.49% | $10.63 (+25.95%) |
Jun 4, 2026 20w ago | 8-K | $9.85 $8.96 | ▲ +9.04% | ▲ +9.61% | $10.63 (−7.92%) |
Jun 4, 2026 20w ago | Press Release | $9.85 $8.96 | ▲ +9.04% | ▲ +9.61% | $10.63 (−7.92%) |
US Market Status
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