The EPS miss is significant but largely attributable to one-time IPO stock compensation — watch the conference call for guidance on normalized SBC run-rate and whether the adjusted EBITDA margin trajectory stabilizes. The $100B platform asset milestone and strong investment advisory growth provide a positive narrative counterweight, but the margin compression and cash management revenue decline are structural headwinds.
Price Chart
Executive Summary
Wealthfront reported Q2 2027 GAAP diluted EPS of $0.10, a 36.5% miss vs consensus of $0.16, and total revenue of $91.9M (+1% YoY) which was in line with the $91.5M estimate. The EPS miss was driven by a massive increase in stock-based compensation ($16.4M vs $1.6M) tied to IPO-related dual-trigger awards, while adjusted EBITDA margin compressed to 41% from 49% a year ago. The stock will likely trade down on the significant EPS miss and margin compression, partially offset by the milestone of surpassing $100B in platform assets and continued strong net deposits of $1.1B.
Key Financial Metrics
Key Facts
- GAAP diluted EPS of $0.10 missed consensus of $0.16 by 36.5%
- Total revenue of $91.9M (+1% YoY) was in line with $91.5M consensus
- Stock-based compensation surged to $16.4M from $1.6M YoY due to IPO dual-trigger awards
- Adjusted EBITDA margin fell to 41% from 49% YoY
- Total Platform Assets reached $99.0B (+12% YoY), surpassing $100B in August
- Investment Advisory Assets grew 30% YoY to $54.1B, while Cash Management Assets declined 4% to $44.9B
- Funded clients grew 14% YoY to 1.51M; net deposits were $1.1B in the quarter
- Company repurchased 3.3M shares for ~$30M in open market repurchases
- Cash balance above $450M with no debt on the balance sheet
Financial Impact
EPS miss of $0.06 per share (36.5% below consensus) with adjusted EBITDA declining 15% YoY to $38.1M
Risk Factors
- Stock-based compensation may remain elevated as IPO-related awards continue to vest
- Cash Management revenue declining 10% YoY as clients shift to higher-fee advisory products creates mix headwind
- Home Lending expansion adds expense without near-term revenue contribution
- Competitive pressure from other digital wealth platforms on fee rates
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3359060 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 4d ago | 8-K | $11.20 | awaiting T+5 | — | $10.81 (−3.44%) |
Sep 18, 2026 5w ago | Insider Cluster | $10.06 $10.00 | ▲ +0.60% | ▼ −0.42% | $10.81 (−7.50%) |
Sep 17, 2026 5w ago | 144 | $10.10 $10.18 | ▲ +0.79% | ▼ −0.48% | $10.81 (+7.08%) |
Sep 17, 2026 5w ago | Insider Cluster | $10.10 $10.18 | ▲ +0.79% | ▼ −0.48% | $10.81 (+7.08%) |
Sep 15, 2026 5w ago | 144 | $10.17 $9.84 | ▼ −3.24% | ▼ −5.81% | $10.81 (+6.34%) |
Sep 9, 2026 6w ago | Press Release | $10.88 $10.10 | ▲ +7.17% | ▲ +6.67% | $10.81 (+0.60%) |
Jun 17, 2026 18w ago | Insider Cluster | $8.44 $8.07 | ▼ −4.38% | ▼ −2.72% | $10.81 (+28.14%) |
Jun 15, 2026 18w ago | 144 | $8.44 $8.21 | ▼ −2.73% | ▼ −0.49% | $10.81 (+28.14%) |
Jun 4, 2026 20w ago | 8-K | $9.85 $8.96 | ▲ +9.04% | ▲ +9.61% | $10.81 (−9.80%) |
Jun 4, 2026 20w ago | Press Release | $9.85 $8.96 | ▲ +9.04% | ▲ +9.61% | $10.81 (−9.80%) |
US Market Status
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