Share count
57Mpeak FY2024
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WLTH, Wealthfront Corporation
Capital Markets & Asset Management asset-light
We are a product-driven technology company that built a financial solutions platform for "digital natives," defined as those born after 1980.
Our platform is designed to address the needs of the wealth builders within these generations.
We built our platform using software to deliver our solutions quickly, conveniently, and at low cost.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2026
$365M
+18.2% YoY
Vital signs · TTM, with 3-yr average
Revenue $371M 3-yr avg $297M
Revenue $90M +7.1% vs yr-ago qtr
Net income $13M yr-ago $26M
Net margin 14.2% yr-ago 30.7%
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What it is
- Revenue is Cash management (74%) and Investment Advice (25%).
- What moves the needle
- Gross margin has run about 90% and operating margin about 37% through the cycle, a wide spread between price and the cost of what it sells — whether that advantage is durable pricing power or a margin that can erode is the question the record is for. The operating margin has swung widely — from −27% to 46% — on a steadier 90% gross margin, so what moves it sits below the gross line, in operating spend and one-off charges more than in the cost of the product itself. The cash cycle has run negative through the cycle (a median of −42 days): the operation is paid before it pays, so working capital releases cash as the business grows rather than tying it up. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Every line is arithmetic on the company's filings, shown in full in the sections below.
Where the money comes from
read the 10-K →Cash management is 74% of revenue, with Investment Advice the other meaningful line at 25%.
Revenue by product line, FY2026
- Cash management74%$272M
- Investment Advice25%$92M
- Other revenue0%$1M
From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.
The record
Ten years of arithmetic, read across the cycle.
The record, 2024–2026
realized figures from each filing · older years to the left| 2024’24 | 2025’25 | 2026’26 | TTMTTMApr 2026 | |
|---|---|---|---|---|
| Income statement | ||||
| $217M | $309M | $365M | $371M | RevenueRevenue |
| 89% | 90% | 90% | 89% | Gross marginGross mgn |
| 11% | 9% | 41% | 42% | SG&A / revenueSG&A/rev |
| 27% | 21% | 58% | 61% | R&D / revenueR&D/rev |
| $81M | $142M | ($100M) | ($117M) | Operating incomeOp. inc. |
| 37.2% | 46.0% | −27.5% | −31.5% | Operating marginOp. mgn |
| $77M | $194M | ($42M) | ($55M) | Net incomeNet inc. |
| Cash flow & returns | ||||
| $73M | $123M | $152M | $136M | Operating cash flowOp. cash |
| $6M | $6M | $7M | $7M | DepreciationDeprec. |
| ($22M) | ($87M) | ($73M) | ($90M) | Working capital & otherWC & other |
| $0 | $37M | $459K | — | BuybacksBuybacks |
| — | — | -46% | -50% | ROICROIC |
| — | 1268% | -7% | -9% | Return on equityROE |
| — | n/m | −7% | −9% | Retained to equityRetained/eq |
| Balance sheet | ||||
| $87M | $143M | $441M | $428M | Cash & investmentsCash+inv |
| — | $29M | $33M | $30M | ReceivablesReceiv. |
| — | $6M | $7M | $7M | Accounts payablePayables |
| — | $23M | $26M | $22M | Operating working capitalOper. WC |
| — | $346M | $1.3B | $1.5B | Current assetsCur. assets |
| — | $173M | $793M | $999M | Current liabilitiesCur. liab. |
| — | 2.0× | 1.6× | 1.5× | Current ratioCurr. ratio |
| — | $435M | $1.4B | $1.6B | Total assetsAssets |
| ($87M) | ($143M) | ($441M) | ($428M) | Net debt / (cash)Net debt |
| 40.3× | 50.5× | -112.6× | -108.6× | Interest coverageInt. cov. |
| ($181M) | $15M | $615M | $614M | Shareholders’ equityEquity |
| 5.5% | 3.0% | 71.2% | 74.1% | Stock comp / revenueSBC/rev |
| Per share | ||||
| 144M | 139M | 56.9M | 176M | Shares out (diluted)Shares |
| $1.51 | $2.23 | $6.42 | $2.11 | Revenue / shareRev/sh |
| $0.53 | $1.40 | $-0.74 | $-0.31 | EPS (diluted)EPS |
| $-1.26 | $0.11 | $10.80 | $3.50 | Book value / shareBVPS |
The diluted share count moved ×1/2.44 into 2026 — shares retired, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The diluted share count moved ×3.08 into TTM — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
The year, in the company's words
the filing →Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.
- Cash management+17.6%
“Cash management revenue increased by $40.8 million, or 18%, for the fiscal year ended January 31, 2026 compared to the prior fiscal year. The increase in cash management revenue was primarily attributable to a 22% increase in the average balance of cash management assets for the fiscal year ended January 31, 2026 compared to the prior fiscal year.”
✓ figure matches the filed record
The record, charted
FY2024–2026Each measure over its full record; the current point and the worst year marked.
Gross margin
90%low FY2024
Where the cash went
ReinvestBuybacksDividendsAcquisitionsRetainedEach year's operating cash, by what management did with it: the mix, and how it drifts.
FY2024FY2026
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2026 10-K · source on SEC EDGAR →
Will it survive?
- Can it pay its interest? -112.6×Does not cover its interestOperating income ($100M) ÷ interest expense $891K
What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
- Net cash, debt-freeCash $441M − debt $0
What this means
Cash and short-term investments exceed every dollar of debt by $441M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
- Negative, funded by othersDSO 33 + DIO 0 − DPO 70 days
What this means
Days cash is tied up between paying suppliers and collecting from customers. A negative cycle is a quiet moat: suppliers and customers fund the operation (Buffett's “float”), the company grows on other people's money. (Little or no inventory, a services / asset-light model, so the inventory leg is ~0.)
Is it a good business?
- Not enough dataIndustry peers: median -45%
What this means
The filing data didn't include the inputs for this check.
- Not enough dataIndustry peers: median 6%
What this means
The filing data didn't include the inputs for this check.
- Loss, but cash-generativeNet income ($42M) · cash from operations $152M
What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.
How is the cash used?
- Not enough data
What this means
The filing data didn't include the inputs for this check.
- Investing or harvesting? —Not enough data
What this means
The filing data didn't include the inputs for this check.
Graham’s defensive tests · 0 of 2 met
Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.
- Adequate size MissRevenue ≥ $2B · $365M
What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
- Strong liquidity NearCurrent ratio ≥ 2× · 1.61×
What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
- Moderate price —P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price
What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.51/share (latest year $-0.28), the averaged base the calculator's gate runs on, and book value is $4.12/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
In its own filing Named as a competitive risk
Its FY2026 10-K names artificial intelligence as a competitive threat.
“If we fail to keep pace with rapidly evolving AI technological developments, including machine learning and automated decision-making technologies ("AI Technologies"), especially in the financial technology sector, our competitive position and business results may suffer.”
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of the latest quarter, Apr 30, 2026Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assets$1.5B
- Cash & short-term investments$428M
- Receivables$30M
- Other current assets$1.0B
Current liabilities$999M
- Accounts payable$7M
- Other current liabilities$992M
Current ratio1.49×all current assets ÷ what's due · Graham looked for 2×
Quick ratio1.49×stricter: inventory excluded
Cash ratio0.43×strictest: cash alone against what's due
Working capital$487Mthe cushion left after near-term bills
Revenue, latest quarter vs. a year ago+7.1%the freshest read on whether the business is still growing
Current ratio, recent quarters2.0× → 1.5×
Deeper floors
Tangible book value$614Mequity stripped of goodwill & intangibles
Net current asset value$480MGraham's net-net: current assets less all liabilities
Debt incl. operating leases$9M$9M of it operating leases
From the company's latest filing.
Management, ownership & pay
read the proxy →From the proxy: how much of the business the people running it own, and how they are paid.
- Insider ownership27.4%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
- Stock-based compensation$260M
The slice of the business handed to employees in shares this year, 71% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.
What an owner would ask, FY2026
read the 10-K →- Which reported numbers are a judgment call?Management names Income taxes as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →
The questions the record and the charts do not answer on their own; each carries the figure and the place to look.
Peers, Capital Markets & Asset Management
The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Gross margin | Op. margin | ROIC | Owner earn. margin |
|---|---|---|---|---|---|
| ENVAEnova International Inc. | $3.2B | 50% | 21.6% | 10% | 56% |
| CHYMChime Financial Inc. | $2.2B | 88% | -18.4% | -88% | 2% |
| MSTRStrategy Inc Common Stock Class A | $477M | 80% | -13.0% | -2% | 6% |
| WLTHWealthfront Corporation | $365M | 90% | 37.2% | -46% | — |
| LPROOpen Lending Corporation | $93M | 77% | 53.2% | 45% | 50% |
| SBETSharplink Inc. | $28M | 31% | -294.4% | -308% | -117% |
| ZSQRZ Squared Inc. | $1M | 87% | -956.9% | -287% | — |
| Group median | — | 80% | -13.0% | -46% | — |
The price
What a price has to assume.
What the price implies
reverse-DCFThe owner-earnings base could not be formed from this filing’s tagged data (operating cash flow or capital spending is missing), so the owner-earnings reverse-DCF has no base to grow. We read the price from both ends instead: type a price to see the profitability it demands, then set the mature margin you would believe and weigh the two against each other. Nothing leaves your browser unless you enter it in your notebook.
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The assumptions
Enter a price to run it.
Owner earnings it must reach—
Margin the price demands—
Owner-earnings margin today—
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Two reads of one future. From your price: the owner earnings the company must reach, valued at a mature multiple and discounted back at your rate, expressed as the margin it implies on revenue grown at your rate. From your belief: the mature margin you would credit, set on the dial above. When the margin the price demands runs above the one you would believe, you are paying for a future taken on faith. For a deep cyclical at a trough, normalized through-cycle earnings are the better lens; this mode is for the genuinely unprofitable, and for the profitable business whose capital spending currently outruns its cash.
Cite: Owner Scorecard, "Wealthfront Corporation (WLTH), the owner's record," https://ownerscorecard.com/c/WLTH, data as of 2026-07-09.
Manual order: ← WLKP its page in the Manual WLY →
Industry order: ← WD the Capital Markets & Asset Management chapter WT →