Wealthfront Q2 Profit Drops 49% as SBC Surges, But Platform Assets Top $100B
WLTH sits 34% above its 52-week low of $7.2 on elevated volume (3.0× avg).
Summary
Wealthfront reported Q2 FY2027 revenue of $91.9M, up just 1% YoY, while GAAP net income fell 49% to $17.6M and diluted EPS dropped 59% to $0.10. The profit decline was driven by a surge in stock-based compensation to $16.4M from $1.6M a year ago, tied to post-IPO dual-trigger awards. Total Platform Assets grew 12% YoY to $99.0B and surpassed $100B in August, with funded clients up 14% to 1.5M. The company repurchased 3.3M shares for about $30M during the quarter. Adjusted EBITDA fell 15% to $38.1M, and adjusted free cash flow declined 27% to $28.3M. The market will focus on the SBC-driven margin compression and whether asset growth can reaccelerate revenue.
At the time of this announcement, WLTH was trading at $9.67 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.4B. The 52-week trading range was $7.20 to $14.75. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.