Wealthfront Q1 2027: Record Assets, 7% Revenue Growth, Profitability Down 51% on SBC; $27M Share Buyback
WLTH sits 46% above its 52-week low of $7.2.
Summary
Wealthfront reported mixed Q1 2027 results, with record platform assets and 7% revenue growth, but a 51% drop in GAAP net income due to stock-based compensation, alongside the execution of a $27 million share repurchase.
Key Events · Earnings and Guidance · WLTH
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Mixed Q1 2027 Financial Results
Revenue increased 7% year-over-year to $90.5 million. However, GAAP diluted net income fell 51% to $12.8 million, and diluted EPS decreased 61% to $0.07, primarily due to higher stock-based compensation from IPO-related awards.
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Record Platform Assets and Client Growth
Total Platform Assets reached a record $96.6 billion, up 19% year-over-year, driven by a 39% increase in Investment Advisory Assets. Funded clients and accounts both grew 15% year-over-year.
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Significant Share Repurchase Executed
The company repurchased over 3 million shares for $27 million at an average price of $8.66 during the quarter, as part of its previously announced $100 million share repurchase program.
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Product Enhancements and Strategic Initiatives
Wealthfront launched general availability of Home Lending in Colorado and Texas, introduced a cross-product adoption incentive, and enhanced Cash Management and Stock Investing Account features.
Analysis · WLTH · Finance
Wealthfront reported strong growth in Total Platform Assets and revenue for Q1 2027, reaching a record $96.6 billion in assets and a 7% increase in revenue. However, GAAP net income and diluted EPS significantly declined by 51% and 61% respectively, primarily due to higher stock-based compensation expenses related to IPO-triggered awards. This mixed financial performance is accompanied by the execution of a $27 million share repurchase, representing a notable portion of the previously authorized program and signaling management's confidence in the company's valuation.
At the time of this filing, WLTH was trading at $10.50 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.7B. The 52-week trading range was $7.20 to $14.75. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.