Investment Review №333. Right to hedge
Yerlan Abdikarimov
Head of Financial Analysis Department at Freedom Broker
Wealthfront IPO. Next-generation finance
On September 29, Wealthfront, an online financial services platform, filed for an IPO. Goldman Sachs, J.P. Morgan, Citigroup, and Wells Fargo are among the underwriters for the offering.
| Issuer | Wealthfront Corporation |
| Ticker | WLTH |
| Exchange | NASDAQ |
| Underwriters | Goldman Sachs, J.P. Morgan, Citigroup, Wells Fargo Securities, RBC Capital, Citizens Capital Markets, Keefe Bruyette & Woods, KeyBanc Capital. |
Investment potential
- Company Overview. Wealthfront, founded in 2008, provides a platform offering a broad suite of financial products across a wide risk spectrum through its web and mobile channels. Its offerings include cash management, investment advisory services, borrowing and lending solutions, and financial planning tools. The company operates a comprehensive financial-services platform tailored to younger clients, particularly Millennials and Gen Z. As of July 31, 2025, average client assets on the platform stood at $67,000, while the number of clients with more than $100,000 in assets totaled 180,000. More than 10,000 clients held assets exceeding $1 million. Wealthfront has also integrated artificial intelligence into its financial-planning software. UBS Group AG previously attempted to acquire Wealthfront in an effort to broaden its high-income client base, but the bank ultimately walked away from the deal in 2022.
- Market Opportunities. According to a study commissioned by the company from Oxford Economics, the wealth of the digital-native generation is projected to grow at an annual rate of 11.3%, rising from $12 trillion in 2022 to $140 trillion by 2045. Wealthfront’s clients are predominantly high-income individuals who were born into the digital era, for whom saving and long-term capital accumulation are key priorities. Since its inception, the platform’s assets have expanded in line with the rising wealth of these generations. As of July 31, 2025, the company served more than 1.3 million clients and managed $88.2 billion in platform assets.
- Financials. In fiscal year 2025, the company delivered 43% revenue growth, followed by 20% growth in the first six months of fiscal 2026. The EBIT margin stood at –36% in fiscal 2024, 45% in fiscal 2025, and 42% for the first six months of fiscal 2026.