Sep. 11 at 3:40 PM
Wealthfront (
$WLTH ) crossed
$100 billion in platform assets in August, but the quarter underneath shows a business mid-pivot.
Investment advisory assets rose 30% to
$54.1B while cash management fell 4% to
$44.9B. Advisory is now the larger pool, and all
$1.1B of quarterly net deposits went there. Rate cuts are eroding the high-yield cash business that built the company.
EPS of
$0.10 missed by 37.5%, though most of that drop came from post-IPO stock comp jumping to
$16.4M from
$1.6M. Adjusted EBITDA fell a milder 15%.
The Stock Investing Account becomes the Wealthfront Brokerage Account in October.
https://prismmarketview.com/wealthfront-crosses-100-billion-in-platform-assets-while-rate-cuts-erode-the-business-that-built-it/
