Wealthfront is public. The robo advisor that grew up in a rate boom just rang Nasdaq’s opening bell, then flipped the switch on a new phase of its business. The stock lists under WLTH after the company priced its initial public offering at 14 dollars a share at the top of its range. The move puts a bright spotlight on a fintech model built less on stock picking and more on the spread between what clients earn on cash and what Wealthfront earns for managing it.
The debut and the deal
Wealthfront sold about 21.5 million shares within a 34.6 million share offering. The raise totals roughly 485 million dollars. On a fully diluted basis, the deal implies a valuation in the ballpark of 2.0 to 2.6 billion dollars. That is a punchy number for a digital wealth firm, but the financials give it cover.
WLTH began trading on the Nasdaq Global Select Market after the opening bell ceremony in Times Square. Leadership marked the moment with clients and partners watching. It is a clean start to a big test.
A profit engine built on cash
The headline metric is simple. Over the twelve months through July 31, 2025, Wealthfront posted about 339 million dollars in revenue and 123 million dollars in net income. That is a net margin near 36 percent. Roughly 76 percent of revenue came from cash management products during a period of high interest rates.
In plain terms, cash has been the engine. Clients parked large balances. Yields were high. The spread flowed to the bottom line. That is efficient, and it scales fast. It also links results to the rate cycle more than a classic fee-based advisor.
Rate sensitivity is real. If short-term rates fall, net interest income can compress fast.
The company counters that by pushing more advice features, direct indexing, and lending. It has also leaned into high-earning young professionals who keep big cash cushions. More than half of its 88 to 90 billion dollars in client assets sit in cash right now. That mix is the story to watch from here.
Valuation check, and why it might hold
At the IPO range, investors are paying roughly 6 to 8 times trailing revenue. On earnings, the multiple sits near 16 to 21 times. For a profitable fintech with double-digit margins, that is not rich. It reflects both strength today and the clear rate risk tomorrow.
Anchor orders from large asset managers, including BlackRock and Wellington, give the float early stability. They also hint at institutional comfort with Wealthfront’s balance sheet light model and its ability to pass along rate changes to clients while keeping a healthy spread.
Key numbers at a glance:
- IPO price: 14 dollars per share
- Offer size: about 34.6 million shares, company sold about 21.5 million
- Gross proceeds: about 485 million dollars
- Trailing revenue and net income: 339 million and 123 million dollars
- AUM: about 88 to 90 billion dollars, more than half in cash
What today means for fintech
This listing lands in a reopened IPO window for finance tech. Investors have been favoring profits over promises. Wealthfront fits that bill. It shows that a digital wealth model can throw off cash with disciplined costs, strong retention, and rate leverage. That is a message for rivals in brokerage, robo advice, and neobanks.
The competitive field remains tough. Vanguard, Fidelity, and Schwab can match yields and have massive distribution. The edge for Wealthfront rests on product speed, user experience, and segmentation. If it converts cash clients into long-term investing, lending, and planning relationships, the revenue mix gets safer. If not, it stays a rate trade in a shiny app.
Three metrics to watch next quarter, deposit growth, the yield it pays clients, and the spread it keeps.
The investor lens
Day one is about price discovery. The bigger call is about durability. If the Federal Reserve cuts in 2026, cash yields will slip. The firm must defend its take rate, cross sell into higher fee services, and grow assets beyond cash. The positive case says it has the brand, the data, and the client base to do that. The caution says incumbent brokers can squeeze spreads and match features.
For now, WLTH offers a rare mix in fintech, real profits, high margins, and a clear model. Expect volatility as lockups, quarterly updates, and rate headlines hit the tape. For long-term investors, the focus is mix shift and cost discipline, not day one moves.
Frequently Asked Questions
Q: What is Wealthfront’s ticker and exchange?
A: WLTH on the Nasdaq Global Select Market.
Q: How much did the IPO raise?
A: About 485 million dollars in gross proceeds.
Q: Is Wealthfront profitable?
A: Yes. It earned about 123 million dollars over the last twelve months.
Q: Where does most revenue come from?
A: Cash management products accounted for about 76 percent of revenue.
Q: What risks should investors watch?
A: Falling interest rates, competition on yields, and slower cross selling into higher fee products.
Wealthfront wanted the market to judge a simple proposition. A digital wealth platform can be profitable at scale, today, not someday. With WLTH now public, the next few quarters will show whether that profit engine can hum when rates shift and rivals press harder.
