Wealthfront Files for IPO After Revenue Growth, Profit Dip, Mortgage Expansion

Wealthfront Corp., a digital wealth management firm, has filed for an initial public offering (IPO) in the U.S., according to a report by Bloomberg. The company's S-1 filing with the Securities and Exchange Commission (SEC) indicates its intention to list on the Nasdaq Stock Market. The Palo Alto, California-based firm reported increased revenue but declining profits in its filing. For the six months ending July 31, Wealthfront generated $175.6 million in revenue, resulting in a net income of $60.7 million. This compares to the same period in the previous year, where revenue reached $145.9 million with a net profit of $132.3 million. For the year ending July 31, 2025, revenue grew 26% to $339 million, with a net profit of $123 million. Reuters also reported that revenue for the year ending January 31 rose to $308.9 million from $216.7 million the previous year. The decline in annual profit is primarily attributed to a significant deferred-tax benefit received in 2024. Founded in 2008 by Andy Rachleff and Dan Carroll, Wealthfront currently manages $88 billion in assets for 1.3 million clients with 330 employees. The company provides automated investment portfolios, interest-bearing cash accounts, and low-cost loans, targeting Millennials and tech professionals with incomes exceeding $100,000. The average client is 38 years old. Wealthfront utilizes automation and artificial intelligence in its financial planning software. Valued at $2 billion in a tender offer late last year, following the termination of a $1.4 billion acquisition agreement with UBS in 2022, Wealthfront is expanding its offerings to include mortgages. The company is licensed to provide mortgages in California, Colorado, Connecticut, Michigan, and Texas. According to a source familiar with the matter, the company website advertises mortgage interest rates approximately "0.5% below the national average."