Wealthfront Files for IPO After Revenue Jumps 26% to $339M

Wealthfront, a fintech company specializing in automated digital wealth management, has filed for a U.S. initial public offering (IPO), signaling its intent to leverage a rebounding IPO market. Founded in 2008 and headquartered in Palo Alto, the company plans to list on the Nasdaq Stock Market. Wealthfront currently manages $88 billion in assets for 1.3 million clients. Financial filings indicate significant revenue growth. For the fiscal year ending July 31, 2025, revenue increased by 26% to $339 million, resulting in a net profit of $123 million. However, this profit reflects a decline from the prior year, primarily due to a substantial deferred-tax benefit recognized in 2024. Earlier data reported by Reuters show revenue for the year ending January 31 reaching $308.9 million, a notable increase from $216.7 million the previous year. Wealthfront targets affluent Millennials and tech professionals, reporting an average customer age of 38 with an income exceeding $100,000. Initially focused on algorithmically designed investment portfolios starting in 2011, the company now provides automated tools for cash accounts, ETF and bond investing, trading, and low-cost loans. It also integrates artificial intelligence into its financial planning software and plans to expand into mortgage services, holding licenses in five states. Co-founders Andy Rachleff and Dan Carroll lead the company. This IPO attempt follows a terminated acquisition by UBS in 2022, which valued Wealthfront at $1.4 billion. A subsequent tender offer late last year valued the company at $2 billion. Josef Schuster, CEO of IPO research firm IPOX, describes the current IPO market as "extremely healthy" but cautions that overly aggressive pricing could deter investors, citing instances of other fintech companies, such as Chime and eToro, trading below their IPO prices.