Wealthfront Corp (WLTH) Stock Forecast & Price Target

Wealthfront Corp reported a significant revenue growth of 26% year-over-year, totaling $339 million for the last twelve months ended July 31, 2025, while achieving an impressive annual net revenue retention rate exceeding 120% over the past eleven fiscal years. The company experienced a substantial increase in cash management revenue, which rose 49% year-over-year in FY25, alongside a 30% year-over-year increase in Investment Advisory revenue, indicating a healthy diversification of revenue streams. Additionally, Wealthfront’s asset growth in both cash management and investment advisory categories underscores strong demand for its financial solutions, with cash management assets increasing by 44% and investment advisory assets by 34% year-over-year in FY25, further supporting a positive long-term financial outlook.

Wealthfront Corp faces a negative outlook primarily due to anticipated revenue slowdowns driven by lower recapture rates in investment accounts and underperformance in mortgage penetration. The company is experiencing pressure on its margins, with EBITDA margins projected to decline, alongside a mix shift towards lower-quality revenue which undermines growth potential and competitive differentiation. Additionally, asset retention from cash accounts is expected to perform worse than initially anticipated, further hindering revenue visibility and scalability in the upcoming fiscal years.