Wealthfront Corp (WLTH) Stock Forecast & Price Target

Wealthfront Corp has demonstrated robust financial performance, generating $339 million in revenue for the last twelve months ending July 31, 2025, reflecting a year-over-year growth of 26%. The company has maintained an impressive annual net revenue retention rate exceeding 120% for the past eleven fiscal years, showcasing strong customer loyalty and satisfaction. Additionally, the significant increase in cash management revenue, up 49% year-over-year to $230.9 million in FY25, alongside a projected shift toward greater investment advisory revenues, positions Wealthfront favorably for continued growth in a competitive landscape.

Wealthfront Corp is facing a challenging outlook primarily due to a slowdown in revenue from decreasing recapture rates in investment accounts and unanticipated shortcomings in mortgage penetration. Additionally, the company's gross margin is projected to decline, with a notable drop in EBITDA margin compared to previous years, indicating pressure on profitability. Furthermore, there are concerns about decelerating revenue growth, the lower quality of revenue sources, and a lack of competitive differentiation, which may adversely affect revenue visibility and overall performance in the market.