Deposits Hold Steady Through a Rate Change

September's $532 million in total net deposits included $194 million in cash management and $338 million in investment advisory. According to the company, it was also the third consecutive month of positive cash net deposits.

Rates played a role. In the second half of the month, Wealthfront immediately passed along the 25 basis point Fed rate hike to its Cash Account APY, which supported cash inflows. However, clients making quarterly tax payments partially offset that benefit. "We remain focused on driving cross-product adoption in transition environments like we are in today," said CEO David Fortunato, noting that asset-weighted cross-product adoption rose to just under 64% at month-end.

Investment Advisory Drives the Asset Mix

Total platform assets were relatively flat from August, but the two halves of the business are moving at different speeds. Investment advisory assets ended September at $55.2 billion, down 1% from August and up 24% year over year. Meanwhile, cash management assets were $45.3 billion, roughly flat for the month and down 4% from a year earlier.

The client base also kept growing. Funded clients reached 1.54 million at the end of September, up 1% from August and 13% year over year. In addition, Wealthfront said its annualized cash management fee rate was roughly 55 basis points as of month-end.

Context From the Latest Quarter

That shift in asset mix shows up in revenue. For its fiscal second quarter ended July 31, 2026, Wealthfront reported total revenue of $91.9 million, up 1% year over year, as faster growth in investment advisory assets outpaced growth in higher-fee cash management assets. GAAP diluted net income was $17.6 million, compared with $34.7 million a year earlier, primarily due to higher stock-based compensation tied to its December 2025 IPO.

Cash generation remained solid. Net cash provided by operating activities rose 22% to $47.3 million, and the company repurchased 3.3 million shares for about $30 million during the quarter. Wealthfront ended the quarter with cash balances above $450 million and no debt. Looking ahead, the company expects roughly $1.2 million in one-time employer tax expenses in its fiscal third quarter tied to option exercises by former employees.

Strategic Investment Summary

• September Deposits: Wealthfront Corporation (NASDAQ: WLTH) reported $532 million in total net deposits for September 2026.
• Platform Scale: Total platform assets ended September at $100.5 billion, up 9% year over year.
• Advisory Growth: Investment advisory assets rose 24% year over year to $55.2 billion.
• Client Growth: Funded clients reached 1.54 million, up 13% from a year earlier.
• Cash Streak: September marked the third consecutive month of positive cash net deposits.
• Balance Sheet: Wealthfront ended its fiscal second quarter with cash balances above $450 million and no debt.

Find out more about the latest corporate developments and financial reports at the Wealthfront investor portal.

The post Wealthfront Adds $532 Million in September Net Deposits as Platform Assets Hold Above $100 Billion appeared first on PRISM MarketView.

COMTEX_493908379/2927/2026-10-07T13:00:31