Is the business good?
How good a business is WLTH?
Wealthfront Corporation earns −55% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
−55%
Return on invested capital · cost of capital 9.0% · 64 points below what the capital costs: growth destroys value
- Operating margin
- −35%
Operating margin · Software - Application median 8.2% · 12 months to Q1 2027
- Share count, year on year
- +23%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 61%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2024 | 38% |
| FY2025 | 39% |
| FY2026 | −30% |
Details›
- Gross margin12 months to Q1 2027
- 89%
- Operating margin12 months to Q1 2027
- −35%
- Net margin12 months to Q1 2027
- −15%
- R&D as % of revenue
- 61%
- Revenue, trailing twelve months
- $371M
- Net income, trailing twelve months
- −$55M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −55%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #89 of 90 by Smart Score