Wealthfront Corporation

securities laws. Forward-looking statements are subject to risks and uncertainties, and the company can give no assurance that they will be proved to be correct. To better understand the risks and uncertainties that could cause actual results to differ, we refer you to the documents that Wellfirm files with the Securities and Exchange Commission, including the final prospectus filed in connection with our IPO. Our discussion today will include certain non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute, or in isolation from GAAP measures. Reconciliations of non-GAAP measures, financial measures, to comparable GAAP measures can be found in our press release accompanying this call, which is posted to our investor relations website at ir.wealthfront.com. With that, I will now turn over the call to David.

Thanks, Matt. Last month, we took the company public in what was a significant milestone in the 17 years since we were founded in 2008. Though we are now a public company, what drives us forward every day remains the same, serving our clients who have entrusted us with their role. Throughout the IPO process, we had the opportunity to take a number of stakeholders through our long-term strategy and vision in detail. Since many of you on the call today are new to that story, we wanted to begin with a refresh of Wealthfront and the long-term vision and strategy that we are pursuing. Wealthfront began with the insight that advancements in technology could make intelligent investing effortless. We strive to deliver on this insight by prioritizing technology in everything that we do. We've built fully automated services that enable a better client experience, drive faster product and feature velocity, and have generated high gross margins. at or around 90% in recent years. This allows us to pass along savings to our clients, delivering better financial outcomes, which in combination with a digital-first user experience establish, maintains, and grows trust. This trust leads to strong retention, deeper client relationships, and low-cost client growth via word of mouth. This combination has driven adjusted EBITDA margins to over 40% for the last 10 quarters. which has allowed us to reinvest in the business to continue this flywheel. The average age of our clients is 38 years old, and over three quarters of our funded clients are born after 1980, a group that we define as digital natives. As of the end of calendar 2024, U.S. digital natives represented $16 trillion in U.S. household net worth, or roughly 10% of the total U.S. household net worth. Contrary to popular belief, digital natives have been saving and investing at a rate roughly double that of prior generations, making them the wealthiest generation at their current ages adjusted for inflation. As a result, this $16 trillion in household net worth is projected to grow at an 11% CAGR over the next two decades, even excluding the well-documented benefit of the anticipated generational wealth transfer. This overarching secular trend underpins our long-term strategy. Help digital natives who are expected to be the wealthiest generation ever turn their savings into wealth by continuing to service their needs at a low cost in a digital technology-first manner that they've come to expect from services they use throughout their daily lives. Today, we service our clients primarily through our cash management account and investment advisory account offerings. In cash management, we offer an account that combines the features a client would expect of both the checking and savings account. Over time, we continue to provide incremental value without charging additional fees, and today provide an industry-leading APY on as little as $1 with up to $8 million in FDIC insurance for individual accounts and $16 million for joint accounts through our program banks. free instant withdrawals, free wire transfers, and paycheck access up to two days early, among other features. In investment advisory, we offer several products across the risk spectrum, the largest of which is our automated investing product. This diversified portfolio of low-cost index funds aims to excel at the three things clients can control to reliably improve their long-term after-tax returns, fees, taxes, and diversification. This product does so on an automated basis at a cost of 25 basis points, roughly 75% less than traditional advisory offerings, while also providing automated tax loss harvesting benefits that have generated over $1 billion in tax savings for our clients that reflect an average client benefit of over seven times their lifetime advisory fees. We are continuously innovating and prioritize our product development process, not by chasing the latest fads, but by listening to our clients and their financial needs. In the third quarter, we originated our first home mortgage. And as we scale, we intend to offer clients access to low transparent rates and no hidden fees. We currently have licenses that cover the states of residence of the majority of our clients. And we began this gradual rollout of the product in the fourth quarter, starting with clients in Colorado. Taking out a mortgage has historically been a cumbersome process. We believe we can use technology to deliver a digitally seamless product, while also providing our clients a more attractive rate relative to the industry average. Our average client is reaching the home buying stage of their lives, and with our clients having sent over $2.5 billion in wires to escrow and title companies from our platform alone in calendar year 2025, it is clear that it is our clients who are the ones buying homes in the U.S. We believe that we have the opportunity to capture a meaningful share of this volume over time. We also launched NASDAQ 100 Direct in the quarter, the first ever product to offer retail investors the tax benefits of direct indexing in combination with tracking the performance of the NASDAQ 100 Index. Wealthfront's NASDAQ 100 Direct is available for 12 basis points annual advisory fee, a fee lower than leading exchange traded product offerings in the space with the added benefit of automated tax loss harvesting. This product went from idea to launch in less than eight weeks, highlighting the accelerating pace of product velocity exhibited by our talented engineering team. Turning to the quarter with key performance highlights, total platform assets of $92.8 billion represented a quarter end record and were up 21% year over year, driven by cash management assets of 14% year over year to $47 billion. and investment advisory assets up 31% year over year to $45.8 billion. Growth included total net deposits of $1.6 billion in the quarter and $9.7 billion in the trailing 12 month period. Funded clients ended the quarter at roughly 1.38 million, up 20% year over year with funded accounts of roughly 1.78 million, also up 20% year over year. reflecting 1.3 funded accounts per funded client. During the third quarter, the Fed started to reduce the Fed funds target range, cutting the range by 25 basis points at each of the September and October meetings, and by another 25 basis points at the December meeting. As Alan will describe in more detail when discussing recent monthly trends through December, this rate-cutting cycle has resulted in an expected gradual migration of assets from cash to invest that has slowed the pace of cash management asset growth, but has continued to support growth in total platform assets, including to two consecutive month-end records at both November and December ends. This dynamic is playing out as expected and reflects the intentional balance of our business model. That is, when interest rates decline, we expect to see a slowdown in cash management asset growth, but an increase in investment advisory asset growth and vice versa. These transition periods are not new to us, and we prepare for them principally through our product development philosophy. For example, we launched stock investing in early 2023 amidst a more muted retail trading environment. because we wanted to be prepared for the next upswing in activity. We launched automated bond ladders in 2024 amidst an inverted yield curve because we knew that the yield curve would eventually normalize. And we launched home lending in late 2025 amidst muted industry origination activity because we knew that our average client was nearing typical home buying age. Every product addition was considered with transition periods in mind. in order to be on the shelf and available to our clients when the transition eventually came about. We are better positioned today than ever to take advantage of the current transition period with the combination of a broad suite of investment products, overarching platform incentives, and targeted lifecycle marketing campaigns in place. Ultimately, we are most focused on asset retention and cross-product adoption during these transition periods, And this focus has already led to Q3 being the second best quarter of total cross-product flows to investment advisory in the company's history, including the best quarter of net cross-account transfers from cash to invest in the company's history. We're encouraged to see these trends remain strong thus far in the fourth quarter.

With that, I'll turn it over to Alan to go over the financials.