Wealthfront Corporation

Good day, everyone, and thank you for standing by. Welcome to Wealthfront's first quarter 2027 earnings conference call. At this time, all participants are in a listen-only mode. After the presentation, there will be a question and answer session. To ask a question, you will need to press star 1-1 on your telephone. You will then hear a message advising your hand is raised. To withdraw the question, please press star 1-1 again. please be advised that today's conference is being recorded. Now it's my pleasure to hand the conference to the Vice President of Investor Relations, Matthew Moon. Please proceed.

Good afternoon, everyone, and thank you for joining us today to discuss Wealthfront's fiscal first quarter 2027 financial results, which reflect the quarter ended April 30th, 2026. On the line are David Fortunato, our Chief Executive Officer and President, and Alan Imberman, our Chief Financial Officer and Treasurer. After prepared remarks, we will open the line for Q&A. During the course of today's call, we may make forward-looking statements as defined under applicable securities laws. Forward-looking statements are subject to risks and uncertainties, and the company can give no assurance that they will be or prove to be correct. To better understand the risks and uncertainties that could cause actual results to differ, we refer you to the documents that Wealthfront files with the Securities and Exchange Commission, including our most recent Form 10-Q. 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 an isolation from GAAP measures. Reconciliations of non-GAAP 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. And with that, I'll turn the call over to David.

Good afternoon, everyone. In our fiscal first quarter, 2027, we continued to deliver on our objective of becoming the leading tech-driven platform for digital natives seeking to turn their savings into wealth. We believe we make the best practices of personal finance accessible at low fees through automation and intuitive and convenient through user-friendly design. At scale, this drives high margins, allowing us to share savings with clients, creating and engendering trust, driving asset retention and low-cost word-of-mouth growth, which once again drives high margins. This flywheel enables us to reinvest in and enhance our core cash management and investment advisory product offerings, supports our organic build-out of Wealthfront home lending and future product innovations, and most importantly, helps our clients save more on every paycheck, earn higher returns on their savings, and borrow at lower rates. In other words, grow their wealth. We remain grounded in our belief that the best way to build deep, long-term client relationships is to continue to delight clients by offering them more value than they can find anywhere else and focusing on their long-term financial outcomes. This informs our product development strategy and keeps us focused on our roadmap, regardless of short-term market conditions. At quarter end, total platform assets grew 19% year over year to a record $96.6 billion. with investment advisory assets of $51.7 billion, up 39% year over year, and cash management assets of $44.9 billion, up 3% year over year. We ended the quarter at roughly 1.46 million funded clients, up 15% year over year, and roughly 1.9 million funded accounts, also up 15% year over year, reflecting 1.3 funded accounts per funded client. Total net deposits in the quarter were $554 million. This includes $577 million in cash management net withdrawals in April, primarily due to tax seasonality. Recall, our clients are net cash taxpayers, highlighting the attractive financial profile of our average client. and this monthly result was consistent with the expectation we set last quarter for cash management net withdrawals in April of this year to exceed the $538 million in net withdrawals realized in April of last year. These are, of course, net figures and specific to activity realized directly on our platform. Looking more broadly, this March and April, a period we refer to as tax season, we estimate our clients made over $3 billion in combined tax payments from their Wealthfront cash accounts, and from their linked external accounts, with the latter including amounts that were initially withdrawn from Wealthfront accounts prior to tax payment, in addition to payments from funds held in linked accounts. Clients directly paid tax authorities over $500 million from their Wealthfront cash accounts during the year's tax season, up 40% year over year, indicating growing trust in our liquidity offerings. This has likely been the result of significant investment into our platform over the years made to deliver positive tax time experiences to our clients. For example, clients increasingly utilized our leading low cost portfolio line of credit or PLOC rates in order to fund tax obligations with tax dollar payments funded with PLOC balances up roughly two times year over year. We also recently invested in dynamic withdrawal limits, increasing client-specific limits up to $1 million per account. This new client-specific limits enabled more of our clients to fully satisfy their tax obligations in a single tax payment out of their cash accounts, strengthening our position as an attractive primary operating account option for our clients. It might be counterintuitive, but we want our clients to pay their taxes from their cash accounts given our ability to drop drive delightful tax time experiences, which we believe will lead to us receiving a disproportionate share of their future savings over time. We've also experienced strong uptake in our cross-product adoption incentive launched in early March. Recall this incentive provides clients who direct deposit at least $1,000 per month and also fund an investment account with an ongoing 25 basis point increase to their cash APY. This directly led to over 4,000 new account openings and helped drive asset-weighted cross-product adoption to roughly 63% as of May end, up 1.5 percentage points versus the level realized immediately prior to launch at February end. In the early days, we've also been encouraged by the fact that, on average, new adopters of the incentive have consistently brought on a notably larger amount of net deposits in each month since launch than that of similar clients that have not adopted the incentive. We also continuously invest in our core products. In cash management, we launched cash category goals and recurring cash to category transfers. Cash category goals allow clients to more easily track their progress towards personalized financial targets within specific cash subaccounts. Our new recurring cash to category transfer feature provides clients another option to better achieve those goals on an automated basis. On investment accounts, we shipped one tap to invest in the stock investing account to streamline the purchase and sale of individual stocks and ETFs as we continue to transition this account to a more traditional brokerage offering. Wellfront Home Lending added a second takeout investor in the quarter and launched general availability in Colorado in early April and in Texas in early May. As a reminder, we're running a similar playbook for home lending that we have successfully deployed in our cash and investing businesses. That is using technology to deliver a better digital experience and a better rate with transparent fees. While we are still in early days, the initial client feedback and data supports our conviction and our ability to deliver on these objectives. While anecdotal, I'd like to share a couple of specific client comments to bring the experience to life. One of our clients raved about the self-serve capability relative to his prior experiences. That is the ability to independently explore the latest mortgage rates without having to call up a mortgage banker or broker every time he wanted to open the fridge, as he described it. Another client enjoyed the ability to track the progress of his application in real time in-app. The fact that our application process can be handled entirely through mobile, completely end-to-end, is a differentiator, and we've seen more than half of Wealthfront home lending clients interacting with the flow via mobile. This is all while continuing to deliver on our objective of providing clients home mortgage rates at least 50 basis points better than the national average on average in the states in which we operate today. As we noted last quarter, we are deliberately rolling this service out at a measured pace in order to maximize learnings to optimize long-term client outcomes. We are building an automated solution from the ground up. So the fact that we've been able to increase rate lock volume by roughly 25% month over month in May amidst this build out is a feat that I'm particularly proud of, especially in the face of rising mortgage rates. Currently, we are focused on automating the decision decisioning process of client pre-qualifications, starting from the application intake process all the way through approval, and we plan to share more details with you all in the coming quarters. Taking a step back, since the early days of Wealthfront, we have been saying that we can utilize technology to provide digital advisory solutions at a level similar to or better than traditional solutions provided by financial advisors. AI has and will certainly continue to play a role in achieving this goal. We're confident in our ability to continue to build solutions, including AI solutions, that automate and improve the personal financial experience for our clients so long as they continue to build client trust. In order to determine which AI solutions best achieve our trust and wealth-building goals, we need to experiment and test these solutions with our clients. We are entering that phase now, and we'll share more with you over time as we learn more. With that, I'd like to turn it over to Alan to go over the financials.