Automated investment service provider Wealthfront Corp. (WLTH.US) and certain shareholders raised $484.6 million in its initial public offering. According to a Thursday statement, the company sold 21.5 million shares while certain shareholders offloaded 13.1 million shares, both priced at $14 per share—the top end of its previously announced $12-$14 range. The shares will begin trading Friday on Nasdaq under the ticker "WLTH."
As an early mover in the robo-advisory space, Wealthfront has gained recognition for its user-friendly automated investment products and digital platform appealing to younger investors. The firm uses algorithms to provide diversified portfolio management services, lowering barriers to traditional investment advisory. Beyond core investment services, Wealthfront offers bank-like products such as high-yield savings accounts to enhance customer retention and diversify revenue streams.
Assets under management form the cornerstone of its business. Regulatory filings show the platform managed $88.2 billion in total assets as of July 31. This IPO serves as a critical test of its business model, client growth, and market potential.
Filings reveal the company generated $175.6 million in revenue with $60.7 million net income for the six months ended July 31, compared to $145.9 million revenue and $132.3 million net profit in the prior-year period. The latest net income figure includes $13.3 million in income tax provisions, while the year-ago period benefited from $541 million in tax credits. Adjusted EBITDA grew 16% year-over-year.
The current U.S. IPO window remains narrow as companies rush to list in the final weeks of 2025 following delays caused by the federal government shutdown. Regulators are now processing a backlog of IPO applications after the November shutdown resolution.
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