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Thank you for standing by, and welcome to Wealthfront Corporation's fourth quarter and fiscal year 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 on your telephone. To remove yourself from the queue, you may press *11 again. I would now like to hand the call over to Matthew Moon, Investor Relations. Please go ahead.

Good afternoon, everyone, and thank you for joining us. Today to discuss Wealthfront Corporation's fourth quarter and full year fiscal 2026 financial results, reflecting the periods ending January 31, 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 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 Corporation 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 for, or in 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. I will now turn the call over to David Fortunato.

Thank you, and good afternoon, everyone. Fiscal 2026 was another successful year in which Wealthfront Corporation continued to deliver on its long-term objective of becoming the leading tech-driven platform for digital natives to turn their savings into wealth. We believe we make the best practices of personal finance accessible at low fees through technology and intuitive and convenient through user-friendly design and automation. 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 offer feature enhancements such as our recent ongoing cash APY increases that I will describe in more detail later on, and more broadly, helps our clients save more on every paycheck, earn higher returns on their savings, and borrow at lower rates. 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 anyone 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 fiscal year-end, total platform assets grew 17% year over year to a record $94.1 billion, with investment advisory assets of $48.7 billion, up 29% year over year, and cash management assets of $45.4 billion, up 7% year over year. Funded clients ended the year at roughly 1,420,000, up 17% year over year, and funded accounts of roughly 1,840,000, up 16% year over year, reflecting 1.3 funded accounts per funded client. Total net deposits in the year ended January 31, 2026 were $6.7 billion, including $400 million in net outflows in the fourth quarter. Fourth quarter figures reflected a cash-to-invest transition environment that resulted in the second-best quarter of total investment advisory cross-product flows, including a second consecutive record quarter of net cross-account transfers from cash to invest. This helped drive annualized organic investment advisory growth to 11% in the quarter, the highest since the market enthusiasm post U.S. election in the quarter ended January 2025, with monthly annualized organic growth accelerating throughout the quarter, ending at 15% in January. Recall, annualized organic growth is calculated as total net deposits in a given period multiplied by an annualization factor based on actual day counts in that period, divided by prior period ending assets. As we will discuss further, cash management net flows began to normalize in mid-January, roughly four weeks after reducing the client rate on December 19 and prior to the five basis point increase to the client APY on January 30. Net outflows from cash management were $145 million in February, a significant improvement from the $840 million in net outflows in January. Since February 16, cumulative cash management net deposits have been positive. However, we expect withdrawals due to tax time seasonality to begin later this month and continue up until the April 15 federal tax deadline. On the product development side, we continue to accelerate our product velocity. For example, in the fourth quarter, we bolstered both our cash management and investment advisory offerings, enhanced interoperability between both, and began to offer early access to Wealthfront home lending. For cash management, we introduced automated dividend sweeps from investment advisory accounts to cash management accounts and increased daily withdrawal limits up to $1,000,000 for qualified clients. In December, we began a measured rollout of our proprietary Wealthfront Treasury Money Market Fund, or WLTX X. It offers an attractive after-tax yield alternative for clients and their cash, particularly for clients living in states with high income taxes, given the state tax exemption on U.S. Treasury interest income. As of February, prior to general availability, the money market fund had just over $85 million in AUM. For investment advisory, we expanded availability of fractional shares into automated investing accounts and automated bond portfolios, helping to reduce cash drag and tracking error relative to our target portfolios. We also introduced dividend reinvestment plans as well as a broader list of stocks and ETFs that can be traded in the stock investing account. We continue to see strong uptake, particularly among younger clients, in this investment account. In November, we launched early access to home lending starting in Colorado, and have since expanded to Texas and California, with a full rollout to these states as well as early access in additional states expected to come later this year. We believe we can use technology to deliver a better digital experience and a lower rate, and we are deliberately scaling at a measured pace in order to maximize learnings to optimize our long-term outcomes. We aim to provide our clients home mortgage rates at least 50 basis points better than the national average. While we are in early days, we are proud to have delivered on this objective on average in the states in which we operate today. Beyond new product initiatives, we have increased the base APY on all cash management accounts by five basis points to 3.3% on January 30. Over the course of the past several months, the effective federal funds rate gradually stabilized higher within its target range, allowing us to pass more savings along to our clients. We could have simply taken this benefit for ourselves, but consistent with our business model, we are constantly looking for ways to give back to our clients, deliver better financial outcomes, and build trust. Our focus for Wealthfront Cash is to offer the best cash account experience for young professional savers. In this vein, we launched an incentive in early March in which clients that direct deposit at least $1,000 per month who also have a funded investment account will receive an ongoing 25 basis point boost to their cash APY. We expect this incentive to deepen existing client relationships as well as drive cross-product adoption for those clients using one of the cash management or investment advisory accounts today. We also anticipate new clients to diversify into both of these account types more quickly. Closing with current trends, today we published February metrics. As discussed earlier, when looking at intramonth trends, cash management net outflows peaked in mid-January prior to our five basis point increase to the client base APY. Cash management net outflows significantly improved to only $145 million in February versus $840 million in January. Investment advisory net deposits were $416 million, implying an annualized organic growth rate of 11%. Total net deposits were therefore $271 million in February and, along with market appreciation, led us to another month-end record of total platform assets of $95.2 billion. In turbulent times like these, the time-tested performance of a low-cost diversified index portfolio with the added benefit of automated tax-loss harvesting becomes more apparent. Aggregate investment account returns, most notably our automated investment account, benefited in January and February from the relative outperformance of international equities, contributing to a 2.8% month-over-month growth in January, and 1.7% month-over-month growth in February. Crucially, this performance stands in stark contrast to the returns of speculative asset classes that often falter when market conditions tighten. While others chase fads, our automated investing account is engineered to mitigate volatility and maximize after-tax outcomes. We believe the value of this product is even greater when you consider the strong year-to-date tax losses we have harvested for our clients. February tax-loss harvesting dollars were the highest since the widespread market volatility realized immediately before, during, and after Liberation Day last year. With that, I will now turn the call over to Alan Imberman to go over the financials.

Thanks, David. Starting with the income statement and a high-level overview for the year. Revenue for fiscal 2026 reached a record $365 million, up 18% year over year. Adjusted EBITDA for fiscal 2026 also hit a new record of $170.7 million, up 20% year over year, reflecting an adjusted EBITDA margin of 47%, up one percentage point year over year. Moving now to the fourth quarter, revenue came in at a quarterly record of $96.1 million, up 16% year over year. Cash management revenue was $69.7 million, up 12% year over year due to both higher average cash management balances measured as the average of beginning and end of quarter figures and a higher annualized fee rate. The average cash management balance in the fourth quarter was $46.2 billion, up 10% year over year, and the annualized cash management fee rate was 60 basis points, up one basis point year over year. When the Fed reduces the Fed funds target rate, we typically wait until the Friday of the following week to reduce the APY we offer our clients. This creates temporary fee compression because the interest rate we receive from banks reprices lower immediately while the interest rate we pay to clients remains constant for a one-week grace period. Additionally, in a declining rate environment, the fee rate is negatively impacted by the inherent mathematical impact of converting annual percentage rates (APR) to annual percentage yields (APY). The inverse of this is true in an increasing rate environment. As David noted, we launched a new incentive in early March in which clients who direct deposit at least $1,000 per month and also have a funded investment account will receive an ongoing cash yield increase of 25 basis points. As a result of both the direct deposit incentive and the five basis points passed along to clients at the end of January, we now expect our first quarter annualized cash management fee rate to be in the range of 57 to 58 basis points. Because April is tax season and our clients are net cash taxpayers, we anticipate significant seasonal cash management net outflows to begin in March and continue up until the April 15 federal tax filing deadline. For context, net cash management outflows in April 2025 were $537 million, and we would expect this figure to be larger this year given the increase in total cash management assets. It may seem counterintuitive, but we are delighted to see tax-related outflows because it reflects the highly attractive financial profile of our clients and also means our clients are comfortable using the cash account to meet near-term liquidity needs, indicating use of the account as a primary operating account that generally gets replenished over time and are typically stickier over the long run. Investment advisory revenue was $25.8 million, up 31% year over year, and surpassed $100 million in annualized revenue for the first time, due primarily to a 30% year over year increase in average investment advisory balances to $47.3 billion. Our annualized investment advisory fee rate was roughly flat at 22 basis points versus the same period last year. Asset growth was driven by both strong markets and net deposits over the trailing twelve months, with organic net deposit growth accelerating throughout the quarter, ending at 15% annualized growth in January. Net cross-account transfer from cash to invest in the quarter set a new record for the second consecutive quarter, reflecting the compelling combination of a broad suite of investment products, overarching platform incentives, and targeted lifecycle marketing campaigns currently in place. Gross profit came in at a quarterly record of $86.6 million, up 17% year over year, reflecting a gross profit margin of 90%. Total GAAP expenses of $310.7 million included $248.3 million in stock-based compensation expense, of which $239 million reflected dual-trigger equity award expense recognized in connection with our IPO. GAAP expenses also included $5.3 million in employer taxes related to these dual-trigger equity awards. Adjusted operating expenses, that is, expenses excluding share-based compensation and employer taxes due to IPO-related equity awards, were $57.1 million, up 15% year over year due primarily to higher product development and general and administrative expense, partially offset by lower marketing expense. Adjusted EBITDA of $44.2 million was up 22% year over year and reflected an adjusted EBITDA margin of 46%, up two percentage points year over year. As we continue to invest in incentives and scale home lending, we expect adjusted EBITDA margins to decline sequentially but remain above 40% for the first fiscal quarter 2027. We continue to demonstrate significant operational and financial discipline, delivering a Rule of 40 metric of 62 for the fourth quarter. This is our fourteenth consecutive quarter, or more than three years, exceeding the Rule of 40 and underscores a business model that has successfully and consistently balanced robust top-line growth with the structural efficiencies of our automated platform. GAAP diluted net income was negative $134.8 million and GAAP diluted earnings per share was negative $1.31, both of which include the one-time impact of dual-trigger equity awards in connection with our IPO of $239 million. We believe that our adjusted EBITDA is a strong proxy for cash flow. For the fourth quarter, net cash provided by operating activities was $33.3 million and free cash flow was $33 million. This results in a free cash flow conversion ratio, that is free cash flow as a percentage of adjusted EBITDA, of 75%. January, however, is a seasonally lower free cash flow period as we pay out the majority of our accrued annual cash bonuses to our employees in that period. For the fiscal year, net cash provided by operating activities was $152.2 million and free cash flow was $151.1 million. This resulted in an annual free cash flow conversion ratio of 88%. Note, both quarterly and annual free cash flow figures are not adjusted for IPO-related expenses; therefore, conversion ratios are lower than they otherwise would have been had the IPO not occurred. Driven primarily by this robust free cash flow generation over the course of the year and over $130 million in net cash proceeds raised in our IPO in December, we continued to strengthen our debt-free balance sheet, ending the period with cash and cash equivalents of $440.8 million. At quarter end, we had roughly 186.5 million diluted shares outstanding. In March, we received board authorization to implement $100 million in share repurchases. We believe repurchasing our stock is attractive at current levels given our robust free cash flow generation, our debt-free capital structure, as well as the multi-decade opportunity to compound wealth with new and existing clients. Over the long term, our excess capital priorities are: invest in organic growth, including infrastructure and automation while also comfortably exceeding minimum capital requirements; evaluate opportunities to repurchase shares; and assess M&A with a preference to build versus buy. Any remaining capital would be added to our surplus reserves in order to bolster resilience and durability. Regarding February metrics, total platform assets ended at another month-end record of $95.2 billion, consisting of $50.0 billion in investment advisory assets, and $45.2 billion in cash management assets. Total net deposits were $271 million, and recall, February only has 28 days in the month. Investment advisory net deposits were $416 million, reflecting organic growth of 11% annualized. We continue to successfully drive cash-to-invest flows, bringing asset-weighted cross-product adoption, that is, assets held by clients with both cash management and investment advisory accounts, to roughly 61.5% at February, up over one percentage point since December. Cash management net flows began to normalize in mid-January, four weeks after reducing the client rate on December 19, and prior to the five basis point increase to the client APY on January 30. Net outflows from cash management were $145 million in February, a significant improvement from the $840 million in net outflows in January. Since February 16, cumulative cash management net deposits have been positive. However, we expect withdrawals due to tax time seasonality to begin later this month and to continue up until the April 15 federal tax deadline. In closing, our business is designed to be aligned with the interest of our clients. Simply put, we succeed only when they do. We believe that as long as we continue to deliver products that truly delight our clients, they will engage more broadly with us, entrust us with more of their wealth, and recommend our platform to their friends, family, and coworkers. We are deeply committed to this long-term journey alongside them. With that, we will now open for questions.

Thank you. To ask a question, you will need to press *11 on your telephone. To remove yourself from the queue, you may press *11 again. You will be limited to one question and one follow-up to allow everyone the opportunity to participate. Our first question comes from the line of Ken Worthington of JPMorgan. Your question please, Ken.

Hi. Good afternoon, and thanks for taking my question. I want to dig further into the rollout of mortgages and see how that is going. So what kind of reception are you getting from your customers in Colorado, where that offering is more seasoned? And can you see, based on the transfer of assets to title companies, how your penetration of eligible customers is looking thus far?

Hey, Ken. How is it going? Yeah. So we are progressing, I think, well. The thing that we are optimizing for—we talked a little bit in the prepared remarks—is less about directly trying to capture all of the volume that we reasonably can in Colorado and really maximizing the learning that we have both with our infrastructure and with the client experience. So as we have launched first in Colorado with the early access period and then in Texas and California, we are really focused on making sure that the experience that we are delivering to clients is good. There are things that we have to improve and we are working on. We have already rolled out a bunch of improvements with more to come. On the rate basis, we feel very good about underpromising and overdelivering on the quality of rate we are giving folks. We are still seeing significant home volume across the country. I think the stat that I saw was more than $400 million of wires to escrow and title companies in our Q4 went off the platform, which obviously is a significant chunk of the outflows that we saw. We have a bunch of things that we need to improve on the digital experience. We are making quick progress, but it is a huge area of focus for us. As we continue to expand the early access period, the real constraint that we have is that the experience that we are offering to clients is one that we feel good about, and we feel the clients will feel good about for the long term. We are not trying to build a transactional mortgage experience. We are trying to build a long-term relationship with clients, of which mortgages is just one step.

Perfect. And then maybe to follow up, same topic. How do you see the ramp and the rollout to other states and the further penetration in existing states? How does that look as you move through the rest of the year? Is this really kind of an experimental year where you would not expect things to really ramp; it is just sort of getting the infrastructure? Or do you expect things to really ramp as we move throughout the year and as you get more comfortable with the offering?

So we certainly expect to go general availability in Colorado first. That will happen sometime this year. I would expect that we go general availability in Texas and California at some point this year. And I would expect that we launch early access periods in additional states. Exactly what percentage of our client base will be covered by general availability, I am less sure of. Our ability to roll out automation features and balance scaling headcount versus scaling through technology is the kind of core dance that we are doing, where we are trying to really scale with technology and limit headcount growth where needed, except where we are very confident in the volumes that we are seeing, and that is a credible strategy to be able to build sustainable volume over time.

Thank you.

Our next question comes from the line of Ryan Tomasello of KBW. Your question, please, Ryan.

Hi, everyone. Thanks for taking the questions. Regarding the cash management fee rate guide for 1Q, I believe you said 57 to 58 bps. Is that a reasonable baseline for the remainder of the year, or how should we think about the potential for additional compression there to the extent these incentives you are offering continue to see strong uptake?

Hey, Ryan. Thanks. Yeah. The one thing I would say is the competitive environment has certainly evolved a bit over the last six months. And what we have seen is after the five basis point change and the direct deposit incentive, I think we feel much better about where we are in the competitive environment, and we are seeing that with the transition in cash net flows. As for how we think about the fee rate going forward, I will let Alan take that.

Yeah, Ryan. So I would say the 57 to 58 is just the first quarter guide. It will really depend on the uptake as to how the rest of the year goes. The thing we like about incentives such as the direct deposit incentive is that we will only have to pay the extra rate when people give us more money or take on this additional incentive by performing the action of direct deposit and funding an investment account. And so as more people adopt it, we do expect to see potentially further degradation in the fee rate, but that would also signal that we have more clients building deeper relationships across the platform with us. And so that is the balance we are looking for there.

Okay. Appreciate that. And then on the account growth, is it possible to isolate the specific trends within the investment advisory side of the business? Obviously, the trends on net deposit organic growth have been quite positive, but I would assume that there are also underlying positive trends on just the actual account growth side within investment advisory. Any color you can provide there?

Yeah. I mean, the investment account growth, as cash-only clients add investment accounts, is a key focus for us in any transition environment. And it has been probably the most significant focus inside of the company over the past three or four months. We focus on the flows because that is what ultimately leads to asset growth and, therefore, revenue growth because of our monetization strategy. But the way that we achieve that flow growth is both growing with clients over the long term and getting more clients to adopt investment products. It is too early to know exactly what the impact will be from the direct deposit incentive that we are trying. I think we are looking forward to being able to talk more about that as we get additional data in, but we have been pleased with the early response. Obviously, direct deposit takes some time to come through. There is a little bit of a lag. So we have not had a direct deposit cycle since that incentive launched. But the past incentives that we have run around investment account adoption, along with the macro environment in January and February being more conducive to investment, have helped our focus on investment cross-product adoption and new client investment growth as well.

Our next question comes from the line of Devin Ryan of Citizens Bank. Please go ahead, Devin.

Thank you. Hi, David. Hi, Alan. How are you?

Doing well. Thank you.

Good. Question, another one just kind of cash account. And just some of the outflows kind of late last year, early this year, do you have a sense of whether that money was going toward other online banks paying higher rates, or was it going to brokerages or maybe just, you know, bill pay without kind of gross flows? I would love to get a sense of that. And then do you have a sense of the remaining balances that are maybe more pure rate chasers? And how much of that is remaining? I appreciate that is probably difficult to quantify, but would love to just get some thoughts on that and some of the behavior that you did see kind of late last year into early this year.

Sure. I am happy to give a high-level answer, and then if Alan has anything he wants to add, he can chime in. So what we saw, I think, is broadly consistent with what we had discussed previously, and that is that as rate cuts occur, the larger number of rate cuts that occur in consecutive succession leads to more folks evaluating what they are doing with their cash. So we had three cuts in a row. It takes several weeks for cash net flow activity to normalize post Fed rate cut, which I think we had talked about before. We normally have a really good idea sort of four to six weeks after a rate cut has gone through. One of the interesting things that we saw in January was both: January is a seasonal high period for investing, which I think amplified some of our desire to drive additional cash-to-invest adoption, because January is a great period for folks to reevaluate their finances and think about opening investment accounts. And so we did lean into that in January, and I think some of what you see in the January numbers is that. The other thing I would point out is that the gross versus net distinction in cash flows, especially because of the liquidity features that we offer—free wires, free instant transfers, the ability to send money to escrow and title companies to buy a home—we do a lot of gross flows for cash management. We did a calculation where we look at the recapture rate of those gross flows by client in the quarter, and we are recapturing a majority of the gross withdrawals. That is consistent with what we have seen in prior periods, that we saw from clients in our Q4, and we think it shows the value of the cash management account really sustaining even as clients reach goals. Maybe they are purchasing a house or putting a down payment down. Maybe they are buying a car. They come back to the account, and we do recapture a significant chunk of those assets. I think the sort of high-level question that you asked about what are folks doing with their money is: there are folks that are doing some of all of the things that you described with their money. It is our job to be the best place for our clients to invest for the long term, the best place to save for the long term. We want to deliver the best mortgage experience that they can get anywhere as well. It will take us time to do some of those things, especially the mortgage, but that is really what the focus of the business is—leading with product and delivering the best product and the best value to our clients across their broad financial needs.

Okay. Great detail. Thank you so much. I guess a follow-up here on the repurchase authorization, $100 million buyback. Can you talk a little bit about expectations, pacing, and intent there? I think it is a strong signal. Obviously, the company has a lot of liquidity here, so in theory, even potentially more behind that. So just love to get a sense of how much is signal versus intent to actually step in and buy shares here down from the IPO price?

Yeah. Hey, Devin. It is Alan. What I would say is that we think the shares are extremely attractive at the current price. We are in a position, as you mentioned, to have a very strong balance sheet and free cash flow generation such that we can make this investment, and we will compare our ability and our willingness to repurchase against, obviously, other opportunities that we have to invest in. But we do think that we will be purchasers of our shares, especially at the current levels.

Thank you. Our next question comes from the line of Daniel Perlin of RBC Capital Markets. Your question please, Dan.

Thanks. Good evening, everyone. I guess I just wanted to kind of circle back a little bit on the home lending side. And I guess the broader context is, I heard everything you said in your prepared remarks, but how do you think that rollout, product reception, and expectations as you think about the ensuing year are going relative to when you kind of addressed investors around the IPO? I mean, it sounds pretty consistent, but it also sounds like there are some nuanced differences maybe. So I just want to make sure I understand that. Thank you.

Sure. So I think we know a lot more about the areas that we need to improve to deliver the best digital experience that we can to clients. And we are putting in focused work on those areas and gradually expanding as we go. We understand a lot more about the operational challenges and where we need to invest to drive operational efficiency so that we can do so as efficiently as possible with as digital a back-end experience as we can. The result of those things is we want to build, like we have with cash and like we have with investments, a sustained low-cost advantage in being able to deliver the products so that we are able to share the savings with clients and get them the best financial outcome. So there is a lot more that we understand with the volume of loans that we have done so far. We will continue to learn and prioritize both the operational efficiency and digital experience wins as we move along, continuing to let people off the early access list and go general availability in Colorado first. I think our understanding and our learnings are generally consistent with what we have communicated in the past. We obviously have a lot more detail now from operating in the space, operating in more states, and doing more loans than we have in the past.

Yep. That is great. Just a quick follow-up. So it was really good to see the net deposits turned positive in February. And this pivot, as you guys had telegraphed from cash management to investment advisory, was kind of taking place. I think the question that I have is, you have this weird dynamic right now where the environment may or may not produce lower rates in the near term. It might be sustained for longer. I am just wondering how you guys think about positioning yourselves maybe more in the near term in an environment where that might be the case. It might be an unfair question because it is impossible to answer, but it does feel like there is a lot more volatility around expectations for rates. So just how you are posturing maybe as we go through the next, I guess, couple of quarters. Thank you so much.

Yep. So I think we feel good about our competitive positioning after the five basis point change and the 25 basis point direct deposit incentive. Obviously, we do not know what the market is going to do in the future. We do not know what rates are going to do in the future. We do think that we are well positioned from the investment side because of our focus on global diversification. That has put us in a good position over the last few months, and what we have really seen resonating with clients is in uncertain environments, investing with global diversification is a real selling point. We sort of do not think about positioning ourselves based on what is going to happen over the next few months, but we feel good about our position because of the investments we have made over the last few years in cash, investment, and home lending also, that if rates come down, we feel like we are in a good position to help clients continue to invest or invest more. We feel like we are in a good position to be able to help them buy homes that have become more affordable at lower interest rates while also helping them continue to save for the long term and get access to liquidity as needed using tax-advantaged tools like the Wealthfront money market fund. As we have continued to build out our offering, our goal is really to help clients across the broadest range of financial situations be able to put their savings and investments to work. And that has been the focus, and we feel good about the position because of the diversity. We cannot predict the future, but we can prepare for it, and that is what we have done.

Thank you. Our next question comes from the line of James Jarrow of Goldman Sachs. Your question please, James.

Good afternoon, and thanks for taking the question. Could you just update us on the success of the match programs in the invest business so far? How much has this been driving the flows in that side of the business? And perhaps if you could just also comment on the ROIs there and how you structure that to ensure strong ROIs.

Hey, James. So I would say we are constantly experimenting with incentives. The most successful incentives that we have done for cash-to-invest adoption have actually not been the deposit matches. It has been other types of incentives that we have run to encourage cash-to-invest adoption. We are happy with the initial response to the direct deposit incentive having driven a fair amount of investment account opening. It is still early, and so we will have to see how that evolves over time. We will have to see how that evolves with new clients and if the cross-product adoption rate early in the client tenure improves as we expect it to. I think, generally, our incentives have been successful with the second-best quarter in our history at cross-product flows of cash to invest and a second record quarter of net cross-account transfers from cash to invest. But I do not think that we have overly focused on match as the driver of those. We have looked at a variety of incentives and are pursuing the ones that we feel deliver the best overall outcome to the company and to our clients.

Okay. Thank you so much. That is super helpful. I just wanted to ask a bigger-picture one. So let us say we get to a terminal Fed funds of roughly 3%, which obviously there is uncertainty as to whether we will get there. But how would you think about the right way to model the mix of your client assets across cash versus investment advisory? In other words, what percentage of client assets would you expect to be cash versus investment advisory?

Hey, James. It is Alan here. Yeah. I think it is a difficult question in the sense that there is more going on than just the level of rates. Clients are accumulating more wealth, and as we have shown in our prospectus, as clients obtain a certain level of cash, they start putting incremental dollars to work and investing, and so you start to see the investment account, which grows faster as well, really continue to grow. And that is what we have seen over the past few quarters. And did not discuss this last time, but investment advisory assets have now overtaken cash assets pretty clearly. And so when we are modeling it, I think it depends on, as well as younger clients coming in who start with cash because they are early in the journey in savings. So I think you have to have more variables than just the level of rates. I think you have to have variables around clients that are coming in and then our existing clients and their behavior. And, again, we have control over that in some of the incentives that we offer. And so that is probably how I would think about it.

Okay. Thanks a lot.

Thank you.

Our next question comes from the line of Alexander Markgraff of KBW, KBCM. Your question, Alex.

Thanks. Hey, David, Alan, Matt. Thanks for the question. A couple here. I guess just first, David, from a product standpoint, if I look at the releases in 2025, pretty busy. Just sort of curious how you think about calendar 2026 or fiscal 2027 using the sort of digestion year versus carry-forward of velocity framework? And then, Alan, just as a follow-on to that, maybe just some comments on spend priorities in the context of David's comments would be helpful. Thank you.

Hey, Alex. I guess our focus as a product development and technical organization is to be able to build automated products so that we can continue to focus most of our technical talent on delivering new products to clients and improving our existing products. We have a lot left to build. I would say that one of the things that we have seen over the past couple of years is that our roadmap only ever gets longer of things that we want to focus on and we want to get out to our clients. As we continue to build a deeper understanding of our clients' financial situations through both the qualitative and quantitative research that we do into their financial lives, we continue to have new ideas and be excited about those ideas. And so the focus that we have really is on prioritizing and focusing on the things that we think will make the biggest impact to our clients' financial outcomes and have the biggest impact on our business, but we really want to continue to accelerate product velocity, if anything, to continue to get products out to clients and improve the existing product experience so that Wealthfront Corporation is delivering the best value of any provider in the space.

Yeah. What I would say to add to that in terms of the spend, as I mentioned in the prepared remarks, the investment in home lending as well as our incentives are really where we are putting a lot of resources. We continue to work on incentives and really strengthening the core as well while we invest in home lending. And so that has not changed. We continually look at our business model flywheel and kind of prioritize around that. And so we are continually trying to figure out ways to automate to generate savings, share those savings with clients to help their financial outcomes, build that trust, get them to refer us, and grow with word-of-mouth. And some of that is used through incentives. And so we will continue to use that as our framework for how we invest.

Awesome. I appreciate that. And then, Alan, maybe just a quick follow-up, more sort of model mechanics question on the money market fund. Understanding there are a lot of factors that determine the ramp of that, but just as we see that sort of mix into the model, just a reminder on how that sort of affects the revenue lines would be helpful.

Yeah. So it will be inside of cash management. We are in a fee waiver period right now. I think starting March 1, the fee is a quarter of a percent on the management fee. And then in terms of, as David mentioned, it offers a really good after-tax yield for folks in states with high income tax. And so we will have to see in terms of the growth once we roll it out to general availability. But that is where it will fit, and that is the monetization on the product.

Awesome. Thank you both. Appreciate it.

Please press *11 on your telephone to ask a question. And as there are no further questions in queue, I would now like to turn the conference back to David Fortunato for closing remarks. Sir?

Thank you. I want to thank everyone for joining the call and for your continued interest in Wealthfront Corporation. We look forward to staying in touch and updating you on our progress in the months ahead. Thanks all.

This concludes today's conference call. Thank you for participating. You may now disconnect.

Everyone else has left the call.

Good day, ladies and gentlemen, and welcome to Wealthfronts' Fiscal Third Quarter Earnings Conference Call. [Operator Instructions]. As a reminder, this call may be recorded. I would now like to introduce your host for today's conference, Matthew Moon, Vice President, Investor Relations. You may begin.

Good afternoon, everyone, and thank you for joining us today to discuss Wealthfronts' Third Quarter 2026 financial results, which reflect the quarter ended October 31, 2025. On the line with me 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 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 Wealthfront 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 wealth. 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, establishes, 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 3/4 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 2 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 2 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 7x 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 residents 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 8 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 up 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 2 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 life cycle 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.

Thanks, David. Starting with the income statement. Revenue came in at a quarterly record of $93.2 million, up 16% year-over-year. Cash Management revenue was $68.8 million, up 14% year-over-year, primarily due to higher average Cash Management balances measured as the simple average of beginning and end of quarter figures. The average Cash Management balance in the third quarter was $46.8 billion, up 18% year-over-year and the annualized Cash Management fee rate was 58 basis points, down 2 basis points or 3% year-over-year. On the fee rate, when the Fed reduces the Fed funds target rate, we typically wait until the Friday of the following week to reduce the APY we offer our clients. This creates temporary fee compression because the interest rate we receive from banks, reprices lower immediately, while the interest rate we pay to clients remains constant for a 1-week grace period. Additionally, in a declining rate environment, the fee rate is negatively impacted by the inherent mathematical impact of converting annual percentage rates, or APR to annual percentage yields or APY. The inverse of this is true in an increasing rate environment. Investment Advisory revenue was $24.2 million, up 26% year-over-year, primarily due to average Investment Advisory balances of $43.7 billion, up 28% year-over-year, while the annualized Investment Advisory fee rate of 22 basis points was flat versus the same period last year. Asset growth was driven by both strong markets and net deposits over the trailing 12-month timeframe, including our best quarter of net cross account transfers from cash to invest in the company's history. Gross profit came in at a quarterly record of $83 million, up 15% year-over-year, reflecting a gross profit margin of 89%. Total GAAP expenses of $61.8 million were up 22% year-over-year, while adjusted operating expenses, that is expenses excluding share-based compensation, were $53.7 million, up 11% year-over-year due primarily to higher product development expense, partially offset by lower marketing expense. Adjusted EBITDA of $43.8 million was up 24% year-over-year and reflected an adjusted EBITDA margin of 47%, up 3 percentage points year-over-year. Incremental adjusted EBITDA margin was 66%, thanks to our highly efficient low marginal cost infrastructure. We continue to demonstrate significant operational and financial discipline, delivering a Rule of 40 metric of 63% for the third quarter. This is our 13th consecutive quarter of more than 3 years or more than 3 years, exceeding the Rule of 40 and underscores a business model that successfully and consistently balances robust top line growth with the structural efficiencies of our automated platform. GAAP net income was $30.9 million, up 3% year-over-year, and GAAP earnings per share was $0.21. Our adjusted EBITDA is a strong proxy for cash flow. Net cash provided by operating activities was $41.5 million and free cash flow was $41.3 million. This results in a free cash flow conversion ratio, that is free cash flow as a percentage of EBITDA of 94%. Driven by robust free cash flow generation, we continue to strengthen our debt-free balance sheet, ending the quarter with cash and cash equivalents of $266 million. Furthermore, we significantly enhanced our financial flexibility during the period by expanding our revolving credit facility to $250 million from $50 million previously. Cash balances do not include net cash proceeds from activities related to our IPO in December of over $130 million, which in combination with cash generated from operating the business, brings our cash and cash equivalents to over $400 million today. A couple of housekeeping items for your models related to the IPO. First, the completion of our offering satisfied the performance condition for all time-vested dual-trigger RSUs, which will result in a onetime noncash stock-based compensation charge that will contribute to total stock-based compensation in the fourth quarter ending January 31, 2026, in the range of $245 million to $250 million. Second, our post-IPO fully diluted share count is approximately 189 million shares. With the quarter wrapped, I want to spend a moment on our inaugural monthly metrics report, which we published alongside today's earnings release for the trailing 13 months through December. We will not be providing quarterly guidance, but will instead provide these monthly metrics as the quarter progresses with metrics for the first 2 months reported intra-quarter and with metrics for the final month reported alongside earnings for that quarter. Total Platform Assets continue to hit records in November and December, ending at $93 billion in Total Platform Assets in December, a new month-end record. Cash Management asset growth was moderated by recent reductions in the Fed funds target range in September, October and December. Due to the lagging impact of our 7-day rate grace period, clients felt the end of October rate cut in November. The December rate cuts made it 2 consecutive months of rate cuts for clients. However, these headwinds were more than offset by growth in Investment Advisory assets, primarily due to net deposits, representing double-digit annualized organic Investment Advisory growth in December. November and December figures include the continuation of strong cross-product adoption and net cross account transfers from cash to invest. Keeping assets within the ecosystem during transition environments is a key part of our strategy. Assets moving from Cash Management to Investment Advisory will lower revenue in the short term due to the lower relative fee rate for Investment Advisory assets, but due to faster investment asset growth will benefit clients and Wealthfront in the long term. We continue to execute against this objective with asset-weighted cross-product adoption, that is assets held by clients with both Cash Management and Investment Advisory accounts, ending December at 60%, up nearly 1 percentage point versus the end of the third quarter. As David noted, the natural hedge between Cash Management and Investment Advisory is an intentional feature of our business model, enabling us to grow and retain platform assets throughout various transition periods, and transition periods are not new to us. In just the last 6 years, we have experienced and seen mostly consistent continuous growth in Total Platform Assets throughout transition periods, including the COVID-19 pandemic, which included a swift bear market followed by a market recovery and low interest rates, the aggressive rate hiking cycle to combat inflation, which led to another bear market in 2022, and more recently, the 100 basis points of Fed rate cuts at the end of '24, the tariff shock early in '25 and 75 basis points of Fed cuts at the end of 2025. Each transition plays out differently, but the fundamental aspect of a transition is a mix shift in asset allocations. The expanded breadth of our product suite, coupled with continuous feature enhancements and new platform incentives gives us confidence in our ability to grow Total Platform Assets through the current easing cycle. Furthermore, we believe the recent launch of Home Lending provides a critical strategic offset as a lower rate environment typically stimulates mortgage and refinancing demand. This product allows us to capture a larger share of our clients' balance sheets precisely when Cash Management tailwinds moderate. Our business is fundamentally aligned with the interest of our clients. Simply put, we succeed only when they do. We believe that as long as we continue to deliver products that truly delight our clients, they will engage more broadly with us, entrust us with more of their wealth and recommend our platform to their friends, family and coworkers. We are deeply committed to this long-term journey alongside them. With that, let's move to Q&A.

[Operator Instructions] First question comes from the line of Devin Ryan with Citizens Bank.

Good to talk David, congrats on the first earnings call here. I guess we want to start on the mortgage offering. And just love to get a sense of any of the early learnings as you guys are just starting to roll this out, kind of what you're hearing from customers? Is it as you expected kind of prior to rolling it out? And then if you can just remind everybody here kind of where you feel like on the product differentiation itself, like what the experience benefits are of Wealthfront versus whatever else is in the market right now?

Yes. So thanks, Devin. The fundamental offering really is a great digital experience and a great rate that will be better than they'd find elsewhere. We've made good progress. We originated our first home mortgage in the third quarter and started letting clients off the wait list in November. We initially started in Colorado. We've expanded and are letting clients off the wait list now in Texas and California. It's still early days, and there's still a lot left to learn. We've continued to work to expand our license coverage and now support a majority of our clients. We still have a long way to go. The opportunity size is relatively large. We've sent just from Wealthfront Cash Management accounts, $2.5 billion in wires to title and escrow companies in calendar year '25. You can make some assumptions on the typical down payment to get to an opportunity size, which we believe is both large, and we have the ability to take advantage of. As we exit the holiday period, we're still in a relatively low seasonal period for Home Lending, but early results are promising, and we're continuing to stay focused on building for the long term. This is not a journey that's going to take us a few months to be at sort of our peak. We think it's going to be the course of multiple years, give us the opportunity to build an amazing experience for our clients and for prospective clients in the future.

That's great. And then as a follow-up, just on the monthly you're providing, obviously, would be very helpful to have this. So I appreciate that. In terms of the December month, can you share anything around just the customer trends? I know the market is a bit more volatile, but a bit of outflow. So any sense of kind of the dynamics there? And then just kind of momentum in deposit gathering here kind of early in the new year and expectations there would be helpful.

Yes. Thanks. So we saw three consecutive Fed rate cuts continue to grow total assets on back-to-back month ends for November and December month-ends. When interest rates decline, we expect to see a slowdown in Cash Management Assets and an increase in Investment Advisory Asset growth. Ultimately, our focus is on continuing to grow Total Platform Assets. The internal focus over the last few months and generally during any transition period is on incentivizing cross-product adoption of investment accounts and retaining client assets on the platform as clients with both accounts are the ones that are most likely to bring more assets to the platform over time. The build-out that we've done over the last few years of investment offerings, we think, has put us in a great position to be able to help folks adopt investment products in their journey. And I think we've executed cross-product adoption quite well during the recent Fed cutting cycle. Alan mentioned that asset-weighted cross-product adoption is up above 60% at December-end. It's up 2% year-over-year from December 2024, but the total assets that are covered by clients with both Cash and Investment Management accounts has grown by more than $10 billion in that period because we have grown assets while growing asset-weighted cross-product adoption as well. So we feel pretty good about the results that we've gotten from driving cross-product adoption. We think that sets us up well for growth going forward in the future. And it gives us a good opportunity to continue to expand with Home Lending as we build broader and deeper relationships with these clients.

Our next question comes from the line of Ryan Tomasello with KBW.

I wanted to drill down into the customer acquisition strategy in mortgage, specifically, how you think Wealthfront is positioned to meet customers before they engage with agents? Who, as I'm sure you know, like tend to control a lot of that referral process on the mortgage side. And if you could also just remind us the structure of the mortgage business, including the partnership with United Wholesale and just the ownership structure? That would be helpful.

Yes. Thanks, Ryan. The first thing I would say is folks join Wealthfront really to save and invest, and they often have goals in mind. Our financial planning interface gives clients the ability to plan for retirement, plan for sending kids to college. It also helps them plan for buying a home. And that's one of the goals that clients engage with most frequently. So we have reasonable visibility into what clients are looking to do with their savings on the platform, and that gives us pretty early visibility that they might be focused on buying a home and engagement with that goal, changing the number of bedrooms they're looking for or in what markets they're looking to buy a home is a great early indicator that they are more actively engaging in the home buying process. That gives us the opportunity to really present the ease of the experience that we offer, if we can support those clients in their home states, get them prequalification letters, which generally clients will pull even before they significantly engage with a realtor. So they start to understand what they can afford and the realtor will often ask for that prequalification letter early in the process. We think that gives us a great opportunity to be able to engage with clients very early in their home buying process, even kind of before the home buying process would normally be considered to have started. And as we're able to build that, we also have the ability to add incentives for the home lending process. We have nothing that we've rolled out yet, but it is something that we're actively looking at to provide incentives to help clients save for a down payment on the platform and then actively engage with our home buying experiences as well. Ultimately, we think if we deliver a great experience to clients, that will lead to word-of-mouth growth for the home lending product like it does for our Cash Management and our Investing product as well. And then on the ownership structure, we are working to revisit the -- or revise the ownership structure to have Home Lending -- the Home Lending subsidiary fall under the Wealthfront Corporation umbrella. The ownership structure that we have was formed intentionally to limit exposure of personal financial information of the LPs and GPs of the equity owners of Wealthfront as a private company. That disclosure was required by various state laws. The primary issuance via the IPO helped ameliorate these ownership thresholds. And once fully remediated, we do plan to restructure ownership of the Home Lending subsidiary. All that said and discussed in the S-1, it's important to note that the relevant management and financing agreements that Wealthfront Corporation has today gives Wealthfront Corporation the ability to direct the activities of Wealthfront Home Lending and absorb and fund all benefits and losses of Wealthfront Home Lending.

Great. Appreciate all that detail. And then in terms of the product development pipeline, as you think about ways to bolster asset retention, curious if the company would consider offering a more traditional self-directed investing product, basically to add another funnel on the Investment Advisory side of the business to recapture potential outflows on the cash side in a less favorable rate environment.

Yes. So our Stock Investing product is the closest product that we have today to a kind of standard self-directed account. It's been the second most popular product for account openings over the last few months behind our automated investment account in terms of number of clients getting started there. It is an area of very active focus for us to continue to improve that product experience and give clients who do want to engage with the Stock Investing product, a great experience at being able to self-direct their investment choices. We also see it as an aggregation opportunity to help consolidate existing client assets on the platform so that they can see everything and manage everything in one place. So if you think about sort of our focus areas for investment, we're obviously continuing to do a lot of work on our automated investment account and see opportunities to drive additional value with the product offering there. And I would say our other focus on investing is really in the self-directed Stock Investing account.

Our next question comes from the line of Dan Perlin with RBC Capital Markets.

And again, let me offer my congratulations on your inaugural quarter here post the IPO. The question I have to start with is you've had historically just a very high referral rate, very organic in nature to drive a lot of new clients and obviously asset gathering. But now that you've done the IPO, you've got a brand out there clearly that's going to be more obvious to people. I'm wondering what that go-to-market motion might look like? Would you be willing to kind of step up investments there? Especially at a time when investors are potentially coming out of the cash accounts and moving into the advisory space?

Yes. I mean the first thing that I would say is the business does follow some seasonal patterns and trends. So as we enter Q1, Q1 is historically -- or calendar Q1 is a solid time for sign-ups, sort of around the same period that people are focused on going to the gym, they're also focused in making improvements to their finances. Over 50% of our new clients in the last 2 years have been through referrals, and we continue to see referrals be a primary way to bring folks onto the platform. We did make some incentive changes recently, which give us a little bit of flexibility in the way that we do some of our paid marketing. So we added a benefit for new clients joining the platform that are not referred, and then we increased the benefit to the referral product from 50 basis points to 75 basis points, which continues to reserve the best incentive that we offer to existing clients that are referring their friends, family and coworkers, but at the same time, provides an incentive to folks that are either visiting the website organically or the app organically or are engaging through our paid channels. So I think you can sort of see from that, we are both trying to drive incentives, which optimize our ability to convert clients coming in through organic and paid channels, while still trying to make sure that the referral channel is the most valuable channel to come in both for clients and it obviously is the most valuable channel for us because folks tend to come in with higher asset levels and adopt more products more quickly if they come in through the referral channel.

Yes. Super efficient, and you guys have been very successful in doing that. The other quick question I have, maybe for Alan is just as we think about the gross margin implications to the extent there is any as you move kind of from the Cash Management account into Advisory, anything to kind of flag for investors as we move forward in that potential rate cycle?

Thanks, Dan. On a margin basis, actually, the Investment account is just as profitable, if not more incrementally profitable than Cash Management, and that's primarily due to the fact that the Cash Management account has really the only true variable cost associated with it. Obviously, on an absolute dollars basis, the Cash Management account because of the higher fee rate will generate a higher gross profit margin dollars. But on a pure relative margin basis, investment accounts are just as profitable. And so the gross profit margin shouldn't be as impacted.

[Operator Instructions] Our next question is from Alex Markgraff with KBCM.

Congrats on the transaction. David, maybe one, just to better understand some of the asset retention story. Could you just give us a sense of the client experience from a life cycle marketing standpoint? You mentioned some incentives just as to sort of what the client sees and feels as they're making those decisions on asset allocation at this point in time?

Yes. I mean one of the things that I think that we think is important in understanding both our clients and clients of other platforms is the jobs to be done framework. And so the jobs that our clients hire us to do is to turn their savings into wealth and build wealth over the long term. We think that puts us in a position where the life cycle marketing, sort of the ongoing messages that we provide to clients, both in-app and over e-mail and through our content marketing is focused on growing clients' wealth overtime. And so when there are Fed rate cuts, we want to orient clients to other opportunities that exist in product. And the diversity of products that we have gives us the ability to offer products like the automated bond ladder account for folks that might not be ready to sort of put more of their money into equity markets. The automated bond portfolio, which is a little bit higher yielding and a little bit higher risk than the bond ladder product, up to our automated investment account, which we think is the best way to build wealth over the long term, along with some more self-directed style offerings, which we would include the Direct Indexing products and the Stock Investing Account. The incentives that we've used has been some experimentation around accelerating that adoption. We've had good early results in December with incentives to drive additional cross-product adoption. I think we've seen both asset flows and account opening accelerate as a result of that. I think we're quite happy with the incentives. We think it puts us in a much better position. And ultimately, we've achieved record assets as of the beginning of this weekend. So I think we crossed $94 billion at the beginning of the weekend because of the cross-product adoption that we've been able to drive and the continued engagement with the platform more broadly.

Understood. I appreciate the color there. Maybe just one on -- I know there was an earlier question on client growth, but maybe just to come back to that. I think as you all have shared in filings and in the deck here, obviously, a very large opportunity ahead of the company. Maybe just curious, stepping back, how you think about -- or Alan, any comments on how you think about deploying acquisition dollars in the near term? Understanding there's some seasonality in the very near term, but maybe stepping back a little further, just talk about how you think about client growth and the opportunity at hand given it is so large?

Yes. What I would say is we're still in a transition environment mostly focused on cross-product adoption. So from cash to invest, we've grown clients quite strong over the past few years in the high rate cycle intentionally. And now during a transition environment, the most important thing is incentivizing and executing on cash to invest. And even outside of that, as David mentioned before, our most important client acquisition strategy and obviously most efficient and effective is the referral channel. Some of that comes with incentives, and so we can use capital to put to work there as well. But that's where you're going to see kind of our focus. We've been that way really since inception is on the referral. So we'll continue to look out for opportunities around paid and do some of our normal paid spend. But during this environment, it's cash to invest and still we're always looking at the referral channel.

We have a question coming from the line of Rob Ryan with Wells Fargo.

Other than the automated investing program, all of your products on the investment side are fairly new, either brand new or maybe less than 3 years old. So what has been the product uptake for the new investment products? Has this changed over time? And where did these new products stand in terms of contribution to total October 31 investing platform assets? And because of the differences in the fee rates, in a way, wouldn't it kind of be good if we saw a bit of a downtick in your average management fee rate?

Yes. Thanks for the question, Rob. I would start by saying our goal is to grow total platform assets. And so if clients want to engage with some of the direct indexing products, that's great. If they want to engage with the automated investing account, that's great. We think that we can offer all of these products profitably over the long term. That said, most new clients and most new assets on the investment side of the business join us for the automated investing account. The other products help us in different macro environments and different transition environments, and they help drive cross-product adoption of cash first clients to investment accounts over time. Each of the categories, so the Automated Bond Ladder, the Automated Bond Portfolio, the Direct Indexing Accounts and the Stock Investing Accounts are over $1 billion in assets, each. So we have seen good relative growth of all of those products. But the fastest absolute growth that we've seen continues to be in our automated investment account, which provides a globally diversified tax-efficient investment option that takes care of all of the difficult choices that a client might have to make in their asset allocation without them having to think about it.

And I'm not showing any further questions. I would now like to turn the call back to David Fortunato for any further remarks.

I want to thank everyone for joining the call and for your continued interest in Wealthfront. We look forward to staying in touch and updating you on our progress in the months ahead. Thank you all.

Ladies and gentlemen, thank you for participating in today's conference. This concludes today's program. You may now disconnect. Everyone, have a great day.