Robo-advisor that actually makes money, or why Wealthfront’s unit economics could turn it into the Berkshire of millennial wealth 🤑📈; London VC firm just made European venture capital history 🤯💸
FinTech is Eating the World, 15 January
Hey Everyone,
Good morning & happy Thursday! Today is super packed as we’re diving deep into recently IPO’d Wealthfront, which just posted its first earnings as a public FinTech, to see why it could become the Berkshire of Millennial Wealth (deep dive into their Q3 2026 breaking down the most important financial facts & figures, what they mean, and why Wealthfront is worth your time & money in 2026 + bonus deep dives into competitors SoFi & Robinhood inside); and a London VC firm, which just made European venture capital history (inside Balderton Capital that turned millions to billions from backing Revolut, why it matters and what’s next + Revolut’s original Seed pitch deck that started it all inside). So let’s jump straight into the fascinating stuff 🌶️
The robo-advisor that actually makes money, or why Wealthfront’s unit economics could turn it into the Berkshire of millennial wealth 🤑📈
Earnings time 📞 Wealthfront WLTH 0.00%↑ just delivered its 5th consecutive quarter of profitable growth, posting record revenue of $93.2 million (+16% YoY) while generating $41.3 million in free cash flow at a 47% adjusted EBITDA margin 😳
Remember, this is a recently IPO’d FinTech, yet their margins would make enterprise software companies jealous. And it’s getting better, not worse 👏
Sure, the quarter wasn’t flawless - net deposits of $1.6 billion came in well below the $4.4 billion bonanza a year ago when regional bank chaos sent depositors scrambling for safety. But here’s what the market is missing: Investment Advisory assets surged 31% YoY to $45.8 billion, and the company recorded its best quarter ever for cross-account transfers from Cash Management to Investment Advisory 😳
This means Wealthfront isn’t just gathering assets - it’s converting them into stickier, higher-margin revenue, and that’s the key.
Let’s dive deep into this, uncover the most important financial facts & figures, understand what they mean, and see why WLTH 0.00%↑ is worth your time and money in 2026.
