Robo platform Wealthfront teases IPO plans

Robo platform Wealthfront teases IPO plans
The digital investment platform's announcement of a confidential submission to the SEC comes amid a broader trend of consumer fintech firms going to market.
JUN 23, 2025

Robo-adviser Wealthfront has confidentially filed a draft registration with the Securities and Exchange Commission for a proposed initial public offering, the company announced Monday.

The firm did not disclose the number of shares it intends to offer or the pricing range.

The IPO is expected to move forward after regulatory review, subject to market conditions, according to the thinly-detailed release.

Founded in 2008, Wealthfront was among the first digital investment platforms to automate portfolio management through low-cost, algorithm-driven services. It currently oversees more than $85 billion in client assets and serves over a million clients, accprdomg to its Website.

The Palo Alto-based fintech has expanded its product lineup in recent years, including the introduction of an automated bond portfolio built from Treasury and corporate bond ETFs.

While the firm did not specify a valuation target, prior reports have suggested it was worth as much as $1.5 billion during acquisition discussions with UBS in 2021.

In early 2022, UBS Group agreed to acquire Wealthfront for $1.4 billion in cash but later backed out of the deal. UBS instead purchased a $69.7 million convertible note from the company, allowing for future equity conversion at the previously agreed valuation.

Following the deal’s termination, Wealthfront CEO David Fortunato wrote in a blog post that the firm would remain independent and explore future collaboration with UBS.

“With this fresh round of funding under our belt along with the ability to begin self-funding the business, we are committed to building a lasting company that positively impacts the lives of our clients for decades to come,” Fortunato said at the time.

In 2023, Wealthfront reported EBITDA profitability and revenue growth of nearly 140% year-over-year, with margins above 40%. The firm attributed much of its financial performance to client demand for automated solutions and new fixed-income offerings.

“Our focus on automation allows us to deliver more value to the client, and we look forward to continuing this work,” Fortunato said in a November 2023 statement.

Wealthfront’s filing comes amid signs that fintech firms are regaining access to the public markets. Earlier this month, rival Chime Financial completed an $864 million IPO, and firms including Klarna and Plaid are reportedly weighing public listings, as per reporting by Bloomberg.

The platform has maintained a respectable standing near the top of the robo charts, with the latest 2025 Robo-Advisor report from Morningstar giving it above average ratings overall, driven by competitive advantages on price and breadth of services.

"This is a solid, inexpensive package overall, but many of Wealthfront’s portfolios are on the aggressive side," the report said, highlighting a 19% maximum allocation to an emerging-market equity ETF in its highest-risk portfolios, as well as its 10% cap on cryptocurrency ETFs in investors' portfolios. "Those caveats aside, Wealthfront offers many innovative and beneficial services."

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