Wealthfront’s public offering follows other fintech IPOs this year, including Chime and Klarna.
Nasdaq / Vanja Savic
Wealthfront, a Palo Alto fintech company with 1.3 million customers that offers automated investing portfolios and high-yield cash accounts, made its public debut today and saw its stock trade mostly sideways, finishing the day up just 1%. Investors now value the company at $2.1 billion when counting its share total of 151.5 million. Wealthfront raised $485 million in the IPO.
Over the past several years, Wealthfront’s expansion into high-yield cash accounts has been particularly successful, helping drive its total assets under management to about $90 billion and propelling it to profitability. In a September 30, 2025, regulatory filing, Wealthfront reported revenue of $339 million and net profits of $123 million for the year ended July 31, 2025. Revenue grew 26% versus the year prior. Last month, it announced it was expanding into mortgages.
In 2025, fintech stocks’ performance has been mixed. Standouts like Robinhood, Nubank and SoFi have all seen their stocks surge more than 50%, while payments giants PayPal and Block have watched their shares fall about 25%. Meanwhile, the S&P 500 has been up 15%. Other fintech IPOs earlier this year, including Chime and Klarna, saw double-digit stock pops on their first days of trading, but their shares have since fallen below their IPO prices.
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David Fortunato joined Wealthfront in 2009, the year after it was cofounded by venture capitalist Andy Rachleff and former trader Daniel Carroll. Fortunato became Wealthfront’s CEO in 2021. In 2022, UBS agreed to acquire the robo-advisor for $1.4 billion, but the deal fell through. Asked what he’ll do after the IPO milestone, Fortunato told Forbes, “I’m excited to get back to San Francisco tomorrow morning, get a good rest this weekend and get back to building on Monday.”
He’ll be going home from work tonight with a much higher net worth. His 6% stake in Wealthfront is worth more than $100 million. Wealthfront cofounders Andy Rachleff and Dan Carroll have 12% and 4% stakes, respectively.
Prior to the IPO, the company had raised between $200 and $300 million in total equity funding, turning the $2 billion exit into a nice payday for its venture capital investors. Among Wealthfront’s largest shareholders are Tiger Global, which held 22 million shares (or 20% of the company) worth about $300 million prior to the IPO. Tiger had invested about $90 million to get there, according to The Information, and it sold about one-third of its shares in the public offering. Among Wealthfront’s other big backers who saw big returns were DAG Ventures (now with a 9% stake in Wealthfront), Index Ventures (9%) and Ribbit Capital (7%).
