Company: WLTH
Filing Date: 2025-06-18
Form Type: DRS
Source: 0001628279-25-000372
Chunk: 171

Company: WEALTHFRONT CORP
Filing Date: 2025-06-18
Form: DRS
Chunk 171
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 client retention rate of over 95% for each of fiscal 2024 and fiscal 2025, which provides a stable and recurring revenue stream

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for us, reducing the need for constant customer replacement. Each one of our client vintages has demonstrated platform asset growth over the past decade.

Our Organic Client Acquisition Engine via Word-of-Mouth Referrals Drives Efficient Customer Adoption to Our Platform

Our business benefits from organic growth driven by a strong word-of-mouth referral pipeline. Over the past two fiscal years, over 50% of new clients were referred by existing clients. This high volume of referrals underscores existing clients’ satisfaction and trust in our platform. Clients who come to us organically tend to demonstrate stronger intent, greater long-term trust in Wealthfront, and thus, higher long-term retention.

Our approach to driving organic growth is intentional and has been core to our marketing strategy from the company’s inception. Our ability to drive organic growth is rooted in our deep understanding of our clients. We have a dedicated client research team focused on understanding our target clients’ needs and how they perceive Wealthfront’s ability to address their needs relative to the other offerings in the marketplace. Our product development process is rooted in putting our clients’ interests first. One of our product principles is that a product is not finished until it delights our target clients. Our organizational focus on understanding and delighting our target clients has allowed us to create products our clients love and, in turn, are excited to refer to friends and family.

Paid marketing is difficult in financial services, as individuals, especially digital natives, are not easily swayed by traditional and generic advertisements to move their hard-earned wealth. Accordingly, we believe our carefully constructed incentive based referral-driven growth model is a competitive advantage.

#### Product-Led Growth

#### Deepening Relationships with Existing Clients
Since inception, Wealthfront has primarily pursued a product-led growth strategy. We have been, and will remain, a pioneer and innovator of automated financial products.

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Our products are purpose built to continually address the unique preferences and financial needs of wealth-building digital natives. The growing digital-native generations prefer a financial platform that is fast, convenient, technology-enabled and lower-cost compared to legacy alternatives. Unlike many incumbent platforms who are focused on older generations, Wealthfront does not face the innovator’s dilemma, allowing us to develop a platform that best caters to the needs of our core client base. Unlike many other FinTechs, trust and