Company: WLTH
Filing Date: 2025-07-28
Form Type: DRS/A
Source: 0001628279-25-000486
Chunk: 149

Company: WEALTHFRONT CORP
Filing Date: 2025-07-28
Form: DRS/A
Chunk 149
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:|:----|:--|---------:|:----|:----|---------:|:--|
| Cost of revenue                    |                                    | $                             |  22,898 |     | $ |  30,964 |     | $ |    8,066 |     |     |       35 | % |
| Product development                |                                    |                               |  57,558 |     |   |  64,515 |     |   |    6,957 |     |     |       12 | % |
| General and administrative         |                                    |                               |  23,766 |     |   |  29,092 |     |   |    5,326 |     |     |       22 | % |
| Marketing                          |                                    |                               |  21,150 |     |   |  52,196 |     |   |   31,046 |     |     |      147 | % |
| Operations and support             |                                    |                               |   9,767 |     |   |  10,619 |     |   |      852 |     |     |        9 | % |
| Total costs and operating expenses |                                    | $                             | 135,139 |     | $ | 187,386 |     | $ |   52,247 |     |     |       39 | % |

Cost of Revenue

Cost of revenue increased by $8.1 million, or 35%, for the fiscal year ended January 31, 2025, compared to the prior year. The increase was primarily due to an increase of $5.2 million in cash management costs, an increase of $2.0 million in brokerage platform fees, and an increase of $0.8 million in other cost of revenue. The increases were in line with the growth of cash account assets, an increase in the number of new and existing clients and accounts, and an increase in money movement volumes. See the section titled “—Components of Operations—Costs and Operating Expenses” for additional information.

Product Development

Product development expenses increased by $7.0 million, or 12%, for the fiscal year ended January 31, 2025, compared to the prior year. The increase was primarily due to an increase of $6.3 million in personnel-related expenses due to increased headcount, which reflected a $1.4 million decrease in stock-based compensation. Upon the closing