Company: WLTH
Filing Date: 2025-07-28
Form Type: DRS/A
Source: 0001628279-25-000486
Chunk: 138

Company: WEALTHFRONT CORP
Filing Date: 2025-07-28
Form: DRS/A
Chunk 138
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55.2 million due to the one-time deferred tax benefit of $80.2 million, resulting primarily from the release of the full valuation allowance on our historical net deferred tax assets. This combination of growth and profitability demonstrates our ability to grow efficiently with high margins in any economic environment.

#### Our Revenue Model
We generate revenue primarily from our cash management and investment advisory products.

Cash Management

We primarily generate revenue from our cash management products from cash account fees which we earn from the program banks (FDIC-insured banks to which we sweep our clients’ cash) in our cash sweep program. Each program bank pays us a rate that is equal to a major interest rate benchmark (e.g., the Fed Funds Rate or Secured Overnight Financing Rate) plus a fixed negotiated premium that they are willing to pay on clients’ cash that is swept to them. The rates offered by these program banks are impacted by market demand for cash assets and other economic forces. By passing along the majority of the wholesale rates paid by program banks, we have been able to offer our clients a predictable and more attractive rate. 14 While our cash sweep program processes client money movements daily (or the next day if a request is submitted during non-business hours), instant withdrawals and debit card spending are available 24/7.

In addition to a high interest rate, our clients have access to typical checking features including debit card, early direct deposit, bill pay, and mobile check services, which we enable through our bank partner and program banks. Unlike most financial institutions and FinTechs that charge their clients fees or subscriptions for high APY savings and checking accounts, our cash management account provides clients with a transparent, no cost experience that combines the typical features of a checking and savings account (e.g., debit card, early direct deposit, bill pay and mobile check deposit services).

Our fee structure reflects our belief that clients should keep more of their money working for them—not lost to hidden or transactional charges. Our ability to offer competitive rates while maintaining strong unit economics creates a differentiated and scalable model for attracting cash account deposits. Although our agreements with our clients do not specify the portions of cash sweep interest retained by us or passed along to our clients, we communicate any changes to the APY clients receive on their cash assets quickly and transparently via email. Furthermore, digital natives are just beginning their wealth accumulation journey and prioritizing saving for upcoming life events (e.g., marriage, buying a home, starting a family). Accordingly, our clients prefer to hold cash across all economic cycles, which