Company: WLTH
Filing Date: 2025-07-28
Form Type: DRS/A
Source: 0001628279-25-000486
Chunk: 4

Company: WEALTHFRONT CORP
Filing Date: 2025-07-28
Form: DRS/A
Chunk 4
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 return on an account over a year, taking into account the effect of compounding interest.

“Cash account fees” means fees earned from program banks in our cash sweep program with respect to clients’ cash account assets swept to each program bank.

“Client retention rate” is calculated as (x) 1 minus (y) the number of churned clients in the period divided by funded clients at the end of the immediately preceding period.

“Churned client” means a funded client whose accounts have been closed by either the client or by Wealthfront.

“Digital natives” mean individuals born after 1980 (i.e., Millennials, Gen Z, and later generations).

“Global Financial Crisis” or “GFC” means the global financial crisis of 2007 to 2009.

“Gross margin” means the percentage of revenue remaining after covering direct costs of delivering our platform, products and services, as reflected in cost of revenue.

“ETF” stands for exchange-traded fund.

“FDIC” stands for Federal Deposit Insurance Corporation.

“Funded clients” means clients who, as of the measurement date, have at least one open account with Wealthfront in which the outstanding value of assets is greater than zero or has been greater than zero on at least one occasion at any time or prior to the measurement date. Funded clients include clients whose accounts maintained a zero balance as of the measurement date.

“Net-of-fee after tax returns” means the investment return that a client earns net of any fees we charge and amounts due for taxes.

“Net deposits” means the value of all assets our clients have placed into products on our platform, net of withdrawals, over a defined period of time. We exclude changes in value attributable to financial market movements from this metric.

“Net income margin” means the percentage of total revenue remaining as net income after the deduction of all expenses, taxes, and interest.

“Net revenue retention” is calculated by dividing total revenue in the current period from all funded clients that existed at the beginning of the period, by total revenue from those same clients in the prior period, inclusive of any clients that have churned. Revenue from new clients acquired during the period is excluded from this calculation.

“Platform assets” means the total value of financial assets held by clients in their accounts as of a stated date on our platform.

“Program banks” means FDIC-insured banks to which we sweep our clients’ cash account assets, which are disclosed on our website and subject to change from time to time.

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