Reported results
- GAAP total revenue of $91.9 million increased 1% year-over-year; GAAP net income (diluted) of $17.6 million decreased 49% from $34.7 million in the prior year quarter.
- GAAP diluted earnings per share of $0.10 compared to $0.24 in the prior year quarter, primarily due to higher stock-based compensation expense from dual-trigger stock awards following the December 2025 IPO.
- Non-GAAP adjusted EBITDA of $38.1 million declined 15% year-over-year; non-GAAP adjusted EBITDA margin was 41% compared to 49% in the prior year quarter.
- Non-GAAP adjusted free cash flow of $28.3 million decreased 27% from $38.8 million in the prior year quarter; non-GAAP adjusted free cash flow conversion was 74%.
- Total platform assets of $99.0 billion comprised Investment Advisory Assets of $54.1 billion (up 30% year-over-year) and Cash Management Assets of $44.9 billion (down 4% year-over-year); funded clients increased 14% year-over-year to 1.51 million.
- Net cash provided by operating activities was $47.3 million; the company repurchased 3.3 million shares for approximately $30 million and maintained cash balances above $450 million at quarter-end with a debt-free balance sheet.
Notes
The significant increase in stock-based compensation expense ($16.4 million in Q2 2027 versus $1.6 million in Q2 2025) was driven by recognition of dual-trigger stock awards following the IPO in December 2025, which reduced GAAP profitability. Beginning with fiscal Q2 2027, the company includes deposit matches from client promotions within net deposits starting June 2026, aligning with the Custodial Accounts launch.
Price and volatility reaction
The stock moved +15.0% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved +66.5 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 9.46 | 2026-09-09 |
| Close after release | 10.88 | 2026-09-10 |
| Realised move | +15.0% | close to close |
| 30d ATM IV change | +66.5 vol pts | constant-maturity series, not the front expiry |
Source
The figures above come from the earnings release the company filed with the SEC on 2026-09-09 (8-K, Item 2.02). Read the original filing on sec.gov.