Executive Summary

Q3 2024 revenue was $345.9M, up 9% YoY; Adjusted EPS was $0.70 and Adjusted EBITDA $80.5M, reflecting stronger asset-based revenue mix and continued margin improvement .
Asset-based recurring revenue rose 16% YoY and comprised 65% of total revenue; subscription revenue represented 33%, and professional services declined 30% YoY, highlighting mix shift toward recurring asset fees .
The company did not host a Q3 earnings call and withdrew Q4 guidance due to the pending Bain Capital transaction, which is a key narrative driver and near-term catalyst for the stock .
Liquidity strengthened: cash rose to $193.4M; debt remained $892.5M with an undrawn $500M revolver; free cash flow improved markedly to $76.2M in Q3 .

What Went Well and What Went Wrong

What Went Well
- Asset-based recurring revenue up 16% YoY and 65% of total, supporting top-line growth and operating leverage .
- Adjusted EPS and Adjusted EBITDA grew to $0.70 and $80.5M, respectively; income from operations improved to $7.0M versus $0.6M a year ago .
- Strong free cash flow of $76.2M and higher cash balance ($193.4M), with revolver undrawn, indicating improved cash generation and liquidity .
What Went Wrong
- GAAP diluted EPS was $(0.03) as higher G&A and other expenses offset revenue gains; general & administrative expense rose 27% YoY to $63.4M (18% of revenue) .
- Professional services revenue fell 30% YoY, reflecting ongoing pressure in non-recurring services .
- No Q3 call and no Q4 guidance due to Bain transaction, reducing transparency and near-term estimate visibility .

Sequential and YoY performance

Metric	Q1 2024	Q2 2024	Q3 2024
Revenue ($USD Millions)	$324.95	$348.27	$345.95
GAAP Diluted EPS ($)	$0.05	$(1.44)	$(0.03)
Adjusted EPS ($)	$0.60	$0.55	$0.70
Adjusted EBITDA ($USD Millions)	$70.38	$77.81	$80.54
Income from Operations ($USD Millions)	$8.71	$(75.55)	$7.01

YoY comparison for latest quarter

Metric	Q3 2023	Q3 2024
Revenue ($USD Millions)	$316.85	$345.95
GAAP Diluted EPS ($)	$0.13	$(0.03)
Adjusted EPS ($)	$0.56	$0.70
Adjusted EBITDA ($USD Millions)	$65.33	$80.54

Segment revenue trend

Segment Revenue ($USD Millions)	Q1 2024	Q2 2024	Q3 2024
Envestnet Wealth Solutions (Total)	$289.81	$312.11	$311.52
• Asset-based	$202.62	$219.49	$224.98
• Subscription-based	$84.17	$84.73	$82.72
• Professional services & other	$3.03	$7.89	$3.83
Envestnet Data & Analytics (Total)	$35.14	$36.17	$34.43
• Subscription-based	$33.29	$33.25	$32.69
• Professional services & other	$1.85	$2.91	$1.74

Key KPIs (Wealth Solutions)

KPI	Q1 2024	Q2 2024	Q3 2024
AUM ($USD Billions)	$452.464	$471.978	$510.453
AUA ($USD Billions)	$471.401	$471.479	$495.995
Total Platform Assets ($USD Trillions)	$6.082	$6.271	$6.541
Total Platform Accounts (Millions)	19.645	19.442	19.856
Total Advisors	109,076	110,052	111,336

Metric	Period	Previous Guidance	Current Guidance	Change
Company guidance policy	Q4 2024	Guidance historically provided; Q2 guidance given earlier in 2024	No Q4 guidance; no Q3 call due to pending Bain Capital transaction	Withdrawn
Adjusted EBITDA	Q2 2024 (prior)	$71.0–$75.0	N/A for Q4 2024	N/A
Adjusted EPS	Q2 2024 (prior)	$0.60–$0.65	N/A for Q4 2024	N/A
Total revenue	Q2 2024 (prior)	$337.0–$345.0	N/A for Q4 2024	N/A

Note: The company explicitly declined to provide Q4 guidance and did not host the Q3 call due to the pending Bain Capital transaction .

There was no Q3 2024 earnings call; the company cited the pending Bain Capital transaction and withdrew Q4 guidance .

Topic	Previous Mentions (Q1 2024)	Previous Mentions (Q2 2024)	Current Period (Q3 2024)	Trend
Asset-based revenue mix	Asset-based rev. 62% of total; strong AUM/A growth	Asset-based rev. 63%; continued strength	Asset-based rev. 65%; further mix shift	Positive, increasing mix
Subscription revenue	36% of revenue; steady	34% of revenue; modest growth	33% of revenue; steady	Stable to slight decline in mix
Data & Analytics (D&A)	Subscription/revenue softness vs prior year	D&A: goodwill impairment ($96.3M) and restructuring actions	D&A revenue $34.4M; continued softness	Stabilizing after impairment
Client conversions	$60.9B total conversions in Q1	$167.8B total conversions in Q2	$76.2B total conversions in Q3	Strong, but below Q2 peak
Guidance & transparency	Q2 guidance provided	Hosted Q2 call; guidance reaffirmed	No Q3 call, no Q4 guidance due to Bain transaction	Lower transparency near term

“Envestnet continues to be in its leading position because we are executing on what our clients need and we’re deepening our relationships with them.” — Jim Fox, Board Chair & Interim CEO (Q1 press release) .
“We look forward to the successful completion of our pending transaction with Bain Capital and the value it will deliver to our shareholders. We remain committed to maintaining our leading position…” — Jim Fox (Q2 press release) .

The company did not host a Q3 2024 earnings call and declined Q4 guidance due to the pending Bain Capital transaction .
Prior quarters featured standard discussion of asset-based mix, subscription trends, and operating expense control; however, detailed Q&A for Q3 is unavailable given the absence of a call .

Wall Street consensus (S&P Global) data was unavailable via our estimates tool for ENV; therefore, we cannot present formal “vs. consensus” comparisons for Q3. S&P Global consensus data unavailable.
Observationally, the company’s Adjusted EPS ($0.70) and revenue ($345.9M) reflect solid operational performance versus internal sequential trends; estimate revisions may focus on mix quality (asset-based recurring at 65%) and free cash flow strength .

Mix improvement toward asset-based recurring revenue (65% of total) is supporting EBITDA and operating leverage; watch sustainability amid market-sensitive AUM/A dynamics .
Free cash flow inflected strongly ($76.2M in Q3); combined with $193.4M cash and undrawn revolver, liquidity is solid despite high convertible debt balances ($892.5M) .
D&A softness persists, but Q2’s goodwill impairment reset provides cleaner go-forward comparability; monitor bookings and subscription trends for stabilization .
Transparency reduced near term: no Q3 call and no Q4 guidance due to Bain transaction; near-term trading likely remains event-driven pending deal progress .
Operating expenses require monitoring: G&A up 27% YoY in Q3; management’s ongoing efficiency initiatives and scale are key to margin trajectory .
Client conversions continue to be a growth vector ($76.2B in Q3), though below Q2’s unusually strong pace; sustained conversion activity bolsters subscription and asset-based revenue over time .
Balance sheet classification corrections (technical default cured; current classification of 2025 converts) were immaterial but worth flagging for covenant and maturity risk tracking .