Vestwell, the New York-based retirement technology firm, has crossed a significant milestone: it is now profitable and generating more than $200 million in annual recurring revenue. The company, which provides the digital infrastructure for workplace savings programs, says it now supports more than 750,000 employers and 2.55 million active savers, with $56 billion in assets under its platform. That works out to roughly $22,000 in assets per saver.
Founder and CEO Aaron Schumm told InvestmentNews that the firm's growth has accelerated dramatically since its 2016 launch. "We sell more in a day now than we used to sell in an entire year in the early days," he said. "We have plenty of cash; we're profitable now. We can continue to fund the business in a self-sustaining way."
Vestwell's client roster reads like a who's who of financial services: JPMorgan Chase, Morgan Stanley at Work, BlackRock, Franklin Templeton, and TIAA, as well as a long list of RIAs including Carson Group, Mariner, OneDigital, and Savvy Wealth. The firm also partners with payroll providers such as Paylocity, Toast, and QuickBooks to power 401(k) plans for small businesses.
The company has expanded well beyond traditional 401(k) plans, now offering workplace-linked accounts for education, disability, emergency savings, child savings, and student debt repayment. A growing segment is government-sponsored retirement programs: Vestwell powers 16 of the 17 state auto-IRA initiatives. As of July 31, 2026, those state programs had accumulated more than $3.27 billion in assets across 1.36 million funded accounts, according to Georgetown University's Center for Retirement Initiatives.
In February, Vestwell acquired Accrue 401k, adding 30,000 employers and 350,000 employee accounts. Accrue had been part of Guideline, which was bought by payroll platform Gusto. Schumm said the firm is selective about acquisitions—"We say no 95 percent of the time"—but expects to make more deals. "I'm sure we'll make another acquisition or two or three or five," he said.
The company's growth has been fueled by a $385 million Series E round in February, led by Blue Owl Capital and Sixth Street Growth, which valued Vestwell at $2 billion and brought total capital raised to $660 million. The firm now employs 547 people. Investors include Franklin Templeton, Point 72 Ventures, Neuberger Berman, Silver Lake Waterman, HarbourVest, Morgan Stanley, and Goldman Sachs.
Schumm, who previously co-founded advisor platform FolioDynamix, said his own frustrating experience setting up a 401(k) for his employees there inspired him to build Vestwell. "The underlying infrastructure was really flawed," he said. "It was 30, 40 years old." He saw a need to modernize how payroll deductions flow into tax-deferred accounts and how distributions are handled.
Looking ahead, Vestwell is investing in AI features, including a "true next best dollar engine" that will use data from more than 200 payroll integrations to suggest how individuals should allocate savings across emergency funds, education, and retirement. "We can start to help show people where those dollars should go," Schumm said.
The firm's investor base includes several alternative asset managers who could benefit from the Trump administration's push to expand private equity and other alternatives in 401(k) plans. Schumm said he sees demand for such products but cautioned that fees must come down. "The products themselves have to be constructed in a way that's more palatable for a defined contribution long-term retirement asset," he said. "The fees have to come down... because those will erode the upside."
As the retirement industry grapples with record asset levels and guaranteed income solutions, Vestwell's profitability and scale position it as a key player in the evolving workplace savings landscape.
