Envestnet (ENV) 10-Q 4 Aug 23 2023 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2023	Jul. 28, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-34835
Entity Registrant Name	Envestnet, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-1409613
Entity Address, Address Line One	1000 Chesterbrook Boulevard
Entity Address, Address Line Two	Suite 250
Entity Address, City or Town	Berwyn
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19312
City Area Code	312
Local Phone Number	827-2800
Title of 12(b) Security	Common Stock, par value $0.005 per share
Trading Symbol	ENV
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		54,534,181
Entity Central Index Key	0001337619
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 59,019	$ 162,173
Fees receivable, net	123,696	101,696
Prepaid expenses and other current assets	41,906	41,363
Total current assets	224,621	305,232
Property and equipment, net	66,668	62,443
Internally developed software, net	207,235	184,558
Intangible assets, net	361,335	379,995
Goodwill	998,436	998,414
Operating lease right-of-use assets, net	75,079	81,596
Other assets	120,531	99,927
Total assets	2,053,905	2,112,165
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	239,836	233,866
Operating lease liabilities	13,222	11,949
Deferred revenue	35,846	36,363
Current portion of debt	20,000	44,886
Total current liabilities	308,904	327,064
Debt, net of current portion	874,175	871,769
Operating lease liabilities, net of current portion	105,606	110,652
Deferred tax liabilities, net	15,815	16,196
Other liabilities	16,947	18,880
Total liabilities	1,321,447	1,344,561
Commitments and contingencies (note 19)
Stockholders' equity
Preferred stock, par value $0.005, 50,000,000 shares authorized; no shares issued and outstanding as of June 30, 2023 and December 31, 2022	0	0
Common stock, par value $0.005, 500,000,000 shares authorized; 70,752,773 and 70,025,733 shares issued as of June 30, 2023 and December 31, 2022, respectively; 54,511,283 and 54,013,826 shares outstanding as of June 30, 2023 and December 31, 2022, respectively	353	350
Treasury stock at cost, 16,241,490 and 16,011,907 shares as of June 30, 2023 and December 31, 2022, respectively	(267,325)	(253,551)
Additional paid-in capital	1,175,464	1,135,284
Accumulated deficit	(181,571)	(118,927)
Accumulated other comprehensive loss	(4,408)	(8,589)
Total stockholders’ equity, attributable to Envestnet, Inc.	722,513	754,567
Non-controlling interest	9,945	13,037
Total equity	732,458	767,604
Total liabilities and equity	$ 2,053,905	$ 2,112,165

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.005	$ 0.005
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.005	$ 0.005
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	70,752,773	70,025,733
Common stock, shares outstanding (in shares)	54,511,283	54,013,826
Treasury stock (in shares)	16,241,490	16,011,907

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue:
Total revenue	$ 312,434	$ 318,852	$ 611,141	$ 640,215
Operating expenses:
Direct expense	123,497	126,482	232,486	251,764
Employee compensation	117,097	125,767	231,312	252,616
General and administrative	53,346	66,144	106,965	110,479
Depreciation and amortization	33,806	32,182	66,747	63,800
Total operating expenses	327,746	350,575	637,510	678,659
Loss from operations	(15,312)	(31,723)	(26,369)	(38,444)
Other (expense) income, net	(7,402)	1,622	(15,337)	(4,345)
Loss before income tax provision (benefit)	(22,714)	(30,101)	(41,706)	(42,789)
Income tax provision (benefit)	418	(5,833)	24,187	(3,813)
Net loss	(23,132)	(24,268)	(65,893)	(38,976)
Add: Net loss attributable to non-controlling interest	1,716	983	3,249	1,832
Net loss attributable to Envestnet, Inc.	$ (21,416)	$ (23,285)	$ (62,644)	$ (37,144)
Net loss attributable to Envestnet, Inc. per share:
Basic (in dollars per share)	$ (0.39)	$ (0.42)	$ (1.15)	$ (0.67)
Diluted (in dollars per share)	$ (0.39)	$ (0.42)	$ (1.15)	$ (0.67)
Weighted average common shares outstanding:
Basic (in shares)	54,439,733	55,203,120	54,289,443	55,054,272
Diluted (in shares)	54,439,733	55,203,120	54,289,443	55,054,272
Total recurring revenue
Revenue:
Total revenue	$ 300,721	$ 310,092	$ 594,732	$ 627,543
Asset-based
Revenue:
Total revenue	185,762	191,972	362,694	394,689
Operating expenses:
Direct expense	108,532	112,301	211,155	229,729
Subscription-based
Revenue:
Total revenue	114,959	118,120	232,038	232,854
Operating expenses:
Direct expense	6,933	7,241	13,295	15,052
Professional services and other revenue
Revenue:
Total revenue	11,713	8,760	16,409	12,672
Operating expenses:
Direct expense	$ 8,032	$ 6,940	$ 8,036	$ 6,983

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net loss attributable to Envestnet, Inc.	$ (21,416)	$ (23,285)	$ (62,644)	$ (37,144)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(96)	(3,093)	4,181	(4,571)
Total other comprehensive income (loss), net of tax	(96)	(3,093)	4,181	(4,571)
Comprehensive loss attributable to Envestnet, Inc.	$ (21,512)	$ (26,378)	$ (58,463)	$ (41,715)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Non-controlling Interest
Beginning balance (in shares) at Dec. 31, 2021		68,879,152
Balance, at period start at Dec. 31, 2021	$ 959,542	$ 344	$ (134,996)	$ 1,131,628	$ (1,899)	$ (37,988)	$ 2,453
Treasury stock, beginning balance (in shares) at Dec. 31, 2021			(14,086,064)
Increase (decrease) in shareholders' equity
Net loss	(14,708)					(13,859)	(849)
Other comprehensive income (loss), net of tax	(1,478)				(1,478)
Stock-based compensation expense	21,690			21,690
Issuance of common stock, vesting of RSUs and PSUs (in shares)		514,319
Issuance of common stock, vesting of RSUs and PSUs	3	$ 3
Net cash paid related to tax withholding for stock-based compensation/Shares withheld to satisfy tax withholdings (in shares)			(170,992)
Net cash paid related to tax withholding for stock-based compensation	(12,570)		$ (12,570)
Proceeds from the exercise of stock options (in shares)		38,681
Proceeds from the exercise of stock options	658			658
Other	18			(84)			102
Ending balance (in shares) at Mar. 31, 2022		69,432,152
Treasury stock, ending balance (in shares) at Mar. 31, 2022			(14,257,056)
Balance, at period end at Mar. 31, 2022	953,155	$ 347	$ (147,566)	1,153,892	(3,377)	(51,847)	1,706
Beginning balance (in shares) at Dec. 31, 2021		68,879,152
Balance, at period start at Dec. 31, 2021	959,542	$ 344	$ (134,996)	1,131,628	(1,899)	(37,988)	2,453
Treasury stock, beginning balance (in shares) at Dec. 31, 2021			(14,086,064)
Increase (decrease) in shareholders' equity
Net loss	(38,976)
Other comprehensive income (loss), net of tax	(4,571)
Ending balance (in shares) at Jun. 30, 2022		69,666,983
Treasury stock, ending balance (in shares) at Jun. 30, 2022			(14,487,582)
Balance, at period end at Jun. 30, 2022	933,992	$ 348	$ (162,344)	1,176,763	(6,470)	(75,132)	827
Beginning balance (in shares) at Mar. 31, 2022		69,432,152
Balance, at period start at Mar. 31, 2022	953,155	$ 347	$ (147,566)	1,153,892	(3,377)	(51,847)	1,706
Treasury stock, beginning balance (in shares) at Mar. 31, 2022			(14,257,056)
Increase (decrease) in shareholders' equity
Net loss	(24,268)					(23,285)	(983)
Other comprehensive income (loss), net of tax	(3,093)				(3,093)
Stock-based compensation expense	22,876			22,876
Issuance of common stock, vesting of RSUs and PSUs (in shares)		232,328
Issuance of common stock, vesting of RSUs and PSUs	1	$ 1
Net cash paid related to tax withholding for stock-based compensation/Shares withheld to satisfy tax withholdings (in shares)			(78,506)
Net cash paid related to tax withholding for stock-based compensation	(5,543)		$ (5,543)
Proceeds from the exercise of stock options (in shares)		2,503
Proceeds from the exercise of stock options	84			84
Share repurchases (in shares)			(152,020)
Share repurchases	(9,235)		$ (9,235)
Other	15			(89)			104
Ending balance (in shares) at Jun. 30, 2022		69,666,983
Treasury stock, ending balance (in shares) at Jun. 30, 2022			(14,487,582)
Balance, at period end at Jun. 30, 2022	$ 933,992	$ 348	$ (162,344)	1,176,763	(6,470)	(75,132)	827
Beginning balance (in shares) at Dec. 31, 2022	70,025,733	70,025,733
Balance, at period start at Dec. 31, 2022	$ 767,604	$ 350	$ (253,551)	1,135,284	(8,589)	(118,927)	13,037
Treasury stock, beginning balance (in shares) at Dec. 31, 2022	(16,011,907)		(16,011,907)
Increase (decrease) in shareholders' equity
Net loss	$ (42,761)					(41,228)	(1,533)
Other comprehensive income (loss), net of tax	4,277				4,277
Stock-based compensation expense	19,453			19,345			108
Issuance of common stock, vesting of RSUs and PSUs (in shares)		524,316
Issuance of common stock, vesting of RSUs and PSUs	2	$ 2
Net cash paid related to tax withholding for stock-based compensation/Shares withheld to satisfy tax withholdings (in shares)			(173,612)
Net cash paid related to tax withholding for stock-based compensation	(10,732)		$ (10,732)
Proceeds from the exercise of stock options (in shares)		37,454
Proceeds from the exercise of stock options	367			367
Purchase of non-controlling units from third-party shareholders	(1,008)			(984)			(24)
Other	(22)						(22)
Ending balance (in shares) at Mar. 31, 2023		70,587,503
Treasury stock, ending balance (in shares) at Mar. 31, 2023			(16,185,519)
Balance, at period end at Mar. 31, 2023	$ 737,180	$ 352	$ (264,283)	1,154,012	(4,312)	(160,155)	11,566
Beginning balance (in shares) at Dec. 31, 2022	70,025,733	70,025,733
Balance, at period start at Dec. 31, 2022	$ 767,604	$ 350	$ (253,551)	1,135,284	(8,589)	(118,927)	13,037
Treasury stock, beginning balance (in shares) at Dec. 31, 2022	(16,011,907)		(16,011,907)
Increase (decrease) in shareholders' equity
Net loss	$ (65,893)
Other comprehensive income (loss), net of tax	$ 4,181
Proceeds from the exercise of stock options (in shares)	39,954
Ending balance (in shares) at Jun. 30, 2023	70,752,773	70,752,773
Treasury stock, ending balance (in shares) at Jun. 30, 2023	(16,241,490)		(16,241,490)
Balance, at period end at Jun. 30, 2023	$ 732,458	$ 353	$ (267,325)	1,175,464	(4,408)	(181,571)	9,945
Beginning balance (in shares) at Mar. 31, 2023		70,587,503
Balance, at period start at Mar. 31, 2023	737,180	$ 352	$ (264,283)	1,154,012	(4,312)	(160,155)	11,566
Treasury stock, beginning balance (in shares) at Mar. 31, 2023			(16,185,519)
Increase (decrease) in shareholders' equity
Net loss	(23,132)					(21,416)	(1,716)
Other comprehensive income (loss), net of tax	(96)				(96)
Stock-based compensation expense	21,390			21,347			43
Issuance of common stock, vesting of RSUs and PSUs (in shares)		162,770
Issuance of common stock, vesting of RSUs and PSUs	1	$ 1
Net cash paid related to tax withholding for stock-based compensation/Shares withheld to satisfy tax withholdings (in shares)			(55,971)
Net cash paid related to tax withholding for stock-based compensation	(3,042)		$ (3,042)
Proceeds from the exercise of stock options (in shares)		2,500
Proceeds from the exercise of stock options	105			105			0
Other	$ 52			0			52
Ending balance (in shares) at Jun. 30, 2023	70,752,773	70,752,773
Treasury stock, ending balance (in shares) at Jun. 30, 2023	(16,241,490)		(16,241,490)
Balance, at period end at Jun. 30, 2023	$ 732,458	$ 353	$ (267,325)	$ 1,175,464	$ (4,408)	$ (181,571)	$ 9,945

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net loss	$ (65,893)	$ (38,976)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	66,747	63,800
Deferred income taxes	(522)	(8,222)
Non-cash compensation expense	40,843	45,318
Non-cash interest expense	2,251	3,474
Loss allocations from equity method investments	5,872	2,945
Dilution gain on equity method investee share issuance	(546)	(6,934)
Lease related impairments	2,483	12,961
Other	304	(448)
Changes in operating assets and liabilities:
Fees receivable, net	(22,357)	13,694
Prepaid expenses and other assets	(6,762)	(6,359)
Accounts payable, accrued expenses and other liabilities	17,700	(32,888)
Deferred revenue	(852)	4,277
Net cash provided by operating activities	39,268	52,642
Cash flows from investing activities:
Purchases of property and equipment	(16,735)	(9,141)
Capitalization of internally developed software	(46,801)	(43,045)
Acquisition of proprietary technology	(12,000)	(19,000)
Issuance of loan receivable to private company	(20,000)	0
Issuance of note receivable to equity method investees	0	(4,350)
Other	319	0
Net cash used in investing activities	(96,667)	(98,008)
Cash flows from financing activities:
Proceeds from borrowings on Revolving Credit Facility	40,000	0
Payments related to Revolving Credit Facility	(20,000)	(1,872)
Payments related to Convertible Notes	(45,000)	0
Payments on finance lease obligations	(792)	(14,517)
Proceeds from exercise of stock options	472	742
Payments related to tax withholdings for stock-based compensation	(13,774)	(18,113)
Payments related to share repurchases	(9,289)	(9,235)
Purchase of non-controlling units from third-party shareholders	(1,008)	0
Payments of contingent consideration	0	(750)
Other	3	4
Net cash used in financing activities	(49,388)	(43,741)
Effect of exchange rate on changes on cash, cash equivalents and restricted cash	3,633	(2,057)
Net change in cash, cash equivalents and restricted cash	(103,154)	(91,164)
Cash, cash equivalents and restricted cash, beginning of period	162,173	429,428
Cash, cash equivalents and restricted cash, end of period	59,019	338,264
Supplemental disclosures of cash flow information
Net cash paid for income taxes	3,223	5,460
Cash paid for interest	10,600	5,591
Supplemental disclosure of non-cash activities
Conversion of equity method investee loan to shares	4,129	2,623
Right-of-use assets obtained in exchange for lease liabilities, net	380	9,604
Property and equipment acquired through finance lease	792	14,517
Purchase of property and equipment included in accounts payable, accrued expenses and other liabilities	2,029	2,308
Internally developed software costs included in accounts payable, accrued expenses and other liabilities	0	628
Membership interest liabilities included in other liabilities	0	752
Acquistions
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired	0	(14,472)
Private Companies
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired	$ (1,450)	$ (8,000)

Organization and Description of

Organization and Description of Business	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	Organization and Description of Business Envestnet, Inc. (“Envestnet”) through its subsidiaries (collectively, the “Company”) is transforming the way financial advice and insight are delivered. Its mission is to empower financial advisors and service providers with innovative technology, solutions and intelligence. Envestnet has been a leader in helping transform wealth management, working towards its goal of expanding a holistic financial wellness ecosystem so that our clients can deliver an intelligent financial life to their clients. Envestnet is organized around two primary, complementary business segments. Financial information about each business segment is contained in “Note 18—Segment Information” to the condensed consolidated financial statements and is described in detail within the Company's Annual Report on Form 10-K. For a summary of commonly used industry terms and abbreviations used in this quarterly report on Form 10-Q, see the Glossary of Terms.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company as of June 30, 2023 and for the three and six months ended June 30, 2023 and 2022 have not been audited by an independent registered public accounting firm. These unaudited condensed consolidated financial statements have been prepared on the same basis as our audited consolidated financial statements for the year ended December 31, 2022 and reflect all normal recurring adjustments which are, in the opinion of management, necessary to present fairly the Company’s financial position as of June 30, 2023 and results of operations, equity, comprehensive income (loss) and cash flows for the periods presented herein. The unaudited condensed consolidated financial statements include the accounts of the Company. All significant intercompany transactions and balances have been eliminated in consolidation. Accounts for the Envestnet Wealth Solutions segment that are denominated in a non-U.S. currency have been re-measured using the U.S. dollar as the functional currency. Certain accounts within the Envestnet Data & Analytics segment are recorded and measured in foreign currencies. The assets and liabilities for those subsidiaries with a functional currency other than the U.S. dollar are translated at exchange rates in effect at the balance sheet date, and revenue and expenses are translated at average exchange rates. Differences arising from these foreign currency translations are recorded in the unaudited condensed consolidated balance sheets as accumulated other comprehensive income (loss) within stockholders' equity. The Company is also subject to gains and losses from foreign currency denominated transactions and the remeasurement of foreign currency denominated balance sheet accounts, both of which are included in other income (expense), net in the condensed consolidated statements of operations. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results of operations to be expected for other interim periods or for the full fiscal year. The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. References to GAAP in these notes are to the FASB ASC and ASUs. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 28, 2023. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from these estimates under different assumptions or conditions. Reclassifications Certain amounts in the condensed consolidated balance sheets as of December 31, 2022 and the condensed consolidated statements of cash flows for the six months ended June 30, 2022 have been reclassified to conform to the current period presentation. These reclassifications did not change the previously reported total assets, total liabilities and equity, or net change in cash and cash equivalents and did not affect the condensed consolidated statements of operations, condensed consolidated statements of comprehensive loss or condensed consolidated statements of stockholders' equity. Cash, Cash Equivalents and Restricted Cash The following table reconciles cash, cash equivalents and restricted cash from the condensed consolidated balance sheets to amounts reported in the condensed consolidated statements of cash flows: June 30, 2023 2022 (in thousands) Cash and cash equivalents $ 59,019 $ 338,115 Restricted cash included in prepaid expenses and other current assets — 149 Total cash, cash equivalents and restricted cash $ 59,019 $ 338,264 Related Party Transactions The Company has an approximate 3.8% membership interest in a private services company that it accounts for using the equity method of accounting and is considered to be a related party. Revenue from the private services company totaled $3.3 million and $4.3 million in the three months ended June 30, 2023 and 2022, respectively. Revenue from the private services company totaled $6.9 million and $9.0 million in the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023 and December 31, 2022, the Company recorded a net receivable from the private services company of $1.9 million and $2.0 million, respectively. Recent Accounting Pronouncements Not Yet Adopted In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements.” This update amends ASC 842 and the accounting for leasehold improvements associated with common control leases. This standard is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption of the standard is permitted. The Company is analyzing the impact of the adoption, but does not expect it to have a material impact on the consolidated financial statements.

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions Acquisition of Redi2 Technologies On July 1, 2022, the Company completed the acquisition of all of the issued and outstanding shares of Redi2 Technologies ("Redi2"). Redi2 provides revenue management and hosted fee-billing solutions. Its platform enables fee calculation, invoice creation, payouts and accounting, and billing compliance. Redi2 has been integrated into the Envestnet Wealth Solutions segment. In connection with the Redi2 acquisition, the Company paid estimated consideration as follows: Preliminary Estimate Measurement Period Adjustments Revised Estimate (in thousands) Cash consideration, net $ 69,406 $ — $ 69,406 Estimated working capital adjustment (1,465) 932 (533) Total $ 67,941 $ 932 $ 68,873 The Company funded the Redi2 acquisition with available cash resources. In addition, certain executives may earn up to $20.0 million in performance bonuses based upon the achievement of certain target financial and non-financial metrics. These performance bonuses will be recognized as compensation and benefits expense in the condensed consolidated statements of operations. The Company recognized $1.1 million and $1.5 million related to these performance bonuses during the three and six months ended June 30, 2023, respectively. The following table summarizes the estimated fair values of the assets acquired at the date of acquisition: Preliminary Estimate Measurement Period Adjustments Revised Estimate (in thousands) Total current assets $ 1,985 $ — $ 1,985 Other non-current assets 3,349 (28) 3,321 Identifiable intangible assets 26,500 — 26,500 Goodwill 44,236 2,231 46,467 Total assets acquired 76,070 2,203 78,273 Accounts payable, accrued expenses and other current liabilities (1,157) (1,271) (2,428) Operating lease liabilities (2,201) — (2,201) Deferred revenue (4,771) — (4,771) Total liabilities assumed (8,129) (1,271) (9,400) Total net assets acquired, net of cash received $ 67,941 $ 932 $ 68,873 The goodwill arising from the acquisition represents the expected benefits of the transaction, primarily related to the enhancement of the Company's existing technologies and increase in future revenue as a result of potential cross selling opportunities. Estimated goodwill of $40.7 million is deductible for income tax purposes. A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows: Preliminary Estimate Estimated Useful Life Amortization Method (in thousands) (in years) Customer lists $ 14,000 14 - 16 Accelerated Proprietary technologies 9,500 6 Straight-line Trade names 3,000 6 - 7 Straight-line Total intangible assets acquired $ 26,500 During the six months ended June 30, 2023 the Company completed the acquisition accounting related to the Redi2 acquisition, finalizing the valuation of tangible assets acquired, liabilities assumed, identifiable intangible assets and goodwill balances. No measurement period adjustments were made during the six months ended June 30, 2023. The results of Redi2 were included in the condensed consolidated statements of operations beginning July 1, 2022 and are not considered material to the Company’s results of operations. For the three and six months ended June 30, 2023, the Company’s acquisition related costs were not material, and are included in general and administrative expenses. The Company may incur additional acquisition related costs over the remainder of 2023.

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	6 Months Ended
	Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: June 30, December 31, 2023 2022 (in thousands) Prepaid technology $ 15,387 $ 16,649 Prepaid insurance 5,473 2,881 Non-income tax receivable 5,383 5,488 Other 15,663 16,345 Total prepaid expenses and other current assets $ 41,906 $ 41,363

Internally Developed Software,

Internally Developed Software, Net	6 Months Ended
	Jun. 30, 2023
Research and Development [Abstract]
Internally Developed Software, Net	Internally Developed Software, Net Internally developed software, net consisted of the following: June 30, December 31, Estimated Useful Life 2023 2022 (in thousands) Internally developed software 5 years $ 359,365 $ 313,200 Less: accumulated amortization (152,130) (128,642) Internally developed software, net $ 207,235 $ 184,558

Geographical Information

Geographical Information	6 Months Ended
	Jun. 30, 2023
Segments, Geographical Areas [Abstract]
Geographical Information	Geographical Information The following table sets forth certain long-lived assets including property and equipment, net and internally developed software, net by geographic area: June 30, December 31, 2023 2022 (in thousands) United States $ 271,230 $ 245,817 India 2,665 1,093 Other 8 91 Total long-lived assets, net $ 273,903 $ 247,001 See “Note 14—Revenue and Direct Expense” for detail of revenue by geographic area.

Intangible Assets, Net

Intangible Assets, Net	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets, Net	Intangible Assets, Net Intangible assets, net consisted of the following: June 30, 2023 December 31, 2022 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount (in thousands) Customer lists $ 604,080 $ (306,457) $ 297,623 $ 604,080 $ (285,288) $ 318,792 Proprietary technologies 109,057 (51,549) 57,508 113,224 (59,401) 53,823 Trade names 15,700 (9,496) 6,204 15,700 (8,320) 7,380 Total intangible assets $ 728,837 $ (367,502) $ 361,335 $ 733,004 $ (353,009) $ 379,995 On April 1, 2022, the Company entered into a purchase agreement with a privately held company to acquire technology solutions being developed by this privately held company for a purchase price of $9.0 million, including an advance of $4.0 million. The purchase agreement was amended in January 2023 to include additional functionality and features for additional consideration of $5.0 million. The Company closed the transaction and paid the remaining $10.0 million during the three months ended March 31, 2023. This proprietary technology asset has been integrated into the Envestnet Data & Analytics segment and is being amortized over an estimated useful life of five years. On May 19, 2023, the Company entered into a purchase agreement with this same privately held company to acquire technology solutions being developed by this privately held company for a purchase price of $7.0 million, including an advance of $2.0 million. In addition, the prior purchase agreements that were entered into with this privately held company in June 2021 and April 2022 were amended in May 2023 to remove the earn-out payment provisions. During the six months ended June 30, 2023, the Company retired fully amortized proprietary technologies with a historical cost of $17.5 million. Future amortization expense of the Company's intangible assets as of June 30, 2023, is expected to be as follows (in thousands): Remainder of 2023 $ 30,136 2024 55,968 2025 52,573 2026 45,048 2027 36,283 Thereafter 141,327 Total $ 361,335

Depreciation and Amortization E

Depreciation and Amortization Expense	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation and Amortization Expense	Depreciation and Amortization Expense Depreciation and amortization expense consisted of the following: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) Intangible asset amortization $ 15,720 $ 17,645 $ 32,660 $ 35,165 Internally developed software amortization 12,398 9,087 23,488 17,581 Property and equipment depreciation 5,688 5,450 10,599 11,054 Total depreciation and amortization $ 33,806 $ 32,182 $ 66,747 $ 63,800

Goodwill

Goodwill	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	Goodwill Changes in the carrying amount of goodwill by reportable segment were as follows: Envestnet Wealth Solutions Envestnet Data & Analytics Total (in thousands) Balance as of December 31, 2022 $ 679,739 $ 318,675 $ 998,414 Foreign currency translation — 22 22 Balance as of June 30, 2023 $ 679,739 $ 318,697 $ 998,436

Other Assets

Other Assets	6 Months Ended
	Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets	Other Assets On January 31, 2023, the Company entered into a Convertible Promissory Note with a customer of the Company's business, a privately held company, whereby the Company was issued a convertible promissory note with a principal amount of $20.0 million and a stated interest rate of 8.0% per annum. The Convertible Promissory Note has a maturity date of January 31, 2026 and is convertible into common stock or preferred stock of the privately held company upon qualified financing events or corporate transactions. In connection with the Convertible Promissory Note, the Company concurrently entered into a call option agreement with the privately held company, which provides the Company an option to acquire the privately held company at a predetermined price as of the earlier of July 2024 or upon satisfaction of certain financial metrics. Subsequent to June 30, 2023, the financial metrics were met, however, the Company did not exercise the call option.

Accounts Payable, Accrued Expen

Accounts Payable, Accrued Expenses and Other Current Liabilities	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Accounts Payable, Accrued Expenses and Other Current Liabilities	Accounts Payable, Accrued Expenses and Other Current Liabilities Accounts payable, accrued expenses and other liabilities consisted of the following: June 30, December 31, 2023 2022 (in thousands) Accrued investment manager fees $ 105,913 $ 99,851 Accrued compensation and related taxes 57,771 77,939 Accounts payable 27,853 11,271 Accrued professional services 17,622 10,762 Income tax payable 13,102 260 Accrued technology 8,331 6,393 Accrued treasury stock purchases — 9,289 Other accrued expenses 9,244 18,101 Total accounts payable, accrued expenses and other current liabilities $ 239,836 $ 233,866

Debt

Debt	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Debt	Debt The following tables set forth the carrying value and estimated fair value of the Company's debt obligations as of June 30, 2023 and December 31, 2022: June 30, 2023 Issuance Amount Unamortized Issuance Costs Carrying Value Fair Value (Level II) (in thousands) Revolving Credit Facility $ 20,000 $ — $ 20,000 $ 20,000 Convertible Notes due 2025 317,500 (3,870) 313,630 292,576 Convertible Notes due 2027 575,000 (14,455) 560,545 607,499 Total debt $ 912,500 $ (18,325) $ 894,175 $ 920,075 December 31, 2022 Issuance Amount Unamortized Issuance Costs Carrying Value Fair Value (Level II) (in thousands) Revolving Credit Facility $ — $ — $ — $ — Convertible Notes due 2023 45,000 (114) 44,886 46,058 Convertible Notes due 2025 317,500 (4,765) 312,735 293,688 Convertible Notes due 2027 575,000 (15,966) 559,034 606,119 Total debt $ 937,500 $ (20,845) $ 916,655 $ 945,865 Revolving Credit Facility The Revolving Credit Facility contains customary conditions, representations and warranties, affirmative and negative covenants, mandatory prepayment provisions and events of default. The covenants include certain financial covenants requiring the Company to maintain compliance with a maximum total leverage ratio and a minimum interest coverage ratio. The Company was in compliance with these financial covenants as of June 30, 2023. As of June 30, 2023, the Company had $20.0 million of borrowings under the Revolving Credit Facility at an effective interest rate of 7.5%, with a remaining available balance on the Revolving Credit Facility of $480.0 million. On July 19, 2023, the $20.0 million outstanding balance under the Revolving Credit Facility was repaid and the remaining available balance on the Revolving Credit Facility was $500.0 million. As of June 30, 2023 and December 31, 2022, debt issuance costs related to the Revolving Credit Facility included in prepaid expense and other current assets in the condensed consolidated balance sheets was $0.7 million and $0.7 million, respectively and included in other assets in the condensed consolidated balance sheets was $1.8 million and $2.2 million, respectively. Convertible Notes due 2023 The Convertible Notes due 2023 matured on June 1, 2023. Upon maturity, the Company settled the remaining aggregate principal amount on the Convertible Notes due 2023 for $45.0 million. The Convertible Notes due 2023 were paid using a combination of cash on hand and borrowings under the Company's Revolving Credit Facility. No shares of the Company's common stock were issued upon settlement of the Convertible Notes due 2023. Interest Expense Interest expense was comprised of the following and is included in other expense, net in the condensed consolidated statements of operations: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) Convertible Notes interest $ 4,543 $ 2,480 $ 9,108 $ 4,960 Amortization of debt discount and issuance costs 1,427 1,415 2,869 3,474 Undrawn and other fees 311 317 624 631 Revolving Credit Facility interest 250 — 250 — Total interest expense $ 6,531 $ 4,212 $ 12,851 $ 9,065 The effective interest rate of the Notes was equal to the stated interest rate plus the amortization of the debt issuance costs and is set forth below: June 30, June 30, 2023 2022 Convertible Notes due 2023 N/A 2.4 % Convertible Notes due 2025 1.3 % 1.3 % Convertible Notes due 2027 3.2 % N/A

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022, based on the three-tier fair value hierarchy, as described in detail within the Company's Annual Report on Form 10-K: June 30, 2023 Fair Value Level I Level II Level III (in thousands) Assets: Money market funds $ 23,764 $ 23,764 $ — $ — Assets to fund deferred compensation liability 10,635 — — 10,635 Total assets $ 34,399 $ 23,764 $ — $ 10,635 Liabilities: Deferred compensation liability 8,864 8,864 — — Total liabilities $ 8,864 $ 8,864 $ — $ — December 31, 2022 Fair Value Level I Level II Level III (in thousands) Assets: Money market funds $ 2,628 $ 2,628 $ — $ — Assets to fund deferred compensation liability 10,074 — — 10,074 Total assets $ 12,702 $ 2,628 $ — $ 10,074 Liabilities: Deferred compensation liability 8,088 8,088 — — Total liabilities $ 8,088 $ 8,088 $ — $ — The Company assesses the categorization of assets and liabilities by level at each measurement date, and transfers between levels are recognized on the actual date of the event or when changes in circumstances caused the transfer, in accordance with the Company’s accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. There were no transfers between Levels I, II and III during the six months ended June 30, 2023 and 2022. Fair Value of Assets Used to Fund the Deferred Compensation Liability The table below presents a reconciliation of the assets used to fund the Company's deferred compensation liability, which is measured at fair value on a recurring basis using significant unobservable inputs (Level III) for the period from December 31, 2022 to June 30, 2023: Fair Value of Assets Used to Fund Deferred Compensation Liability (in thousands) Balance as of December 31, 2022 $ 10,074 Fair value adjustments and fees 561 Balance as of June 30, 2023 $ 10,635 The fair market value of the assets used to fund the Company 's deferred compensation liability is based upon the cash surrender value of the Company 's life insurance premiums. The value of the assets used to fund the Company's deferred compensation liability, which are included in other assets in the condensed consolidated balance sheets, increased due to net gains on the underlying investment vehicles. These gains are recognized in the Company's earnings and included in general and administrative expenses Fair Value of Debt Agreements The Company considered its Convertible Notes to be Level II liabilities as of June 30, 2023 and December 31, 2022, and used a market approach to calculate their respective fair values. The estimated fair value for each convertible note was determined based on estimated or actual bids and offers in an over-the-counter market on June 30, 2023 and December 31, 2022, respectively (See “Note 12—Debt”). Fair Value of Other Financial Assets and Liabilities The Company considered the recorded value of its other financial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable and accounts payable, to approximate the fair value of the respective assets and liabilities as of June 30, 2023 and December 31, 2022, based upon the short-term nature of these assets and liabilities.

Revenue and Direct Expense

Revenue and Direct Expense	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Revenue and Direct Expense	Revenue and Direct Expense Disaggregation of Revenue The following table presents the Company’s revenue by segment disaggregated by major source: Three Months Ended June 30, 2023 2022 Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated (in thousands) Revenue: Asset-based $ 185,762 $ — $ 185,762 $ 191,972 $ — $ 191,972 Subscription-based 75,509 39,450 114,959 73,568 44,552 118,120 Total recurring revenue 261,271 39,450 300,721 265,540 44,552 310,092 Professional services and other revenue 10,310 1,403 11,713 6,460 2,300 8,760 Total revenue $ 271,581 $ 40,853 $ 312,434 $ 272,000 $ 46,852 $ 318,852 Six Months Ended June 30, 2023 2022 Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated (in thousands) Revenue: Asset-based $ 362,694 $ — $ 362,694 $ 394,689 $ — $ 394,689 Subscription-based 151,994 80,044 232,038 142,105 90,749 232,854 Total recurring revenue 514,688 80,044 594,732 536,794 90,749 627,543 Professional services and other revenue 13,553 2,856 16,409 8,774 3,898 12,672 Total revenue $ 528,241 $ 82,900 $ 611,141 $ 545,568 $ 94,647 $ 640,215 The following table presents the Company’s revenue disaggregated by geography, based on the billing address of the customer: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) United States $ 306,946 $ 314,271 $ 600,160 $ 631,000 International 5,488 4,581 10,981 9,215 Total revenue $ 312,434 $ 318,852 $ 611,141 $ 640,215 Remaining Performance Obligations As of June 30, 2023, the Company's estimated revenue expected to be recognized in the future related to performance obligations associated with existing customer contracts that are partially or wholly unsatisfied is approximately $531.0 million. We expect to recognize approximately 24% of this revenue during the remainder of 2023, approximately 55% throughout 2024 and 2025, with the balance recognized thereafter. These remaining performance obligations are not indicative of revenue for future periods. Contract Balances Total deferred revenue as of June 30, 2023 decreased by $0.9 million from December 31, 2022, primarily the result of timing of cash receipts and revenue recognition. The majority of the Company's deferred revenue will be recognized over the course of the next twelve months. The amount of revenue recognized for the three months ended June 30, 2023 and 2022 that was included in the opening deferred revenue balance was $11.5 million and $10.2 million, respectively. The amount of revenue recognized for the six months ended June 30, 2023 and 2022,that was included in the opening deferred revenue balance was $28.2 million and $26.1 million, respectively. The majority of this revenue consists of subscription-based services and professional services arrangements. The amount of revenue recognized from performance obligations satisfied in prior periods was not material. Deferred Sales Incentive Compensation Deferred sales incentive compensation was $10.9 million and $11.0 million as of June 30, 2023 and December 31, 2022, respectively. Amortization expense for the deferred sales incentive compensation was $1.2 million and $1.1 million for the three months ended June 30, 2023 and 2022, respectively. Amortization expense for the deferred sales incentive compensation was $2.3 million and $2.2 million for the six months ended June 30, 2023 and 2022, respectively. Deferred sales incentive compensation is included in other assets in the condensed consolidated balance sheets and amortization expense is included in employee compensation expense in the condensed consolidated statements of operations. No significant impairment loss for capitalized costs was recorded during the six months ended June 30, 2023 and 2022. Direct Expense The following table summarizes direct expense by revenue category: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) Asset-based $ 108,532 $ 112,301 $ 211,155 $ 229,729 Subscription-based 6,933 7,241 13,295 15,052 Professional services and other 8,032 6,940 8,036 6,983 Total direct expense $ 123,497 $ 126,482 $ 232,486 $ 251,764

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company has stock options, RSUs and PSUs outstanding under the 2010 Plan and the 2019 Equity Plan. As of June 30, 2023, the maximum number of common shares available for future issuance under the Company's plans is 1,626,985. Stock-based compensation expense under the Company’s plans was as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) Stock-based compensation expense $ 21,390 $ 22,876 $ 40,843 $ 44,566 Tax effect on stock-based compensation expense (5,454) (5,833) (10,415) (11,364) Net effect on income $ 15,936 $ 17,043 $ 30,428 $ 33,202 The tax effect on stock-based compensation expense above was calculated using a blended statutory rate of 25.5% for each of the three and six months ended June 30, 2023 and 2022. Stock Options The following table summarizes option activity under the Company’s plans: Weighted- Weighted-Average Average Remaining Aggregate Options Exercise Price Contractual Life Intrinsic Value (in years) (in thousands) Outstanding as of December 31, 2022 277,535 $ 40.07 2.2 $ 6,005 Exercised (39,954) $ 17.00 Forfeited (25) $ 74.83 Outstanding as of June 30, 2023 237,556 $ 43.95 1.9 $ 3,661 Options exercisable as of June 30, 2023 237,349 $ 43.93 1.8 $ 3,661 As of June 30, 2023, there was an immaterial amount of unrecognized stock-based compensation expense related to stock options, which the Company expects to recognize over a weighted-average period of 0.1 years. Restricted Stock Units and Performance Stock Units The following table summarizes RSU and PSU activity under the Company’s plans: RSUs PSUs Number of Weighted- Number of Weighted- Non-vested as of December 31, 2022 1,681,976 $ 72.69 259,049 $ 74.83 Granted 1,094,308 $ 61.12 40,010 $ 69.47 Vested (665,092) $ 73.75 (21,994) $ 76.28 Forfeited (132,017) $ 77.29 (50,240) $ 77.59 Non-vested as of June 30, 2023 1,979,175 $ 65.63 226,825 $ 73.14 As of June 30, 2023, there was $108.6 million of unrecognized stock-based compensation expense related to RSUs, which the Company expects to recognize over a weighted-average period of 2.0 years. As of June 30, 2023, there was $6.2 million of unrecognized stock-based compensation expense related to PSUs, which the Company expects to recognize over a weighted-average period of 1.2 years.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The following table includes the Company’s loss before income tax provision (benefit), income tax provision (benefit) and effective tax rate: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands, except for effective tax rate) Loss before income tax provision (benefit) $ (22,714) $ (30,101) $ (41,706) $ (42,789) Income tax provision (benefit) $ 418 $ (5,833) $ 24,187 $ (3,813) Effective tax rate (1.8) % 19.4 % (58.0) % 8.9 % Under ASC 740-270-25, the Company is required to report income tax expense by applying a projected AETR to ordinary pre-tax book income for the interim period. The tax impact of discrete items is accounted for separately in the period in which they occur. The ETR for the quarter is the result of the projected AETR applied to actual pre-tax book income plus discrete items as a percentage of pre-tax book income. Therefore, a change in pre-tax book income, either forecasted or actual year-to-date, from one period to the next will cause the ETR to change. For the three and six months ended June 30, 2023, the Company’s effective tax rate differed from the statutory rate primarily due to the increase in the valuation allowance the Company has placed on a portion of its U.S. deferred tax assets which includes the impact of IRC Section 174, permanent book-tax differences, uncertain tax positions and the impact of state and local taxes offset by federal and state R&D credits. For the three and six months ended June 30, 2022, the Company's effective tax rate differed from the statutory rate primarily due to the increase in the valuation allowance the Company has placed on a portion of its U.S. deferred tax assets which includes the impact of IRC Section 174, permanent book-tax differences, the impact of state and local taxes offset by federal and state R&D credits and the partial reserve release of an uncertain tax position due to the expiration of a statute of limitations. Inflation Reduction Act of 2022 On August 16, 2022, the U.S. enacted the IRA, which, among other things, implements a 15% minimum tax on book income of certain large corporations and a 1% excise tax on net stock repurchases. The provisions of the IRA became effective beginning in 2023. The Company does not anticipate a material impact on the consolidated financial statements.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share Securities that were anti-dilutive and therefore excluded from the computation of diluted net loss per share were as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Convertible Notes 11,253,471 9,898,549 11,361,458 9,898,549 Non-vested RSUs and PSUs 2,206,000 2,299,589 2,206,000 2,299,589 Options to purchase common stock 237,556 319,585 237,556 319,585 Warrants — 470,000 — 470,000 Total anti-dilutive securities 13,697,027 12,987,723 13,805,014 12,987,723

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Segment Information	Segment Information Business segments are generally organized around the Company's business services. The Company's business segments are: • Envestnet Wealth Solutions – a leading provider of unified wealth management software and services to empower financial advisors and institutions to enable them to deliver an intelligent financial life to their clients. • Envestnet Data & Analytics – a leading data aggregation, intelligence, and experiences platform that powers data connectivity and business intelligence across digital financial services to enable them to deliver an intelligent financial life to their clients. The information in the following tables is derived from the Company’s internal financial reporting used for corporate management purposes. Nonsegment operating expenses may include salary and benefits for certain corporate officers, certain types of professional service expenses and insurance, acquisition related transaction costs, certain restructuring charges and other non-recurring and/or non-operationally related expenses. Intersegment revenue was not material for the three and six months ended June 30, 2023 and 2022. See “Note 14—Revenue and Direct Expense” for detail of revenue by segment. The following table presents a reconciliation from income (loss) from operations by segment to consolidated net loss attributable to Envestnet, Inc.: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) Envestnet Wealth Solutions $ 23,399 $ 3,968 $ 46,862 $ 29,237 Envestnet Data & Analytics (10,993) (3,705) (18,773) (9,292) Nonsegment operating expenses (27,718) (31,986) (54,458) (58,389) Loss from operations (15,312) (31,723) (26,369) (38,444) Other (expense) income, net (7,402) 1,622 (15,337) (4,345) Consolidated loss before income tax provision (benefit) (22,714) (30,101) (41,706) (42,789) Income tax provision (benefit) 418 (5,833) 24,187 (3,813) Consolidated net loss (23,132) (24,268) (65,893) (38,976) Add: Net loss attributable to non-controlling interest 1,716 983 3,249 1,832 Consolidated net loss attributable to Envestnet, Inc. $ (21,416) $ (23,285) $ (62,644) $ (37,144) The following table presents a summary of consolidated total assets by segment: June 30, December 31, 2023 2022 (in thousands) Envestnet Wealth Solutions $ 1,479,455 $ 1,503,646 Envestnet Data & Analytics 574,450 608,519 Consolidated total assets $ 2,053,905 $ 2,112,165

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Purchase Obligations and Indemnifications The Company includes various types of indemnification and guarantee clauses in certain arrangements. These indemnifications and guarantees may include, but are not limited to, infringement claims related to intellectual property, direct or consequential damages and guarantees to certain service providers and service level requirements with certain customers. The type and amount of any potential indemnification or guarantee varies substantially based on the nature of each arrangement. The Company has experienced no previous claims and cannot determine the maximum amount of potential future payments, if any, related to such indemnification and guarantee provisions. The Company believes that it is unlikely it will have to make material payments under these arrangements and therefore has not recorded a contingent liability associated with these arrangements in the condensed consolidated balance sheets. The Company enters into unconditional purchase obligations arrangements for certain of its services that it receives in the normal course of business. Legal Proceedings The Company and its subsidiary, Yodlee, have been named as defendants in a lawsuit filed on July 17, 2019, by FinancialApps in the United States District Court for the District of Delaware. The case caption is FinancialApps, LLC v. Envestnet Inc., et al., No. 19-cv-1337 (D. Del.). FinancialApps alleges that, after entering into a 2017 services agreement with Yodlee, Envestnet and Yodlee breached the agreement and misappropriated proprietary information to develop competing credit risk assessment software. The complaint includes claims for, among other things, misappropriation of trade secrets, fraud, tortious interference with prospective business opportunities, unfair competition, copyright infringement and breach of contract. FinancialApps is seeking significant monetary damages and various equitable and injunctive relief. On September 17, 2019, the Company and Yodlee filed a motion to dismiss certain of the claims in the complaint filed by FinancialApps, including the copyright infringement, unfair competition and fraud claims. On August 25, 2020, the District Court granted in part and denied in part the Company and Yodlee’s motion. Specifically, the Company and Yodlee prevailed on FinancialApps’ counts alleging copyright infringement and violations of the Illinois Deceptive Trade Practices Act. And while the Court was receptive to Envestnet and Yodlee’s argument that several of FinancialApps’ other counts are based on allegations that amount to copyright infringement—and therefore should fail due to copyright preemption—the Court found that FinancialApps had alleged enough conduct distinct from copyright infringement to survive dismissal at this early stage. On October 30, 2019, the Company and Yodlee filed counterclaims against FinancialApps. Yodlee alleges that FinancialApps fraudulently induced it to enter into contracts with FinancialApps, then breached those contracts. FinancialApps has filed a motion to dismiss Yodlee’s counterclaims. On September 15, 2020, the District Court denied FinancialApps’ motion on all counts except for the breach-of-contract claim which was dismissed on a pleading technicality without prejudice. On that count, the Court granted Yodlee leave to amend its counterclaim, cure the technical deficiency, and reassert its claim. Yodlee and Envestnet filed amended counterclaims on September 30, 2020. The amended counterclaims (1) cure that technical deficiency and reassert Yodlee’s contract counterclaim; and (2) broaden the defamation counterclaims arising out of various defamatory statements FinancialApps disseminated in the trade press after filing the lawsuit. On January 14, 2021, the Court ordered that (i) FinancialApps' claims against Yodlee—as well as Yodlee’s counterclaims against FinancialApps—must be tried before the judge instead of a jury pursuant to a jury waiver provision in the parties’ agreement; and (ii) FinancialApps' claims against Envestnet (and Envestnet’s counterclaim) must be heard by a jury. The Court has scheduled the Envestnet jury trial to take place before the Yodlee bench trial. Fact discovery closed on April 23, 2021, other than a few outstanding matters, and expert discovery concluded on September 30, 2022. The parties’ respective summary judgment and motions to exclude the presentation of expert testimony (a “Daubert Motion”) are fully briefed and are awaiting final ruling. On July 25, 2023, the Magistrate Judge issued a report and recommendation that the Court grant FinancialApps’ summary judgment motion on Envestnet’s defamation counterclaim. The Magistrate Judge did not make a ruling as to Yodlee’s defamation counterclaim. On July 28, 2023, the Magistrate Judge denied Envestnet and Yodlee's Daubert motion to exclude FinancialApps' technical expert, Isaac Pflaum. On July 31, 2023, the Magistrate Judge issued a report and recommendation that the Court grant in part and deny in part Envestnet's summary judgment motion. The Magistrate Judge recommended that the motion be denied as to FinancialApps' vicarious liability theory and direct liability theory but recommended that the motion be granted with respect to the unjust enrichment count. The reports and recommendations are not final rulings, however, and the Company is permitted and intends to object to their adoption. The Company believes FinancialApps' allegations are without merit and will continue to defend the claims against it and litigate the counterclaims vigorously.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ (21,416)	$ (23,285)	$ (62,644)	$ (37,144)

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company as of June 30, 2023 and for the three and six months ended June 30, 2023 and 2022 have not been audited by an independent registered public accounting firm. These unaudited condensed consolidated financial statements have been prepared on the same basis as our audited consolidated financial statements for the year ended December 31, 2022 and reflect all normal recurring adjustments which are, in the opinion of management, necessary to present fairly the Company’s financial position as of June 30, 2023 and results of operations, equity, comprehensive income (loss) and cash flows for the periods presented herein. The unaudited condensed consolidated financial statements include the accounts of the Company. All significant intercompany transactions and balances have been eliminated in consolidation. Accounts for the Envestnet Wealth Solutions segment that are denominated in a non-U.S. currency have been re-measured using the U.S. dollar as the functional currency. Certain accounts within the Envestnet Data & Analytics segment are recorded and measured in foreign currencies. The assets and liabilities for those subsidiaries with a functional currency other than the U.S. dollar are translated at exchange rates in effect at the balance sheet date, and revenue and expenses are translated at average exchange rates. Differences arising from these foreign currency translations are recorded in the unaudited condensed consolidated balance sheets as accumulated other comprehensive income (loss) within stockholders' equity. The Company is also subject to gains and losses from foreign currency denominated transactions and the remeasurement of foreign currency denominated balance sheet accounts, both of which are included in other income (expense), net in the condensed consolidated statements of operations. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results of operations to be expected for other interim periods or for the full fiscal year. The unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. References to GAAP in these notes are to the FASB ASC and ASUs. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 28, 2023.
Use of Estimates	Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from these estimates under different assumptions or conditions.
Reclassifications	ReclassificationsCertain amounts in the condensed consolidated balance sheets as of December 31, 2022 and the condensed consolidated statements of cash flows for the six months ended June 30, 2022 have been reclassified to conform to the current period presentation. These reclassifications did not change the previously reported total assets, total liabilities and equity, or net change in cash and cash equivalents and did not affect the condensed consolidated statements of operations, condensed consolidated statements of comprehensive loss or condensed consolidated statements of stockholders' equity.
Recent Accounting Pronouncements Not Yet Adopted	Recent Accounting Pronouncements Not Yet Adopted In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements.” This update amends ASC 842 and the accounting for leasehold improvements associated with common control leases. This standard is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption of the standard is permitted. The Company is analyzing the impact of the adoption, but does not expect it to have a material impact on the consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Schedule of Cash and Cash Equivalents	The following table reconciles cash, cash equivalents and restricted cash from the condensed consolidated balance sheets to amounts reported in the condensed consolidated statements of cash flows: June 30, 2023 2022 (in thousands) Cash and cash equivalents $ 59,019 $ 338,115 Restricted cash included in prepaid expenses and other current assets — 149 Total cash, cash equivalents and restricted cash $ 59,019 $ 338,264
Restrictions on Cash and Cash Equivalents	The following table reconciles cash, cash equivalents and restricted cash from the condensed consolidated balance sheets to amounts reported in the condensed consolidated statements of cash flows: June 30, 2023 2022 (in thousands) Cash and cash equivalents $ 59,019 $ 338,115 Restricted cash included in prepaid expenses and other current assets — 149 Total cash, cash equivalents and restricted cash $ 59,019 $ 338,264

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	In connection with the Redi2 acquisition, the Company paid estimated consideration as follows: Preliminary Estimate Measurement Period Adjustments Revised Estimate (in thousands) Cash consideration, net $ 69,406 $ — $ 69,406 Estimated working capital adjustment (1,465) 932 (533) Total $ 67,941 $ 932 $ 68,873 The following table summarizes the estimated fair values of the assets acquired at the date of acquisition: Preliminary Estimate Measurement Period Adjustments Revised Estimate (in thousands) Total current assets $ 1,985 $ — $ 1,985 Other non-current assets 3,349 (28) 3,321 Identifiable intangible assets 26,500 — 26,500 Goodwill 44,236 2,231 46,467 Total assets acquired 76,070 2,203 78,273 Accounts payable, accrued expenses and other current liabilities (1,157) (1,271) (2,428) Operating lease liabilities (2,201) — (2,201) Deferred revenue (4,771) — (4,771) Total liabilities assumed (8,129) (1,271) (9,400) Total net assets acquired, net of cash received $ 67,941 $ 932 $ 68,873
Schedule of Intangible Assets Acquired, Estimated Useful Lives and Amortization Method	A summary of estimated intangible assets acquired, estimated useful lives and amortization method is as follows: Preliminary Estimate Estimated Useful Life Amortization Method (in thousands) (in years) Customer lists $ 14,000 14 - 16 Accelerated Proprietary technologies 9,500 6 Straight-line Trade names 3,000 6 - 7 Straight-line Total intangible assets acquired $ 26,500

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	6 Months Ended
	Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following: June 30, December 31, 2023 2022 (in thousands) Prepaid technology $ 15,387 $ 16,649 Prepaid insurance 5,473 2,881 Non-income tax receivable 5,383 5,488 Other 15,663 16,345 Total prepaid expenses and other current assets $ 41,906 $ 41,363

Internally Developed Software_2

Internally Developed Software, Net (Tables)	6 Months Ended
	Jun. 30, 2023
Research and Development [Abstract]
Schedule of Internally Developed Software, Net	Internally developed software, net consisted of the following: June 30, December 31, Estimated Useful Life 2023 2022 (in thousands) Internally developed software 5 years $ 359,365 $ 313,200 Less: accumulated amortization (152,130) (128,642) Internally developed software, net $ 207,235 $ 184,558

Geographical Information (Table

Geographical Information (Tables)	6 Months Ended
	Jun. 30, 2023
Segments, Geographical Areas [Abstract]
Schedule of Property, Plant, and Equipment, Net by Geographic Area	The following table sets forth certain long-lived assets including property and equipment, net and internally developed software, net by geographic area: June 30, December 31, 2023 2022 (in thousands) United States $ 271,230 $ 245,817 India 2,665 1,093 Other 8 91 Total long-lived assets, net $ 273,903 $ 247,001

Intangible Assets, Net (Tables)

Intangible Assets, Net (Tables)	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets, Net	Intangible assets, net consisted of the following: June 30, 2023 December 31, 2022 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Amount Amortization Amount Amount Amortization Amount (in thousands) Customer lists $ 604,080 $ (306,457) $ 297,623 $ 604,080 $ (285,288) $ 318,792 Proprietary technologies 109,057 (51,549) 57,508 113,224 (59,401) 53,823 Trade names 15,700 (9,496) 6,204 15,700 (8,320) 7,380 Total intangible assets $ 728,837 $ (367,502) $ 361,335 $ 733,004 $ (353,009) $ 379,995
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Future amortization expense of the Company's intangible assets as of June 30, 2023, is expected to be as follows (in thousands): Remainder of 2023 $ 30,136 2024 55,968 2025 52,573 2026 45,048 2027 36,283 Thereafter 141,327 Total $ 361,335

Depreciation and Amortization_2

Depreciation and Amortization Expense (Tables)	6 Months Ended
	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Schedule of Depreciation and Amortization Expense	Depreciation and amortization expense consisted of the following: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) Intangible asset amortization $ 15,720 $ 17,645 $ 32,660 $ 35,165 Internally developed software amortization 12,398 9,087 23,488 17,581 Property and equipment depreciation 5,688 5,450 10,599 11,054 Total depreciation and amortization $ 33,806 $ 32,182 $ 66,747 $ 63,800

Goodwill (Tables)

Goodwill (Tables)	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill by Segment	Changes in the carrying amount of goodwill by reportable segment were as follows: Envestnet Wealth Solutions Envestnet Data & Analytics Total (in thousands) Balance as of December 31, 2022 $ 679,739 $ 318,675 $ 998,414 Foreign currency translation — 22 22 Balance as of June 30, 2023 $ 679,739 $ 318,697 $ 998,436

Accounts Payable, Accrued Exp_2

Accounts Payable, Accrued Expenses and Other Current Liabilities (Tables)	6 Months Ended
	Jun. 30, 2023
Payables and Accruals [Abstract]
Schedule of Accounts Payable, Accrued Expenses and Other Current Liabilities	Accounts payable, accrued expenses and other liabilities consisted of the following: June 30, December 31, 2023 2022 (in thousands) Accrued investment manager fees $ 105,913 $ 99,851 Accrued compensation and related taxes 57,771 77,939 Accounts payable 27,853 11,271 Accrued professional services 17,622 10,762 Income tax payable 13,102 260 Accrued technology 8,331 6,393 Accrued treasury stock purchases — 9,289 Other accrued expenses 9,244 18,101 Total accounts payable, accrued expenses and other current liabilities $ 239,836 $ 233,866

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of Debt Obligation	The following tables set forth the carrying value and estimated fair value of the Company's debt obligations as of June 30, 2023 and December 31, 2022: June 30, 2023 Issuance Amount Unamortized Issuance Costs Carrying Value Fair Value (Level II) (in thousands) Revolving Credit Facility $ 20,000 $ — $ 20,000 $ 20,000 Convertible Notes due 2025 317,500 (3,870) 313,630 292,576 Convertible Notes due 2027 575,000 (14,455) 560,545 607,499 Total debt $ 912,500 $ (18,325) $ 894,175 $ 920,075 December 31, 2022 Issuance Amount Unamortized Issuance Costs Carrying Value Fair Value (Level II) (in thousands) Revolving Credit Facility $ — $ — $ — $ — Convertible Notes due 2023 45,000 (114) 44,886 46,058 Convertible Notes due 2025 317,500 (4,765) 312,735 293,688 Convertible Notes due 2027 575,000 (15,966) 559,034 606,119 Total debt $ 937,500 $ (20,845) $ 916,655 $ 945,865 The effective interest rate of the Notes was equal to the stated interest rate plus the amortization of the debt issuance costs and is set forth below: June 30, June 30, 2023 2022 Convertible Notes due 2023 N/A 2.4 % Convertible Notes due 2025 1.3 % 1.3 % Convertible Notes due 2027 3.2 % N/A
Schedule of Interest Expense	Interest expense was comprised of the following and is included in other expense, net in the condensed consolidated statements of operations: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) Convertible Notes interest $ 4,543 $ 2,480 $ 9,108 $ 4,960 Amortization of debt discount and issuance costs 1,427 1,415 2,869 3,474 Undrawn and other fees 311 317 624 631 Revolving Credit Facility interest 250 — 250 — Total interest expense $ 6,531 $ 4,212 $ 12,851 $ 9,065

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of Financial Assets and Liabilities Measured at Fair Value	The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis in the condensed consolidated balance sheets as of June 30, 2023 and December 31, 2022, based on the three-tier fair value hierarchy, as described in detail within the Company's Annual Report on Form 10-K: June 30, 2023 Fair Value Level I Level II Level III (in thousands) Assets: Money market funds $ 23,764 $ 23,764 $ — $ — Assets to fund deferred compensation liability 10,635 — — 10,635 Total assets $ 34,399 $ 23,764 $ — $ 10,635 Liabilities: Deferred compensation liability 8,864 8,864 — — Total liabilities $ 8,864 $ 8,864 $ — $ — December 31, 2022 Fair Value Level I Level II Level III (in thousands) Assets: Money market funds $ 2,628 $ 2,628 $ — $ — Assets to fund deferred compensation liability 10,074 — — 10,074 Total assets $ 12,702 $ 2,628 $ — $ 10,074 Liabilities: Deferred compensation liability 8,088 8,088 — — Total liabilities $ 8,088 $ 8,088 $ — $ —
Schedule of Reconciliation of Assets	The table below presents a reconciliation of the assets used to fund the Company's deferred compensation liability, which is measured at fair value on a recurring basis using significant unobservable inputs (Level III) for the period from December 31, 2022 to June 30, 2023: Fair Value of Assets Used to Fund Deferred Compensation Liability (in thousands) Balance as of December 31, 2022 $ 10,074 Fair value adjustments and fees 561 Balance as of June 30, 2023 $ 10,635

Revenue and Direct Expense (Tab

Revenue and Direct Expense (Tables)	6 Months Ended
	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue by Major Source	The following table presents the Company’s revenue by segment disaggregated by major source: Three Months Ended June 30, 2023 2022 Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated (in thousands) Revenue: Asset-based $ 185,762 $ — $ 185,762 $ 191,972 $ — $ 191,972 Subscription-based 75,509 39,450 114,959 73,568 44,552 118,120 Total recurring revenue 261,271 39,450 300,721 265,540 44,552 310,092 Professional services and other revenue 10,310 1,403 11,713 6,460 2,300 8,760 Total revenue $ 271,581 $ 40,853 $ 312,434 $ 272,000 $ 46,852 $ 318,852 Six Months Ended June 30, 2023 2022 Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated Envestnet Wealth Solutions Envestnet Data & Analytics Consolidated (in thousands) Revenue: Asset-based $ 362,694 $ — $ 362,694 $ 394,689 $ — $ 394,689 Subscription-based 151,994 80,044 232,038 142,105 90,749 232,854 Total recurring revenue 514,688 80,044 594,732 536,794 90,749 627,543 Professional services and other revenue 13,553 2,856 16,409 8,774 3,898 12,672 Total revenue $ 528,241 $ 82,900 $ 611,141 $ 545,568 $ 94,647 $ 640,215
Schedule of Disaggregation of Revenue by Geography	The following table presents the Company’s revenue disaggregated by geography, based on the billing address of the customer: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) United States $ 306,946 $ 314,271 $ 600,160 $ 631,000 International 5,488 4,581 10,981 9,215 Total revenue $ 312,434 $ 318,852 $ 611,141 $ 640,215
Schedule of Direct Expense by Revenue Category	The following table summarizes direct expense by revenue category: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) Asset-based $ 108,532 $ 112,301 $ 211,155 $ 229,729 Subscription-based 6,933 7,241 13,295 15,052 Professional services and other 8,032 6,940 8,036 6,983 Total direct expense $ 123,497 $ 126,482 $ 232,486 $ 251,764

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Stock-Based Compensation Expense	Stock-based compensation expense under the Company’s plans was as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) Stock-based compensation expense $ 21,390 $ 22,876 $ 40,843 $ 44,566 Tax effect on stock-based compensation expense (5,454) (5,833) (10,415) (11,364) Net effect on income $ 15,936 $ 17,043 $ 30,428 $ 33,202
Schedule of Option Activity under the Company's Plans	The following table summarizes option activity under the Company’s plans: Weighted- Weighted-Average Average Remaining Aggregate Options Exercise Price Contractual Life Intrinsic Value (in years) (in thousands) Outstanding as of December 31, 2022 277,535 $ 40.07 2.2 $ 6,005 Exercised (39,954) $ 17.00 Forfeited (25) $ 74.83 Outstanding as of June 30, 2023 237,556 $ 43.95 1.9 $ 3,661 Options exercisable as of June 30, 2023 237,349 $ 43.93 1.8 $ 3,661
Summary of RSU and PSU Activity	The following table summarizes RSU and PSU activity under the Company’s plans: RSUs PSUs Number of Weighted- Number of Weighted- Non-vested as of December 31, 2022 1,681,976 $ 72.69 259,049 $ 74.83 Granted 1,094,308 $ 61.12 40,010 $ 69.47 Vested (665,092) $ 73.75 (21,994) $ 76.28 Forfeited (132,017) $ 77.29 (50,240) $ 77.59 Non-vested as of June 30, 2023 1,979,175 $ 65.63 226,825 $ 73.14

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Schedule of Loss before Income Tax Provision (Benefit)	The following table includes the Company’s loss before income tax provision (benefit), income tax provision (benefit) and effective tax rate: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands, except for effective tax rate) Loss before income tax provision (benefit) $ (22,714) $ (30,101) $ (41,706) $ (42,789) Income tax provision (benefit) $ 418 $ (5,833) $ 24,187 $ (3,813) Effective tax rate (1.8) % 19.4 % (58.0) % 8.9 %

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
Schedule of Anti-Dilutive Securities Excluded from Computation of Diluted Earnings per Share	Securities that were anti-dilutive and therefore excluded from the computation of diluted net loss per share were as follows: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Convertible Notes 11,253,471 9,898,549 11,361,458 9,898,549 Non-vested RSUs and PSUs 2,206,000 2,299,589 2,206,000 2,299,589 Options to purchase common stock 237,556 319,585 237,556 319,585 Warrants — 470,000 — 470,000 Total anti-dilutive securities 13,697,027 12,987,723 13,805,014 12,987,723

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2023
Segment Reporting [Abstract]
Schedule of Income (Loss) from Operations by Segment	The following table presents a reconciliation from income (loss) from operations by segment to consolidated net loss attributable to Envestnet, Inc.: Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 (in thousands) Envestnet Wealth Solutions $ 23,399 $ 3,968 $ 46,862 $ 29,237 Envestnet Data & Analytics (10,993) (3,705) (18,773) (9,292) Nonsegment operating expenses (27,718) (31,986) (54,458) (58,389) Loss from operations (15,312) (31,723) (26,369) (38,444) Other (expense) income, net (7,402) 1,622 (15,337) (4,345) Consolidated loss before income tax provision (benefit) (22,714) (30,101) (41,706) (42,789) Income tax provision (benefit) 418 (5,833) 24,187 (3,813) Consolidated net loss (23,132) (24,268) (65,893) (38,976) Add: Net loss attributable to non-controlling interest 1,716 983 3,249 1,832 Consolidated net loss attributable to Envestnet, Inc. $ (21,416) $ (23,285) $ (62,644) $ (37,144)
Schedule of Consolidated Total Assets	The following table presents a summary of consolidated total assets by segment: June 30, December 31, 2023 2022 (in thousands) Envestnet Wealth Solutions $ 1,479,455 $ 1,503,646 Envestnet Data & Analytics 574,450 608,519 Consolidated total assets $ 2,053,905 $ 2,112,165

Organization and Description _2

Organization and Description of Business (Details)	6 Months Ended
	Jun. 30, 2023 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	2

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Cash and cash equivalents	$ 59,019	$ 162,173	$ 338,115
Restricted cash included in prepaid expenses and other current assets	0		149
Total cash, cash equivalents and restricted cash	$ 59,019	$ 162,173	$ 338,264	$ 429,428

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Loss allocations from equity method investments			$ (5,872)	$ (2,945)
Private Services Company
Disaggregation of Revenue [Line Items]
Ownership percentage	3.80%		3.80%
Loss allocations from equity method investments	$ 3,300	$ 4,300	$ 6,900	$ 9,000
Due from related parties	$ 1,900		$ 1,900		$ 2,000

Acquisitions - Acquisition of R

Acquisitions - Acquisition of Redi2 Technologies - Cash Consideration (Details) - Redi Technologies acquisition - USD ($) $ in Thousands		6 Months Ended	12 Months Ended
	Jul. 01, 2022	Jun. 30, 2023	Jun. 30, 2023
Business Acquisition [Line Items]
Cash consideration, net		$ 69,406
Estimated working capital adjustment		(533)
Total		$ 68,873
Total net assets acquired, measurement period adjustments			$ 932
Preliminary Estimate
Business Acquisition [Line Items]
Cash consideration, net	$ 69,406
Estimated working capital adjustment	(1,465)
Total	$ 67,941
Measurement Period Adjustments
Business Acquisition [Line Items]
Cash consideration, net			0
Estimated working capital adjustment			932
Total			$ 932

Acquisitions - Acquisition of_2

Acquisitions - Acquisition of Redi2 Technologies - Narrative (Details) - Redi Technologies acquisition - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Jul. 01, 2022
Business Acquisition [Line Items]
Payments for performance bonuses	$ 1.1	$ 1.5
Goodwill, expected tax deductible amount			$ 40.7
Certain Executives
Business Acquisition [Line Items]
Additional contingent consideration			$ 20

Acquisitions - Acquisition of_3

Acquisitions - Acquisition of Redi2 Technologies -Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Jul. 01, 2022	Jun. 30, 2022
Business Acquisition [Line Items]
Goodwill	$ 998,436	$ 998,414
Redi Technologies acquisition
Business Acquisition [Line Items]
Total current assets			$ 1,985	$ 1,985
Total current assets, Measurement Period Adjustments	0
Other non-current assets			3,349	3,321
Estimated working capital adjustment, Measurement Period Adjustments	(28)
Identifiable intangible assets			26,500	26,500
Identifiable intangible assets, Measurement Period Adjustments	0
Goodwill			44,236	46,467
Goodwill, Measurement Period Adjustments	2,231
Total assets acquired			76,070	78,273
Total assets acquired, Measurement Period Adjustments	2,203
Accounts payable, accrued expenses and other current liabilities			(1,157)	(2,428)
Accounts payable, accrued expenses and other current liabilities, Measurement Period Adjustments	(1,271)
Operating lease liabilities			(2,201)	(2,201)
Operating lease liabilities, Measurement Period Adjustments	0
Deferred revenue			(4,771)	(4,771)
Deferred revenue, Measurement Period Adjustments	0
Total liabilities assumed			(8,129)	(9,400)
Total liabilities assumed, Measurement Period Adjustments	(1,271)
Total net assets acquired, net of cash received			$ 67,941	$ 68,873
Total net assets acquired, measurement period adjustments	$ 932

Acquisitions - Acquisition of_4

Acquisitions - Acquisition of Redi2 Technologies - Estimated Intangible Assets Acquired (Details) - USD ($) $ in Thousands		6 Months Ended
	Jul. 01, 2022	Jun. 30, 2023
Proprietary technologies
Business Acquisition [Line Items]
Estimated Useful Life		5 years
Redi Technologies acquisition
Business Acquisition [Line Items]
Preliminary Estimate	$ 26,500
Redi Technologies acquisition | Customer lists
Business Acquisition [Line Items]
Preliminary Estimate	$ 14,000
Redi Technologies acquisition | Customer lists | Minimum
Business Acquisition [Line Items]
Estimated Useful Life	14 years
Redi Technologies acquisition | Customer lists | Maximum
Business Acquisition [Line Items]
Estimated Useful Life	16 years
Redi Technologies acquisition | Proprietary technologies
Business Acquisition [Line Items]
Preliminary Estimate	$ 9,500
Estimated Useful Life	6 years
Redi Technologies acquisition | Trade names
Business Acquisition [Line Items]
Preliminary Estimate	$ 3,000
Redi Technologies acquisition | Trade names | Minimum
Business Acquisition [Line Items]
Estimated Useful Life	6 years
Redi Technologies acquisition | Trade names | Maximum
Business Acquisition [Line Items]
Estimated Useful Life	7 years

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid technology	$ 15,387	$ 16,649
Prepaid insurance	5,473	2,881
Non-income tax receivable	5,383	5,488
Other	15,663	16,345
Total prepaid expenses and other current assets	$ 41,906	$ 41,363

Internally Developed Software_3

Internally Developed Software, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Internally developed software, net	$ 207,235	$ 184,558
Internally developed software
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Internally developed software	$ 359,365	313,200
Less: accumulated amortization	(152,130)	(128,642)
Internally developed software, net	$ 207,235	$ 184,558

Geographical Information (Detai

Geographical Information (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 273,903	$ 247,001
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	271,230	245,817
India
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	2,665	1,093
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 8	$ 91

Intangible Assets, Net - Intang

Intangible Assets, Net - Intangible Assets, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 728,837	$ 733,004
Accumulated Amortization	(367,502)	(353,009)
Net Carrying Amount	361,335	379,995
Customer lists
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	604,080	604,080
Accumulated Amortization	(306,457)	(285,288)
Net Carrying Amount	297,623	318,792
Proprietary technologies
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	109,057	113,224
Accumulated Amortization	(51,549)	(59,401)
Net Carrying Amount	57,508	53,823
Trade names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	15,700	15,700
Accumulated Amortization	(9,496)	(8,320)
Net Carrying Amount	$ 6,204	$ 7,380

Intangible Assets, Net - Narrat

Intangible Assets, Net - Narrative (Details) - USD ($) $ in Thousands			1 Months Ended	3 Months Ended	6 Months Ended
	May 19, 2023	Apr. 01, 2022	Jan. 31, 2023	Mar. 31, 2023	Jun. 30, 2023	Jun. 30, 2022
Finite-Lived Intangible Assets [Line Items]
Payments to acquire intangible assets					$ 12,000	$ 19,000
Proprietary technologies
Finite-Lived Intangible Assets [Line Items]
Consideration transferred	$ 7,000	$ 9,000	$ 5,000
Payments to acquire intangible assets	$ 2,000	$ 4,000
Payment to acquire assets				$ 10,000
Estimated useful life					5 years
Cost of fully amortized and retired assets					$ 17,500

Intangible Assets, Net - Future

Intangible Assets, Net - Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Future amortization expense of the intangible assets
Remainder of 2023	$ 30,136
2024	55,968
2025	52,573
2026	45,048
2027	36,283
Thereafter	141,327
Net Carrying Amount	$ 361,335	$ 379,995

Depreciation and Amortization_3

Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Intangible asset amortization	$ 15,720	$ 17,645	$ 32,660	$ 35,165
Internally developed software amortization	12,398	9,087	23,488	17,581
Property and equipment depreciation	5,688	5,450	10,599	11,054
Total depreciation and amortization	$ 33,806	$ 32,182	$ 66,747	$ 63,800

Goodwill (Details)

Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Changes in the carrying amount of the Company's goodwill
Balance as of period start	$ 998,414
Foreign currency translation	22
Balance as of period end	998,436
Envestnet Wealth Solutions
Changes in the carrying amount of the Company's goodwill
Balance as of period start	679,739
Foreign currency translation	0
Balance as of period end	679,739
Envestnet Data & Analytics
Changes in the carrying amount of the Company's goodwill
Balance as of period start	318,675
Foreign currency translation	22
Balance as of period end	$ 318,697

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jan. 31, 2023
Other Asset [Line Items]
Impairment of investments	$ 0
Notes Receivable
Other Asset [Line Items]
Receivable with imputed interest, face amount		$ 20,000
Interest rate		8%

Accounts Payable, Accrued Exp_3

Accounts Payable, Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accrued investment manager fees	$ 105,913	$ 99,851
Accrued compensation and related taxes	57,771	77,939
Accounts payable	27,853	11,271
Accrued professional services	17,622	10,762
Income tax payable	13,102	260
Accrued technology	8,331	6,393
Accrued treasury stock purchases	0	9,289
Other accrued expenses	9,244	18,101
Total accounts payable, accrued expenses and other current liabilities	$ 239,836	$ 233,866

Accrued Expenses and Other Liab

Accrued Expenses and Other Liabilities - Narrative (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)
Payables and Accruals [Abstract]
Severance costs	$ 8.2	$ 14.4
Accrued severance	$ 9.4	$ 9.4

Debt - Summary of Outstanding D

Debt - Summary of Outstanding Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 01, 2023	Dec. 31, 2022
Convertible Notes Payable
Debt Instrument [Line Items]
Issuance Amount	$ 912,500		$ 937,500
Unamortized Issuance Costs	(18,325)		(20,845)
Carrying Value	894,175		916,655
Convertible Notes Payable | Level II
Debt Instrument [Line Items]
Fair Value (Level II)	920,075		945,865
Convertible Notes Payable | Convertible Notes Due 2023
Debt Instrument [Line Items]
Issuance Amount		$ 45,000	45,000
Unamortized Issuance Costs			(114)
Carrying Value			44,886
Convertible Notes Payable | Convertible Notes Due 2023 | Level II
Debt Instrument [Line Items]
Fair Value (Level II)			46,058
Convertible Notes Payable | Convertible Notes due 2025
Debt Instrument [Line Items]
Issuance Amount	317,500		317,500
Unamortized Issuance Costs	(3,870)		(4,765)
Carrying Value	313,630		312,735
Convertible Notes Payable | Convertible Notes due 2025 | Level II
Debt Instrument [Line Items]
Fair Value (Level II)	292,576		293,688
Convertible Notes Payable | Convertible Notes due 2027
Debt Instrument [Line Items]
Issuance Amount	575,000		575,000
Unamortized Issuance Costs	(14,455)		(15,966)
Carrying Value	560,545		559,034
Convertible Notes Payable | Convertible Notes due 2027 | Level II
Debt Instrument [Line Items]
Fair Value (Level II)	607,499		606,119
Revolving Credit Facility | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Issuance Amount	20,000		0
Unamortized Issuance Costs	0		0
Carrying Value	20,000		0
Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Level II
Debt Instrument [Line Items]
Fair Value (Level II)	$ 20,000		$ 0

Debt - Credit Agreement (Detail

Debt - Credit Agreement (Details) - USD ($) $ in Thousands		6 Months Ended
	Jul. 19, 2023	Jun. 30, 2023	Jun. 01, 2023	Dec. 31, 2022
Convertible Notes Payable
Debt Instrument [Line Items]
Issuance Amount		$ 912,500		$ 937,500
Revolving Credit Facility | Prepaid Expenses and Other Current Assets
Debt Instrument [Line Items]
Debt issuance costs		700		700
Revolving Credit Facility | Other Noncurrent Assets
Debt Instrument [Line Items]
Debt issuance costs		1,800		2,200
Revolving Credit Facility | Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Issuance Amount		$ 20,000		0
Effective interest rate		7.50%
Current borrowing capacity		$ 480,000
Revolving Credit Facility | Revolving Credit Facility | Line of Credit | Subsequent Event
Debt Instrument [Line Items]
Current borrowing capacity	$ 500,000
Debt settlement	$ 20,000
Convertible Notes Due 2023 | Convertible Notes Payable
Debt Instrument [Line Items]
Issuance Amount			$ 45,000	$ 45,000

Debt - Interest Expense (Detail

Debt - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Debt Disclosure [Abstract]
Convertible Notes interest	$ 4,543	$ 2,480	$ 9,108	$ 4,960
Amortization of debt discount and issuance costs	1,427	1,415	2,869	3,474
Undrawn and other fees	311	317	624	631
Revolving Credit Facility interest	250	0	250	0
Total interest expense	$ 6,531	$ 4,212	$ 12,851	$ 9,065

Debt - Effective Interest Rate

Debt - Effective Interest Rate of Notes (Details) - Convertible Notes Payable	Jun. 30, 2023	Jun. 30, 2022
Convertible Notes Due 2023
Debt Instrument [Line Items]
Effective interest rate		2.40%
Convertible Notes due 2025
Debt Instrument [Line Items]
Effective interest rate	1.30%	1.30%
Convertible Notes due 2027
Debt Instrument [Line Items]
Effective interest rate	3.20%

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - Recurring Basis - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Level I
Assets:
Assets to fund deferred compensation liability	$ 0	$ 0
Total assets	23,764	2,628
Liabilities:
Deferred compensation liability	8,864	8,088
Total liabilities	8,864	8,088
Level I | Money market funds
Assets:
Money market funds	23,764	2,628
Level II
Assets:
Assets to fund deferred compensation liability	0	0
Total assets	0	0
Liabilities:
Deferred compensation liability	0	0
Total liabilities	0	0
Level II | Money market funds
Assets:
Money market funds	0	0
Level III
Assets:
Assets to fund deferred compensation liability	10,635	10,074
Total assets	10,635	10,074
Liabilities:
Deferred compensation liability	0	0
Total liabilities	0	0
Level III | Money market funds
Assets:
Money market funds	0	0
Fair Value
Assets:
Assets to fund deferred compensation liability	10,635	10,074
Total assets	34,399	12,702
Liabilities:
Deferred compensation liability	8,864	8,088
Total liabilities	8,864	8,088
Fair Value | Money market funds
Assets:
Money market funds	$ 23,764	$ 2,628

Fair Value Measurements - Level

Fair Value Measurements - Level III (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Fair Value of Assets Used to Fund Deferred Compensation Liability
Beginning balance	$ 10,074
Fair value adjustments and fees	561
Ending balance	$ 10,635
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	General and administrative

Revenue and Direct Expense - Di

Revenue and Direct Expense - Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue:
Total revenue	$ 312,434	$ 318,852	$ 611,141	$ 640,215
UNITED STATES
Revenue:
Total revenue	306,946	314,271	600,160	631,000
International
Revenue:
Total revenue	5,488	4,581	10,981	9,215
Total recurring revenue
Revenue:
Total revenue	300,721	310,092	594,732	627,543
Asset-based
Revenue:
Total revenue	185,762	191,972	362,694	394,689
Subscription-based
Revenue:
Total revenue	114,959	118,120	232,038	232,854
Professional services and other revenue
Revenue:
Total revenue	11,713	8,760	16,409	12,672
Envestnet Wealth Solutions
Revenue:
Total revenue	271,581	272,000	528,241	545,568
Envestnet Wealth Solutions | Total recurring revenue
Revenue:
Total revenue	261,271	265,540	514,688	536,794
Envestnet Wealth Solutions | Asset-based
Revenue:
Total revenue	185,762	191,972	362,694	394,689
Envestnet Wealth Solutions | Subscription-based
Revenue:
Total revenue	75,509	73,568	151,994	142,105
Envestnet Wealth Solutions | Professional services and other revenue
Revenue:
Total revenue	10,310	6,460	13,553	8,774
Envestnet Data & Analytics
Revenue:
Total revenue	40,853	46,852	82,900	94,647
Envestnet Data & Analytics | Total recurring revenue
Revenue:
Total revenue	39,450	44,552	80,044	90,749
Envestnet Data & Analytics | Asset-based
Revenue:
Total revenue	0	0	0	0
Envestnet Data & Analytics | Subscription-based
Revenue:
Total revenue	39,450	44,552	80,044	90,749
Envestnet Data & Analytics | Professional services and other revenue
Revenue:
Total revenue	$ 1,403	$ 2,300	$ 2,856	$ 3,898

Revenue and Direct Expense - Ob

Revenue and Direct Expense - Obligation (Details) $ in Millions	Jun. 30, 2023 USD ($)
Remaining Performance Obligations
Remaining performance obligations	$ 531
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Remaining Performance Obligations
Revenue, remaining performance obligation, percentage	24%
Revenue recognition period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Remaining Performance Obligations
Revenue, remaining performance obligation, percentage	55%
Revenue recognition period	1 year

Revenue and Direct Expense - Na

Revenue and Direct Expense - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Increase in contract with customer, liability			$ (900,000)
Recognized deferred revenue	$ 11,500,000	$ 10,200,000	28,200,000	$ 26,100,000
Deferred sales incentive compensation	10,900,000		10,900,000		$ 11,000,000
Amortization expense for the deferred sales incentive compensation	$ 1,200,000	$ 1,100,000	2,300,000	2,200,000
Impairment loss for capitalized costs			$ 0	$ 0

Revenue and Direct Expense - _2

Revenue and Direct Expense - Direct Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Product Information [Line Items]
Direct expense	$ 123,497	$ 126,482	$ 232,486	$ 251,764
Asset-based
Product Information [Line Items]
Direct expense	108,532	112,301	211,155	229,729
Subscription-based
Product Information [Line Items]
Direct expense	6,933	7,241	13,295	15,052
Professional services and other
Product Information [Line Items]
Direct expense	$ 8,032	$ 6,940	$ 8,036	$ 6,983

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Stock-Based compensation
Maximum number of shares available for future issuance (in shares)	1,626,985		1,626,985
Statutory rate (as a percent)	25.50%	25.50%	25.50%	25.50%
Options
Stock-Based compensation
Unrecognized compensation expense weighted-average recognition period			1 month 6 days
RSUs
Stock-Based compensation
Unrecognized compensation expense weighted-average recognition period			2 years
Unrecognized compensation expense related to shares	$ 108.6		$ 108.6
PSUs
Stock-Based compensation
Unrecognized compensation expense weighted-average recognition period			1 year 2 months 12 days
Unrecognized compensation expense related to shares	$ 6.2		$ 6.2

Stock-Based Compensation - Expe

Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-based compensation expense	$ 21,390	$ 22,876	$ 40,843	$ 44,566
Tax effect on stock-based compensation expense	(5,454)	(5,833)	(10,415)	(11,364)
Net effect on income	$ 15,936	$ 17,043	$ 30,428	$ 33,202

Stock-Based Compensation - Opti

Stock-Based Compensation - Options (Details) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares
Options
Outstanding at the beginning of the period (in shares) | shares	277,535
Exercise of stock options (in shares) | shares	(39,954)
Forfeitures of stock options (in shares) | shares	(25)
Outstanding at the end of the period (in shares) | shares	237,556	277,535
Options exercisable (in shares) | shares	237,349
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) | $ / shares	$ 40.07
Exercised (in dollars per share) | $ / shares	17
Forfeited (in dollars per share) | $ / shares	74.83
Outstanding at the end of the period (in dollars per share) | $ / shares	43.95	$ 40.07
Weighted-average exercise price, options exercisable (in dollars per share) | $ / shares	$ 43.93
Weighted-Average Remaining Contractual Life
Outstanding	1 year 10 months 24 days	2 years 2 months 12 days
Options exercisable	1 year 9 months 18 days
Aggregate Intrinsic Value
Outstanding (in dollars) | $	$ 3,661	$ 6,005
Options exercisable (in dollars) | $	$ 3,661

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Units (Details)	6 Months Ended
	Jun. 30, 2023 $ / shares shares
RSUs
Number of Shares
Balance at the beginning of the period (in shares) | shares	1,681,976
Granted (in shares) | shares	1,094,308
Vested (in shares) | shares	(665,092)
Forfeited (in shares) | shares	(132,017)
Balance at the end of the period (in shares) | shares	1,979,175
Weighted- Average Grant Date Fair Value per Share
Balance at the beginning of the period (in dollars per share) | $ / shares	$ 72.69
Granted (in dollars per share) | $ / shares	61.12
Vested (in dollars per share) | $ / shares	73.75
Forfeited (in dollars per share) | $ / shares	77.29
Balance at the end of the period (in dollars per share) | $ / shares	$ 65.63
PSUs
Number of Shares
Balance at the beginning of the period (in shares) | shares	259,049
Granted (in shares) | shares	40,010
Vested (in shares) | shares	(21,994)
Forfeited (in shares) | shares	(50,240)
Balance at the end of the period (in shares) | shares	226,825
Weighted- Average Grant Date Fair Value per Share
Balance at the beginning of the period (in dollars per share) | $ / shares	$ 74.83
Granted (in dollars per share) | $ / shares	69.47
Vested (in dollars per share) | $ / shares	76.28
Forfeited (in dollars per share) | $ / shares	77.59
Balance at the end of the period (in dollars per share) | $ / shares	$ 73.14

Income Taxes - Loss Before Inco

Income Taxes - Loss Before Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Loss before income tax provision (benefit)	$ (22,714)	$ (30,101)	$ (41,706)	$ (42,789)
Income tax provision (benefit)	$ 418	$ (5,833)	$ 24,187	$ (3,813)
Effective tax rate	(1.80%)	19.40%	(58.00%)	8.90%

Net Loss Per Share - Antidiluti

Net Loss Per Share - Antidilutive Securities (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share
Anti-dilutive securities excluded from computation of diluted loss per share (in shares)	13,697,027	12,987,723	13,805,014	12,987,723
Convertible Notes
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share
Anti-dilutive securities excluded from computation of diluted loss per share (in shares)	11,253,471	9,898,549	11,361,458	9,898,549
Non-vested RSUs and PSUs
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share
Anti-dilutive securities excluded from computation of diluted loss per share (in shares)	2,206,000	2,299,589	2,206,000	2,299,589
Options to purchase common stock
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share
Anti-dilutive securities excluded from computation of diluted loss per share (in shares)	237,556	319,585	237,556	319,585
Warrants
Common share equivalents for securities that were anti-dilutive and therefore excluded from the computation of diluted earnings per share
Anti-dilutive securities excluded from computation of diluted loss per share (in shares)	0	470,000	0	470,000

Segment Information - Reconcili

Segment Information - Reconciliation of Income (Loss) From Operations (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Loss from continuing operations	$ (15,312)		$ (31,723)		$ (26,369)	$ (38,444)
Nonsegment operating expenses	(327,746)		(350,575)		(637,510)	(678,659)
Other (expense) income, net	(7,402)		1,622		(15,337)	(4,345)
Loss before income tax provision (benefit)	(22,714)		(30,101)		(41,706)	(42,789)
Income tax provision (benefit)	418		(5,833)		24,187	(3,813)
Net loss	(23,132)	$ (42,761)	(24,268)	$ (14,708)	(65,893)	(38,976)
Add: Net loss attributable to non-controlling interest	1,716		983		3,249	1,832
Net loss attributable to Envestnet, Inc.	(21,416)		(23,285)		(62,644)	(37,144)
Operating Segments | Envestnet Wealth Solutions
Segment Reporting Information [Line Items]
Loss from continuing operations	23,399		3,968		46,862	29,237
Operating Segments | Envestnet Data & Analytics
Segment Reporting Information [Line Items]
Loss from continuing operations	(10,993)		(3,705)		(18,773)	(9,292)
Nonsegment
Segment Reporting Information [Line Items]
Nonsegment operating expenses	$ (27,718)		$ (31,986)		$ (54,458)	$ (58,389)

Segment Information - Summary o

Segment Information - Summary of Consolidated Total Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Assets	$ 2,053,905	$ 2,112,165
Envestnet Wealth Solutions
Segment Reporting Information [Line Items]
Assets	1,479,455	1,503,646
Envestnet Data & Analytics
Segment Reporting Information [Line Items]
Assets	$ 574,450	$ 608,519

Commitments and Contingencies (

Commitments and Contingencies (Details)			6 Months Ended
	Jul. 19, 2021 claim	Oct. 21, 2020 plaintiff	Jun. 30, 2023 claim
Other Commitments [Line Items]
Number of previous claims experienced			0
Case No. 3:20-cv-05991-SK
Other Commitments [Line Items]
Number of plaintiffs | plaintiff		9
Claims dismissed	2