Envestnet (ENV) 10-Q 9 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 01, 2015
Document and Entity Information
Entity Registrant Name	ENVESTNET, INC.
Entity Central Index Key	1,337,619
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		35,880,687
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 208,348	$ 209,754
Fees and other receivable, net	25,467	20,345
Deferred tax assets, net	4,635	4,654
Prepaid expenses and other current assets	20,714	7,242
Total current assets	259,164	241,995
Property and equipment, net	18,461	16,629
Internally developed software, net	8,891	7,023
Intangible assets, net	65,199	58,654
Goodwill	134,814	104,976
Deferred tax assets, net		565
Other non-current assets	11,128	9,516
Total assets	497,657	439,358
Current liabilities:
Accrued expenses	53,224	48,247
Accounts payable	5,236	4,869
Contingent consideration	3,057	6,405
Deferred revenue	8,320	5,159
Total current liabilities	69,837	64,680
Convertible notes	148,877	145,203
Contingent consideration	2,957	7,462
Deferred revenue	13,107	6,954
Deferred rent	4,405	3,588
Lease incentive	5,379	5,550
Deferred tax liabilities, net	718
Other non-current liabilities	2,002	2,430
Total liabilities	247,282	235,867
Redeemable units in ERS, LLC	2,400	1,500
Stockholders' equity:
Common stock, par value $0.005, 500,000,000 shares authorized; 47,780,564 and 46,345,376 shares issued as of September 30, 2015 and December 31, 2014, respectively; 35,854,291 and 34,544,653 shares outstanding as of September 30, 2015 and December 31, 2014, respectively	239	232
Additional paid-in capital	278,486	233,888
Accumulated deficit	(11,094)	(19,443)
Treasury stock at cost, 11,926,273 and 11,800,723 shares as of September 30, 2015 and December 31, 2014, respectively	(20,054)	(13,242)
Total stockholders' equity	247,577	201,435
Non-controlling interest	398	556
Total equity	247,975	201,991
Total liabilities and equity	$ 497,657	$ 439,358

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Condensed Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.005	$ 0.005
Preferred stock, shares authorized	50,000,000	50,000,000
Common stock, par value (in dollars per share)	$ 0.005	$ 0.005
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	47,780,564	46,345,376
Common stock, shares outstanding	35,854,291	34,544,653
Treasury stock, shares	11,926,273	11,800,723

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues:
Assets under management or administration	$ 85,576	$ 74,899	$ 250,472	$ 212,707
Licensing and professional services	17,791	13,678	52,012	39,238
Total revenues	103,367	88,577	302,484	251,945
Operating expenses:
Cost of revenues	41,027	39,111	122,208	111,503
Compensation and benefits	32,671	25,833	96,162	74,449
General and administration	15,184	13,428	44,905	38,514
Depreciation and amortization	6,157	4,253	17,215	13,290
Restructuring charges			518
Total operating expenses	95,039	82,625	281,008	237,756
Income from operations	8,328	5,952	21,476	14,189
Other income:
Other income (expense)	(2,347)	(11)	(6,801)	1,909
Income before income tax provision	5,981	5,941	14,675	16,098
Income tax provision	2,679	2,173	6,326	5,812
Net income	3,302	3,768	8,349	10,286
Add: Net loss attributable to non-controlling interest				195
Net income attributable to Envestnet, Inc.	$ 3,302	$ 3,768	$ 8,349	$ 10,481
Net income per share attributable to Envestnet, Inc.:
Basic (in dollars per share)	$ 0.09	$ 0.11	$ 0.23	$ 0.30
Diluted (in dollars per share)	$ 0.09	$ 0.10	$ 0.22	$ 0.28
Weighted average common shares outstanding:
Basic (in shares)	36,021,784	34,674,245	35,651,508	34,447,619
Diluted (in shares)	37,614,701	37,006,796	37,563,815	36,832,154

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Equity - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Deficit	Non-controlling Interest	Total
Balance at Dec. 31, 2014	$ 232	$ (13,242)	$ 233,888	$ (19,443)	$ 556	$ 201,991
Balance (in shares) at Dec. 31, 2014	46,345,376	(11,800,723)
Increase (decrease) in shareholders' equity
Exercise of stock options	$ 4		7,444			7,448
Exercise of stock options (in shares)	936,486
Issuance of common stock - vesting of restricted stock units	$ 2					2
Issuance of common stock units - vesting of restricted stock (in shares)	375,292
Acquisition of business	$ 1		8,929			8,930
Acquisition of business (in shares)	123,410
Stock-based compensation expense			10,157			10,157
Excess tax benefits from stock-based compensation expense			18,010			18,010
Purchase of treasury stock for stock-based minimum tax withholdings		$ (6,812)				(6,812)
Purchase of treasury stock for stock-based minimum tax withholdings (in shares)		(125,550)
Purchase of ERS units			58		(158)	(100)
Net income				8,349		8,349
Balance at Sep. 30, 2015	$ 239	$ (20,054)	$ 278,486	$ (11,094)	$ 398	$ 247,975
Balance (in shares) at Sep. 30, 2015	47,780,564	(11,926,273)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
OPERATING ACTIVITIES:
Net income	$ 8,349	$ 10,286
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	17,215	13,290
Deferred rent and lease incentive	628	173
Provision for doubtful accounts	31
Deferred income taxes	(264)
Stock-based compensation expense	10,157	8,443
Excess tax benefits from stock-based compensation	(18,010)	(5,086)
Interest expense	7,081
Accretion on contingent consideration	794	1,108
Fair market value adjustment on contingent consideration	(3,791)	(342)
Changes in operating assets and liabilities, net of acquisitions:
Fees and other receivables	(4,817)	(4,613)
Prepaid expenses and other current assets	4,534	3,966
Other non-current assets	(1,024)	(736)
Accrued expenses	(2,068)	3,212
Accounts payable	113	2,009
Deferred revenue	7,331	2,835
Other non-current liabilities	(428)	278
Net cash provided by operating activities	25,831	34,823
INVESTING ACTIVITIES:
Purchase of property and equipment	(6,852)	(5,249)
Capitalization of internally developed software	(3,782)	(2,562)
Investment in private company	(1,500)
Purchase of ERS, LLC units	(100)
Acquisition of businesses, net of cash acquired	(27,332)	(1,288)
Net cash used in investing activities	(39,566)	(9,099)
FINANCING ACTIVITIES:
Proceeds from bank indebtedness		30,000
Payments of contingent consideration	(7,219)	(6,000)
Payment of promissory note		(1,500)
Issuance of redeemable units in ERS, LLC	900	1,500
Proceeds from exercise of stock options	7,448	3,146
Excess tax benefits from stock-based compensation expense	18,010	5,086
Purchase of treasury stock for stock-based minimum tax withholdings	(6,812)	(1,999)
Issuance of restricted stock units	2
Net cash provided by financing activities	12,329	30,233
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(1,406)	55,957
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	209,754	49,942
CASH AND CASH EQUIVALENTS, END OF PERIOD	208,348	105,899
Supplemental disclosure of cash flow information- cash paid during the period for income taxes, net of refunds	937	154
Supplemental disclosure of cash flow information- cash paid during the period for interest	2,454
Supplemental disclosure of non-cash operating, investing and financing activities:
Non-cash consideration issued in a business acquisition	8,930
Purchase liabilities included in accrued expenses	3,520
Contingent consideration issued in a business acquisition	2,363	3,285
Leasehold improvements funded by lease incentive	330	2,865
Purchase of fixed assets included in accounts payable	$ 209
Settlement of contingent consideration liability upon issuance of ERS, LLC membership interest		$ 158

Organization and Description of

Organization and Description of Business	9 Months Ended
	Sep. 30, 2015
Organization and Description of Business
Organization and Description of Business	1. Organization and Description of Business Envestnet, Inc. (“Envestnet”) and its subsidiaries (collectively, the “Company”) provide open-architecture wealth management services and technology to independent financial advisors and financial institutions. These services and related technology are provided via Envestnet ’ s wealth management software, Envestnet | PMC ® , Envestnet | Tamarac™, Vantage Reporting Solution™, Envestnet | WMS™ and Envestnet | Placemark™. Envestnet ’ s wealth management software is a platform of integrated, internet-based technology applications and related services that provide portfolio diagnostics, proposal generation, investment model management, rebalancing and trading, portfolio performance reporting and monitoring solutions, billing, and back-office and middle-office operations and administration. The Company ’ s investment consulting group, Envestnet | PMC, provides investment manager due diligence and research, a full spectrum of investment offerings supported by both proprietary and third-party research and manager selection, and overlay portfolio management services. Envestnet | Tamarac provides leading portfolio accounting, rebalancing, trading, performance reporting and client relationship management software, principally to high-end registered investment advisers (“RIAs”). Vantage Reporting Solution software aggregates and manages investment data, provides performance reporting and benchmarking, giving advisors an in-depth view of clients ’ various investments, empowering advisors to give holistic, personalized advice. Envestnet | WMS offers financial institutions access to an integrated wealth platform, which helps construct and manage sophisticated portfolio solutions across an entire account life cycle, particularly in the area of unified managed account trading. Envestnet | WMS ’ s Overlay Portfolio Management console helps wealth managers efficiently build customized client portfolios that consider both proprietary and open-architecture investment solutions. Envestnet | Placemark develops unified managed account (“UMA”) programs and other portfolio management outsourcing solutions, including patented portfolio overlay and tax optimization services, for banks, full service broker-dealers and RIA firms. Through these platform and service offerings , the Company provides open-architecture support for a wide range of investment products (separately managed accounts, multi-manager accounts, mutual funds, exchange-traded funds, stock baskets, alternative investments, and other fee-based investment solutions) from Envestnet | PMC and other leading investment providers via multiple custodians, and also account administration and reporting services. Envestnet operates six RIAs and a registered broker-dealer. The RIAs are registered with the Securities and Exchange Commission (“SEC”). The broker-dealer is registered with the SEC, all 50 states and the District of Columbia and is a member of the Financial Industry Regulatory Authority (“FINRA”).

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Basis of Presentation
Basis of Presentation	2. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company as of September 30, 2015 and for the three and nine months ended September 30, 2015 and 2014 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, 2014 and reflect all normal recurring adjustments which are, in the opinion of management, necessary to present fairly the Company ’ s financial position as of September 30, 2015 and the results of operations, equity and cash flows for the periods presented herein. The unaudited condensed consolidated balance sheet as of December 31, 2014 was derived from the Company ’ s audited financial statements for the year ended December 31, 2014 but does not include all disclosures, including notes required by accounting principles generally accepted in the United States of America (“GAAP”). The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the operating results 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. 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, 2014, filed with the SEC on March 2, 2015. The preparation of these unaudited condensed consolidated financial statements requires management to make estimates and assumptions related to the reporting of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Significant areas requiring the use of management estimates relate to estimating uncollectible receivables, revenue recognition, costs capitalized for internally developed software, valuations and assumptions used for impairment testing of goodwill, intangible and other long-lived assets, fair value of stock and stock options issued, fair value of contingent consideration, realization of deferred tax assets, uncertain tax positions and assumptions used to allocate purchase prices in business combinations. Actual results could differ materially from these estimates under different assumptions or conditions. Recent Accounting Pronouncements - In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. The original effective date for ASU 2014-09 would have required the Company to adopt beginning in its first quarter of 2017. In July 2015, the FASB voted to amend ASU 2014-09 by approving a one-year deferral of the effective date as well as providing the option to early adopt the standard on the original effective date. Accordingly, the Company may adopt the standard in either its first quarter of 2017 or 2018. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the timing of its adoption and the impact of adopting the new revenue standard on its condensed consolidated financial statements.

Business Acquisitions

Business Acquisitions	9 Months Ended
	Sep. 30, 2015
Business Acquisitions
Business Acquisitions	3. Business Acquisitions Upside Holdings, Inc. On February 24, 2015, Envestnet, Inc. (the “Company”) acquired all of the stock of Upside Holdings, Inc. (including its subsidiaries “Upside”) for consideration totaling $2,641 . Upside is a technology company that is registered as an Internet Investment Adviser under Rule 203A-2(f) of the Investment Advisers Act of 1940 (“Advisers Act”). Upside helps financial advisors compete against other digital advisors, or “robo advisors,” by leveraging technology and algorithms to advise, manage, and serve clients who want personalized investment services. The Company acquired Upside to integrate its technology within the Company ’ s unified wealth management platform, which will allow advisors to compete more aggressively to engage their clients online and reach a new class of investors. The goodwill arising from the acquisition represents the advantage of this integrated technology, the expected synergistic benefits of the transaction and the knowledge and experience of the workforce in place. The goodwill is not deductible for income tax purposes. As a result of the acquisition of Upside, the Company provided for the future grant of unvested restricted stock unit awards to Upside employees at the end of each year in 2015, 2016 and 2017 upon Upside meeting certain performance conditions and then a subsequent two -y ear service condition (Note 1 2 ). If 100 percent of the awards are earned for 2015, 2016 and 2017, the maximum number of units that could be granted for 2015, 2016 and 2017 equals 22,064 , 44,128 and 66,192 units, respectively. Each unit represents the right to receive one share of common stock of the Company, subject to the terms and conditions of the award. The Company has determined the payments to be categorized as compensation expense. As of September 30, 2015, no amounts have been recognized as it is currently estimated that the performance targets will not be attained in 2015. The consideration transferred in the acquisition was as follows: Cash consideration $ Purchase liabilities Cash acquired Total $ The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Total tangible assets acquired $ Total liabilities assumed Identifiable intangible assets Goodwill Total net assets acquired $ The estimated useful life and amortization method of the intangible asset acquired is as follows: Weighted Average Amortization Amount Useful Life in Years Method Proprietary technology $ Straight-line The results of Upside ’ s operations are included in the condensed consolidated statement of operations beginning February 2 4, 2015, and are not material to the Company ’ s results of operations. For the three and nine months ended September 30, 2015, acquisition related costs for Upside totaled $3 and $221 and are included in general and administration expenses. Oltis Software LLC On May 6, 2015, the Company acquired all of the issued and outstanding membership interests of Oltis Software LLC (d/b/a Finance Logix ® ), an Arizona limited liabil ity company (“Finance Logix” ). Finance Logix provides financial planning and wealth management software solutions to banks, broker-dealers and RIAs. The Company paid upfront consideration of $20,595 in cash, purchase liabilities of $2,905 , 123,410 in shares of Envestnet common stock with a fair value of $6,388 and 123,410 stock options to acquire Envestnet common stock at $52.67 per share with an estimated fair value of $2,542 . The Company acquired Finance Logix to integrate its technology within the Company ’ s unified wealth management platform, which will allow advisors to offer financial planning that flows seamlessly into portfolio construction and ongoing management on a single p latform. Finance Logix allows the Company to deliver that capability and increase the breadth of our platform and the functionality gap between our platform and competing platforms. The goodwill arising from the acquisition represents cross-selling opportunities, the expected synergistic benefits of the transaction and the knowledge and experience of the workforce in place. The goodwill is deductible for income tax purposes. In connection with the acquisition of Finance Logix, the Company is required to pay the former owner of Finance Logix future payments in a mix of cash, stock and stock options, based on Finance Logix meeting annual net revenue targets of $5,000 , $10,000 and $16,000 for calendar years 2015, 2016 and 2017, respectively, with lower payments for performance below the three yearly targets and a higher payment in 2017 for performance above the target. The Company has preliminarily determined the first payment related to the 2015 target to be categorized as compensation expense and the payments, if any, related to 2016 and 2017 targets, to be categorized as contingent consideration. The Company did not record compensation expense as of Septe mber 30, 2015 and has not record ed a contingent consideration liability as payment is not expected to occur at this time. Changes to the estimated fair value of the contingent consideration, if any, will be recognized in earnings of the Company. As of September 30, 2015, the Company has not finalized the opening balance sheet (including taxes), contingent consideration, nor has the Company finalized its valuation of Finance Logix ’ s intangible assets and/or goodwill associated with the transaction as well as the fair value of acquired deferred revenue. The Company expects to finalize the valuation of the intangible assets and deferred revenue, and complete the acquisition accounting as soon as practicable but no later than March 31, 2016. The preliminary estimated consideration transferred in the acquisition was as follows: Cash consideration $ Stock and stock option consideration Purchase liabilities Cash acquired Total $ The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Total tangible assets acquired $ Total liabilities assumed Identifiable intangible assets Goodwill Total net assets acquired $ A summary of intangible assets acquired, estimated useful lives and amortization method is as follows: Weighted Average Amortization Amount Useful Life in Years Method Customer list $ Accelerated Proprietary technology Straight-line Total $ The results of Finance Logix ’ s operations are included in the condensed consolidated statement of operations beginning May 6, 2015. Finance Logix ’ s revenues for the three and nine month periods ended September 30, 2015 totaled $584 and $1,057 , respectively. Finance Logix’s net loss for the three and nine month periods ended September 30, 2015 totaled $479 and $808 , respectively. The net loss for the three and nine month period ended September 30, 2015 includes estimated acquired intangible asset amortization of $376 and $626 , respectively . For the three and nine months ended September 30, 2015, acquisition related costs for Finance Logix totaled $40 and $415 , respectively, and are included in general and administration expenses. The Company may incur additional acquisitio n related costs during the fourth quarter of 2015. Castle Rock Innovations, Inc. On August 30 , 2015, the Company acquired all of the outstanding shares of capital stock of Castle Rock Innovations, Inc., a Delaware corporation (“Castle Rock”) . Castle Rock provides data aggregation and plan benchmark solutions to retirement plan record-keepers, broker-dealers, and advisors. The Company acquired Castle Rock with plans to combine the Castle Rock offering into E nvestnet R etirement S olutions, LLC (“ERS”) . Castle Rock ’ s AXIS Retirement Plan Analytics Platform enables retirement plan fiduciaries to comply with 408(b)(2) and 404a-5 regulatory fee disclosure reporting requirements. The AXIS platform offers a single web-based interface and data repository to service the reporting needs of all types of retirement plans, and can be integrated with all record-keeping systems. AXIS also includes features for editing and generating reports for filings, reporting plan expenses, and comparing retirement plans and participants to those of their peers by industry, company size, and other characteristics. The goodwill arising from the acquisition represen ts the expected synergistic benefits of the transaction and the knowledge and experience of the workforce in place. The goodwill is not deductible for income tax purposes. The preliminary estimated consideration transferred in the acquisition was as follows: Cash consideration $ Contingent consideration liability Cash acquired Total $ In connec tion with the acquisition of Castle Rock , the Company is required to pay contingent consideration of 45% of the first annual post-closing period revenues minus $100 , 35% of the second annual post-closing period revenue minus $100 and 30% of the third annual post-closing period revenue minus $100 . The Company recorded a preliminary estimated liability as of th e date of acquisition of $2,363 , which represented the estimated fair value of contingent consideration on the date of acquisition and is considered a Level 3 fair value measurement as described in Note 8. The preliminary estimated fair value of contingent consid eration as of September 30, 2015 was $2,363 . This amount is the present value of an u ndiscounted liability of $2,850 , applying a discount rate of 10% . The first, second and third undiscounted payme nts are anticipated to be $941 on September 30, 2016, $981 on September 30, 2017 and $928 on September 30, 2018 . Changes to the estimated fair value of the contingent consideration, if any, will be recognized in earnings of the Company. As of September 30, 2015, the Company has not finalized the opening balance sheet (including taxes), contingent consideration, nor has the Company finalize d its valuation of Castle Rock’ s intangible assets and/or goodwill associated with the transaction as well as the fair value of acquired deferred revenue. The Company expects to finalize the valuation of the intangible assets and deferred revenue, and complete the acquisition accounting as soon as practicable but no later than March 31, 2016. The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Total tangible assets acquired $ Total liabilities assumed Identifiable intangible assets Goodwill Total net assets acquired $ A summary of intangible assets acquired, estimated useful lives and amortization method is as follows: Weighted Average Amortization Amount Useful Life in Years Method Customer list $ Accelerated Proprietary technology Straight-line Trade names and domains Straight-line Total $ The results of Castle Rock’ s operations are included in the condensed consolidated stateme nt of operations beginning September 1, 2015. Castle Rock’ s revenues and net loss for the three and nine month periods ended September 30, 2015 totaled $223 and $59 , respectively . The net loss includes estimated acquired intangible asset amortization of $67 . For the three and nine months ended September 30, 2015, acquisition related costs for Castle Rock totaled $47 and $161 , respectively , and are included in general and administration expenses. The Company may incur additional acquisitio n related costs during the fourth quarter of 2015. On Septem ber 1, 2015, ERS accepted the subscription of certain former owners of Castle Rock (the “Castle Rock Parties”) to purchase a 6.5% ownership interest of ERS, LLC for $900 . The Castle Rock Parties ha ve the right to require ERS to repurchase units issued pursuant to the subscription in approximately 36 months after September 1, 2015 for the amount of $900 . This purchase obligation is guaranteed by the Company and is reflected outside of permanent equity in the condensed consolidated balance sheet . Subsequent to the subscription of the Castle Rock Parties, the Company’s ownership interest in ERS is 52.8% . Y odlee, Inc. On August 10, 2015, the Company entered into an agreement and plan of merger (the “Merger Agreement”) with Yodlee, Inc., a Delaware corporation (“Yodlee”) and Yale Merger Corp., a Delaware corporation and a wholly owned subsidiary of the Company (“Merger Sub”). Pursuant to the Merger Agreement, Merger Sub will merge with and into Yodlee, with Yodlee continuing as the surviving corporation (the “Merger”) and a wholly owned indirect subsidiary of the Company. Yodlee is a leading cloud-based platform driving digital financial innovation. Yodlee powers digital financial solutions for over 20 million paid subscribers and over 850 financial institutions and financial technology innovators. Founded in 1999, the company has built a network of over 14,000 data sources and been awarded 72 patents. The merger consideration per share of Yodlee common stock consists of (i) $10.78 per share in cash (the “per share cash consideration”) and (i) a number of shares of Company common stock determined by dividing $8.10 by the volume weighted average (the “Company stock value”) price per share of Company common stock for the 10 consecutive trading days ending on (and including) the second trading day immediately prior to completion of the Merger, subject to a collar of $39.006 to $47.674 per share (the “per share stock consideration”). In the event that the aggregate number of shares of Company common stock issuable pursuant to the Merger Agreement (the "total stock amount"), would be equal to or greater than 19.9% of the shares of Company common stock outstanding as of immediately prior to the effective time of the Merger (such amount, the "stock threshold"), the per share stock consideration will be decreased to the minimum extent necessary, such that the total stock amount will not exceed the stock threshold. In that event, the per share cash consideration will be increased by an amount equal to the product of (A) the amount of such reduction in the per share stock consideration pursuant to the preceding sentence multiplied by (B) the Company stock value; provided that (i) the aggregate per share cash consideration will in no event be increased by greater than $32,000 and (ii) the total stock amount will in no event exceed the stock threshold. The Company expects to fund the cash portion of the merger consideration with available balance sheet cash and up to $200,000 in committed debt financing. The Merger Agreement contains certain termination rights, including, among others, the right of either party to terminate the Merger Agreement if the Merger does not occur by February 15, 2016 and the right of the Company to terminate the Merger Agreement due to the withdrawal or adverse change of the recommendation by the Yodlee Board of Directors. If the Merger Agreement is terminated by the Company , in certain circumstances described in the Merger Agreement, a termination fee equal to approximately $18,000 will b e payable by Yodlee to the Company . In connection with the definitive agreement, funds affiliated with Warburg Pincus, which collectively own approximately 26.5 percent of Yodlee ’ s common stock, have entered into a voting agreement pursuant to which it has committed to support the transaction. The transaction is expected to clo se in the fourth quarter of 2015 , subject to approval by Yodlee stockholders at a special meeting on November 19, 2015, and customary closing conditions . The Company and Yodlee will continue to operate separately until the transaction closes. See “Part II – Item 1A – Legal Proceedings.” Pro forma results for Envestnet, Inc. giving effect to the Placemark , Finance Logix and Castle Rock acquisitions The following pro forma financial information presents the combined results of operations of Envestnet and Castle Rock for the three month period ended September 30, 2015, Envestnet, Finance Logix and Castle Rock for the nine month period ended September 30, 2015 and Envestnet, Placemark, Finance Logix, and Castle Rock for the three and nine months ended September 30, 2014. The pro forma financial information presents the results as if the acquisitions had occurred as of the beginning of 2014. The results of Upside are not included in the pro forma financial information presented below as the Upside acquisition was not considered material to the Company ’ s results of operations. The unaudited pro forma results presented include amortization charges for acquired intangible assets, stock-based compensation expense and the related tax effect on the aforementioned items. Pro forma financial information is presented for informational purposes and is not indicative of the results of operations that would have been achieved if the acquisition s had taken place as of the beginning of 2014. Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Revenues $ $ $ $ Net income Net income per share: Basic Diluted

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2015
Property and Equipment
Property and Equipment	4. Property and Equipment September 30, December 31, Estimated Useful Life 2015 2014 Cost: Office furniture and fixtures years $ $ Computer equipment and software years Other office equipment years Leasehold improvements Shorter of the lease term or useful life of the asset Less accumulated depreciation and amortization Property and equipment, net $ $ During the nine months ended September 30, 2015, the Company retired fully depreciated property and equipment that were no longer in service with cost and accumulated depreciation amounts of $564 . Depreciation and amortization expense was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Depreciation and amortization expense $ $ $ $

Internally Developed Software

Internally Developed Software	9 Months Ended
	Sep. 30, 2015
Internally Developed Software
Internally Developed Software	5. Internally Developed Software Internally developed software consists of the following: September 30, December 31, Estimated Useful Life 2015 2014 Internally developed software years $ $ Less accumulated amortization Internally developed software, net $ $ Amortization expense was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Amortization expense $ $ $ $

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets
Goodwill and Intangible Assets	6. Goodwill and Intangible Assets Changes in the carrying amount of goodwill were as follows: Balance at December 31, 2014 $ Upside acquisition Finance Logix acquisition Castle Rock acquisition Balance at September 30, 2015 $ Intangible assets consist of the following: September 30, 2015 December 31, 2014 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Useful Life Amount Amortization Amount Amount Amortization Amount Customer lists - years $ $ $ $ $ $ Proprietary technologies - years Trade names - years Total intangible assets $ $ $ $ $ $ Amortization expense was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Amortization expense $ $ $ $

Other Non-Current Assets

Other Non-Current Assets	9 Months Ended
	Sep. 30, 2015
Other Non-Current Assets.
Other Non-Current Assets	7. Other Non-Current Assets Other non-current assets consist of the following: September 30, December 31, 2015 2014 Investment in private companies $ $ Deposits: Lease Other Unamortized convertible debt issuance costs Other $ $ On April 1, 2015, the Company purchased 150,000 Class B units representing 10.3% of the outstanding membership interests of AlphaHedge Capital Partners, LLC, (“AlphaHedge”) a Delaware limited liability company for cash consideration of $1,500 which is included in investments in private companies. The Company’s interest in the net assets of AlphaHedge is reflected in other non-current assets on the condensed consolidated balance sheet and its interest in the earnings of AlphaHedge is reflected in other income on the condensed consolidated statement of operations. AlphaHedge is a liquid alternatives platform providing access to strategies from a select group of long/short equity managers in a custodian agnostic, separately managed account format. The Company uses the equity method of accounting to record its portion of the AlphaHedge net income or loss on a one quarter lag from AlphaHedge’s actual results of operations. The Company uses the equity method of accounting because of its less than 50 percent ownership. The Company’s proportionate share in the loss of AlphaHedge was $40 during the three and nine months ended September 30, 2015.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2015
Fair Value Measurements
Fair Value Measurements	8. Fair Value Measurements The Company follows ASC 825-10, Financial Instruments , which provides companies the option to report selected financial assets and liabilities at fair value. ASC 825-10 also establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities and to more easily understand the effect of the company ’ s choice to use fair value on its earnings. ASC 825-10 also requires entities to display the fair value of the selected assets and liabilities on the face of the balance sheet. The Company has not elected the ASC 825-10 option to report selected financial assets and liabilities at fair value. Financial assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon a fair value hierarchy established by GAAP, which prioritizes the inputs used to measure fair value into the following levels: Level 1: Inputs based on quoted market prices in active markets for identical assets or liabilities at the measurement date. Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or inputs that are observable and can be corroborated by observable market data. Level 3: Inputs reflect management ’ s best estimates and assumptions of what market participants would use in pricing the asset or liability at the measurement date. The inputs are unobservable in the market and significant to the valuation of the instruments. Fair Value on a Recurring Basis: The Company periodically invests excess cash in money-market funds not insured by the FDIC. The Company believes that the investments in money market funds are on deposit with creditworthy financial institutions and that the funds are highly liquid. The fair values of the Company ’ s investments in money-market funds are based on the daily quoted market prices for the net asset value of the various money market funds. These money-market funds totaled approximately $ 92,748 and $70,760 as of September 30, 2015 and December 31, 2014, respectively, and are included in cash and cash equivalents in the condensed consolidated balance sheets. The fair value of the contingent consideratio n liabilities related to the WMS acquisition on July 1, 2013 , the Klein acquisition on July 1, 2014 and the Castle Rock acquisition on August 31, 2015 were estimated using a discounted cash flow method with significant inputs that are not observable in the market and thus represents a Level 3 fair value measurement as defined in ASC 820, Fair Value Measurements and Disclosures . The significant inputs in the Level 3 measurement not supported by market activity included our assessments of expected future cash flows related to our acquisition s of WMS , Klein, and Castle Rock during the subsequent three years from the date of acquisition, appropriately discounted considering the uncertainties associated with the obligation, and calculated in accordance with the terms of the agreement. The Company utilized a discounted cash flow method with expected future performance of WMS , Klein and Castle Rock , and their ability to meet the target performance objectives as the main driver of the valuation, to arrive at the fair value s of the ir respective contingent consideration. The Company will continue to reassess the fair value of the contingent consideration for each acquisition at each reporting date until settlement. Changes to the estimated fair value s of the contingent consideration will be recognized in earnings of the Company and included in general and administrative expense on the condensed consolidated statement of operations. The table below sets forth a summary of changes in the fair value of the Company ’ s Level 3 liability for the nine months ended September 30, 2015: Fair Value of Contingent Consideration Liabilities Balance at December 31, 2014 $ Settlement of contingent consideration liabilities Castle Rock acquisition Fair market value adjustments Accretion on contingent consideration Balance at September 30, 2015 $ 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 change in circumstances that 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 1, 2 and 3 during the quarter. Following are the carrying and fair value of the Company ’ s debt obligation as of September 30, 2015. The fair value of the Convertible Notes was calculated using observable market data and is considered a Level 1 liability. September 30, 2015 Carrying Value Fair Value 2019 Convertible Notes (principal amount outstanding of $172,500) $ 148,877 $ 152,663 (1) Represents the aggregate principal amount outstanding of the Convertible Notes less the unaccreted discount.

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2015
Accrued Expenses
Accrued Expenses	9. Accrued Expenses Accrued expenses consist of the following: September 30, December 31, 2015 2014 Accrued investment manager fees $ $ Accrued compensation and related taxes Accrued professional services Acquisition purchase liabilities — Estimated accrued software license fees — Accrued restructuring charges — Other accrued expenses $ $ Acquisition related purchase liabilities represent future payments to former Upside and Finance Logix owners of $615 and $2,905 , respectively, related to indemnity holdback amounts as of September 30, 2015. During the second quarter of 2015, the Company closed its Wellesley office in order to more appropriately align and manage the Company ’s resources. In the nine months ended September 30, 2015, the Company recognized pre-tax restructuring charges of $518 , primarily for future lease payments.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Taxes
Income Taxes	10. Income Taxes The following table includes the Company ’ s income before income tax provision, income tax provision and effective tax rate: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Income before income tax provision $ $ $ $ Income tax provision Effective tax rate % % % % The Company ’ s effective tax rate in the three months ended September 30, 2015, was higher than the effective tax rate in the three months ended September 30, 2014, primarily due to a valuation allowance against certain losses, an increase in permanent items related to transaction costs and meals and entertainment . The Company ’ s effective tax rate in the nine months ended September 30, 2015, was higher than the effective tax rate in the nine months ended September 30, 2014, primarily due to the increase in tax rate for federal purposes from 34% to 35% , an increase in the blended state tax rate, the true-up on India unremitted earnings that was recorded in the nine months ended September 30, 2014 and not in the same period in 2015, the release of certain uncertain tax position reserves in the nine months ended September 30, 2014 that were not repeated in the same period in 2015 and non-recognition of a loss from a subsidiary due to a full valuation allowance. The liability for unrecognized tax benefits reported in other non-current liabilities was $2,000 and $2,092 at September 30, 2015 and December 31, 2014, respectively. At September 30, 2015, the amount of unrecognized tax benefits that would benefit the Company ’ s effective tax rate, if recognized, was $1,884 . At this time, the Company estimates it is reasonably possible that the liability for unrecognized tax benefits will decrease by as much as $1,676 in the next twelve months due to the completion of reviews by tax authorities and the expiration of certain statutes of limitations. The Company recognizes potential interest and penalties related to unrecognized tax benefits in income tax expense. The Company had accrued interest and penalties of $452 and $594 as of September 30, 2015 and December 31, 2014, respectively. The Company files a consolidated federal income tax return and separate tax returns with various states. Additionally, foreign subsidiaries of the Company file tax returns in foreign jurisdictions. The Company ’ s tax returns for the calendar years ended December 31, 201 4 , 201 3 , and 201 2 remain open to examination by the Internal Revenue Service in their entirety. With respect to state taxing jurisdictions, the Company ’ s tax returns for calendar years ended December 31, 201 4 , 201 3 , 201 2 , 201 1 and 20 10 remain open to examination by various state revenue services. The Company ’ s Indian subsidiary is currently under examination by the India Tax Authority for the fiscal year ended March 31, 2011 and 2012. It is possible that one or more of these audits may be finalized within the next twelve months. Included in income tax receivable which is included in prepaid expenses and other current assets on the condensed consolidated balance sheet as of September 30, 2015, is $18,010 related to excess tax benefits from stock-based compensation.

Debt

Debt	9 Months Ended
	Sep. 30, 2015
Debt
Debt	11. Debt The Company ’ s outstanding debt obligations was as follows: September 30, December 31, 2015 2014 Convertible Notes $ $ Unaccreted discount on Convertible Notes $ $ Credit Agreement In 2014, the Company and certain of its subsidiaries entered into a credit agreement (the “Credit Agreement”) with a group of banks (the “Banks”), for which Bank of Montreal is acting as administrative agent, pursuant to which the Banks agreed to provide an unsecured revolving credit facility of $100,000 with a sublimit for the issuance of letters of credit of $5,000 . Subject to certain conditions, the Company has the right to increase the facility by up to $25,000 . The Credit Agreement is scheduled to mature on December 8, 2017, at which time any aggregate principal amount of borrowings outstanding would become payable in full. Any borrowings made under the Credit Agreement accrued interest at rates between 1.50 percent and 3.25 percent above LIBOR based on the Company ’ s total leverage ratio. There is also a commitment fee equal to 0.25 percent per annum on the daily unused portion of the facility. Borrowings under the Credit Agreement will be guaranteed by substantially all of the Company ’ s U.S. subsidiaries. Proceeds under the Credit Agreement may be used to finance capital expenditures, to finance working capital, to finance permitted acquisitions and for general corporate purposes. The Credit Agreement contains customary conditions, representations and warranties, affirmative and negative covenants and events of default. The covenants include certain financial covenants requiring the Company to maintain compliance with a maximum senior leverage ratio, a maximum total leverage ratio, a minimum interest coverage ratio and minimum adjusted EBITDA, and provisions that limit the ability of the Company and its subsidiaries to incur debt, make investments, sell assets, create liens, engage in transactions with affiliates, engage in mergers and acquisitions, pay dividends and other restricted payments, grant negative pledges and change their business activities. As of September 30, 2015, there were no amounts outstanding under the Credit Agreement. The Company was in compliance with all covenants of the Credit Agreement as of September 30, 2015. Convertible Notes On December 15, 2014, the Company issued $172,500 of Convertible Notes. Net proceeds from the offering were $166,967 . The Convertible Notes bear interest at a rate of 1.75 percent per annum payable semiannually in arrears on June 15 and December 15 of each year. The first coupon payment was made on June 15, 2015. The Convertible Notes are general unsecured obligations, subordinated in right of payment to our obligations under our Credit Agreement. The Convertible Notes rank equally in right of payment with all of the Company ’ s existing and future senior indebtedness and will be senior in right of payment to any of the Company ’ s future subordinated indebtedness. The Convertible Notes will be structurally subordinated to the indebtedness and other liabilities of any of our subsidiaries, other than to the extent the Convertible Notes are guaranteed in the future by our subsidiaries as described in the indenture and will be effectively subordinated to and future secured indebtedness to the extent of the value of the assets securing such indebtedness. Certain of our subsidiaries guarantee our obligations under our Credit Agreement. Upon the occurrence of a “fundamental change”, as defined in the indenture, the holders may require the Company to repurchase all or a portion of the Convertible Notes for cash at 100% of the principal amount of the Convertible Notes being purchased, plus any accrued and unpaid interest. The Convertible Notes are convertible into shares of the Company ’ s common stock under certain circumstances prior to maturity at a conversion rate of 15.9022 shares per $1 principal amount of the Convertible Notes, which represents a conversion price of $62.88 per share, subject to adjustment under certain conditions. Holders may convert their Convertible Notes at their option at any time prior to the close of business on the business day immediately preceding July 1, 2019, only under the following circumstances: (a) during any calendar quarter commencing after the calendar quarter ending on March 31, 2015 (and only during such calendar quarter), if the last reported sale price of our common stock, for at least 20 trading days (whether or not consecutive) in the period of 30 consecutive trading days ending on the last trading day of the calendar quarter immediately preceding the calendar quarter in which the conversion occurs, is more than 130% of the conversion price of the Convertible Notes in effect on each applicable trading day; (b) during the five consecutive business-day period following any five consecutive trading-day period in which the trading price for the Convertible Notes for each such trading day was less than 98% of the last reported sale price of our common stock on such date multiplied by the then-current conversion rate; or (c) upon the occurrence of specified corporate events as defined in the indenture. Upon conversion, the Company may pay cash, shares of the Company ’ s common stock or a combination of cash and stock, as determined by the Company in its discretion. The Company has separately accounted for the liability and equity components of the Convertible Notes by allocating the proceeds from issuance of the Convertible Notes between the liability component and the embedded conversion option, or equity component. This allocation was done by first estimating an interest rate at the time of issuance for similar notes that do not include the embedded conversion option. The Company allocated $26,618 to the equity component, net of offering costs of $882 . The Company recorded a discount on the Convertible Notes of $27,500 which will be accreted and recorded as additional interest expense over the life of the Convertible Notes. During the three and nine-month periods ended September 30, 2015, the Company recognized $ 1,258 and $ 3,682 , respectively, in accretion related to the discount. The effective interest rate of the liability component of the Convertible Notes is equal to the stated interest rate plus the accretion of original issue discount. The effective interest rate on the liability component of the Convertible Notes for the nine-month period ended September 30, 2015 was 6.0% . In connection with the issuance of the Convertible Notes, the Company incurred $4,651 of issuance costs, which are recorded in other non-current assets (see Note 7). These costs are being amortized and are recorded as additional interest expense over the life of the Convertible Notes. Interest expense was comprised of the following: Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Coupon interest $ $ Amortization of issuance costs Accretion of debt discount Undrawn fees on Credit Agreement $ $ See Note 13 for further discussion of the effect of conversion on net income per common share.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2015
Stock-Based Compensation
Stock-Based Compensation	12. Stock-Based Compensation The Company has stock options and restricted stock units outstanding under the 2004 Stock Incentive Plan (the “2004 Plan”), the 2010 Long-Term Incentive Plan (the “2010 Plan”) and the Envestnet, Inc. Management Incentive Plan for Envestnet | Tamarac Management Employees (the “2012 Plan”). On May 13, 2015, the shareholders approved the 2010 Long-Term Incentive Plan as Amended. The amendment increased the number of common shares of the Company reserved for delivery under the 2010 Plan by 2,700,000 shares. As of September 30, 2015, the maximum number of common shares of the Company available for future issuance under the Company ’ s plans is 3,025,081 . Employee stock-based compensation expense under the Company ’ s plans was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Employee stock-based compensation expense $ $ $ $ Tax effect on employee stock-based compensation expense Net effect on income $ $ $ $ Stock Options The following weighted average assumptions were used to value options granted during the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Grant date fair value of options — $ $ $ Volatility — % % % Risk-free interest rate — % % % Dividend yield — — % — % — % Expected term (in years) — The following table summarizes option activity under the Company ’ s plans: Weighted-Average Weighted- Remaining Average Contractual Life Aggregate Options Exercise Price (Years) Intrinsic Value Outstanding as of December 31, 2014 $ $ Granted Exercised Forfeited Outstanding as of March 31, 2015 Granted Exercised Forfeited Outstanding as of June 30, 2015 Granted — — Exercised Forfeited Outstanding as of September 30, 2015 Options exercisable Exercise prices of stock options outstanding as of September 30, 2015 range from $0.11 to $55.29 . At September 30, 2015, there was $4,208 of unrecognized stock-based compensation expense related to unvested stock options, which the Company expects to recognize over a weighted-average period of 2.1 years. Restricted Stock Units Periodically, the Company grants restricted stock unit awards to employees that vest one -third on each of the first three anniversaries of the grant date. The following is a summary of the activity for unvested restricted stock unit awards granted under the Company ’ s plans: Weighted- Average Grant Number of Date Fair Value Shares per Share Outstanding as of December 31, 2014 $ Granted Vested Expired/cancelled — — Forfeited Outstanding as of March 31, 2015 Granted — — Vested — — Forfeited Outstanding as of June 30, 2015 Granted Vested Forfeited Outstanding as of September 30, 2015 At September 30, 2015, there was $17,012 of unrecognized stock-based compensation expense related to unvested restricted stock unit awards, which the Company expects to recognize over a weighted-average period of 2.0 years. At September 30, 2015, there was an additional $1,146 of potential unrecognized stock-based compensation expense related to unvested restricted stock unit awards granted under the 2012 Plan that vests based upon Tamarac meeting certain performance conditions and then a subsequent two -year service condition, which the Company expects to recognize over the remaining estimated vesting period of 1.5 years.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share
Earnings Per Share	13. Earnings Per Share Basic net income per common share is computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding for the period. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of stock options, common warrants, restricted stock units and Convertible Notes using the treasury stock method. The Company accounts for the effect of the Convertible Notes on diluted net income per share using the treasury stock method since they may be settled in cash, shares or a combination thereof at the Company ’ s option. As a result, the Convertible Notes have no effect on diluted net income per share until the Company ’ s stock price exceeds the conversion price of $62.88 per share. In the period of conversion, the Convertible Notes will have no impact on diluted net income if the Convertible Notes are settled in cash and will have an impact on dilutive net income per share if the Convertible Notes are settled in shares upon conversion. The following table provides a reconciliation of the numerators and denominators used in computing basic and diluted net income per share attributable to Envestnet, Inc.: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Net income attributable to Envestnet, Inc $ $ $ $ Basic number of weighted-average shares outstanding Effect of dilutive shares: Options to purchase common stock Unvested restricted stock units Diluted number of weighted-average shares outstanding Net income per share attributable to Envestnet, Inc: Basic $ $ $ $ Diluted $ $ $ $ Common share equivalents for securities that were anti-dilutive or otherwise excluded from the computation of diluted net income per share attributable to Envestnet, Inc. were as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Options to purchase common stock — Unvested restricted stock units Ungranted unvested restricted stock units related to Upside — — Convertible debt — — Total

Major Customers

Major Customers	9 Months Ended
	Sep. 30, 2015
Major Customers
Major Customers	14. Major Customers One customer accounted for more than 10% of the Company ’ s total revenues: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Fidelity % % % %

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies
Commitments and Contingencies	15. Commitments and Contingencies Yodlee, each of the members of the Yodlee Board, the Company and Merger Sub have been named as defendants in two putative class actions challenging the merger in the Court of Chancery of the State of Delaware. The suits are captioned Suman Inala v. Yodlee, Inc., et al. (Case No. 11461) (filed September 2, 2015 and amended on October 14, 2015) and Guillaume Wieland-Paquet v. Yodlee, Inc., et al. (Case No. 11611) (filed October 14, 2015). The complaints allege, among other things, that the Yodlee Board breached its fiduciary duties by agreeing to sell Yodlee through a conflicted process and by failing to ensure that Yodlee stockholders received adequate and fair value for their shares. The complaints also now allege that the Form S-4 Registration Statement filed by Envestnet, which contained Yodlee’s proxy statement, failed to disclose material information to Yodlee’s stockholder. The complaints also allege that the Company and Merger Sub have aided and abetted these breaches of fiduciary duties. The plaintiffs seek as relief, among other things, an injunction against the merger, rescission of the merger agreement to the extent it is already implemented, an award of damages and attorneys’ fees. The Company believes the lawsuits are without merit. The Company is involved in litigation arising in the ordinary course of its business. The Company does not believe that the outcome of any of the current litigation, individually or in the aggregate, would, if determined adversely to it, have a material adverse effect on the Company ’ s results of operations, financial condition, cash flows or business. 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 in the condensed consolidated balance sheets. The Company rents office space under leases that expire at various dates through 2026. Future minimum lease commitments under these operating leases, as of September 30, 2015, were as follows: Years ending December 31: 2015 $ 2016 2017 2018 2019 Thereafter Total $

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2015
Basis of Presentation
Recent Accounting Pronouncements	Recent Accounting Pronouncements - In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. The original effective date for ASU 2014-09 would have required the Company to adopt beginning in its first quarter of 2017. In July 2015, the FASB voted to amend ASU 2014-09 by approving a one-year deferral of the effective date as well as providing the option to early adopt the standard on the original effective date. Accordingly, the Company may adopt the standard in either its first quarter of 2017 or 2018. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company is currently evaluating the timing of its adoption and the impact of adopting the new revenue standard on its condensed consolidated financial statements.

Business Acquisitions (Tables)

Business Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2015
Upside Holdings, Inc.
Business acquisitions
Summary of consideration in the acquisition	Cash consideration $ Purchase liabilities Cash acquired Total $
Summary of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition	Total tangible assets acquired $ Total liabilities assumed Identifiable intangible assets Goodwill Total net assets acquired $
Summary of intangible assets acquired, estimated useful lives and amortization method	Weighted Average Amortization Amount Useful Life in Years Method Proprietary technology $ Straight-line
Finance Logix’s
Business acquisitions
Summary of consideration in the acquisition	Cash consideration $ Stock and stock option consideration Purchase liabilities Cash acquired Total $
Summary of the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition	Total tangible assets acquired $ Total liabilities assumed Identifiable intangible assets Goodwill Total net assets acquired $
Summary of intangible assets acquired, estimated useful lives and amortization method	Weighted Average Amortization Amount Useful Life in Years Method Customer list $ Accelerated Proprietary technology Straight-line Total $
Schedule of pro forma financial information	Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Revenues $ $ $ $ Net income Net income per share: Basic Diluted

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2015
Property and Equipment
Schedule of components of property and equipment	September 30, December 31, Estimated Useful Life 2015 2014 Cost: Office furniture and fixtures years $ $ Computer equipment and software years Other office equipment years Leasehold improvements Shorter of the lease term or useful life of the asset Less accumulated depreciation and amortization Property and equipment, net $ $
Schedule of depreciation and amortization expense	Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Depreciation and amortization expense $ $ $ $

Internally Developed Software (

Internally Developed Software (Tables)	9 Months Ended
	Sep. 30, 2015
Internally Developed Software
Schedule of components of internally developed software	September 30, December 31, Estimated Useful Life 2015 2014 Internally developed software years $ $ Less accumulated amortization Internally developed software, net $ $
Schedule of amortization expense	Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Amortization expense $ $ $ $

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets
Schedule of changes in the carrying amount of the Company's goodwill	Balance at December 31, 2014 $ Upside acquisition Finance Logix acquisition Castle Rock acquisition Balance at September 30, 2015 $
Schedule of components of intangible assets	September 30, 2015 December 31, 2014 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Useful Life Amount Amortization Amount Amount Amortization Amount Customer lists - years $ $ $ $ $ $ Proprietary technologies - years Trade names - years Total intangible assets $ $ $ $ $ $
Schedule of amortization expense	Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Amortization expense $ $ $ $

Other Non-Current Assets (Table

Other Non-Current Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Other Non-Current Assets.
Schedule of components of other non-current assets	September 30, December 31, 2015 2014 Investment in private companies $ $ Deposits: Lease Other Unamortized convertible debt issuance costs Other $ $

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Measurements
Summary of changes in the fair value of the Company's Level 3 liability	Fair Value of Contingent Consideration Liabilities Balance at December 31, 2014 $ Settlement of contingent consideration liabilities Castle Rock acquisition Fair market value adjustments Accretion on contingent consideration Balance at September 30, 2015 $
Schedule of carrying and fair value of the Company's debt obligations	September 30, 2015 Carrying Value Fair Value 2019 Convertible Notes (principal amount outstanding of $172,500) $ 148,877 $ 152,663 (1) Represents the aggregate principal amount outstanding of the Convertible Notes less the unaccreted discount.

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2015
Accrued Expenses
Schedule of components of accrued expenses	September 30, December 31, 2015 2014 Accrued investment manager fees $ $ Accrued compensation and related taxes Accrued professional services Acquisition purchase liabilities — Estimated accrued software license fees — Accrued restructuring charges — Other accrued expenses $ $

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2015
Income Taxes
Schedule of income before income tax provision, income tax provision and the effective tax rate for the Company's income from operations	Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Income before income tax provision $ $ $ $ Income tax provision Effective tax rate % % % %

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2015
Debt
Schedule of outstanding debt obligations	September 30, December 31, 2015 2014 Convertible Notes $ $ Unaccreted discount on Convertible Notes $ $
Schedule of interest expense on convertible debt	Three Months Ended Nine Months Ended September 30, 2015 September 30, 2015 Coupon interest $ $ Amortization of issuance costs Accretion of debt discount Undrawn fees on Credit Agreement $ $

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Stock-Based Compensation
Schedule of employee stock-based compensation expense	Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Employee stock-based compensation expense $ $ $ $ Tax effect on employee stock-based compensation expense Net effect on income $ $ $ $
Schedule of weighted average assumptions used to value options granted	Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Grant date fair value of options — $ $ $ Volatility — % % % Risk-free interest rate — % % % Dividend yield — — % — % — % Expected term (in years) —
Summary of option activity under the Company's plans	Weighted-Average Weighted- Remaining Average Contractual Life Aggregate Options Exercise Price (Years) Intrinsic Value Outstanding as of December 31, 2014 $ $ Granted Exercised Forfeited Outstanding as of March 31, 2015 Granted Exercised Forfeited Outstanding as of June 30, 2015 Granted — — Exercised Forfeited Outstanding as of September 30, 2015 Options exercisable
Summary of the activity for unvested restricted stock awards granted under the Company's plans	Weighted- Average Grant Number of Date Fair Value Shares per Share Outstanding as of December 31, 2014 $ Granted Vested Expired/cancelled — — Forfeited Outstanding as of March 31, 2015 Granted — — Vested — — Forfeited Outstanding as of June 30, 2015 Granted Vested Forfeited Outstanding as of September 30, 2015

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share
Schedule of reconciliation of the numerators and denominators used in computing basic and diluted net income per share attributable to common stockholders	Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Net income attributable to Envestnet, Inc $ $ $ $ Basic number of weighted-average shares outstanding Effect of dilutive shares: Options to purchase common stock Unvested restricted stock units Diluted number of weighted-average shares outstanding Net income per share attributable to Envestnet, Inc: Basic $ $ $ $ Diluted $ $ $ $
Schedule of anti-dilutive securities excluded from computation of diluted net income per share	Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Options to purchase common stock — Unvested restricted stock units Ungranted unvested restricted stock units related to Upside — — Convertible debt — — Total

Major Customers (Tables)

Major Customers (Tables)	9 Months Ended
	Sep. 30, 2015
Major Customers
Summary of revenues major customers	Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Fidelity % % % %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies
Schedule of future minimum lease commitments under operating leases	Years ending December 31: 2015 $ 2016 2017 2018 2019 Thereafter Total $

Organization and Description 36

Organization and Description of Business (Details)	9 Months Ended
	Sep. 30, 2015stateitem
Organization and Description of Business
Number of RIAs	6
Number of states with which the broker-dealer is registered | state	50

Business Acquisitions (Details)

Business Acquisitions (Details)	Sep. 01, 2015USD ($)	Aug. 30, 2015USD ($)	Aug. 10, 2015USD ($)item$ / shares	May. 06, 2015USD ($)$ / sharesshares	Feb. 24, 2015USD ($)shares	Sep. 30, 2015USD ($)$ / shares	Sep. 30, 2014USD ($)$ / shares	Sep. 30, 2015USD ($)$ / shares	Sep. 30, 2014USD ($)$ / shares	Dec. 31, 2014USD ($)
Business acquisitions
Share-based compensation						$ 3,408,000	$ 2,676,000	$ 10,157,000	$ 8,443,000
Consideration transferred in acquisition
Other								8,930,000
Issuance of redeemable units in ERS, LLC								900,000	1,500,000
Estimated fair values of the assets acquired and liabilities assumed
Goodwill						134,814,000		134,814,000		$ 104,976,000
Intangible assets
Intangible assets acquired, Amount		$ 4,790,000
Pro forma financial information
Acquired intangible asset amortization						3,508,000	2,288,000	10,201,000	7,286,000
Revenues						103,782,000	95,532,000	305,403,000	271,540,000
Net income						$ 3,256,000	$ 2,191,000	$ 7,225,000	$ 6,671,000
Basic (in dollars per share) | $ / shares						$ 0.09	$ 0.06	$ 0.20	$ 0.19
Diluted (in dollars per share) | $ / shares						$ 0.09	$ 0.06	$ 0.19	$ 0.18
Customer lists
Intangible assets
Intangible assets acquired, Amount		$ 3,830,000
Intangible assets acquired, Weighted Average Useful Life In Years		12 years
Proprietary technology
Intangible assets
Intangible assets acquired, Amount		$ 720,000			$ 1,450,000
Intangible assets acquired, Weighted Average Useful Life In Years		5 years			4 years
Trade names
Intangible assets
Intangible assets acquired, Amount		$ 240,000
Intangible assets acquired, Weighted Average Useful Life In Years		2 years
ERS
Consideration transferred in acquisition
Ownership in non-wholly owned subsidiary (as a percent)	52.80%
Upside Holdings, Inc.
Business acquisitions
Acquisition related costs						$ 3,000		$ 221,000
Consideration transferred in acquisition
Cash consideration					$ 2,040,000
Purchase liabilities					615,000
Cash acquired					(14,000)
Total					2,641,000
Estimated fair values of the assets acquired and liabilities assumed
Total tangible assets acquired					6,000
Total liabilities assumed					(404,000)
Identifiable intangible assets					1,450,000
Goodwill					1,589,000
Total net assets acquired					$ 2,641,000
Upside Holdings, Inc. | Restricted stock with performance and subsequent service conditions
Business acquisitions
Subsequent service condition for vesting of restricted stock awards					2 years
Percentage for full award of unvested restricted stock					100.00%
Finance Logix’s
Business acquisitions
Acquisition related costs						40,000		415,000
Consideration transferred in acquisition
Cash consideration				$ 20,595,000
Stock and stock option consideration				8,930,000
Purchase liabilities				2,905,000
Cash acquired				(909,000)
Total				31,521,000
Estimated fair values of the assets acquired and liabilities assumed
Total tangible assets acquired				99,000
Total liabilities assumed				(2,339,000)
Identifiable intangible assets				10,500,000
Goodwill				23,261,000
Total net assets acquired				31,521,000
Intangible assets
Intangible assets acquired, Amount				10,500,000
Pro forma financial information
Revenue since acquisition						584,000		(1,057,000)
Net loss since acquisition						479,000		808,000
Acquired intangible asset amortization						376,000		626,000
Finance Logix’s | Stock Options
Consideration transferred in acquisition
Stock and stock option consideration				$ 2,542,000
Consideration transferred (in shares) | shares				123,410
Equity value issued (in dollars per share) | $ / shares				$ 52.67
Finance Logix’s | Common Stock
Consideration transferred in acquisition
Stock and stock option consideration				$ 6,388,000
Consideration transferred (in shares) | shares				123,410
Finance Logix’s | Customer lists
Intangible assets
Intangible assets acquired, Amount				$ 8,500,000
Intangible assets acquired, Weighted Average Useful Life In Years				12 years
Finance Logix’s | Proprietary technology
Intangible assets
Intangible assets acquired, Amount				$ 2,000,000
Intangible assets acquired, Weighted Average Useful Life In Years				4 years
Castle Rock
Business acquisitions
Acquisition related costs						47,000		161,000
Consideration transferred in acquisition
Cash consideration		$ 5,940,000
Cash acquired		(320,000)
Contingent consideration		2,363,000
Total		7,983,000
Contingent consideration undiscounted		$ 2,850,000
Discount rate (as a percent)		10.00%
Estimated fair values of the assets acquired and liabilities assumed
Total tangible assets acquired		$ 605,000
Total liabilities assumed		(2,400,000)
Identifiable intangible assets		4,790,000
Goodwill		4,988,000
Total net assets acquired		$ 7,983,000
Pro forma financial information
Revenue since acquisition						223,000		223,000
Net loss since acquisition						$ 59,000		59,000
Acquired intangible asset amortization								67,000
Yodlee, Inc
Consideration transferred in acquisition
Termination fee			$ 18,000,000
Yodlee, Inc | Common Stock
Consideration transferred in acquisition
Purchase liabilities			$ 200,000,000
Equity value issued (in dollars per share) | $ / shares			$ 8.10
Cash value issued (in dollars per share) | $ / shares			$ 10.78
Number of full trading days on which weighted average of sales price per share is determined			10 days
Equity interests issued (as a percent)			19.90%
Additional consideration			$ 32,000,000
Yodlee, Inc | Minimum
Business acquisitions
Number of paid subscribers | item			20,000,000
Number of serviced financial institutions | item			850
Number of data sources | item			14,000
Number of patents awarded | item			72
Yodlee, Inc | Minimum | Common Stock
Consideration transferred in acquisition
Collar price (in dollars per share) | $ / shares			$ 39.006
Yodlee, Inc | Maximum | Common Stock
Consideration transferred in acquisition
Collar price (in dollars per share) | $ / shares			$ 47.674
Castle Rock Parties | ERS
Consideration transferred in acquisition
Noncontrolling owner's ownership (as a percent)	6.50%
Issuance of redeemable units in ERS, LLC	$ 900,000
Period to repurchase issued units in the subscription agreement	36 months
Warburg Pincus | Yodlee, Inc
Consideration transferred in acquisition
Noncontrolling owner's ownership (as a percent)			26.50%
One | Upside Holdings, Inc. | Maximum | Restricted stock with performance and subsequent service conditions
Business acquisitions
Potential share-based award (in units) | shares					22,064
One | Finance Logix’s
Consideration transferred in acquisition
Annual revenue target for contingent consideration				$ 5,000,000
One | Castle Rock
Consideration transferred in acquisition
Annual revenue target for contingent consideration (as a percent)		45.00%
Revenue target for contingent consideration adjustment		$ 100,000
Contingent consideration undiscounted		$ 941,000
Two | Upside Holdings, Inc. | Maximum | Restricted stock with performance and subsequent service conditions
Business acquisitions
Potential share-based award (in units) | shares					44,128
Two | Finance Logix’s
Consideration transferred in acquisition
Annual revenue target for contingent consideration				10,000,000
Two | Castle Rock
Consideration transferred in acquisition
Annual revenue target for contingent consideration (as a percent)		35.00%
Revenue target for contingent consideration adjustment		$ 100,000
Contingent consideration undiscounted		$ 981,000
Three | Upside Holdings, Inc. | Restricted stock with performance and subsequent service conditions
Business acquisitions
Share-based compensation								$ 0
Three | Upside Holdings, Inc. | Maximum | Restricted stock with performance and subsequent service conditions
Business acquisitions
Potential share-based award (in units) | shares					66,192
Three | Finance Logix’s
Consideration transferred in acquisition
Annual revenue target for contingent consideration				$ 16,000,000
Three | Castle Rock
Consideration transferred in acquisition
Annual revenue target for contingent consideration (as a percent)		30.00%
Revenue target for contingent consideration adjustment		$ 100,000
Contingent consideration undiscounted		$ 928,000

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Property and equipment, cost:
Property and equipment, gross	$ 40,976		$ 40,976		$ 34,482
Less accumulated depreciation and amortization	(22,515)		(22,515)		(17,853)
Property and equipment, net	18,461		18,461		16,629
Accumulated Depreciation written off			564
Depreciation and amortization expense	1,967	$ 1,400	5,100	$ 4,442
Office furniture and fixtures
Property and equipment, cost:
Property and equipment, gross	5,307		$ 5,307		4,993
Office furniture and fixtures | Maximum
Property and equipment, cost:
Estimated Useful Life			7 years
Computer equipment and software
Property and equipment, cost:
Estimated Useful Life			3 years
Property and equipment, gross	23,292		$ 23,292		18,540
Other office equipment
Property and equipment, cost:
Estimated Useful Life			5 years
Property and equipment, gross	194		$ 194		144
Leasehold improvements
Property and equipment, cost:
Property and equipment, gross	$ 12,183		$ 12,183		$ 10,805

Internally Developed Software39

Internally Developed Software (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Internally Developed Software
Estimated Useful Life			5 years
Internally developed software	$ 23,359		$ 23,359		$ 19,577
Less accumulated amortization	(14,468)		(14,468)		(12,554)
Internally developed software, net	8,891		8,891		$ 7,023
Amortization expense	$ 682	$ 565	$ 1,914	$ 1,562

Goodwill and Intangible Asset40

Goodwill and Intangible Assets (Goodwill) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Changes in the carrying amount of the Company's goodwill
Balance at the beginning of the period	$ 104,976
Balance at the end of the period	134,814
Upside Holdings, Inc.
Changes in the carrying amount of the Company's goodwill
Acquisition	1,589
Finance Logix’s
Changes in the carrying amount of the Company's goodwill
Acquisition	23,261
Castle Rock
Changes in the carrying amount of the Company's goodwill
Acquisition	$ 4,988

Goodwill and Intangible Asset41

Goodwill and Intangible Assets (Intangibles) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Components of intangible assets
Gross Carrying Amount	$ 104,117		$ 104,117		$ 87,371
Accumulated Amortization	(38,918)		(38,918)		(28,717)
Net Carrying Amount	65,199		65,199		58,654
Amortization expense	3,508	$ 2,288	10,201	$ 7,286
Customer lists
Components of intangible assets
Gross Carrying Amount	80,939		80,939		68,603
Accumulated Amortization	(29,030)		(29,030)		(21,699)
Net Carrying Amount	51,909		$ 51,909		46,904
Customer lists | Minimum
Components of intangible assets
Useful Life			4 years
Customer lists | Maximum
Components of intangible assets
Useful Life			12 years
Proprietary technology
Components of intangible assets
Gross Carrying Amount	19,848		$ 19,848		15,678
Accumulated Amortization	(8,165)		(8,165)		(5,808)
Net Carrying Amount	11,683		$ 11,683		9,870
Proprietary technology | Minimum
Components of intangible assets
Useful Life			2 years 6 months
Proprietary technology | Maximum
Components of intangible assets
Useful Life			8 years
Trade names
Components of intangible assets
Gross Carrying Amount	3,330		$ 3,330		3,090
Accumulated Amortization	(1,723)		(1,723)		(1,210)
Net Carrying Amount	$ 1,607		$ 1,607		$ 1,880
Trade names | Minimum
Components of intangible assets
Useful Life			2 years
Trade names | Maximum
Components of intangible assets
Useful Life			5 years

Other Non-Current Assets (Detai

Other Non-Current Assets (Details) - USD ($) $ in Thousands	Apr. 01, 2015	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Investment in private companies		$ 2,710	$ 2,710	$ 1,250
Deposits:
Lease		2,212	2,212	1,811
Other		488	488	436
Unamortized convertible debt issuance costs		3,982	3,982	4,612
Other		1,736	1,736	1,407
Total other non-current assets		11,128	11,128	$ 9,516
AlphaHedge Capital Partners, LLC
Deposits:
Number of shares purchased	150,000
Ownership interest (as a percent)	10.30%
Upfront consideration	$ 1,500
Proportionate share of income (loss)		$ (40)	$ (40)

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Fair Value Measurements
The cash flow period from the acquisition date used in determining fair value	3 years
Level 1 | Recurring Basis | Money market funds
Fair Value Measurements
Cash and cash equivalents	$ 92,748	$ 70,760

Fair Value Measurements (Lev3 r

Fair Value Measurements (Lev3 rec) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Changes in the fair value of Contingent Consideration Liabilities
Fair value asset transfers between Levels 1, 2 and 3	$ 0
Recurring Basis
Changes in the fair value of Contingent Consideration Liabilities
Balance at the beginning of the period		$ 13,867
Settlement of contingent consideration liability		(7,219)
Fair market value adjustment		(3,791)
Imputed interest		794
Balance at the end of the period	$ 6,014	6,014
Castle Rock | Recurring Basis
Changes in the fair value of Contingent Consideration Liabilities
Acquisition		$ 2,363

Fair Value Measurements (Debt)

Fair Value Measurements (Debt) (Details) - Convertible Notes - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Carrying amounts and estimated fair values
Face amount	$ 172,500	$ 172,500
Carrying Value | Level 1
Carrying amounts and estimated fair values
2019 Convertible Notes	148,877
Fair Value | Level 1
Carrying amounts and estimated fair values
2019 Convertible Notes	$ 152,663

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Components of accrued expenses
Accrued investment manager fees	$ 28,855	$ 28,855	$ 25,195
Accrued compensation and related taxes	15,890	15,890	18,344
Accrued professional services	477	477	536
Acquisition related purchase liabilities	3,520	3,520
Estimated accrued software license fees			800
Accrued restructuring charges	418	418
Other accrued expenses	4,064	4,064	3,372
Total accrued expenses	53,224	53,224	$ 48,247
Upside Holdings, Inc.
Components of accrued expenses
Acquisition related purchase liabilities	615	615
Finance Logix’s
Components of accrued expenses
Acquisition related purchase liabilities	2,905	2,905
Office closing
Components of accrued expenses
Restructuring expense	$ 518	$ 518

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income tax provision and the effective tax rate
Income before income tax provision	$ 5,981	$ 5,941	$ 14,675	$ 16,098
Income tax provision	$ 2,679	$ 2,173	$ 6,326	$ 5,812
Effective tax rate (as a percent)	44.80%	36.60%	43.10%	36.10%
U.S. federal statutory tax rate (as a percent)			35.00%	34.00%

Income Taxes (Interim) (Details

Income Taxes (Interim) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Income taxes
Unrecognized tax benefits that would impact effective tax rate, if recognized	$ 1,884
Reasonably possible decrease in liability for unrecognized tax benefits in the next twelve months	1,676
Accrued interest and penalties on unrecognized tax benefits	452		$ 594
Excess tax benefits from stock-based compensation expense	18,010	$ 5,086
Other non-current liabilities
Income taxes
Liability for unrecognized tax benefits	2,000		$ 2,092
Prepaid expenses and other current assets
Income taxes
Excess tax benefits from stock-based compensation expense	$ 18,010

Debt (Summary) (Details)

Debt (Summary) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Dec. 15, 2014
Outstanding debt obligations
Convertible debt, total	$ 148,877	$ 145,203
Convertible Notes
Outstanding debt obligations
Face amount	172,500	172,500
Unaccredited discount on Convertible Notes	(23,623)	(27,297)	$ (27,500)
Convertible debt, total	$ 148,877	$ 145,203

Debt (CredAg) (Details)

Debt (CredAg) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Sep. 30, 2015
Credit Agreement
Debt
Credit facility amount	$ 100,000
Increase credit facility, amount	$ 25,000
Commitment fee	0.25%
Amount outstanding		$ 0
Credit Agreement | LIBOR | Minimum
Debt
Spread on variable rate basis	1.50%
Credit Agreement | LIBOR | Maximum
Debt
Spread on variable rate basis	3.25%
Letter of credit
Debt
Credit facility amount	$ 5,000

Debt (Conv) (Details)

Debt (Conv) (Details) $ / shares in Units, $ in Thousands	Dec. 15, 2014USD ($)item$ / shares	Sep. 30, 2015USD ($)$ / shares	Sep. 30, 2015USD ($)$ / shares	Dec. 31, 2014USD ($)
Debt
Accretion of debt discount			$ 7,081
Convertible Notes
Debt
Face amount	$ 172,500
Net proceeds from offering	$ 166,967
Interest rate (as a percent)	1.75%
Repurchase percentage of principal (as a percent)	100.00%
Conversion rate	0.0159022
Principal amount	$ 1
Conversion price (in dollars per share) | $ / shares	$ 62.88	$ 62.88	$ 62.88
Threshold trading days (in days) | item	20
Consecutive trading days	30 days
Threshold percentage of stock price trigger (as a percent)	130.00%
Threshold business days	5 days
Threshold consecutive trading-day period	5 days
Threshold percentage of trading price trigger (as a percent)	98.00%
Allocated to equity components	$ 26,618
Offering costs	882
Discount	27,500	$ 23,623	$ 23,623	$ 27,297
Accretion of debt discount		$ 1,258	$ 3,682
Effective interest rate on the liability component (as a percent)		6.00%	6.00%
Convertible Notes | Other non-current assets
Debt
Issuance costs	$ 4,651

Debt (Int) (Details)

Debt (Int) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Interest expense on convertible debt
Accretion of debt discount		$ 7,081
Convertible Notes
Interest expense on convertible debt
Coupon interest	$ 755	2,265
Amortization of issuance costs	308	939
Accretion of debt discount	1,258	3,682
Undrawn fees on Credit Agreement	63	195
Total interest expense	$ 2,384	$ 7,081

Stock-Based Compensation (Exp)

Stock-Based Compensation (Exp) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	May. 13, 2015
Stock-Based Compensation
Increase number of shares reserved for delivery					2,700,000
Maximum number of stock options and restricted stock available for future issuance	3,025,081		3,025,081
Summary of employee stock-based compensation expense
Employee stock-based compensation expense	$ 3,408	$ 2,676	$ 10,157	$ 8,443
Tax effect on employee stock-based compensation expense	(1,363)	(1,070)	(4,063)	(3,377)
Net effect on income	$ 2,045	$ 1,606	$ 6,094	$ 5,066

Stock-Based Compensation (Assum

Stock-Based Compensation (Assump) (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Summary of weighted average assumptions used to value options granted
Grant date fair value of options (in dollars per share)		$ 16.80	$ 20.90	$ 16.81
Volatility (as a percent)		33.70%	37.20%	37.30%
Risk-free interest rate (as a percent)		2.00%	1.70%	1.90%
Dividend yield (as a percent)	0.00%	0.00%	0.00%	0.00%
Expected term		6 years	6 years	6 years

Stock-Based Compensation (Optio

Stock-Based Compensation (Options) (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2015	Jun. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Options
Outstanding at the beginning of the period (in shares)	4,265,337	4,265,337	4,265,337
Granted (in shares)	148,677	123,410
Exercised (in shares)	(415,512)	(271,004)	(249,970)
Forfeited (in shares)	(9,941)	(28,403)	(2,403)
Outstanding at the end of the period (in shares)	3,988,561	3,812,564	3,560,191	4,265,337
Options exercisable (in shares)			3,234,095
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 10.73	$ 10.73	$ 10.73
Granted (in dollars per share)	54.02	52.67
Exercised (in dollars per share)	8.93	8.12	6.15
Forfeited (in dollars per share)	24.94	46.07	47.33
Outstanding at the end of the period (in dollars per share)	$ 12.50	$ 13.86	14.38	$ 10.73
Options exercisable (in dollars per share)			$ 11.53
Weighted-Average Remaining Contractual Life
Outstanding	4 years 9 months 18 days	4 years 9 months 18 days	4 years 9 months 18 days	4 years 8 months 12 days
Options exercisable			4 years 4 months 24 days
Aggregate Intrinsic Value
Outstanding (in dollars)	$ 173,837	$ 105,196	$ 64,068	$ 163,830
Options exercisable (in dollars)			63,173
Additional disclosures
Unrecognized stock-based compensation expense related to unvested stock options			$ 4,208
Unrecognized compensation expense weighted-average recognition period			2 years 1 month 6 days
Minimum
Additional disclosures
Exercise prices of stock options outstanding (in dollars per share)			$ 0.11
Maximum
Additional disclosures
Exercise prices of stock options outstanding (in dollars per share)			$ 55.29

Stock-Based Compensation (ResSt

Stock-Based Compensation (ResSt) (Details) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended	9 Months Ended
	Mar. 31, 2015$ / sharesshares	Jun. 30, 2015$ / sharesshares	Sep. 30, 2015USD ($)item$ / sharesshares
Restricted Stock
Stock-Based compensation
Award vesting rights proportion (as a percent)			33.00%
Number of vesting rights anniversaries | item			3
Number of Shares
Balance at the beginning of the period (in shares)	1,098,674	1,098,674	1,098,674
Granted (in shares)	207,531		2,000
Vested (in shares)	(358,166)		(17,126)
Forfeited (in shares)	(6,628)	(5,869)	(2,414)
Balance at the end of the period (in shares)	941,411	935,542	918,002
Weighted-Average Grant Date Fair Value per Share
Balance at the beginning of the period (in dollars per share) | $ / shares	$ 33.72	$ 33.72	$ 33.72
Granted (in dollars per share) | $ / shares	53.89		45.21
Vested (in dollars per share) | $ / shares	20.44		30.29
Forfeited (in dollars per share) | $ / shares	33.53	45.98	44.84
Balance at the end of the period (in dollars per share) | $ / shares	$ 38.61	$ 43.18	$ 43.42
Additional disclosures
Unrecognized compensation expense related to unvested restricted stock | $			$ 17,012
Unrecognized compensation expense weighted-average recognition period			2 years
Restricted stock with performance and subsequent service conditions
Additional disclosures
Unrecognized compensation expense related to unvested restricted stock | $			$ 1,146
Unrecognized compensation expense weighted-average recognition period			1 year 6 months
Unvested restricted stock, service condition			2 years

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 15, 2014
Reconciliation of the numerators and denominators used in computing basic and diluted net income per share
Net income attributable to Envestnet, Inc.	$ 3,302	$ 3,768	$ 8,349	$ 10,481
Basic number of weighted-average shares outstanding	36,021,784	34,674,245	35,651,508	34,447,619
Options to purchase common stock (in shares)	1,554,564	2,179,828	1,784,442	2,190,134
Unvested restricted stock (in shares)	38,353	152,723	127,865	194,401
Diluted number of weighted-average shares outstanding	37,614,701	37,006,796	37,563,815	36,832,154
Net income per share attributable to Envestnet, Inc:
Basic (in dollars per share)	$ 0.09	$ 0.11	$ 0.23	$ 0.30
Diluted (in dollars per share)	0.09	$ 0.10	0.22	$ 0.28
Convertible Notes
Conversion price (in dollars per share)	$ 62.88		$ 62.88		$ 62.88

Earnings Per Share (AntiDil) (D

Earnings Per Share (AntiDil) (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
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 earnings per share (in shares)	3,798,421	95,581	3,355,012	154,408
Stock Options
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 earnings per share (in shares)	447,354		270,728	58,500
Restricted 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 earnings per share (in shares)	475,462	95,581	208,679	95,908
Convertible Notes | Common 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 earnings per share (in shares)	2,743,321		2,743,321
Upside Holdings, Inc. | Restricted 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 earnings per share (in shares)	132,284		132,284

Major Customers (Details)

Major Customers (Details) - Revenues. - Customer concentration risk - Fidelity - customer	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Major Customers
Number of customers accounted for as major customer	1	1	1	1
Major customer as a percentage of the company's total	18.00%	19.00%	18.00%	19.00%

Commitments and Contingencies60

Commitments and Contingencies (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)item
Number of previous claims experienced | item	0
Future annual minimum lease commitments under operating leases
Remainder of 2015	$ 2,011
2,016	8,557
2,017	7,666
2,018	7,064
2,019	6,574
Thereafter	23,587
Total	$ 55,459
Yodlee Merger Complaints
Number of claims filed | item	2