Exhibit 99.1

FOR IMMEDIATE RELEASE

Financial Engines Reports Second Quarter 2016 Financial Results

SUNNYVALE, Calif. – August 2, 2016 – Financial Engines (NASDAQ: FNGN), America’s largest independent investment advisorⁱ, today reported financial results for its second quarter ended June 30, 2016.

Financial results for the second quarter of 2016 compared to the second quarter of 2015:ⁱⁱ

Key operating metrics as of June 30, 2016:ⁱⁱⁱ

“I’m pleased that Financial Engines continues to effectively serve the needs of millions of clients, especially those with modest balances,” said Larry Raffone, president and chief executive officer of Financial Engines.  “I believe that the ongoing successful integration of The Mutual Fund Store, along with the Department of Labor’s new Conflict of Interest Rule, will allow us to develop new services to bring unique benefits to even more Americans in a way that nobody else in the industry can.”

Review of Financial Results for the Second Quarter of 2016

Revenue increased 36% to $106.2 million for the second quarter of 2016 from $78.2 million for the second quarter of 2015. The increase in revenue was driven primarily by $27.4 million of revenue related to the acquisition of The Mutual Fund Store on February 1, 2016. Professional management revenue increased 38% to $96.1 million for the second quarter of 2016 from $69.7 million for the second quarter of 2015, driven primarily by $25.2 million of professional management revenue related to acquisitions.

Costs and expenses increased 38% to $91.1 million for the second quarter of 2016 from $66.2 million for the second quarter of 2015. This was due primarily to increases in employee-related costs, including wages, due primarily to the addition of approximately 300 newly-acquired employees as of February 1, 2016, advisor variable cash compensation expense related to ongoing asset servicing activities, increased intangible amortization, primarily related to acquisitions and increased radio and digital advertising.

As a percentage of revenue, cost of revenue was 44% for the second quarter of 2016 compared to 43% for the second quarter of 2015.

Income from operations was $15.1 million for the second quarter of 2016, which included $2.9 million of additional amortization of intangible assets and $2.3 million of integration expenses attributable to the acquisition, compared to $12.0 million for the second quarter of 2015. As a percentage of revenue, income from operations was 14% for the second quarter of 2016 compared to 15% for the second quarter of 2015, driven primarily by one-time acquisition related costs.

Net income was $9.0 million, or $0.14 per diluted share, for the second quarter of 2016 compared to net income of $8.5 million, or $0.16 per diluted share, for the second quarter of 2015.  On a non-GAAP basis, adjusted net incomeⁱⁱ was $17.6 million and adjusted earnings per shareⁱⁱ were $0.28 for the second quarter of 2016 compared to adjusted net income of $12.3 million and adjusted earnings per share of $0.23 for the second quarter of 2015.  

“We are managing the business with a continuing focus on the key areas that we believe will drive an increase in asset enrollment and retention,” said Ray Sims, chief financial officer of Financial Engines. “We remain confident that our 2016 initiatives and investments will build a strong foundation for our future growth.”

Assets Under Contract and Assets Under Management

AUC decreased by 2% year-over-year to $992 billion as of June 30, 2016, from $1.014 trillion as of June 30, 2015, due primarily to cancellations and a decline in market performance, offset by contributions and new employers making our services available. AUC for plans in which the Income+ service has been made available was $417 billion as of June 30, 2016, which increased 55% from $269 billion as of June 30, 2015.

AUM increased by 9% year-over-year to $125.3 billion as of June 30, 2016, from $114.5 billion as of June 30, 2015. The increase in AUM was driven primarily by new assets from new and existing clients, new AUM of $10 billion acquired through acquisition, partially offset by cancellations and market performance.

For quarters presented prior to Q1’16, new assets were measured as of the time of enrollment and cancellations were measured at the time of cancellation.  Effective Q1’16, new assets were measured at or near the end of the quarter and cancellations were measured at or near the beginning of the quarter. Differences resulting from this definitional change are considered to be immaterial for the periods presented.

For further information on the AUM data above, please refer to our Form 10-Q to be filed for the period ended June 30, 2016. 

Aggregate Investment Style Exposure for Portfolios Under Management

As of June 30, 2016, the approximate aggregate investment style exposure of the portfolios we managed was as follows:

Quarterly Dividend

On July 26, 2016, Financial Engines’ Board of Directors declared a regular quarterly cash dividend of $0.07 per share of the Company’s common stock. The cash dividend will be paid on October 4, 2016 to stockholders of record as of the close of business on September 20, 2016.  

Outlook

Financial Engines’ growth strategy includes focusing on increasing penetration within existing professional management plan sponsors, enhancing and extending services to individuals entering and in retirement, and expanding the number of plan sponsors.

Based on financial markets remaining at July 29, 2016 levels, the Company estimates that 2016 revenue will be in the range of $415 million to $422 million, 2016 GAAP net income will be in the range of $24 million to $27 million and 2016 non-GAAP adjusted EBITDA will be in the range of $127 million to $132 million. A reconciliation of our non-GAAP adjusted EBITDA outlook to our GAAP net income outlook is contained in the accompanying financial tables.

We are currently estimating the remaining integration-related expenses in the second half of 2016 to be approximately $13 million, excluding non-cash stock-based compensation expense, in addition to $10.5 million incurred in the first half of 2016.  This estimate has increased from the estimate provided last quarter due primarily to the expected recognition of estimated future losses related to certain franchises upon acquisition. These expenses will be added back to net income in the calculation of non-GAAP adjusted EBITDA and non-GAAP adjusted net income.  The related tax effect adjustment will be calculated using an estimated statutory tax rate of 38.2%.

Please refer to the tables included in this release that reconcile our GAAP net income to non-GAAP adjusted EBITDA, non-GAAP adjusted net income and non-GAAP adjusted earnings per share.

Conference Call

The Company will host a conference call to discuss its second quarter 2016 financial results as well as its 2016 outlook on Tuesday, August 2, 2016 at 5:00 p.m. ET.  The live webcast and presentation can be accessed from the Company's investor relations website at www.financialengines.com. The conference call can also be accessed live over the phone by dialing (888) 348-6435, or (412) 902-4238 for international callers. A replay will be available beginning approximately one hour after the call and can be accessed from the Company’s investor relations website, or by dialing (877) 870-5176, or (858) 384-5517 for international callers; the conference ID is 10089228. The conference call replay will be available until August 9, 2016.  

About Non-GAAP Financial Measures

This press release and its attachments include certain non-GAAP supplemental performance measures. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. generally accepted accounting principles (GAAP). These non-GAAP measures include non-GAAP adjusted EBITDA, non-GAAP adjusted net income, and non-GAAP adjusted earnings per share. Adjusted EBITDA represents net income before net interest expense (income), income tax expense (benefit), depreciation, amortization of intangible assets, including internal use software, amortization and impairment of direct response advertising, amortization of deferred sales commissions, non-cash stock-based compensation expense and expenses related to the closing and integration of acquisitions, if applicable for the period. Adjusted net income represents net income before non-cash stock-based compensation expense, amortization of intangible assets related to assets acquired, including customer relationships, trade names and trademarks, expenses related to the closing and integration of acquisitions and certain other items such as the income tax benefit from the release of valuation allowances, if applicable for the period, partially offset by the related tax impact of these items. Adjusted earnings per share is defined as adjusted net income divided by the weighted average of dilutive common share equivalents outstanding. Further information regarding the non-GAAP performance measures included in this press release, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures, is contained in the financial tables and will be contained in the Company’s Form 10-Q to be filed for the quarter ended June 30, 2016.

To supplement the Company’s consolidated financial statements presented on a GAAP basis, management believes that these non-GAAP measures provide our Board of Directors, management and investors with additional information and greater transparency with respect to our performance and decision-making. We feel these performance measures provide investors and others with a better understanding and ability to evaluate our operating results and future prospects and provides the same performance measurement information as utilized by management. These adjustments to the Company’s GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company’s underlying operational results, trends and performance.

Our management uses non-GAAP adjusted EBITDA, adjusted net income and adjusted earnings per share as measures of operating performance, for planning purposes, including the preparation of annual budgets, to allocate resources to enhance the financial performance of our business, to evaluate the effectiveness of our business strategies and in communications with our Board of Directors concerning our financial performance. In addition, management currently uses non-GAAP measures in determining cash incentive compensation.

About Financial Engines

Financial Engines is America’s largest independent investment advisor¹. We help people make the most of their money by providing full-service financial planning, including professional investment management and advice. Headquartered in Sunnyvale, CA, Financial Engines was co-founded in 1996 by Nobel Prize-winning economist William F. Sharpe. We serve as a comprehensive financial advisor for our workplace customers, and offer help to more than nine million people across over 670 companies (including 143 of the Fortune 500). Our unique approach, combined with powerful online services, dedicated advisors and personal attention, promotes greater financial wellness and helps more Americans to meet their financial goals.

For more information, visit www.financialengines.com.

All advisory services provided by our investment advisory subsidiaries, including Financial Engines Advisors L.L.C. and a nationwide system of registered investment advisors known as The Mutual Fund Store. Financial Engines does not guarantee future results.

Forward-Looking Statements

This press release and its attachments contain forward-looking statements that involve risks and uncertainties. These forward-looking statements may be identified by terms such as “plan to,” “designed to,” “will,” “can,” “expect,” “estimates,” “believes,” “intends,” “may,” “continues,” “to be” or the negative of these terms, and similar expressions intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding:  our ability to serve millions of clients in ways others cannot; the anticipated impact of the acquisition and integration of The Mutual Fund Store and the Department of Labor’s new Conflict of Interest Rule;  our focus on areas that we believe will drive an increase in asset enrollment and retention; the anticipated impact of our 2016 initiatives and investments on our future growth; Financial Engines’ expected financial performance and outlook, including reconciliation information related thereto and factors which may impact our outlook; and the benefits and anticipated uses of our non-GAAP financial measures. These statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements, and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to, risks related to the acquisition of The Mutual Fund Store, including our ability to  fully realize the anticipated benefits of the transaction and to successfully integrate The Mutual Fund Store’s business with Financial Engines in a timely manner or at all, unanticipated costs or complexities related to and integration of The Mutual Fund Store, and the potential impact of  the transaction, or reaction thereto, on our business, operating results and financial condition, our reliance on fees earned on the value of assets we manage for a substantial portion of our revenue, the impact of the financial markets on our revenue and earnings, unanticipated delays in rollouts of our services, our ability to increase enrollment, our ability to correctly identify and invest appropriately in growth opportunities, our ability to introduce new services and accurately estimate the impact of any future services on our business, the risk that the anticipated benefits of our investments in these services or in growth opportunities may not outweigh the resources and costs associated with these investments or the liabilities associated with the operation of these services, our relationships with plan providers and plan sponsors, the fees we can charge for our Professional Management service, our reliance on accurate and timely data from plan providers and plan sponsors, system failures, errors or unsatisfactory performance of our services, our reputation, our ability to protect the confidentiality of plan provider, plan sponsor and plan participant data and other privacy concerns, acquisition activity involving plan providers or plan sponsors, our ability to compete, our regulatory environment, and risks associated with our fiduciary obligations.  More information regarding these and other risks, uncertainties and factors is contained in the Company’s Form 10-Q for the quarter ended June 30, 2016, as filed with the SEC, and in other reports filed by the Company with the SEC from time to time, including the Company’s 10-K filed for the year ended December 31, 2015. You are cautioned not to unduly rely on these forward-looking statements, which speak only as of the date of this press release. All information in this press release and its attachments is as of the date stated or August 2, 2016 and unless required by law, Financial Engines undertakes no obligation to publicly revise any forward-looking statement to reflect circumstances or events after the date of this press release or to report the occurrence of unanticipated events.

All advisory services provided by our investment advisory subsidiaries, including Financial Engines Advisors L.L.C., a federally registered investment advisor, and a nationwide system of registered investment advisors known as The Mutual Fund Store. References in this press release to “Financial Engines,” “our company,” “the Company,” “we,” “us” and “our” refer to Financial Engines, Inc. and its consolidated subsidiaries during the periods presented unless the context requires otherwise.

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Financial Tables

FINANCIAL ENGINES, INC. AND SUBSIDIARIES

Unaudited Consolidated Balance Sheets

FINANCIAL ENGINES, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Income

FINANCIAL ENGINES, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Cash Flows

FINANCIAL ENGINES, INC. AND SUBSIDIARIES

Reconciliation of GAAP to Non-GAAP Operating Results

The table below sets forth a reconciliation of GAAP net income to non-GAAP adjusted EBITDA based on our historical results:

The table below sets forth a reconciliation of GAAP net income to non-GAAP adjusted net income based on our historical results:

The table below sets forth a reconciliation of GAAP diluted earnings per share to non-GAAP adjusted earnings per share based on our historical results:

The table below sets forth a reconciliation of our 2016 outlook for GAAP net income to our 2016 outlook for non-GAAP adjusted EBITDA: