WisdomTree Announces Third Quarter 2026 Results
Record AUM of $171.0 Billion
Diluted Earnings Per Share of $0.32
Over $13.6 Billion of Net Inflows Year-to-Date, a 13% Annualized Organic Growth Rate
Operating Margin Expanded by 680 bps Year over Year; or 750 bps, on an Adjusted Basis
NEW YORK--(BUSINESS WIRE)-- WisdomTree, Inc. (NYSE: WT), a modern global asset manager, today reported financial results for the third quarter of 2026.
$49.2 million of net income ($49.5(1) million, as adjusted). See “Non-GAAP Financial Measurements” for a reconciliation to net income.
$171.0 billion of ending AUM, an increase of 5.0% from the prior quarter arising from net inflows and market appreciation.
$4.6 billion of net inflows, across the United States and Europe primarily driven by inflows into our fixed income, commodity and U.S. equity products.
0.36% average advisory fee, unchanged from the prior quarter.
0.42% revenue yield(2), a 1 basis point decrease from the prior quarter due to lower transaction fees from our European ETPs and lower performance fees.
$179.4 million of operating revenues, an increase of 1.3% from the prior quarter due to higher average AUM, partly offset by lower transaction fees from our European ETPs and lower performance fees.
83.0% gross margin(1), essentially unchanged from the prior quarter.
41.3% operating income margin for the quarter (43.1% as adjusted), a 0.8 point increase (0.5 point increase, as adjusted) from the prior quarter primarily due to higher revenues.
39.8% operating income margin year-to-date (41.8% as adjusted), a 6.8 point increase (7.5 point(3) increase, as adjusted) from the prior-year period. The increase primarily reflected favorable operating leverage from revenue growth, partially offset by higher intangible amortization associated with the Ceres Partners, LLC (“Ceres”) and Atlantic House Holdings Limited (“Atlantic House”) acquisitions. Adjusted operating income excludes intangible asset amortization and acquisition-related costs.
$18.1 million aggregate principal amount of convertible senior notes due 2029 (the “2029 Notes”) retired, for aggregate cash consideration of $32.3 million. The conversion price of the 2029 Notes was $11.82.
$10.6 million of common stock repurchased, representing approximately 0.5 million shares at an average repurchase price of $21.29 per share.
$0.03 quarterly dividend declared, payable on November 25, 2026 to stockholders of record as of the close of business on November 11, 2026.
Update from Jarrett Lilien, WisdomTree President and COO
|
“Our third quarter results reflect the continued strength and scalability of WisdomTree’s business, with record AUM of $171 billion, $4.6 billion of net inflows and meaningful contributions across our global platform. The breadth and consistency of our organic growth, coupled with expanding distribution capabilities and continued operating discipline, are driving significant operating leverage and margin expansion. As we deepen our presence in existing markets and capitalize on new opportunities across liquid alternatives, private markets and tokenization, we remain focused on executing our proven playbook: generating high-quality organic growth, scaling efficiently and translating that momentum into greater earnings power.” |
Update from Jonathan Steinberg, WisdomTree CEO
|
“WisdomTree continues to evolve into a truly modern global asset manager, strategically positioned at the intersection of three powerful transformations in financial services: the democratization of investing, the convergence of public and private markets, and the tokenization of financial assets. After more than two decades of strategic reinvestment, we have built differentiated capabilities across each of these areas, and we believe the greatest opportunity lies in bringing them together into one integrated investment ecosystem. Combined with our highly efficient and scalable operating model, we believe WisdomTree is well positioned to drive sustained growth and create significant long-term value for stockholders.” |
OPERATING AND FINANCIAL HIGHLIGHTS
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Three Months Ended |
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Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
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Consolidated Operating Highlights ($ in billions): |
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|
|
|
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AUM—end of period |
$ |
171.0 |
|
$ |
162.9 |
|
$ |
152.6 |
|
$ |
144.5 |
|
$ |
137.2 |
|
|
Net inflows/(outflows) |
$ |
4.6 |
|
$ |
3.1 |
|
$ |
5.9 |
|
$ |
(0.3 |
) |
$ |
2.2 |
|
|
Average AUM |
$ |
170.5 |
|
$ |
164.2 |
|
$ |
154.7 |
|
$ |
140.7 |
|
$ |
130.8 |
|
|
Average advisory fee |
|
0.36% |
|
0.36% |
|
0.36% |
|
0.35% |
|
0.35% |
|||||
|
Revenue yield(2) |
|
0.42% |
|
0.43% |
|
0.42% |
|
0.42% |
|
0.38% |
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|
|
|
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Consolidated Financial Highlights ($ in millions, except per share amounts): |
|
|
|
|
|
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Operating revenues |
$ |
179.4 |
|
$ |
177.2 |
|
$ |
159.5 |
|
$ |
147.4 |
|
$ |
125.6 |
|
|
Net income/(loss) |
$ |
49.2 |
|
$ |
44.3 |
|
$ |
(23.1 |
) |
$ |
40.0 |
|
$ |
19.7 |
|
|
Diluted earnings/(loss) per share |
$ |
0.32 |
|
$ |
0.28 |
|
$ |
(0.17 |
) |
$ |
0.28 |
|
$ |
0.13 |
|
|
Operating income margin |
|
41.3% |
|
40.5% |
|
37.2% |
|
40.5% |
|
36.3% |
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|
|
|
|
|
|
|
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As Adjusted (Non-GAAP(1)): |
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|
|
|
|
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Operating revenues, as adjusted |
$ |
179.4 |
|
$ |
177.2 |
|
$ |
159.5 |
|
$ |
147.4 |
|
$ |
125.6 |
|
|
Gross margin |
|
83.0% |
|
82.9% |
|
84.4% |
|
83.2% |
|
82.2% |
|||||
|
Net income, as adjusted |
$ |
49.5 |
|
$ |
48.1 |
|
$ |
40.6 |
|
$ |
41.2 |
|
$ |
34.5 |
|
|
Diluted earnings per share, as adjusted |
$ |
0.32 |
|
$ |
0.31 |
|
$ |
0.27 |
|
$ |
0.29 |
|
$ |
0.23 |
|
|
Operating income margin, as adjusted |
|
43.1% |
|
42.6% |
|
39.3% |
|
41.7% |
|
38.3% |
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RECENT BUSINESS DEVELOPMENTS
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Company News
Product News
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WISDOMTREE, INC. AND SUBSIDIARIES |
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Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||||||
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|
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
Sept. 30, |
Sept. 30, |
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Operating Revenues: |
|
||||||||||||||||||||||||||||||
|
Advisory fees |
$ |
151,631 |
|
$ |
146,300 |
|
$ |
134,880 |
|
$ |
122,712 |
|
$ |
114,485 |
|
$ |
432,811 |
|
$ |
317,275 |
|
|
|||||||||
|
Management fees |
|
5,420 |
|
|
5,369 |
|
|
5,231 |
|
|
4,908 |
|
|
— |
|
|
16,020 |
|
|
— |
|
|
|||||||||
|
Performance fees |
|
3,778 |
|
|
5,964 |
|
|
2,955 |
|
|
7,105 |
|
|
— |
|
|
12,697 |
|
|
— |
|
|
|||||||||
|
Other revenues |
|
18,546 |
|
|
19,527 |
|
|
16,404 |
|
|
12,709 |
|
|
11,131 |
|
|
54,477 |
|
|
29,044 |
|
|
|||||||||
|
Total revenues |
|
179,375 |
|
|
177,160 |
|
|
159,470 |
|
|
147,434 |
|
|
125,616 |
|
|
516,005 |
|
|
346,319 |
|
|
|||||||||
|
Operating Expenses: |
|
||||||||||||||||||||||||||||||
|
Compensation and benefits |
|
44,770 |
|
|
43,718 |
|
|
47,517 |
|
|
37,273 |
|
|
33,791 |
|
|
136,005 |
|
|
100,406 |
|
|
|||||||||
|
Fund management and administration |
|
30,532 |
|
|
30,229 |
|
|
24,880 |
|
|
24,830 |
|
|
22,353 |
|
|
85,641 |
|
|
64,319 |
|
|
|||||||||
|
Marketing and advertising |
|
5,426 |
|
|
6,041 |
|
|
5,392 |
|
|
5,613 |
|
|
4,788 |
|
|
16,859 |
|
|
14,931 |
|
|
|||||||||
|
Sales and business development |
|
4,820 |
|
|
4,938 |
|
|
4,197 |
|
|
4,045 |
|
|
3,943 |
|
|
13,955 |
|
|
12,312 |
|
|
|||||||||
|
Professional fees |
|
4,263 |
|
|
4,098 |
|
|
3,308 |
|
|
3,596 |
|
|
3,505 |
|
|
11,669 |
|
|
9,464 |
|
|
|||||||||
|
Occupancy, communications and equipment |
|
2,620 |
|
|
2,229 |
|
|
1,935 |
|
|
1,892 |
|
|
1,601 |
|
|
6,784 |
|
|
4,642 |
|
|
|||||||||
|
Depreciation and amortization |
|
4,028 |
|
|
3,415 |
|
|
2,096 |
|
|
2,043 |
|
|
615 |
|
|
9,539 |
|
|
1,735 |
|
|
|||||||||
|
Third-party distribution fees |
|
5,334 |
|
|
5,401 |
|
|
5,795 |
|
|
4,772 |
|
|
3,977 |
|
|
16,530 |
|
|
11,172 |
|
|
|||||||||
|
Acquisition-related costs |
|
— |
|
|
1,118 |
|
|
1,933 |
|
|
317 |
|
|
2,409 |
|
|
3,051 |
|
|
4,376 |
|
|
|||||||||
|
Other |
|
3,460 |
|
|
4,162 |
|
|
3,067 |
|
|
3,306 |
|
|
2,980 |
|
|
10,689 |
|
|
8,514 |
|
|
|||||||||
|
Total operating expenses |
|
105,253 |
|
|
105,349 |
|
|
100,120 |
|
|
87,687 |
|
|
79,962 |
|
|
310,722 |
|
|
231,871 |
|
|
|||||||||
|
Operating income |
|
74,122 |
|
|
71,811 |
|
|
59,350 |
|
|
59,747 |
|
|
45,654 |
|
|
205,283 |
|
|
114,448 |
|
|
|||||||||
|
Other Income/(Expenses): |
|
||||||||||||||||||||||||||||||
|
Interest expense |
|
(13,520 |
) |
|
(14,852 |
) |
|
(11,023 |
) |
|
(11,023 |
) |
|
(8,466 |
) |
|
(39,395 |
) |
|
(19,397 |
) |
|
|||||||||
|
Interest income |
|
1,841 |
|
|
3,203 |
|
|
2,592 |
|
|
2,965 |
|
|
4,015 |
|
|
7,636 |
|
|
8,002 |
|
|
|||||||||
|
Loss on repurchase of convertible notes |
|
— |
|
|
(6,623 |
) |
|
(62,302 |
) |
|
(833 |
) |
|
(13,011 |
) |
|
(68,925 |
) |
|
(13,011 |
) |
|
|||||||||
|
Remeasurement of contingent consideration |
|
2,069 |
|
|
(1,360 |
) |
|
(2,562 |
) |
|
(710 |
) |
|
— |
|
|
(1,853 |
) |
|
— |
|
|
|||||||||
|
Other losses and gains, net |
|
(35 |
) |
|
6,368 |
|
|
(637 |
) |
|
317 |
|
|
1,325 |
|
|
5,696 |
|
|
1,713 |
|
|
|||||||||
|
Income/(loss) before income taxes |
|
64,477 |
|
|
58,547 |
|
|
(14,582 |
) |
|
50,463 |
|
|
29,517 |
|
|
108,442 |
|
|
91,755 |
|
|
|||||||||
|
Income tax expense |
|
15,261 |
|
|
14,263 |
|
|
8,549 |
|
|
10,437 |
|
|
9,816 |
|
|
38,073 |
|
|
22,648 |
|
|
|||||||||
|
Net income/(loss) |
$ |
49,216 |
|
$ |
44,284 |
|
$ |
(23,131 |
) |
$ |
40,026 |
|
$ |
19,701 |
|
$ |
70,369 |
|
$ |
69,107 |
|
|
|||||||||
|
Earnings/(loss) per share—basic |
$ |
0.33 |
|
$ |
0.30 |
|
$ |
(0.17 |
) |
$ |
0.29 |
|
$ |
0.14(4 |
) |
$ |
0.49 |
|
$ |
0.48 |
|
|
|||||||||
|
Earnings/(loss) per share—diluted |
$ |
0.32 |
|
$ |
0.28 |
|
$ |
(0.17 |
) |
$ |
0.28 |
|
$ |
0.13(4 |
) |
$ |
0.46 |
|
$ |
0.47 |
|
|
|||||||||
|
Weighted average common shares—basic |
|
147,570 |
|
|
149,001 |
|
|
138,005 |
|
|
136,340 |
|
|
139,584 |
|
|
144,894 |
|
|
141,736 |
|
|
|||||||||
|
Weighted average common shares—diluted |
|
156,179 |
|
|
156,276 |
|
|
138,005 |
|
|
143,314 |
|
|
150,675 |
|
|
153,767 |
|
|
146,360 |
|
|
|||||||||
|
As Adjusted (Non-GAAP(1)) |
|||||||||||||||||||||||||||||||
|
Total revenues |
$ |
179,375 |
$ |
177,160 |
$ |
159,470 |
$ |
147,434 |
$ |
125,616 |
|||||||||||||||||||||
|
Total operating expenses |
$ |
102,032 |
$ |
101,619 |
$ |
96,752 |
$ |
85,936 |
$ |
77,553 |
|||||||||||||||||||||
|
Operating income |
$ |
77,343 |
$ |
75,541 |
$ |
62,718 |
$ |
61,498 |
$ |
48,063 |
|||||||||||||||||||||
|
Income before income taxes |
$ |
65,679 |
$ |
63,354 |
$ |
54,654 |
$ |
53,840 |
$ |
45,318 |
|||||||||||||||||||||
|
Income tax expense |
$ |
16,199 |
$ |
15,274 |
$ |
14,061 |
$ |
12,605 |
$ |
10,842 |
|||||||||||||||||||||
|
Net income |
$ |
49,480 |
$ |
48,080 |
$ |
40,593 |
$ |
41,235 |
$ |
34,476 |
|||||||||||||||||||||
|
Earnings per share—diluted |
$ |
0.32 |
$ |
0.31 |
$ |
0.27 |
$ |
0.29 |
$ |
0.23 |
|||||||||||||||||||||
|
Weighted average common shares—diluted |
156,179 |
156,276 |
152,372 |
143,314 |
150,675 |
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QUARTERLY HIGHLIGHTS
Operating Revenues
- Operating revenues increased 1.3% from the second quarter of 2026 due to higher average AUM, partly offset by lower transaction fees from our European ETPs and lower performance fees. Operating revenues increased 42.8% from the third quarter of 2025 due to higher average AUM, a higher average advisory fee, revenues arising from the Ceres and Atlantic House acquisitions and increased other revenues from our European listed ETPs.
- Our average advisory fee was 0.36% for the second and third quarters of 2026 and 0.35% for the third quarter of 2025.
Operating Expenses
- Operating expenses were essentially unchanged from the second quarter of 2026.
- Operating expenses increased 31.6% from the third quarter of 2025 primarily due to higher incentive compensation and headcount, as well as increased fund management and administration expenses, intangible asset amortization related to the Ceres and Atlantic House acquisitions and third-party distribution fees, partly offset by lower acquisition-related costs.
Other Income/(Expenses)
- Interest expense decreased 9.0% from the second quarter of 2026, reflecting a lower level of debt outstanding. Interest expense increased 59.7% from the third quarter of 2025, reflecting a higher level of debt outstanding and higher interest rates.
- Interest income decreased 42.5% and 54.1% from the second quarter of 2026 and the third quarter of 2025, respectively, reflecting a lower level of interest earning assets following recent debt retirements and stock repurchases.
- Contingent consideration related to the Ceres acquisition decreased from $15.8 million on June 30, 2026 to $13.7 million at September 30, 2026, resulting in a $2.1 million gain on remeasurement recognized during the third quarter of 2026.
- Other losses and gains, net, was a loss of $0.04 million for the third quarter of 2026. Gains and losses generally arise on our financial instruments and investments owned, as well as from the sale of gold and cryptocurrency earned from advisory fees paid by our physically-backed gold and crypto ETPs, foreign exchange fluctuations and miscellaneous items.
Income Taxes
- Our effective income tax rate for the third quarter of 2026 was 23.7%, resulting in income tax expense of $15.3 million. The effective tax rate differs from the U.S. federal statutory rate of 21.0% primarily due to non-deductible executive compensation and state taxes, partly offset by a reduction in the capital loss valuation allowance.
- Our adjusted effective income tax rate for the third quarter of 2026 was 24.7%(1).
NINE MONTH HIGHLIGHTS
- Operating revenues increased 49.0% as compared to 2025 due to higher average AUM, a higher average advisory fee, revenues arising from the Ceres and Atlantic House acquisitions and increased other revenues from our European listed ETPs.
- Operating expenses increased 34.0% as compared to 2025 primarily due to higher incentive compensation and headcount, as well as increased fund management and administration expenses, third-party distribution fees and intangible asset amortization arising from the Ceres and Atlantic House acquisitions.
- Significant items reported in other income/(expense) in 2026 include: an increase in interest expense of 103.1% due to a higher level of debt outstanding and higher interest rates; a decrease in interest income of 4.6% reflecting a lower level of interest earning assets following recent debt retirements and stock repurchases; a remeasurement gain of $4.4 million on British pounds held to complete the Atlantic House acquisition, net gains on our financial instruments owned of $2.0 million, net losses on our investments of $0.4 million and $0.6 million of foreign currency remeasurement gains on U.S. dollars held by foreign subsidiaries. Gains and losses also generally arise from the sale of gold earned on advisory fees paid by our physically-backed gold ETPs, other foreign exchange fluctuations and miscellaneous items.
- Our effective income tax rate for 2026 was 35.1%, resulting in an income tax expense of $38.1 million. The effective tax rate differs from the federal statutory rate of 21.0% primarily due to non-deductible amounts associated with the repurchase of convertible notes.
CONFERENCE CALL DIAL-IN AND WEBCAST DETAILS
WisdomTree will discuss its results and operational highlights during a live webcast on Friday, October 30, 2026 at 11:00 a.m. ET, which, together with all earnings materials, can be accessed via WisdomTree’s investor relations website at https://ir.wisdomtree.com. A replay of the webcast will be available shortly after the call.
Participants also can dial in using the following numbers: (877) 407-9210 or (201) 689-8049. Click here to access the participant international toll-free access numbers.
To avoid delays, we encourage participants to log in or dial into the conference call 10 minutes ahead of the scheduled start time.
About WisdomTree
WisdomTree is a modern global asset manager with capabilities across public markets, private markets, tokenization and onchain finance. We offer a diverse suite of exchange-traded products, models and solutions, private market investments and blockchain-enabled products and services, helping investors shape their financial future and financial professionals grow their businesses. Through WisdomTree Onchain™, we combine tokenized investment products, infrastructure and distribution capabilities into an integrated financial services platform serving retail and institutional investors.
WisdomTree currently has approximately $175.0 billion in assets under management globally, inclusive of assets managed by Ceres as of the last reportable period.
For more information about WisdomTree visit: https://www.wisdomtree.com.
For more information about WisdomTree Onchain, visit: https://www.wisdomtree.com/onchain.
Please visit us on X at @WisdomTreeNews.
WisdomTree® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.
The WisdomTree Connect™ institutional platform and WisdomTree Prime® digital wallet and digital asset services are made available through WisdomTree Digital Movement, Inc., a federally registered money services business, state-licensed money transmitter and financial technology company (NMLS ID: 2372500) or WisdomTree Digital Trust Company, LLC, and may be limited where prohibited by law. WisdomTree Digital Trust Company, LLC is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business. Visit https://wisdomtreeconnect.com, https://www.wisdomtreeprime.com or the WisdomTree Prime mobile app for more information.
PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE CONNECT AND WISDOMTREE PRIME:
NOT FDIC INSURED | NO BANK GUARANTEE | NOT A BANK DEPOSIT | MAY LOSE VALUE | NOT SIPC PROTECTED | NOT INSURED, ENDORSED, INDEMNIFIED OR GUARANTEED BY ANY GOVERNMENT AGENCY
References to third-party platforms, protocols, or use cases are provided for informational purposes only and do not constitute an endorsement, recommendation, or solicitation by WisdomTree or its affiliates. WisdomTree and its affiliates do not control or operate such third-party platforms or protocols and are not responsible for their operation or performance.
| _______________________ | ||
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(1) |
|
See “Non-GAAP Financial Measurements.” |
|
(2) |
|
Revenue yield is computed by dividing our annualized adjusted operating revenues as reported in the GAAP to Non-GAAP Reconciliation herein by our average AUM during the period. |
|
(3) |
|
Adjusted operating margin is calculated as adjusted operating income divided by total revenues. Adjusted operating income excludes intangible asset amortization of $7.3 million for the nine months ended September 30, 2026 (none in the prior year period) and acquisition-related costs of $3.1 million and $4.4 million for the nine months ended September 30, 2026 and 2025, respectively. |
|
(4) |
|
Earnings per share (“EPS”) is calculated pursuant to the two-class method as it results in a lower EPS amount as compared to the treasury stock method. In addition, the three months ended September 30, 2025 includes $0.7 million of stock repurchase excise taxes, which is excluded from net income, but is required to be added to net income to arrive at income available to common stockholders in the calculation of EPS. This item is excluded from our EPS when computed on a non-GAAP basis. |
|
WISDOMTREE, INC. AND SUBSIDIARIES |
|||||||||||||||
|
|
Three Months Ended |
||||||||||||||
|
|
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
||||||||||
|
GLOBAL PRODUCTS ($ in millions) |
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
162,910 |
|
$ |
152,556 |
|
$ |
144,525 |
|
$ |
137,175 |
|
$ |
126,070 |
|
|
Add: Assets acquired—Ceres acquisition |
|
— |
|
|
— |
|
|
— |
|
|
1,812 |
|
|
— |
|
|
Add: Assets acquired—Atlantic House acquisition |
|
— |
|
|
4,137 |
|
|
— |
|
|
— |
|
|
— |
|
|
Inflows/(outflows) |
|
4,622 |
|
|
3,063 |
|
|
5,934 |
|
|
(283 |
) |
|
2,241 |
|
|
Market appreciation |
|
3,453 |
|
|
3,154 |
|
|
2,097 |
|
|
5,821 |
|
|
8,864 |
|
|
End of period assets |
$ |
170,985 |
|
$ |
162,910 |
|
$ |
152,556 |
|
$ |
144,525 |
|
$ |
137,175 |
|
|
Average assets during the period |
$ |
170,504 |
|
$ |
164,150 |
|
$ |
154,654 |
|
$ |
140,686 |
|
$ |
130,760 |
|
|
Average ETPs and tokenized products during the period |
$ |
168,466 |
|
$ |
162,151 |
|
$ |
152,716 |
|
$ |
138,871 |
|
$ |
130,760 |
|
|
Average ETP advisory fee during the period |
|
0.36% |
|
0.36% |
|
0.36% |
|
0.35% |
|
0.35% |
|||||
|
Total revenue yield |
|
0.42% |
|
0.43% |
|
0.42% |
|
0.42% |
|
0.38% |
|||||
|
Revenue days |
|
92 |
|
|
91 |
|
|
90 |
|
|
92 |
|
|
92 |
|
|
Number of products—end of the period |
|
434 |
|
|
428 |
|
|
414 |
|
|
405 |
|
|
397 |
|
|
ETPs AND ONCHAIN PRODUCTS |
|
|
|
|
|
||||||||||
|
U.S. LISTED ETFs ($ in millions) |
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
99,014 |
|
$ |
90,946 |
|
$ |
88,521 |
|
$ |
88,293 |
|
$ |
85,179 |
|
|
Inflows/(outflows) |
|
2,382 |
|
|
1,079 |
|
|
2,643 |
|
|
(1,108 |
) |
|
(445 |
) |
|
Market appreciation/(depreciation) |
|
240 |
|
|
6,989 |
|
|
(218 |
) |
|
1,336 |
|
|
3,559 |
|
|
End of period assets |
$ |
101,636 |
|
$ |
99,014 |
|
$ |
90,946 |
|
$ |
88,521 |
|
$ |
88,293 |
|
|
Average assets during the period |
$ |
101,620 |
|
$ |
96,585 |
|
$ |
91,742 |
|
$ |
88,074 |
|
$ |
87,205 |
|
|
Number of ETFs—end of the period |
|
93 |
|
|
92 |
|
|
90 |
|
|
85 |
|
|
84 |
|
|
EUROPEAN LISTED ETPs ($ in millions) |
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
61,106 |
|
$ |
58,758 |
|
$ |
53,345 |
|
$ |
48,290 |
|
$ |
40,541 |
|
|
Add: Assets acquired—Atlantic House acquisition |
|
— |
|
|
4,137 |
|
|
— |
|
|
— |
|
|
— |
|
|
Inflows |
|
1,731 |
|
|
2,090 |
|
|
3,118 |
|
|
609 |
|
|
2,448 |
|
|
Market appreciation/(depreciation) |
|
3,184 |
|
|
(3,879 |
) |
|
2,295 |
|
|
4,446 |
|
|
5,301 |
|
|
End of period assets |
$ |
66,021 |
|
$ |
61,106 |
|
$ |
58,758 |
|
$ |
53,345 |
|
$ |
48,290 |
|
|
Average assets during the period |
$ |
65,874 |
|
$ |
64,649 |
|
$ |
60,193 |
|
$ |
50,102 |
|
$ |
42,853 |
|
|
Number of ETPs—end of the period |
|
320 |
|
|
315 |
|
|
304 |
|
|
300 |
|
|
295 |
|
|
ONCHAIN AUM ($ in millions) |
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
761 |
|
$ |
867 |
|
$ |
770 |
|
$ |
592 |
|
$ |
350 |
|
|
Inflows/(outflows) |
|
509 |
|
|
(110 |
) |
|
98 |
|
|
179 |
|
|
238 |
|
|
Market appreciation/(depreciation) |
|
3 |
|
|
4 |
|
|
(1 |
) |
|
(1 |
) |
|
4 |
|
|
End of period assets |
$ |
1,273 |
|
$ |
761 |
|
$ |
867 |
|
$ |
770 |
|
$ |
592 |
|
|
Average assets during the period |
$ |
972 |
|
$ |
917 |
|
$ |
781 |
|
$ |
695 |
|
$ |
702 |
|
|
Number of products—end of the period |
|
19 |
|
|
19 |
|
|
19 |
|
|
19 |
|
|
18 |
|
|
PRIVATE ASSETS ($ in millions) |
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
2,029 |
|
$ |
1,985 |
|
$ |
1,889 |
|
$ |
— |
|
$ |
— |
|
|
Add: Assets acquired—Ceres acquisition |
|
— |
|
|
— |
|
|
— |
|
|
1,812 |
|
|
— |
|
|
Inflows |
|
— |
|
|
4 |
|
|
75 |
|
|
37 |
|
|
— |
|
|
Market appreciation |
|
26 |
|
|
40 |
|
|
21 |
|
|
40 |
|
|
— |
|
|
End of period assets |
$ |
2,055 |
|
$ |
2,029 |
|
$ |
1,985 |
|
$ |
1,889 |
|
$ |
— |
|
|
Average assets during the period |
$ |
2,038 |
|
$ |
1,999 |
|
$ |
1,938 |
|
$ |
1,815 |
|
$ |
— |
|
|
Number of products—end of the period |
|
2 |
|
|
2 |
|
|
1 |
|
|
1 |
|
|
— |
|
|
ETPs AND ONCHAIN PRODUCT CATEGORIES ($ in millions) |
|
|
|
|
|
||||||||||
|
U.S. Equity |
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
46,371 |
|
$ |
41,511 |
|
$ |
41,427 |
|
$ |
40,977 |
|
$ |
38,617 |
|
|
Inflows |
|
769 |
|
|
458 |
|
|
354 |
|
|
191 |
|
|
32 |
|
|
Market appreciation/(depreciation) |
|
57 |
|
|
4,402 |
|
|
(270 |
) |
|
259 |
|
|
2,328 |
|
|
End of period assets |
$ |
47,197 |
|
$ |
46,371 |
|
$ |
41,511 |
|
$ |
41,427 |
|
$ |
40,977 |
|
|
Average assets during the period |
$ |
47,740 |
|
$ |
44,884 |
|
$ |
42,394 |
|
$ |
41,161 |
|
$ |
40,024 |
|
|
|
|
|
|
|
|
||||||||||
|
Commodity & Currency |
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
37,586 |
|
$ |
40,310 |
|
$ |
36,980 |
|
$ |
31,705 |
|
$ |
26,696 |
|
|
Inflows |
|
1,009 |
|
|
1,890 |
|
|
35 |
|
|
177 |
|
|
1,096 |
|
|
Market appreciation/(depreciation) |
|
2,497 |
|
|
(4,614 |
) |
|
3,295 |
|
|
5,098 |
|
|
3,913 |
|
|
End of period assets |
$ |
41,092 |
|
$ |
37,586 |
|
$ |
40,310 |
|
$ |
36,980 |
|
$ |
31,705 |
|
|
Average assets during the period |
$ |
41,206 |
|
$ |
41,749 |
|
$ |
41,458 |
|
$ |
33,824 |
|
$ |
28,162 |
|
|
International Developed Market Equity |
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
32,219 |
|
$ |
29,186 |
|
$ |
25,616 |
|
$ |
23,893 |
|
$ |
21,725 |
|
|
(Outflows)/inflows |
|
(135 |
) |
|
749 |
|
|
3,495 |
|
|
1,147 |
|
|
478 |
|
|
Market appreciation |
|
422 |
|
|
2,284 |
|
|
75 |
|
|
576 |
|
|
1,690 |
|
|
End of period assets |
$ |
32,506 |
|
$ |
32,219 |
|
$ |
29,186 |
|
$ |
25,616 |
|
$ |
23,893 |
|
|
Average assets during the period |
$ |
32,909 |
|
$ |
32,022 |
|
$ |
29,349 |
|
$ |
24,708 |
|
$ |
22,481 |
|
|
Fixed Income |
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
22,658 |
|
$ |
22,395 |
|
$ |
21,074 |
|
$ |
22,509 |
|
$ |
22,543 |
|
|
Inflows/(outflows) |
|
2,719 |
|
|
320 |
|
|
1,272 |
|
|
(1,358 |
) |
|
(58 |
) |
|
Market (depreciation)/appreciation |
|
(200 |
) |
|
(57 |
) |
|
49 |
|
|
(77 |
) |
|
24 |
|
|
End of period assets |
$ |
25,177 |
|
$ |
22,658 |
|
$ |
22,395 |
|
$ |
21,074 |
|
$ |
22,509 |
|
|
Average assets during the period |
$ |
23,862 |
|
$ |
22,179 |
|
$ |
21,187 |
|
$ |
21,422 |
|
$ |
23,128 |
|
|
Emerging Market Equity |
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
11,279 |
|
$ |
10,143 |
|
$ |
10,643 |
|
$ |
10,855 |
|
$ |
10,957 |
|
|
Outflows |
|
(106 |
) |
|
(106 |
) |
|
(206 |
) |
|
(508 |
) |
|
(250 |
) |
|
Market (depreciation)/appreciation |
|
(80 |
) |
|
1,242 |
|
|
(294 |
) |
|
296 |
|
|
148 |
|
|
End of period assets |
$ |
11,093 |
|
$ |
11,279 |
|
$ |
10,143 |
|
$ |
10,643 |
|
$ |
10,855 |
|
|
Average assets during the period |
$ |
11,248 |
|
$ |
11,188 |
|
$ |
10,902 |
|
$ |
10,839 |
|
$ |
10,874 |
|
|
Alternatives |
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
5,708 |
|
$ |
1,580 |
|
$ |
1,379 |
|
$ |
1,155 |
|
$ |
814 |
|
|
Add: Assets acquired—Atlantic House acquisition |
|
— |
|
|
4,137 |
|
|
— |
|
|
— |
|
|
— |
|
|
Inflows |
|
52 |
|
|
31 |
|
|
207 |
|
|
163 |
|
|
231 |
|
|
Market appreciation/(depreciation) |
|
92 |
|
|
(40 |
) |
|
(6 |
) |
|
61 |
|
|
110 |
|
|
End of period assets |
$ |
5,852 |
|
$ |
5,708 |
|
$ |
1,580 |
|
$ |
1,379 |
|
$ |
1,155 |
|
|
Average assets during the period |
$ |
5,865 |
|
$ |
4,462 |
|
$ |
1,620 |
|
$ |
1,270 |
|
$ |
929 |
|
|
Leveraged & Inverse |
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
3,464 |
|
$ |
3,663 |
|
$ |
3,275 |
|
$ |
2,913 |
|
$ |
2,631 |
|
|
Inflows/(outflows) |
|
272 |
|
|
(354 |
) |
|
565 |
|
|
(15 |
) |
|
(52 |
) |
|
Market (depreciation)/appreciation |
|
(102 |
) |
|
155 |
|
|
(177 |
) |
|
377 |
|
|
334 |
|
|
End of period assets |
$ |
3,634 |
|
$ |
3,464 |
|
$ |
3,663 |
|
$ |
3,275 |
|
$ |
2,913 |
|
|
Average assets during the period |
$ |
3,665 |
|
$ |
3,772 |
|
$ |
3,785 |
|
$ |
3,097 |
|
$ |
2,750 |
|
|
Cryptocurrency |
|
|
|
|
|
||||||||||
|
Beginning of period assets |
$ |
1,596 |
|
$ |
1,783 |
|
$ |
2,242 |
|
$ |
3,168 |
|
$ |
2,087 |
|
|
Inflows/(outflows) |
|
42 |
|
|
71 |
|
|
137 |
|
|
(117 |
) |
|
764 |
|
|
Market appreciation/(depreciation) |
|
741 |
|
|
(258 |
) |
|
(596 |
) |
|
(809 |
) |
|
317 |
|
|
End of period assets |
$ |
2,379 |
|
$ |
1,596 |
|
$ |
1,783 |
|
$ |
2,242 |
|
$ |
3,168 |
|
|
Average assets during the period |
$ |
1,971 |
|
$ |
1,895 |
|
$ |
2,021 |
|
$ |
2,550 |
|
$ |
2,412 |
|
|
|
|
|
|
|
|
||||||||||
|
Headcount |
|
438 |
|
|
414 |
|
|
357 |
|
|
360 |
|
|
338 |
|
Note: Previously issued statistics may be restated due to fund closures and trade adjustments.
Source: WisdomTree
|
WISDOMTREE, INC. AND SUBSIDIARIES |
||||||
|
|
Sept. 30, |
Dec. 31, |
||||
|
|
(Unaudited) |
|
||||
|
ASSETS |
|
|
||||
|
Current assets: |
|
|
||||
|
Cash, cash equivalents and restricted cash |
$ |
299,740 |
|
$ |
311,732 |
|
|
Financial instruments owned, at fair value |
|
41,014 |
|
|
107,117 |
|
|
Accounts receivable |
|
72,696 |
|
|
64,452 |
|
|
Prepaid expenses |
|
11,326 |
|
|
7,338 |
|
|
Other current assets |
|
2,304 |
|
|
1,723 |
|
|
Total current assets |
|
427,080 |
|
|
492,362 |
|
|
Fixed assets, net |
|
548 |
|
|
431 |
|
|
Deferred tax assets, net |
|
— |
|
|
9,803 |
|
|
Investments |
|
31,747 |
|
|
29,075 |
|
|
Right of use assets—operating leases |
|
2,324 |
|
|
2,764 |
|
|
Goodwill |
|
360,495 |
|
|
228,624 |
|
|
Intangible assets, net |
|
823,447 |
|
|
748,957 |
|
|
Other noncurrent assets |
|
1,445 |
|
|
925 |
|
|
Total assets |
$ |
1,647,086 |
|
$ |
1,512,941 |
|
|
|
|
|||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|||||
|
LIABILITIES |
|
|||||
|
Current liabilities: |
|
|||||
|
Compensation and benefits payable |
$ |
48,286 |
|
$ |
52,435 |
|
|
Fund management and administration payable |
|
31,766 |
|
|
29,448 |
|
|
Payable to Gold Bullion Holdings (Jersey) Limited (“GBH”) |
|
14,667 |
|
|
13,940 |
|
|
Income taxes payable |
|
3,889 |
|
|
2,295 |
|
|
Operating lease liabilities |
|
1,752 |
|
|
1,614 |
|
|
Convertible notes—current |
|
— |
|
|
149,604 |
|
|
Accounts payable and other liabilities |
|
20,212 |
|
|
32,720 |
|
|
Total current liabilities |
|
120,572 |
|
|
282,056 |
|
|
Convertible notes—long term |
|
1,058,716 |
|
|
804,203 |
|
|
Contingent consideration |
|
13,697 |
|
|
11,844 |
|
|
Deferred tax liabilities |
|
7,776 |
|
|
— |
|
|
Operating lease liabilities—long term |
|
582 |
|
|
1,166 |
|
|
Total liabilities |
|
1,201,343 |
|
|
1,099,269 |
|
|
STOCKHOLDERS’ EQUITY |
|
|||||
|
Common stock, par value $0.01; 400,000 shares authorized: |
|
|
||||
|
Issued and outstanding: 151,154 and 140,713 at September 30, 2026 and December 31, 2025, respectively |
|
1,512 |
|
|
1,407 |
|
|
Additional paid-in capital |
|
168,751 |
|
|
189,244 |
|
|
Accumulated other comprehensive (loss)/income |
|
(2,527 |
) |
|
2,227 |
|
|
Retained earnings |
|
278,007 |
|
|
220,794 |
|
|
Total stockholders’ equity |
|
445,743 |
|
|
413,672 |
|
|
Total liabilities and stockholders’ equity |
$ |
1,647,086 |
|
$ |
1,512,941 |
|
|
|
|
|
||||
|
WISDOMTREE, INC. AND SUBSIDIARIES (Unaudited) |
|||||||
|
Nine Months Ended September 30, |
|||||||
|
2026 |
2025 |
||||||
|
Cash flows from operating activities: |
|||||||
|
Net income |
$ |
70,369 |
|
$ |
69,107 |
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|||||
|
Advisory and license fees paid in gold, other precious metals and cryptocurrency |
|
(69,127 |
) |
|
(51,354 |
) |
|
|
Loss on repurchase of convertible notes |
|
68,925 |
|
|
13,011 |
|
|
|
Stock-based compensation |
|
23,701 |
|
|
16,645 |
|
|
|
Depreciation and amortization |
|
9,539 |
|
|
1,735 |
|
|
|
Amortization of issuance costs—convertible notes |
|
3,546 |
|
|
2,151 |
|
|
|
Gains on financial instruments owned, at fair value |
|
(2,015 |
) |
|
(1,914 |
) |
|
|
Increase in fair value of contingent consideration |
|
1,853 |
|
|
— |
|
|
|
Deferred income taxes |
|
(1,512 |
) |
|
2,628 |
|
|
|
Amortization of right of use asset |
|
1,491 |
|
|
1,003 |
|
|
|
Imputed interest on payable to GBH |
|
727 |
|
|
1,405 |
|
|
|
Losses on investments |
|
435 |
|
|
49 |
|
|
|
Changes in operating assets and liabilities: |
|
|
|||||
|
Accounts receivable |
|
(2,887 |
) |
|
582 |
|
|
|
Income taxes payable |
|
1,294 |
|
|
(40 |
) |
|
|
Prepaid expenses |
|
(2,917 |
) |
|
(2,351 |
) |
|
|
Gold and other precious metals |
|
69,733 |
|
|
49,686 |
|
|
|
Other assets |
|
(27 |
) |
|
(482 |
) |
|
|
Fund management and administration payable |
|
2,614 |
|
|
(749 |
) |
|
|
Compensation and benefits payable |
|
(8,412 |
) |
|
(6,328 |
) |
|
|
Operating lease liabilities |
|
(1,480 |
) |
|
(987 |
) |
|
|
Accounts payable and other liabilities |
|
(12,705 |
) |
|
(540 |
) |
|
|
Net cash provided by operating activities |
|
153,145 |
|
|
93,257 |
|
|
|
Cash flows from investing activities: |
|
|
|||||
|
Purchase of financial instruments owned, at fair value |
|
(20,512 |
) |
|
(25,314 |
) |
|
|
Purchase of investments |
|
(3,107 |
) |
|
(17,553 |
) |
|
|
Cash paid—software development |
|
(2,659 |
) |
|
(2,015 |
) |
|
|
Purchase of fixed assets |
|
(252 |
) |
|
(154 |
) |
|
|
Proceeds from the sale of financial instruments owned, at fair value |
|
87,219 |
|
|
8,860 |
|
|
|
Cash paid—Atlantic House acquisition, net of cash acquired |
|
(197,488 |
) |
|
— |
|
|
|
Net cash used in investing activities |
|
(136,799 |
) |
|
(36,176 |
) |
|
|
Cash flows from financing activities: |
|
|
|||||
|
Repurchase of convertible notes |
|
(542,545 |
) |
|
(36,681 |
) |
|
|
Common stock repurchased |
|
(61,506 |
) |
|
(102,732 |
) |
|
|
Dividends paid |
|
(13,451 |
) |
|
(13,218 |
) |
|
|
Issuance costs—convertible notes |
|
(12,593 |
) |
|
(11,064 |
) |
|
|
Proceeds from the issuance of convertible notes |
|
603,750 |
|
|
475,000 |
|
|
|
Net cash (used in)/provided by financing activities |
|
(26,345 |
) |
|
311,305 |
|
|
|
(Decrease)/increase in cash flow due to changes in foreign exchange rate |
|
(1,993 |
) |
|
6,274 |
|
|
|
Net (decrease)/increase in cash, cash equivalents and restricted cash |
|
(11,992 |
) |
|
374,660 |
|
|
|
Cash, cash equivalents and restricted cash—beginning of year |
|
311,732 |
|
|
181,191 |
|
|
|
Cash, cash equivalents and restricted cash—end of period |
$ |
299,740 |
|
$ |
555,851 |
|
|
|
Supplemental disclosure of cash flow information: |
|
||||||
|
Cash paid for income taxes |
$ |
35,060 |
|
$ |
19,999 |
|
|
|
Cash paid for interest |
$ |
45,128 |
|
$ |
15,198 |
|
|
NON-GAAP FINANCIAL MEASUREMENTS
In an effort to provide additional information regarding our results as determined by GAAP, we also disclose certain non-GAAP information which we believe provides useful and meaningful information. Our management reviews these non-GAAP financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-GAAP measurements so as to share this perspective of management. Non-GAAP measurements do not have any standardized meaning, do not replace nor are they superior to GAAP financial measurements and are unlikely to be comparable to similar measures presented by other companies. These non-GAAP financial measurements should be considered in the context with our GAAP results. The non-GAAP financial measurements contained in this press release include the following:
Adjusted Operating Income, Operating Expenses, Income Before Income Taxes, Income Tax Expense, Net Income and Diluted Earnings per Share
We disclose adjusted operating income, operating expenses, income before income taxes, income tax expense, net income and diluted earnings per share as non-GAAP financial measurements in order to report our results exclusive of items that are non-recurring or not core to our operating business. We believe presenting these non-GAAP financial measurements provides investors with a consistent way to analyze our performance. These non-GAAP financial measurements exclude the following:
Gains or losses on financial instruments owned: We account for our financial instruments owned as trading securities, which requires these instruments to be measured at fair value with gains and losses reported in net income. We exclude these items when calculating our non-GAAP financial measurements as the gains and losses introduce earnings volatility and are not core to our operating business.
Foreign currency remeasurement gains and losses on U.S. dollars held by foreign subsidiaries: GAAP requires account balances to be remeasured into an entity’s functional currency, with resulting gains and losses reported in net income. Foreign subsidiaries holding U.S. dollars remeasure these balances into their functional currencies and recognize the gains and losses. Also excluded are remeasurement gains on British pounds held to complete the Atlantic House acquisition. We exclude remeasurement effects from our non-GAAP financial measures, as they introduce earnings volatility, are not core to our operations and arise from balances denominated in our reporting currency.
Tax windfalls and shortfalls upon vesting of stock-based compensation awards: GAAP requires the recognition of tax windfalls and shortfalls within income tax expense. These items arise upon the vesting of stock-based compensation awards and the magnitude is directly correlated to the number of awards vesting/exercised, as well as the difference between the price of our stock on the date the award was granted and the date the award vested or was exercised. We exclude these items when calculating our non-GAAP financial measurements as they introduce earnings volatility and are not core to our operating business.
Remeasurement of contingent consideration arising from the Ceres acquisition: On October 1, 2025, we completed the Ceres acquisition for aggregate consideration consisting of (i) $275 million in cash payable at closing, subject to customary post-closing adjustments and (ii) contingent consideration of up to $225 million, payable in 2030, contingent upon Ceres achieving a compound annual growth rate in revenues of 12% to 22% during the measurement period of January 1, 2025 through December 31, 2029. GAAP requires contingent consideration to be re-measured each reporting period with changes in fair value reported in net income. We exclude changes in fair value of contingent consideration when calculating our non-GAAP financial measurements as these items are not core to our operating business.
Other items: Amortization of intangible assets, changes in deferred tax asset valuation allowance, imputed interest on our payable to Gold Bullion Holdings (Jersey) Limited (“GBH”), gains and losses recognized on our investments, losses related to convertible notes transactions and acquisition-related costs are excluded when calculating our non-GAAP financial measurements.
Adjusted Effective Income Tax Rate
We disclose our adjusted effective income tax rate as a non-GAAP financial measurement in order to report our effective income tax rate exclusive of items that are non-recurring or not core to our operating business. We believe reporting our adjusted effective income tax rate provides investors with a consistent way to analyze our income taxes. Our adjusted effective income tax rate is calculated by dividing adjusted income tax expense by adjusted income before income taxes. See above for information regarding the items that are excluded.
Gross Margin and Gross Margin Percentage
We disclose our gross margin and gross margin percentage as non-GAAP financial measurements because we believe they provide investors with a consistent way to analyze the amount we retain after paying third-party service providers to operate our ETPs. These measures also assist us in analyzing the profitability of our products. We define gross margin as total adjusted operating revenues less fund management and administration expenses. Gross margin percentage is calculated as gross margin divided by total adjusted operating revenues.
|
GAAP to NON-GAAP RECONCILIATION (CONSOLIDATED) |
||||||||||||||||||||
|
|
Three Months Ended |
|||||||||||||||||||
|
Adjusted Net Income and Diluted Earnings per Share: |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
|||||||||||||||
|
|
||||||||||||||||||||
|
Net income/(loss), as reported |
$ |
49,216 |
|
$ |
44,284 |
|
$ |
(23,131 |
) |
$ |
40,026 |
|
$ |
19,701 |
|
|||||
|
Add back: Amortization of intangible assets arising from the Ceres and Atlantic House acquisitions, net of income taxes |
|
2,426 |
|
|
1,969 |
|
|
1,087 |
|
|
1,086 |
|
|
— |
|
|||||
|
(Deduct)/add back: (Decrease)/increase in fair value of contingent consideration, net of income taxes |
|
(1,566 |
) |
|
1,030 |
|
|
1,940 |
|
|
538 |
|
|
— |
|
|||||
|
(Deduct)/add back: (Decrease)/increase in deferred tax asset valuation allowance on capital losses |
|
(636 |
) |
|
(1,615 |
) |
|
151 |
|
|
(1,237 |
) |
|
(24 |
) |
|||||
|
Add back: Imputed interest on payable to GBH, net of income taxes |
|
189 |
|
|
183 |
|
|
179 |
|
|
285 |
|
|
364 |
|
|||||
|
(Deduct)/add back: Foreign currency remeasurement (gains)/losses on U.S. dollar balances, net of income taxes |
|
(98 |
) |
|
36 |
|
|
(435 |
) |
|
(141 |
) |
|
— |
|
|||||
|
(Deduct)/add back: (Gains)/losses on financial instruments owned, net of income taxes |
|
(49 |
) |
|
(2,143 |
) |
|
668 |
|
|
8 |
|
|
(810 |
) |
|||||
|
(Deduct)/add back: (Gains)/losses recognized on investments, net of income taxes |
|
(2 |
) |
|
(11 |
) |
|
342 |
|
|
(75 |
) |
|
734 |
|
|||||
|
Add back: Losses related to convertible notes transactions, net of income taxes |
|
— |
|
|
6,572 |
|
|
62,280 |
|
|
505 |
|
|
12,763 |
|
|||||
|
Deduct: Foreign currency remeasurement gains on British pounds held to complete the Atlantic House acquisition, net of income taxes |
|
— |
|
|
(3,277 |
) |
|
— |
|
|
— |
|
|
— |
|
|||||
|
Add back: Acquisition-related costs, net of income taxes |
|
— |
|
|
1,118 |
|
|
1,933 |
|
|
240 |
|
|
1,824 |
|
|||||
|
Deduct: Tax windfalls upon vesting of stock-based compensation awards |
|
— |
|
|
(66 |
) |
|
(4,421 |
) |
|
— |
|
|
(76 |
) |
|||||
|
Adjusted net income |
$ |
49,480 |
|
$ |
48,080 |
|
$ |
40,593 |
|
$ |
41,235 |
|
$ |
34,476 |
|
|||||
|
Weighted average common shares—diluted |
|
156,179 |
|
|
156,276 |
|
|
152,372 |
|
|
143,314 |
|
|
150,675 |
|
|||||
|
Adjusted earnings per share—diluted |
$ |
0.32 |
|
$ |
0.31 |
|
$ |
0.27 |
|
$ |
0.29 |
|
$ |
0.23 |
|
|||||
|
|
Three Months Ended |
|||||||||||||||||||
|
Gross Margin and Gross Margin Percentage: |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Operating revenues |
$ |
179,375 |
|
$ |
177,160 |
|
$ |
159,470 |
|
$ |
147,434 |
|
$ |
125,616 |
|
|||||
|
Deduct: Fund management and administration |
|
(30,532 |
) |
|
(30,229 |
) |
|
(24,880 |
) |
|
(24,830 |
) |
|
(22,353 |
) |
|||||
|
Gross margin |
$ |
148,843 |
|
$ |
146,931 |
|
$ |
134,590 |
|
$ |
122,604 |
|
$ |
103,263 |
|
|||||
|
Gross margin percentage |
|
83.0% |
|
82.9% |
|
84.4% |
|
83.2% |
|
82.2% |
||||||||||
|
|
Three Months Ended |
|||||||||||||||||||
|
Adjusted Operating Income and Adjusted Operating Income Margin: |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Operating revenues |
$ |
179,375 |
|
$ |
177,160 |
|
$ |
159,470 |
|
$ |
147,434 |
|
$ |
125,616 |
|
|||||
|
Operating income |
|
74,122 |
|
|
71,811 |
|
|
59,350 |
|
|
59,747 |
|
$ |
45,654 |
|
|||||
|
Add back: Amortization of intangible assets arising from the Ceres and Atlantic House acquisitions |
|
3,221 |
|
|
2,612 |
|
|
1,435 |
|
|
1,434 |
|
|
— |
|
|||||
|
Add back: Acquisition-related costs |
|
— |
|
|
1,118 |
|
|
1,933 |
|
|
317 |
|
|
2,409 |
|
|||||
|
Adjusted operating income |
$ |
77,343 |
|
$ |
75,541 |
|
$ |
62,718 |
|
$ |
61,498 |
|
$ |
48,063 |
|
|||||
|
Adjusted operating income margin |
|
43.1% |
|
42.6% |
|
39.3% |
|
41.7% |
|
38.3% |
||||||||||
|
|
Three Months Ended |
||||||||||||||||||
|
Adjusted Total Operating Expenses: |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
Total operating expenses |
$ |
105,253 |
|
$ |
105,349 |
|
$ |
100,120 |
|
$ |
87,687 |
|
$ |
79,962 |
|
||||
|
Deduct: Amortization of intangible assets arising from the Ceres and Atlantic House acquisitions |
|
(3,221 |
) |
|
(2,612 |
) |
|
(1,435 |
) |
|
(1,434 |
) |
|
— |
|
||||
|
Deduct: Acquisition-related costs |
|
— |
|
|
(1,118 |
) |
|
(1,933 |
) |
|
(317 |
) |
|
(2,409 |
) |
||||
|
Adjusted total operating expenses |
$ |
102,032 |
|
$ |
101,619 |
|
$ |
96,752 |
|
$ |
85,936 |
|
$ |
77,553 |
|
||||
|
|
Three Months Ended |
||||||||||||||||||
|
Adjusted Income Before Income Taxes: |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
Income/(loss) before income taxes |
$ |
64,477 |
|
$ |
58,547 |
|
$ |
(14,582 |
) |
$ |
50,463 |
|
$ |
29,517 |
|
||||
|
Add back: Amortization of intangible assets arising from the Ceres and Atlantic House acquisitions |
|
3,221 |
|
|
2,612 |
|
|
1,435 |
|
|
1,434 |
|
|
— |
|
||||
|
(Deduct)/add back: (Decrease)/increase in fair value of contingent consideration |
|
(2,069 |
) |
|
1,360 |
|
|
2,562 |
|
|
710 |
|
|
— |
|
||||
|
Add back: Imputed interest on payable to GBH |
|
249 |
|
|
242 |
|
|
236 |
|
|
377 |
|
|
481 |
|
||||
|
(Deduct)/add back: Foreign currency remeasurement (gains)/losses on U.S. dollar balances, net of income taxes |
|
(132 |
) |
|
68 |
|
|
(566 |
) |
|
(205 |
) |
|
— |
|
||||
|
(Deduct)/add back: (Gains)/losses on financial instruments owned |
|
(65 |
) |
|
(2,831 |
) |
|
882 |
|
|
10 |
|
|
(1,070 |
) |
||||
|
(Deduct)/add back: (Gains)/losses recognized on investments |
|
(2 |
) |
|
(15 |
) |
|
452 |
|
|
(99 |
) |
|
970 |
|
||||
|
Add back: Losses related to convertible notes transactions |
|
— |
|
|
6,623 |
|
|
62,302 |
|
|
833 |
|
|
13,011 |
|
||||
|
Deduct: Foreign currency remeasurement gains on British pounds held to complete the Atlantic House acquisition, net of income taxes |
|
— |
|
|
(4,370 |
) |
|
— |
|
|
— |
|
|
— |
|
||||
|
Add back: Acquisition-related costs |
|
— |
|
|
1,118 |
|
|
1,933 |
|
|
317 |
|
|
2,409 |
|
||||
|
Adjusted income before income taxes |
$ |
65,679 |
|
$ |
63,354 |
|
$ |
54,654 |
|
$ |
53,840 |
|
$ |
45,318 |
|
||||
|
|
Three Months Ended |
|||||||||||||||||||
|
Adjusted Income Tax Expense and Adjusted Effective Income Tax Rate: |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
Sept. 30, |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Adjusted income before income taxes (above) |
$ |
65,679 |
|
$ |
63,354 |
|
$ |
54,654 |
|
$ |
53,840 |
|
$ |
45,318 |
|
|||||
|
Income tax expense |
$ |
15,261 |
|
$ |
14,263 |
|
$ |
8,549 |
|
$ |
10,437 |
|
$ |
9,816 |
|
|||||
|
Add back: Tax benefit of intangible asset amortization arising from the Ceres and Atlantic House acquisitions |
|
795 |
|
|
643 |
|
|
348 |
|
|
348 |
|
|
— |
|
|||||
|
Add back/(deduct): decrease/(increase) in deferred tax asset valuation allowance on capital losses |
|
636 |
|
|
1,615 |
|
|
(151 |
) |
|
1,237 |
|
|
24 |
|
|||||
|
(Deduct)/add back: Tax (expense)/benefit arising from (decrease)/increase in fair value of contingent consideration |
|
(503 |
) |
|
330 |
|
|
622 |
|
|
172 |
|
|
— |
|
|||||
|
Add back: Tax benefit on imputed interest |
|
60 |
|
|
59 |
|
|
57 |
|
|
92 |
|
|
117 |
|
|||||
|
(Deduct)/add back: Tax (expense)/benefit on foreign currency remeasurement losses/(gains) on U.S. dollar balances |
|
(34 |
) |
|
32 |
|
|
(131 |
) |
|
(64 |
) |
|
— |
|
|||||
|
(Deduct)/add back: Tax (expense)/benefit arising from (gains)/losses on financial instruments owned |
|
(16 |
) |
|
(688 |
) |
|
214 |
|
|
2 |
|
|
(260 |
) |
|||||
|
Deduct: Tax expense on foreign currency remeasurement gains on British pounds held to complete the Atlantic House acquisition |
|
— |
|
|
(1,093 |
) |
|
— |
|
|
— |
|
|
— |
|
|||||
|
Add back: Tax windfalls upon vesting of stock-based compensation awards |
|
— |
|
|
66 |
|
|
4,421 |
|
|
— |
|
|
76 |
|
|||||
|
Add back: Tax benefit arising from convertible notes transactions |
|
— |
|
|
51 |
|
|
22 |
|
|
328 |
|
|
248 |
|
|||||
|
(Deduct)/add back: Tax (expense)/benefit on (gains)/losses on investments |
|
— |
|
|
(4 |
) |
|
110 |
|
|
(24 |
) |
|
236 |
|
|||||
|
Add back: Tax benefit on acquisition-related costs |
|
— |
|
|
— |
|
|
— |
|
|
77 |
|
|
585 |
|
|||||
|
Adjusted income tax expense |
$ |
16,199 |
|
$ |
15,274 |
|
$ |
14,061 |
|
$ |
12,605 |
|
$ |
10,842 |
|
|||||
|
Adjusted effective income tax rate |
|
24.7% |
|
24.1% |
|
25.7% |
|
23.4% |
23.9% |
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, the risks described below. If one or more of these or other risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this press release completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.
In particular, forward-looking statements in this press release may include statements about:
- anticipated trends, conditions and investor sentiment in the global markets and ETPs;
- anticipated levels of inflows into and outflows out of our ETPs;
- our ability to deliver favorable rates of return to investors;
- competition in our business;
- whether we will experience future growth;
- our ability to develop new products and services and their potential for success;
- our ability to maintain current vendors or find new vendors to provide services to us at favorable costs;
- our ability to successfully implement our WisdomTree Onchain™ strategy relating to digital assets and blockchain-enabled financial services and achieve its objectives;
- our ability to successfully operate and expand our business in non-U.S. markets;
- the effect of laws and regulations that apply to our business;
- the potential benefits arising from the Ceres and Atlantic House acquisitions, including financial or strategic outcomes; and
- our ability to successfully implement our strategic goals relating to the acquisitions and integrate the acquired businesses.
Our business is subject to many risks and uncertainties, including without limitation:
- declining prices of securities, gold and other precious metals and other commodities and changes in interest rates and general market conditions can adversely affect our business by reducing the market value of the assets we manage or causing WisdomTree ETP investors to sell their fund shares and trigger redemptions;
- fluctuations in the amount and mix of our AUM, whether caused by disruptions in the financial markets or otherwise, including but not limited to events such as a pandemic or war, geopolitical conflicts, political events, acts of terrorism and other matters beyond our control, may negatively impact revenues and operating margins, and may impede our ability to refinance our debt upon maturity or increase the cost of borrowing upon a refinancing;
- competitive pressures could reduce revenues and profit margins;
- we derive a substantial portion of our revenues from a limited number of products, and, as a result, our operating results are particularly exposed to investor sentiment toward investing in the products’ strategies and our ability to maintain the AUM of these products, as well as the performance of these products and market-specific and political and economic risk;
- a significant portion of our AUM is held in products with exposure to U.S. and international developed markets, and we therefore have exposure to domestic and foreign market conditions and are subject to currency exchange rate risks;
- withdrawals or broad changes in investments in our ETPs by investors with significant positions may negatively impact revenues and operating margins;
- we face increased operational, regulatory, financial and other risks as a result of conducting our business internationally, and as we expand our digital assets product offerings and services beyond our existing ETP business;
- many of our ETPs have a limited track record, and poor investment performance could cause our revenues to decline; and
- we depend on third parties to provide many critical services to operate our business and our ETPs. The failure of key vendors to adequately provide such services could materially affect our operating business and harm WisdomTree ETP investors.
Additional risks include those associated with the Ceres and Atlantic House acquisitions, including the risk that the integrations may be more difficult, time-consuming or costly than expected, or that expected benefits (including projected business growth, realization of synergies, or the ability to raise additional capital into the funds of the acquired businesses) may not be realized as anticipated. Other factors, such as general economic conditions, including currency exchange rate fluctuations, also may have an effect on the results of our operations. For a more complete description of the risks noted above and other risks that could cause our actual results to differ from our current expectations, see “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.
The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Therefore, these forward-looking statements do not represent our views as of any date other than the date of this press release.
Category: Business Update
View source version on businesswire.com: https://www.businesswire.com/news/home/20261030615267/en/
Investor Relations
Jeremy Campbell
+1.917.267.3859
jeremy.campbell@wisdomtree.com
Media Relations
Jessica Zaloom
+1.917.267.3735
jzaloom@wisdomtree.com
Source: WisdomTree
Released October 30, 2026