Record AUM of $137.2 Billion
11% Annualized Organic Growth Rate Across All Products
Diluted Earnings Per Share of $0.13 ($0.23, as Adjusted)
NEW YORK--(BUSINESS WIRE)--October 31, 2025--
WisdomTree, Inc. $(WT)$, a global financial innovator, today reported financial results for the third quarter of 2025.
$19.7 million of net income ($34.5(1) million of net income, as adjusted), including a loss on extinguishment of convertible notes of $13.0 million arising from the repurchase of $24.0 million aggregate principal amount of our 5.75% convertible senior notes due 2028 (the "2028 Notes"). See "Non-GAAP Financial Measurements" for additional information.
$137.2 billion of ending AUM, an increase of 8.8% from the prior quarter arising from market appreciation and net inflows.
$2.2 billion of net inflows, primarily driven by inflows into our commodity, cryptocurrency and international developed equity products.
0.35% average advisory fee, unchanged from the prior quarter.
0.38% adjusted revenue yield(2) , unchanged from the prior quarter.
$125.6 million of operating revenues, an increase of 11.5% from the prior quarter due to higher average AUM and higher other revenues attributable to our European listed exchange-traded products ("ETPs").
82.2% gross margin(1) , a 1.1 point increase from the prior quarter due to higher revenues.
36.3% operating income margin (38.3%(1) as adjusted), a 5.5 point increase (5.8 point increase, as adjusted) from the prior quarter primarily due to higher revenues.
$475.0 million issuance of convertible senior notes due 2030 (the "2030 Notes"), bearing interest at a rate of 4.625% and issued with a conversion price of $19.15 per share. Concurrent with the issuance, we paid $36.7 million to repurchase $24.0 million aggregate principal amount of our 2028 Notes (with a conversion price of $9.54 per share).
$90.0 million of cash consideration paid to repurchase approximately 6.8 million shares of our common stock in connection with the issuance of the 2030 Notes.
$0.03 quarterly dividend declared, payable on November 26, 2025 to stockholders of record as of the close of business on November 12, 2025.
Update from Jarrett Lilien, WisdomTree COO and President
We're executing with consistency and focus, delivering over $2.2 billion of net inflows in Q3, record firmwide AUM of $137 billion, and strong performance across every business line. Model portfolios remain one of our fastest-growing areas, with AUM reaching nearly $5.9 billion, up more than 50% year-to-date, and continued advisor adoption led by custom model solutions. We're building meaningful momentum and are well positioned to capture future growth. ------------------------------------------------------------------------------
Update from Jonathan Steinberg, WisdomTree CEO
WisdomTree's foundation is the strongest it's ever been, supported by a diversified, scalable platform that continues to deliver broad-based inflows and consistent execution across our global business. Our expansion into private assets through the acquisition of Ceres Partners, along with continued leadership in tokenization, positions WisdomTree for long-term, technology-driven growth and sustained value creation. ------------------------------------------------------------------------------
OPERATING AND FINANCIAL HIGHLIGHTS
Three Months Ended
---------------------------------------
Sept. June Mar. Dec. Sept.
30, 30, 31, 31, 30,
2025 2025 2025 2024 2024
------ ------ ------ ------ -------
Consolidated
Operating Highlights
($ in billions):
---------------------
AUM--end of period $137.2 $126.1 $115.8 $109.8 $ 112.6
Net
inflows/(outflows) $ 2.2 $ 3.5 $ 3.1 $(0.3) $ (2.4)
Average AUM $130.8 $119.2 $114.6 $112.3 $ 110.4
Average advisory
fee 0.35% 0.35% 0.35% 0.36% 0.37%
Adjusted revenue
yield(2) 0.38% 0.38% 0.38% 0.39% 0.39%
Consolidated
Financial Highlights
($ in millions,
except per share
amounts):
---------------------
Operating revenues $125.6 $112.6 $108.1 $110.7 $ 113.2
Net income/(loss) $ 19.7 $ 24.8 $ 24.6 $ 27.3 $ (4.5)
Diluted
earnings/(loss)
per share $ 0.13 $ 0.17 $ 0.17 $ 0.18 $(0.13)
Operating income
margin 36.3% 30.8% 31.6% 31.7% 36.0%
As Adjusted
(Non-GAAP(1) ):
---------------------
Operating revenues,
as adjusted $125.6 $112.6 $108.1 $110.5 $ 109.5
Gross margin 82.2% 81.1% 80.8% 79.3% 80.8%
Net income, as
adjusted $ 34.5 $ 25.9 $ 23.0 $ 25.3 $ 28.8
Diluted earnings
per share, as
adjusted $ 0.23 $ 0.18 $ 0.16 $ 0.17 $ 0.18
Operating income
margin, as
adjusted 38.3% 32.5% 31.6% 31.7% 37.3%
RECENT BUSINESS DEVELOPMENTS
Company News In August 2025, we completed a private offering of $475.0 million in aggregate principal amount of our 2030 Notes and concurrently repurchased (1) $24.0 million aggregate principal amount of our 2028 Notes, (2) approximately 6.8 million shares of our common stock in privately negotiated transactions and (3) used $275.0 million of the proceeds to finance the acquisition of Ceres Partners, LLC, a leading U.S.-based alternative asset manager specializing in farmland investments. In September 2025, WisdomTree's CEO and Founder, Jonathan Steinberg, was named "CEO of the Year" at the 2025 Wealth Management Industry Awards; and three WisdomTree leaders were recognized in INvolve's 2025 "Heroes Role Model Lists supported by YouTube," for advancing inclusion in the workplace. In October 2025,WisdomTree completed the acquisition of Ceres Partners, LLC; Beena Joseph was appointed as Global Head of Human Resources; The Bank of New York Mellon Corporation, a global financial services company, was appointed to serve as WisdomTree's core banking-as-a-service (BaaS) infrastructure provider for WisdomTree Prime$(R)$, the firm's retail platform for tokenized assets and cryptocurrency; and Our Board of Directors approved an increase of $190 million to our share repurchase program, bringing the total authorization to $250 million, which expires on April 27, 2028. Product News In September and October 2025, we launched the following products:WisdomTree Global Defense Fund $(WDGF)$ and the WisdomTree Asia Defense Fund (WDAF) on the NASDAQ; WisdomTree Quantum Computing Fund (WQTM) on the Chicago Board Options Exchange $(CBOE)$; WisdomTree Quantum Computing UCITS ETF (WQTM), in collaboration with subject matter experts, Classiq, and the WisdomTree Global Ex-USA Quality Dividend Growth UCITS ETF $(XUSA)$ on the London Stock Exchange, Börse Xetra and Borsa Italiana; WisdomTree Eurozone Efficient Core UCITS ETF (NTSZ) on the London Stock Exchange, Börse Xetra, Euronext Paris and Borsa Italiana; WisdomTree Physical Stellar Lumens ETP (XLMW) on Börse Xetra, the Swiss stock exchange SIX and Euronext exchanges in Paris and Amsterdam; and S&P 500 Euro-hedged ETN on Borsa Italiana. In October 2025, the WisdomTree Europe Defence UCITS ETF $(WDEF)$ surpassed $4 billion in AUM following its launch in March 2025; we cross-listed WisdomTree Global Efficient Core UCITS ETF (NTSG); WisdomTree Europe Equity Income UCITS ETF (EIE); WisdomTree Uranium and Nuclear Energy UCITS ETF (NCLR); and WisdomTree Quantum Computing UCITS ETF (WQTM) on Euronext Paris; and WisdomTree Physical Bitcoin ETP $(BTCW)$ and WisdomTree Physical Ethereum ETP $(ETHW)$ were made available to U.K. retail investors following the U.K. regulator lifting its crypto ETP retail ban. ------------------------------------------------------------------------------ WISDOMTREE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended --------------------------------------------------------- ----------------------- Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2025 2025 2025 2024 2024 2025 2024 --------- --------- --------- --------- ------------- --------- ------------ Operating Revenues: Advisory fees $114,485 $103,241 $ 99,549 $102,264 $ 101,659 $317,275 $293,098 Other revenues 11,131 9,380 8,533 8,433 11,509 29,044 23,942 ------- ------- ------- ------- -------- ------- ------- Total revenues 125,616 112,621 108,082 110,697 113,168 346,319 317,040 ------- ------- ------- ------- -------- ------- ------- Operating Expenses: Compensation and benefits 33,791 32,827 33,788 30,032 29,405 100,406 91,249 Fund management and administration 22,353 21,252 20,714 22,858 21,004 64,319 61,105 Marketing and advertising 4,788 5,330 4,813 6,117 4,897 14,931 14,415 Sales and business development 3,943 4,232 4,137 4,101 3,465 12,312 10,716
Professional fees 3,505 3,177 2,782 4,559 6,315 9,464 16,539
Occupancy,
communications and
equipment 1,601 1,559 1,482 1,423 1,397 4,642 3,921
Depreciation and
amortization 615 580 540 504 447 1,735 1,248
Third-party
distribution fees 3,977 4,083 3,112 3,161 2,983 11,172 7,977
Acquisition-related
costs 2,409 1,967 -- -- -- 4,376 --
Other 2,980 2,982 2,552 2,902 2,463 8,514 7,617
------- ------- ------- ------- -------- ------- -------
Total operating
expenses 79,962 77,989 73,920 75,657 72,376 231,871 214,787
------- ------- ------- ------- -------- ------- -------
Operating income 45,654 34,632 34,162 35,040 40,792 114,448 102,253
Other Income/(Expenses):
Interest expense (8,466) (5,490) (5,441) (5,616) (5,027) (19,397) (13,295)
Interest income 4,015 2,090 1,897 2,147 1,795 8,002 4,631
Loss on
extinguishment of
convertible notes (13,011) -- -- -- (30,632) (13,011) (30,632)
Other gains and
losses, net 1,325 638 (250) 2,627 (3,062) 1,713 (1,753)
------- ------- ------- ------- -------- ------- -------
Income before income
taxes 29,517 31,870 30,368 34,198 3,866 91,755 61,204
Income tax expense 9,816 7,093 5,739 6,890 8,351 22,648 21,819
------- ------- ------- ------- -------- ------- -------
Net income/(loss) 19,701 $ 24,777 $ 24,629 $ 27,308 $ (4,485) 69,107 39,385
======= ======= ======= ======= ======== ======= =======
Earnings/(loss) per
share--basic $ 0.14 $ 0.17 $ 0.17 $ 0.19 $(0.13)(3 () $ 0.48 $ 0.16(2 ()
Earnings/(loss) per
share--diluted $ 0.13 $ 0.17 $ 0.17 $ 0.18 $(0.13)(3 () $ 0.47 $ 0.16(2 ()
Weighted average common
shares--basic 139,584 143,076 142,580 141,275 143,929 141,736 145,756
Weighted average common
shares--diluted 150,675 146,640 146,545 147,612 143,929 146,360 162,691
As Adjusted (Non-GAAP(1)
)
------------------------- --------- --------- --------- --------- -------------
Total revenues $125,616 $112,621 $108,082 $110,505 $ 109,507
Total operating expenses $ 77,553 $ 76,022 $ 73,920 $ 75,465 $ 68,715
Operating income $ 48,063 $ 36,599 $ 34,162 $ 35,040 $ 40,792
Income before income
taxes $ 45,318 $ 33,798 $ 30,947 $ 33,033 $ 37,187
Income tax expense $ 10,842 $ 7,935 $ 7,933 $ 7,753 $ 9,049
Net income $ 34,476 $ 25,863 $ 23,014 $ 25,280 $ 28,768
Earnings per
share--diluted $ 0.23 $ 0.18 $ 0.16 $ 0.17 $ 0.18
Weighted average common
shares--diluted 150,675 146,640 146,545 147,612 156,745
------------------------- ------- ------- ------- ------- --------
QUARTERLY HIGHLIGHTS
Operating Revenues
-- Operating revenues increased 11.5% from the second quarter of 2025 due
to higher average AUM and higher other revenues attributable to our
European listed ETPs. Operating revenues increased 11.0% from the third
quarter of 2024 due to higher average AUM and higher other revenues
attributable to our European listed ETPs, partly offset by a lower
average advisory fee. Other income for the third quarter of 2024 also
included $3.7 million of other revenue related to legal and other related
expenses incurred in connection with a settlement with the U.S.
Securities and Exchange Commission (the "SEC") regarding certain
statements about the ESG screening process for three exchange-traded
funds ("ETFs") advised by WisdomTree Asset Management, Inc. (the "SEC ESG
Settlement") that were covered by insurance.
-- Our average advisory fee was 0.35% during the second and third quarters
of 2025 and 0.37% during the third quarter of 2024.
Operating Expenses
-- Operating expenses increased 2.5% from the second quarter of 2025
primarily due to higher fund management and administration expenses and
compensation expense. These increases were partly offset by lower
marketing expense.
-- Operating expenses increased 10.5% from the third quarter of 2024
primarily due to higher compensation expense, acquisition-related costs,
fund management and administration expenses and third-party distribution
fees. These increases were partly offset by lower professional fees, as
the third quarter of 2024 included $3.7 million of legal and other
related expenses incurred in connection with the SEC ESG Settlement that
were covered by insurance.
Other Income/(Expenses)
-- Interest expense increased 54.2% and 68.4% from the second quarter of
2025 and third quarter of 2024, respectively, due to a higher level of
debt outstanding, partly offset by a lower average interest rate.
-- Interest income increased 92.1% and 123.7% from the second quarter of
2025 and the third quarter of 2024, respectively, due to an increase in
the level of interest-earning assets.
-- During the third quarter of 2025, we recognized a loss on
extinguishment of convertible notes of $13.0 million arising from the
repurchase of $24.0 million aggregate principal amount of our 2028
Notes.
-- Other gains and losses, net, was a gain of $1.3 million for the third
quarter of 2025. This included net gains of $1.1 million on our financial
instruments owned, and net losses of $1.0 million on our investments.
Gains and losses also generally arise from the sale of gold and
cryptocurrency earned from management 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 2025 was 33.3%,
resulting in income tax expense of $9.8 million. The effective tax rate
differs from the federal statutory rate of 21.0% primarily due to a
non-deductible loss on extinguishment of convertible notes and
non-deductible executive compensation. These items were partly offset by
a lower tax rate on foreign earnings.
-- Our adjusted effective income tax rate for the third quarter of 2025
was 23.9%(1).
NINE MONTH HIGHLIGHTS
-- Operating revenues increased 9.2% as compared to 2024 due to higher
average AUM and higher other revenues attributable to our European listed
ETPs, partly offset by a lower average advisory fee. Other income for the
prior year also included $4.1 million of other revenue related to legal
and other related expenses incurred in connection with the SEC ESG
Settlement that were covered by insurance.
-- Operating expenses increased 8.0% as compared to 2024 primarily due to
higher compensation expense, acquisition-related costs, fund management
and administration expenses, third-party distribution fees and sales and
business development expenses. These increases were partly offset by
lower professional fees, as the prior year included $5.0 million of
expenses incurred in response to an activist campaign and $4.1 million of
other revenue related to legal and other related expenses incurred in
connection with the SEC ESG Settlement that were covered by insurance.
-- Significant items reported in other income/(expense) in 2025 include:
an increase in interest expense of 45.9% due to a higher level of debt
outstanding, partly offset by a lower average interest rate; a loss on
extinguishment of convertible notes of $13.0 million arising from the
repurchase of $24.0 million aggregate principal amount of our 2028 Notes;
an increase in interest income of 72.8% due to an increase in our
interest-earning assets; net gains on our financial instruments owned of
$1.9 million and $2.4 million of foreign currency remeasurement losses on
U.S. dollars held by foreign subsidiaries. Gains and losses also
generally arise from the sale of gold earned on management fees paid by
our physically-backed gold ETPs, other foreign exchange fluctuations and
miscellaneous items.
-- Our effective income tax rate for 2025 was 24.7%, resulting in an
income tax expense of $22.6 million. Our tax rate differs from the
federal statutory rate of 21.0% primarily due to a non-deductible loss on
extinguishment of convertible notes and non-deductible executive
compensation. These items were partly offset by a lower tax rate on
foreign earnings.
CONFERENCE CALL DIAL-IN AND WEBCAST DETAILS
WisdomTree will discuss its results and operational highlights during a live webcast on Friday, October 31, 2025 at 11:00 a.m. ET, which, together with all earnings materials, can be accessed via WisdomTree's investor relations website at https://ir.wisdomtree.com. A replay of the webcast will be available shortly after the call.
Participants also can dial in using the following numbers: (877) 407-9210 or (201) 689-8049. Click here to access the participant international toll-free access numbers.
To avoid delays, we encourage participants to log in or dial into the conference call 10 minutes ahead of the scheduled start time.
About WisdomTree
WisdomTree is a global financial innovator, offering a diverse suite of exchange-traded products (ETPs), models and solutions, as well as digital asset-related products. Our offerings empower investors to shape their financial future and equip financial professionals to grow their businesses. Leveraging the latest financial infrastructure, we create products that emphasize access, transparency and provide an enhanced user experience. Building on our heritage of innovation, we offer next-generation digital products and services related to tokenized real world assets and stablecoins, as well as our blockchain-native digital wallet, WisdomTree Prime(R) , and institutional platform, WisdomTree Connect$(TM)$.*
* The WisdomTree Prime digital wallet and digital asset services and WisdomTree Connect institutional platform 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, in select U.S. jurisdictions 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://www.wisdomtreeprime.com, the WisdomTree Prime mobile app or https://wisdomtreeconnect.com for more information.
WisdomTree currently has approximately $138.4 billion in assets under management globally, inclusive of assets under management attributable to our recently completed acquisition of Ceres Partners, LLC.
For more information about WisdomTree, WisdomTree Connect and WisdomTree Prime, visit: https://www.wisdomtree.com.
Please visit us on X at @WisdomTreeNews.
WisdomTree(R) is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.
PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE PRIME:
NOT FDIC INSURED | NO BANK GUARANTEE | NOT A BANK DEPOSIT | MAY LOSE VALUE | NOT SIPC PROTECTED | NOT INSURED BY ANY GOVERNMENT AGENCY
The products and services available through the WisdomTree Prime app and WisdomTree Connect are not endorsed, indemnified or guaranteed by any regulatory agency.
____________________
(1) See "Non-GAAP Financial Measurements."
(2) Adjusted 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) 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 $718 of stock repurchase excise taxes. The three months ended
September 30, 2024 includes a loss of $11,375 recognized upon the
repurchase of our Series A Non-Voting Convertible Preferred Stock
convertible into approximately 14.75 million shares of common stock
from ETFS Capital Limited and $1,868 of stock repurchase excise taxes.
These items are excluded from net income but are required to be added
to net income to arrive at income available to common stockholders in
the calculation of EPS. These items are excluded from our EPS when
computed on a non-GAAP basis.
WISDOMTREE, INC. AND SUBSIDIARIES
KEY OPERATING STATISTICS
(Unaudited)
Three Months Ended
---------------------------------------------------------------------
Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
2025 2025 2025 2024 2024
------------ ------------ ------------- ------------ ------------
GLOBAL PRODUCTS ($ in
millions)
----------------------------
Beginning of period assets $126,070 $115,787 $109,779 $112,577 $109,686
Add: Digital Assets--Jan. 1,
2025 -- -- 32 -- --
Inflows/(outflows) 2,237 3,529 3,052 (281) (2,395)
Market
appreciation/(depreciation) 8,868 6,754 2,924 (2,517) 5,286
------- ------- ------- --- ------- -------
End of period assets $137,175 $126,070 $115,787 $109,779 $112,577
======= ======= ======= === ======= =======
Average assets during the
period $130,760 $119,185 $114,622 $112,349 $110,369
Average advisory fee during
the period 0.35% 0.35% 0.35% 0.36% 0.37%
Revenue days 92 91 90 92 92
Number of products--end of
the period 397 383 375 (1) 353 352
U.S. LISTED ETFs ($ in
millions)
----------------------------
Beginning of period assets $ 85,179 $ 80,531 $ 79,095 $ 81,267 $ 79,722
(Outflows)/inflows (448) 1,110 1,847 (40) (1,650)
Market
appreciation/(depreciation) 3,562 3,538 (411) (2,132) 3,195
------- ------- ------- ------- -------
End of period assets $ 88,293 $ 85,179 $ 80,531 $ 79,095 $ 81,267
======= ======= ======= === ======= =======
Average assets during the
period $ 87,205 $ 81,525 $ 81,127 $ 80,661 $ 80,335
Number of ETFs--end of the
period 84 81 78 78 78
EUROPEAN LISTED ETPs ($ in
millions)
----------------------------
Beginning of period assets $ 40,541 $ 35,124 $ 30,684 $ 31,310 $ 29,964
Inflows/(outflows) 2,447 2,201 1,104 (241) (745)
Market
appreciation/(depreciation) 5,302 3,216 3,336 (385) 2,091
------- ------- ------- --- ------- -------
End of period assets $ 48,290 $ 40,541 $ 35,124 $ 30,684 $ 31,310
======= ======= ======= === ======= =======
Average assets during the
period $ 42,853 $ 37,439 $ 33,415 $ 31,688 $ 30,034
Number of ETPs--end of the
period 295 285 280 275 274
DIGITAL ASSETS ($ in
millions)
----------------------------
Beginning of period assets $ 350 $ 132 $ -- $ -- $ --
Add: Digital Assets--Jan. 1,
2025 -- -- 32 -- --
Inflows 238 218 101 -- --
Market
appreciation/(depreciation) 4 -- (1) -- --
------- ------- ------- ------- -------
End of period assets $ 592 $ 350 $ 132 $ -- $ --
======= ======= ======= === ======= =======
Average assets during the
period $ 702 $ 221 $ 80 $ -- $ --
Number of products--end of
the period 18 17 17 (1) -- --
PRODUCT CATEGORIES ($ in
millions)
----------------------------
U.S. Equity
Beginning of period assets $ 38,617 $ 35,628 $ 35,414 $ 34,643 $ 31,834
Add: Digital Assets--Jan. 1,
2025 -- -- 9 -- --
Inflows 41 1,288 962 1,099 328
Market
appreciation/(depreciation) 2,319 1,701 (757) (328) 2,481
------- ------- ------- ------- -------
End of period assets $ 40,977 $ 38,617 $ 35,628 $ 35,414 $ 34,643
======= ======= ======= === ======= =======
Average assets during the
period $ 40,024 $ 36,080 $ 36,278 $ 35,714 $ 33,175
Three Months Ended
--------------------------------------------------
Sept.
30, June 30, Mar. 31, Dec. 31, Sept. 30,
2025 2025 2025 2024 2024
-------- -------- -------- -------- ----------
Commodity & Currency
Beginning of period assets $26,696 $25,487 $21,906 $23,034 $21,987
Add: Digital Assets--Jan. 1,
2025 -- -- 1 -- --
Inflows/(outflows) 1,097 (110) (159) (440) (741)
Market
appreciation/(depreciation) 3,912 1,319 3,739 (688) 1,788
------ ------ ------ ------ ------
End of period assets $31,705 $26,696 $25,487 $21,906 $23,034
====== ====== ====== ====== ======
Average assets during the
period $28,162 $25,888 $23,996 $22,989 $22,016
International Developed
Market Equity
Beginning of period assets $21,725 $18,178 $17,602 $18,075 $19,385
Inflows/(outflows) 476 1,645 474 63 (1,391)
Market
appreciation/(depreciation) 1,692 1,902 102 (536) 81
------ ------ ------ ------ ------
End of period assets $23,893 $21,725 $18,178 $17,602 $18,075
====== ====== ====== ====== ======
Average assets during the
period $22,481 $19,577 $18,275 $17,716 $18,636
Fixed Income
Beginning of period assets $22,543 $22,230 $20,043 $20,767 $21,430
Add: Digital Assets--Jan. 1,
2025 -- -- 21 -- --
(Outflows)/inflows (61) 148 2,093 (387) (897)
Market
appreciation/(depreciation) 27 165 73 (337) 234
------ ------ ------ ------ ------
End of period assets $22,509 $22,543 $22,230 $20,043 $20,767
====== ====== ====== ====== ======
Average assets during the
period $23,128 $22,526 $21,464 $20,398 $21,135
Emerging Market Equity
Beginning of period assets $10,957 $ 9,985 $10,468 $12,452 $11,875
(Outflows)/inflows (250) 28 (445) (908) (20)
Market
appreciation/(depreciation) 148 944 (38) (1,076) 597
------ ------ ------ ------ ------
End of period assets $10,855 $10,957 $ 9,985 $10,468 $12,452
====== ====== ====== ====== ======
Average assets during the
period $10,874 $10,295 $10,072 $11,407 $12,083
Cryptocurrency
Beginning of period assets $ 2,087 $ 1,553 $ 1,912 $ 1,054 $ 838
Add: Digital Assets--Jan. 1,
2025 -- -- 1 -- --
Inflows/(outflows) 764 198 (89) 315 201
Market
appreciation/(depreciation) 317 336 (271) 543 15
------ ------ ------ ------ ------
End of period assets $ 3,168 $ 2,087 $ 1,553 $ 1,912 $ 1,054
====== ====== ====== ====== ======
Average assets during the
period $ 2,412 $ 1,800 $ 1,900 $ 1,599 $ 917
Leveraged & Inverse
Beginning of period assets $ 2,631 $ 2,133 $ 1,924 $ 2,082 $ 1,922
(Outflows)/inflows (52) 141 116 (69) 71
Market
appreciation/(depreciation) 334 357 93 (89) 89
------ ------ ------ ------ ------
End of period assets $ 2,913 $ 2,631 $ 2,133 $ 1,924 $ 2,082
====== ====== ====== ====== ======
Average assets during the
period $ 2,750 $ 2,354 $ 2,083 $ 2,032 $ 1,962
Alternatives
Beginning of period assets $ 814 $ 593 $ 510 $ 470 $ 415
Inflows 222 191 100 46 54
Market
appreciation/(depreciation) 119 30 (17) (6) 1
------ ------ ------ ------ ------
End of period assets $ 1,155 $ 814 $ 593 $ 510 $ 470
====== ====== ====== ====== ======
Average assets during the
period $ 929 $ 665 $ 554 $ 494 $ 445
Headcount 338 321 315 313 314
____________________
(1) Includes 17 digital assets products, which were launched prior to January
1, 2025.
Note: Previously issued statistics may be restated due to fund closures and
trade adjustments.
Source: WisdomTree
WISDOMTREE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
Sept. 30, Dec. 31,
2025 2024
------------- -------------
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and restricted
cash $ 555,851 $ 181,191
Financial instruments owned, at fair
value 104,283 85,439
Accounts receivable 46,630 44,866
Prepaid expenses 7,799 5,340
Other current assets 1,844 1,542
--------- ---------
Total current assets 716,407 318,378
Fixed assets, net 307 336
Deferred tax assets, net 8,010 11,656
Investments 26,476 8,922
Right of use assets--operating leases 1,768 880
Goodwill 86,841 86,841
Intangible assets, net 606,452 605,896
Other noncurrent assets 750 631
--------- ---------
Total assets $ 1,447,011 $1,033,540
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Current liabilities:
Convertible notes--current $ 149,386 $ --
Compensation and benefits payable 34,287 39,701
Fund management and administration
payable 30,991 31,135
Payable to Gold Bullion Holdings
(Jersey) Limited ("GBH") 14,804 14,804
Operating lease liabilities 1,258 709
Income taxes payable 701 724
Accounts payable and other
liabilities 23,014 22,124
--------- ---------
Total current liabilities 254,441 109,197
Convertible notes--long term 805,064 512,033
Payable to GBH 13,564 12,159
Operating lease liabilities--long term 524 171
--------- ---------
Total liabilities 1,073,593 633,560
STOCKHOLDERS' EQUITY
Common stock, par value $0.01; 400,000
shares authorized:
Issued and outstanding: 140,278 and
146,102 at September 30, 2025 and
December 31, 2024, respectively 1,403 1,461
Additional paid-in capital 184,274 270,303
Accumulated other comprehensive
gain/(loss) 2,755 (1,607)
Retained earnings 184,986 129,823
--------- ---------
Total stockholders' equity 373,418 399,980
--------- ---------
Total liabilities and stockholders' equity $ 1,447,011 $1,033,540
========= =========
WISDOMTREE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Nine Months Ended
September 30,
------------------------
2025 2024
-------- --------
Cash flows from operating activities:
Net income $ 69,107 $ 39,385
Adjustments to reconcile net
income to net cash provided by
operating activities:
Advisory and license fees
paid in gold, other precious
metals and cryptocurrency (51,354) (39,028)
Stock-based compensation 16,645 15,952
Loss on extinguishment of
convertible notes 13,011 30,632
Deferred income taxes 2,628 2,103
Amortization of issuance
costs--convertible notes 2,151 1,266
Gains on financial
instruments owned, at fair
value (1,914) (2,575)
Depreciation and amortization 1,735 1,248
Imputed interest on payable
to GBH 1,405 2,039
Amortization of right of use
asset 1,003 976
Net losses on investments 49 619
Changes in operating assets and
liabilities:
Accounts receivable 582 (9,344)
Prepaid expenses (2,351) (1,635)
Gold and other precious
metals 49,686 38,603
Other assets (482) (150)
Fund management and
administration payable (749) (6)
Compensation and benefits
payable (6,328) (8,251)
Income taxes payable (40) 1,919
Operating lease liabilities (987) (991)
Accounts payable and other
liabilities (540) 6,124
-------- --------
Net cash provided by
operating activities 93,257 78,886
-------- --------
Cash flows from investing activities:
Purchase of financial instruments
owned, at fair value (25,314) (57,855)
Purchase of investments (17,553) --
Cash paid--software development (2,015) (1,790)
Purchase of fixed assets (154) (128)
Proceeds from the sale of
financial instruments owned, at
fair value 8,860 42,388
Proceeds from the exit from
investment in Securrency, Inc. -- 465
Proceeds from held-to-maturity
securities maturing or called
prior to maturity -- 18
-------- --------
Net cash used in
investing activities (36,176) (16,902)
-------- --------
Cash flows from financing activities:
Common stock repurchased (102,732) (62,870)
Repurchase and maturity of
convertible notes (36,681) (132,713)
Dividends paid (13,218) (14,745)
Issuance costs--convertible notes (11,064) (7,667)
Repurchase of Series A Non-Voting
Convertible Preferred Stock -- (143,812)
Repurchase costs--Series A
Non-Voting Convertible Preferred
Stock -- (132)
Proceeds from the issuance of
convertible notes 475,000 345,000
-------- --------
Net cash provided
by/(used in) financing
activities 311,305 (16,939)
-------- --------
Increase in cash flow due to changes in
foreign exchange rate 6,274 2,133
-------- --------
Net increase in cash, cash equivalents and
restricted cash 374,660 47,178
Cash, cash equivalents and restricted
cash--beginning of year 181,191 129,305
-------- --------
Cash, cash equivalents and restricted
cash--end of period $ 555,851 $ 176,483
======== ========
Supplemental disclosure of cash flow
information:
Cash paid for income
taxes $ 19,999 $ 17,807
======== ========
Cash paid for interest $ 15,198 $ 9,913
======== ========
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:
Adjusted Revenues, Operating Income, Operating Expenses, Income Before Income Taxes, Income Tax Expense, Net Income and Diluted Earnings per Share
We disclose adjusted revenues, 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. Beginning in the second quarter of 2025, we began excluding material 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.
Imputed interest on our payable to the Gold Bullion Holdings (Jersey) Limited ("GBH"): During the fourth quarter of 2023, we repurchased our Series C Non-Voting Convertible Preferred Stock, which was convertible into approximately 13.1 million shares of WisdomTree common stock, from GBH, a subsidiary of the World Gold Council, for aggregate cash consideration of approximately $84.4 million. Under the terms of the transaction, we paid GBH $40.0 million on the closing date, with the remainder of the purchase price payable in equal annual installments on the first, second and third anniversaries of the closing date, with no requirement to pay interest. Under U.S. GAAP, the obligation is recorded at its present value utilizing a market rate of interest on the closing date of 7.0% and the corresponding discount is amortized as interest expense pursuant to the effective interest method of accounting over the life of the obligation. We exclude this item when calculating our non-GAAP financial measurements as recognition of interest expense is non-cash and contrary to the stated terms of our obligation.
Other items: Loss on extinguishment of convertible notes, acquisition-related costs, a civil money penalty in connection with the SEC ESG Settlement, gains and losses recognized on our investments and changes in deferred tax asset valuation allowance are excluded when calculating our non-GAAP financial measurements. We also offset revenues and related expenses pertaining to legal and other related expenses covered by insurance as the gross presentation required under GAAP serves to overstate our revenues and expenses in the ordinary course of business.
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)
(in thousands)
(Unaudited)
Three Months Ended
-------------------------------------------------------
Adjusted Net Income and
Diluted Earnings per Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
Share: 2025 2025 2025 2024 2024
--------- --------- --------- --------- -----------
Net income/(loss), as
reported $ 19,701 $ 24,777 $ 24,629 $ 27,308 $ (4,485)
Add back: Loss on
extinguishment of
convertible notes,
net of income
taxes 12,763 -- -- (718) 30,128
Add back:
Acquisition-related
costs, net of
income taxes 1,824 1,489 -- -- --
(Deduct)/add back:
(Gains)/losses on
financial
instruments owned,
net of income
taxes (810) (972) 333 (1,722) (607)
Add back/(deduct):
Losses/(gains)
recognized on
investments, net of
income taxes 734 (458) (239) 389 (436)
Add back: Imputed
interest on payable
to GBH, net of
income taxes 364 354 344 451 528
Deduct: Tax
windfalls upon
vesting of
stock-based
compensation
awards (76) (4) (2,083) -- (25)
(Deduct)/add back:
(Decrease)/increase
in deferred tax
asset valuation
allowance on
financial
instruments owned
and investments (24) (459) 30 (428) (335)
Add back: Foreign
currency
remeasurement losses
on U.S. dollar
balances, net of
income taxes -- 1,136 -- -- --
Add back: Civil
money penalty in
connection with the
SEC ESG Settlement -- -- -- -- 4,000
------- ------- ------- ------- -------
Adjusted net income $ 34,476 $ 25,863 $ 23,014 $ 25,280 $ 28,768
Weighted average common
shares--diluted 150,675 146,640 146,545 147,612 156,745
------- ------- ------- ------- -------
Adjusted earnings per
share--diluted $ 0.23 $ 0.18 $ 0.16 $ 0.17 $ 0.18
======= ======= ======= ======= =======
Three Months Ended
-------------------------------------------------------
Gross Margin and
Gross Margin Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
Percentage: 2025 2025 2025 2024 2024
--------- --------- --------- --------- -----------
Operating revenues $125,616 $112,621 $108,082 $110,697 $113,168
Deduct: Legal
and other
related
expenses
covered by
insurance -- -- -- (192) (3,661)
------- ------- ------- ------- -------
Operating revenues,
as adjusted $125,616 $112,621 $108,082 $110,505 $109,507
Deduct: Fund
management and
administration (22,353) (21,252) (20,714) (22,858) (21,004)
------- ------- ------- ------- -------
Gross margin $103,263 $ 91,369 $ 87,368 $ 87,647 $ 88,503
------- ------- ------- ------- -------
Gross margin
percentage 82.2% 81.1% 80.8% 79.3% 80.8%
======= ======= ======= ======= =======
Three Months Ended
----------------------------------------------------
Adjusted Operating
Revenues, Operating Sept.
Income and Adjusted 30, June 30, Mar. 31, Dec. 31, Sept. 30,
Operating Income Margin: 2025 2025 2025 2024 2024
-------- -------- -------- --------- -----------
Operating revenues $125,616 $112,621 $108,082 $110,697 $113,168
Deduct: Legal and
other related
expenses covered by
insurance -- -- -- (192) (3,661)
------- ------- ------- ------- -------
Operating revenues, as
adjusted $125,616 $112,621 $108,082 $110,505 $109,507
------- ------- ------- ------- -------
Operating income $ 45,654 $ 34,632 $ 34,162 $ 35,040 $ 40,792
Add back:
Acquisition-related
costs 2,409 1,967 -- -- --
------- ------- ------- ------- -------
Adjusted operating income $ 48,063 $ 36,599 $ 34,162 $ 35,040 $ 40,792
------- ------- ------- ------- -------
Adjusted operating income
margin 38.3% 32.5% 31.6% 31.7% 37.3%
======= ======= ======= ======= =======
Three Months Ended
-------------------------------------------------
Sept. Mar.
Adjusted Total Operating 30, June 30, 31, Dec. 31, Sept. 30,
Expenses: 2025 2025 2025 2024 2024
-------- -------- ------- -------- ----------
Total operating expenses $79,962 $77,989 $73,920 $75,657 $72,376
Deduct:
Acquisition-related
costs (2,409) (1,967) -- -- --
Deduct: Legal and
other related
expenses covered by
insurance -- -- -- (192) (3661)
------ ------ ------ ------ ------
Adjusted total operating
expenses $77,553 $76,022 $73,920 $75,465 $68,715
====== ====== ====== ====== ======
Three Months Ended
--------------------------------------------------
Sept.
Adjusted Income Before 30, June 30, Mar. 31, Dec. 31, Sept. 30,
Income Taxes: 2025 2025 2025 2024 2024
-------- -------- -------- -------- ----------
Income before income
taxes $29,517 $31,870 $30,368 $34,198 $ 3,866
Add back: Loss on
extinguishment of
convertible notes 13,011 -- -- -- 30,632
Add back:
Acquisition-related
costs 2,409 1,967 -- -- --
(Deduct)/add back:
(Gains)/losses on
financial
instruments owned (1,070) (1,284) 440 (2,275) (802)
Add back/(deduct):
Losses/(gains)
recognized on
investments 970 (605) (316) 514 (576)
Add back: Imputed
interest on payable
to GBH 481 467 455 596 697
Add back: Foreign
currency
remeasurement losses
on U.S. dollar
balances, net of
income taxes -- 1,383 -- -- --
Add back: Civil
money penalty in
connection with the
SEC ESG Settlement -- -- -- -- 4,000
------ ------ ------ ------ ------
Adjusted income before
income taxes $45,318 $33,798 $30,947 $33,033 $37,817
====== ====== ====== ====== ======
Three Months Ended
---------------------------------------------------------------
Adjusted Income Tax
Expense and Adjusted
Effective Income Tax Sept. 30, June 30, Mar. 31, Dec. 31, Sept. 30,
Rate: 2025 2025 2025 2024 2024
----------- ----------- ----------- ----------- -----------
Adjusted income before
income taxes (above) $45,318 $33,798 $30,947 $33,033 $37,817
------ ------ ------ ------ ------
Income tax expense $ 9,816 $ 7,093 $ 5,739 $ 6,890 $ 8,351
Add back: Tax
benefit on
acquisition-related
costs 585 478 -- -- --
(Deduct)/add back:
Tax
(expense)/benefit
arising from
(gains)/losses on
financial
instruments owned (260) (312) 107 (553 ) (195 )
Add back: Tax
(MORE TO FOLLOW) Dow Jones Newswires
October 31, 2025 07:00 ET (11:00 GMT)
Comments