WisdomTree (NYSE: WT) reported second-quarter 2026 operating revenue of $177.2 million, up 57.3% from $112.6 million a year earlier, while diluted EPS increased to $0.28 from $0.17. Record assets under management, acquisition contributions and higher revenue yield helped revenue grow faster than expenses, expanding the GAAP operating margin to 40.5%.
Core Earnings Data
Revenue growth reflected higher average AUM, a higher average advisory fee, contributions from the Ceres and Atlantic House acquisitions, and increased other revenue from European-listed ETPs. Average AUM rose to $164.2 billion from $119.2 billion, while revenue yield increased to 0.43% from 0.38%.
Operating expenses increased 35.1% year over year, slower than revenue growth. Higher incentive compensation, headcount, fund administration costs, acquisition-related amortization and distribution fees were absorbed by the larger revenue base, allowing operating income to more than double.
| Metric | Q2 2026 | Q2 2025 | Year-over-year change |
|---|---|---|---|
| Operating revenue | $177.2 million | $112.6 million | +57.3% |
| Operating income | $71.8 million | $34.6 million | About +107.4% |
| GAAP operating margin | 40.5% | 30.8% | +9.7 percentage points |
| Net income | $44.3 million | $24.8 million | About +78.7% |
| Diluted EPS | $0.28 | $0.17 | About +64.7% |
| Adjusted net income | $48.1 million | $25.9 million | About +85.9% |
| Adjusted diluted EPS | $0.31 | $0.18 | About +72.2% |
| Adjusted operating margin | 42.6% | 32.5% | +10.1 percentage points |
| Ending AUM | $162.9 billion | $126.1 billion | About +29.2% |
Adjusted figures are non-GAAP and exclude items including intangible asset amortization and acquisition-related costs.
Business and AUM Performance
Ending AUM reached a record $162.9 billion, up 6.7% sequentially. The increase from the first quarter consisted of $4.1 billion of acquired Atlantic House assets, $3.1 billion of net inflows and $3.2 billion of market appreciation. WisdomTree described the quarter’s annualized organic flow growth rate as 13%.
U.S.-listed ETF assets ended the quarter at $99.0 billion, supported by $1.1 billion of inflows and $7.0 billion of market appreciation. European-listed ETP assets reached $61.1 billion after $2.1 billion of inflows and the addition of Atlantic House assets, partly offset by $3.9 billion of market depreciation.
Product flows were led by commodities and currencies at $1.9 billion, international developed-market equities at $727 million, U.S. equities at $478 million and fixed income at $320 million. These gains were partly offset by $354 million of leveraged and inverse product outflows and $106 million of emerging-market equity outflows. Digital asset products also recorded $110 million of outflows.
AUM Growth and Acquisitions Lifted Revenue Faster Than Costs
Average AUM increased about 37.7% year over year, while revenue yield rose by five basis points. Together with acquisition-related revenue and higher European ETP revenue, this enabled total revenue to grow substantially faster than operating expenses.
The operating leverage was visible in both GAAP and adjusted margins. Adjusted gross margin reached 82.9%, up from 81.1% a year earlier, although it declined 1.5 percentage points sequentially because of higher expenses, including costs associated with anticipated fund launches. The Atlantic House acquisition also added fund administration expenses and intangible asset amortization, but those costs did not prevent operating-margin expansion.
Profitability, Debt and Capital Allocation
Below operating income, interest expense increased 170.5% year over year to $14.9 million because of higher debt outstanding and higher interest rates. WisdomTree also recognized a $6.6 million loss related to repurchasing $51.9 million principal amount of its 2029 convertible notes and a $1.4 million contingent-consideration remeasurement loss. These items were partly offset by $6.4 million of other net gains.
The effective income tax rate was 24.4%, compared with the 21% U.S. federal statutory rate. The difference primarily reflected non-deductible amounts associated with convertible-note repurchases.
During the quarter, WisdomTree retired $126.9 million in aggregate principal amount of convertible senior notes for $207.5 million in cash consideration. It also repurchased approximately 1.5 million common shares for $25.9 million, at an average price of $17.40 per share, and declared a quarterly dividend of $0.03 per share.
Management Commentary
President and COO Jarrett Lilien said the quarter marked WisdomTree’s sixth consecutive period of record AUM and emphasized that growth was spread across regions, asset classes and client segments. CEO Jonathan Steinberg highlighted the company’s expansion beyond ETFs into private markets, liquid alternatives and tokenized financial infrastructure.
The operating data support the view that growth was not tied to one product category: positive flows came from several equity, fixed-income and commodity strategies. However, the outflows in leveraged and inverse products, emerging-market equities and digital assets show that performance was not uniform across the platform.
Recent Insider Transactions
The supplied insider-trading data show 298,920 shares reported as purchases across 16 transactions and 175,000 shares sold across four transactions during the previous six months. Net purchases totaled 123,920 shares, or 0.90% of the 14.08 million shares held by insiders; these figures do not by themselves indicate insiders’ outlook for the company.
The two most recent open-market sales with complete transaction values were reported in May 2026.
| Date | Insider | Role | Transaction | Price per share | Reported value |
|---|---|---|---|---|---|
| May 20, 2026 | Robert Jarrett Lilien | President | Sale | $18.99 | $569,700 |
| May 19, 2026 | Peter M. Ziemba | Officer | Sale | $19.31 | $1.93 million |
Risks Investors Should Monitor
- Market-sensitive AUM: Market appreciation added $3.2 billion to total AUM, but category-level declines remained significant. Commodity and currency products experienced $4.6 billion of market depreciation despite strong inflows, while cryptocurrency products recorded $258 million of market depreciation.
- Acquisition integration and expense pressure: Atlantic House contributed assets and revenue but also increased fund administration costs and intangible amortization. Headcount rose to 414 from 321 a year earlier, and anticipated product launches pressured gross margin sequentially.
- Higher financing costs: Interest expense reached $14.9 million, up 170.5% year over year. The amount of cash used to retire convertible notes also makes debt management and financing costs important factors below operating income.
- Uneven flows across products: Total net inflows remained positive at $3.1 billion, but they declined from $3.5 billion a year earlier. Outflows from leveraged and inverse products, digital assets and emerging-market equities could weigh on growth if they persist.
Summary
WisdomTree’s second-quarter 2026 results were driven by record AUM, positive net inflows, acquisitions and improved revenue yield. Revenue grew faster than operating expenses, producing substantial GAAP and adjusted operating-margin expansion, while higher interest expense and note-repurchase losses remained offsets below the operating line. Future results will depend on sustaining broad-based flows, integrating acquired businesses without excessive cost growth and managing the financing burden associated with its debt and capital-allocation activity.
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