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WisdomTree Announces Third Quarter 2025 Results

By: via Business Wire

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)

WisdomTree, Inc. (NYSE: 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. 30,

2025

June 30,

2025

Mar. 31,

2025

Dec. 31,

2024

Sept. 30,

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®, 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,

2025

June 30,

2025

Mar. 31,

2025

Dec. 31,

2024

Sept. 30,

2024

Sept. 30,

2025

Sept. 30,

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®, and institutional platform, WisdomTree Connect™.*

* 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® 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,

2025

June 30,

2025

Mar. 31,

2025

Dec. 31,

2024

Sept. 30,

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,

2025

June 30,

2025

Mar. 31,

2025

Dec. 31,

2024

Sept. 30,

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,

2025

Dec. 31,

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 Share:

Sept. 30,

2025

June 30,

2025

Mar. 31,

2025

Dec. 31,

2024

Sept. 30,

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 Percentage:

Sept. 30,

2025

June 30,

2025

Mar. 31,

2025

Dec. 31,

2024

Sept. 30,

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 Income and Adjusted Operating Income Margin:

Sept. 30,

2025

June 30,

2025

Mar. 31,

2025

Dec. 31,

2024

Sept. 30,

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

 

Adjusted Total Operating Expenses:

Sept. 30,

2025

June 30,

2025

Mar. 31,

2025

Dec. 31,

2024

Sept. 30,

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

 

Adjusted Income Before Income Taxes:

Sept. 30,

2025

June 30,

2025

Mar. 31,

2025

Dec. 31,

2024

Sept. 30,

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 Rate:

Sept. 30,

2025

June 30,

2025

Mar. 31,

2025

Dec. 31,

2024

Sept. 30,

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 benefit arising from extinguishment of convertible notes

 

248

 

 

—

 

 

—

 

 

718

 

 

504

 

Add back/(deduct): Tax benefit/(expense) on losses/(gains) on investments

 

236

 

 

(147

)

 

(77

)

 

125

 

 

(140

)

Add back: Tax benefit on imputed interest

 

117

 

 

113

 

 

111

 

 

145

 

 

169

 

Add back: Tax windfalls upon vesting of stock-based compensation awards

 

76

 

 

4

 

 

2,083

 

 

—

 

 

25

 

Add back/(deduct): Decrease/(increase) in deferred tax asset valuation allowance on financial instruments owned and investments

 

24

 

 

459

 

 

(30

)

 

428

 

 

335

 

Add back: Tax benefit on foreign currency remeasurement losses on U.S. dollar balances

 

—

 

 

247

 

 

—

 

 

—

 

 

—

 

Adjusted income tax expense

$

10,842

 

$

7,935

 

$

7,933

 

$

7,753

 

$

9,049

 

Adjusted effective income tax rate

 

23.9

%

 

23.5

%

 

25.6

%

 

23.5

%

 

23.9

%

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 strategy relating to digital assets and blockchain-enabled financial services, including WisdomTree Prime® and WisdomTree Connect™, 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 our acquisition of Ceres Partners, LLC, including financial or strategic outcomes; and
  • our ability to successfully implement our strategic goals relating to the acquisition and integrate the acquired business.

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 acquisition of Ceres Partners, LLC, including the risk that integration may be more difficult, time-consuming or costly than expected, or that expected benefits (including projected business growth or the ability to raise additional capital into the funds of the acquired business) 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, 2024, and in subsequent reports filed with or furnished to the SEC.

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

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