WisdomTree, Inc.NYSE: WT

WisdomTree Announces Third Quarter 2026 Results

· Issued by WisdomTree, Inc. via Business Wire

On 6ix: 6ix.com/news/wisdomtree-announces-third-quarter-2026-results

Watch WisdomTree explain itWisdomtree (NYSE:WT) Q3 2026 Earnings Call · Replay · Oct 30, 2026 · From 1:22 · Third-Quarter Results and Financial Guidance

NEW YORK--(BUSINESS WIRE)--WisdomTree, Inc. (NYSE: WT), a modern global asset manager, today reported financial results for the third quarter of 2026.

$49.2 million of net income ($49.5(1) million, as adjusted). See “Non-GAAP Financial Measurements” for a reconciliation to net income.

$171.0 billion of ending AUM, an increase of 5.0% from the prior quarter arising from net inflows and market appreciation.

$4.6 billion of net inflows, across the United States and Europe primarily driven by inflows into our fixed income, commodity and U.S. equity products.

0.36% average advisory fee, unchanged from the prior quarter.

0.42% revenue yield(2), a 1 basis point decrease from the prior quarter due to lower transaction fees from our European ETPs and lower performance fees.

$179.4 million of operating revenues, an increase of 1.3% from the prior quarter due to higher average AUM, partly offset by lower transaction fees from our European ETPs and lower performance fees.

83.0% gross margin(1), essentially unchanged from the prior quarter.

41.3% operating income margin for the quarter (43.1% as adjusted), a 0.8 point increase (0.5 point increase, as adjusted) from the prior quarter primarily due to higher revenues.

39.8% operating income margin year-to-date (41.8% as adjusted), a 6.8 point increase (7.5 point(3) increase, as adjusted) from the prior-year period. The increase primarily reflected favorable operating leverage from revenue growth, partially offset by higher intangible amortization associated with the Ceres Partners, LLC (“Ceres”) and Atlantic House Holdings Limited (“Atlantic House”) acquisitions. Adjusted operating income excludes intangible asset amortization and acquisition-related costs.

$18.1 million aggregate principal amount of convertible senior notes due 2029 (the “2029 Notes”) retired, for aggregate cash consideration of $32.3 million. The conversion price of the 2029 Notes was $11.82.

$10.6 million of common stock repurchased, representing approximately 0.5 million shares at an average repurchase price of $21.29 per share.

$0.03 quarterly dividend declared, payable on November 25, 2026 to stockholders of record as of the close of business on November 11, 2026.

Update from Jarrett Lilien, WisdomTree President and COO

“Our third quarter results reflect the continued strength and scalability of WisdomTree’s business, with record AUM of $171 billion, $4.6 billion of net inflows and meaningful contributions across our global platform. The breadth and consistency of our organic growth, coupled with expanding distribution capabilities and continued operating discipline, are driving significant operating leverage and margin expansion. As we deepen our presence in existing markets and capitalize on new opportunities across liquid alternatives, private markets and tokenization, we remain focused on executing our proven playbook: generating high-quality organic growth, scaling efficiently and translating that momentum into greater earnings power.”

Update from Jonathan Steinberg, WisdomTree CEO

“WisdomTree continues to evolve into a truly modern global asset manager, strategically positioned at the intersection of three powerful transformations in financial services: the democratization of investing, the convergence of public and private markets, and the tokenization of financial assets. After more than two decades of strategic reinvestment, we have built differentiated capabilities across each of these areas, and we believe the greatest opportunity lies in bringing them together into one integrated investment ecosystem. Combined with our highly efficient and scalable operating model, we believe WisdomTree is well positioned to drive sustained growth and create significant long-term value for stockholders.”

OPERATING AND FINANCIAL HIGHLIGHTS

Three Months Ended

Sept. 30,
2026

June 30,
2026

Mar. 31,
2026

Dec. 31,
2025

Sept. 30,
2025

Consolidated Operating Highlights ($ in billions):

AUM—end of period

$

171.0

$

162.9

$

152.6

$

144.5

$

137.2

Net inflows/(outflows)

$

4.6

$

3.1

$

5.9

$

(0.3

)

$

2.2

Average AUM

$

170.5

$

164.2

$

154.7

$

140.7

$

130.8

Average advisory fee

0.36%

0.36%

0.36%

0.35%

0.35%

Revenue yield(2)

0.42%

0.43%

0.42%

0.42%

0.38%

Consolidated Financial Highlights ($ in millions, except per share amounts):

Operating revenues

$

179.4

$

177.2

$

159.5

$

147.4

$

125.6

Net income/(loss)

$

49.2

$

44.3

$

(23.1

)

$

40.0

$

19.7

Diluted earnings/(loss) per share

$

0.32

$

0.28

$

(0.17

)

$

0.28

$

0.13

Operating income margin

41.3%

40.5%

37.2%

40.5%

36.3%

As Adjusted (Non-GAAP(1)):

Operating revenues, as adjusted

$

179.4

$

177.2

$

159.5

$

147.4

$

125.6

Gross margin

83.0%

82.9%

84.4%

83.2%

82.2%

Net income, as adjusted

$

49.5

$

48.1

$

40.6

$

41.2

$

34.5

Diluted earnings per share, as adjusted

$

0.32

$

0.31

$

0.27

$

0.29

$

0.23

Operating income margin, as adjusted

43.1%

42.6%

39.3%

41.7%

38.3%

RECENT BUSINESS DEVELOPMENTS

Company News

  • In September,
    • WisdomTree completed the rebrand of Atlantic House’s fund and structured solutions business following WisdomTree’s recent acquisition of Atlantic House in May 2026;
    • WisdomTree and MoonPay entered into a strategic agreement to expand U.S. investor access to tokenized funds, including the WisdomTree Treasury Money Market Digital Fund (WTGXX), and to support stablecoin reserves by making WTGXX more accessible to everyday investors through MoonPay; and
    • WisdomTree introduced WisdomTree Onchain™, bringing its tokenized funds, onchain infrastructure and platforms for individual and institutional investors under one name.
  • In September and October, WisdomTree won the following awards:
    • Luba Spear was named “CMO of the Year” at the 2026 Wealth Management Industry Awards;
    • four WisdomTree leaders were recognized on INvolve’s 2026 ‘Heroes Role Model Lists supported by YouTube;’
    • the WisdomTree Enhanced Commodity UCITS ETF (WCOA) was the winner in the Commodity ETFs category at the Swiss ETF Awards 2026;
    • received the “M&A Deal of the Year” award for our acquisition of Ceres Partners, LLC at the 2026 Asset Management STAR Awards North America.
  • In October,
    • WisdomTree and BitGo entered into an agreement to bring tokenized Treasury yield, liquidity and collateral capabilities to institutional investors directly on the BitGo platform. Eligible BitGo clients can access WTGXX without leaving the platform, putting idle cash to work while maintaining 24/7 liquidity and settlement capabilities; and
    • WisdomTree and Return Stacked® ETFs entered into a strategic relationship to deliver co-branded, capital-efficient model portfolios through the Quorus implementation platform. The collaboration combines WisdomTree’s portfolio construction expertise with Return Stacked ETFs’ institutional-style diversifying strategies, helping financial advisors integrate alternative sources of return alongside core stock and bond exposures through a scalable portfolio framework.

Product News

  • In August, September and October, WisdomTree launched the following products:
    • In the U.S., we launched the WisdomTree Efficient Long/Short U.S. SmallCap Equity Fund (WSLS) and the WisdomTree Global Alpha Fund (WTAL), both powered by AlphaBeta and listed on the Texas Stock Exchange (TXSE).
    • During the same period, in Europe, we launched the WisdomTree Enhanced Commodity UCITS ETF – GBP Hedged (WCOM), WisdomTree Physical Silver – EUR Daily Hedged (AGSE), WisdomTree Physical Silver – GBP Daily Hedged (PAGP), WisdomTree Defined Return Autocallable EUR Active UCITS ETF (DRTN) and WisdomTree Defensive Defined Return Autocallable EUR Active UCITS ETF (DRTD). The latter two ETFs – the first actively managed autocallable ETFs in Europe – leverage the investment team that joined WisdomTree through the Atlantic House acquisition. These ETFs are listed on major European exchanges, including the London Stock Exchange, Börse Xetra and Borsa Italiana. We also launched the WisdomTree Tail Risk Fund.

WISDOMTREE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)

 

Three Months Ended

Nine Months Ended

Sept. 30,
2026

June 30,
2026

Mar. 31,
2026

Dec. 31,
2025

Sept. 30,
2025

Sept. 30,
2026

Sept. 30,
2025

Operating Revenues:

Advisory fees

$

151,631

$

146,300

$

134,880

$

122,712

$

114,485

$

432,811

$

317,275

Management fees

5,420

5,369

5,231

4,908

—

16,020

—

Performance fees

3,778

5,964

2,955

7,105

—

12,697

—

Other revenues

18,546

19,527

16,404

12,709

11,131

54,477

29,044

Total revenues

179,375

177,160

159,470

147,434

125,616

516,005

346,319

Operating Expenses:

Compensation and benefits

44,770

43,718

47,517

37,273

33,791

136,005

100,406

Fund management and administration

30,532

30,229

24,880

24,830

22,353

85,641

64,319

Marketing and advertising

5,426

6,041

5,392

5,613

4,788

16,859

14,931

Sales and business development

4,820

4,938

4,197

4,045

3,943

13,955

12,312

Professional fees

4,263

4,098

3,308

3,596

3,505

11,669

9,464

Occupancy, communications and equipment

2,620

2,229

1,935

1,892

1,601

6,784

4,642

Depreciation and amortization

4,028

3,415

2,096

2,043

615

9,539

1,735

Third-party distribution fees

5,334

5,401

5,795

4,772

3,977

16,530

11,172

Acquisition-related costs

—

1,118

1,933

317

2,409

3,051

4,376

Other

3,460

4,162

3,067

3,306

2,980

10,689

8,514

Total operating expenses

105,253

105,349

100,120

87,687

79,962

310,722

231,871

Operating income

74,122

71,811

59,350

59,747

45,654

205,283

114,448

Other Income/(Expenses):

Interest expense

(13,520

)

(14,852

)

(11,023

)

(11,023

)

(8,466

)

(39,395

)

(19,397

)

Interest income

1,841

3,203

2,592

2,965

4,015

7,636

8,002

Loss on repurchase of convertible notes

—

(6,623

)

(62,302

)

(833

)

(13,011

)

(68,925

)

(13,011

)

Remeasurement of contingent consideration

2,069

(1,360

)

(2,562

)

(710

)

—

(1,853

)

—

Other losses and gains, net

(35

)

6,368

(637

)

317

1,325

5,696

1,713

Income/(loss) before income taxes

64,477

58,547

(14,582

)

50,463

29,517

108,442

91,755

Income tax expense

15,261

14,263

8,549

10,437

9,816

38,073

22,648

Net income/(loss)

$

49,216

$

44,284

$

(23,131

)

$

40,026

$

19,701

$

70,369

$

69,107

Earnings/(loss) per share—basic

$

0.33

$

0.30

$

(0.17

)

$

0.29

$

0.14(4

)

$

0.49

$

0.48

Earnings/(loss) per share—diluted

$

0.32

$

0.28

$

(0.17

)

$

0.28

$

0.13(4

)

$

0.46

$

0.47

Weighted average common shares—basic

147,570

149,001

138,005

136,340

139,584

144,894

141,736

Weighted average common shares—diluted

156,179

156,276

138,005

143,314

150,675

153,767

146,360

 

As Adjusted (Non-GAAP(1))

Total revenues

$

179,375

$

177,160

$

159,470

$

147,434

$

125,616

Total operating expenses

$

102,032

$

101,619

$

96,752

$

85,936

$

77,553

Operating income

$

77,343

$

75,541

$

62,718

$

61,498

$

48,063

Income before income taxes

$

65,679

$

63,354

$

54,654

$

53,840

$

45,318

Income tax expense

$

16,199

$

15,274

$

14,061

$

12,605

$

10,842

Net income

$

49,480

$

48,080

$

40,593

$

41,235

$

34,476

Earnings per share—diluted

$

0.32

$

0.31

$

0.27

$

0.29

$

0.23

Weighted average common shares—diluted

156,179

156,276

152,372

143,314

150,675

QUARTERLY HIGHLIGHTS

Operating Revenues

  • Operating revenues increased 1.3% from the second quarter of 2026 due to higher average AUM, partly offset by lower transaction fees from our European ETPs and lower performance fees. Operating revenues increased 42.8% from the third quarter of 2025 due to higher average AUM, a higher average advisory fee, revenues arising from the Ceres and Atlantic House acquisitions and increased other revenues from our European listed ETPs.
  • Our average advisory fee was 0.36% for the second and third quarters of 2026 and 0.35% for the third quarter of 2025.

Operating Expenses

  • Operating expenses were essentially unchanged from the second quarter of 2026.
  • Operating expenses increased 31.6% from the third quarter of 2025 primarily due to higher incentive compensation and headcount, as well as increased fund management and administration expenses, intangible asset amortization related to the Ceres and Atlantic House acquisitions and third-party distribution fees, partly offset by lower acquisition-related costs.

Other Income/(Expenses)

  • Interest expense decreased 9.0% from the second quarter of 2026, reflecting a lower level of debt outstanding. Interest expense increased 59.7% from the third quarter of 2025, reflecting a higher level of debt outstanding and higher interest rates.
  • Interest income decreased 42.5% and 54.1% from the second quarter of 2026 and the third quarter of 2025, respectively, reflecting a lower level of interest earning assets following recent debt retirements and stock repurchases.
  • Contingent consideration related to the Ceres acquisition decreased from $15.8 million on June 30, 2026 to $13.7 million at September 30, 2026, resulting in a $2.1 million gain on remeasurement recognized during the third quarter of 2026.
  • Other losses and gains, net, was a loss of $0.04 million for the third quarter of 2026. Gains and losses generally arise on our financial instruments and investments owned, as well as from the sale of gold and cryptocurrency earned from advisory fees paid by our physically-backed gold and crypto ETPs, foreign exchange fluctuations and miscellaneous items.

Income Taxes

  • Our effective income tax rate for the third quarter of 2026 was 23.7%, resulting in income tax expense of $15.3 million. The effective tax rate differs from the U.S. federal statutory rate of 21.0% primarily due to non-deductible executive compensation and state taxes, partly offset by a reduction in the capital loss valuation allowance.
  • Our adjusted effective income tax rate for the third quarter of 2026 was 24.7%(1).

NINE MONTH HIGHLIGHTS

  • Operating revenues increased 49.0% as compared to 2025 due to higher average AUM, a higher average advisory fee, revenues arising from the Ceres and Atlantic House acquisitions and increased other revenues from our European listed ETPs.
  • Operating expenses increased 34.0% as compared to 2025 primarily due to higher incentive compensation and headcount, as well as increased fund management and administration expenses, third-party distribution fees and intangible asset amortization arising from the Ceres and Atlantic House acquisitions.
  • Significant items reported in other income/(expense) in 2026 include: an increase in interest expense of 103.1% due to a higher level of debt outstanding and higher interest rates; a decrease in interest income of 4.6% reflecting a lower level of interest earning assets following recent debt retirements and stock repurchases; a remeasurement gain of $4.4 million on British pounds held to complete the Atlantic House acquisition, net gains on our financial instruments owned of $2.0 million, net losses on our investments of $0.4 million and $0.6 million of foreign currency remeasurement gains on U.S. dollars held by foreign subsidiaries. Gains and losses also generally arise from the sale of gold earned on advisory fees paid by our physically-backed gold ETPs, other foreign exchange fluctuations and miscellaneous items.
  • Our effective income tax rate for 2026 was 35.1%, resulting in an income tax expense of $38.1 million. The effective tax rate differs from the federal statutory rate of 21.0% primarily due to non-deductible amounts associated with the repurchase of convertible notes.

CONFERENCE CALL DIAL-IN AND WEBCAST DETAILS

WisdomTree will discuss its results and operational highlights during a live webcast on Friday, October 30, 2026 at 11:00 a.m. ET, which, together with all earnings materials, can be accessed via WisdomTree’s investor relations website at https://ir.wisdomtree.com. A replay of the webcast will be available shortly after the call.

Participants also can dial in using the following numbers: (877) 407-9210 or (201) 689-8049. Click here to access the participant international toll-free access numbers.

To avoid delays, we encourage participants to log in or dial into the conference call 10 minutes ahead of the scheduled start time.

About WisdomTree

WisdomTree is a modern global asset manager with capabilities across public markets, private markets, tokenization and onchain finance. We offer a diverse suite of exchange-traded products, models and solutions, private market investments and blockchain-enabled products and services, helping investors shape their financial future and financial professionals grow their businesses. Through WisdomTree Onchain™, we combine tokenized investment products, infrastructure and distribution capabilities into an integrated financial services platform serving retail and institutional investors.

WisdomTree currently has approximately $175.0 billion in assets under management globally, inclusive of assets managed by Ceres as of the last reportable period.

For more information about WisdomTree visit: https://www.wisdomtree.com.

For more information about WisdomTree Onchain, visit: https://www.wisdomtree.com/onchain.

Please visit us on X at @WisdomTreeNews.

WisdomTree® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.

The WisdomTree Connect™ institutional platform and WisdomTree Prime® digital wallet and digital asset services are made available through WisdomTree Digital Movement, Inc., a federally registered money services business, state-licensed money transmitter and financial technology company (NMLS ID: 2372500) or WisdomTree Digital Trust Company, LLC, and may be limited where prohibited by law. WisdomTree Digital Trust Company, LLC is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business. Visit https://wisdomtreeconnect.com, https://www.wisdomtreeprime.com or the WisdomTree Prime mobile app for more information.

PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE CONNECT AND WISDOMTREE PRIME:

NOT FDIC INSURED | NO BANK GUARANTEE | NOT A BANK DEPOSIT | MAY LOSE VALUE | NOT SIPC PROTECTED | NOT INSURED, ENDORSED, INDEMNIFIED OR GUARANTEED BY ANY GOVERNMENT AGENCY

References to third-party platforms, protocols, or use cases are provided for informational purposes only and do not constitute an endorsement, recommendation, or solicitation by WisdomTree or its affiliates. WisdomTree and its affiliates do not control or operate such third-party platforms or protocols and are not responsible for their operation or performance.

_______________________

(1)

See “Non-GAAP Financial Measurements.”

(2)

Revenue yield is computed by dividing our annualized adjusted operating revenues as reported in the GAAP to Non-GAAP Reconciliation herein by our average AUM during the period.

(3)

Adjusted operating margin is calculated as adjusted operating income divided by total revenues. Adjusted operating income excludes intangible asset amortization of $7.3 million for the nine months ended September 30, 2026 (none in the prior year period) and acquisition-related costs of $3.1 million and $4.4 million for the nine months ended September 30, 2026 and 2025, respectively.

(4)

Earnings per share (“EPS”) is calculated pursuant to the two-class method as it results in a lower EPS amount as compared to the treasury stock method. In addition, the three months ended September 30, 2025 includes $0.7 million of stock repurchase excise taxes, which is excluded from net income, but is required to be added to net income to arrive at income available to common stockholders in the calculation of EPS. This item is excluded from our EPS when computed on a non-GAAP basis.

WISDOMTREE, INC. AND SUBSIDIARIES
KEY OPERATING STATISTICS
(Unaudited)

 

Three Months Ended

Sept. 30,
2026

June 30,
2026

Mar. 31,
2026

Dec. 31,
2025

Sept. 30,
2025

GLOBAL PRODUCTS ($ in millions)

Beginning of period assets

$

162,910

$

152,556

$

144,525

$

137,175

$

126,070

Add: Assets acquired—Ceres acquisition

—

—

—

1,812

—

Add: Assets acquired—Atlantic House acquisition

—

4,137

—

—

—

Inflows/(outflows)

4,622

3,063

5,934

(283

)

2,241

Market appreciation

3,453

3,154

2,097

5,821

8,864

End of period assets

$

170,985

$

162,910

$

152,556

$

144,525

$

137,175

Average assets during the period

$

170,504

$

164,150

$

154,654

$

140,686

$

130,760

Average ETPs and tokenized products during the period

$

168,466

$

162,151

$

152,716

$

138,871

$

130,760

Average ETP advisory fee during the period

0.36%

0.36%

0.36%

0.35%

0.35%

Total revenue yield

0.42%

0.43%

0.42%

0.42%

0.38%

Revenue days

92

91

90

92

92

Number of products—end of the period

434

428

414

405

397

ETPs AND ONCHAIN PRODUCTS

U.S. LISTED ETFs ($ in millions)

Beginning of period assets

$

99,014

$

90,946

$

88,521

$

88,293

$

85,179

Inflows/(outflows)

2,382

1,079

2,643

(1,108

)

(445

)

Market appreciation/(depreciation)

240

6,989

(218

)

1,336

3,559

End of period assets

$

101,636

$

99,014

$

90,946

$

88,521

$

88,293

Average assets during the period

$

101,620

$

96,585

$

91,742

$

88,074

$

87,205

Number of ETFs—end of the period

93

92

90

85

84

EUROPEAN LISTED ETPs ($ in millions)

Beginning of period assets

$

61,106

$

58,758

$

53,345

$

48,290

$

40,541

Add: Assets acquired—Atlantic House acquisition

—

4,137

—

—

—

Inflows

1,731

2,090

3,118

609

2,448

Market appreciation/(depreciation)

3,184

(3,879

)

2,295

4,446

5,301

End of period assets

$

66,021

$

61,106

$

58,758

$

53,345

$

48,290

Average assets during the period

$

65,874

$

64,649

$

60,193

$

50,102

$

42,853

Number of ETPs—end of the period

320

315

304

300

295

ONCHAIN AUM ($ in millions)

Beginning of period assets

$

761

$

867

$

770

$

592

$

350

Inflows/(outflows)

509

(110

)

98

179

238

Market appreciation/(depreciation)

3

4

(1

)

(1

)

4

End of period assets

$

1,273

$

761

$

867

$

770

$

592

Average assets during the period

$

972

$

917

$

781

$

695

$

702

Number of products—end of the period

19

19

19

19

18

PRIVATE ASSETS ($ in millions)

Beginning of period assets

$

2,029

$

1,985

$

1,889

$

—

$

—

Add: Assets acquired—Ceres acquisition

—

—

—

1,812

—

Inflows

—

4

75

37

—

Market appreciation

26

40

21

40

—

End of period assets

$

2,055

$

2,029

$

1,985

$

1,889

$

—

Average assets during the period

$

2,038

$

1,999

$

1,938

$

1,815

$

—

Number of products—end of the period

2

2

1

1

—

ETPs AND ONCHAIN PRODUCT CATEGORIES ($ in millions)

U.S. Equity

Beginning of period assets

$

46,371

$

41,511

$

41,427

$

40,977

$

38,617

Inflows

769

458

354

191

32

Market appreciation/(depreciation)

57

4,402

(270

)

259

2,328

End of period assets

$

47,197

$

46,371

$

41,511

$

41,427

$

40,977

Average assets during the period

$

47,740

$

44,884

$

42,394

$

41,161

$

40,024

Commodity & Currency

Beginning of period assets

$

37,586

$

40,310

$

36,980

$

31,705

$

26,696

Inflows

1,009

1,890

35

177

1,096

Market appreciation/(depreciation)

2,497

(4,614

)

3,295

5,098

3,913

End of period assets

$

41,092

$

37,586

$

40,310

$

36,980

$

31,705

Average assets during the period

$

41,206

$

41,749

$

41,458

$

33,824

$

28,162

International Developed Market Equity

Beginning of period assets

$

32,219

$

29,186

$

25,616

$

23,893

$

21,725

(Outflows)/inflows

(135

)

749

3,495

1,147

478

Market appreciation

422

2,284

75

576

1,690

End of period assets

$

32,506

$

32,219

$

29,186

$

25,616

$

23,893

Average assets during the period

$

32,909

$

32,022

$

29,349

$

24,708

$

22,481

Fixed Income

Beginning of period assets

$

22,658

$

22,395

$

21,074

$

22,509

$

22,543

Inflows/(outflows)

2,719

320

1,272

(1,358

)

(58

)

Market (depreciation)/appreciation

(200

)

(57

)

49

(77

)

24

End of period assets

$

25,177

$

22,658

$

22,395

$

21,074

$

22,509

Average assets during the period

$

23,862

$

22,179

$

21,187

$

21,422

$

23,128

Emerging Market Equity

Beginning of period assets

$

11,279

$

10,143

$

10,643

$

10,855

$

10,957

Outflows

(106

)

(106

)

(206

)

(508

)

(250

)

Market (depreciation)/appreciation

(80

)

1,242

(294

)

296

148

End of period assets

$

11,093

$

11,279

$

10,143

$

10,643

$

10,855

Average assets during the period

$

11,248

$

11,188

$

10,902

$

10,839

$

10,874

Alternatives

Beginning of period assets

$

5,708

$

1,580

$

1,379

$

1,155

$

814

Add: Assets acquired—Atlantic House acquisition

—

4,137

—

—

—

Inflows

52

31

207

163

231

Market appreciation/(depreciation)

92

(40

)

(6

)

61

110

End of period assets

$

5,852

$

5,708

$

1,580

$

1,379

$

1,155

Average assets during the period

$

5,865

$

4,462

$

1,620

$

1,270

$

929

Leveraged & Inverse

Beginning of period assets

$

3,464

$

3,663

$

3,275

$

2,913

$

2,631

Inflows/(outflows)

272

(354

)

565

(15

)

(52

)

Market (depreciation)/appreciation

(102

)

155

(177

)

377

334

End of period assets

$

3,634

$

3,464

$

3,663

$

3,275

$

2,913

Average assets during the period

$

3,665

$

3,772

$

3,785

$

3,097

$

2,750

Cryptocurrency

Beginning of period assets

$

1,596

$

1,783

$

2,242

$

3,168

$

2,087

Inflows/(outflows)

42

71

137

(117

)

764

Market appreciation/(depreciation)

741

(258

)

(596

)

(809

)

317

End of period assets

$

2,379

$

1,596

$

1,783

$

2,242

$

3,168

Average assets during the period

$

1,971

$

1,895

$

2,021

$

2,550

$

2,412

Headcount

438

414

357

360

338

Note: Previously issued statistics may be restated due to fund closures and trade adjustments.

Source: WisdomTree

WISDOMTREE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)

 

Sept. 30,
2026

Dec. 31,
2025

(Unaudited)

ASSETS

Current assets:

Cash, cash equivalents and restricted cash

$

299,740

$

311,732

Financial instruments owned, at fair value

41,014

107,117

Accounts receivable

72,696

64,452

Prepaid expenses

11,326

7,338

Other current assets

2,304

1,723

Total current assets

427,080

492,362

Fixed assets, net

548

431

Deferred tax assets, net

—

9,803

Investments

31,747

29,075

Right of use assets—operating leases

2,324

2,764

Goodwill

360,495

228,624

Intangible assets, net

823,447

748,957

Other noncurrent assets

1,445

925

Total assets

$

1,647,086

$

1,512,941

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES

Current liabilities:

Compensation and benefits payable

$

48,286

$

52,435

Fund management and administration payable

31,766

29,448

Payable to Gold Bullion Holdings (Jersey) Limited (“GBH”)

14,667

13,940

Income taxes payable

3,889

2,295

Operating lease liabilities

1,752

1,614

Convertible notes—current

—

149,604

Accounts payable and other liabilities

20,212

32,720

Total current liabilities

120,572

282,056

Convertible notes—long term

1,058,716

804,203

Contingent consideration

13,697

11,844

Deferred tax liabilities

7,776

—

Operating lease liabilities—long term

582

1,166

Total liabilities

1,201,343

1,099,269

STOCKHOLDERS’ EQUITY

Common stock, par value $0.01; 400,000 shares authorized:

Issued and outstanding: 151,154 and 140,713 at September 30, 2026 and December 31, 2025, respectively

1,512

1,407

Additional paid-in capital

168,751

189,244

Accumulated other comprehensive (loss)/income

(2,527

)

2,227

Retained earnings

278,007

220,794

Total stockholders’ equity

445,743

413,672

Total liabilities and stockholders’ equity

$

1,647,086

$

1,512,941

WISDOMTREE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

(Unaudited)

 

Nine Months Ended

September 30,

2026

2025

Cash flows from operating activities:

Net income

$

70,369

$

69,107

Adjustments to reconcile net income to net cash provided by operating activities:

Advisory and license fees paid in gold, other precious metals and cryptocurrency

(69,127

)

(51,354

)

Loss on repurchase of convertible notes

68,925

13,011

Stock-based compensation

23,701

16,645

Depreciation and amortization

9,539

1,735

Amortization of issuance costs—convertible notes

3,546

2,151

Gains on financial instruments owned, at fair value

(2,015

)

(1,914

)

Increase in fair value of contingent consideration

1,853

—

Deferred income taxes

(1,512

)

2,628

Amortization of right of use asset

1,491

1,003

Imputed interest on payable to GBH

727

1,405

Losses on investments

435

49

Changes in operating assets and liabilities:

Accounts receivable

(2,887

)

582

Income taxes payable

1,294

(40

)

Prepaid expenses

(2,917

)

(2,351

)

Gold and other precious metals

69,733

49,686

Other assets

(27

)

(482

)

Fund management and administration payable

2,614

(749

)

Compensation and benefits payable

(8,412

)

(6,328

)

Operating lease liabilities

(1,480

)

(987

)

Accounts payable and other liabilities

(12,705

)

(540

)

Net cash provided by operating activities

153,145

93,257

Cash flows from investing activities:

Purchase of financial instruments owned, at fair value

(20,512

)

(25,314

)

Purchase of investments

(3,107

)

(17,553

)

Cash paid—software development

(2,659

)

(2,015

)

Purchase of fixed assets

(252

)

(154

)

Proceeds from the sale of financial instruments owned, at fair value

87,219

8,860

Cash paid—Atlantic House acquisition, net of cash acquired

(197,488

)

—

Net cash used in investing activities

(136,799

)

(36,176

)

Cash flows from financing activities:

Repurchase of convertible notes

(542,545

)

(36,681

)

Common stock repurchased

(61,506

)

(102,732

)

Dividends paid

(13,451

)

(13,218

)

Issuance costs—convertible notes

(12,593

)

(11,064

)

Proceeds from the issuance of convertible notes

603,750

475,000

Net cash (used in)/provided by financing activities

(26,345

)

311,305

(Decrease)/increase in cash flow due to changes in foreign exchange rate

(1,993

)

6,274

Net (decrease)/increase in cash, cash equivalents and restricted cash

(11,992

)

374,660

Cash, cash equivalents and restricted cash—beginning of year

311,732

181,191

Cash, cash equivalents and restricted cash—end of period

$

299,740

$

555,851

Supplemental disclosure of cash flow information:

Cash paid for income taxes

$

35,060

$

19,999

Cash paid for interest

$

45,128

$

15,198

NON-GAAP FINANCIAL MEASUREMENTS

In an effort to provide additional information regarding our results as determined by GAAP, we also disclose certain non-GAAP information which we believe provides useful and meaningful information. Our management reviews these non-GAAP financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-GAAP measurements so as to share this perspective of management. Non-GAAP measurements do not have any standardized meaning, do not replace nor are they superior to GAAP financial measurements and are unlikely to be comparable to similar measures presented by other companies. These non-GAAP financial measurements should be considered in the context with our GAAP results. The non-GAAP financial measurements contained in this press release include the following:

Adjusted Operating Income, Operating Expenses, Income Before Income Taxes, Income Tax Expense, Net Income and Diluted Earnings per Share

We disclose adjusted operating income, operating expenses, income before income taxes, income tax expense, net income and diluted earnings per share as non-GAAP financial measurements in order to report our results exclusive of items that are non-recurring or not core to our operating business. We believe presenting these non-GAAP financial measurements provides investors with a consistent way to analyze our performance. These non-GAAP financial measurements exclude the following:

Gains or losses on financial instruments owned: We account for our financial instruments owned as trading securities, which requires these instruments to be measured at fair value with gains and losses reported in net income. We exclude these items when calculating our non-GAAP financial measurements as the gains and losses introduce earnings volatility and are not core to our operating business.

Foreign currency remeasurement gains and losses on U.S. dollars held by foreign subsidiaries: GAAP requires account balances to be remeasured into an entity’s functional currency, with resulting gains and losses reported in net income. Foreign subsidiaries holding U.S. dollars remeasure these balances into their functional currencies and recognize the gains and losses. Also excluded are remeasurement gains on British pounds held to complete the Atlantic House acquisition. We exclude remeasurement effects from our non-GAAP financial measures, as they introduce earnings volatility, are not core to our operations and arise from balances denominated in our reporting currency.

Tax windfalls and shortfalls upon vesting of stock-based compensation awards: GAAP requires the recognition of tax windfalls and shortfalls within income tax expense. These items arise upon the vesting of stock-based compensation awards and the magnitude is directly correlated to the number of awards vesting/exercised, as well as the difference between the price of our stock on the date the award was granted and the date the award vested or was exercised. We exclude these items when calculating our non-GAAP financial measurements as they introduce earnings volatility and are not core to our operating business.

Remeasurement of contingent consideration arising from the Ceres acquisition: On October 1, 2025, we completed the Ceres acquisition for aggregate consideration consisting of (i) $275 million in cash payable at closing, subject to customary post-closing adjustments and (ii) contingent consideration of up to $225 million, payable in 2030, contingent upon Ceres achieving a compound annual growth rate in revenues of 12% to 22% during the measurement period of January 1, 2025 through December 31, 2029. GAAP requires contingent consideration to be re-measured each reporting period with changes in fair value reported in net income. We exclude changes in fair value of contingent consideration when calculating our non-GAAP financial measurements as these items are not core to our operating business.

Other items: Amortization of intangible assets, changes in deferred tax asset valuation allowance, imputed interest on our payable to Gold Bullion Holdings (Jersey) Limited (“GBH”), gains and losses recognized on our investments, losses related to convertible notes transactions and acquisition-related costs are excluded when calculating our non-GAAP financial measurements.

Adjusted Effective Income Tax Rate

We disclose our adjusted effective income tax rate as a non-GAAP financial measurement in order to report our effective income tax rate exclusive of items that are non-recurring or not core to our operating business. We believe reporting our adjusted effective income tax rate provides investors with a consistent way to analyze our income taxes. Our adjusted effective income tax rate is calculated by dividing adjusted income tax expense by adjusted income before income taxes. See above for information regarding the items that are excluded.

Gross Margin and Gross Margin Percentage

We disclose our gross margin and gross margin percentage as non-GAAP financial measurements because we believe they provide investors with a consistent way to analyze the amount we retain after paying third-party service providers to operate our ETPs. These measures also assist us in analyzing the profitability of our products. We define gross margin as total adjusted operating revenues less fund management and administration expenses. Gross margin percentage is calculated as gross margin divided by total adjusted operating revenues.

GAAP to NON-GAAP RECONCILIATION (CONSOLIDATED)
(in thousands)
(Unaudited)

 

Three Months Ended

Adjusted Net Income and Diluted Earnings per Share:

Sept. 30,
2026

June 30,
2026

Mar. 31,
2026

Dec. 31,
2025

Sept. 30,
2025

Net income/(loss), as reported

$

49,216

$

44,284

$

(23,131

)

$

40,026

$

19,701

Add back: Amortization of intangible assets arising from the Ceres and Atlantic House acquisitions, net of income taxes

2,426

1,969

1,087

1,086

—

(Deduct)/add back: (Decrease)/increase in fair value of contingent consideration, net of income taxes

(1,566

)

1,030

1,940

538

—

(Deduct)/add back: (Decrease)/increase in deferred tax asset valuation allowance on capital losses

(636

)

(1,615

)

151

(1,237

)

(24

)

Add back: Imputed interest on payable to GBH, net of income taxes

189

183

179

285

364

(Deduct)/add back: Foreign currency remeasurement (gains)/losses on U.S. dollar balances, net of income taxes

(98

)

36

(435

)

(141

)

—

(Deduct)/add back: (Gains)/losses on financial instruments owned, net of income taxes

(49

)

(2,143

)

668

8

(810

)

(Deduct)/add back: (Gains)/losses recognized on investments, net of income taxes

(2

)

(11

)

342

(75

)

734

Add back: Losses related to convertible notes transactions, net of income taxes

—

6,572

62,280

505

12,763

Deduct: Foreign currency remeasurement gains on British pounds held to complete the Atlantic House acquisition, net of income taxes

—

(3,277

)

—

—

—

Add back: Acquisition-related costs, net of income taxes

—

1,118

1,933

240

1,824

Deduct: Tax windfalls upon vesting of stock-based compensation awards

—

(66

)

(4,421

)

—

(76

)

Adjusted net income

$

49,480

$

48,080

$

40,593

$

41,235

$

34,476

Weighted average common shares—diluted

156,179

156,276

152,372

143,314

150,675

Adjusted earnings per share—diluted

$

0.32

$

0.31

$

0.27

$

0.29

$

0.23

Three Months Ended

Gross Margin and Gross Margin Percentage:

Sept. 30,
2026

June 30,
2026

Mar. 31,
2026

Dec. 31,
2025

Sept. 30,
2025

Operating revenues

$

179,375

$

177,160

$

159,470

$

147,434

$

125,616

Deduct: Fund management and administration

(30,532

)

(30,229

)

(24,880

)

(24,830

)

(22,353

)

Gross margin

$

148,843

$

146,931

$

134,590

$

122,604

$

103,263

Gross margin percentage

83.0%

82.9%

84.4%

83.2%

82.2%

Three Months Ended

Adjusted Operating Income and Adjusted Operating Income Margin:

Sept. 30,
2026

June 30,
2026

Mar. 31,
2026

Dec. 31,
2025

Sept. 30,
2025

Operating revenues

$

179,375

$

177,160

$

159,470

$

147,434

$

125,616

Operating income

74,122

71,811

59,350

59,747

$

45,654

Add back: Amortization of intangible assets arising from the Ceres and Atlantic House acquisitions

3,221

2,612

1,435

1,434

—

Add back: Acquisition-related costs

—

1,118

1,933

317

2,409

Adjusted operating income

$

77,343

$

75,541

$

62,718

$

61,498

$

48,063

Adjusted operating income margin

43.1%

42.6%

39.3%

41.7%

38.3%

Three Months Ended

Adjusted Total Operating Expenses:

Sept. 30,
2026

June 30,
2026

Mar. 31,
2026

Dec. 31,
2025

Sept. 30,
2025

Total operating expenses

$

105,253

$

105,349

$

100,120

$

87,687

$

79,962

Deduct: Amortization of intangible assets arising from the Ceres and Atlantic House acquisitions

(3,221

)

(2,612

)

(1,435

)

(1,434

)

—

Deduct: Acquisition-related costs

—

(1,118

)

(1,933

)

(317

)

(2,409

)

Adjusted total operating expenses

$

102,032

$

101,619

$

96,752

$

85,936

$

77,553

Three Months Ended

Adjusted Income Before Income Taxes:

Sept. 30,
2026

June 30,
2026

Mar. 31,
2026

Dec. 31,
2025

Sept. 30,
2025

Income/(loss) before income taxes

$

64,477

$

58,547

$

(14,582

)

$

50,463

$

29,517

Add back: Amortization of intangible assets arising from the Ceres and Atlantic House acquisitions

3,221

2,612

1,435

1,434

—

(Deduct)/add back: (Decrease)/increase in fair value of contingent consideration

(2,069

)

1,360

2,562

710

—

Add back: Imputed interest on payable to GBH

249

242

236

377

481

(Deduct)/add back: Foreign currency remeasurement (gains)/losses on U.S. dollar balances, net of income taxes

(132

)

68

(566

)

(205

)

—

(Deduct)/add back: (Gains)/losses on financial instruments owned

(65

)

(2,831

)

882

10

(1,070

)

(Deduct)/add back: (Gains)/losses recognized on investments

(2

)

(15

)

452

(99

)

970

Add back: Losses related to convertible notes transactions

—

6,623

62,302

833

13,011

Deduct: Foreign currency remeasurement gains on British pounds held to complete the Atlantic House acquisition, net of income taxes

—

(4,370

)

—

—

—

Add back: Acquisition-related costs

—

1,118

1,933

317

2,409

Adjusted income before income taxes

$

65,679

$

63,354

$

54,654

$

53,840

$

45,318

Three Months Ended

Adjusted Income Tax Expense and Adjusted Effective Income Tax Rate:

Sept. 30,
2026

June 30,
2026

Mar. 31,
2026

Dec. 31,
2025

Sept. 30,
2025

Adjusted income before income taxes (above)

$

65,679

$

63,354

$

54,654

$

53,840

$

45,318

Income tax expense

$

15,261

$

14,263

$

8,549

$

10,437

$

9,816

Add back: Tax benefit of intangible asset amortization arising from the Ceres and Atlantic House acquisitions

795

643

348

348

—

Add back/(deduct): decrease/(increase) in deferred tax asset valuation allowance on capital losses

636

1,615

(151

)

1,237

24

(Deduct)/add back: Tax (expense)/benefit arising from (decrease)/increase in fair value of contingent consideration

(503

)

330

622

172

—

Add back: Tax benefit on imputed interest

60

59

57

92

117

(Deduct)/add back: Tax (expense)/benefit on foreign currency remeasurement losses/(gains) on U.S. dollar balances

(34

)

32

(131

)

(64

)

—

(Deduct)/add back: Tax (expense)/benefit arising from (gains)/losses on financial instruments owned

(16

)

(688

)

214

2

(260

)

Deduct: Tax expense on foreign currency remeasurement gains on British pounds held to complete the Atlantic House acquisition

—

(1,093

)

—

—

—

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

—

66

4,421

—

76

Add back: Tax benefit arising from convertible notes transactions

—

51

22

328

248

(Deduct)/add back: Tax (expense)/benefit on (gains)/losses on investments

—

(4

)

110

(24

)

236

Add back: Tax benefit on acquisition-related costs

—

—

—

77

585

Adjusted income tax expense

$

16,199

$

15,274

$

14,061

$

12,605

$

10,842

Adjusted effective income tax rate

24.7%

24.1%

25.7%

23.4%

23.9%

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, the risks described below. If one or more of these or other risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this press release completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.

In particular, forward-looking statements in this press release may include statements about:

  • anticipated trends, conditions and investor sentiment in the global markets and ETPs;
  • anticipated levels of inflows into and outflows out of our ETPs;
  • our ability to deliver favorable rates of return to investors;
  • competition in our business;
  • whether we will experience future growth;
  • our ability to develop new products and services and their potential for success;
  • our ability to maintain current vendors or find new vendors to provide services to us at favorable costs;
  • our ability to successfully implement our WisdomTree Onchain™ strategy relating to digital assets and blockchain-enabled financial services and achieve its objectives;
  • our ability to successfully operate and expand our business in non-U.S. markets;
  • the effect of laws and regulations that apply to our business;
  • the potential benefits arising from the Ceres and Atlantic House acquisitions, including financial or strategic outcomes; and
  • our ability to successfully implement our strategic goals relating to the acquisitions and integrate the acquired businesses.

Our business is subject to many risks and uncertainties, including without limitation:

  • declining prices of securities, gold and other precious metals and other commodities and changes in interest rates and general market conditions can adversely affect our business by reducing the market value of the assets we manage or causing WisdomTree ETP investors to sell their fund shares and trigger redemptions;
  • fluctuations in the amount and mix of our AUM, whether caused by disruptions in the financial markets or otherwise, including but not limited to events such as a pandemic or war, geopolitical conflicts, political events, acts of terrorism and other matters beyond our control, may negatively impact revenues and operating margins, and may impede our ability to refinance our debt upon maturity or increase the cost of borrowing upon a refinancing;
  • competitive pressures could reduce revenues and profit margins;
  • we derive a substantial portion of our revenues from a limited number of products, and, as a result, our operating results are particularly exposed to investor sentiment toward investing in the products’ strategies and our ability to maintain the AUM of these products, as well as the performance of these products and market-specific and political and economic risk;
  • a significant portion of our AUM is held in products with exposure to U.S. and international developed markets, and we therefore have exposure to domestic and foreign market conditions and are subject to currency exchange rate risks;
  • withdrawals or broad changes in investments in our ETPs by investors with significant positions may negatively impact revenues and operating margins;
  • we face increased operational, regulatory, financial and other risks as a result of conducting our business internationally, and as we expand our digital assets product offerings and services beyond our existing ETP business;
  • many of our ETPs have a limited track record, and poor investment performance could cause our revenues to decline; and
  • we depend on third parties to provide many critical services to operate our business and our ETPs. The failure of key vendors to adequately provide such services could materially affect our operating business and harm WisdomTree ETP investors.

Additional risks include those associated with the Ceres and Atlantic House acquisitions, including the risk that the integrations may be more difficult, time-consuming or costly than expected, or that expected benefits (including projected business growth, realization of synergies, or the ability to raise additional capital into the funds of the acquired businesses) may not be realized as anticipated. Other factors, such as general economic conditions, including currency exchange rate fluctuations, also may have an effect on the results of our operations. For a more complete description of the risks noted above and other risks that could cause our actual results to differ from our current expectations, see “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.

The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Therefore, these forward-looking statements do not represent our views as of any date other than the date of this press release.

Category: Business Update

View original source (Business Wire)WisdomTree, Inc. on 6ix

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