WisdomTree — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $49.2 million ($0.32 diluted EPS), compared to $44.3 million ($0.28 diluted EPS) in Q2 2026 and $19.7 million ($0.13 diluted EPS) in Q3 2025.
• Adjusted net income was $49.5 million ($0.32 adjusted diluted EPS), compared to $48.1 million ($0.31 adjusted diluted EPS) in Q2 2026 and $34.5 million ($0.23 adjusted diluted EPS) in Q3 2025.
• Operating revenues reached $179.4 million, a 1.3% increase from Q2 2026 and a 42.8% increase from Q3 2025.
• Gross margin was 83.0%, essentially unchanged from the prior quarter.
• Operating income margin was 41.3% (43.1% adjusted), a 0.8 point increase from Q2 2026 and a 5.0 point increase from Q3 2025.
• Year-to-date operating income margin was 39.8% (41.8% adjusted), a 6.8 point increase (7.5 point adjusted increase) from the prior-year period.
• Average advisory fee remained at 0.36% for the quarter, unchanged from Q2 2026 and up from 0.35% in Q3 2025.
• Revenue yield was 0.42%, a 1 basis point decrease from Q2 2026 but up from 0.38% in Q3 2025.
• Cash, cash equivalents, and restricted cash ended the period at $299.7 million, down from $311.7 million at December 31, 2025.
• Total liabilities were $1.20 billion, up from $1.10 billion at December 31, 2025.

Guidance and Future Outlook:

• Management stated the company is focused on executing a playbook to generate high-quality organic growth, scale efficiently, and translate momentum into greater earnings power.
• The company aims to capitalize on opportunities across liquid alternatives, private markets, and tokenization while deepening presence in existing markets.
• Management believes WisdomTree is well-positioned to drive sustained growth and create significant long-term value by integrating public markets, private markets, and tokenization into one ecosystem.

Business Segments and Product Lines:

• Ending Assets Under Management (AUM) reached a record $171.0 billion, a 5.0% increase from the prior quarter driven by net inflows and market appreciation.
• Net inflows were $4.6 billion for the quarter, primarily driven by fixed income, commodity, and U.S. equity products in the United States and Europe.
• Year-to-date net inflows were over $13.6 billion, representing a 13% annualized organic growth rate.
• U.S. Listed ETFs ended the quarter with $101.6 billion in assets, up from $99.0 billion at the start of the quarter.
• European Listed ETPs ended the quarter with $66.0 billion in assets, up from $61.1 billion at the start of the quarter.
• Onchain Products ended the quarter with $1.3 billion in assets, up from $0.8 billion at the start of the quarter.
• Private Assets ended the quarter with $2.1 billion in assets, up from $2.0 billion at the start of the quarter.
• Launched the WisdomTree Efficient Long/Short U.S. SmallCap Equity Fund (WSLS) and WisdomTree Global Alpha Fund (WTAL) in the U.S.
• Launched multiple ETFs in Europe, including the WisdomTree Enhanced Commodity UCITS ETF – GBP Hedged (WCOM), WisdomTree Physical Silver – EUR Daily Hedged (AGSE), and the first actively managed autocallable ETFs in Europe (DRTN, DRTD).
• Introduced WisdomTree Onchain™ to consolidate tokenized funds, onchain infrastructure, and platforms under one brand.

Market and Competitive Landscape:

• The company operates as a modern global asset manager with capabilities across public markets, private markets, tokenization, and onchain finance.
• Strategic partnerships were established with MoonPay to expand U.S. investor access to tokenized funds and with BitGo to bring tokenized Treasury yield and liquidity capabilities to institutional investors on the BitGo platform.
• Entered a strategic relationship with Return Stacked® ETFs to deliver co-branded, capital-efficient model portfolios.
• Completed the rebrand of Atlantic House's fund and structured solutions business following its acquisition in May 2026.
• Recognized with "M&A Deal of the Year" for the Ceres Partners, LLC acquisition at the 2026 Asset Management STAR Awards North America.

Risks and Challenges:

• Risks include declining prices of securities, commodities, and changes in interest rates which may reduce AUM value or trigger redemptions.
• Fluctuations in AUM due to market disruptions, geopolitical conflicts, or political events could negatively impact revenues and operating margins.
• Competitive pressures could reduce revenues and profit margins.
• A substantial portion of revenues is derived from a limited number of products, exposing the company to investor sentiment and product performance risks.
• Significant exposure to U.S. and international developed markets subjects the company to domestic and foreign market conditions and currency exchange rate risks.
• Operational, regulatory, and financial risks are increased by international operations and the expansion of onchain product offerings.
• Integration risks associated with the Ceres and Atlantic House acquisitions, including potential difficulties, costs, or failure to realize expected synergies.

Management Commentary and Tone:

• Jarrett Lilien, President and COO, highlighted the continued strength and scalability of the business, citing record AUM, meaningful contributions across the global platform, and expanding distribution capabilities.
• Jonathan Steinberg, CEO, emphasized the company's evolution into a modern global asset manager positioned at the intersection of the democratization of investing, convergence of public and private markets, and tokenization of financial assets.
• Management expressed confidence in the company's differentiated capabilities and highly efficient operating model to drive sustained growth.

Other Key Points:

• Retired $18.1 million aggregate principal amount of convertible senior notes due 2029 for $32.3 million in cash consideration.
• Repurchased $10.6 million of common stock (approximately 0.5 million shares) at an average price of $21.29 per share.
• Declared a quarterly dividend of $0.03 per share, payable on November 25, 2026, to stockholders of record as of November 11, 2026.
• Headcount increased to 438 at the end of the quarter, up from 414 in Q2 2026 and 338 in Q3 2025.
• The effective income tax rate for the quarter was 23.7%, with an adjusted effective tax rate of 24.7%.
• Recognized a $2.1 million gain on the remeasurement of contingent consideration related to the Ceres acquisition.
• Operating expenses increased 31.6% year-over-year, primarily due to higher incentive compensation, headcount, and intangible asset amortization from acquisitions.