Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 001-10932 WisdomTree Investments, Inc. (Exact name of registrant as specified in its charter) Delaware 13-3487784 ...

Q2/21 Results July 30, 2021 Forward looking statements This presentation 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, ...

WisdomTree Investments, Inc. (WETF) Q2 2021 Earnings Conference Call July 30, 2021 9:00 AM ET Company Participants Jessica Zaloom – Head-Corporate Communications and Public Relations Jonathan Steinberg – Chief Executive Officer Jarrett Lilien – President and Chief Operating Officer Bryan Edmiston – Chief Financial Officer Jeremy Schwartz – Global Head of Research Conference Call Participants Brennan Hawken – UBS Margo Rybeck – KBW Michael Cyprys – Morgan Stanley Keith Housum – Northcoast Research Operator L ...

[PART I: FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%3A%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited consolidated financial statements for the periods ended March 31, 2021, and December 31, 2020 [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) A summary of the company's assets, liabilities, and stockholders' equity at specific points in time | Metric | March 31, 2021 (Thousands) | December 31, 2020 (Thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | | Total Assets | $885,217 | $896,692 | | Total Liabilities | $478,464 | $497,858 | | Total Stockholders' Equity | $274,184 | $266,265 | | Cash and Cash Equivalents | $62,302 | $73,425 | | Current Assets | $131,964 | $141,861 | | Current Liabilities | $56,558 | $73,999 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) A summary of the company's revenues, expenses, and net income over a specific period | Metric | Three Months Ended March 31, 2021 (Thousands) | Three Months Ended March 31, 2020 (Thousands) | Change (YoY) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Total Revenues | $72,830 | $63,874 | +14.0% | | Operating Expenses | $54,223 | $48,240 | +12.4% | | Operating Income | $18,607 | $15,634 | +19.0% | | Net Income/(Loss) | $15,147 | $(8,638) | N/A (swing to profit) | | Basic EPS | $0.09 | $(0.06) | N/A (swing to profit) | | Diluted EPS | $0.09 | $(0.06) | N/A (swing to profit) | [Consolidated Statements of Comprehensive Income/(Loss)](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%2F%28Loss%29) A summary of net income and other comprehensive income or loss items | Metric | Three Months Ended March 31, 2021 (Thousands) | Three Months Ended March 31, 2020 (Thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | | Net income/(loss) | $15,147 | $(8,638) | | Other comprehensive loss | $(117) | $(853) | | Comprehensive income/(loss) | $15,030 | $(9,491) | [Consolidated Statements of Changes in Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) A reconciliation of the beginning and ending balances of stockholders' equity accounts - Stockholders' equity increased by **$7.9 million** in Q1 2021, driven by **$15.1 million in net income**, partially offset by dividends, share repurchases, and other adjustments[24](index=24&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) A summary of cash inflows and outflows from operating, investing, and financing activities | Metric | Three Months Ended March 31, 2021 (Thousands) | Three Months Ended March 31, 2020 (Thousands) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by/(used in) operating activities | $1,865 | $(2,634) | | Net cash (used in)/provided by investing activities | $(5,565) | $8,754 | | Net cash used in financing activities | $(7,188) | $(11,391) | | Decrease in cash and cash equivalents | $(11,123) | $(6,543) | | Cash and cash equivalents—end of period | $62,302 | $68,429 | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed explanations of accounting policies and specific items in the financial statements - The company early adopted ASU 2020-06 on January 1, 2021, simplifying convertible instrument accounting and reducing interest expense by approximately **$0.4 million per quarter**[69](index=69&type=chunk)[254](index=254&type=chunk) - The company adopted ASU 2019-12 on January 1, 2021, to simplify income tax accounting, which did not have a material impact on its financial statements[70](index=70&type=chunk)[255](index=255&type=chunk) [Note 1. Organization and Description of Business](index=11&type=section&id=Note%201.%20Organization%20and%20Description%20of%20Business) An overview of the company's business as an ETP sponsor and asset manager - WisdomTree Investments, Inc. is an **ETP sponsor and asset manager** offering a range of strategies including equity, commodity, and cryptocurrency[30](index=30&type=chunk) [Note 2. Significant Accounting Policies](index=11&type=section&id=Note%202.%20Significant%20Accounting%20Policies) A description of the key accounting principles and methods used in preparing the financial statements - The financial statements are prepared in conformity with **U.S. GAAP** and include wholly-owned subsidiaries, with all intercompany accounts and transactions eliminated[31](index=31&type=chunk) - Revenue is primarily from advisory fees based on ETPs' average daily net assets, recognized over time as the performance obligation is satisfied[37](index=37&type=chunk) - Goodwill and indefinite-lived intangible assets are tested for impairment at least annually on **November 30th**[53](index=53&type=chunk)[56](index=56&type=chunk) [Note 3. Cash and Cash Equivalents](index=16&type=section&id=Note%203.%20Cash%20and%20Cash%20Equivalents) Details regarding the company's cash holdings and regulatory capital requirements | Metric | March 31, 2021 (Thousands) | December 31, 2020 (Thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | | Cash and Cash Equivalents | $62,302 | $73,425 | - Certain international subsidiaries are required to maintain minimum regulatory capital, which was **$12.2 million** at March 31, 2021, and **$10.7 million** at December 31, 2020[72](index=72&type=chunk) [Note 4. Fair Value Measurements](index=16&type=section&id=Note%204.%20Fair%20Value%20Measurements) Information on how the company measures and categorizes its financial instruments at fair value - The company categorizes financial instruments into **Level 1, Level 2, and Level 3** based on the transparency of inputs used in fair value measurement[74](index=74&type=chunk)[77](index=77&type=chunk) | Metric | Three Months Ended March 31, 2021 (Thousands) | Three Months Ended March 31, 2020 (Thousands) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Deferred consideration (Beginning balance) | $230,137 | $173,024 | | Net realized losses (contractual gold payments) | $4,270 | $3,760 | | Net unrealized (gains)/losses (revaluation) | $(2,832) | $2,208 | | Settlements | $(4,429) | $(3,692) | | Deferred consideration (Ending balance) | $227,146 | $175,300 | [Note 5. Securities Owned](index=18&type=section&id=Note%205.%20Securities%20Owned) Details on the company's holdings of trading securities and related performance | Metric | March 31, 2021 (Thousands) | December 31, 2020 (Thousands) | | :---------------- | :-------------------------- | :-------------------------- | | Trading securities | $34,771 | $34,895 | - The company recognized trading losses of **$561 thousand** in Q1 2021, compared to **$196 thousand** in Q1 2020, on securities owned[86](index=86&type=chunk) [Note 6. Securities Held-to-Maturity](index=18&type=section&id=Note%206.%20Securities%20Held-to-Maturity) Information on debt instruments classified as held-to-maturity | Metric | March 31, 2021 (Thousands) | December 31, 2020 (Thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | | Debt instruments: Pass-through GSEs (amortized cost) | $411 | $451 | - Proceeds from held-to-maturity securities maturing or called prior to maturity significantly decreased to **$38 thousand** in Q1 2021 from **$6.0 million** in Q1 2020[88](index=88&type=chunk) - **No allowance for credit losses** was provided on held-to-maturity securities due to an implicit U.S. government guarantee[89](index=89&type=chunk) [Note 7. Investments](index=19&type=section&id=Note%207.%20Investments) Details on the company's equity investments, particularly in Securrency, Inc | Investment | March 31, 2021 (Thousands) | December 31, 2020 (Thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | | Securrency, Inc. – Series A convertible preferred stock | $8,349 | $8,112 | | Securrency, Inc. – Series B convertible preferred stock | $5,500 | — | | Total | $13,849 | $8,112 | - The company recognized a gain of **$237 thousand** on its Series A Shares in Securrency, Inc. on March 8, 2021, upon re-measurement to fair value[93](index=93&type=chunk) [Note 8. Fixed Assets, net](index=19&type=section&id=Note%208.%20Fixed%20Assets%2C%20net) A breakdown of the company's property and equipment, net of depreciation | Metric | March 31, 2021 (Thousands) | December 31, 2020 (Thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | | Equipment | $2,959 | $2,836 | | Furniture and fixtures | $2,225 | $2,225 | | Leasehold improvements | $11,021 | $11,012 | | Less: accumulated depreciation and amortization | $(8,773) | $(8,494) | | Total | $7,432 | $7,579 | [Note 9. Deferred Consideration](index=20&type=section&id=Note%209.%20Deferred%20Consideration) Details on the obligation to make fixed payments of physical gold bullion - The company has an obligation to pay ETFS Capital fixed payments of physical gold bullion, starting with **9,500 ounces per year** through March 31, 2058[96](index=96&type=chunk) - The gain on revaluation of deferred consideration in Q1 2021 was due to a **decline in spot gold prices**, while the loss in Q1 2020 was due to an increase in forward-looking gold prices[100](index=100&type=chunk)[216](index=216&type=chunk) | Metric | Three Months Ended March 31, 2021 (Thousands) | Three Months Ended March 31, 2020 (Thousands) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Contractual Gold Payments | $4,270 | $3,760 | | Contractual Gold Payments – gold ounces paid | 2,375 | 2,375 | | Gain/(loss) on revaluation of deferred consideration – gold payments | $2,832 | $(2,208) | [Note 10. Convertible Notes](index=20&type=section&id=Note%2010.%20Convertible%20Notes) Information regarding the company's 4.25% Convertible Senior Notes due 2023 - The company issued **$175 million** aggregate principal amount of 4.25% Convertible Senior Notes due 2023 in June and August 2020[101](index=101&type=chunk) - The fair value of the Convertible Notes was **$215.0 million** at March 31, 2021, classified as Level 2 in the fair value hierarchy[107](index=107&type=chunk) | Metric | March 31, 2021 (Thousands) | December 31, 2020 (Thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | | Principal amount | $175,000 | $175,000 | | Carrying amount | $171,163 | $166,646 | | Effective interest rate | 5.30% | 6.29% | [Note 11. Preferred Shares](index=22&type=section&id=Note%2011.%20Preferred%20Shares) Details on the Series A Non-Voting Convertible Preferred Stock issued by the company - The company issued **14,750 shares** of Series A Non-Voting Convertible Preferred Stock, convertible into **14,750,000 common shares**[110](index=110&type=chunk) | Metric | March 31, 2021 (Thousands) | December 31, 2020 (Thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | | Preferred Shares – carrying value | $132,569 | $132,569 | | Redemption value of the Preferred Shares | $88,642 | $72,667 | [Note 12. Leases](index=23&type=section&id=Note%2012.%20Leases) Information on the company's operating leases, costs, and future commitments - The company recognized an impairment charge of **$303 thousand** in Q1 2021 due to exiting its London office[119](index=119&type=chunk)[218](index=218&type=chunk) | Metric | Three Months Ended March 31, 2021 (Thousands) | Three Months Ended March 31, 2020 (Thousands) | | :---------------- | :-------------------------------- | :-------------------------------- | | Total lease cost | $992 | $1,140 | | Metric | March 31, 2021 (Thousands) | | :-------------------------------- | :-------------------------- | | Total future minimum lease payments (undiscounted) | $25,775 | [Note 13. Contingencies](index=24&type=section&id=Note%2013.%20Contingencies) Disclosure of potential liabilities from lawsuits and other contingent events - The company is facing lawsuits in Italy seeking approximately **€9,000 ($10,565)** in aggregate, with no accrual made as of March 31, 2021[123](index=123&type=chunk)[124](index=124&type=chunk) [Note 14. Variable Interest Entities](index=24&type=section&id=Note%2014.%20Variable%20Interest%20Entities) Information on the company's involvement with variable interest entities like Securrency | Metric | March 31, 2021 (Thousands) | December 31, 2020 (Thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | | Carrying Amount – Assets (Securrency) | $13,849 | $8,112 | | Maximum exposure to loss | $13,849 | $8,112 | [Note 15. Revenues from Contracts with Customers](index=25&type=section&id=Note%2015.%20Revenues%20from%20Contracts%20with%20Customers) A breakdown of operating revenues by type and geographic location | Metric | Three Months Ended March 31, 2021 (Thousands) | Three Months Ended March 31, 2020 (Thousands) | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Advisory fees | $71,616 | $62,950 | | Other | $1,214 | $924 | | Total operating revenues | $72,830 | $63,874 | | Geographic Distribution (Q1 2021, Thousands) | | :-------------------------- | :-------------------------- | | United States | $40,699 | | Jersey | $29,990 | | Ireland | $2,141 | [Note 16. Related Party Transactions](index=25&type=section&id=Note%2016.%20Related%20Party%20Transactions) Disclosure of transactions and balances with related parties | Metric | Three Months Ended March 31, 2021 (Thousands) | Three Months Ended March 31, 2020 (Thousands) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Advisory services provided to related parties | $71,616 | $62,950 | | Accounts Receivable from Related Parties (March 31, 2021, Thousands) | | :-------------------------- | :-------------------------- | | Receivable from WTT | $14,347 | | Receivable from ManJer Issuers | $11,134 | | Receivable from WMAI and WTI | $1,777 | [Note 17. Stock-Based Awards](index=26&type=section&id=Note%2017.%20Stock-Based%20Awards) Details on stock-based compensation expense and unrecognized costs - Unrecognized stock-based compensation expense was **$16.5 million** at March 31, 2021, with an average remaining vesting period of **1.70 years**[139](index=139&type=chunk) | Metric | Three Months Ended March 31, 2021 (Thousands) | Three Months Ended March 31, 2020 (Thousands) | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Stock-based compensation expense | $3,143 | $3,239 | [Note 18. Earnings Per Share](index=27&type=section&id=Note%2018.%20Earnings%20Per%20Share) A calculation of basic and diluted earnings per share | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Basic earnings/(loss) per share | $0.09 | $(0.06) | | Diluted earnings/(loss) per share | $0.09 | $(0.06) | | Weighted average common shares (in thousands) | 145,649 | 152,519 | [Note 19. Income Taxes](index=28&type=section&id=Note%2019.%20Income%20Taxes) An analysis of the company's income tax provision and deferred tax assets - The Q1 2021 effective tax rate of **-14.9%** was primarily due to a **$5.2 million** reduction in unrecognized tax benefits and other factors[145](index=145&type=chunk) | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Effective income tax rate | -14.9% | 21.5% | | Income tax benefit | $1,969 | $2,371 | | Metric | March 31, 2021 (Thousands) | December 31, 2020 (Thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | | Deferred tax assets, net | $6,215 | $8,063 | | Gross unrecognized tax benefits (including interest and penalties) | $22,222 | $27,016 | [Note 20. Shares Repurchased](index=30&type=section&id=Note%2020.%20Shares%20Repurchased) Information on the company's share repurchase program and activities - The company's share repurchase program was extended through April 27, 2022, with **$49.6 million** remaining for future purchases as of March 31, 2021[160](index=160&type=chunk)[162](index=162&type=chunk) - During Q1 2021, the company repurchased **489,763 shares** of common stock for an aggregate cost of **$2.6 million**[161](index=161&type=chunk) [Note 21. Goodwill and Intangible Assets](index=30&type=section&id=Note%2021.%20Goodwill%20and%20Intangible%20Assets) A summary of the carrying amounts of goodwill and indefinite-lived intangible assets - The indefinite-lived intangible assets of **$601.2 million** are related to the right to manage AUM from the ETFS Acquisition[165](index=165&type=chunk) | Metric | March 31, 2021 (Thousands) | | :------- | :-------------------------- | | Goodwill | $85,856 | | Intangible Assets (Indefinite-Lived) | $601,247 | [Note 22. Contingent Payments](index=31&type=section&id=Note%2022.%20Contingent%20Payments) Details on contingent payments related to business dispositions - The company exited its investment in AdvisorEngine on May 4, 2020, receiving **$9.6 million** upfront and contingent payments up to **$10.4 million**[167](index=167&type=chunk) - The sale of the Canadian ETF business in Q1 2020 resulted in a recognized gain of **$2.9 million**[169](index=169&type=chunk)[170](index=170&type=chunk) [Note 23. Subsequent Events](index=31&type=section&id=Note%2023.%20Subsequent%20Events) Disclosure of significant events occurring after the balance sheet date - No events requiring disclosure occurred subsequent to the issuance date of the financial statements[171](index=171&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) An analysis of the company's financial performance, condition, and recent developments for Q1 2021 [Executive Summary](index=32&type=section&id=Executive%20Summary) An overview of the company's business, strategy, and recent initiatives in digital assets - WisdomTree is a leading global ETP sponsor with **$69.5 billion in AUM** as of March 31, 2021[174](index=174&type=chunk) - The company offers ETPs tracking proprietary and third-party indexes, commodities, and actively managed products, emphasizing 'Modern Alpha'[175](index=175&type=chunk)[176](index=176&type=chunk) - Recent digital assets initiatives include filing for a **Bitcoin Trust**, launching a physically backed **Ethereum ETP** in Europe, and investing in Securrency, Inc[180](index=180&type=chunk) [Assets Under Management](index=33&type=section&id=Assets%20Under%20Management) A review of changes in the company's global assets under management - Global ETP AUM increased from **$67.4 billion** at December 31, 2020, to **$69.5 billion** at March 31, 2021, driven by market appreciation and net inflows[194](index=194&type=chunk) - U.S. listed ETFs' AUM increased from **$38.5 billion** to **$42.2 billion** in Q1 2021, due to market appreciation and net inflows[188](index=188&type=chunk)[194](index=194&type=chunk) - International ETPs' AUM decreased from **$28.9 billion** to **$27.4 billion** in Q1 2021, primarily due to market depreciation in gold products[190](index=190&type=chunk)[194](index=194&type=chunk) - During Q1 2021, global equity markets performed favorably while government bond yields rose and **gold prices declined 10.6%**[182](index=182&type=chunk)[183](index=183&type=chunk) [Our Operating and Financial Results](index=34&type=section&id=Our%20Operating%20and%20Financial%20Results) A summary of the company's financial performance in the first quarter of 2021 - Operating revenues for Q1 2021 were **$72.8 million**, up **14.0%** year-over-year, driven by higher average AUM[191](index=191&type=chunk) - Total operating expenses increased **12.4%** to **$54.2 million** in Q1 2021, primarily due to higher incentive compensation and other costs[191](index=191&type=chunk) - The company reported net income of **$15.1 million** in Q1 2021, a significant improvement from a net loss of **($8.6) million** in Q1 2020[193](index=193&type=chunk) [Key Operating Statistics](index=37&type=section&id=Key%20Operating%20Statistics) A presentation of key metrics tracking the company's operational performance | Metric | March 31, 2021 | December 31, 2020 | March 31, 2020 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Global AUM (End of period, $ millions) | $69,537 | $67,392 | $50,347 | | Global AUM (Average during period, $ millions) | $69,552 | $64,125 | $60,189 | | Global Inflows/(Outflows) ($ millions) | $1,279 | $881 | $(536) | | Average ETP advisory fee | 0.42% | 0.41% | 0.42% | | Number of ETPs | 313 | 309 | 331 | | Headcount | 227 | 217 | 210 | [Three Months Ended March 31, 2021 Compared to Three Months Ended March 31, 2020](index=39&type=section&id=Three%20Months%20Ended%20March%2031%2C%202021%20Compared%20to%20Three%20Months%20Ended%20March%2031%2C%202020) A detailed comparison of financial results for the first quarters of 2021 and 2020 [Selected Operating and Financial Information](index=39&type=section&id=Selected%20Operating%20and%20Financial%20Information) A summary table comparing key financial metrics year-over-year | Metric | Q1 2021 (Thousands) | Q1 2020 (Thousands) | Change ($) | Change (%) | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Average global AUM | $69,552 | $60,189 | $9,363 | 15.6% | | Advisory fees | $71,616 | $62,950 | $8,666 | 13.8% | | Total revenues | $72,830 | $63,874 | $8,956 | 14.0% | | Total operating expenses | $54,223 | $48,240 | $5,983 | 12.4% | [Average Global AUM](index=39&type=section&id=Average%20Global%20AUM) An analysis of the growth in average global assets under management - Average global AUM increased **15.6%** to **$69.6 billion** in Q1 2021 from **$60.2 billion** in Q1 2020, driven by market appreciation and net inflows[198](index=198&type=chunk) [Operating Revenues](index=39&type=section&id=Operating%20Revenues) A breakdown of the increase in advisory fees and other income - Advisory fee revenues increased **13.8%** to **$71.6 million** in Q1 2021 from **$63.0 million** in Q1 2020, primarily due to higher average global AUM[199](index=199&type=chunk) - Other income increased **31.4%** to **$1.2 million** in Q1 2021 from **$0.9 million** in Q1 2020[200](index=200&type=chunk) [Operating Expenses](index=39&type=section&id=Operating%20Expenses) A detailed analysis of the changes in various operating expense categories - Compensation and benefits increased due to higher incentive compensation accruals and an increase in headcount from **210 to 227**[203](index=203&type=chunk) - Sales and business development expense decreased primarily due to lower discretionary spending resulting from the **COVID-19 pandemic**[206](index=206&type=chunk) - Professional fees increased due to spending related to the company's **digital assets initiative**[208](index=208&type=chunk) | Expense Category | Q1 2021 (Thousands) | Q1 2020 (Thousands) | Change ($) | Change (%) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Compensation and benefits | $22,627 | $17,295 | $5,332 | 30.8% | | Fund management and administration | $15,521 | $14,485 | $1,036 | 7.2% | | Marketing and advertising | $3,006 | $2,468 | $538 | 21.8% | | Sales and business development | $2,145 | $3,417 | $(1,272) | (37.2%) | | Contractual gold payments | $4,270 | $3,760 | $510 | 13.6% | | Professional fees | $2,013 | $1,273 | $740 | 58.1% | | Total operating expenses | $54,223 | $48,240 | $5,983 | 12.4% | [Other Income/(Expenses)](index=41&type=section&id=Other%20Income%2F%28Expenses%29) An explanation of significant changes in non-operating income and expense items - Interest expense decreased due to a lower level of debt outstanding and the early adoption of **ASU 2020-06**[215](index=215&type=chunk) - A gain on revaluation of deferred consideration was recognized in Q1 2021 (**$2.8 million**) compared to a loss in Q1 2020 (**($2.2) million**), primarily due to a decline in spot gold prices[216](index=216&type=chunk) - Impairments significantly decreased due to a **$19.7 million** non-cash impairment on AdvisorEngine in Q1 2020[218](index=218&type=chunk) - Other losses, net, included tax-related indemnification asset releases of **$5.2 million** (Q1 2021) and **$6.0 million** (Q1 2020)[219](index=219&type=chunk) | Category | Q1 2021 (Thousands) | Q1 2020 (Thousands) | Change ($) | Change (%) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Interest expense | $(2,296) | $(2,419) | $123 | (5.1%) | | Gain/(loss) on revaluation of deferred consideration | $2,832 | $(2,208) | $5,040 | N/A | | Impairments | $(303) | $(19,672) | $19,369 | (98.5%) | | Other losses, net | $(5,893) | $(2,507) | $(3,386) | 135.1% | [Income taxes](index=42&type=section&id=Income%20taxes) An analysis of the effective income tax rate and related benefits - The effective income tax rate for Q1 2021 was **-14.9%**, resulting in a **$2.0 million** income tax benefit, primarily due to a **$5.2 million** reduction in unrecognized tax benefits[220](index=220&type=chunk) - The effective income tax rate for Q1 2020 was **21.5%**, resulting in a **$2.4 million** income tax benefit[221](index=221&type=chunk) [Non-GAAP Financial Measures](index=42&type=section&id=Non-GAAP%20Financial%20Measures) A presentation of adjusted net income and earnings per share to show core performance - Non-GAAP measures exclude items like unrealized gains/losses on deferred consideration and impairment charges to provide a consistent view of **core operating performance**[223](index=223&type=chunk) | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Adjusted net income | $12,504 | $11,224 | | Adjusted earnings per share - diluted | $0.08 | $0.07 | [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) An overview of the company's liquidity position, capital sources, and uses of cash [Liquidity](index=43&type=section&id=Liquidity) A summary of the company's liquid assets and changes in cash position - Cash and cash equivalents decreased by **$11.1 million** in Q1 2021, primarily due to investments, dividends, and share repurchases[226](index=226&type=chunk) | Metric | March 31, 2021 (Thousands) | December 31, 2020 (Thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | | Liquid assets | $127,825 | $138,226 | | Available liquidity | $59,045 | $53,482 | [Issuance of Convertible Notes](index=44&type=section&id=Issuance%20of%20Convertible%20Notes) Details regarding the company's outstanding convertible senior notes - The company issued **$175 million** aggregate principal amount of 4.25% Convertible Senior Notes due June 15, 2023[229](index=229&type=chunk) - The notes have an initial conversion price of approximately **$5.92 per share**, and the principal amount will be settled in cash upon conversion[230](index=230&type=chunk) [Capital Resources](index=45&type=section&id=Capital%20Resources) Information on the company's primary sources of financing - The company's principal source of financing is its **operating cash flow**, which is expected to be sufficient to fund future operations[232](index=232&type=chunk) [Use of Capital](index=45&type=section&id=Use%20of%20Capital) A description of the company's main uses of cash, including dividends and share repurchases - Main uses of cash include funding operations, a **$0.03 per share** quarterly cash dividend, and a share repurchase program[234](index=234&type=chunk) - During Q1 2021, the company repurchased **489,763 shares** for **$2.6 million**, with **$49.6 million** remaining under the program[235](index=235&type=chunk) [Contractual Obligations](index=45&type=section&id=Contractual%20Obligations) A summary of the company's significant contractual financial commitments - The company has **$175.0 million** aggregate principal amount of Convertible Notes outstanding, maturing on June 15, 2023[236](index=236&type=chunk)[237](index=237&type=chunk) - Deferred consideration for gold payments had a present value of **$227.1 million** at March 31, 2021[239](index=239&type=chunk)[240](index=240&type=chunk) - Total future minimum lease payments for operating leases were **$25.8 million** at March 31, 2021[242](index=242&type=chunk) [Off-Balance Sheet Arrangements](index=45&type=section&id=Off-Balance%20Sheet%20Arrangements) A statement regarding the absence of off-balance sheet financing arrangements - The company does not have any off-balance sheet financing or other arrangements[245](index=245&type=chunk) [Critical Accounting Policies and Estimates](index=46&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) A discussion of the accounting policies and estimates most critical to the financial statements [Goodwill and Intangible Assets](index=46&type=section&id=Goodwill%20and%20Intangible%20Assets) The methodology for testing goodwill and indefinite-lived intangible assets for impairment - Goodwill and indefinite-lived intangible assets are tested for impairment at least annually on **November 30th**, using qualitative and quantitative assessments[248](index=248&type=chunk)[249](index=249&type=chunk) [Investments](index=46&type=section&id=Investments) The accounting treatment for equity investments without a readily determinable fair value - Equity investments without a readily determinable fair value are accounted for under the **measurement alternative** (cost less impairment, plus observable price changes)[250](index=250&type=chunk) [Deferred Consideration – Gold Payments](index=46&type=section&id=Deferred%20Consideration%20%E2%80%93%20Gold%20Payments) The valuation methodology and sensitivity analysis for the deferred consideration liability - Deferred consideration is measured at present value using forward-looking gold prices, a **9.0% discount rate**, and a **1.7% perpetual growth rate**[251](index=251&type=chunk) - A **1 percentage point increase** in the discount rate would increase the Q1 2021 reported gain by **$24.8 million**[252](index=252&type=chunk) [Revenue Recognition](index=46&type=section&id=Revenue%20Recognition) The policy for recognizing revenue from advisory fees - Revenue from advisory fees is recognized over time, based on a percentage of ETPs' **average daily net assets**[253](index=253&type=chunk) [Recently Adopted Accounting Pronouncements](index=46&type=section&id=Recently%20Adopted%20Accounting%20Pronouncements) A summary of recently adopted accounting standards and their impact - The company early adopted **ASU 2020-06** on January 1, 2021, simplifying convertible instrument accounting and reducing interest expense by approximately **$0.4 million per quarter**[254](index=254&type=chunk) - The company adopted **ASU 2019-12** on January 1, 2021, simplifying income tax accounting, which did not have a material impact[255](index=255&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) A description of the company's exposure to various market risks and their potential impact [Market Risk](index=47&type=section&id=Market%20Risk) The risk of changes in ETP values due to market fluctuations - Market risk primarily represents the risk of changes in ETP values, which directly impacts **advisory fee revenues**[257](index=257&type=chunk) - Fluctuations in ETP values can reduce AUM and revenues, potentially leading to **fund withdrawals**[258](index=258&type=chunk) [Interest Rate Risk](index=47&type=section&id=Interest%20Rate%20Risk) The company's exposure to changes in interest rates - The company does not anticipate a material impact from changes in interest rates on its financial condition or operating results[259](index=259&type=chunk) - Convertible Notes bear a **fixed interest rate of 4.25%**, mitigating direct financial statement risk from interest rate changes[260](index=260&type=chunk) [Exchange Rate Risk](index=47&type=section&id=Exchange%20Rate%20Risk) The risk of financial impact from fluctuations in foreign currency exchange rates - The company is subject to currency translation exposure from non-U.S. operations, primarily in the **UK and Europe**[261](index=261&type=chunk) - Currently, the company **does not use derivative financial instruments** to offset foreign exchange exposures[261](index=261&type=chunk) [Commodity Price Risk](index=48&type=section&id=Commodity%20Price%20Risk) The company's exposure to fluctuations in commodity prices, particularly gold - Fluctuations in commodity prices, particularly **gold**, could have a material adverse effect on the company's AUM and revenues[264](index=264&type=chunk) - The company uses gold ounces to satisfy deferred consideration obligations, creating exposure to **gold price fluctuations**[264](index=264&type=chunk) [Item 4. Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) A confirmation of the effectiveness of the company's disclosure and internal controls [Evaluation of Disclosure Controls and Procedures](index=48&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Management's conclusion on the effectiveness of disclosure controls - Management concluded that the company's disclosure controls and procedures were **effective** at a reasonable assurance level as of March 31, 2021[265](index=265&type=chunk) [Changes in Internal Control over Financial Reporting](index=48&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) A statement on changes to internal controls during the reporting period - There were **no changes** in internal control over financial reporting during Q1 2021 that have materially affected, or are reasonably likely to materially affect, internal controls[266](index=266&type=chunk) [PART II: OTHER INFORMATION](index=48&type=section&id=PART%20II%3A%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) This section states that there are no legal proceedings to report - The company reported **no legal proceedings**[268](index=268&type=chunk) [Item 1A. Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the risk factors detailed in the company's Annual Report - Readers should carefully consider the risk factors outlined in the **Annual Report on Form 10-K** for the fiscal year ended December 31, 2020[269](index=269&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activities during the quarter [Purchases of Equity Securities by the Issuer and Affiliated Purchasers](index=49&type=section&id=Purchases%20of%20Equity%20Securities%20by%20the%20Issuer%20and%20Affiliated%20Purchasers) A summary of common stock repurchases made during the first quarter of 2021 - During Q1 2021, the company repurchased **489,763 shares** of its common stock at an average price of **$5.37 per share**, totaling approximately **$2.6 million**[274](index=274&type=chunk) - As of March 31, 2021, **$49.6 million** remained available under the share repurchase program, which was extended through April 27, 2022[274](index=274&type=chunk) [Item 3. Defaults Upon Senior Securities](index=49&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there are no defaults upon senior securities to report - The company reported **no defaults** upon senior securities[275](index=275&type=chunk) [Item 4. Mine Safety Disclosures](index=49&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable - Mine safety disclosures are **not applicable** to the company[276](index=276&type=chunk) [Item 5. Other Information](index=49&type=section&id=Item%205.%20Other%20Information) This section states that there is no other information to report - The company reported **no other information**[277](index=277&type=chunk) [Item 6. Exhibits](index=50&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q - Exhibits include corporate documents, the Indenture for Convertible Senior Notes, and various **CEO, CFO, and CAO certifications**[278](index=278&type=chunk) - Financial statements for the three months ended March 31, 2021, are provided in **XBRL format**[279](index=279&type=chunk)

6 Q1/21 Results April 30, 2021 3 WISDOMTREE® Forward looking statements This presentation 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 ...

Financial Data and Key Metrics Changes - Assets under management (AUM) reached $69.5 billion, a 3% increase from the previous quarter, driven by positive inflows and market movement [6] - Revenues increased by 9% to $73 million due to higher average AUM from strong inflows [9] - Adjusted net income rose 36% to $12.5 million or $0.08 per share [9] - Operating margin expanded to 25.5% and gross margins increased to 78.7% [10] Business Line Data and Key Metrics Changes - The ex-state-owned strategy products generated $1.5 billion of inflows, while thematic products saw inflows of $648 million [6] - Thematic ETFs grew 20% to $2.6 billion in AUM [7] - The European-listed Bitcoin Fund attracted $36 million in inflows, doubling its size to just under $400 million in AUM [7] Market Data and Key Metrics Changes - Inflows in the U.S. have continued for 10 consecutive months, marking the best streak in six years [21] - The group run rate revenue based on current AUM levels is now at $300 million, up nearly 40% from the first quarter of last year [22] Company Strategy and Development Direction - The company is focused on accelerating momentum through targeted investments in growth areas, including digital assets and thematic products [13] - There is a strong emphasis on maintaining leadership in crypto ETPs and expanding into digital assets [13][24] - The company plans to launch additional products in thematics and growth equities, as well as enhance existing fixed income and commodities offerings [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued organic growth despite industry-driven gold outflows [15] - The company is optimistic about the future of digital assets and blockchain technology, viewing it as a significant opportunity for capital markets [28] - Management acknowledged the importance of trust in attracting investors to crypto assets and emphasized the efficiency of ETF structures [76] Other Important Information - The CFO, Amit Muni, will be leaving the company at the end of May after 13 years of service [32] - The company has filed for a blockchain-enabled digital short-term treasury fund, indicating a commitment to innovation in financial services [29] Q&A Session Summary Question: Timeline for US Bitcoin and tokenized gold product launches - Management expects to be among the first to receive regulatory approval for the US Bitcoin filing, with gold tokens anticipated later in the year [35][37] Question: Advantages of owning Bitcoin in an ETF wrapper - The ETF structure provides a safer and more accessible way for investors to gain exposure to Bitcoin compared to direct ownership [38][39] Question: Success of thematic products and client receptiveness - Thematic products have seen broad success across retail and adviser channels, with strong performance driving inflows [42][44] Question: Blockchain-enabled treasury fund and its benefits - The digital treasury fund will enhance the investing experience with features like peer-to-peer transfers and improved efficiency [48][49] Question: Demand for Bitcoin ETF in Europe - Initial profit-taking affected early demand, but management expects significant growth as institutional interest increases [50] Question: Progress on model portfolios - The model portfolio initiative is gaining traction, with expectations for more partnerships and deeper client relationships [54][58] Question: Competitive advantage in digital assets - The company believes its early investments and expertise in digital assets position it well against larger financial institutions [94][103]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 001-10932 WisdomTree Investments, Inc. (Exact name of registrant as specified in its charter) Delaware 13-3487784 (State ...

Q4/20 Results January 29, 2021 Forward looking statements This presentation 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 result ...

WisdomTree Investments, Inc. (WETF) Q4 2020 Earnings Conference Call January 29, 2021 9:00 AM ET Company Participants Jessica Zaloom - Head of Corporate Communications Amit Muni - Chief Financial Officer Jarrett Lilien - President Jonathan Steinberg - Founder and Chief Executive Officer Jeremy Schwartz - Senior Key Executive Conference Call Participants Craig Siegenthaler - Credit Suisse James Steele - Jefferies Jeff Drezner - KBW Brennan Hawken - UBS Michael Cyprys - Morgan Stanley Ryan Bailey - Goldman S ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the transition period from to . Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-10932 WisdomTree Investments, Inc. (Exact name of registrant as specified in its charter) Delaware 13-34 ...