Core Insights - WisdomTree reported record assets under management (AUM) of $137.2 billion, with net inflows of $2.2 billion driven by strong demand for European gold and cryptocurrency products [1] - The company's revenue for Q3 was $125.6 million, exceeding analyst estimates of $122.9 million, reflecting an 11% year-on-year growth [5] - Adjusted EPS was $0.23, beating analyst expectations of $0.21, indicating a 10.4% increase [5] Financial Performance - Adjusted EBITDA reached $50.04 million, surpassing analyst estimates of $46.42 million, with a margin of 39.8% [5] - Operating margin was reported at 36.3%, consistent with the same quarter last year [5] - Market capitalization stands at $1.59 billion [5] Strategic Insights - CEO Jonathan Steinberg emphasized the importance of diversification in asset classes, geographies, and client types for organic growth [1] - The company is actively exploring tokenization as a service, leveraging its end-to-end technology stack for asset management and token issuance [5] - Digital asset AUM growth is attributed to stablecoin issuers and on-chain native businesses, with a focus on blockchain-enabled money market funds [5] Analyst Engagement - Analysts raised questions regarding WisdomTree's long-term growth vision in Europe, to which management highlighted strong fundamentals and cross-regional synergies [5] - Inquiry into the expansion strategy for digital asset distribution revealed a presence on seven blockchains and potential B2B2C fintech relationships [5] - CFO Bryan Edmiston provided insights on modeling Ceres' AUM and performance fee structure, explaining reporting timing and growth assumptions [5]

Assets Under Management (AUM) - As of September 30, 2025, the company managed approximately $137.2 billion in assets under management (AUM) across various ETP strategies[173]. - The AUM of U.S. listed ETFs rose from $85.2 billion to $88.3 billion from June 30, 2025, due to market appreciation[190]. - The AUM of European listed ETPs increased from $40.5 billion to $48.3 billion during the same period, attributed to market appreciation and net inflows[192]. - Average assets under management (AUM) increased by 18.5% from $110,369 million in Q3 2024 to $130,760 million in Q3 2025[214]. - U.S. listed ETFs ended the period with assets of $88,293 million, up from $85,179 million in the previous quarter[210]. - European listed ETPs saw an increase in assets to $48,290 million from $40,541 million in the previous quarter[210]. - Digital assets grew to $592 million by the end of the period, up from $350 million at the beginning[210]. - Market appreciation contributed $8,868 million to global ETPs during the quarter[210]. - The company reported inflows of $2,237 million for the quarter, compared to outflows of $2,395 million in the same quarter last year[210]. Revenue and Income - Total revenues increased by 11.0% year-over-year to $125.6 million for the three months ended September 30, 2025, driven by higher average AUM[199]. - The company reported net income of $19.7 million for the three months ended September 30, 2025, compared to a net loss of $4.5 million in the same period of 2024[199]. - Advisory fee revenues rose by 12.6% from $101.7 million in Q3 2024 to $114.5 million in Q3 2025, driven by higher average AUM[215]. - Total operating revenues increased by 11.0% from $113,168 thousand in Q3 2024 to $125,616 thousand in Q3 2025[214]. - Total revenues for the first nine months of 2025 were $346.3 million, up 9.2% from $317.0 million in 2024[235]. - Adjusted net income for the nine months ended September 30, 2025, was $83.3 million, compared to $69.9 million for the same period in 2024[257]. Expenses - Total operating expenses increased by 10.5% from $72.4 million in Q3 2024 to $80.0 million in Q3 2025[217]. - Compensation and benefits expense increased 14.9% from $29.4 million in Q3 2024 to $33.8 million in Q3 2025 due to higher incentive compensation and increased headcount[218]. - Fund management and administration expense rose 6.4% from $21.0 million in Q3 2024 to $22.4 million in Q3 2025, primarily driven by higher average AUM[219]. - Third-party distribution fees surged 33.3% from $3.0 million in Q3 2024 to $4.0 million in Q3 2025, reflecting strong organic growth and AUM expansion[225]. - Interest expense increased 68.4% from $5.0 million in Q3 2024 to $8.5 million in Q3 2025 due to a higher level of debt outstanding[229]. - Total operating expenses for the first nine months of 2025 were $231.9 million, an increase of 8.0% from $214.8 million in 2024[238]. Tax and Interest - Effective income tax rate for Q3 2025 was 33.3%, resulting in an income tax expense of $9.8 million[233]. - The effective income tax rate for the nine months ended September 30, 2025, was 24.7%, resulting in an income tax expense of $22.6 million[253]. - Interest expense for the year ending December 31, 2025, is estimated to be $31.0 million, reflecting the issuance of $475.0 million in convertible senior notes[203]. - Interest income rose 123.7% from $1.8 million in Q3 2024 to $4.0 million in Q3 2025, attributed to a higher level of interest-earning assets[230]. - Interest income increased by 72.8% from $4.6 million in the nine months ended September 30, 2024, to $8.0 million in the comparable period in 2025[251]. Acquisitions and Capital Management - The company completed the acquisition of Ceres Partners, LLC for $275.0 million in cash and potential earnout consideration of up to $225.0 million based on future revenue growth[178]. - Acquisition-related costs of $4.4 million were recorded in connection with the Ceres Acquisition during the nine months ended September 30, 2025[247]. - The earnout consideration for the acquisition of Ceres Partners, LLC could reach up to $225.0 million, contingent upon achieving a revenue CAGR of 12% to 22% from January 1, 2025, to December 31, 2029[275]. - The company maintains a capital return program that includes a quarterly cash dividend of $0.03 per share and authority to repurchase common stock through April 27, 2028[270]. - The company repurchased 8,096,862 shares of common stock for an aggregate cost of $102.7 million during the nine months ended September 30, 2025, with approximately $60.0 million remaining under the repurchase program[272]. Liquidity and Financial Position - Total available liquidity decreased to $126.5 million as of September 30, 2025, from $142.0 million as of December 31, 2024[258]. - Cash, cash equivalents, and restricted cash increased by $374.7 million during the nine months ended September 30, 2025, primarily due to $475.0 million from the issuance of the 2030 Notes[261]. - The company expects that current cash flows from operating activities and existing cash balances will be sufficient to fund operations for the foreseeable future[269]. - The company has no off-balance sheet financing or arrangements and does not participate in special-purpose entities for capital raising[277]. Other Financial Information - The gross margin was 81.4% for the nine months ended September 30, 2025, with an estimated gross margin of approximately 82.0% for the full year[201]. - The estimated compensation to revenue ratio for the year ending December 31, 2025, is projected to be between 28% and 30%[198]. - Goodwill impairment testing indicated no impairment based on the most recent quantitative assessment[281]. - Other revenues from swap providers related to European listed ETPs are based on a percentage of the ETPs' average daily net assets[286]. - As of September 30, 2025, corporate cash investments totaled $303.9 million, with gains of $1.1 million recognized during the three months ended September 30, 2025[290]. - Convertible Notes bear fixed interest rates of 3.25% for 2026 and 2029 Notes, 5.75% for 2028 Notes, and 4.625% for 2030 Notes, with no direct financial statement risk from interest rate changes[291]. - A substantial portion of advisory fees from European listed ETPs is paid in U.S. dollars, while corporate overhead expenses are generally incurred in British pounds and euros[292]. - Fluctuations in commodity and cryptocurrency prices linked to certain ETPs could materially affect AUM and revenues, with advisory fees for some ETPs paid in the underlying assets[294].

Fund Overview - WisdomTree, a global asset manager with over $130 billion AUM, has adopted Chainlink to provide institutional-grade NAV data onchain for its CRDT tokenized fund on Ethereum [1] - The CRDT fund offers exposure to a diversified portfolio of liquid private credit and alternative income instruments, tracking the Gapstow Liquid Alternative Credit Index (GLACI) [1] Technology and Transparency - By using Chainlink, WisdomTree enables subscriptions and redemptions through its Prime and Connect platforms, ensuring institutional-grade transparency, auditability, and interoperability [2] - Verified NAV data on Ethereum via Chainlink allows DeFi protocols and institutional platforms to reference CRDT's valuation in smart contracts [3] Potential Use Cases - The availability of CRDT's valuation data unlocks new use cases across lending, yield aggregation, and automated portfolio management [3]

Financial Data and Key Metrics Changes - The company reported record global AUM of $137.2 billion, with U.S. AUM at $88.3 billion and European AUM at $48.3 billion, alongside digital AUM of nearly $600 million [3][11] - Adjusted revenues for the quarter were $125.6 million, reflecting an increase of 11.5% from the previous quarter and approximately 14.7% year-over-year, driven by higher average AUM [5] - Adjusted net income for the quarter was $34.5 million, or $0.23 per share, excluding certain losses and acquisition-related costs [6] - The gross margin improved to 82.2% in the third quarter, with expectations to rise to 83% in the fourth quarter due to the Cirrus Partners acquisition [7] Business Line Data and Key Metrics Changes - Significant inflows were noted in European gold and cryptocurrency products, as well as the European Defense Fund and Digital Money Market Fund [4] - Model AUM grew to approximately $5.85 billion, up more than 50% year-to-date, indicating strong advisor adoption [12] - The digital assets segment saw AUM grow to around $600 million, with peak levels near $900 million, driven by flows into the blockchain-enabled money market fund [14] Market Data and Key Metrics Changes - Year-to-date inflows totaled $8.8 billion, with $2.5 billion from the U.S., $5.8 billion from Europe, and roughly $550 million in digital assets [3] - The company experienced a notable increase in the number of clients using its products, contributing to deeper client relationships and sustainable organic growth [12] Company Strategy and Development Direction - The acquisition of Cirrus Partners is expected to enhance revenue capture and operating margins while diversifying AUM with farmland as a new asset class [4][10] - The company is focused on expanding its digital asset offerings and enhancing its technology stack, with plans for tokenization as a service [21][23] - The strategic priorities for 2025 include faster revenue growth and higher revenue capture, with a strong emphasis on maintaining operational efficiency [16][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the European business, anticipating continued strong growth in ETF adoption [19] - The company is optimistic about the digital asset market, expecting significant growth and increased adoption among stablecoin issuers and crypto-native businesses [32][67] - Management highlighted the importance of maintaining a diversified and scalable platform to navigate market cycles and ensure long-term success [17][16] Other Important Information - The company reported $8 million in adjusted interest expense for the quarter, with expectations of $11 million in the fourth quarter due to recent financing [8] - The company is actively working on bringing its Digital Money Market Fund to market, pending SEC approval [40] Q&A Session Summary Question: What is the three-to-five-year vision for Europe in terms of flows compared to the U.S.? - Management indicated that Europe is a few years behind the U.S. in ETF adoption, with strong growth fundamentals expected [19] Question: Can you elaborate on the digital asset side and potential for tokenization as a service? - Management confirmed active discussions around tokenization as a service and highlighted the competitive advantages of their technology stack [21][23] Question: What are the underlying drivers of the rapid growth in digital assets? - The growth is primarily driven by stablecoin issuers and crypto-native businesses seeking yield-bearing treasury assets [32] Question: How will the Cirrus Partners acquisition impact future private asset strategies? - Management emphasized a disciplined approach to acquisitions and indicated that this is just the beginning of their focus on private assets [27][29] Question: How will AUM for Cirrus Partners be reported? - AUM for Cirrus Partners will be reported at the end of each quarter, with performance-based fees linked to the AUM and market conditions [57][60]

AUM and Net Flows - Record Global AUM of $1372 billion as of September 30, 2025, with US at $883 billion, Europe at $482 billion, and Digital at $06 billion[8, 10] - Net inflows of $22 billion in Q3 2025 and $88 billion YTD through September 30, 2025, representing an 11% annualized organic growth rate[9, 10] - Updated AUM as of October 29, 2025, is $1385 billion, up approximately 1% from September 30, 2025, driven by positive market movement and Ceres AUM, offset by net outflows[8, 10] Financial Performance - Q3 2025 adjusted revenues increased by 115% compared to Q2 2025, driven by higher average AUM and other revenues[14] - Q3 2025 adjusted revenues increased by 147% compared to Q3 2024, due to higher average AUM and other revenues, partially offset by a lower average advisory fee[14] - Q3 2025 adjusted EPS was $023, compared to $018 in Q2 2025[12] - Adjusted operating margin for Q3 2025 was 383%, compared to 325% in Q2 2025[12] Strategic Initiatives - Completed the acquisition of Ceres Partners, diversifying AUM into farmland and creating opportunities in solar, AI data infrastructure, and water[10] - The Ceres acquisition is expected to be accretive, expanding annualized revenue capture and operating margins by approximately 200 basis points[10] - WisdomTree Prime AUM is $52 million with 30205 opened accounts as of Q3 2025[39] - Total WisdomTree Tokenized AUM is $592 million, a 19x growth vs year-end 2024[39] Guidance and Outlook - Full-year 2025 compensation to revenue ratio is projected to be 28%-30%, with discretionary spending between $68 million and $72 million[15] - Q4 2025 gross margin is anticipated to be approximately 83%, inclusive of the Ceres acquisition impact, with a full-year gross margin trending toward approximately 82%[17] - The company is targeting a 35% to 40% expansion in Model Assets Under Advisement (AUA) and a 25% to 30% growth in Model Users in 2025[27, 29]

Core Insights - WisdomTree, Inc. reported quarterly earnings of $0.23 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, and showing an increase from $0.18 per share a year ago, resulting in an earnings surprise of +9.52% [1] - The company posted revenues of $125.62 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.50% and increasing from $113.17 million year-over-year [2] - The stock has gained approximately 10.3% since the beginning of the year, while the S&P 500 has increased by 16% [3] Earnings Outlook - The future performance of WisdomTree, Inc. will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $133.96 million, and for the current fiscal year, it is $0.77 on revenues of $478.43 million [7] Industry Context - The Financial - Miscellaneous Services industry, to which WisdomTree belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Assets Under Management (AUM) - Record AUM of $137.2 billion, an increase of 8.8% from the prior quarter driven by market appreciation and net inflows[4] - WisdomTree currently has approximately $138.4 billion in assets under management globally, including assets from the recent acquisition of Ceres Partners, LLC[27] - For the three months ended September 30, 2025, inflows amounted to $2.237 billion, while market appreciation contributed $8.868 billion, resulting in end-of-period assets of $137.175 billion[34] - U.S. listed ETFs saw an end-of-period asset increase to $88.293 billion, with market appreciation of $3.562 billion[34] - European listed ETPs experienced inflows of $2.447 billion and an end-of-period asset total of $48.290 billion[34] - Digital assets reached an end-of-period asset total of $592 million, with inflows of $238 million during the quarter[34] Financial Performance - Operating revenues of $125.6 million, an increase of 11.5% from the prior quarter due to higher average AUM[6] - Diluted earnings per share of $0.13, with adjusted earnings per share of $0.23[1][3] - Gross margin of 82.2%, a 1.1 point increase from the prior quarter due to higher revenues[7] - Operating income margin of 36.3%, a 5.5 point increase from the prior quarter[7] - Net income for Q3 2025 was $19.7 million, compared to $24.8 million in Q2 2025[22] - Operating income for Q3 2025 was $45.7 million, an increase from $34.6 million in Q2 2025[22] - Adjusted net income for Q3 2025 was $34,476 million, up from $25,863 million in Q2 2025, representing a 33% increase[51] - Adjusted earnings per share (EPS) for Q3 2025 was $0.23, compared to $0.18 in Q2 2025, reflecting a 28% increase[51] - Operating revenues for Q3 2025 reached $125,616 million, a 12% increase from $112,621 million in Q2 2025[51] Expenses and Liabilities - Operating expenses rose by 2.5% from Q2 2025, totaling $79.96 million, primarily due to higher fund management and administration expenses[22] - Interest expense surged by 54.2% from Q2 2025, totaling $8.47 million, attributed to a higher level of debt outstanding[22] - Interest income increased by 92.1% from Q2 2025, amounting to $4.02 million, due to a rise in interest-earning assets[22] - Total current liabilities increased to $254,441 thousand as of September 30, 2025, compared to $109,197 thousand at December 31, 2024, indicating a rise of approximately 133%[38] Acquisitions and Product Launches - Acquisition of Ceres Partners, LLC, a leading U.S.-based alternative asset manager specializing in farmland investments, financed with $275.0 million of proceeds from the issuance of convertible senior notes[16] - Launch of multiple new products including WisdomTree Global Defense Fund and WisdomTree Quantum Computing Fund in Q3 2025[16] - WisdomTree Europe Defence UCITS ETF surpassed $4 billion in AUM following its launch in March 2025[16] - The number of products offered increased to 397 by the end of the period, up from 383 in the previous quarter[34] - WisdomTree launched 17 digital asset products prior to January 1, 2025, indicating a focus on expanding its digital offerings[35] Tax and Income - The effective income tax rate for Q3 2025 was 33.3%, resulting in an income tax expense of $9.8 million[22] - The adjusted effective income tax rate for Q3 2025 was 23.9%[22] - Adjusted effective income tax rate for Q3 2025 was 23.9%, slightly higher than 23.5% in Q2 2025[52] Risks and Challenges - The acquisition of Ceres Partners, LLC presents risks related to integration challenges and the realization of expected benefits, including projected business growth[54] - Anticipated trends in global markets and ETPs may influence inflows and outflows, impacting the company's ability to deliver favorable returns to investors[55] - A significant portion of revenues is derived from a limited number of products, making operating results sensitive to investor sentiment and market performance[55] - The company faces increased operational and regulatory risks as it expands its digital assets product offerings beyond existing ETP business[55] - Fluctuations in assets under management (AUM) due to market disruptions could negatively impact revenues and operating margins[55] - A substantial portion of AUM is exposed to U.S. and international developed markets, subjecting the company to currency exchange rate risks[55] - The company anticipates that competitive pressures could reduce revenues and profit margins[55] - The performance of many ETPs has a limited track record, and poor investment performance could lead to revenue declines[55] - The company relies on third parties for critical services, and failures by key vendors could materially affect operations and investor outcomes[55]

Core Insights - WisdomTree, Inc. is a significant player in the financial services industry, primarily recognized for its role as an ETF sponsor and asset manager, offering a diverse range of ETFs and investment advisory services [1] Price Target Adjustments - The consensus price target for WisdomTree has been adjusted downwards over the past year, with the current average at $13.50, down from $14.75 a quarter and a year ago, indicating a more conservative outlook from analysts [2][6] - This downward adjustment in price target may be influenced by a recent stock price decline of 12.4% over the past four weeks [2] Stock Performance and Analyst Sentiment - Despite the recent stock price decline, WisdomTree's stock is now considered to be in oversold territory, suggesting that selling pressure may have eased [3][6] - Wall Street analysts are revising their earnings estimates for WisdomTree upwards, indicating potential for a trend reversal [3] Earnings Expectations - WisdomTree is anticipated to report earnings growth in its upcoming release, with analysts expecting favorable conditions for an earnings beat [4] - The upcoming earnings report could significantly impact the stock's performance, highlighting the importance of understanding the broader economic environment [4] ETF Performance - WisdomTree's U.S. LargeCap ETF (EPS) offers broad exposure to the Large Cap Value category, with Morgan Stanley setting a price target of $6 for this ETF, reflecting their analysis and expectations for its future performance [5]

Core Viewpoint - Growth investors are increasingly focused on identifying stocks with above-average financial growth, which can lead to solid returns, but finding such stocks can be challenging due to associated risks and volatility [1] Company Summary - WisdomTree, Inc. is highlighted as a promising growth stock, recommended by the Zacks Growth Style Score system, which evaluates a company's growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [10] Earnings Growth - WisdomTree, Inc. has a historical EPS growth rate of 19.8%, with projected EPS growth of 21.8% for the current year, surpassing the industry average of 21.4% [5][4] Asset Utilization - The company's asset utilization ratio (sales-to-total-assets) stands at 0.43, significantly higher than the industry average of 0.2, indicating efficient asset use to generate sales [6] Sales Growth - WisdomTree, Inc. is expected to achieve sales growth of 11.9% this year, compared to an industry average of 0%, showcasing strong sales performance [7] Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for WisdomTree, with the Zacks Consensus Estimate for the current year increasing by 3.7% over the past month, suggesting favorable near-term stock price movements [8]

Core Viewpoint - WisdomTree, Inc. (WT) has experienced significant selling pressure, resulting in a 12.4% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is utilized to determine if a stock is oversold, with a reading below 30 typically indicating this condition [2]. - WT's current RSI reading is 29.37, suggesting that the heavy selling may be exhausting, which could lead to a price rebound as the stock seeks to return to its previous equilibrium [5]. Group 2: Fundamental Analysis - There is a strong consensus among sell-side analysts to raise earnings estimates for WT, with a 3.7% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - WT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].