WisdomTree(US:WT)2025-05-09 17:25Assets Under Management (AUM) - As of March 31, 2025, the company managed approximately $115.8 billion in Assets Under Management (AUM), reflecting a diverse range of strategies including equities, fixed income, and cryptocurrency exposures[155]. - The AUM of U.S. listed ETFs rose from $79.1 billion at December 31, 2024, to $80.5 billion at March 31, 2025, due to net inflows despite market depreciation[172]. - The AUM of European listed ETPs increased from $30.7 billion at December 31, 2024, to $35.1 billion at March 31, 2025, attributed to market appreciation and net inflows[176]. - Average assets under management (AUM) increased by 11.9% from $102,461 million in Q1 2024 to $114,622 million in Q1 2025[193]. Financial Performance - Total revenues increased by 11.6% year-over-year to $108.1 million for the three months ended March 31, 2025, driven by higher average AUM and increased revenues from European listed products[182]. - The company reported net income of $24.6 million for the three months ended March 31, 2025, compared to $22.1 million for the same period in 2024[182]. - Total operating revenues rose by 11.6% from $96,838 thousand in Q1 2024 to $108,082 thousand in Q1 2025, driven by a 7.6% increase in advisory fees[193][194]. - Adjusted net income for Q1 2025 was $23.0 million, up from $20.3 million in Q1 2024, with diluted earnings per share increasing from $0.12 to $0.16[215]. Expenses and Margins - The gross margin for the three months ended March 31, 2025, was 80.8%, with an estimated range of 81.0% to 82.0% for the year ending December 31, 2025[181]. - Operating expenses increased by 7.3% from $68,888 thousand in Q1 2024 to $73,920 thousand in Q1 2025, with significant increases in sales and business development expenses by 14.6%[196]. - Interest expense rose by 31.8% from $4,128 thousand in Q1 2024 to $5,441 thousand in Q1 2025[206]. - The average advisory fee during the period was 0.35%, slightly down from 0.36% in the previous quarter[189]. Cash Flow and Liquidity - Operating cash flows for Q1 2025 were $6.4 million, a significant improvement from a negative $1.0 million in Q1 2024[216]. - Total available liquidity as of March 31, 2025, was $163.5 million, compared to $142.2 million at the end of 2024[216]. - Cash, cash equivalents, and restricted cash decreased by $10.8 million in Q1 2025, primarily due to $12.7 million used for stock repurchases[218]. Shareholder Actions - During the three months ended March 31, 2025, the company repurchased 1,282,498 shares of common stock for an aggregate cost of $12.7 million, with approximately $150.0 million remaining under the repurchase program[228]. - The company repurchased Series C Preferred Stock from GBH for approximately $84.4 million, with $54.8 million paid to date and the remainder payable in equal, interest-free installments[232]. Regulatory and Legal Matters - The company incurred $4.3 million in legal expenses related to the SEC ESG Settlement, which were covered by insurance[213]. - As of March 31, 2025, the company has approximately $35.6 million in regulatory capital requirements across certain subsidiaries[227]. Debt and Interest - As of March 31, 2025, the company had $520.8 million in outstanding convertible notes, with varying maturity dates and interest rates[221]. - The company’s Convertible Notes bear fixed interest rates of 3.25% for the 2026 and 2029 Notes and 5.75% for the 2028 Notes[247]. - Interest income rose by 35.7% from $1.4 million in Q1 2024 to $1.9 million in Q1 2025, driven by an increase in interest-earning assets[208]. Market and Asset Fluctuations - U.S. listed ETF industry net flows were $286.4 billion for the three months ended March 31, 2025, with equity and fixed income gathering the majority of those flows[165]. - European listed ETPs experienced inflows of $1,104 million in Q1 2025, compared to outflows of $241 million in Q4 2024[190]. - Digital assets reached an end-of-period asset total of $132 million as of March 31, 2025, with inflows of $101 million during the quarter[190]. - Fluctuations in commodity and cryptocurrency prices linked to certain ETPs could materially affect the company's AUM and revenues[250].