WisdomTree(US:WT)2025-11-06 18:28Assets 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].