WisdomTree(WT) - 2025 Q4 - Annual Results

Assets Under Management (AUM) - WisdomTree reported a record AUM of $144.5 billion, reflecting a 5.3% increase from the prior quarter due to market appreciation and the Ceres Acquisition[3] - WisdomTree has approximately $159.0 billion in assets under management globally, including assets from the recent acquisition of Ceres Partners, LLC[26] - The end of period assets increased to $144.5 billion as of September 30, 2025, up from $137.2 billion at the end of the previous quarter[32] - The average assets during the period were $140.7 billion, compared to $130.8 billion in the prior quarter, reflecting a growth of approximately 6.5%[32] - Total assets increased to $1,512,941,000 as of December 31, 2025, up from $1,033,540,000 a year earlier, representing a growth of approximately 46.3%[38] Financial Performance - Operating revenues reached $147.4 million, marking a 17.4% increase from the prior quarter, driven by the Ceres Acquisition and higher average AUM[5] - Operating revenues increased by 17.4% from the third quarter of 2025 and 33.2% from the fourth quarter of 2024, driven by the Ceres Acquisition and higher average AUM[21] - Net income for the fourth quarter of 2025 was $40.0 million, compared to $19.7 million in the previous quarter[21] - Total revenues for the year ended December 31, 2025, were $493.8 million, compared to $427.7 million for the previous year[21] - The company reported adjusted revenues and operating income as non-GAAP financial measurements to provide a clearer view of operational performance[42][43] Earnings and Margins - Diluted earnings per share were $0.28, with an adjusted EPS of $0.29, compared to $0.13 in the previous quarter[10] - The operating income margin improved to 40.5%, a 4.2 point increase from the prior quarter, attributed to higher revenues from the Ceres Acquisition[6] - WisdomTree's gross margin increased to 83.2%, a 1 point rise from the previous quarter, primarily due to increased revenues from the Ceres Acquisition[6] - Adjusted net income for Q4 2025 was $41,235 million, up from $34,476 million in Q3 2025, representing a 19.5% increase[51] - Adjusted operating income for Q4 2025 was $61,498 million, reflecting a 28.1% increase from $48,063 million in Q3 2025[51] Expenses and Liabilities - Operating expenses rose by 9.7% from the third quarter of 2025, primarily due to compensation expenses related to the Ceres Acquisition[21] - Total current liabilities increased to $282,056,000 from $109,197,000, reflecting a rise of 158.5%[38] - Total operating expenses for Q4 2025 were $87,687 million, compared to $79,962 million in Q3 2025, indicating an increase of 9.1%[52] Product Development and Market Expansion - The company launched several new products, including the WisdomTree Quantum Computing Fund and the WisdomTree Global Value UCITS ETF, enhancing its product offerings[14] - The number of products offered increased to 406 by the end of the period, up from 397 in the previous quarter[32] - The company is expanding its digital assets product offerings and services, which may increase operational, regulatory, and financial risks[55] Cash Flow and Investments - Net cash provided by operating activities increased to $147,946 in 2025 from $113,461 in 2024, reflecting a rise of 30.3%[40] - The company incurred $270,346 in cash for the acquisition of Ceres, net of cash acquired, indicating a significant investment in growth[40] - The company reported a net cash used in investing activities of $313,033, a substantial increase from $23,875 in 2024[40] Market Trends and Risks - 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] - The company faces competitive pressures that could reduce revenues and profit margins, particularly as a substantial portion of revenues comes from a limited number of products[55] - Future growth is uncertain and may be influenced by general economic conditions, including fluctuations in interest rates and commodity prices[55] Shareholder Returns - The company declared a quarterly dividend of $0.03, payable on February 25, 2026[6] - Common stock repurchased amounted to $102,732, compared to $62,870 in the previous year, indicating a 63.4% increase in share buybacks[40]