WisdomTree Announces Third Quarter 2026 Results
NEW YORK--( BUSINESS WIRE)--WisdomTree, Inc. (NYSE: WT), a modern global asset manager, today reported financial results for the third quarter of 2026.
$49.2 million of net income ($49.5 (1) million, as adjusted). See “Non-GAAP Financial Measurements” for a reconciliation to net income.
$171.0 billion of ending AUM, an increase of 5.0% from the prior quarter arising from net inflows and market appreciation.
$4.6 billion of net inflows, across the United States and Europe primarily driven by inflows into our fixed income, commodity and U.S. equity products.
0.36% average advisory fee, unchanged from the prior quarter.
0.42% revenue yield (2), a 1 basis point decrease from the prior quarter due to lower transaction fees from our European ETPs and lower performance fees.
$179.4 million of operating revenues, an increase of 1.3% from the prior quarter due to higher average AUM, partly offset by lower transaction fees from our European ETPs and lower performance fees.
83.0% gross margin (1), essentially unchanged from the prior quarter.
41.3% operating income margin for the quarter (43.1% as adjusted), a 0.8 point increase (0.5 point increase, as adjusted) from the prior quarter primarily due to higher revenues.
39.8% operating income margin year-to-date (41.8% as adjusted), a 6.8 point increase (7.5 point (3) increase, as adjusted) from the prior-year period. The increase primarily reflected favorable operating leverage from revenue growth, partially offset by higher intangible amortization associated with the Ceres Partners, LLC (“Ceres”) and Atlantic House Holdings Limited (“Atlantic House”) acquisitions. Adjusted operating income excludes intangible asset amortization and acquisition-related costs.
$18.1 million aggregate principal amount of convertible senior notes due 2029 (the “2029 Notes”) retired, for aggregate cash consideration of $32.3 million. The conversion price of the 2029 Notes was $11.82.
$10.6 million of common stock repurchased, representing approximately 0.5 million shares at an average repurchase price of $21.29 per share.
$0.03 quarterly dividend declared, payable on November 25, 2026 to stockholders of record as of the close of business on November 11, 2026.
Update from Jarrett Lilien, WisdomTree President and COO
“Our third quarter results reflect the continued strength and scalability of WisdomTree’s business, with record AUM of $171 billion, $4.6 billion of net inflows and meaningful contributions across our global platform. The breadth and consistency of our organic growth, coupled with expanding distribution capabilities and continued operating discipline, are driving significant operating leverage and margin expansion. As we deepen our presence in existing markets and capitalize on new opportunities across liquid alternatives, private markets and tokenization, we remain focused on executing our proven playbook: generating high-quality organic growth, scaling efficiently and translating that momentum into greater earnings power.”
Update from Jonathan Steinberg, WisdomTree CEO
“WisdomTree continues to evolve into a truly modern global asset manager, strategically positioned at the intersection of three powerful transformations in financial services: the democratization of investing, the convergence of public and private markets, and the tokenization of financial assets. After more than two decades of strategic reinvestment, we have built differentiated capabilities across each of these areas, and we believe the greatest opportunity lies in bringing them together into one integrated investment ecosystem. Combined with our highly efficient and scalable operating model, we believe WisdomTree is well positioned to drive sustained growth and create significant long-term value for stockholders.”
OPERATING AND FINANCIAL HIGHLIGHTS
Three Months Ended
Sept. 30,
2026
June 30,
2026
Mar. 31,
2026
Dec. 31,
2025
Sept. 30,
2025
Consolidated Operating Highlights ($ in billions):
AUM—end of period
$
171.0
$
162.9
$
152.6
$
144.5
$
137.2
Net inflows/(outflows)
$
4.6
$
3.1
$
5.9
$
(0.3
)
$
2.2
Average AUM
$
170.5
$
164.2
$
154.7
$
140.7
$
130.8
Average advisory fee
0.36%
0.36%
0.36%
0.35%
0.35%
Revenue yield (2)
0.42%
0.43%
0.42%
0.42%
0.38%
Consolidated Financial Highlights ($ in millions, except per share amounts):
Operating revenues
$
179.4
$
177.2
$
159.5
$
147.4
$
125.6
Net income/(loss)
$
49.2
$
44.3
$
(23.1
)
$
40.0
$
19.7
Diluted earnings/(loss) per share
$
0.32
$
0.28
$
(0.17
)
$
0.28
$
0.13
Operating income margin
41.3%
40.5%
37.2%
40.5%
36.3%
As Adjusted (Non-GAAP (1)):
Operating revenues, as adjusted
$
179.4
$
177.2
$
159.5
$
147.4
$
125.6
Gross margin
83.0%
82.9%
84.4%
83.2%
82.2%
Net income, as adjusted
$
49.5
$
48.1
$
40.6
$
41.2
$
34.5
Diluted earnings per share, as adjusted
$
0.32
$
0.31
$
0.27
$
0.29
$
0.23
Operating income margin, as adjusted
43.1%
42.6%
39.3%
41.7%
38.3%
RECENT BUSINESS DEVELOPMENTS
Company News
Product News
WISDOMTREE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
Nine Months Ended
Sept. 30,
2026
June 30,
2026
Mar. 31,
2026
Dec. 31,
2025
Sept. 30,
2025
Sept. 30,
2026
Sept. 30,
2025
Operating Revenues:
Advisory fees
$
151,631
$
146,300
$
134,880
$
122,712
$
114,485
$
432,811
$
317,275
Management fees
5,420
5,369
5,231
4,908
—
16,020
—
Performance fees
3,778
5,964
2,955
7,105
—
12,697
—
Other revenues
18,546
19,527
16,404
12,709
11,131
54,477
29,044
Total revenues
179,375
177,160
159,470
147,434
125,616
516,005
346,319
Operating Expenses:
Compensation and benefits
44,770
43,718
47,517
37,273
33,791
136,005
100,406
Fund management and administration
30,532
30,229
24,880
24,830
22,353
85,641
64,319
Marketing and advertising
5,426
6,041
5,392
5,613
4,788
16,859
14,931
Sales and business development
4,820
4,938
4,197
4,045
3,943
13,955
12,312
Professional fees
4,263
4,098
3,308
3,596
3,505
11,669
9,464
Occupancy, communications and equipment
2,620
2,229
1,935
1,892
1,601
6,784
4,642
Depreciation and amortization
4,028
3,415
2,096
2,043
615
9,539
1,735
Third-party distribution fees
5,334
5,401
5,795
4,772
3,977
16,530
11,172
Acquisition-related costs
—
1,118
1,933
317
2,409
3,051
4,376
Other
3,460
4,162
3,067
3,306
2,980
10,689
8,514
Total operating expenses
105,253
105,349
100,120
87,687
79,962
310,722
231,871
Operating income
74,122
71,811
59,350
59,747
45,654
205,283
114,448
Other Income/(Expenses):
Interest expense
(13,520
)
(14,852
)
(11,023
)
(11,023
)
(8,466
)
(39,395
)
(19,397
)
Interest income
1,841
3,203
2,592
2,965
4,015
7,636
8,002
Loss on repurchase of convertible notes
—
(6,623
)
(62,302
)
(833
)
(13,011
)
(68,925
)
(13,011
)
Remeasurement of contingent consideration
2,069
(1,360
)
(2,562
)
(710
)
—
(1,853
)
—
Other losses and gains, net
(35
)
6,368
(637
)
317
1,325
5,696
1,713
Income/(loss) before income taxes
64,477
58,547
(14,582
)
50,463
29,517
108,442
91,755
Income tax expense
15,261
14,263
8,549
10,437
9,816
38,073
22,648
Net income/(loss)
$
49,216
$
44,284
$
(23,131
)
$
40,026
$
19,701
$
70,369
$
69,107
Earnings/(loss) per share—basic
$
0.33
$
0.30
$
(0.17
)
$
0.29
$
0.14 (4
)
$
0.49
$
0.48
Earnings/(loss) per share—diluted
$
0.32
$
0.28
$
(0.17
)
$
0.28
$
0.13 (4
)
$
0.46
$
0.47
Weighted average common shares—basic
147,570
149,001
138,005
136,340
139,584
144,894
141,736
Weighted average common shares—diluted
156,179
156,276
138,005
143,314
150,675
153,767
146,360
As Adjusted (Non-GAAP (1))
Total revenues
179,375
177,160
159,470
147,434
125,616
Total operating expenses
102,032
101,619
96,752
85,936
77,553
Operating income
77,343
75,541
62,718
61,498
48,063
Income before income taxes
65,679
63,354
54,654
53,840
45,318
Income tax expense
16,199
15,274
14,061
12,605
10,842
Net income
49,480
48,080
40,593
41,235
34,476
Earnings per share—diluted
0.32
0.31
0.27
0.29
0.23
Weighted average common shares—diluted
156,179
156,276
152,372
143,314
150,675
QUARTERLY HIGHLIGHTS
Operating Revenues
Operating Expenses
Other Income/(Expenses)
Income Taxes
NINE MONTH HIGHLIGHTS
CONFERENCE CALL DIAL-IN AND WEBCAST DETAILS
WisdomTree will discuss its results and operational highlights during a live webcast on Friday, October 30, 2026 at 11:00 a.m. ET, which, together with all earnings materials, can be accessed via WisdomTree’s investor relations website at https://ir.wisdomtree.com. A replay of the webcast will be available shortly after the call.
Participants also can dial in using the following numbers: (877) 407-9210 or (201) 689-8049. Click here to access the participant international toll-free access numbers.
To avoid delays, we encourage participants to log in or dial into the conference call 10 minutes ahead of the scheduled start time.
About WisdomTree
WisdomTree is a modern global asset manager with capabilities across public markets, private markets, tokenization and onchain finance. We offer a diverse suite of exchange-traded products, models and solutions, private market investments and blockchain-enabled products and services, helping investors shape their financial future and financial professionals grow their businesses. Through WisdomTree Onchain™, we combine tokenized investment products, infrastructure and distribution capabilities into an integrated financial services platform serving retail and institutional investors.
WisdomTree currently has approximately $175.0 billion in assets under management globally, inclusive of assets managed by Ceres as of the last reportable period.
For more information about WisdomTree visit: https://www.wisdomtree.com.
For more information about WisdomTree Onchain, visit: https://www.wisdomtree.com/onchain.
Please visit us on X at @WisdomTreeNews.
WisdomTree ® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.
The WisdomTree Connect™ institutional platform and WisdomTree Prime ® digital wallet and digital asset services are made available through WisdomTree Digital Movement, Inc., a federally registered money services business, state-licensed money transmitter and financial technology company (NMLS ID: 2372500) or WisdomTree Digital Trust Company, LLC, and may be limited where prohibited by law. WisdomTree Digital Trust Company, LLC is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business. Visit https://wisdomtreeconnect.com, https://www.wisdomtreeprime.com or the WisdomTree Prime mobile app for more information.
PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE CONNECT AND WISDOMTREE PRIME:
NOT FDIC INSURED | NO BANK GUARANTEE | NOT A BANK DEPOSIT | MAY LOSE VALUE | NOT SIPC PROTECTED | NOT INSURED, ENDORSED, INDEMNIFIED OR GUARANTEED BY ANY GOVERNMENT AGENCY
References to third-party platforms, protocols, or use cases are provided for informational purposes only and do not constitute an endorsement, recommendation, or solicitation by WisdomTree or its affiliates. WisdomTree and its affiliates do not control or operate such third-party platforms or protocols and are not responsible for their operation or performance.
(1)
See “Non-GAAP Financial Measurements.”
(2)
Revenue yield is computed by dividing our annualized adjusted operating revenues as reported in the GAAP to Non-GAAP Reconciliation herein by our average AUM during the period.
(3)
Adjusted operating margin is calculated as adjusted operating income divided by total revenues. Adjusted operating income excludes intangible asset amortization of $7.3 million for the nine months ended September 30, 2026 (none in the prior year period) and acquisition-related costs of $3.1 million and $4.4 million for the nine months ended September 30, 2026 and 2025, respectively.
(4)
Earnings per share (“EPS”) is calculated pursuant to the two-class method as it results in a lower EPS amount as compared to the treasury stock method. In addition, the three months ended September 30, 2025 includes $0.7 million of stock repurchase excise taxes, which is excluded from net income, but is required to be added to net income to arrive at income available to common stockholders in the calculation of EPS. This item is excluded from our EPS when computed on a non-GAAP basis.
WISDOMTREE, INC. AND SUBSIDIARIES
KEY OPERATING STATISTICS
(Unaudited)
Three Months Ended
Sept. 30,
2026
June 30,
2026
Mar. 31,
2026
Dec. 31,
2025
Sept. 30,
2025
GLOBAL PRODUCTS ($ in millions)
Beginning of period assets
$
162,910
$
152,556
$
144,525
$
137,175
$
126,070
Add: Assets acquired—Ceres acquisition
—
—
—
1,812
—
Add: Assets acquired—Atlantic House acquisition
—
4,137
—
—
—
Inflows/(outflows)
4,622
3,063
5,934
(283
)
2,241
Market appreciation
3,453
3,154
2,097
5,821
8,864
End of period assets
$
170,985
$
162,910
$
152,556
$
144,525
$
137,175
Average assets during the period
$
170,504
$
164,150
$
154,654
$
140,686
$
130,760
Average ETPs and tokenized products during the period
$
168,466
$
162,151
$
152,716
$
138,871
$
130,760
Average ETP advisory fee during the period
0.36%
0.36%
0.36%
0.35%
0.35%
Total revenue yield
0.42%
0.43%
0.42%
0.42%
0.38%
Revenue days
92
91
90
92
92
Number of products—end of the period
434
428
414
405
397
ETPs AND ONCHAIN PRODUCTS
U.S. LISTED ETFs ($ in millions)
Beginning of period assets
$
99,014
$
90,946
$
88,521
$
88,293
$
85,179
Inflows/(outflows)
2,382
1,079
2,643
(1,108
)
(445
)
Market appreciation/(depreciation)
240
6,989
(218
)
1,336
3,559
End of period assets
$
101,636
$
99,014
$
90,946
$
88,521
$
88,293
Average assets during the period
$
101,620
$
96,585
$
91,742
$
88,074
$
87,205
Number of ETFs—end of the period
93
92
90
85
84
EUROPEAN LISTED ETPs ($ in millions)
Beginning of period assets
$
61,106
$
58,758
$
53,345
$
48,290
$
40,541
Add: Assets acquired—Atlantic House acquisition
—
4,137
—
—
—
Inflows
1,731
2,090
3,118
609
2,448
Market appreciation/(depreciation)
3,184
(3,879
)
2,295
4,446
5,301
End of period assets
$
66,021
$
61,106
$
58,758
$
53,345
$
48,290
Average assets during the period
$
65,874
$
64,649
$
60,193
$
50,102
$
42,853
Number of ETPs—end of the period
320
315
304
300
295
ONCHAIN AUM ($ in millions)
Beginning of period assets
$
761
$
867
$
770
$
592
$
350
Inflows/(outflows)
509
(110
)
98
179
238
Market appreciation/(depreciation)
3
4
(1
)
(1
)
4
End of period assets
$
1,273
$
761
$
867
$
770
$
592
Average assets during the period
$
972
$
917
$
781
$
695
$
702
Number of products—end of the period
19
19
19
19
18
PRIVATE ASSETS ($ in millions)
Beginning of period assets
$
2,029
$
1,985
$
1,889
$
—
$
—
Add: Assets acquired—Ceres acquisition
—
—
—
1,812
—
Inflows
—
4
75
37
—
Market appreciation
26
40
21
40
—
End of period assets
$
2,055
$
2,029
$
1,985
$
1,889
$
—
Average assets during the period
$
2,038
$
1,999
$
1,938
$
1,815
$
—
Number of products—end of the period
2
2
1
1
—
ETPs AND ONCHAIN PRODUCT CATEGORIES ($ in millions)
U.S. Equity
Beginning of period assets
$
46,371
$
41,511
$
41,427
$
40,977
$
38,617
Inflows
769
458
354
191
32
Market appreciation/(depreciation)
57
4,402
(270
)
259
2,328
End of period assets
$
47,197
$
46,371
$
41,511
$
41,427
$
40,977
Average assets during the period
$
47,740
$
44,884
$
42,394
$
41,161
$
40,024
Commodity & Currency
Beginning of period assets
$
37,586
$
40,310
$
36,980
$
31,705
$
26,696
Inflows
1,009
1,890
35
177
1,096
Market appreciation/(depreciation)
2,497
(4,614
)
3,295
5,098
3,913
End of period assets
$
41,092
$
37,586
$
40,310
$
36,980
$
31,705
Average assets during the period
$
41,206
$
41,749
$
41,458
$
33,824
$
28,162
International Developed Market Equity
Beginning of period assets
$
32,219
$
29,186
$
25,616
$
23,893
$
21,725
(Outflows)/inflows
(135
)
749
3,495
1,147
478
Market appreciation
422
2,284
75
576
1,690
End of period assets
$
32,506
$
32,219
$
29,186
$
25,616
$
23,893
Average assets during the period
$
32,909
$
32,022
$
29,349
$
24,708
$
22,481
Fixed Income
Beginning of period assets
$
22,658
$
22,395
$
21,074
$
22,509
$
22,543
Inflows/(outflows)
2,719
320
1,272
(1,358
)
(58
)
Market (depreciation)/appreciation
(200
)
(57
)
49
(77
)
24
End of period assets
$
25,177
$
22,658
$
22,395
$
21,074
$
22,509
Average assets during the period
$
23,862
$
22,179
$
21,187
$
21,422
$
23,128
Emerging Market Equity
Beginning of period assets
$
11,279
$
10,143
$
10,643
$
10,855
$
10,957
Outflows
(106
)
(106
)
(206
)
(508
)
(250
)
Market (depreciation)/appreciation
(80
)
1,242
(294
)
296
148
End of period assets
$
11,093
$
11,279
$
10,143
$
10,643
$
10,855
Average assets during the period
$
11,248
$
11,188
$
10,902
$
10,839
$
10,874
Alternatives
Beginning of period assets
$
5,708
$
1,580
$
1,379
$
1,155
$
814
Add: Assets acquired—Atlantic House acquisition
—
4,137
—
—
—
Inflows
52
31
207
163
231
Market appreciation/(depreciation)
92
(40
)
(6
)
61
110
End of period assets
$
5,852
$
5,708
$
1,580
$
1,379
$
1,155
Average assets during the period
$
5,865
$
4,462
$
1,620
$
1,270
$
929
Leveraged & Inverse
Beginning of period assets
$
3,464
$
3,663
$
3,275
$
2,913
$
2,631
Inflows/(outflows)
272
(354
)
565
(15
)
(52
)
Market (depreciation)/appreciation
(102
)
155
(177
)
377
334
End of period assets
$
3,634
$
3,464
$
3,663
$
3,275
$
2,913
Average assets during the period
$
3,665
$
3,772
$
3,785
$
3,097
$
2,750
Cryptocurrency
Beginning of period assets
$
1,596
$
1,783
$
2,242
$
3,168
$
2,087
Inflows/(outflows)
42
71
137
(117
)
764
Market appreciation/(depreciation)
741
(258
)
(596
)
(809
)
317
End of period assets
$
2,379
$
1,596
$
1,783
$
2,242
$
3,168
Average assets during the period
$
1,971
$
1,895
$
2,021
$
2,550
$
2,412
Headcount
438
414
357
360
338
Note: Previously issued statistics may be restated due to fund closures and trade adjustments.
Source: WisdomTree
WISDOMTREE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
Sept. 30,
2026
Dec. 31,
2025
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and restricted cash
$
299,740
$
311,732
Financial instruments owned, at fair value
41,014
107,117
Accounts receivable
72,696
64,452
Prepaid expenses
11,326
7,338
Other current assets
2,304
1,723
Total current assets
427,080
492,362
Fixed assets, net
548
431
Deferred tax assets, net
—
9,803
Investments
31,747
29,075
Right of use assets—operating leases
2,324
2,764
Goodwill
360,495
228,624
Intangible assets, net
823,447
748,957
Other noncurrent assets
1,445
925
Total assets
$
1,647,086
$
1,512,941
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Current liabilities:
Compensation and benefits payable
$
48,286
$
52,435
Fund management and administration payable
31,766
29,448
Payable to Gold Bullion Holdings (Jersey) Limited (“GBH”)
14,667
13,940
Income taxes payable
3,889
2,295
Operating lease liabilities
1,752
1,614
Convertible notes—current
—
149,604
Accounts payable and other liabilities
20,212
32,720
Total current liabilities
120,572
282,056
Convertible notes—long term
1,058,716
804,203
Contingent consideration
13,697
11,844
Deferred tax liabilities
7,776
—
Operating lease liabilities—long term
582
1,166
Total liabilities
1,201,343
1,099,269
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01; 400,000 shares authorized:
Issued and outstanding: 151,154 and 140,713 at September 30, 2026 and December 31, 2025, respectively
1,512
1,407
Additional paid-in capital
168,751
189,244
Accumulated other comprehensive (loss)/income
(2,527
)
2,227
Retained earnings
278,007
220,794
Total stockholders’ equity
445,743
413,672
Total liabilities and stockholders’ equity
$
1,647,086
$
1,512,941
WISDOMTREE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Nine Months Ended
September 30,
2026
2025
Cash flows from operating activities:
Net income
$
70,369
$
69,107
Adjustments to reconcile net income to net cash provided by operating activities:
Advisory and license fees paid in gold, other precious metals and cryptocurrency
(69,127
)
(51,354
)
Loss on repurchase of convertible notes
68,925
13,011
Stock-based compensation
23,701
16,645
Depreciation and amortization
9,539
1,735
Amortization of issuance costs—convertible notes
3,546
2,151
Gains on financial instruments owned, at fair value
(2,015
)
(1,914
)
Increase in fair value of contingent consideration
1,853
—
Deferred income taxes
(1,512
)
2,628
Amortization of right of use asset
1,491
1,003
Imputed interest on payable to GBH
727
1,405
Losses on investments
435
49
Changes in operating assets and liabilities:
Accounts receivable
(2,887
)
582
Income taxes payable
1,294
(40
)
Prepaid expenses
(2,917
)
(2,351
)
Gold and other precious metals
69,733
49,686
Other assets
(27
)
(482
)
Fund management and administration payable
2,614
(749
)
Compensation and benefits payable
(8,412
)
(6,328
)
Operating lease liabilities
(1,480
)
(987
)
Accounts payable and other liabilities
(12,705
)
(540
)
Net cash provided by operating activities
153,145
93,257
Cash flows from investing activities:
Purchase of financial instruments owned, at fair value
(20,512
)
(25,314
)
Purchase of investments
(3,107
)
(17,553
)
Cash paid—software development
(2,659
)
(2,015
)
Purchase of fixed assets
(252
)
(154
)
Proceeds from the sale of financial instruments owned, at fair value
87,219
8,860
Cash paid—Atlantic House acquisition, net of cash acquired
(197,488
)
—
Net cash used in investing activities
(136,799
)
(36,176
)
Cash flows from financing activities:
Repurchase of convertible notes
(542,545
)
(36,681
)
Common stock repurchased
(61,506
)
(102,732
)
Dividends paid
(13,451
)
(13,218
)
Issuance costs—convertible notes
(12,593
)
(11,064
)
Proceeds from the issuance of convertible notes
603,750
475,000
Net cash (used in)/provided by financing activities
(26,345
)
311,305
(Decrease)/increase in cash flow due to changes in foreign exchange rate
(1,993
)
6,274
Net (decrease)/increase in cash, cash equivalents and restricted cash
(11,992
)
374,660
Cash, cash equivalents and restricted cash—beginning of year
311,732
181,191
Cash, cash equivalents and restricted cash—end of period
$
299,740
$
555,851
Supplemental disclosure of cash flow information:
Cash paid for income taxes
$
35,060
$
19,999
Cash paid for interest
$
45,128
$
15,198
NON-GAAP FINANCIAL MEASUREMENTS
In an effort to provide additional information regarding our results as determined by GAAP, we also disclose certain non-GAAP information which we believe provides useful and meaningful information. Our management reviews these non-GAAP financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-GAAP measurements so as to share this perspective of management. Non-GAAP measurements do not have any standardized meaning, do not replace nor are they superior to GAAP financial measurements and are unlikely to be comparable to similar measures presented by other companies. These non-GAAP financial measurements should be considered in the context with our GAAP results. The non-GAAP financial measurements contained in this press release include the following:
Adjusted Operating Income, Operating Expenses, Income Before Income Taxes, Income Tax Expense, Net Income and Diluted Earnings per Share
We disclose adjusted operating income, operating expenses, income before income taxes, income tax expense, net income and diluted earnings per share as non-GAAP financial measurements in order to report our results exclusive of items that are non-recurring or not core to our operating business. We believe presenting these non-GAAP financial measurements provides investors with a consistent way to analyze our performance. These non-GAAP financial measurements exclude the following:
Gains or losses on financial instruments owned: We account for our financial instruments owned as trading securities, which requires these instruments to be measured at fair value with gains and losses reported in net income. We exclude these items when calculating our non-GAAP financial measurements as the gains and losses introduce earnings volatility and are not core to our operating business.
Foreign currency remeasurement gains and losses on U.S. dollars held by foreign subsidiaries: GAAP requires account balances to be remeasured into an entity’s functional currency, with resulting gains and losses reported in net income. Foreign subsidiaries holding U.S. dollars remeasure these balances into their functional currencies and recognize the gains and losses. Also excluded are remeasurement gains on British pounds held to complete the Atlantic House acquisition. We exclude remeasurement effects from our non-GAAP financial measures, as they introduce earnings volatility, are not core to our operations and arise from balances denominated in our reporting currency.
Tax windfalls and shortfalls upon vesting of stock-based compensation awards: GAAP requires the recognition of tax windfalls and shortfalls within income tax expense. These items arise upon the vesting of stock-based compensation awards and the magnitude is directly correlated to the number of awards vesting/exercised, as well as the difference between the price of our stock on the date the award was granted and the date the award vested or was exercised. We exclude these items when calculating our non-GAAP financial measurements as they introduce earnings volatility and are not core to our operating business.
Remeasurement of contingent consideration arising from the Ceres acquisition: On October 1, 2025, we completed the Ceres acquisition for aggregate consideration consisting of (i) $275 million in cash payable at closing, subject to customary post-closing adjustments and (ii) contingent consideration of up to $225 million, payable in 2030, contingent upon Ceres achieving a compound annual growth rate in revenues of 12% to 22% during the measurement period of January 1, 2025 through December 31, 2029. GAAP requires contingent consideration to be re-measured each reporting period with changes in fair value reported in net income. We exclude changes in fair value of contingent consideration when calculating our non-GAAP financial measurements as these items are not core to our operating business.
Other items: Amortization of intangible assets, changes in deferred tax asset valuation allowance, imputed interest on our payable to Gold Bullion Holdings (Jersey) Limited (“GBH”), gains and losses recognized on our investments, losses related to convertible notes transactions and acquisition-related costs are excluded when calculating our non-GAAP financial measurements.
Adjusted Effective Income Tax Rate
We disclose our adjusted effective income tax rate as a non-GAAP financial measurement in order to report our effective income tax rate exclusive of items that are non-recurring or not core to our operating business. We believe reporting our adjusted effective income tax rate provides investors with a consistent way to analyze our income taxes. Our adjusted effective income tax rate is calculated by dividing adjusted income tax expense by adjusted income before income taxes. See above for information regarding the items that are excluded.
Gross Margin and Gross Margin Percentage
We disclose our gross margin and gross margin percentage as non-GAAP financial measurements because we believe they provide investors with a consistent way to analyze the amount we retain after paying third-party service providers to operate our ETPs. These measures also assist us in analyzing the profitability of our products. We define gross margin as total adjusted operating revenues less fund management and administration expenses. Gross margin percentage is calculated as gross margin divided by total adjusted operating revenues.
GAAP to NON-GAAP RECONCILIATION (CONSOLIDATED)
(in thousands)
(Unaudited)
Three Months Ended
Adjusted Net Income and Diluted Earnings per Share:
Sept. 30,
2026
June 30,
2026
Mar. 31,
2026
Dec. 31,
2025
Sept. 30,
2025
Net income/(loss), as reported
$
49,216
$
44,284
$
(23,131
)
$
40,026
$
19,701
Add back: Amortization of intangible assets arising from the Ceres and Atlantic House acquisitions, net of income taxes
2,426
1,969
1,087
1,086
—
(Deduct)/add back: (Decrease)/increase in fair value of contingent consideration, net of income taxes
(1,566
)
1,030
1,940
538
—
(Deduct)/add back: (Decrease)/increase in deferred tax asset valuation allowance on capital losses
(636
)
(1,615
)
151
(1,237
)
(24
)
Add back: Imputed interest on payable to GBH, net of income taxes
189
183
179
285
364
(Deduct)/add back: Foreign currency remeasurement (gains)/losses on U.S. dollar balances, net of income taxes
(98
)
36
(435
)
(141
)
—
(Deduct)/add back: (Gains)/losses on financial instruments owned, net of income taxes
(49
)
(2,143
)
668
8
(810
)
(Deduct)/add back: (Gains)/losses recognized on investments, net of income taxes
(2
)
(11
)
342
(75
)
734
Add back: Losses related to convertible notes transactions, net of income taxes
—
6,572
62,280
505
12,763
Deduct: Foreign currency remeasurement gains on British pounds held to complete the Atlantic House acquisition, net of income taxes
—
(3,277
)
—
—
—
Add back: Acquisition-related costs, net of income taxes
—
1,118
1,933
240
1,824
Deduct: Tax windfalls upon vesting of stock-based compensation awards
—
(66
)
(4,421
)
—
(76
)
Adjusted net income
$
49,480
$
48,080
$
40,593
$
41,235
$
34,476
Weighted average common shares—diluted
156,179
156,276
152,372
143,314
150,675
Adjusted earnings per share—diluted
$
0.32
$
0.31
$
0.27
$
0.29
$
0.23
Three Months Ended
Gross Margin and Gross Margin Percentage:
Sept. 30,
2026
June 30,
2026
Mar. 31,
2026
Dec. 31,
2025
Sept. 30,
2025
Operating revenues
$
179,375
$
177,160
$
159,470
$
147,434
$
125,616
Deduct: Fund management and administration
(30,532
)
(30,229
)
(24,880
)
(24,830
)
(22,353
)
Gross margin
$
148,843
$
146,931
$
134,590
$
122,604
$
103,263
Gross margin percentage
83.0%
82.9%
84.4%
83.2%
82.2%
Three Months Ended
Adjusted Operating Income and Adjusted Operating Income Margin:
Sept. 30,
2026
June 30,
2026
Mar. 31,
2026
Dec. 31,
2025
Sept. 30,
2025
Operating revenues
$
179,375
$
177,160
$
159,470
$
147,434
$
125,616
Operating income
74,122
71,811
59,350
59,747
$
45,654
Add back: Amortization of intangible assets arising from the Ceres and Atlantic House acquisitions
3,221
2,612
1,435
1,434
—
Add back: Acquisition-related costs
—
1,118
1,933
317
2,409
Adjusted operating income
$
77,343
$
75,541
$
62,718
$
61,498
$
48,063
Adjusted operating income margin
43.1%
42.6%
39.3%
41.7%
38.3%
Three Months Ended
Adjusted Total Operating Expenses:
Sept. 30,
2026
June 30,
2026
Mar. 31,
2026
Dec. 31,
2025
Sept. 30,
2025
Total operating expenses
$
105,253
$
105,349
$
100,120
$
87,687
$
79,962
Deduct: Amortization of intangible assets arising from the Ceres and Atlantic House acquisitions
(3,221
)
(2,612
)
(1,435
)
(1,434
)
—
Deduct: Acquisition-related costs
—
(1,118
)
(1,933
)
(317
)
(2,409
)
Adjusted total operating expenses
$
102,032
$
101,619
$
96,752
$
85,936
$
77,553
Three Months Ended
Adjusted Income Before Income Taxes:
Sept. 30,
2026
June 30,
2026
Mar. 31,
2026
Dec. 31,
2025
Sept. 30,
2025
Income/(loss) before income taxes
$
64,477
$
58,547
$
(14,582
)
$
50,463
$
29,517
Add back: Amortization of intangible assets arising from the Ceres and Atlantic House acquisitions
3,221
2,612
1,435
1,434
—
(Deduct)/add back: (Decrease)/increase in fair value of contingent consideration
(2,069
)
1,360
2,562
710
—
Add back: Imputed interest on payable to GBH
249
242
236
377
481
(Deduct)/add back: Foreign currency remeasurement (gains)/losses on U.S. dollar balances, net of income taxes
(132
)
68
(566
)
(205
)
—
(Deduct)/add back: (Gains)/losses on financial instruments owned
(65
)
(2,831
)
882
10
(1,070
)
(Deduct)/add back: (Gains)/losses recognized on investments
(2
)
(15
)
452
(99
)
970
Add back: Losses related to convertible notes transactions
—
6,623
62,302
833
13,011
Deduct: Foreign currency remeasurement gains on British pounds held to complete the Atlantic House acquisition, net of income taxes
—
(4,370
)
—
—
—
Add back: Acquisition-related costs
—
1,118
1,933
317
2,409
Adjusted income before income taxes
$
65,679
$
63,354
$
54,654
$
53,840
$
45,318
Three Months Ended
Adjusted Income Tax Expense and Adjusted Effective Income Tax Rate:
Sept. 30,
2026
June 30,
2026
Mar. 31,
2026
Dec. 31,
2025
Sept. 30,
2025
Adjusted income before income taxes (above)
$
65,679
$
63,354
$
54,654
$
53,840
$
45,318
Income tax expense
$
15,261
$
14,263
$
8,549
$
10,437
$
9,816
Add back: Tax benefit of intangible asset amortization arising from the Ceres and Atlantic House acquisitions
795
643
348
348
—
Add back/(deduct): decrease/(increase) in deferred tax asset valuation allowance on capital losses
636
1,615
(151
)
1,237
24
(Deduct)/add back: Tax (expense)/benefit arising from (decrease)/increase in fair value of contingent consideration
(503
)
330
622
172
—
Add back: Tax benefit on imputed interest
60
59
57
92
117
(Deduct)/add back: Tax (expense)/benefit on foreign currency remeasurement losses/(gains) on U.S. dollar balances
(34
)
32
(131
)
(64
)
—
(Deduct)/add back: Tax (expense)/benefit arising from (gains)/losses on financial instruments owned
(16
)
(688
)
214
2
(260
)
Deduct: Tax expense on foreign currency remeasurement gains on British pounds held to complete the Atlantic House acquisition
—
(1,093
)
—
—
—
Add back: Tax windfalls upon vesting of stock-based compensation awards
—
66
4,421
—
76
Add back: Tax benefit arising from convertible notes transactions
—
51
22
328
248
(Deduct)/add back: Tax (expense)/benefit on (gains)/losses on investments
—
(4
)
110
(24
)
236
Add back: Tax benefit on acquisition-related costs
—
—
—
77
585
Adjusted income tax expense
$
16,199
$
15,274
$
14,061
$
12,605
$
10,842
Adjusted effective income tax rate
24.7%
24.1%
25.7%
23.4%
23.9%
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This press release 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, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, the risks described below. If one or more of these or other risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this press release completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.
In particular, forward-looking statements in this press release may include statements about:
Our business is subject to many risks and uncertainties, including without limitation:
Additional risks include those associated with the Ceres and Atlantic House acquisitions, including the risk that the integrations may be more difficult, time-consuming or costly than expected, or that expected benefits (including projected business growth, realization of synergies, or the ability to raise additional capital into the funds of the acquired businesses) may not be realized as anticipated. Other factors, such as general economic conditions, including currency exchange rate fluctuations, also may have an effect on the results of our operations. For a more complete description of the risks noted above and other risks that could cause our actual results to differ from our current expectations, see “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.
The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Therefore, these forward-looking statements do not represent our views as of any date other than the date of this press release.
Category: Business Update