WisdomTree Announces Third Quarter 2025 Results
NEW YORK--( BUSINESS WIRE)--WisdomTree, Inc. (NYSE: WT), a global financial innovator, today reported financial results for the third quarter of 2025.
$19.7 million of net income ($34.5 (1) million of net income, as adjusted), including a loss on extinguishment of convertible notes of $13.0 million arising from the repurchase of $24.0 million aggregate principal amount of our 5.75% convertible senior notes due 2028 (the “2028 Notes”). See “Non-GAAP Financial Measurements” for additional information.
$137.2 billion of ending AUM, an increase of 8.8% from the prior quarter arising from market appreciation and net inflows.
$2.2 billion of net inflows, primarily driven by inflows into our commodity, cryptocurrency and international developed equity products.
0.35% average advisory fee, unchanged from the prior quarter.
0.38% adjusted revenue yield (2), unchanged from the prior quarter.
$125.6 million of operating revenues, an increase of 11.5% from the prior quarter due to higher average AUM and higher other revenues attributable to our European listed exchange-traded products (“ETPs”).
82.2% gross margin (1), a 1.1 point increase from the prior quarter due to higher revenues.
36.3% operating income margin (38.3% (1) as adjusted), a 5.5 point increase (5.8 point increase, as adjusted) from the prior quarter primarily due to higher revenues.
$475.0 million issuance of convertible senior notes due 2030 (the “2030 Notes”), bearing interest at a rate of 4.625% and issued with a conversion price of $19.15 per share. Concurrent with the issuance, we paid $36.7 million to repurchase $24.0 million aggregate principal amount of our 2028 Notes (with a conversion price of $9.54 per share).
$90.0 million of cash consideration paid to repurchase approximately 6.8 million shares of our common stock in connection with the issuance of the 2030 Notes.
$0.03 quarterly dividend declared, payable on November 26, 2025 to stockholders of record as of the close of business on November 12, 2025.
Update from Jarrett Lilien, WisdomTree COO and President
We’re executing with consistency and focus, delivering over $2.2 billion of net inflows in Q3, record firmwide AUM of $137 billion, and strong performance across every business line. Model portfolios remain one of our fastest-growing areas, with AUM reaching nearly $5.9 billion, up more than 50% year-to-date, and continued advisor adoption led by custom model solutions. We’re building meaningful momentum and are well positioned to capture future growth.
Update from Jonathan Steinberg, WisdomTree CEO
WisdomTree’s foundation is the strongest it’s ever been, supported by a diversified, scalable platform that continues to deliver broad-based inflows and consistent execution across our global business. Our expansion into private assets through the acquisition of Ceres Partners, along with continued leadership in tokenization, positions WisdomTree for long-term, technology-driven growth and sustained value creation.
OPERATING AND FINANCIAL HIGHLIGHTS
Three Months Ended
Sept. 30,
2025
June 30,
2025
Mar. 31,
2025
Dec. 31,
2024
Sept. 30,
2024
Consolidated Operating Highlights ($ in billions):
AUM—end of period
$
137.2
$
126.1
$
115.8
$
109.8
$
112.6
Net inflows/(outflows)
$
2.2
$
3.5
$
3.1
$
(0.3)
$
(2.4)
Average AUM
$
130.8
$
119.2
$
114.6
$
112.3
$
110.4
Average advisory fee
0.35%
0.35%
0.35%
0.36%
0.37%
Adjusted revenue yield (2)
0.38%
0.38%
0.38%
0.39%
0.39%
Consolidated Financial Highlights ($ in millions, except per share amounts):
Operating revenues
$
125.6
$
112.6
$
108.1
$
110.7
$
113.2
Net income/(loss)
$
19.7
$
24.8
$
24.6
$
27.3
$
(4.5)
Diluted earnings/(loss) per share
$
0.13
$
0.17
$
0.17
$
0.18
$
(0.13)
Operating income margin
36.3%
30.8%
31.6%
31.7%
36.0%
As Adjusted (Non-GAAP (1)):
Operating revenues, as adjusted
$
125.6
$
112.6
$
108.1
$
110.5
$
109.5
Gross margin
82.2%
81.1%
80.8%
79.3%
80.8%
Net income, as adjusted
$
34.5
$
25.9
$
23.0
$
25.3
$
28.8
Diluted earnings per share, as adjusted
$
0.23
$
0.18
$
0.16
$
0.17
$
0.18
Operating income margin, as adjusted
38.3%
32.5%
31.6%
31.7%
37.3%
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,
2025
June 30,
2025
Mar. 31,
2025
Dec. 31,
2024
Sept. 30,
2024
Sept. 30,
2025
Sept. 30,
2024
Operating Revenues:
Advisory fees
$
114,485
$
103,241
$
99,549
$
102,264
$
101,659
$
317,275
$
293,098
Other revenues
11,131
9,380
8,533
8,433
11,509
29,044
23,942
Total revenues
125,616
112,621
108,082
110,697
113,168
346,319
317,040
Operating Expenses:
Compensation and benefits
33,791
32,827
33,788
30,032
29,405
100,406
91,249
Fund management and administration
22,353
21,252
20,714
22,858
21,004
64,319
61,105
Marketing and advertising
4,788
5,330
4,813
6,117
4,897
14,931
14,415
Sales and business development
3,943
4,232
4,137
4,101
3,465
12,312
10,716
Professional fees
3,505
3,177
2,782
4,559
6,315
9,464
16,539
Occupancy, communications and equipment
1,601
1,559
1,482
1,423
1,397
4,642
3,921
Depreciation and amortization
615
580
540
504
447
1,735
1,248
Third-party distribution fees
3,977
4,083
3,112
3,161
2,983
11,172
7,977
Acquisition-related costs
2,409
1,967
—
—
—
4,376
—
Other
2,980
2,982
2,552
2,902
2,463
8,514
7,617
Total operating expenses
79,962
77,989
73,920
75,657
72,376
231,871
214,787
Operating income
45,654
34,632
34,162
35,040
40,792
114,448
102,253
Other Income/(Expenses):
Interest expense
(8,466
)
(5,490
)
(5,441
)
(5,616
)
(5,027
)
(19,397
)
(13,295
)
Interest income
4,015
2,090
1,897
2,147
1,795
8,002
4,631
Loss on extinguishment of convertible notes
(13,011
)
—
—
—
(30,632
)
(13,011
)
(30,632
)
Other gains and losses, net
1,325
638
(250
)
2,627
(3,062
)
1,713
(1,753
)
Income before income taxes
29,517
31,870
30,368
34,198
3,866
91,755
61,204
Income tax expense
9,816
7,093
5,739
6,890
8,351
22,648
21,819
Net income/(loss)
19,701
$
24,777
$
24,629
$
27,308
$
(4,485
)
69,107
39,385
Earnings/(loss) per share—basic
$
0.14
$
0.17
$
0.17
$
0.19
$
(0.13) (3
)
$
0.48
$
0.16 (2
)
Earnings/(loss) per share—diluted
$
0.13
$
0.17
$
0.17
$
0.18
$
(0.13) (3
)
$
0.47
$
0.16 (2
)
Weighted average common shares—basic
139,584
143,076
142,580
141,275
143,929
141,736
145,756
Weighted average common shares—diluted
150,675
146,640
146,545
147,612
143,929
146,360
162,691
As Adjusted (Non-GAAP (1))
Total revenues
$
125,616
$
112,621
$
108,082
$
110,505
$
109,507
Total operating expenses
$
77,553
$
76,022
$
73,920
$
75,465
$
68,715
Operating income
$
48,063
$
36,599
$
34,162
$
35,040
$
40,792
Income before income taxes
$
45,318
$
33,798
$
30,947
$
33,033
$
37,187
Income tax expense
$
10,842
$
7,935
$
7,933
$
7,753
$
9,049
Net income
$
34,476
$
25,863
$
23,014
$
25,280
$
28,768
Earnings per share—diluted
$
0.23
$
0.18
$
0.16
$
0.17
$
0.18
Weighted average common shares—diluted
150,675
146,640
146,545
147,612
156,745
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 31, 2025 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 global financial innovator, offering a diverse suite of exchange-traded products (ETPs), models and solutions, as well as digital asset-related products. Our offerings empower investors to shape their financial future and equip financial professionals to grow their businesses. Leveraging the latest financial infrastructure, we create products that emphasize access, transparency and provide an enhanced user experience. Building on our heritage of innovation, we offer next-generation digital products and services related to tokenized real world assets and stablecoins, as well as our blockchain-native digital wallet, WisdomTree Prime ®, and institutional platform, WisdomTree Connect™.*
* The WisdomTree Prime digital wallet and digital asset services and WisdomTree Connect institutional platform 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, in select U.S. jurisdictions 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://www.wisdomtreeprime.com, the WisdomTree Prime mobile app or https://wisdomtreeconnect.com for more information.
WisdomTree currently has approximately $138.4 billion in assets under management globally, inclusive of assets under management attributable to our recently completed acquisition of Ceres Partners, LLC.
For more information about WisdomTree, WisdomTree Connect and WisdomTree Prime, visit: https://www.wisdomtree.com.
Please visit us on X at @WisdomTreeNews.
WisdomTree ® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.
PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE PRIME:
NOT FDIC INSURED | NO BANK GUARANTEE | NOT A BANK DEPOSIT | MAY LOSE VALUE | NOT SIPC PROTECTED | NOT INSURED BY ANY GOVERNMENT AGENCY
The products and services available through the WisdomTree Prime app and WisdomTree Connect are not endorsed, indemnified or guaranteed by any regulatory agency.
____________________
(1)
See “Non-GAAP Financial Measurements.”
(2)
Adjusted 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)
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 $718 of stock repurchase excise taxes. The three months ended September 30, 2024 includes a loss of $11,375 recognized upon the repurchase of our Series A Non-Voting Convertible Preferred Stock convertible into approximately 14.75 million shares of common stock from ETFS Capital Limited and $1,868 of stock repurchase excise taxes. These items are excluded from net income but are required to be added to net income to arrive at income available to common stockholders in the calculation of EPS. These items are excluded from our EPS when computed on a non-GAAP basis.
WISDOMTREE, INC. AND SUBSIDIARIES
KEY OPERATING STATISTICS
(Unaudited)
Three Months Ended
Sept. 30,
2025
June 30,
2025
Mar. 31,
2025
Dec. 31,
2024
Sept. 30,
2024
GLOBAL PRODUCTS ($ in millions)
Beginning of period assets
$
126,070
$
115,787
$
109,779
$
112,577
$
109,686
Add: Digital Assets—Jan. 1, 2025
—
—
32
—
—
Inflows/(outflows)
2,237
3,529
3,052
(281
)
(2,395
)
Market appreciation/(depreciation)
8,868
6,754
2,924
(2,517
)
5,286
End of period assets
$
137,175
$
126,070
$
115,787
$
109,779
$
112,577
Average assets during the period
$
130,760
$
119,185
$
114,622
$
112,349
$
110,369
Average advisory fee during the period
0.35
%
0.35
%
0.35
%
0.36
%
0.37
%
Revenue days
92
91
90
92
92
Number of products—end of the period
397
383
375
(1)
353
352
U.S. LISTED ETFs ($ in millions)
Beginning of period assets
$
85,179
$
80,531
$
79,095
$
81,267
$
79,722
(Outflows)/inflows
(448
)
1,110
1,847
(40
)
(1,650
)
Market appreciation/(depreciation)
3,562
3,538
(411
)
(2,132
)
3,195
End of period assets
$
88,293
$
85,179
$
80,531
$
79,095
$
81,267
Average assets during the period
$
87,205
$
81,525
$
81,127
$
80,661
$
80,335
Number of ETFs—end of the period
84
81
78
78
78
EUROPEAN LISTED ETPs ($ in millions)
Beginning of period assets
$
40,541
$
35,124
$
30,684
$
31,310
$
29,964
Inflows/(outflows)
2,447
2,201
1,104
(241
)
(745
)
Market appreciation/(depreciation)
5,302
3,216
3,336
(385
)
2,091
End of period assets
$
48,290
$
40,541
$
35,124
$
30,684
$
31,310
Average assets during the period
$
42,853
$
37,439
$
33,415
$
31,688
$
30,034
Number of ETPs—end of the period
295
285
280
275
274
DIGITAL ASSETS ($ in millions)
Beginning of period assets
$
350
$
132
$
—
$
—
$
—
Add: Digital Assets—Jan. 1, 2025
—
—
32
—
—
Inflows
238
218
101
—
—
Market appreciation/(depreciation)
4
—
(1
)
—
—
End of period assets
$
592
$
350
$
132
$
—
$
—
Average assets during the period
$
702
$
221
$
80
$
—
$
—
Number of products—end of the period
18
17
17
(1)
—
—
PRODUCT CATEGORIES ($ in millions)
U.S. Equity
Beginning of period assets
$
38,617
$
35,628
$
35,414
$
34,643
$
31,834
Add: Digital Assets—Jan. 1, 2025
—
—
9
—
—
Inflows
41
1,288
962
1,099
328
Market appreciation/(depreciation)
2,319
1,701
(757
)
(328
)
2,481
End of period assets
$
40,977
$
38,617
$
35,628
$
35,414
$
34,643
Average assets during the period
$
40,024
$
36,080
$
36,278
$
35,714
$
33,175
Three Months Ended
Sept. 30,
2025
June 30,
2025
Mar. 31,
2025
Dec. 31,
2024
Sept. 30,
2024
Commodity & Currency
Beginning of period assets
$
26,696
$
25,487
$
21,906
$
23,034
$
21,987
Add: Digital Assets—Jan. 1, 2025
—
—
1
—
—
Inflows/(outflows)
1,097
(110
)
(159
)
(440
)
(741
)
Market appreciation/(depreciation)
3,912
1,319
3,739
(688
)
1,788
End of period assets
$
31,705
$
26,696
$
25,487
$
21,906
$
23,034
Average assets during the period
$
28,162
$
25,888
$
23,996
$
22,989
$
22,016
International Developed Market Equity
Beginning of period assets
$
21,725
$
18,178
$
17,602
$
18,075
$
19,385
Inflows/(outflows)
476
1,645
474
63
(1,391
)
Market appreciation/(depreciation)
1,692
1,902
102
(536
)
81
End of period assets
$
23,893
$
21,725
$
18,178
$
17,602
$
18,075
Average assets during the period
$
22,481
$
19,577
$
18,275
$
17,716
$
18,636
Fixed Income
Beginning of period assets
$
22,543
$
22,230
$
20,043
$
20,767
$
21,430
Add: Digital Assets—Jan. 1, 2025
—
—
21
—
—
(Outflows)/inflows
(61
)
148
2,093
(387
)
(897
)
Market appreciation/(depreciation)
27
165
73
(337
)
234
End of period assets
$
22,509
$
22,543
$
22,230
$
20,043
$
20,767
Average assets during the period
$
23,128
$
22,526
$
21,464
$
20,398
$
21,135
Emerging Market Equity
Beginning of period assets
$
10,957
$
9,985
$
10,468
$
12,452
$
11,875
(Outflows)/inflows
(250
)
28
(445
)
(908
)
(20
)
Market appreciation/(depreciation)
148
944
(38
)
(1,076
)
597
End of period assets
$
10,855
$
10,957
$
9,985
$
10,468
$
12,452
Average assets during the period
$
10,874
$
10,295
$
10,072
$
11,407
$
12,083
Cryptocurrency
Beginning of period assets
$
2,087
$
1,553
$
1,912
$
1,054
$
838
Add: Digital Assets—Jan. 1, 2025
—
—
1
—
—
Inflows/(outflows)
764
198
(89
)
315
201
Market appreciation/(depreciation)
317
336
(271
)
543
15
End of period assets
$
3,168
$
2,087
$
1,553
$
1,912
$
1,054
Average assets during the period
$
2,412
$
1,800
$
1,900
$
1,599
$
917
Leveraged & Inverse
Beginning of period assets
$
2,631
$
2,133
$
1,924
$
2,082
$
1,922
(Outflows)/inflows
(52
)
141
116
(69
)
71
Market appreciation/(depreciation)
334
357
93
(89
)
89
End of period assets
$
2,913
$
2,631
$
2,133
$
1,924
$
2,082
Average assets during the period
$
2,750
$
2,354
$
2,083
$
2,032
$
1,962
Alternatives
Beginning of period assets
$
814
$
593
$
510
$
470
$
415
Inflows
222
191
100
46
54
Market appreciation/(depreciation)
119
30
(17
)
(6
)
1
End of period assets
$
1,155
$
814
$
593
$
510
$
470
Average assets during the period
$
929
$
665
$
554
$
494
$
445
Headcount
338
321
315
313
314
____________________
(1) Includes 17 digital assets products, which were launched prior to January 1, 2025.
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,
2025
Dec. 31,
2024
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and restricted cash
$
555,851
$
181,191
Financial instruments owned, at fair value
104,283
85,439
Accounts receivable
46,630
44,866
Prepaid expenses
7,799
5,340
Other current assets
1,844
1,542
Total current assets
716,407
318,378
Fixed assets, net
307
336
Deferred tax assets, net
8,010
11,656
Investments
26,476
8,922
Right of use assets—operating leases
1,768
880
Goodwill
86,841
86,841
Intangible assets, net
606,452
605,896
Other noncurrent assets
750
631
Total assets
$
1,447,011
$
1,033,540
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Current liabilities:
Convertible notes—current
$
149,386
$
—
Compensation and benefits payable
34,287
39,701
Fund management and administration payable
30,991
31,135
Payable to Gold Bullion Holdings (Jersey) Limited (“GBH”)
14,804
14,804
Operating lease liabilities
1,258
709
Income taxes payable
701
724
Accounts payable and other liabilities
23,014
22,124
Total current liabilities
254,441
109,197
Convertible notes—long term
805,064
512,033
Payable to GBH
13,564
12,159
Operating lease liabilities—long term
524
171
Total liabilities
1,073,593
633,560
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01; 400,000 shares authorized:
Issued and outstanding: 140,278 and 146,102 at September 30, 2025 and December 31, 2024, respectively
1,403
1,461
Additional paid-in capital
184,274
270,303
Accumulated other comprehensive gain/(loss)
2,755
(1,607
)
Retained earnings
184,986
129,823
Total stockholders’ equity
373,418
399,980
Total liabilities and stockholders’ equity
$
1,447,011
$
1,033,540
WISDOMTREE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Nine Months Ended
September 30,
2025
2024
Cash flows from operating activities:
Net income
$
69,107
$
39,385
Adjustments to reconcile net income to net cash provided by operating activities:
Advisory and license fees paid in gold, other precious metals and cryptocurrency
(51,354
)
(39,028
)
Stock-based compensation
16,645
15,952
Loss on extinguishment of convertible notes
13,011
30,632
Deferred income taxes
2,628
2,103
Amortization of issuance costs—convertible notes
2,151
1,266
Gains on financial instruments owned, at fair value
(1,914
)
(2,575
)
Depreciation and amortization
1,735
1,248
Imputed interest on payable to GBH
1,405
2,039
Amortization of right of use asset
1,003
976
Net losses on investments
49
619
Changes in operating assets and liabilities:
Accounts receivable
582
(9,344
)
Prepaid expenses
(2,351
)
(1,635
)
Gold and other precious metals
49,686
38,603
Other assets
(482
)
(150
)
Fund management and administration payable
(749
)
(6
)
Compensation and benefits payable
(6,328
)
(8,251
)
Income taxes payable
(40
)
1,919
Operating lease liabilities
(987
)
(991
)
Accounts payable and other liabilities
(540
)
6,124
Net cash provided by operating activities
93,257
78,886
Cash flows from investing activities:
Purchase of financial instruments owned, at fair value
(25,314
)
(57,855
)
Purchase of investments
(17,553
)
—
Cash paid—software development
(2,015
)
(1,790
)
Purchase of fixed assets
(154
)
(128
)
Proceeds from the sale of financial instruments owned, at fair value
8,860
42,388
Proceeds from the exit from investment in Securrency, Inc.
—
465
Proceeds from held-to-maturity securities maturing or called prior to maturity
—
18
Net cash used in investing activities
(36,176
)
(16,902
)
Cash flows from financing activities:
Common stock repurchased
(102,732
)
(62,870
)
Repurchase and maturity of convertible notes
(36,681
)
(132,713
)
Dividends paid
(13,218
)
(14,745
)
Issuance costs—convertible notes
(11,064
)
(7,667
)
Repurchase of Series A Non-Voting Convertible Preferred Stock
—
(143,812
)
Repurchase costs—Series A Non-Voting Convertible Preferred Stock
—
(132
)
Proceeds from the issuance of convertible notes
475,000
345,000
Net cash provided by/(used in) financing activities
311,305
(16,939
)
Increase in cash flow due to changes in foreign exchange rate
6,274
2,133
Net increase in cash, cash equivalents and restricted cash
374,660
47,178
Cash, cash equivalents and restricted cash—beginning of year
181,191
129,305
Cash, cash equivalents and restricted cash—end of period
$
555,851
$
176,483
Supplemental disclosure of cash flow information:
Cash paid for income taxes
$
19,999
$
17,807
Cash paid for interest
$
15,198
$
9,913
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:
Adjusted Revenues, Operating Income, Operating Expenses, Income Before Income Taxes, Income Tax Expense, Net Income and Diluted Earnings per Share
We disclose adjusted revenues, 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. Beginning in the second quarter of 2025, we began excluding material 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.
Imputed interest on our payable to the Gold Bullion Holdings (Jersey) Limited (“GBH”): During the fourth quarter of 2023, we repurchased our Series C Non-Voting Convertible Preferred Stock, which was convertible into approximately 13.1 million shares of WisdomTree common stock, from GBH, a subsidiary of the World Gold Council, for aggregate cash consideration of approximately $84.4 million. Under the terms of the transaction, we paid GBH $40.0 million on the closing date, with the remainder of the purchase price payable in equal annual installments on the first, second and third anniversaries of the closing date, with no requirement to pay interest. Under U.S. GAAP, the obligation is recorded at its present value utilizing a market rate of interest on the closing date of 7.0% and the corresponding discount is amortized as interest expense pursuant to the effective interest method of accounting over the life of the obligation. We exclude this item when calculating our non-GAAP financial measurements as recognition of interest expense is non-cash and contrary to the stated terms of our obligation.
Other items: Loss on extinguishment of convertible notes, acquisition-related costs, a civil money penalty in connection with the SEC ESG Settlement, gains and losses recognized on our investments and changes in deferred tax asset valuation allowance are excluded when calculating our non-GAAP financial measurements. We also offset revenues and related expenses pertaining to legal and other related expenses covered by insurance as the gross presentation required under GAAP serves to overstate our revenues and expenses in the ordinary course of business.
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,
2025
June 30,
2025
Mar. 31,
2025
Dec. 31,
2024
Sept. 30,
2024
Net income/(loss), as reported
$
19,701
$
24,777
$
24,629
$
27,308
$
(4,485
)
Add back: Loss on extinguishment of convertible notes, net of income taxes
12,763
—
—
(718
)
30,128
Add back: Acquisition-related costs, net of income taxes
1,824
1,489
—
—
—
(Deduct)/add back: (Gains)/losses on financial instruments owned, net of income taxes
(810
)
(972
)
333
(1,722
)
(607
)
Add back/(deduct): Losses/(gains) recognized on investments, net of income taxes
734
(458
)
(239
)
389
(436
)
Add back: Imputed interest on payable to GBH, net of income taxes
364
354
344
451
528
Deduct: Tax windfalls upon vesting of stock-based compensation awards
(76
)
(4
)
(2,083
)
—
(25
)
(Deduct)/add back: (Decrease)/increase in deferred tax asset valuation allowance on financial instruments owned and investments
(24
)
(459
)
30
(428
)
(335
)
Add back: Foreign currency remeasurement losses on U.S. dollar balances, net of income taxes
—
1,136
—
—
—
Add back: Civil money penalty in connection with the SEC ESG Settlement
—
—
—
—
4,000
Adjusted net income
$
34,476
$
25,863
$
23,014
$
25,280
$
28,768
Weighted average common shares—diluted
150,675
146,640
146,545
147,612
156,745
Adjusted earnings per share—diluted
$
0.23
$
0.18
$
0.16
$
0.17
$
0.18
Three Months Ended
Gross Margin and Gross Margin Percentage:
Sept. 30,
2025
June 30,
2025
Mar. 31,
2025
Dec. 31,
2024
Sept. 30,
2024
Operating revenues
$
125,616
$
112,621
$
108,082
$
110,697
$
113,168
Deduct: Legal and other related expenses covered by insurance
—
—
—
(192
)
(3,661
)
Operating revenues, as adjusted
$
125,616
$
112,621
$
108,082
$
110,505
$
109,507
Deduct: Fund management and administration
(22,353
)
(21,252
)
(20,714
)
(22,858
)
(21,004
)
Gross margin
$
103,263
$
91,369
$
87,368
$
87,647
$
88,503
Gross margin percentage
82.2%
81.1%
80.8%
79.3%
80.8%
Three Months Ended
Adjusted Operating Revenues, Operating Income and Adjusted Operating Income Margin:
Sept. 30,
2025
June 30,
2025
Mar. 31,
2025
Dec. 31,
2024
Sept. 30,
2024
Operating revenues
$
125,616
$
112,621
$
108,082
$
110,697
$
113,168
Deduct: Legal and other related expenses covered by insurance
—
—
—
(192
)
(3,661
)
Operating revenues, as adjusted
$
125,616
$
112,621
$
108,082
$
110,505
$
109,507
Operating income
$
45,654
$
34,632
$
34,162
$
35,040
$
40,792
Add back: Acquisition-related costs
2,409
1,967
—
—
—
Adjusted operating income
$
48,063
$
36,599
$
34,162
$
35,040
$
40,792
Adjusted operating income margin
38.3%
32.5%
31.6%
31.7%
37.3%
Three Months Ended
Adjusted Total Operating Expenses:
Sept. 30,
2025
June 30,
2025
Mar. 31,
2025
Dec. 31,
2024
Sept. 30,
2024
Total operating expenses
$
79,962
$
77,989
$
73,920
$
75,657
$
72,376
Deduct: Acquisition-related costs
(2,409
)
(1,967
)
—
—
—
Deduct: Legal and other related expenses covered by insurance
—
—
—
(192
)
(3661
)
Adjusted total operating expenses
$
77,553
$
76,022
$
73,920
$
75,465
$
68,715
Three Months Ended
Adjusted Income Before Income Taxes:
Sept. 30,
2025
June 30,
2025
Mar. 31,
2025
Dec. 31,
2024
Sept. 30,
2024
Income before income taxes
$
29,517
$
31,870
$
30,368
$
34,198
$
3,866
Add back: Loss on extinguishment of convertible notes
13,011
—
—
—
30,632
Add back: Acquisition-related costs
2,409
1,967
—
—
—
(Deduct)/add back: (Gains)/losses on financial instruments owned
(1,070
)
(1,284
)
440
(2,275
)
(802
)
Add back/(deduct): Losses/(gains) recognized on investments
970
(605
)
(316
)
514
(576
)
Add back: Imputed interest on payable to GBH
481
467
455
596
697
Add back: Foreign currency remeasurement losses on U.S. dollar balances, net of income taxes
—
1,383
—
—
—
Add back: Civil money penalty in connection with the SEC ESG Settlement
—
—
—
—
4,000
Adjusted income before income taxes
$
45,318
$
33,798
$
30,947
$
33,033
$
37,817
Three Months Ended
Adjusted Income Tax Expense and Adjusted Effective Income Tax Rate:
Sept. 30,
2025
June 30,
2025
Mar. 31,
2025
Dec. 31,
2024
Sept. 30,
2024
Adjusted income before income taxes (above)
$
45,318
$
33,798
$
30,947
$
33,033
$
37,817
Income tax expense
$
9,816
$
7,093
$
5,739
$
6,890
$
8,351
Add back: Tax benefit on acquisition-related costs
585
478
—
—
—
(Deduct)/add back: Tax (expense)/benefit arising from (gains)/losses on financial instruments owned
(260
)
(312
)
107
(553
)
(195
)
Add back: Tax benefit arising from extinguishment of convertible notes
248
—
—
718
504
Add back/(deduct): Tax benefit/(expense) on losses/(gains) on investments
236
(147
)
(77
)
125
(140
)
Add back: Tax benefit on imputed interest
117
113
111
145
169
Add back: Tax windfalls upon vesting of stock-based compensation awards
76
4
2,083
—
25
Add back/(deduct): Decrease/(increase) in deferred tax asset valuation allowance on financial instruments owned and investments
24
459
(30
)
428
335
Add back: Tax benefit on foreign currency remeasurement losses on U.S. dollar balances
—
247
—
—
—
Adjusted income tax expense
$
10,842
$
7,935
$
7,933
$
7,753
$
9,049
Adjusted effective income tax rate
23.9
%
23.5
%
25.6
%
23.5
%
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 acquisition of Ceres Partners, LLC, including the risk that integration may be more difficult, time-consuming or costly than expected, or that expected benefits (including projected business growth or the ability to raise additional capital into the funds of the acquired business) 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, 2024, and in subsequent reports filed with or furnished to the SEC.
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