WisdomTree (WT) investor relations material

Executive summary

• Achieved record assets under management (AUM) of $152.6 billion as of March 31, 2026, up 5.6% from the prior quarter, driven by $5.9 billion in net inflows and market appreciation across US, Europe, and digital platforms.

• Completed the $200 million acquisition of Atlantic House in May 2026, adding $4 billion in AUM, accelerating product innovation, expanding UK and European market reach, and enhancing revenue diversification.

• Continued leadership and momentum in digital assets, with tokenized money market fund AUM reaching $867 million, a 27x increase versus year-end 2024.

• Reported a GAAP net loss of $23.1 million in Q1 2026, primarily due to a $62.3 million loss on extinguishment of convertible notes; adjusted net income was $40.6 million or $0.27 per share.

• Strategic focus on diversification, higher revenue yield, and scaling through organic growth, targeted acquisitions, and digital innovation.

Financial highlights

• Q1 2026 revenues rose 47.5% year-over-year to $159.5 million, driven by higher AUM, increased trading activity, and new revenue streams.

• Adjusted operating income was $62.7 million, with adjusted operating margin expanding by 770 basis points year-over-year to 39.3%.

• Gross margin (non-GAAP) increased to 84.4% in Q1 2026, up from 80.8% in Q1 2025.

• Operating expenses increased 35.4% year-over-year to $100.1 million, mainly from higher compensation, fund management, and acquisition costs.

• Other revenues reached $16.4 million, with strong contributions from European products and Ceres.

Outlook and guidance

• Compensation to revenue ratio for 2026 estimated at 26–28%, trending toward 28% due to Atlantic House integration.

• Gross margin guidance raised to 83%-84%, reflecting operating leverage and acquisition impact.

• Discretionary spending for 2026 projected at $83–89 million, up from prior guidance due to Atlantic House inclusion.

• Interest expense forecasted at $53–54 million for the year, with interest income at $10 million.

• Adjusted tax rate expected at 24%-25% for the year; diluted shares forecasted at 155–158 million for Q2, reducing to 152–157 million in H2 after note retirements.