WisdomTree (WT) investor relations material

Executive summary

• Achieved record global AUM of $137.2 billion as of September 30, 2025, with all business lines at new highs and net inflows of $2.2 billion for the quarter and $8.8 billion year-to-date, driven by market appreciation and broad-based product contributions.

• Completed the acquisition of Ceres Partners, expanding into private assets, farmland, and adjacent opportunities like solar and AI data infrastructure, for $275 million in cash and up to $225 million in earnout.

• Digital AUM grew rapidly to $600 million, with significant growth in tokenized and blockchain-enabled funds, and expanded digital asset platform adoption.

• Declared a $0.03 quarterly dividend and repurchased approximately 6.8 million shares for $90 million, with share repurchase authorization increased to $250 million.

• Launched new digital and thematic funds, expanded product availability in Europe and the UK, and received industry recognition for innovation and inclusion.

Financial highlights

• Q3 2025 adjusted revenues were $125.6 million, up 11.5% sequentially and 14.7% year-over-year, driven by higher average AUM and increased European product revenues.

• Adjusted net income was $34.5 million, or $0.23 per share, with net income of $19.7 million, impacted by a $13 million loss on extinguishment of convertible notes.

• Gross margin rose to 82.2% in Q3, with Q4 guidance at 83% and full-year 2025 projected at approximately 82%.

• Q3 adjusted operating margin reached 38.3%, up from 32.5% in Q2, with operating income of $45.7 million.

• Issued $475 million in convertible notes to fund the Ceres acquisition and repurchased $24 million of 2028 notes.

Outlook and guidance

• Full-year gross margin expected to be about 82%, with Q4 guidance at 83% including Ceres impact.

• Q4 interest expense projected at $11 million, up from $8 million in Q3 due to convertible note issuance; 2025 interest expense estimated at $31 million.

• Weighted average diluted shares for Q4 2025 estimated at 146–149 million, reflecting share repurchases and convertible note impact.

• Ceres' annualized operating expenses estimated at $15 million, with $40 million in trailing 12-month revenues as a baseline.

• Compensation to revenue ratio for 2025 estimated at 28–30%, with discretionary spending expected between $68–72 million, excluding acquisition-related costs.