WisdomTree (WT) Q1 2025 earnings summary

Executive summary

• Achieved record AUM of $115.8 billion as of March 31, 2025, up 5.5% from the prior quarter, with $3.0 billion in net inflows and over 6% growth year to date, driven by broad-based contributions across products and geographies.

• Launched the WisdomTree European Defense Fund, which attracted $770 million in Q1 and surpassed $1.4 billion in net inflows year to date, and expanded digital assets with $132 million in tokenized AUM and over $100 million in flows.

• U.S. and European listed ETPs both saw AUM increases, with U.S. generating $1.8 billion and Europe $1.1 billion in inflows, and digital division contributing $100 million.

• Strategic focus on diversification, technology, and AI deployment has provided resilience and enhanced efficiency amid global market volatility.

• Headcount increased to 315, reflecting investment in growth and operations.

Financial highlights

• Q1 2025 revenues were $108.1 million, up 11.6% year-over-year but down slightly sequentially due to fewer trading days and lower average fee capture.

• Net income for Q1 2025 was $24.6 million, with adjusted net income of $23.0 million and adjusted EPS of $0.16.

• Gross margin for Q1 2025 was 80.8%, with adjusted operating income margin at 31.6%.

• Operating expenses grew 7.3% to $73.9 million, mainly due to higher stock-based compensation, headcount, and distribution fees.

• Quarterly dividend of $0.03 per share declared, payable May 28, 2025.

Outlook and guidance

• 2025 guidance remains largely unchanged, with compensation-to-revenue ratio expected at 28–30% and discretionary spending at $68–72 million.

• Gross margin for the full year is expected at 81–82%, likely at the lower end given current AUM levels.

• Interest income guidance raised to $8 million, and diluted share forecast updated to 147–149 million.

• Expect to enable on-chain transfers for a subset of users in the coming months, with broader digital asset functionality targeted for September.

• Management is monitoring market volatility and may scale back planned spending if adverse conditions persist.