WisdomTree (WT) Q1 2026 earnings summary

Executive summary

• Achieved record assets under management (AUM) of $152.6 billion as of March 31, 2026, up 6% from year-end, driven by $5.9 billion in net inflows and market appreciation, with broad-based growth across US, Europe, and digital platforms.

• Closed the Atlantic House acquisition, adding $4 billion in AUM, expanding UK market reach, and enhancing product and revenue diversification.

• Demonstrated resilience and momentum in a volatile market, with inflows across seven of eight major product categories and continued business diversification.

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

• Reported a GAAP net loss of $23.1 million, primarily due to a $62.3 million loss on extinguishment of convertible notes; adjusted net income was $40.6 million.

Financial highlights

• Q1 2026 operating revenues rose 48% year-over-year to $159.5 million, driven by higher AUM and increased trading activity.

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

• Adjusted net income was $40.6 million or $0.27 per share, excluding a loss on extinguishment of convertible notes.

• Gross margin reached 84.4% in Q1 2026, up from 80.8% in Q1 2025.

• Operating expenses increased due to higher compensation, acquisition-related costs, and third-party distribution fees.

Outlook and guidance

• Compensation to revenue ratio expected at 26%-28%, trending toward the upper half due to Atlantic House; gross margin guidance raised to 83%-84%.

• Discretionary spending guidance increased to $83–89 million to reflect Atlantic House inclusion.

• Interest expense forecasted at $53 million for the year; adjusted tax rate expected at 24%-25%.

• Weighted average diluted shares to rise to 155-158 million in Q2, then decline to ~152-154 million in H2 after note retirements.

• Management expects continued growth, margin expansion, and increasing earnings power, supported by organic momentum and strategic acquisitions.