WisdomTree (WT) Q4 2025 earnings summary

Executive summary

• Achieved record assets under management (AUM) of $144.5 billion at year-end 2025, up 5% sequentially and over 30% year-over-year, with $8.5 billion in net inflows and 8% organic growth, rising to $160.8 billion by January 2026.

• Completed the Ceres Partners acquisition, expanding AUM into U.S. farmland and private assets, diversifying revenue, and increasing operating margins by over 200 basis points.

• Significant expansion in digital assets, with tokenized AUM reaching $770 million, a 25x increase year-over-year, and digital platform scaling to 29 institutions and 3,500 wallets.

• European-listed products AUM rose from $30.7 billion to $53.5 billion, led by strong inflows into UCITS, commodity products, and thematics.

• Expanded product offerings with over 30 new strategies launched, including rare earths, quantum computing, and nuclear energy, and received multiple industry awards.

Financial highlights

• Adjusted revenues for Q4 were $147.4 million, up 17% sequentially and 33% year-over-year, with full-year adjusted revenues at $493.8 million, driven by higher average AUM and Ceres performance fees.

• Adjusted net income for Q4 was $41.2 million, or $0.29 per share, with full-year net income at $109.1 million.

• Adjusted operating margin expanded to 36.5% for 2025, up nearly 300 basis points year-over-year.

• Gross margin guidance for 2026 is 82%-83%, up from 81.9% in 2025.

• Compensation to revenue ratio guidance for 2026 is 26%-28%, down from prior guidance, reflecting operating leverage.

Outlook and guidance

• Entering 2026 with global AUM of $160.8 billion, up 11% from year-end, and nearly $2 billion in net inflows.

• Discretionary spending for 2026 is forecasted at $80-$86 million, mainly for marketing and sales to support growth.

• Interest expense expected to be $40 million in 2026, with a decline in the second half as convertible notes mature.

• Adjusted tax rate anticipated at 24%, with diluted shares ranging from 152-157 million due to convertible notes.

• Management expects continued growth from digital assets, private markets, and expanded model portfolios.