WisdomTree, Inc. (WT) Earnings

Management highlights

• Assets under management at record $152.6 billion, fifth consecutive quarter, up 6% from year-end, driven by net inflows and market appreciation, broad-based across US, European, and digital asset platforms. • Generated $5.9 billion net inflows globally, 17% annualized organic growth rate, with inflows across regions and product categories, flows skewed toward higher fee products. • Completed acquisition of Atlantic House, adding ~$4 billion AUM, generating 53 basis points advisory fees and complementary revenues, expected to increase revenue yield and be modestly accretive. • Revenues up 8% from fourth quarter and 48% from prior year quarter, driven by higher AUM and other revenues. • Adjusted operating margin expanded 770 basis points, adjusted net income $40.6 million or 27 cents per share. • Record AUM and strong organic growth underscore business strength, disciplined strategic expansion positions well for long-term shareholder value. • Quarter marked by steady, broad-based execution, strong net inflows, resilient AUM, inflows across seven major product categories, clients engaging across geographies, asset classes, use cases. • Key drivers of stability and growth: usage platform with over 3.4 billion inflows YTD, portfolio solutions gaining traction, digital assets generating $98 million inflows in Q1 with AUM at record $867 million. • Measured strategic progress with Cirrus now part of base business and Atlantic House acquisition closing, consistent with capital allocation and creating long-term growth. • Atlantic House acquisition fits logic of diversifying business, enhancing economics, accelerating growth, bringing differentiated products and capabilities, higher revenue yields, and scalable expertise.

Guidance

• Compensation to revenue ratio 26 to 28% remains unchanged, expected to trend toward upper half with Atlantic House addition. • Gross margin guidance increased by one percentage point, ranging from 83 to 84%. • Discretionary spending guidance increased by $3 million to reflect Atlantic House. • Third-party distribution expense expected to range from $20 to $24 million. • Interest expenses forecasted to be approximately $53 million for the year, quarterly interest expenses expected to be ~$15 million in Q2, declining to ~$14 million in Q3 and Q4. • Interest income guidance increased by $2 million to $10 million for the year. • Adjusted tax rate expected to be approximately 24 to 25%. • Weighted average diluted shares expected to increase to approximately 155 to 158 million in Q2, then decline to ~$154 million in second half of year.

Segment performance

Assets under management reached a record $152.6 billion, fifth consecutive quarter of record AUM, up 6% from year-end. Generated $5.9 billion of net inflows globally, 17% annualized organic growth rate. Revenues were $159.5 million, up 8% from fourth quarter and 48% from prior year quarter. Adjusted operating margin expanded 770 basis points. Atlantic House acquisition added ~$4 billion in AUM, generating 53 basis points in advisory fees, 25 basis points on 1.5 billion of AUA in managed models, and $13 million in structuring fees in 2025, overall revenue yield ~95 basis points.

Analyst Q&A

• Q: Could you talk about the advantages of WisdomTree's tokenized money market fund compared to other non-tokenized yield-generating options with respect to your new partnership with StableC?

  A: Our tokenized Money Market Fund is a 1940 Act fund sold by prospectus in the U.S., available to U.S. retail, U.S. businesses, and global businesses. Got exemptive relief from SEC to trade via broker-dealer in secondary market intraday, 24-7, unique functionality. Stable C is a startup focused on bringing payments use cases to small and medium-sized businesses, our fund yielding 3.5% is better than non-existent savings accounts, showing new use cases and distribution relationships.

• Q: Are there opportunities to generate higher fees on model portfolios as wisdom pre-gain scale in the advisor relationships? And could you provide some detail on the overall relationships dynamics there, especially given the additional model AUM from Atlantic House?

  A: Model opportunity brings stickier assets, deepens relationships, leads to higher revenue capture. Atlantic House addition brings higher revenue capture, overall these things lead to higher quality flows with tilt towards higher revenue capture and better earnings quality.

• Q: We saw other revenues were strong in the quarter. Could you talk about what contributed to that and if there's going to be additional growth there?

  A: Other revenues $16 million this quarter vs $13 million last quarter, driven by higher AUM and transaction fees tied to European commodity products. If volatility persists, similar growth possible. 40% transaction fee element, 60% AUM-based. Atlantic House generated ~$16 million in 2025 from models and product structuring, prorated to ~$11 million incremental revenue, and they have established business with over $20 billion of structured solutions delivered across more than 120 clients, believe other revenue line will grow significantly.

• Q: On page four, when you mentioned your 95 basis point yield for Atlantic House. Is that the right way to look at revenues going forward? Or do you think it should be, or should I really look at some of the constituent parts like the models under advisement, you know, yield and the structuring fees? Like, should this be really modeled out on a sort of a more granular level? Or is the 95 pretty good way to think about it going forward?

  A: Think about business in revenue yield terms, focused on growing revenue yield. From modeling standpoint, not just one overall revenue yield, but look at component parts: advisory fee line grows based on AUM and revenue capture, Cirrus has management fees at 1% of AUM and performance fee as variable element, other revenue line driven by activity in Europe and commodity products, Atlantic House will factor into that line item going forward.

• Q: When we think about Atlantic House, will that show up in, you know, on your IR page you have your daily AUMs. Is that something that at some point in the future we'll start to see AUM from the Atlantic House contributing to those? Or is it something like Ceres where it's sort of treated a little bit differently than your other ETPs?

  A: Should be having that AUM as part of what we're reporting in the not-too-distant future, need a little bit of time to get integrated. Also, Atlantic House has UCEDD funds and derivative solutions business, plan to be part of global synergies, extending franchise to UCEDD ETFs and U.S. market, with big product roadmap in defined outcome and targeted return strategies.

• Q: With your not brand new but newer digital money market fund, WTG XX, you know, that is growing like a weed, but it seems like there's a lot of demand for that product. I wanted to understand a little bit better how you're marketing that. What's kind of that communication strategy just to get the word out? Will, that's you, obviously, but touch on its use cases as well, because it's being used differently in the world of on-chain than just how it's being used in the mutual fund format.

  A: Continuing to grow strongly, distribute to U.S. retail through WisdomTree Prime, global businesses and platforms through WisdomTree Connect. 90-95% of AUM through WisdomTree Connect platform, serving use cases like stablecoin issuers using as reserve asset, treasury management for stablecoin native businesses, collateral mobility.

• Q: When talking about Atlantic House and those funds, you had mentioned the broad European appeal, U.S. appeal. How should we think about you rolling out to those two additional markets?

  A: Will launch significant number of new funds in next 18-24 months dedicated to acquired derivative solutions capabilities, focus on defined outcome and targeted return strategies in many asset classes, with expense ratio between 55 and 85 basis points, excited to put Atlantic House team to work, strong product roadmap planned.

• Q: Can you just kind of walk through the priorities there on the digital asset side. I mean, I think for a long time it was a bit more of a consumer-focused effort. It seems like a lot of the momentum now is on the institutional side. And then there's also been talk about, you know, at times about white labeling. So I wondered if you could just kind of rank those for us. And then also the Stable Seed Partnership is nice to see. Do you see kind of more opportunity for sort of distribution partnerships out there similar to that?

  A: Don't really rank them, focus on growing AUM and number of people using platform, servicing retail beyond WisdomTree Prime, meeting people where they are economically indifferent, focused on getting people to use products and services. Unique about digital assets is servicing various wallet holders, vertical integration with built capabilities, opening optionality to license technology stack.

• Q: I want to follow up there on the digital asset side. Will, I wondered if you could just kind of walk through the priorities there. I mean, I think for a long time it was a bit more of a consumer-focused effort. It seems like a lot of the momentum now is on the institutional side. And then there's also been talk about, you know, at times about white labeling. So I wondered if you could just kind of rank those for us. And then also the Stable Seed Partnership is nice to see. Do you see kind of more opportunity for sort of distribution partnerships out there similar to that?

  A: Don't rank, focus on growing AUM and platform usage, servicing retail beyond WisdomTree Prime, meeting people where they are, vertical integration, opening optionality to license technology stack.

• Q: You mentioned kind of the lower seasonal performance feeds with Sears, but it looked like the inflows were pretty strong this quarter. Just curious if you could unpack that a little bit. I mean, is that just blocking and tackling by the Sears team, or how much of that is maybe your distribution capability starting to have an impact there?

  A: Combination, closure of first fund accelerated flow into quarter, focused on launching second fund, flow variability expected, long-term target $750 million over five years, performance fee had seasonality with lower activity this quarter but no change in earnings power or guidance, framework remains consistent with AUM, flow assumption, return on average, and participation rate, with upside for solar and data center opportunities.