What WisdomTree (WT) Said on Its Q3 Earnings Call

Key Points

• WisdomTree reached record assets under management of $171 billion in Q3 2026, supported by $4.6 billion in net inflows across its U.S., European and onchain businesses.
• Third-quarter revenue rose 43% year over year to $179.4 million, while adjusted operating margins expanded to 43.1%. The company also retired $18 million of convertible notes and repurchased approximately $11 million of stock.
• Management plans to expand into private-market ETF allocations by 2027 and continues investing in its tokenization platform, including tokenized money-market funds, a proposed tokenized ETF and stablecoin-related infrastructure.

WisdomTree NYSE: WT reported record assets under management and broad-based inflows for the third quarter of 2026, while executives outlined plans to expand the firm’s private-markets offerings and build its tokenization platform.

Assets under management reached a record $171 billion at quarter-end, up 5% from June 30 and marking the company’s seventh consecutive quarter of record AUM. Chief Financial Officer Bryan Edmiston said the increase reflected strong net inflows and favorable market conditions, with record asset levels across the company’s U.S., European and onchain businesses.

WisdomTree generated $4.6 billion in net inflows during the quarter, including $2.4 billion in the U.S., $1.7 billion in Europe and $500 million in onchain products. Year-to-date net inflows totaled $13.6 billion, representing an annualized organic growth rate of about 13%, according to Edmiston.

Revenue, margins and capital management

Third-quarter revenue was $179.4 million, up 1% sequentially and 43% from the prior-year quarter. The company attributed the sequential increase to higher AUM, partly offset by lower transaction fees from European exchange-traded products and lower performance fees.

Revenue increased 49% year to date, driven by higher AUM, elevated trading activity compared with prior periods, and contributions from the Ceres and Atlantic House acquisitions, Edmiston said.

Adjusted operating margin was 43.1% in the quarter and 41.8% year to date, representing 750 basis points of year-over-year expansion for the year-to-date period. Adjusted net income was $49.5 million, or $0.32 per share.

The company also retired the remaining $18 million principal amount of its 2029 convertible notes using cash and repurchased about $11 million of common stock, or roughly 500,000 shares, during the quarter.

WisdomTree updated its full-year discretionary-spending guidance to a range of $83 million to $87 million, reducing the high end of its prior range by $2 million. It narrowed third-party distribution expense guidance to $21 million to $23 million after recognizing $16.5 million year to date, and increased interest-income guidance by $1 million to $9 million.

For the fourth quarter, the company expects diluted shares of 154 million to 160 million, including incremental shares related to convertible notes, assuming an average stock price between $21 and $24.

Acquisitions, model portfolios and private-market plans

President and Chief Operating Officer Jarrett Lilien said flow generation remained diversified across products and regions. He noted that, over the past several years, an average of nine of the company’s 15 largest flow-generating funds in a quarter were not among the top 15 in the preceding quarter.

WisdomTree’s portfolio-solutions business continued to expand, with model assets under administration approaching $10 billion. Lilien said the company is adding advisors and broadening relationships with existing users, contributing to what management characterized as stickier assets and more sustainable organic flows.

The company has launched its first two European products using capabilities acquired through Atlantic House and plans to introduce 15 to 20 products over the next 18 to 24 months. Lilien said WisdomTree sees an opportunity to grow liquid-alternatives offerings in Europe and the U.S.

At Ceres, WisdomTree launched Fund II in mid-June. Lilien said the business had a pipeline of more than $100 million of potential demand from over 100 investors in mid- to late-stage discussions.

Chief Executive Officer Jonathan Steinberg said WisdomTree expects in 2027 to bring private-market allocations into an ETF structure. He said the firm is developing strategies that would remain predominantly liquid while incorporating limited allocations to private assets, including potentially farmland and shares of private companies.

Steinberg said the company expects sourcing to involve a combination of assets it owns outright, such as Ceres, and partnership relationships for venture-related private-company exposure. He did not provide product mechanics or more specific launch timing.

Onchain business remains in investment mode

WisdomTree’s onchain business contributed $500 million of net inflows in the quarter. Will Peck, head of WisdomTree Onchain, said the company has consolidated its digital initiatives under the WisdomTree Onchain name, encompassing the WisdomTree Prime retail app, WisdomTree Connect institutional platform and the developing Onchain Markets secondary-trading initiative.

Peck said the company has built its own tokenization infrastructure, onchain transfer agent, broker-dealer and regulated trust company. He highlighted WTGXX, the company’s tokenized money market fund, which has added around-the-clock trading and continuous interest accrual.

Management identified stablecoin reserves, cash management and collateral mobility as major use cases for tokenized money market funds. Peck said WisdomTree has also submitted a proposal to the Securities and Exchange Commission for a tokenized ETF.

The company recently announced distribution and infrastructure relationships with BitGo, MoonPay, Stable Sea, HashKey, Marketnode and Synthesys. WisdomTree also joined a consortium of 21 global financial institutions developing a regulated U.S. dollar stablecoin.

Peck said the onchain operation remains in investment mode and that WisdomTree does not separately disclose its financial results. Steinberg said the company’s guidance implies an operating loss in the mid-$20 million range for the business.

Management identified potential future monetization from fund expense ratios, broker-dealer services, tokenization services for other firms and possible net interest income related to stablecoin activity. Executives said they expect to provide more detail on broker-dealer-related revenue opportunities in 2027 and beyond.

Lilien also said WisdomTree has tracked more than 1,500 hours saved per month through measured artificial-intelligence initiatives in 2026, which he said was equivalent to at least 10 full-time employees. He said the company is using AI to improve productivity rather than as a headcount-reduction effort.

About WisdomTree (NYSE:WT)

WisdomTree, Inc is a financial services company that sponsors and manages exchange-traded funds (ETFs) and exchange-traded products. Its offerings provide access to equities, fixed income, currencies, commodities, alternatives and other asset classes through rules-based investment strategies designed for individual and institutional investors.

The company also provides model portfolios, separately managed accounts and other investment solutions for financial professionals. In addition, WisdomTree has developed products and capabilities related to digital assets and blockchain-enabled financial services, subject to applicable regulatory requirements.

Founded in 1985 and formerly known as WisdomTree Investments, the company launched its first ETFs in 2006 and became known for dividend-focused and fundamentally weighted strategies.

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