WisdomTree NYSE: WT reported record assets under management and broad-based net inflows during its fiscal first quarter 2026 earnings call, while detailing the closing of its Atlantic House acquisition and expanding its outlook for 2026 expenses and margins.
Record AUM and broad-based inflows
Chief Financial Officer Bryan Edmiston said assets under management reached a record $152.6 billion, the company’s fifth consecutive quarter of record AUM, up 6% from year-end on net inflows and market appreciation. Edmiston said growth was “broad-based” with record AUM across WisdomTree’s U.S., European and digital asset platforms.
WisdomTree generated $5.9 billion of global net inflows, which Edmiston characterized as a 17% annualized organic growth rate. By channel, he cited $3.1 billion of inflows in Europe, $2.6 billion in the U.S., $100 million in digital assets, and $75 million in private assets.
Jarrett Lilien, President and COO, said the quality and breadth of flows stood out, with inflows across “seven of our eight major product categories,” which he said supported the view that WisdomTree is “increasingly winning as a diversified platform rather than tied to any single product, theme, or market call.” He added that March reflected a “bear market playbook” as clients allocated to both defensive and risk-taking exposures amid volatility, citing products such as USFR as a “portfolio ballast.”
Quarterly financial results and revenue drivers
Edmiston reported $159.5 million of revenue for the quarter, up 8% from the fourth quarter and up 48% from the prior-year quarter, attributing the gains to higher AUM and growth in “other revenues.” Other revenues totaled $16.4 million, up from nearly $13 million in the prior quarter, reflecting higher AUM and elevated trading activity in European products.
Compared with the prior-year quarter, Edmiston said results also included approximately $8 million of revenue contribution from Ceres, comprised of $5.2 million of management fees and $3 million of performance fees. He said the performance fees reflected seasonality tied to performance-based fee structures and “limited activity in the solar portfolio during the quarter.”
Edmiston said adjusted operating margin expanded 770 basis points versus the prior-year quarter. Adjusted net income was $40.6 million, or $0.27 per share. He noted adjusted net income excludes a loss on extinguishment of convertible notes related to the repurchase of a significant portion of the company’s 2026 and 2029 maturities.
In response to an analyst question about other revenues, Edmiston said the quarter-over-quarter increase was driven by higher AUM and transaction fees “largely tied to our European commodity products.” He said roughly 40% of the other revenue line item is transaction-fee related and 60% is AUM-based, creating variability tied to market volatility.
Atlantic House acquisition closes; revenue yield focus
Edmiston said WisdomTree completed its acquisition of Atlantic House, a U.K.-based asset manager with approximately $4 billion in AUM. He said Atlantic House generates 53 basis points in advisory fees from defined outcome and derivatives-driven strategies, along with “complementary revenues,” including 25 basis points on $1.5 billion of assets under advisement in managed models and structuring fees from bespoke investment solutions that totaled $13 million during 2025. He said these revenue streams imply an overall revenue yield of about 95 basis points.
Edmiston said the purchase price was $200 million, financed through recently issued convertible notes. He said the transaction is expected to increase WisdomTree’s overall revenue yield by “almost 2 basis points,” is “modestly accretive,” and is intended to enhance product capabilities and distribution across Europe.
Chief Executive Officer Jonathan Steinberg said the company views M&A as “a complement to organic growth, not the core strategy,” and described criteria focused on differentiated capabilities, higher revenue yields, stronger margin characteristics, and accelerating growth. Steinberg said Atlantic House expands derivatives capability and “outcome-oriented solutions” and helps extend WisdomTree’s Portfolio Solutions footprint into the U.K.
Steinberg also framed the deal in terms of revenue yield, stating that Atlantic House’s approximately 95 basis points of revenue yield is expected to lift firm-wide revenue yield by about 2 basis points “to roughly 43.5 basis points.” On a question about how to model the acquisition, Edmiston suggested investors consider component parts rather than a single yield figure, while also noting Atlantic House’s models and structuring revenue will flow through the “other revenues” line. He said prorating Atlantic House’s 2025 revenue contribution would imply “about $11 million of incremental revenue” from the closing date.
Steinberg added that Atlantic House has delivered “over $20 billion of structured solutions” across “more than 120 clients,” and he said the company believes the bespoke defined outcome capability has broader European and U.S. appeal, with expectations for growth in the other revenue line not only in 2026 but “significantly in 2027.”
Digital asset updates: tokenized money market fund and partnerships
On the digital asset platform, Lilien said WisdomTree generated $98 million of inflows in the quarter, with digital AUM reaching a record $867 million, driven primarily by the tokenized money market fund.
Will Peck, Head of Digital Assets, highlighted positioning for WisdomTree’s tokenized money market fund, noting that WTGXX is “a 1940 Act fund sold by prospectus in the U.S.” and available to U.S. retail and businesses as well as global businesses. Peck said WisdomTree received exemptive relief from the SEC to allow the fund to trade via broker-dealer “in the secondary market on an intraday 24/7 basis,” which he called “truly unique functionality.”
Peck discussed WisdomTree’s partnership with StableC, describing it as a startup led by former Block employees focused on payments use cases for small and mid-sized U.S. businesses. He said access to a tokenized money market fund yielding “3.5% today” can be an improvement over “non-existent savings accounts paying essentially nothing.”
In additional commentary on demand, Peck said AUM in the fund increased by another $50 million in April after quarter-end, and he said most of the AUM (about “90–95%”) comes through WisdomTree Connect. He described use cases including stablecoin issuers holding WTGXX as a reserve asset, treasury management for businesses, and using WTGXX as a yield-bearing form of collateral with “collateral mobility.” Peck also said WisdomTree has built a vertically integrated digital stack and is in discussions to potentially license elements of its technology to other firms.
Updated guidance and capital structure actions
Edmiston provided updates to forward-looking guidance, including the impact of Atlantic House on the expense base:
- Compensation-to-revenue ratio guidance maintained at 26%–28%, with expectations to trend toward the upper half of the range due to Atlantic House’s modestly higher compensation ratio.
- Gross margin guidance increased by 1 percentage point to 83%–84%, reflecting operating leverage and the acquisition.
- Discretionary spending guidance increased by $3 million to include Atlantic House.
- Third-party distribution expense expected at $20 million–$24 million, driven by higher AUM and elevated trading activity, primarily in Europe.
- Interest expense forecast at approximately $53 million for the year, reflecting anticipated retirement of remaining 2026 and 2029 notes in the summer; quarterly interest expense expected around $15 million in Q2 and about $14 million in Q3 and Q4.
- Interest income guidance raised by $2 million to $10 million for the year based on interest-earning assets and the rate environment.
- Adjusted tax rate expected at approximately 24%–25% (previously 24%), reflecting Atlantic House.
Edmiston also discussed dilution expectations tied to refinancing. He said weighted average diluted shares were 152 million in the first quarter, expected to rise to 155 million–158 million in the second quarter due to shares issued in connection with the convertible note refinancing, and then decline to about 154 million in the second half following anticipated cash settlement and retirement of remaining notes.
In closing remarks, Steinberg said WisdomTree entered its “next chapter from a position of strength,” highlighting recent momentum, investments in tokenization and private assets, and the integration of Ceres and Atlantic House beginning in the second quarter.
About WisdomTree NYSE: WT
WisdomTree Investments, Inc NYSE: WT is a U.S.-based asset management firm specializing in exchange-traded funds (ETFs) and exchange-traded products (ETPs). Founded in 2006 by Jonathan Steinberg and headquartered in New York City, WisdomTree has developed a reputation for pioneering smart-beta and fundamentally weighted indexing approaches. The company designs strategies that seek to enhance returns and reduce volatility by weighting constituents based on dividends, earnings or other financial metrics rather than relying solely on market capitalization.
WisdomTree offers a broad suite of investment products covering equities, fixed income, currencies, commodities and digital assets.
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