WisdomTree Announces First Quarter 2025 Results
Record AUM of $115.8 Billion
11% Annualized Organic Growth Rate Across All Products
Diluted Earnings Per Share of $0.17 ($0.16, as Adjusted)
NEW YORK--(BUSINESS WIRE)--May 02, 2025--
WisdomTree, Inc. $(WT)$, a global financial innovator, today reported financial results for the first quarter of 2025.
$24.6 million of net income ($23.0(1) million of net income, as adjusted). See "Non-GAAP Financial Measurements" for additional information.
$115.8 billion of ending AUM, an increase of 5.5% from the prior quarter arising from net inflows and market appreciation.
$3.0 billion of net inflows, primarily driven by inflows into our fixed income, U.S. equity and international developed equity products, partly offset by outflows from our emerging market equity products.
0.35% average advisory fee, a 1 basis point decrease from the prior quarter due to a change in product mix.
0.38% adjusted revenue yield(2) , a 1 basis point decrease from the prior quarter due to a change in product mix.
$108.1 million of operating revenues, a decrease of 2.4% from the prior quarter due to two fewer trading days during the current quarter and a lower average advisory fee, partly offset by higher average AUM.
80.8% gross margin(1) , a 1.5 point increase from the prior quarter due to lower fund management and administration expenses.
31.6% operating income margin, a 0.1 point decrease compared to our operating income margin of 31.7% in the prior quarter primarily due to lower revenues and seasonally higher compensation expense.
$0.03 quarterly dividend declared, payable on May 28, 2025 to stockholders of record as of the close of business on May 14, 2025.
Update from Jarrett Lilien, WisdomTree COO and President
"We are executing exceptionally well -- delivering over $3 billion of net inflows in Q1, an 11% annualized organic growth rate, and accelerating momentum across key areas. Two standout examples are the recently launched WisdomTree Europe Defence UCITS ETF $(WDEF.UK)$, which has quickly surpassed $1.4 billion in assets, and our model portfolios business, which is tracking toward our goals with nearly 20% annualized organic growth." ------------------------------------------------------------------------------
Update from Jonathan Steinberg, WisdomTree CEO
"With over $100 million of inflows into our tokenized products year-to-date and the most extensive suite of tokenized real-world assets in the market, WisdomTree is proving its leadership in digital asset innovation. As we expand AI across our global platform and digital adoption accelerates, we are positioned to drive lasting value and lead the future of asset management." ------------------------------------------------------------------------------
OPERATING AND FINANCIAL HIGHLIGHTS
Three Months Ended
----------------------------------------------------------
Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
2025 2024 2024 2024 2024
---------- ---------- ---------- ---------- ----------
Consolidated
Operating
Highlights ($ in
billions):
-------------------
AUM--end of period $115.8 $109.8 $112.6 $109.7 $107.2
Net
inflows/(outflows) $ 3.0 $ (0.3) $ (2.4) $ 0.3 $ 2.0
Average AUM $114.6 $112.3 $110.4 $108.5 $102.5
Average advisory
fee 0.35% 0.36% 0.37% 0.37% 0.36%
Adjusted revenue
yield(2) 0.38% 0.39% 0.39% 0.40% 0.38%
Consolidated
Financial
Highlights ($ in
millions, except
per share
amounts):
-------------------
Operating revenues $108.1 $110.7 $113.2 $107.0 $ 96.8
Net income/(loss) $ 24.6 $ 27.3 $ (4.5) $ 21.8 $ 22.1
Diluted
earnings/(loss)
per share $ 0.17 $ 0.18 $(0.13) $ 0.13 $ 0.13
Operating income
margin 31.6% 31.7% 36.0% 31.3% 28.9%
As Adjusted
(Non-GAAP(1) ):
-------------------
Operating revenues,
as adjusted $108.1 $110.5 $109.5 $107.0 $ 96.4
Gross margin 80.8% 79.3% 80.8% 81.2% 79.3%
Net income, as
adjusted $ 23.0 $ 25.3 $ 28.8 $ 27.1 $ 20.3
Diluted earnings
per share, as
adjusted $ 0.16 $ 0.17 $ 0.18 $ 0.16 $ 0.12
Operating income
margin, as
adjusted 31.6% 31.7% 37.3% 35.3% 29.7%
RECENT BUSINESS DEVELOPMENTS
Company News In February 2025, the WisdomTree Cloud Computing UCITS ETF $(WCLD.UK)$ was named the Best Thematic and Sector ETF at Le Revenu Awards 2025 in France. In March 2025, Alexis Marinof was appointed as CEO, Europe, reinforcing the company's commitment to the European market and strengthening our regional leadership; we were named the Best Crypto Linked ETF Issuer ($100m-$1bn), Best Emerging Markets Equity ETF Issuer ($100m-$1bn) and Best Leveraged & Inverse ETF Issuer ($1bn+) at the 2025 ETF Express European ETF Awards; the WisdomTree Emerging Market SmallCap Dividend UCITS ETF $(DGSE.UK)$ won the ETF Equity Emerging Markets category at the Mountain View Fund Awards 2025 in Germany; and the WisdomTree Artificial Intelligence UCITS ETF was named the Best Artificial Intelligence ETF at the Money Mate Awards 2025 in Italy. In April 2025, WisdomTree Connect$(TM)$ began offering 13 tokenized funds on additional blockchains beyond Ethereum, including Arbitrum, Avalanche, Base and Optimism; and we were named #58 on Fortune's 2025 list of America's Most Innovative Companies, #2 in Process Innovation and #3 in Culture. Product News In February 2025, we launched the WisdomTree Global Quality Growth UCITS ETF $(WGRO)$ and the WisdomTree Physical CoinDesk 20 (WCRP). In March 2025, we launched the WisdomTree Europe Defence UCITS ETF (WDEF), the world's first ETF dedicated to the European defence industry, on the London Stock Exchange, Borsa Italiana and Börse Xetra. WDEF also cross-listed on Euronext Paris; and we launched the WisdomTree Uranium and Nuclear Energy UCITS ETF $(NCLR.UK)$ on the London Stock Exchange, Borsa Italiana and Börse Xetra. In April 2025, we launched the following products:WisdomTree Core Laddered Municipal Fund (WTMU) and the WisdomTree High Income Laddered Municipal Fund (WTMY) on the Nasdaq; WisdomTree STOXX Europe Aerospace & Defence 3x Daily Leveraged (3EDF) and WisdomTree STOXX Europe Aerospace & Defence 3x Daily Short (3EDS) ETPs on the London Stock Exchange, Borsa Italiana and Börse Xetra; WisdomTree Nasdaq 100 (WNAS) and WisdomTree Russell 2000 (WRTY) on Borsa Italiana; and WisdomTree Commodity Carry ETC (CRRY) on the London Stock Exchange, Börse Xetra and Borsa Italiana. Also in April 2025,we changed the name and ticker of the WisdomTree PutWrite Strategy Fund $(PUTW.UK)$ to the WisdomTree Equity Premium Income Fund $(WTPI)$; WDEF was registered for sale in Norway and surpassed $1 billion of net flows following its March 2025 launch; the WisdomTree India Hedged Equity Fund $(INDH)$ won the award for Best New International Equity ETF at the ETF.com Awards 2025; and we cross-listed 6 ETFs on SIX, the Swiss stock exchange, including WDEF. ------------------------------------------------------------------------------
WISDOMTREE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
---------------------------------------------------------------
Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
2025 2024 2024 2024 2024
--------- --------- ------------- ------------ ------------
Operating Revenues:
Advisory fees $ 99,549 $102,264 $ 101,659 $ 98,938 $ 92,501
Other revenues 8,533 8,433 11,509 8,096 4,337
Total
revenues 108,082 110,697 113,168 107,034 96,838
Operating Expenses:
Compensation and
benefits 33,788 30,032 29,405 30,790 31,054
Fund management
and
administration 20,714 22,858 21,004 20,139 19,962
Marketing and
advertising 4,813 6,117 4,897 5,110 4,408
Sales and
business
development 4,137 4,101 3,465 3,640 3,611
Professional
fees 2,782 4,559 6,315 6,594 3,630
Occupancy,
communications
and equipment 1,482 1,423 1,397 1,314 1,210
Depreciation and
amortization 540 504 447 418 383
Third-party
distribution
fees 3,112 3,161 2,983 2,687 2,307
Other 2,552 2,902 2,463 2,831 2,323
Total
operating
expenses 73,920 75,657 72,376 73,523 68,888
Operating income 34,162 35,040 40,792 33,511 27,950
Other
Income/(Expenses):
Interest expense (5,441) (5,616) (5,027) (4,140) (4,128)
Interest income 1,897 2,147 1,795 1,438 1,398
Loss on
extinguishment
of convertible
notes -- -- (30,632) -- --
Other losses and
gains, net (250) 2,627 (3,062) (1,283) 2,592
Income before
income taxes 30,368 34,198 3,866 29,526 27,812
Income tax expense 5,739 6,890 8,351 7,767 5,701 Net income/(loss) $ 24,629 $ 27,308 $ (4,485) $ 21,759 $ 22,111 Earnings/(loss) per share--basic $ 0.17 $ 0.19 $(0.13)(3 () $ 0.13(3 () $ 0.14(3 () Earnings/(loss) per share--diluted $ 0.17 $ 0.18 $(0.13)(3 () $ 0.13 $ 0.13 Weighted average common shares--basic 142,580 141,275 143,929 146,896 146,464 Weighted average common shares--diluted 146,545 147,612 143,929 166,359 165,268 As Adjusted (Non-GAAP(1) ) ------------------- --------- --------- ------------- ------------ ------------ Total revenues $108,082 $110,505 $ 109,507 $107,034 $ 96,385 Total operating expenses $ 73,920 $ 75,465 $ 68,715 $ 69,252 $ 67,740 Operating income $ 34,162 $ 35,040 $ 40,792 $ 37,782 $ 28,645 Income before income taxes $ 30,947 $ 33,033 $ 37,187 $ 36,083 $ 26,987 Income tax expense $ 7,933 $ 7,753 $ 9,049 $ 9,008 $ 6,731 Net income $ 23,014 $ 25,280 $ 28,768 $ 27,075 $ 20,256 Earnings per share--diluted $ 0.16 $ 0.17 $ 0.18 $ 0.16 $ 0.12 Weighted average common shares--diluted 146,545 147,612 156,745 166,359 165,268 ------------------- ------- ------- -------- ------- -------
QUARTERLY HIGHLIGHTS
Operating Revenues
-- Operating revenues decreased 2.4% from the fourth quarter of 2024 due to
two fewer trading days during the current quarter and a lower average
advisory fee, partly offset by higher average AUM. Operating revenues
increased 11.6% from the first quarter of 2024 due to higher average AUM
and higher other revenues attributable to our European listed
exchange-traded products ("ETPs").
-- Our average advisory fee was 0.35% during the first quarter of 2025 and
0.36% during the fourth quarter of 2024 and the first quarter of 2024.
Operating Expenses
-- Operating expenses decreased 2.3% from the fourth quarter of 2024
primarily due to lower fund management and administration expenses,
professional fees and marketing expenses. These decreases were partly
offset by higher seasonal compensation expenses arising from payroll
taxes, benefits and other items in connection with the payment of
year-end bonuses.
-- Operating expenses increased 7.3% from the first quarter of 2024
primarily due to higher stock-based compensation expense and increased
headcount, as well as higher third-party distribution fees, fund
management and administration expenses, sales and business development
expenses and marketing expenses. These increases were partly offset by
lower professional fees.
Other Income/(Expenses)
-- Interest expense was essentially unchanged from the fourth quarter of
2024. Interest expense increased 31.8% from the first quarter of 2024 due
to a higher level of debt outstanding, partly offset by a lower average
interest rate.
-- Interest income decreased 11.6% from the fourth quarter of 2024 and
increased 35.7% from the first quarter of 2024, respectively, due to
changes in the level of interest-earning assets and interest rates.
-- Other losses and gains, net was a loss of $0.3 million for the first
quarter of 2025. This included net losses of $0.4 million on our
financial instruments owned and net gains of $0.3 million on our
investments. Gains and losses also generally arise from the sale of gold
and cryptocurrency earned from management fees paid by our
physically-backed gold and crypto ETPs, foreign exchange fluctuations and
other miscellaneous items.
Income Taxes
-- Our effective income tax rate for the first quarter of 2025 was 18.9%,
resulting in income tax expense of $5.7 million. The effective tax rate
differs from the federal statutory rate of 21.0% primarily due to tax
windfalls associated with the vesting of stock-based compensation awards
and a lower tax rate on foreign earnings. These items were partly offset
by state and local income taxes and non-deductible executive
compensation.
-- Our adjusted effective income tax rate for the first quarter of 2025 was
25.6%(1).
CONFERENCE CALL DIAL-IN AND WEBCAST DETAILS
WisdomTree will discuss its results and operational highlights during a live webcast on Friday, May 2, 2025 at 11:00 a.m. ET, which can be accessed using the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=KKtcnQsi.
Participants also can dial in using the following numbers: (877) 407-9210 or (201) 689-8049. Click here to access the participant international toll-free access numbers. To avoid delays, we encourage participants to log in or dial into the conference call 10 minutes ahead of the scheduled start time. All earnings materials and the webcast can be accessed through WisdomTree's investor relations website at https://ir.wisdomtree.com. A replay of the webcast will also be available shortly after the call.
About WisdomTree
WisdomTree is a global financial innovator, offering a diverse suite of exchange-traded products (ETPs), models, solutions and products leveraging blockchain technology. Our offerings empower investors to shape their financial future and equip financial professionals to grow their businesses. Leveraging the latest financial infrastructure, we create products that emphasize access, transparency and provide an enhanced user experience. Building on our heritage of innovation, we have introduced next-generation digital products and services, including blockchain-enabled mutual funds, tokenized assets, our blockchain-native digital wallet, WisdomTree Prime$(R)$ , and institutional platform, WisdomTree Connect(TM).*
* The WisdomTree Prime digital wallet and digital asset services and WisdomTree Connect institutional platform are made available through WisdomTree Digital Movement, Inc., a federally registered money services business, state-licensed money transmitter and financial technology company (NMLS ID: 2372500) or WisdomTree Digital Trust Company, LLC, in select U.S. jurisdictions and may be limited where prohibited by law. WisdomTree Digital Trust Company, LLC is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business. Visit https://www.wisdomtreeprime.com, the WisdomTree Prime mobile app or https://wisdomtreeconnect.com for more information.
WisdomTree currently has approximately $116.2 billion in assets under management globally.
For more information about WisdomTree, WisdomTree Connect and WisdomTree Prime, visit: https://www.wisdomtree.com.
Please visit us on X at @WisdomTreeNews.
WisdomTree(R) is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.
PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE PRIME:
NOT FDIC INSURED | NO BANK GUARANTEE | NOT A BANK DEPOSIT | MAY LOSE VALUE | NOT SIPC PROTECTED | NOT INSURED BY ANY GOVERNMENT AGENCY
The products and services available through the WisdomTree Prime app and WisdomTree Connect are not endorsed, indemnified or guaranteed by any regulatory agency.
(1) See "Non-GAAP Financial Measurements."
(2) Adjusted revenue yield is computed by dividing our annualized adjusted
operating revenues as reported in the GAAP to Non-GAAP Reconciliation
herein by our average AUM during the period.
(3) Earnings per share ("EPS") is calculated pursuant to the two-class method
as it results in a lower EPS amount as compared to the treasury stock
method. In addition, the three months ended September 30, 2024 includes a
loss of $11,375 recognized upon the repurchase of our Series A Non-Voting
Convertible Preferred Stock convertible into approximately 14.75 million
shares of common stock from ETFS Capital Limited and $1,868 of stock
repurchase excise taxes. These items are excluded from net income but are
required to be added to net income to arrive at income available to
common stockholders in the calculation of EPS. These items are excluded
from our EPS when computed on a non-GAAP basis.
WISDOMTREE, INC. AND SUBSIDIARIES
KEY OPERATING STATISTICS
(Unaudited)
Three Months Ended
--------------------------------------------------------------------
Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
2025 2024 2024 2024 2024
------------ ------------ ------------ ------------ ------------
GLOBAL PRODUCTS ($ in
millions)
----------------------------
Beginning of period assets $109,779 $112,577 $109,686 $107,230 $100,124
Add: Digital Assets--Jan. 1,
2025 32 -- -- -- --
Inflows/(outflows) 3,048 (281) (2,395) 340 1,988
Market
appreciation/(depreciation) 2,928 (2,517) 5,286 2,116 5,118
------- ------- ------- ------- -------
End of period assets $115,787 $109,779 $112,577 $109,686 $107,230
======= ======= ======= ======= =======
Average assets during the
period $114,622 $112,349 $110,369 $108,479 $102,461
Average advisory fee during
the period 0.35% 0.36% 0.37% 0.37% 0.36%
Revenue days 90 92 92 91 91
Number of products--end of
the period 375([1]) 353 352 350 338
U.S. LISTED ETFs ($ in
millions)
----------------------------
Beginning of period assets $ 79,095 $ 81,267 $ 79,722 $ 78,087 $ 72,486
Inflows/(outflows) 1,843 (40) (1,650) 1,106 1,983
Market
(depreciation)/appreciation (407) (2,132) 3,195 529 3,618
------- ------- ------- ------- -------
End of period assets $ 80,531 $ 79,095 $ 81,267 $ 79,722 $ 78,087
======= ======= ======= ======= =======
Average assets during the
period $ 81,127 $ 80,661 $ 80,335 $ 78,523 $ 74,831
Number of ETFs--end of the
period 78 78 78 78 77
EUROPEAN LISTED ETPs ($ in
millions)
----------------------------
Beginning of period assets $ 30,684 $ 31,310 $ 29,964 $ 29,143 $ 27,638
Inflows/(outflows) 1,104 (241) (745) (766) 5
Market
appreciation/(depreciation) 3,336 (385) 2,091 1,587 1,500
------- ------- ------- ------- -------
End of period assets $ 35,124 $ 30,684 $ 31,310 $ 29,964 $ 29,143
======= ======= ======= ======= =======
Average assets during the
period $ 33,415 $ 31,688 $ 30,034 $ 29,956 $ 27,630
Number of ETPs--end of the
period 280 275 274 272 261
DIGITAL ASSETS ($ in
millions)
----------------------------
Beginning of period assets $ -- $ -- $ -- $ -- $ --
Add: Digital Assets--Jan. 1,
2025 32 -- -- -- --
Inflows 101 -- -- -- --
Market depreciation (1) -- -- -- --
======= ======= ======= ======= =======
End of period assets $ 132 $ -- $ -- $ -- $ --
======= ======= ======= ======= =======
Average assets during the
period $ 80 $ -- $ -- $ -- $ --
Number of products--end of
the period 17(1) -- -- -- --
PRODUCT CATEGORIES ($ in
millions)
----------------------------
U.S. Equity
Beginning of period assets $ 35,414 $ 34,643 $ 31,834 $ 31,670 $ 29,156
Add: Digital Assets--Jan. 1,
2025 9 -- -- -- --
Inflows 963 1,099 328 221 536
Market
(depreciation)/appreciation (758) (328) 2,481 (57) 1,978
------- ------- ------- ------- -------
End of period assets $ 35,628 $ 35,414 $ 34,643 $ 31,834 $ 31,670
======= ======= ======= ======= =======
Average assets during the
period $ 36,281 $ 35,714 $ 33,175 $ 31,339 $ 30,154
Three Months Ended
--------------------------------------------------
Sept.
Mar. 31, Dec. 31, 30, June 30, Mar. 31,
2025 2024 2024 2024 2024
-------- -------- -------- -------- ----------
Commodity & Currency
Beginning of period assets $21,906 $23,034 $21,987 $21,944 $21,336
Add: Digital Assets--Jan. 1,
2025 1 -- -- -- --
Outflows (159) (440) (741) (1,499) (460)
Market
appreciation/(depreciation) 3,739 (688) 1,788 1,542 1,068
------ ------ ------ ------ ------
End of period assets $25,487 $21,906 $23,034 $21,987 $21,944
====== ====== ====== ====== ======
Average assets during the
period $23,993 $22,989 $22,016 $22,437 $20,837
Fixed Income
Beginning of period assets $20,043 $20,767 $21,430 $21,218 $21,197
Add: Digital Assets--Jan. 1,
2025 21 -- -- -- --
Inflows/(outflows) 2,088 (387) (897) 236 (14)
Market
appreciation/(depreciation) 78 (337) 234 (24) 35
------ ------ ------ ------ ------
End of period assets $22,230 $20,043 $20,767 $21,430 $21,218
====== ====== ====== ====== ======
Average assets during the
period $21,464 $20,398 $21,135 $21,277 $21,082
International Developed
Market Equity
Beginning of period assets $17,602 $18,075 $19,385 $18,103 $15,103
Inflows/(outflows) 474 63 (1,391) 1,253 1,597
Market
appreciation/(depreciation) 102 (536) 81 29 1,403
------ ------ ------ ------ ------
End of period assets $18,178 $17,602 $18,075 $19,385 $18,103
====== ====== ====== ====== ======
Average assets during the
period $18,275 $17,716 $18,636 $18,809 $16,691
Emerging Market Equity
Beginning of period assets $10,468 $12,452 $11,875 $11,189 $10,726
(Outflows)/inflows (445) (908) (20) 57 217
Market
(depreciation)/appreciation (38) (1,076) 597 629 246
------ ------ ------ ------ ------
End of period assets $ 9,985 $10,468 $12,452 $11,875 $11,189
====== ====== ====== ====== ======
Average assets during the
period $10,072 $11,407 $12,083 $11,448 $10,900
Leveraged & Inverse
Beginning of period assets $ 1,924 $ 2,082 $ 1,922 $ 1,828 $ 1,815
Inflows/(outflows) 116 (69) 71 (18) (50)
Market
appreciation/(depreciation) 93 (89) 89 112 63
------ ------ ------ ------ ------
End of period assets $ 2,133 $ 1,924 $ 2,082 $ 1,922 $ 1,828
====== ====== ====== ====== ======
Average assets during the
period $ 2,083 $ 2,032 $ 1,962 $ 1,905 $ 1,792
Cryptocurrency
Beginning of period assets $ 1,912 $ 1,054 $ 838 $ 874 $ 414
Add: Digital Assets--Jan. 1,
2025 1 -- -- -- --
(Outflows)/inflows (89) 315 201 75 158
Market
(depreciation)/appreciation (271) 543 15 (111) 302
------ ------ ------ ------ ------
End of period assets $ 1,553 $ 1,912 $ 1,054 $ 838 $ 874
====== ====== ====== ====== ======
Average assets during the
period $ 1,900 $ 1,599 $ 917 $ 856 $ 614
Alternatives
Beginning of period assets $ 510 $ 470 $ 415 $ 404 $ 377
Inflows 100 46 54 15 4
Market
(depreciation)/appreciation (17) (6) 1 (4) 23
------ ------ ------ ------ ------
End of period assets $ 593 $ 510 $ 470 $ 415 $ 404
====== ====== ====== ====== ======
Average assets during the
period $ 554 $ 494 $ 445 $ 408 $ 391
Headcount 315 313 314 304 300
(1) Includes 17 digital assets products, which were launched prior to
January 1, 2025.
Note: Previously issued statistics may be restated due to fund closures
and trade adjustments.
Source: WisdomTree
WISDOMTREE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
Mar. 31, Dec. 31,
2025 2024
------------- ------------
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and restricted
cash $ 170,373 $ 181,191
Financial instruments owned, at fair
value 85,294 85,439
Accounts receivable 46,125 44,866
Income taxes receivable 3,400 --
Prepaid expenses 6,922 5,340
Other current assets 1,377 1,542
--------- ---------
Total current assets 313,491 318,378
Fixed assets, net 302 336
Deferred tax assets, net 5,622 11,656
Investments 9,237 8,922
Right of use assets--operating leases 583 880
Goodwill 86,841 86,841
Intangible assets, net 606,034 605,896
Other noncurrent assets 746 631
--------- ---------
Total assets $ 1,022,856 $1,033,540
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Current liabilities:
Fund management and administration
payable $ 34,513 $ 31,135
Compensation and benefits payable 11,803 39,701
Payable to Gold Bullion Holdings (Jersey)
Limited ("GBH") 14,804 14,804
Income taxes payable -- 724
Operating lease liabilities 493 709
Accounts payable and other liabilities 20,251 22,124
--------- ---------
Total current liabilities 81,864 109,197
Convertible notes--long term 512,657 512,033
Payable to GBH 12,615 12,159
Operating lease liabilities--long term 89 171
--------- ---------
Total liabilities 607,225 633,560
STOCKHOLDERS' EQUITY
Common stock, par value $0.01; 400,000
shares authorized:
Issued and outstanding: 147,034 and
146,102 at March 31, 2025 and December
31, 2024, respectively 1,470 1,461
Additional paid-in capital 263,818 270,303
Accumulated other comprehensive gain/(loss) 299 (1,607)
Retained earnings 150,044 129,823
--------- ---------
Total stockholders' equity 415,631 399,980
--------- ---------
Total liabilities and stockholders' equity $ 1,022,856 $1,033,540
========= =========
WISDOMTREE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Three Months Ended
March 31,
-------------------------
2025 2024
------------ -----------
Cash flows from operating
activities:
Net income $ 24,629 $ 22,111
Adjustments to reconcile net
income to net cash provided
by/(used in) operating
activities:
Advisory and license fees
paid in gold, other
precious metals and
cryptocurrency (15,373) (11,727)
Stock-based compensation 6,238 5,163
Deferred income taxes 5,835 5,640
Amortization of issuance
costs--convertible
notes 624 375
Depreciation and
amortization 540 383
Imputed interest on
payable to GBH 455 666
Losses/(gains) on
financial instruments
owned, at fair value 440 (2,063)
Amortization of right of
use asset 326 324
Gain on investments (316) (123)
Changes in operating assets
and liabilities:
Accounts receivable (394) (4,243)
Income taxes
receivable/payable (4,092) (2,723)
Prepaid expenses (1,522) (1,247)
Gold and other precious
metals 14,738 11,561
Other assets (295) (79)
Fund management and
administration payable 3,150 2,659
Compensation and benefits
payable (28,056) (28,386)
Operating lease
liabilities (325) (332)
Accounts payable and
other liabilities (232) 1,003
------- -------
Net cash provided
by/(used in)
operating activities 6,370 (1,038)
------- -------
Cash flows from investing
activities:
Purchase of financial
instruments owned, at fair
value -- (2,500)
Cash paid--software
development (577) (592)
Purchase of fixed assets (31) (66)
Proceeds from the sale of
financial instruments
owned, at fair value 388 5,180
Proceeds from
held-to-maturity securities
maturing or called prior to
maturity 6 6
------- -------
Net cash (used
in)/provided by
investing activities (214) 2,028
------- -------
Cash flows from financing
activities:
Common stock repurchased (12,714) (7,820)
Dividends paid (4,626) (4,997)
Excise taxes paid on common
stock repurchased (1,868) --
------- -------
Net cash used in
financing activities (19,208) (12,817)
------- -------
Increase/(decrease) in cash flow
due to changes in foreign
exchange rate 2,234 (552)
------- -------
Net decrease in cash, cash
equivalents and restricted
cash.............................
.................................
.............. .... (10,818) (12,379)
Cash, cash equivalents and
restricted cash--beginning of
year 181,191 129,305
------- -------
Cash, cash equivalents and
restricted cash--end of period $ 170,373 $116,926
======= =======
Supplemental disclosure of cash
flow information:
Cash paid for income
taxes $ 4,042 $ 2,769
======= =======
Cash paid for interest $ 6,412 $ 3,738
======= =======
NON-GAAP FINANCIAL MEASUREMENTS
In an effort to provide additional information regarding our results as determined by GAAP, we also disclose certain non-GAAP information which we believe provides useful and meaningful information. Our management reviews these non-GAAP financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-GAAP measurements so as to share this perspective of management. Non-GAAP measurements do not have any standardized meaning, do not replace nor are they superior to GAAP financial measurements and are unlikely to be comparable to similar measures presented by other companies. These non-GAAP financial measurements should be considered in the context with our GAAP results. The non-GAAP financial measurements contained in this press release include:
Adjusted Revenues, Operating Income, Operating Expenses, Income Before Income Taxes, Income Tax Expense, Net Income and Diluted Earnings per Share
We disclose adjusted revenues, operating income, operating expenses, income before income taxes, income tax expense, net income and diluted earnings per share as non-GAAP financial measurements in order to report our results exclusive of items that are non-recurring or not core to our operating business. We believe presenting these non-GAAP financial measurements provides investors with a consistent way to analyze our performance. These non-GAAP financial measurements exclude the following:
Legal and other related expenses covered by insurance: During the year ended December 31, 2024, we incurred $4.3 million of legal and other related expenses in connection with a settlement with the U.S. Securities and Exchange Commission (the "SEC") regarding certain statements about the ESG screening process for three ETFs advised by WisdomTree Asset Management, Inc. (the "SEC ESG Settlement"). These expenses were covered by insurance and reimbursed on April 7, 2025. GAAP requires that such covered expenses be reported gross in the income statement such that revenues are recorded to offset expenses incurred. We offset the revenues and related expenses when calculating our non-GAAP financial measurements as the gross presentation serves to overstate our revenues and expenses recognized in the ordinary course of business.
Gains or losses on financial instruments owned: We account for our financial instruments owned as trading securities, which requires these instruments to be measured at fair value with gains and losses reported in net income. We exclude these items when calculating our non-GAAP financial measurements as the gains and losses introduce volatility in earnings and are not core to our operating business.
Tax windfalls and shortfalls upon vesting of stock-based compensation awards: GAAP requires the recognition of tax windfalls and shortfalls within income tax expense. These items arise upon the vesting of stock-based compensation awards and the magnitude is directly correlated to the number of awards vesting/exercised, as well as the difference between the price of our stock on the date the award was granted and the date the award vested or was exercised. We exclude these items when calculating our non-GAAP financial measurements as they introduce volatility in earnings and are not core to our operating business.
Imputed interest on our payable to the Gold Bullion Holdings (Jersey) Limited ("GBH"): During the fourth quarter of 2023, we repurchased our Series C Non-Voting Convertible Preferred Stock, which was convertible into approximately 13.1 million shares of WisdomTree common stock, from GBH, a subsidiary of the World Gold Council, for aggregate cash consideration of approximately $84.4 million. Under the terms of the transaction, we paid GBH $40.0 million on the closing date, with the remainder of the purchase price payable in equal annual installments on the first, second and third anniversaries of the closing date, with no requirement to pay interest. Under U.S. GAAP, the obligation is recorded at its present value utilizing a market rate of interest on the closing date of 7.0% and the corresponding discount is amortized as interest expense pursuant to the effective interest method of accounting over the life of the obligation. We exclude this item when calculating our non-GAAP financial measurements as recognition of interest expense is non-cash and contrary to the stated terms of our obligation.
Other items: Losses on extinguishment of convertible notes, a civil money penalty in connection with the SEC ESG Settlement, gains and losses recognized on our investments, changes in deferred tax asset valuation allowance and expenses incurred in response to an activist campaign are excluded when calculating our non-GAAP financial measurements.
Adjusted Effective Income Tax Rate
We disclose our adjusted effective income tax rate as a non-GAAP financial measurement in order to report our effective income tax rate exclusive of items that are non-recurring or not core to our operating business. We believe reporting our adjusted effective income tax rate provides investors with a consistent way to analyze our income taxes. Our adjusted effective income tax rate is calculated by dividing adjusted income tax expense by adjusted income before income taxes. See above for information regarding the items that are excluded.
Gross Margin and Gross Margin Percentage
We disclose our gross margin and gross margin percentage as non-GAAP financial measurements because we believe they provide investors with a consistent way to analyze the amount we retain after paying third-party service providers to operate our ETPs. These measures also assist us in analyzing the profitability of our products. We define gross margin as total adjusted operating revenues less fund management and administration expenses. Gross margin percentage is calculated as gross margin divided by total adjusted operating revenues.
GAAP to NON-GAAP RECONCILIATION (CONSOLIDATED)
(in thousands)
(Unaudited)
Three Months Ended
-------------------------------------------------------
Adjusted Net Income and
Diluted Earnings per Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
Share: 2025 2024 2024 2024 2024
--------- --------- --------- --------- -----------
Net income/(loss), as
reported $ 24,629 $ 27,308 $ (4,485) $ 21,759 $ 22,111
Deduct: Tax
windfalls upon
vesting of
stock-based
compensation
awards (2,083) -- (25) (40) (699)
Add back: Imputed
interest on payable
to GBH, net of
income taxes 344 451 528 513 504
Add back/(deduct):
Losses/(gains) on
financial
instruments owned,
net of income
taxes 333 (1,722) (607) 220 (1,562)
(Deduct)/add back:
(Gains)/losses
recognized on
investments, net of
income taxes (239) 389 (436) 998 (93)
Add back/(deduct):
Increase/(decrease)
in deferred tax
asset valuation
allowance on
financial
instruments owned
and investments 30 (428) (335) 391 (531)
Add back: Loss on
extinguishment of
convertible notes,
net of income
taxes -- (718) 30,128 -- --
Add back: Civil
money penalty in
connection with SEC
ESG Settlement -- -- 4,000 -- --
Add back: Expenses
incurred in response
to an activist
campaign, net of
income taxes -- -- -- 3,234 526
------- ------- ------- ------- -------
Adjusted net income $ 23,014 $ 25,280 $ 28,768 $ 27,075 $ 20,256
Weighted average common
shares--diluted 146,545 147,612 156,745 166,359 165,268
------- ------- ------- ------- -------
Adjusted earnings per
share--diluted $ 0.16 $ 0.17 $ 0.18 $ 0.16 $ 0.12
======= ======= ======= ======= =======
Three Months Ended
Gross Margin and
Gross Margin Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
Percentage: 2025 2024 2024 2024 2024
------------ ------------ ------------ ------------ ------------
Operating revenues $108,082 $110,697 $113,168 $107,034 $ 96,838
Deduct: Legal
and other
related
expenses
covered by
insurance -- (192) (3,661) -- (453)
------- ------- ------- ------- -------
Operating
revenues, as
adjusted $108,082 $110,505 $109,507 $107,034 $ 96,385
Deduct: Fund
management and
administration (20,714) (22,858) (21,004) (20,139) (19,962)
------- ------- ------- ------- -------
Gross margin. $ 87,368 $ 87,647 $ 88,503 $ 86,895 $ 76,423
------- ------- ------- ------- -------
Gross margin
percentage 80.8% 79.3% 80.8% 81.2% 79.3%
======= ======= ======= ======= =======
Three Months Ended
Adjusted
Operating
Revenues,
Operating
Income and
Adjusted
Operating
Income Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
Margin: 2025 2024 2024 2024 2024
------------ ------------ ------------ ------------ -----------
Operating
revenues $108,082 $110,697 $113,168 $107,034 $96,838
Deduct:
Legal and
other
related
expenses
covered
by
insurance -- (192) (3,661) -- (453)
------- ------- ------- ------- ------
Operating
revenues, as
adjusted $108,082 $110,505 $109,507 $107,034 $96,385
------- ------- ------- ------- ------
Operating
income $ 34,162 $ 35,040 $ 40,792 $ 33,511 $27,950
Add back:
Expenses
incurred
in
response
to an
activist
campaign -- -- -- 4,271 695
------- ------- ------- ------- ------
Adjusted
operating
income $ 34,162 $ 35,040 $ 40,792 $ 37,782 $28,645
------- ------- ------- ------- ------
Adjusted
operating
income
margin 31.6% 31.7% 37.3% 35.3% 29.7%
======= ======= ======= ======= ======
Three Months Ended
-------------------------------------------------
Adjusted
Total Mar. Sept.
Operating 31, Dec. 31, 30, June 30, Mar. 31,
Expenses: 2025 2024 2024 2024 2024
------- -------- -------- -------- ----------
Total
operating
expenses $73,920 $75,657 $72,376 $73,523 $68,888
Deduct:
Legal and
other
related
expenses
covered
by
insurance -- (192) (3,661) -- (453)
Deduct:
Expenses
incurred
in
response
to an
activist
campaign -- -- -- (4,271) (695)
------ ------ ------ ------ ------
Adjusted
total
operating
expenses $73,920 $75,465 $68,715 $69,252 $67,740
====== ====== ====== ====== ======
Three Months Ended
-------------------------------------------------
Adjusted Income Sept. June
Before Income Mar. 31, Dec. 31, 30, 30, Mar. 31,
Taxes: 2025 2024 2024 2024 2024
-------- -------- -------- ------- ----------
Income before
income taxes $30,368 $34,198 $ 3,866 $29,526 $27,812
Add back:
Imputed
interest on
payable to
GBH 455 596 697 677 666
Add
back/(deduct):
Losses/(gains)
on financial
instruments
owned 440 (2,275) (802) 291 (2,063)
(Deduct)/add
back:
(Gains)/losses
recognized on
investments (316) 514 (576) 1,318 (123)
Add back: Loss
on
extinguishment
of convertible
notes -- -- 30,632 -- --
Add back: Civil
money penalty
in connection
with SEC ESG
Settlement -- -- 4,000 -- --
Add back:
Expenses
incurred in
response to an
activist
campaign -- -- -- 4,271 695
------ ------ ------ ------ ------
Adjusted income
before income
taxes $30,947 $33,033 $37,817 $36,083 $26,987
====== ====== ====== ====== ======
Three Months Ended
---------------------------------------------------------------
Adjusted Income Tax
Expense and Adjusted
Effective Income Tax Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
Rate: 2025 2024 2024 2024 2024
----------- ----------- ----------- ----------- -----------
Adjusted income before
income taxes (above) $30,947 $33,033 $37,817 $36,083 $26,987
------ ------ ------ ------ ------
Income tax expense. $ 5,739 $ 6,890 $ 8,351 $ 7,767 $ 5,701
Add back: Tax
windfalls upon
vesting of
stock-based
compensation
awards 2,083 -- 25 40 699
Add back: Tax
benefit on imputed
interest 111 145 169 164 162
Add back/(deduct):
Tax
benefit/(expense)
arising from
losses/(gains) on
financial
instruments owned 107 (553 ) (195 ) 71 (501 )
(Deduct)/add back:
(Increase)/decrease
in deferred tax
asset valuation
allowance on
financial
instruments owned
and investments (30) 428 335 (391) 531
(Deduct)/add back:
Tax
(expense)/benefit
on (gains)/losses
on investments (77) 125 (140) 320 (30)
Add back: Tax
benefit arising
from extinguishment
of convertible
notes -- 718 504 -- --
Add back: Tax
benefit arising
from expenses
incurred in
response to an
activist campaign -- -- -- 1,037 169
------ ------ ------ ------ ------
Adjusted income tax
expense $ 7,933 $ 7,753 $ 9,049 $ 9,008 $ 6,731
------ ------ ------ ------ ------
Adjusted effective
income tax rate 25.6% 23.5% 23.9% 25.0% 24.9%
====== ====== ====== ====== ======
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should, " "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue" or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, the risks described below. If one or more of these or other risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this press release completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.
In particular, forward-looking statements in this press release may include statements about:
-- anticipated trends, conditions and investor sentiment in the global
markets and ETPs;
-- anticipated levels of inflows into and outflows out of our ETPs;
-- our ability to deliver favorable rates of return to investors;
-- competition in our business;
-- whether we will experience future growth;
-- our ability to develop new products and services and their potential for
success;
-- our ability to maintain current vendors or find new vendors to provide
services to us at favorable costs;
-- our ability to successfully implement our strategy relating to digital
assets and blockchain-enabled financial services, including WisdomTree
Prime(R) and WisdomTree Connect(TM), and achieve its objectives;
-- our ability to successfully operate and expand our business in non-U.S.
markets;
-- the effect of laws and regulations that apply to our business; and
-- actions of activist stockholders.
Our business is subject to many risks and uncertainties, including without limitation:
-- declining prices of securities, gold and other precious metals and other
commodities and changes in interest rates and general market conditions
can adversely affect our business by reducing the market value of the
assets we manage or causing WisdomTree ETP investors to sell their fund
shares and trigger redemptions;
-- fluctuations in the amount and mix of our AUM, whether caused by
disruptions in the financial markets or otherwise, including but not
limited to events such as a pandemic or war, geopolitical conflicts,
political events, acts of terrorism and other matters beyond our control,
may negatively impact revenues and operating margins, and may impede our
ability to refinance our debt upon maturity or increase the cost of
borrowing upon a refinancing;
-- competitive pressures could reduce revenues and profit margins;
-- we derive a substantial portion of our revenues from a limited number of
products, and, as a result, our operating results are particularly
exposed to investor sentiment toward investing in the products'
strategies and our ability to maintain the AUM of these products, as well
as the performance of these products and market-specific and political
and economic risk;
-- a significant portion of our AUM is held in products with exposure to
U.S. and international developed markets, and we therefore have exposure
to domestic and foreign market conditions and are subject to currency
exchange rate risks;
-- withdrawals or broad changes in investments in our ETPs by investors with
significant positions may negatively impact revenues and operating
margins;
-- we face increased operational, regulatory, financial and other risks as a
result of conducting our business internationally, and as we expand our
digital assets product offerings and services beyond our existing ETP
business;
-- many of our ETPs have a limited track record, and poor investment
performance could cause our revenues to decline;
-- we depend on third parties to provide many critical services to operate
our business and our ETPs. The failure of key vendors to adequately
provide such services could materially affect our operating business and
harm WisdomTree ETP investors; and
-- actions of activist stockholders against us, which have been costly and
may be disruptive and cause uncertainty about the strategic direction of
our business.
Other factors, such as general economic conditions, including currency exchange rate fluctuations, also may have an effect on the results of our operations. For a more complete description of the risks noted above and other risks that could cause our actual results to differ from our current expectations, see "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, and in subsequent reports filed with or furnished to the SEC.
The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Therefore, these forward-looking statements do not represent our views as of any date other than the date of this press release.
Category: Business Update
View source version on businesswire.com: https://www.businesswire.com/news/home/20250502676265/en/
CONTACT: Investor Relations
Jeremy Campbell
+1.917.267.3859
jeremy.campbell@wisdomtree.com
Media Relations
Jessica Zaloom
+1.917.267.3735
jzaloom@wisdomtree.com
(END) Dow Jones Newswires
May 02, 2025 07:00 ET (11:00 GMT)
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