Executive Summary

WT delivered a clean beat on consensus with operating revenues of $125.6M vs. $122.7M consensus and adjusted diluted EPS of $0.23 vs. $0.21 consensus, driven by higher average AUM and stronger “other” revenues from European-listed ETPs . Q3 2025 revenue and EPS beat consensus estimates from S&P Global.*
Record ending AUM reached $137.2B (+8.8% QoQ) on $2.2B net inflows and market appreciation; gross margin expanded to 82.2% (+110bps QoQ) on stronger revenue capture, with adjusted operating margin at 38.3% (+580bps QoQ) .
Management guided Q4 gross margin to ~83% and FY25 to ~82%; Q4 adjusted interest expense ~$11M (up from ~$8M in Q3) and interest income $2–3M; Q4 diluted shares 146–149M as buybacks offset converts .
Strategic catalysts: closed Ceres Partners (farmland) in early October, expected to lift revenue capture/margins and diversify AUM; increased buyback authorization to $250M and declared a $0.03 dividend .

What Went Well and What Went Wrong

What Went Well

Broad-based growth: Record AUM of $137.2B, $2.2B quarterly net inflows (notably Europe, commodities, crypto), and 11% annualized organic growth pace; average fee capture held at 0.35% .
Margin expansion: Gross margin rose to 82.2% (+110 bps QoQ) and adjusted operating margin to 38.3% (+580 bps QoQ) on higher average AUM and “other” revenues in Europe .
Strategic advances: Completed acquisition of Ceres Partners (circa $1.7–$1.8B AUM farmland platform), increasing revenue capture and operating margins by >200 bps, plus optionality from solar/data centers; raised $475M converts and repurchased 6.8M shares .

Management quotes:

“We’re executing with consistency and focus… record firmwide AUM… strong performance across every business line” – Jarrett Lilien, President/COO .
“Our expansion into private assets through the acquisition of Ceres Partners… positions WisdomTree for long-term, technology-driven growth” – Jonathan Steinberg, CEO .

What Went Wrong

Higher interest burden and one-time extinguishment: Q3 included a $13.0M loss on extinguishment tied to repurchases of 2028 notes; adjusted interest expense rose on new 2030 converts (guiding Q4 to ~$11M) .
GAAP dilution vs. adjusted: GAAP diluted EPS was $0.13, below adjusted $0.23, due to the extinguishment charge and higher interest; effective tax rate also elevated (33.3%) by non-deductible items .
Mix headwinds in U.S. ETFs: U.S. listed ETFs saw ~$448M net outflows in Q3 (vs. Europe inflows); management cited profit-taking in commodities and client reallocations (e.g., USFR) post a strong run .

Financial Results

Consolidated P&L and Margins (GAAP and Adjusted)

Metric	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025
Operating Revenues ($M)	113.2	110.7	108.1	112.6	125.6
Net Income ($M)	(4.5)	27.3	24.6	24.8	19.7
Diluted EPS (GAAP) ($)	(0.13)	0.18	0.17	0.17	0.13
Adjusted Diluted EPS ($)	0.18	0.17	0.16	0.18	0.23
Operating Income Margin (%)	36.0	31.7	31.6	30.8	36.3
Adjusted Operating Margin (%)	37.3	31.7	31.6	32.5	38.3
Gross Margin (%)	80.8	79.3	80.8	81.1	82.2

Notes: Adjusted metrics per non-GAAP definitions and reconciliations in the press release .

KPIs and AUM

KPI	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025
Ending AUM ($B)	112.6	109.8	115.8	126.1	137.2
Net Inflows ($B)	(2.4)	(0.3)	3.1	3.5	2.2
Average AUM ($B)	110.4	112.3	114.6	119.2	130.8
Avg Advisory Fee (%)	0.37	0.36	0.35	0.35	0.35
Adjusted Revenue Yield (%)	0.39	0.39	0.38	0.38	0.38

Regional/Vehicle AUM and Flows (Q3 2025)

Segment	End-of-Period AUM ($B)	Net Inflows ($B)	Commentary
U.S.-listed ETFs	88.3	(0.45)	Outflows concentrated in select funds; management noted reallocations and profit-taking .
European-listed ETPs	48.3	2.45	Strong gold/crypto/defense flows and higher “other” revenues .
Digital Assets	0.59	0.24	Momentum in WTGXX (tokenized money market), broader chain support .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Gross Margin (%)	Q4 2025	n/a disclosed	~83%	Raised specificity
Gross Margin (%)	FY 2025	n/a disclosed	~82%	New color
Adjusted Interest Expense ($M)	Q4 2025	n/a disclosed	~11	New color
Interest Income ($M)	Q4 2025	~$2 run-rate implied	$2–3 (reverting from $4 in Q3)	Update
Weighted Avg Diluted Shares (M)	Q4 2025	n/a disclosed	146–149 (reflects buybacks, convert shares)	New color
Ceres/Cirrus Opex ($M, annualized)	Run-rate	n/a disclosed	~15; ~¼ impacts Q4	New color
“Other Revenues” (Europe)	Go-forward	n/a precise	~$11M is fair approximation at current AUM	New color
Dividend ($/sh)	Next pay date	Prior level not updated	$0.03 declared (payable Nov 26, 2025)	Maintained
Buyback Authorization ($M)	Through Apr 27, 2028	$60 (implied)	$250 (↑ by $190)	Raised

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Tokenization & Digital stack	Building Prime/Connect; on-chain transfers planned; regulatory “grind”	Detailed stablecoin roadmap (USDW/WTGXX), chain-agnostic expansion; >$500M AUM near Q2 call	Seven public chains; tokenization-as-a-service conversations; WTGXX AUM momentum; plan for 24/7 liquidity/secondary trading; SEC filing referenced	Positive adoption, expanding functionality
Europe momentum	Early defense fund success; broad UCITS inflows	European Defense Fund a key driver; cross-asset flows	Europe outpaced U.S.; strong capture via “other revenues”	Sustained strength
Commodities/Gold	Not a focus	Mixed; broad AUM growth noted	Gold AUM >$22B; strong quarterly inflows; some post-quarter profit-taking	Strong with tactical rotations
Private assets (farmland)	Announced intent to pursue privates	Announced deal; accretion, performance fee economics	Closed Ceres; margin/capture uplift; modeling guidance provided	Execution milestone
Regulatory/legal	Routine; building approvals	Stablecoin legislation backdrop; state approvals advancing	Waiting for SEC on digital MMMF trading functionality; continued compliance focus	Progressing within regulatory lanes
AI/automation	Firm-wide AI deployment to boost efficiency/decisioning	–	–	Ongoing enablement

Management Commentary

CFO: “Adjusted revenues were $125.6 million… other revenues increased to $11 million… a fair approximation going forward, assuming current European AUM levels… we anticipate our gross margin increasing to 83% in Q4… overall gross margin of about 82% for the full year” .
COO/President: “We ended the quarter with over $137 billion in AUM… Net inflows exceeded $2.2 billion… Gold… now exceed $22 billion in AUM… Models AUM grew to ~$5.85 billion… Prime is now live with on-chain transfer capabilities” .
CEO: “WisdomTree is the strongest we’ve ever been… a new level of diversification… positioned to thrive in the years ahead” .

Q&A Highlights

Europe vs. U.S. flows: CEO expects Europe’s structural ETF adoption to continue; global product breadth supports resilience across market backdrops .
Tokenization-as-a-service: Active conversations; WT’s stack integrates asset mgmt, token issuance, and stablecoin orchestration; roadmap includes 24/7 liquidity for WTGXX .
Ceres modeling: Starting AUM ~$1.7–$1.8B; management fee ~1%; performance fee ~15% of net mark; assume 7–8% mark on AUM baseline; solar/data center upside; AUM reported quarter-end .
Digital economics: ~$650M AUM at ~25 bps fee capture; net operating loss “mid-20s” $M; management sees structural shift to on-chain finance .
Post-quarter flows: Some profit-taking in commodities (after big YTD moves) and reallocations from USFR; rotation did not necessarily impair net revenue .

Estimates Context

Metric	Q3 2025 Consensus	Q3 2025 Actual	Surprise	Q4 2025 Consensus
Revenue ($M)	122.7*	125.6	+2.9	141.9*
Adjusted/Primary EPS ($)	0.21*	0.23	+0.02	0.23*
EBITDA ($M)	46.4*	48.2 [Derived from adjusted operating income proxy in non-GAAP; see note]	+1.8	56.8*

Notes:

Consensus from S&P Global; asterisks denote values from S&P Global.*
Q3 2025 adjusted EPS and revenue actuals per company disclosures; EBITDA “actual” corresponds to consensus-vs.-actual view reported by S&P Global and aligns with non-GAAP operating performance; primary non-GAAP detail shown in press release .*

Why the beat: Revenue exceeded expectations on higher average AUM and a step-up in “other” revenues from Europe; margin upside driven by scale and mix .

Key Takeaways for Investors

WT posted a clean top- and bottom-line beat, with visible operating leverage: gross margin 82.2% and adjusted op margin 38.3%, supported by higher AUM and European “other” revenue capture .
Forward setup favorable: management guides Q4 gross margin to ~83% and FY25 ~~82%, while flagging higher Q4 interest expense (~~$11M) and modestly lower interest income ($2–3M) .
Strategic diversification is advancing: Ceres adds a private, uncorrelated earnings stream (mgmt + performance fees) and lifts revenue capture/margins structurally; WT provided clear modeling parameters .
Digital assets momentum provides optionality: WTGXX growth, multi-chain expansion, and tokenization-as-a-service discussions point to new revenue avenues; management remains “very bullish” on tokenized RWA trajectory .
Capital returns and shareholder alignment: Board raised buyback authorization to $250M and maintained the $0.03 dividend, supporting per-share metrics amid convert-related dilution .
Watchlist items: mix in U.S. ETFs (USFR/commodities rotations), execution on Ceres performance fee generation, regulatory timing for enhanced digital MMMF trading functionality, and interest expense trajectory with the new 2030 converts .

Footnote: Values marked with an asterisk (*) are retrieved from S&P Global consensus and estimate data.

WisdomTree, Inc. (WT)·Q3 2025 Earnings Summary