Key Highlights

  • Ending Assets under management reached a record USD 171.0 billion, up 5.0% from the prior quarter on inflows and appreciation.
  • Net inflows were USD 4.6 billion in the quarter and USD 13.6 billion year to date, a 13% organic rate.
  • Net income was USD 49.2 million, or USD 0.32 per diluted share, with operating revenues of USD 179.4 million.
  • Operating margin was 41.3%, and the year-to-date margin rose 6.8 points from the prior-year period.

Record Assets and Inflows

WisdomTree, Inc. (NYSE:WT) reported record ending assets under management of USD 171.0 billion at the end of the third quarter of 2026, up 5.0% from the prior quarter. Net inflows were USD 4.6 billion across the United States and Europe, led by fixed income, Commodity and U.S. Equity products.

Net income was USD 49.2 million, or USD 49.5 million as adjusted, equal to diluted EPS of USD 0.32. Operating revenues were USD 179.4 million, up 1.3% from the second quarter on higher average assets, partly offset by lower transaction fees from European ETPs and lower performance fees. The unchanged 0.36% advisory fee applied to a larger asset base, which supported revenue growth.

Margins Expand

The average advisory fee was 0.36%, unchanged from the second quarter, and revenue Yield was 0.42%, down 1 basis point. Gross margin was 83.0%. Operating Income margin was 41.3%, or 43.1% as adjusted, up 0.8 point from the prior quarter. Operating Margin expanded 680 basis points year over year, or 750 on an adjusted basis, reflecting Operating Leverage on revenue growth. Adjusted operating income excludes intangible asset amortization and acquisition-related costs.

For the year to date, operating margin was 39.8%, or 41.8% as adjusted. The company attributed the increase to operating leverage from revenue growth, partly offset by higher intangible amortization tied to the Ceres Partners and Atlantic House acquisitions.

Capital Management

WisdomTree retired USD 18.1 million of principal of its convertible senior notes due 2029 for cash consideration of USD 32.3 million, with a conversion price of USD 11.82. The cash cost exceeded the principal retired, consistent with a share price well above that conversion price, and the retirement reduces convertible Debt outstanding. It repurchased USD 10.6 million of common stock, about 0.5 million shares at an average of USD 21.29. The board declared a quarterly Dividend of USD 0.03 per share, payable November 25, 2026 to holders of record on November 11.

Strategy and Items to Follow

Chief executive Jonathan Steinberg described the company as positioned at the intersection of the democratization of investing, the convergence of public and private markets and the tokenization of financial assets, and said the platform combines differentiated capabilities in democratized investing, private markets and tokenization into one integrated ecosystem. The company's president and chief operating officer pointed to expanding distribution, operating discipline and opportunities in liquid alternatives, private markets and tokenization.

Items to follow include the pace of net inflows, the revenue yield trend as product mix shifts and further reduction of the convertible notes. Operating revenues of USD 179.4 million came with a gross margin of 83.0%, essentially unchanged from the prior quarter.