WisdomTree Inc (NYSE:WT) Reports Mixed Q3 2025 Results

WisdomTree Reports Mixed Q3 2025 Results as Market Appraises Strategic Moves

Earnings and Revenue Performance

WisdomTree Inc (NYSE:WT) announced financial results for the third quarter of 2025, presenting a nuanced picture of performance against analyst expectations. The global financial innovator reported non-GAAP earnings per share (EPS) of $0.23, surpassing the consensus estimate of $0.2163. This represents a solid earnings beat driven by operational efficiency.

However, the company's revenue story was less straightforward. WisdomTree reported operating revenues of $125.6 million for the quarter, slightly below analyst projections of $126.4 million. This minor revenue miss comes despite an 11.5% increase from the previous quarter, indicating that while growth continues, it fell just short of market expectations.

Key financial metrics from the quarter include:

• Non-GAAP net income of $34.5 million, up significantly from $25.9 million in Q2 2025
• Operating revenue increase of 11.5% quarter-over-quarter
• Gross margin improvement to 82.2%, up 1.1 percentage points from the prior quarter
• Operating income margin of 38.3% on an adjusted basis

Assets Under Management and Business Momentum

The company demonstrated strong operational momentum with ending assets under management reaching $137.2 billion, an 8.8% increase from the previous quarter. This growth was fueled by both market appreciation and net inflows of $2.2 billion, marking continued investor confidence in WisdomTree's product offerings.

Notably, model portfolios emerged as one of the fastest-growing segments, with AUM reaching nearly $5.9 billion—representing more than 50% growth year-to-date. President and COO Jarrett Lilien emphasized the company's "consistency and focus" in execution, highlighting broad-based inflows across business lines.

Strategic Developments and Capital Management

The quarter featured significant strategic moves, including the completion of a $475 million convertible notes offering and the concurrent repurchase of higher-cost debt. The company also deployed $90 million to repurchase approximately 6.8 million shares of common stock, demonstrating commitment to shareholder returns while positioning the balance sheet for future growth.

CEO Jonathan Steinberg noted the company's expanding foundation, citing diversification into private assets through the Ceres Partners acquisition and continued leadership in tokenization efforts. The company's digital asset initiatives gained further traction with the appointment of BNY Mellon as core banking-as-a-service infrastructure provider for WisdomTree Prime.

Market Reaction and Outlook

The market's response to these mixed results has been cautiously optimistic. The stock showed positive movement in pre-market trading, suggesting investors are focusing on the earnings beat and strong AUM growth rather than the slight revenue miss.

Looking forward, analysts project Q4 2025 revenue of approximately $134.1 million with EPS estimates of $0.22. For the full year 2025, revenue expectations stand around $487.7 million with EPS of $0.78. While the press release didn't provide specific forward guidance, the company's strategic positioning in growing areas like digital assets and private markets suggests confidence in sustained growth trajectories.

Capital Structure and Dividend

WisdomTree maintained its quarterly dividend of $0.03 per share, payable in November 2025. The company's recent debt management activities, including the issuance of new convertible notes at a lower conversion price and the repurchase of higher-cost debt, indicate proactive balance sheet optimization that could enhance future profitability.

For detailed earnings estimates and historical performance data, visit the WT Earnings & Estimates page.

Disclaimer: This article provides financial analysis for informational purposes only and should not be considered as investment advice. Readers should conduct their own research and consult with financial advisors before making investment decisions.