WisdomTree Inc (NYSE:WT) reported fourth-quarter financial results that surpassed analyst expectations on the top and bottom lines, a performance that appears to be resonating positively with investors in early trading.
The asset manager and financial innovator posted revenue of $147.4 million for the quarter ended December 31, 2025, marking a significant 33.4% increase compared to the same period last year. This figure also edged out the Wall Street consensus estimate of approximately $146.8 million. On the profitability front, the company reported adjusted earnings per share (EPS) of $0.29, solidly beating the analyst forecast of $0.24 per share.
Market Reaction and Performance
The market's initial response to the earnings beat has been favorable. In pre-market trading, the stock showed an uptick of approximately 2.0%. This positive momentum builds on a strong recent trend for WisdomTree shares, which have gained over 33% in the past month and nearly 19% over the last two weeks. The immediate price action suggests investors are rewarding the company for exceeding profitability expectations and demonstrating robust revenue growth, largely fueled by strategic acquisitions.
Key Drivers from the Quarterly Report
The earnings release highlighted several factors contributing to the strong quarter. A primary catalyst was the company's recent acquisition of Ceres Partners, LLC, a specialist in U.S. farmland investments, which closed on October 1, 2025. This deal contributed meaningfully to both assets under management (AUM) and revenue.
- Assets Under Management: Ending AUM reached $144.5 billion, a 5.3% increase from the prior quarter. This growth was driven by market appreciation and the inclusion of AUM from the Ceres acquisition, which helped offset $300 million in net outflows for the quarter.
- Revenue and Profitability Metrics:
- Operating revenues surged 17.4% sequentially to $147.4 million.
- The adjusted operating income margin expanded to 41.7%, up from 38.3% in the third quarter.
- The adjusted revenue yield increased to 0.42%, a 4 basis point improvement, attributed to revenues from the Ceres business.
Management commentary struck an optimistic tone about the company's strategic direction. President and COO Jarrett Lilien noted the firm closed the year "with strong momentum," citing $8.5 billion in full-year net inflows and organic growth of approximately 8%. CEO Jonathan Steinberg emphasized the company's "diversified and scalable platform," pointing to growth across asset classes and the maturation of initiatives in model portfolios, digital assets, and private markets.
Looking Ahead: Estimates for 2026
While the press release did not provide specific quantitative financial guidance for the coming year, it did express confidence entering 2026. Analyst estimates currently project continued growth. For the first quarter of 2026, the consensus sales estimate stands at $148.1 million with an EPS estimate of $0.22. For the full 2026 fiscal year, analysts are forecasting sales of approximately $616.9 million and earnings per share of $0.98.
Summary of Press Release Highlights
- Financial Beat: Revenue of $147.4M and adjusted EPS of $0.29 both exceeded analyst consensus estimates.
- AUM Growth: Ending assets under management grew to $144.5 billion, aided by the Ceres acquisition.
- Margin Expansion: Both gross and operating income margins showed sequential improvement.
- Strategic Integration: The acquisition of Ceres Partners is cited as a key contributor to revenue and AUM growth.
- Dividend: The company declared a quarterly cash dividend of $0.03 per share.
- Business Momentum: Leadership highlighted strength in model portfolios, early traction in digital assets, and the scaling of private market investments.
For a detailed breakdown of past and future earnings estimates for WisdomTree, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
