WisdomTree, Inc. (WT) Earnings

Management highlights

- Overall Financial and Strategic Milestones * Achieved sixth consecutive quarter of record AUM, hitting $162.9 billion at quarter end, with growth driven by favorable market conditions, positive net inflows, and the May 1 closing of the Atlantic House acquisition * The 20th anniversary of WisdomTree's first ETF launch was marked this quarter, with the firm having grown from an ETF pioneer to a global modern asset manager spanning ETFs, private markets, and tokenized financial infrastructure * Surpassed the 40% adjusted operating margin milestone, confirming the scalability of WisdomTree's operating model as the business grows * Delivered 30% compound annual EPS growth over the past 5 years, and over 50% over the past 3 years - Acquisition and Integration Progress * Completed the acquisition of Atlantic House, adding over $4 billion in AUM, complementary revenue streams, and expanded European presence; the acquisition enhances outcome-oriented and derivatives-based investment solution capabilities * Integration of Atlantic House has proceeded successfully in the short term, with integration of Cirrus continuing on plan; the flagship Cirrus Fund 1 was closed to new investments with Fund 2 launched in June 2026, and a strong pipeline of over $100 million in prospective investor interest has been built - Capital Allocation * Retired $127 million in principal amount of 2026 and 2029 convertible notes using cash to reduce leverage and simplify the capital structure * Commenced open market share repurchases during the quarter, repurchasing approximately $29 million (1.7 million shares) at an average price of $17.40 through the date of the call * Management believes share repurchases are a highly compelling use of capital at WisdomTree's current valuation, which does not reflect the full value of the firm's tokenization platform, private markets business, and liquid alternatives capabilities - Business Diversification and Growth * Growth was broad-based across geographies, asset classes, and client segments, with no single product or market driving Q2 results; this diversification improves business durability across varied market environments * The Portfolio Solutions (model and SMA) business continues to grow faster than the firm overall, with stickier assets that will support long-term organic growth; current model AUA stands at $9 billion, with inflows outpacing the broader ETF business and running ahead of 2025 momentum - Tokenization Business Positioning * WisdomTree has built a fully regulated, advanced tokenization platform with institutional distribution capabilities and live tokenized products, which management believes is unrecognized in the firm's current valuation * The platform already operates a live tokenized money market fund with 24/7 trading that solves the mismatch between 24/7 modern market demand and legacy batch-processed, business-hour-only settlement infrastructure * A novel filing for the first market tokenized ETF is currently under review, which would open expansion into equity and other product classes if approved

Guidance

- Diluted share count guidance for H2 2026 was revised downward to 152 to 155 million shares, from the prior guidance of 154 million shares. The revision reflects completed share repurchases of 1.7 million shares, adjusted for expected incremental shares from convertible notes based on recent stock price levels - Interest income guidance was revised downward to $8 million from the prior guidance of $10 million, reflecting the reallocation of some interest-bearing assets to fund share repurchases, which management views as a more efficient use of capital - No changes were made to other elements of prior forward guidance - Management expects to continue ongoing share repurchases over time, but has not committed to a specific quarterly repurchase level, balancing capital return, deleveraging, and maintaining flexibility for future strategic initiatives

Segment performance

WisdomTree reports aggregated results rather than detailed financial performance for separate product segments in this call. Total revenues for Q2 2026 were $177.2 million, an 11% increase from Q1 2026 and a 57% increase year-over-year. The Cirrus acquisition contributed $5.4 million in management fees and $6 million in performance fees. Total other revenues were $19.5 million, which included contributions from the Atlantic House acquisition and higher European product AUM, partially offset by moderated European trading activity. Year-to-date revenues grew 53% year-over-year, driven by higher AUM, elevated trading activity versus the prior year, and contributions from the Cirrus and Atlantic House acquisitions. Year-to-date adjusted operating margin hit 41.1%, an expansion of 900 basis points year-over-year, while Q2 2026 adjusted operating margin reached 42.6%. Adjusted net income for Q2 was $48.1 million, or $0.31 per share, representing 72% EPS growth year-over-year and 15% growth quarter-over-quarter. Total assets under management (AUM) hit a record $162.9 billion at quarter end, with record AUM achieved across both the U.S. and European segments. Q2 2026 net inflows totaled $3.1 billion: $2.1 billion in Europe and $1.0 billion in the U.S. Year-to-date net inflows are $9 billion, representing a 13% annualized organic growth rate. Portfolio Solutions/Model AUA reached $9 billion as of Q2 2026, up from $6 billion at the end of 2025.

Risks & headwinds

- No new material risks were explicitly discussed during this earning call. A standard legal disclaimer notes that forward-looking statements are subject to factors that could cause actual results to differ materially from expectations, with relevant risks detailed in WisdomTree's filed SEC reports including the 2025 Form 10-K. Key known uncertainty areas referenced in questions and discussion include: the timing of regulatory approval for the proposed tokenized ETF, variability in quarterly structuring fee revenue from Atlantic House tied to product launch timing, and potential NIMBY community opposition to AI data center development on private farmland held in Ceres portfolio.

Analyst Q&A

• Q: Analyst asks about the cadence of Cirrus flows and incentive fees, and whether these should be modeled as random throughout the year. /

  A: Current quarter Cirrus flows are low due to a planned transition: the flagship first fund was closed to new investments, and the second fund just launched, so this quarter is not representative of the long-term cadence. Performance fees have mild seasonality, with the $6 million earned this quarter considered a relatively normalized level for modeling. Management suggests using 7-8% return on AUM and 15% fee capture as a baseline modeling assumption, and notes the current prospective investor pipeline for the new fund is very strong at over $100 million.

• Q: Analyst asks how WisdomTree is approaching future M&A, and whether future deals will focus on existing high-growth smaller segments like private assets or international expansion. /

  A: M&A will remain a secondary, opportunistic strategy rather than a core growth driver. All potential acquisitions must meet strict guardrails: they must be accretive to earnings, enhance revenue or revenue yield, and be strategically important to the firm, rather than just buying AUM for growth's sake. Management will continue to target opportunities that align with these criteria, particularly in existing high-potential areas like private markets, liquid alternatives, and international expansion.

• Q: Analyst asks what the strategic priorities are for the recently acquired Atlantic House in the second half of 2026 and into 2027. /

  A: The core priority is to expand Atlantic House's existing UK-based defined outcome/derivatives-based strategies to the broader European and U.S. markets. Management plans to launch approximately 15 new ETFs based on these strategies across both regions over the next 18 months. The second priority is to expand Atlantic House's existing structuring and solutions business, which generated $13 million in 2025 revenue in the UK alone, to the full global footprint. Integration has already been very successful in the first two months post-close.

• Q: Analyst asks for an update on WisdomTree's tokenization business pipeline and expansion plans, amid current market uncertainty ahead of new U.S. regulatory clarity. /

  A: The tokenization pipeline is the most robust it has ever been, with growing industry-wide interest from major broker-dealers, fintechs, and financial institutions following recent regulatory progress. WisdomTree already has a live tokenized money market fund, and has filed for what it expects will be the first approved tokenized ETF in the U.S. market; approval would open expansion to tokenized equities and other product classes. Management is very optimistic about long-term growth of the tokenization market, which is expected to expand rapidly even before full regulatory clarity is reached.