WisdomTree, Inc. Q1 FY2025 earnings call

• Ended the quarter with record AUM of $115.8 billion, up 5.5% from prior quarter. Net inflows $3 billion, annualized organic growth rate 11%.
• In the U.S., over $1.8 billion of inflows, including fixed income and U.S. equity; digital money market fund attracted $100 million AUM. In Europe, over $1.1 billion of inflows, primarily into UCITS ETF suite, with $770 million net inflows into European Defense Fund launched in March.
• Revenue $108 million, down slightly from Q4 but up 11.6% y/y. Adjusted net income $23 million.
• On flows and outlook: Over $3 billion net inflows in Q1. Focus on deepening client relationships; 4% growth in clients using products, average product usage per client up double-digit. Model portfolios AUA $4 billion, up 4% YTD. Portfolio consultations tripled output. Digital assets: Prime expanded to Georgia, Tennessee, North Carolina; tokenized funds had over $100 million YTD flows.

At the end of the quarter, WisdomTree had record AUM of $115.8 billion, up 5.5% from the prior quarter. Net inflows totaled $3 billion, with an annualized organic growth rate of 11%. Revenue for the quarter was $108 million, down slightly from the fourth quarter due to fewer trading days and lower average fee capture, but up 11.6% compared to the same period last year. Adjusted net income for the quarter was $23 million or $0.16 per share.

2025 guidance remains largely unchanged versus what was communicated last quarter.

Factors could cause actual results to differ materially from forward-looking statements, including risks set forth in the WisdomTree annual report on Form 10-K for the year ended December 31, 2024, and subsequent SEC filings.

Q: Could you talk more in detail about the on and the off-ramp opportunity for WisdomTree Prime and AI deployment?

A: Will Peck discussed on/off-ramp as a regulatory grind with measured rollout in summer leading to September. Jarrett Lilien talked about AI deployment in three broad buckets: enhance customer experience/outcomes, growth/efficiency, and decision making, with results seen across sales, research, marketing, etc.

Q: Can you give an update on crypto funds and ETF pipeline?

A: Jeremy Schwartz mentioned focus on bitcoin in US, broad 20 coin basket in Europe with over $100 million YTD flows. Tokenization has robust client pipeline. ETF pipeline includes new opportunities fund in Europe with similar flavors in US being explored.