WisdomTree's Net Income Jumps 75% Amid Digital Asset Push

TL;DR

**WT is crushing it with a 75% net income jump, fueled by digital asset bets and strong advisory fees – buy the dip!**

AI Summary

WisdomTree, Inc. reported a significant financial turnaround for the nine months ended September 30, 2025, with net income soaring to $69.107 million, a substantial increase from $39.385 million in the same period of 2024. This improvement was driven by a rise in total revenues to $346.319 million, up from $317.040 million year-over-year, primarily from advisory fees which grew to $317.275 million from $293.098 million. Operating income also increased to $114.448 million from $102.253 million. However, the company incurred a $13.011 million loss on extinguishment of convertible notes in 2025, following a larger $30.632 million loss in 2024. Cash, cash equivalents, and restricted cash dramatically increased to $555.851 million as of September 30, 2025, from $181.191 million at December 31, 2024, largely due to $475.000 million in proceeds from the issuance of convertible notes. Total liabilities rose to $1,073.593 million from $633.560 million, mainly due to an increase in convertible notes to $805.064 million. The company continues to invest in digital assets and blockchain-enabled financial services, including WisdomTree Connect and WisdomTree Prime, and has seen a significant increase in investments to $26.476 million from $8.922 million.

Why It Matters

WisdomTree's strong financial performance, with net income up 75% and revenues growing, signals robust health in the competitive ETF and digital asset space. For investors, this indicates effective strategy execution and potential for continued growth, especially with significant investments in blockchain-enabled financial services like WisdomTree Prime. Employees benefit from a stable and expanding company, while customers gain access to innovative digital products. In the broader market, WisdomTree's success in digital assets could accelerate the adoption of tokenized real-world assets, challenging traditional financial institutions and intensifying competition among asset managers.

Risk Assessment

Risk Level: medium — The company's risk level is medium due to a significant increase in convertible notes to $805.064 million as of September 30, 2025, up from $512.033 million at December 31, 2024, which substantially increased total liabilities to $1,073.593 million. While net income is up, the company also reported a $13.011 million loss on extinguishment of convertible notes, indicating potential volatility in managing its debt structure.

Analyst Insight

Investors should consider WisdomTree's strong revenue and net income growth, particularly its strategic focus on digital assets, as a positive indicator. However, they should also monitor the increasing convertible note liabilities and associated interest expenses. A balanced approach would be to hold existing positions while closely watching future debt management and digital asset adoption metrics.

Financial Highlights

revenue

$346,319,000

total Assets

$1,447,011,000

total Debt

$1,073,593,000

net Income

$69,107,000

cash Position

$555,851,000

revenue Growth

+9.2%

Revenue Breakdown

Key Numbers

• $69.107M — Net income (Increased from $39.385 million in 2024, a 75% rise for the nine months ended September 30, 2025.)
• $346.319M — Total revenues (Increased from $317.040 million in 2024 for the nine months ended September 30, 2025.)
• $317.275M — Advisory fees (Increased from $293.098 million in 2024 for the nine months ended September 30, 2025.)
• $555.851M — Cash, cash equivalents and restricted cash (Increased from $181.191 million at December 31, 2024.)
• $475.000M — Proceeds from issuance of convertible notes (Contributed to the increase in cash for the nine months ended September 30, 2025.)
• $805.064M — Convertible notes (Increased from $512.033 million at December 31, 2024, as of September 30, 2025.)
• $1,073.593M — Total liabilities (Increased from $633.560 million at December 31, 2024, as of September 30, 2025.)
• $13.011M — Loss on extinguishment of convertible notes (Incurred for the nine months ended September 30, 2025.)
• $26.476M — Investments (Increased from $8.922 million at December 31, 2024, as of September 30, 2025.)
• 140,715,080 — Shares of Common Stock outstanding (As of November 4, 2025.)

Key Players & Entities

• WisdomTree, Inc. (company) — registrant
• SEC (regulator) — Securities and Exchange Commission
• WisdomTree Government Money Market Digital Fund (company) — investment vehicle
• WisdomTree Connect (company) — institutional platform
• WisdomTree Prime (company) — blockchain-native digital wallet
• Ceres Partners, LLC (company) — acquired business
• WisdomTree Bitcoin Fund (company) — exchange-traded fund
• WisdomTree Digital Management, Inc. (company) — investment adviser
• WisdomTree Digital Movement, Inc. (company) — money services business
• FINRA (regulator) — Financial Industry Regulatory Authority

FAQ

Risk Factors

• Convertible Note Obligations [high — financial]: The company has a significant amount of convertible notes outstanding, totaling $805.064 million as of September 30, 2025. While these notes provided substantial cash inflow ($475.000 million from issuance), they also represent a future obligation and potential dilution if converted. The company also incurred losses on extinguishment of these notes ($13.011 million in 2025).
• Investment in Digital Assets and Blockchain [medium — operational]: WisdomTree is heavily investing in digital assets and blockchain-enabled financial services, with investments increasing to $26.476 million from $8.922 million. While this represents a strategic growth area, it also carries inherent risks associated with nascent technologies, regulatory uncertainty, and market volatility.
• Evolving Regulatory Landscape [high — regulatory]: The company operates in a highly regulated financial industry, with specific focus on digital assets and blockchain. Changes in regulations, particularly concerning digital funds, stablecoins, and tokenized assets, could materially impact the company's business model, product offerings, and profitability.
• Market Volatility and Asset Under Management (AUM) Fluctuations [medium — market]: As an asset manager, WisdomTree's revenues are closely tied to the value and flow of assets under management. Market volatility can lead to significant fluctuations in AUM, impacting advisory fee revenue. The company's investments in various financial instruments also expose it to market risk.
• Dependence on Advisory Fees [medium — financial]: A substantial portion of WisdomTree's revenue, $317.275 million out of $346.319 million total revenues for the nine months ended September 30, 2025, is derived from advisory fees. This concentration makes the company vulnerable to shifts in investment strategies or market conditions that affect advisory fee generation.

Industry Context

The asset management industry is undergoing significant transformation driven by technological innovation, particularly in digital assets and blockchain. Companies like WisdomTree are navigating this landscape by investing in new platforms and products, such as tokenized real-world assets and digital wallets. Competition remains intense, with established players and new entrants vying for market share in both traditional and digital investment products.

Regulatory Implications

The evolving regulatory environment for digital assets and blockchain-based financial services presents a significant area of focus. WisdomTree's expansion into these areas requires careful navigation of existing and emerging regulations to ensure compliance and mitigate potential risks associated with new product offerings and technologies.

What Investors Should Do

1. Monitor convertible note conversion and extinguishment activity.
2. Track progress and adoption of digital asset initiatives (WisdomTree Connect, WisdomTree Prime).
3. Analyze the impact of market volatility on AUM and revenue.
4. Assess the company's ability to adapt to regulatory changes in the digital asset space.

Key Dates

• 2025-09-30: Nine months ended September 30, 2025 — Reported significant financial turnaround with net income of $69.107 million and total revenues of $346.319 million.
• 2024-12-31: As of December 31, 2024 — Company had $181.191 million in cash, cash equivalents, and restricted cash, and $633.560 million in total liabilities.
• 2025-11-04: As of November 4, 2025 — 140,715,080 shares of Common Stock outstanding.

Glossary

ETPs

Exchange-Traded Products, which are investment products traded on stock exchanges, similar to stocks. (WisdomTree offers a diverse suite of ETPs as a core part of its business.)

Convertible Notes

Debt securities that can be converted into a predetermined amount of the issuer's equity (common stock) at certain times during their life. (WisdomTree has issued significant convertible notes, impacting its cash position and future capital structure.)

Digital Funds

Mutual funds that utilize blockchain technology, potentially for tokenized real-world assets and stablecoins. (Represents a key area of investment and innovation for WisdomTree.)

WisdomTree Prime

A blockchain-native digital wallet offered by WisdomTree. (Part of the company's strategy to expand into digital asset services.)

AUM

Assets Under Management, the total market value of investments that a financial institution manages on behalf of clients. (WisdomTree's revenue, particularly advisory fees, is directly correlated with its AUM.)

Year-Over-Year Comparison

WisdomTree has demonstrated a strong financial recovery in the nine months ended September 30, 2025, compared to the same period in 2024. Total revenues increased by 9.2% to $346.319 million, primarily driven by a 8.3% rise in advisory fees. Net income saw a substantial surge of 75% to $69.107 million. However, total liabilities have significantly increased, largely due to a rise in convertible notes to $805.064 million from $512.033 million, indicating a more leveraged capital structure. Investments in digital assets have also more than tripled, reflecting a strategic shift towards new technologies.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value WT The New York Stock Exchang

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: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION 4 ITEM 1.

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 4 ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 31 ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 51 ITEM 4.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 52

: OTHER INFORMATION

PART II: OTHER INFORMATION 52 ITEM 1.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 52 ITEM 1A.

RISK FACTORS

RISK FACTORS 52 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 53 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 53 ITEM 4. MINE SAFETY DISCLOSURES 53 ITEM 5. OTHER INFORMATION 53 ITEM 6. EXHIBITS 54 Unless otherwise indicated, references to "the Company," "we," "us," "our" and "WisdomTree" mean WisdomTree, Inc. and its subsidiaries. WisdomTree , WisdomTree Connect, WisdomTree Prime and Modern Alpha are trademarks of WisdomTree, Inc. in the United States and in other countries. All other trademarks are the property of their respective owners. 2 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING This Quarterly Report on Form 10-Q, or Report, contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue" or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect our results. Factors that may cause actual results to differ materially from current expectations

: FINANCIAL

PART I: FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS WisdomTree, Inc. and Subsidiaries Consolidated Balance Sheets (In Thousands, Except Per Share Amounts) September 30, 2025 December 31, 2024 Assets (unaudited) Current assets: Cash, cash equivalents and restricted cash (including $ 78,222 and $ 11,282 invested in the WisdomTree Government Money Market Digital Fund at September 30, 2025 and December 31, 2024, respectively) (Note 3) $ 555,851 $ 181,191 Financial instruments owned, at fair value (including $ 97,632 and $ 78,540 invested in WisdomTree products at September 30, 2025 and December 31, 2024, respectively) (Note 5) 104,283 85,439 Accounts receivable (including $ 40,684 and $ 34,959 due from related parties at September 30, 2025 and December 31, 2024, respectively) 46,630 44,866 Prepaid expenses 7,799 5,340 Other current assets 1,844 1,542 Total current assets 716,407 318,378 Fixed assets, net 307 336 Deferred tax assets, net (Note 17) 8,010 11,656 Investments (Note 6) 26,476 8,922 Right of use assets—operating leases (Note 10) 1,768 880 Goodwill (Note 19) 86,841 86,841 Intangible assets, net (Note 19) 606,452 605,896 Other noncurrent assets 750 631 Total assets $ 1,447,011 $ 1,033,540 Liabilities and stockholders' equity Liabilities Current liabilities: Convertible notes—current (Note 8) $ 149,386 $ — Compensation and benefits payable 34,287 39,701 Fund management and administration payable 30,991 31,135 Payable to Gold Bullion Holdings (Jersey) Limited ("GBH") (Note 9) 14,804 14,804 Operating lease liabilities (Note 10) 1,258 709 Income taxes payable 701 724 Accounts payable and other liabilities 23,014 22,124 Total current liabilities 254,441 109,197 Convertible notes (Note 8) 805,064 512,033 Payable to GBH (Note 9) 13,564 12,159 Operating lease liabilities (Note 10) 524 171 Total liabilities 1,073,593 633,560 Contingencies (Note 11) Stockholders' equi

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (In Thousands, Except Share and Per Share Amounts) 1. Organization and Description of Business WisdomTree, Inc., through its subsidiaries in the U.S. and Europe (collectively, "WisdomTree" or the "Company"), is a global financial innovator, offering a diverse suite of exchange-traded products ("ETPs"), models, solutions, as well as digital asset-related products. Building on its heritage of innovation, the Company offers next-generation digital products and services related to tokenized real world assets and stablecoins, including blockchain-enabled mutual funds ("Digital Funds"), as well as its institutional platform, WisdomTree Connect, and blockchain-native digital wallet, WisdomTree Prime. The Company has the following wholly-owned operating subsidiaries: WisdomTree Asset Management, Inc. is a New York based investment adviser registered with the SEC, providing investment advisory and other management services to the WisdomTree Trust ("WTT") and WisdomTree exchange-traded funds ("ETFs"). The WisdomTree ETFs are issued in the U.S. by WTT. WTT is a non-consolidated Delaware statutory trust registered with the SEC as an open-end management investment company. The Company has licensed to WTT the use of certain of its own indexes on an exclusive basis for the WisdomTree ETFs in the U.S. WisdomTree Management Jersey Limited ("ManJer") is a Jersey based management company providing management services to seven issuers (the "ManJer Issuers") in respect of the ETPs issued and listed by the ManJer Issuers covering commodity, currency, cryptocurrency and leveraged-and-inverse strategies. WisdomTree Multi Asset Management Limited ("WTMAML") is a Jersey based management company providing management services to WisdomTree Multi Asset Issuer PLC ("WMAI") in respect of the ETPs issued by WMAI. WMAI is a non-consolidated public limited company domiciled in Ireland. WisdomTree Management Limited ("WML") is an Ireland based man

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