WisdomTree, Inc., an investment firm operating through its subsidiaries, primarily functions as a sponsor and manager of exchange-traded funds (ETFs). These ETFs ...
WisdomTree, Inc. (NYSE: WT), headquartered at 250 West 34th Street in New York City, is a global financial innovator with a primary focus on exchange-traded products (ETPs). Since its founding in 1985 as Financial Data Systems, Inc. by Jonathan Steinberg, the company has evolved into a leading asset manager. Under ...WisdomTree, Inc. (NYSE: WT), headquartered at 250 West 34th Street in New York City, is a global financial innovator with a primary focus on exchange-traded products (ETPs). Since its founding in 1985 as Financial Data Systems, Inc. by Jonathan Steinberg, the company has evolved into a leading asset manager. Under Steinberg's leadership as CEO, WisdomTree pioneered the concept of fundamentally weighted indexes, launching its first 20 ETFs in June 2006. As of January 2023, the firm offers 79 different ETFs in the U.S. and a vast array of ETPs in Europe, totaling over 269,000 products globally.
WisdomTree's business model centers on creating and managing ETFs across multiple asset classes, including equities, fixed income, currencies, and alternative investments. It differentiates itself through its proprietary index methodology, which emphasizes factors like dividends and earnings rather than traditional market capitalization. The company also generates revenue by licensing these indexes to external parties for use in their bespoke financial products. Additionally, WisdomTree provides a platform that facilitates the integration of its ETFs into 401(k) retirement plans, and offers specialized investment advisory services to institutional clients.
Financially, WisdomTree sports a market capitalization of approximately $3.25 billion and an enterprise value of $4.03 billion. With revenue per share of $4.25 and a net profit margin of 13.3%, the company maintains a strong gross profit margin of 71.8%. Its return on equity stands at 19.2%, indicating efficient use of shareholder capital. However, the company carries significant debt, with a debt-to-equity ratio of 2.58, which is typical for asset managers using leverage to enhance returns. Operating cash flow per share is a healthy $1.38, offering solid free cash flow yield of 6.1%.
Key people beyond CEO Jonathan Steinberg include the executive team that has driven its growth. The company employs around 360 full-time employees across the U.S., Europe, South America, and Israel, fostering a diverse and inclusive workforce. WisdomTree's strategic focus is on expanding its global footprint, innovating within the ETF space, and leveraging its index expertise to deliver transparent, cost-effective investment solutions. As it celebrates over two decades since its ETF launch, WisdomTree remains committed to challenging traditional finance norms and providing investors with better-structured access to markets.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$493.8M
+15.4%
+11.1%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$109.1M
+63.6%
+291.4%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+72.1%
+0.7%
-2.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+35.3%
+9.9%
+7.1%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+22.1%
+41.8%
+272.3%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$149.2M
+31.7%
+304.5%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+30.2%
+14.1%
+264.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
231.2%
+80.3%
+1.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.75x
-40.1%
-67.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings, and welcome to the WisdomTree Second Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce Jessica Zaloom, Head of Corporate Communications. Please go ahead.
Jessica Zaloom: Good morning. Before we begin, I would like to reference our legal disclaimer available in today's presentation. This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. A number of factors could cause actual results to differ materially from the results discussed in forward-looking statements, including, but not limited to, the risks set forth in this presentation, in the Risk Factors section of WisdomTree's Annual Report on Form 10-K for the year ended December 31, 2025, and in subsequent reports filed with or furnished to the Securities and Exchange Commission. WisdomTree assumes no duty and does not undertake to update any forward-looking statements. Now, it is my pleasure to turn the call over to WisdomTree's CFO, Bryan Joseph Edmiston.
Bryan Joseph Edmiston: Thank you, Jessica, and good morning, everyone. I will begin with a review of our second quarter results followed by updates to our forward-looking guidance before turning the call over to Jarrett and Jono for additional business updates. Our assets under management reached $162.9 billion at quarter end, marking our sixth consecutive quarter of record AUM. Assets increased 7% from March 31, driven by favorable market conditions, positive net inflows and the addition of Atlantic House, which closed on May 1. Record AUM was achieved across both our U.S. and European businesses, reflecting continued growth across our global platform. During the quarter, we generated $3.1 billion of net inflows, including $2.1 billion in Europe and $1 billion in the U.S. Year-to-date net inflows totaled $9 billion, representing annualized organic growth rate of approximately 13%. Flows were generated across a broad range of strategies and geographies, contributing to another quarter of strong organic growth. We also completed the acquisition of Atlantic House, adding more than $4 billion of assets under management along with complementary revenue streams. The acquisition expands our presence in Europe, enhances our capabilities and outcome-oriented and derivatives-based investment solutions, and provides additional avenues for growth across our international business. Alongside our growth initiatives, we continue to execute on our capital management priorities. During the quarter, we retired approximately $127 million principal amount of our convertible notes maturing in 2026 and 2029 using cash to reduce leverage and our capital structure. We also commenced open market share repurchases during the quarter and have repurchased approximately $29 million …
