WisdomTree, Inc. (WT) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This Quarterly Report on Form 10-Q covers the period ended June 30, 2026. WisdomTree, Inc. operates as a global financial innovator offering exchange-traded products (ETPs), private market investments, and digital asset-related products. The company operates as a single segment. As of June 30, 2026, total Assets Under Management (AUM) reached approximately $162.9 billion.
Key Financial Metrics
| Metric | Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 |
|---|---|---|
| Total Revenues | $177.2 million | $336.6 million |
| Operating Income | $71.8 million | $131.2 million |
| Net Income | $44.3 million | $21.2 million |
| Diluted EPS | $0.28 | $0.14 |
| Operating Cash Flow | N/A | $93.5 million |
| Cash & Equivalents | $294.8 million | $294.8 million |
| Total Debt (Convertible Notes) | $1.097 billion (Principal) | $1.097 billion (Principal) |
Note: Net income for the six-month period was significantly impacted by a $68.9 million loss on the repurchase of convertible notes.
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased 57.3% year-over-year for the quarter and 52.5% for the six-month period. This growth was driven by higher average AUM, increased advisory fees, and revenue contributions from the acquisitions of Ceres Partners and Atlantic House.
- Expense Increases: Operating expenses rose 35.1% for the quarter, primarily due to higher compensation, increased headcount (414 vs. 321 in 2025), and amortization of intangible assets from recent acquisitions.
- Acquisitions:
- Atlantic House: Completed May 1, 2026, for approximately $209 million. Added $4.1 billion in AUM and contributed $5.9 million in revenue for the quarter.
- Ceres Partners: Completed October 1, 2025. Contributed management and performance fees.
- Debt Restructuring: The company retired $75 million of 2026 Notes and repurchased $51.9 million of 2029 Notes, recognizing a $68.9 million loss on the repurchase of convertible notes for the six-month period.
Guidance, Outlook, and Risks
- 2026 Guidance:
- Compensation to Revenue Ratio: Estimated at 26% to 28%.
- Discretionary Spending: Estimated at $83.0 million to $89.0 million (excluding intangible amortization).
- Gross Margin: Estimated at 83.0% to 84.0%.
- Interest Expense: Estimated at $54.0 million.
- Effective Tax Rate: Estimated at 24.0% to 25.0% (normalized).
- Capital Allocation: The company maintains a share repurchase program with $199.1 million remaining. During Q2, it repurchased 1.49 million shares for $25.9 million. Quarterly dividends remain at $0.03 per share.
- Risks & Contingencies:
- Legal Proceedings: Two appealed claims related to the closure of the WisdomTree WTI Crude Oil 3x Daily Leveraged ETP remain, with total damages sought of approximately $17.4 million. The company expects insurance coverage.
- Convertible Notes: $18.1 million of 2029 Notes are due for redemption in September 2026.
- Market Risk: Fluctuations in AUM due to market volatility, interest rates, and commodity prices directly impact revenue.
Investor Verification Checklist
- Debt Maturity: Verify the company's liquidity position to cover the $18.1 million redemption of 2029 Notes due September 2, 2026.
- Acquisition Integration: Monitor the realization of synergies and revenue growth from the Atlantic House and Ceres acquisitions against the earnout targets (Ceres CAGR of 12-22%).
- Non-GAAP Adjustments: Review the reconciliation of GAAP Net Income to Adjusted Net Income, specifically the exclusion of the $68.9 million convertible note loss and intangible amortization.
- Legal Exposure: Track the status of the appealed litigation regarding the 3OIL ETP closure.
- Share Count: Monitor the impact of the share repurchase program and potential dilution from convertible note conversions if the stock price exceeds conversion prices ($19.15 for 2030 Notes, $21.58 for 2031 Notes).