WisdomTree Q2 Earnings Call Highlights

Record growth: WisdomTree’s second-quarter AUM reached $162.9 billion, up 7% sequentially, supported by $3.1 billion in net inflows and favorable markets. Revenue rose 57% year over year to $177.2 million, while adjusted operating margin reached 42.6%. Atlantic House acquisition expands capabilities: Completed May 1, the acquisition added more than $4 billion in AUM and strengthens WisdomTree’s European, outcome-oriented and derivatives-based offerings. Management plans to launch about 15 ETFs using Atlantic House strategies over the next 18 months. Capital allocation and new growth initiatives: WisdomTree retired about $127 million of convertible debt and repurchased roughly $29 million of shares, while continuing to invest in portfolio solutions and tokenized financial products. Model assets rose to $9 billion, and management said interest in its tokenization pipeline remains strong. WisdomTree NYSE: WT reported record assets under management and higher revenue in the second quarter of 2026, aided by net inflows, favorable markets and the acquisition of Atlantic House. Assets under management totaled $162.9 billion at quarter-end, up 7% from March 31 and marking the company’s sixth consecutive quarter of record AUM, Chief Financial Officer Bryan Edmiston said. AUM records were reached in both the U.S. and European businesses. WisdomTree said global AUM had subsequently risen to about $164 billion, reflecting $700 million of net inflows and positive market movement since quarter-end. The company generated $3.1 billion of quarterly net inflows, including $2.1 billion in Europe and $1 billion in the U.S. Year-to-date net inflows totaled $9 billion, equivalent to an approximately 13% annualized organic growth rate, according to Edmiston. Second-quarter revenue was $177.2 million, rising 11% sequentially and 57% from a year earlier. Edmiston attributed the increase to higher AUM, the Atlantic House acquisition, contributions from Ceres and growth in other revenue. Ceres contributed $5.4 million in management fees and $6 million in performance fees during the quarter. Other revenue totaled $19.5 million, reflecting higher AUM in European products and Atlantic House revenue, partly offset by more moderate European trading activity. WisdomTree reported adjusted net income of $48.1 million, or $0.31 per share. Chief Executive Officer Jonathan Steinberg said adjusted operating margin reached 42.6% in the quarter, while Edmiston said the year-to-date adjusted operating margin was 41.1%, up 900 basis points from the prior-year period. “Surpassing a 40% operating margin marks an important milestone and underscores the scalability of our operating model as we continue to grow,” Edmiston said. Steinberg said earnings per share increased 72% year over year and 15% from the preceding quarter. He also pointed to the company’s investments in private markets, liquid alternatives and tokenized financial products as components of WisdomTree’s broader growth strategy. WisdomTree completed its acquisition of Atlantic House on May 1, adding more than $4 billion in AUM. The acquisition expands the company’s European presence and adds outcome-oriented and derivatives-based investment capabilities, management said. During the question-and-answer session, Will Peck said Atlantic House’s models business has about $1.5 billion in assets under administration and generates a 25-basis-point fee. He said the business is not expected to fluctuate mat...