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    WT
    Earnings call· Jun 2026(Q2 FY26)

    WisdomTree Q2 FY26 earnings call WT

    Jul 31, 2026 Source

    Executive summary

    WisdomTree Q2 FY26 — Record AUM and Strong Organic Growth

    WisdomTree delivered a strong Q2 FY26, achieving record AUM and robust organic growth driven by diversified inflows across geographies and asset classes. The company's operating model demonstrated significant leverage, translating top-line growth into expanding profitability and EPS growth. Strategic acquisitions like Atlantic House and Cerus are integrating well, while disciplined capital allocation includes share repurchases and debt reduction.

    Highlights

    5

    • Achieved record AUM of $162.9 billion at quarter end, marking the sixth consecutive quarter of record AUM.

    • Generated $3.1 billion of net inflows in Q2, including $2.1 billion in Europe and $1 billion in the U.S.

    • Year-to-date net inflows totaled $9 billion, representing an annualized organic growth rate of approximately 13%.

    • Adjusted operating margin expanded to 41.1% year-to-date, a 900 basis point increase compared to the prior year.

    • Adjusted net income for the quarter was $48.1 million or $0.31 per share, with EPS growth up 72% YoY and 15% QoQ.

    Concerns

    2

    • Interest income guidance updated to $8 million from $10 million, reflecting the allocation of a portion of interest-earning assets to share repurchases.

    • Digital assets experienced some outflows this quarter, contributing to general market noise.

    Guidance & targets

    3
    CategoryTargetConfidence
    Diluted shares outstanding
    $152 million to $155 million
    medium materiality
    High
    Interest income
    $8 million
    low materiality
    High
    New ETF launches from Atlantic House strategies
    15 ETFs
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    U.S.
    Contributed to overall strong organic growth.
    Net inflows: $1 billion
    		————
    Europe
    Contributed to overall strong organic growth, with record AUM achieved.
    Net inflows: $2.1 billion
    		————

    Operational metrics

    22
    Assets Under Management (AUM)
    $162.9 billion7% from March 31
    Q2 FY26 end

    Record AUM, sixth consecutive quarter of record AUM.

    Assets Under Management (AUM)
    $164 billion1% up since quarter end
    Current (post Q2 end)

    Reflects $700 million of net inflows and positive market movements since quarter end.

    Net inflows
    $3.1 billion
    Q2 FY26

    Includes $2.1 billion in Europe and $1 billion in the U.S.

    Net inflows
    $9 billion
    YTD FY26

    Represents an annualized organic growth rate of approximately 13%.

    Organic growth rate
    13%annualized
    YTD FY26

    Based on year-to-date net inflows.

    Revenue
    $177.2 million11% from Q1; 57% from prior year quarter
    Q2 FY26

    Driven by higher AUM, Atlantic House acquisition, Cerus contributions, and growth in other revenues.

    Adjusted operating margin
    41.1%900 basis points compared to prior year period
    YTD FY26

    Surpassing 40% marks an important milestone and underscores scalability.

    Adjusted operating margin
    42.6%
    Q2 FY26

    Stated by Jonathan Steinberg in his remarks.

    Adjusted net income
    $48.1 million
    Q2 FY26

    Reported for the quarter.

    Adjusted EPS
    $0.3172% YoY; 15% QoQ
    Q2 FY26

    Reported for the quarter.

    Share repurchases
    $29 million
    Q2 FY26 to call date

    Commenced open market share repurchases during the quarter.

    Convertible notes retired
    $127 million
    Q2 FY26

    Retired using cash to reduce leverage and simplify capital structure.

    Cerus management fees
    $5.4 million
    Q2 FY26

    Contribution from Cerus acquisition.

    Cerus performance fees
    $6 millionvs $3 million in prior quarter
    Q2 FY26

    Contribution from Cerus acquisition, considered a more normalized number.

    Other revenues
    $19.5 millionvs $16 million last quarter
    Q2 FY26

    Reflected higher AUM in European products and revenues from Atlantic House, partly offset by more moderate European trading activity.

    Atlantic House AUA (models business)
    $1.5 billion
    Current

    Rolls through other revenue, not expected to fluctuate meaningfully quarter-to-quarter.

    Atlantic House structuring fees
    $13 million
    FY25

    Baseline number for prior year, can ebb and flow each quarter.

    Incremental margins
    more than 50%
    Consistent

    Consistently generated as part of the operating model.

    Compound annual EPS growth
    30%
    Past 5 years

    Achieved through the financial model.

    Compound annual EPS growth
    more than 50%
    Past 3 years

    Achieved through the financial model.

    Tokenization platform unrecognized value
    $1 billion
    Current

    Management's estimate of value in their Onchain platform not reflected in current valuation.

    Models AUA
    $9 billionup from $6 billion last year
    Current

    Momentum is increasing, outpacing the ETF business as a whole.

    Industry KPIs

    4
    MetricValueDetails
    Organic fee growth13%%
    Fundraising inflows$3.1 billionUSD
    Performance revenue$6 millionUSD
    Deployment realizations—

    Product announcements

    1
    ProductTypeDetails
    Tokenized ETFroadmap

    Deals & partnerships

    2
    Atlantic HouseAcquisition of an asset manager specializing in outcome-oriented and derivatives-based investment solutions.

    Closed on May 1, expands presence in Europe and enhances capabilities.

    CerusAcquisition of a private assets manager.

    Integration continues, with Fund II recently launched and a strong pipeline of over 100 interested investors representing over $100 million of assets.

    Risks & headwinds

    3
    Interest income reductionFull year FY26

    Updated guidance to $8 million from $10 million

    Mitigation: Allocation of interest-earning assets to share repurchases, viewed as a more efficient use of capital.

    Digital assets market noise and outflowsQ2 FY26

    Digital assets seem to have a little bit of outflows this quarter

    Mitigation: Management remains optimistic about the long-term growth trajectory of the digital asset market and their ability to grow share.

    Moderate European trading activityQ2 FY26

    Partly offset revenues from Atlantic House

    Mitigation: Markets are not as volatile as they once were, impacting transaction fees in European products.

    What to watch in Q3 FY26

    5

    Cerus Fund II Inflows

    next quarter
    CurrentFund I closed, Fund II launched in June, $5 million flows in Q2
    TargetIncreased inflows into Fund II, reflecting strong pipeline

    Why it matters

    Indicates successful transition and continued growth in the private assets business, a key strategic area.

    On the flows, if you recall, we generated, I think it was $75 million in the first quarter. I suggest that's a nice quarter for us. It was about $5 million this quarter, but we just -- we closed the flagship fund to new investment. We just launched Fund II.

    Q&A highlights

    7

    How should we model the cadence of Cerus flows and incentive fees, given potential randomness?

    Management explained that Cerus flows are in a transition period due to Fund I closing and Fund II launching, with a strong pipeline for Fund II. Performance fees are seasonal, with $6 million this quarter being a more normalized run rate, and suggested modeling based on AUM and a reasonable rate of return.

    “On the flows, if you recall, we generated, I think it was $75 million in the first quarter. I suggest that's a nice quarter for us. It was about $5 million this quarter, but we just -- we closed the flagship fund to new investment. We just launched Fund II. So there's a transition period there with respect to flow cadence.”

    asked by Christoph Kotowski · answered by Bryan Edmiston

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Diversification and Operating Leverage

    Management highlighted the success of building a diversified business across geographies, client channels, and investment capabilities, leading to more durable growth. The operating model consistently generated incremental margins of over 50%, contributing to compound annual EPS growth of 30% over the past five years and over 50% over the past three years. This diversification is seen as key to performing across different market environments rather than relying on single products or themes.

    02

    Acquisition Integration and Pipeline

    The Atlantic House acquisition, closed on May 1, added over $4 billion in AUM and complementary revenue streams, expanding WisdomTree's European presence and liquid alternatives platform. The integration of Cerus continues, with Fund II recently launched and a strong pipeline of over 100 interested investors representing over $100 million in assets. These acquisitions are part of a disciplined M&A strategy focused on accretive and strategically important opportunities.

    03

    Capital Allocation Strategy

    WisdomTree demonstrated disciplined capital allocation by retiring approximately $127 million principal amount of convertible notes and repurchasing $29 million of common stock, representing 1.7 million shares at an average price of $17.40. Management views these repurchases as a compelling opportunity to create long-term shareholder value, especially given the current valuation, while balancing deleveraging and maintaining flexibility for strategic initiatives.

    04

    Tokenization Platform and Digital Assets

    The company emphasized its advanced tokenization platform, which spans regulated infrastructure, tokenized investment products, and institutional distribution. Management believes this platform, including the WTGXX money market fund and a novel tokenized ETF filing, is significantly undervalued by the market, estimating a potential $1 billion in unrecognized value. They highlighted the industry's growing interest in tokenization, viewing it as a solution to modern market demands for real-time, 24/7 operations.

    05

    Farmland Assets and AI Data Centers

    WisdomTree is actively exploring opportunities for its farmland portfolio, including potential AI data center development, driven by the high demand for compute and energy in the global economy. The team is looking at a number of opportunities, which are long-term in nature. Additionally, the company is working towards incorporating private farmland into ETFs, though an exact timeline for this initiative was not provided.

    AI-generated summary of the company’s earnings call. Not investment advice.