Key Takeaways
- • WisdomTree reached record assets under management of $152.6 billion in Q1 2026, representing a 5.6% sequential increase from Q4 2025 and marking the company's fifth consecutive quarter of record AUM.
- • Net inflows totaled $5.9 billion in Q1 2026, driven primarily by international developed equity, fixed income, and leveraged/inverse products across U.S. and European markets, with crypto ETPs contributing $137 million in net inflows.
- • Operating revenues increased 8.2% sequentially to $159.5 million, with year-over-year revenue growth of 48%, supported by higher average AUM and increased other revenues from European listed ETPs.
- • WisdomTree issued $603.75 million of convertible senior notes due 2031 at 4.50% interest with a conversion price of $21.58 per share, while repurchasing $350 million aggregate principal of existing 2026 and 2029 convertible notes.
- • Gross margin expanded to 84.4% (up 1.2 points sequentially), though operating income margin declined 3.3 points to 37.2% due to seasonally higher compensation expenses; adjusted operating margin stood at 39.3%.
Summary
WisdomTree, Inc. delivered record first-quarter 2026 results, with assets under management reaching $152.6 billion as of March 31, 2026. This represents a 5.6% increase from the prior quarter and 6% growth from year-end 2025, marking the company's fifth consecutive quarter of record AUM. The growth was driven primarily by net inflows of $5.9 billion and favorable market appreciation. Net inflows were broad-based, with particular strength in international developed equity products, fixed income strategies, and leveraged and inverse products across both U.S. and European markets. WisdomTree's crypto exchange-traded products (ETPs) reported $137 million in net inflows during the quarter, contributing meaningfully to overall inflows.
Operating revenues increased 8.2% sequentially to $159.5 million, reflecting a strong year-over-year comparison of 48% growth. The sequential revenue increase was supported by higher average AUM and increased other revenues attributable to the company's European listed ETPs. The average advisory fee rose to 0.36% from 0.35% in the prior quarter, while the revenue yield remained flat at 0.42%. Gross margin improved to 84.4%, up 1.2 points from the prior quarter, primarily due to higher revenues. However, operating income margin declined 3.3 points to 37.2% (39.3% on an adjusted basis), as the company experienced seasonally higher compensation expenses typical of first-quarter results.
On a GAAP basis, WisdomTree reported a net loss of $23.1 million in Q1 2026, significantly impacted by a $62.3 million loss on extinguishment of convertible notes. This comprised a $16.9 million loss associated with the repurchase of $75 million in principal of 3.25% convertible senior notes due 2026, and a $45.4 million inducement expense related to the repurchase of $275 million in principal of 3.25% convertible senior notes due 2029. On an adjusted basis, the company reported net income of $40.6 million and adjusted earnings per share of $0.27. To refinance the debt activity and strengthen its capital structure, WisdomTree issued $603.75 million of convertible senior notes due 2031, bearing interest at 4.50% annually, with a conversion price of $21.58 per share. These Q1 results underscore WisdomTree's momentum in attracting institutional and retail assets amid evolving market conditions and demonstrate operational leverage despite near-term debt restructuring costs.
Operating revenues increased 8.2% sequentially to $159.5 million, reflecting a strong year-over-year comparison of 48% growth. The sequential revenue increase was supported by higher average AUM and increased other revenues attributable to the company's European listed ETPs. The average advisory fee rose to 0.36% from 0.35% in the prior quarter, while the revenue yield remained flat at 0.42%. Gross margin improved to 84.4%, up 1.2 points from the prior quarter, primarily due to higher revenues. However, operating income margin declined 3.3 points to 37.2% (39.3% on an adjusted basis), as the company experienced seasonally higher compensation expenses typical of first-quarter results.
On a GAAP basis, WisdomTree reported a net loss of $23.1 million in Q1 2026, significantly impacted by a $62.3 million loss on extinguishment of convertible notes. This comprised a $16.9 million loss associated with the repurchase of $75 million in principal of 3.25% convertible senior notes due 2026, and a $45.4 million inducement expense related to the repurchase of $275 million in principal of 3.25% convertible senior notes due 2029. On an adjusted basis, the company reported net income of $40.6 million and adjusted earnings per share of $0.27. To refinance the debt activity and strengthen its capital structure, WisdomTree issued $603.75 million of convertible senior notes due 2031, bearing interest at 4.50% annually, with a conversion price of $21.58 per share. These Q1 results underscore WisdomTree's momentum in attracting institutional and retail assets amid evolving market conditions and demonstrate operational leverage despite near-term debt restructuring costs.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.