WisdomTree Operating Margin Expands Again as AUM Hits Record

The Tip Desk · October 30, 2026 · 4 min read

Third-quarter operating income margin reached 41.3% as assets under management ended at a record $171.0 billion.

WisdomTree, Inc. (WT), a modern global asset manager, reported a 41.3% operating income margin for the third quarter of 2026, a 0.8-point sequential increase the company attributed primarily to higher revenues.

The GAAP margin followed a 330-basis-point sequential expansion in the second quarter. On an adjusted basis that excludes intangible amortization and acquisition-related costs, the operating margin was 43.1%.

Operating revenues were $179.4 million, up 1.3% from the prior quarter after an 11.1% sequential increase in the second quarter. Higher average AUM was partly offset by lower transaction fees from European ETPs and lower performance fees. Versus the third quarter of 2025, revenues increased 42.8%, which the company said reflected higher average AUM, a higher average advisory fee, revenues from the Ceres Partners and Atlantic House acquisitions, and increased other revenues from European listed ETPs.

Average AUM was $170.5 billion. The average advisory fee held at 0.36%, unchanged from the prior quarter and 1 basis point above the 0.35% rate a year earlier. Revenue yield fell 1 basis point to 0.42% on lower European ETP transaction fees and lower performance fees.

Ending AUM reached a record $171.0 billion, up 5.0% from the prior quarter after a 6.7% sequential increase in the second quarter, from net inflows and market appreciation. Net inflows were $4.6 billion, up from $3.1 billion in the prior quarter, primarily into fixed income, commodity and U.S. equity products across the United States and Europe.

Fixed income inflows were $2.7 billion, versus $320 million in the prior quarter, lifting ending fixed income assets to $25.2 billion. Commodity and currency inflows were $1.0 billion, with ending assets of $41.1 billion. U.S. equity inflows were $769 million, with ending assets of $47.2 billion. International developed market equity turned to $135 million of outflows after $749 million of inflows in the prior quarter. Emerging market equity outflows were $106 million. Alternatives inflows were $52 million after the Atlantic House acquisition added $4.1 billion of assets in the second quarter; ending alternatives assets were $5.9 billion. Cryptocurrency ending assets rose to $2.4 billion from $1.6 billion, with $42 million of inflows and $741 million of market appreciation. Onchain products ended the quarter with $1.3 billion of assets after $509 million of inflows.

Net income was $49.2 million, or $0.32 a share diluted, versus $44.3 million and $0.28 a share in the prior quarter. Adjusted net income was $49.5 million. Gross margin was 83.0%, essentially unchanged from the prior quarter after a 1.5-point sequential decline in the second quarter. Operating expenses were essentially unchanged from the second quarter.

Interest expense decreased 9.0% from the second quarter on a lower level of debt outstanding after retiring $18.1 million of 2029 convertible notes for $32.3 million in cash. Interest income decreased 42.5% from the second quarter, reflecting fewer interest-earning assets after debt retirements and stock repurchases. The company repurchased $10.6 million of common stock, about 0.5 million shares at an average $21.29, after $25.9 million of buybacks in the second quarter. It declared a $0.03 quarterly dividend payable November 25, 2026. Headcount rose to 438 from 414 at June 30.

For the nine months ended September 30, 2026, year-to-date net inflows exceeded $13.6 billion, a 13% annualized organic growth rate. Year-to-date operating margin was 39.8% (41.8% as adjusted), a 6.8-point increase (7.5 points as adjusted) from the prior-year nine-month period, which the company said reflected operating leverage partly offset by Ceres and Atlantic House intangible amortization.

President and COO Jarrett Lilien said the quarter reflected record AUM, $4.6 billion of net inflows and contributions across the global platform, and that organic growth, distribution and operating discipline were driving operating leverage and margin expansion. CEO Jonathan Steinberg said WisdomTree is positioned at the intersection of democratized investing, public-private market convergence and tokenization.