WisdomTree Reaches Record $171 Billion in Assets Under Management, Reporting Strong Net Inflows and Margin Expansion
Welcome to WisdomTree's Q3 2026 Earnings Call, where the company has just reported a string of impressive achievements. At $171 billion, assets under management (AUM) have reached an all-time high, marking the seventh consecutive quarter of record AUM. This milestone reflects the firm's continued growth across its global platform, with significant increases in both U.S., European, and onchain businesses.
The company generated a staggering $4.6 billion of net inflows during the quarter, with positive contributions across the board, including $2.4 billion in the U.S., $1.7 billion in Europe, and $500 million from onchain. Year-to-date net inflows totaled $13.6 billion, representing an annualized organic growth rate of approximately 13%. These numbers demonstrate the broad-based appeal of WisdomTree's strategies and geographies.
One of the key drivers behind this success is the operating leverage inherent in WisdomTree's business model. As AUM continues to rise, so does revenue, resulting in margin expansion both sequentially and year-over-year. In fact, adjusted operating margins reached 43.1% for the quarter and 41.8% year to date, representing a significant 750 basis points of expansion from the comparable prior year period.
Revenues were $179.4 million during the quarter, an increase of 1% from the second quarter. While lower transaction fees from European ETPs and performance fees did offset some of this growth, the company's overall revenue increased by a substantial 43% compared to the prior year quarter and 49% year to date.
Adjusted net income for the quarter was $49.5 million, or $0.32 per share, underscoring WisdomTree's strong financial performance. Furthermore, the company has remained active in capital management, using cash to retire the remaining principal amount of its 2029 convertible notes and repurchasing approximately $11 million worth of common stock during the quarter.
With a record AUM and continued organic growth driving greater scale and higher earnings, WisdomTree's ability to create long-term value for shareholders has never been stronger. As we look ahead, investors can expect the company to continue delivering on its promise of innovation and growth in the ever-evolving world of financial services.
