Asset management firm WisdomTree (NYSE: WT) announced better-than-expected revenue in Q3 CY2025, with sales up 11% year on year to $125.6 million. Its non-GAAP profit of $0.23 per share was 10.4% above analysts’ consensus estimates.
Is now the time to buy WT? Find out in our full research report (it’s free for active Edge members).
WisdomTree (WT) Q3 CY2025 Highlights:
- Revenue: $125.6 million vs analyst estimates of $122.9 million (11% year-on-year growth, 2.2% beat)
- Adjusted EPS: $0.23 vs analyst estimates of $0.21 (10.4% beat)
- Adjusted EBITDA: $51.15 million vs analyst estimates of $46.42 million (40.7% margin, 10.2% beat)
- Operating Margin: 36.3%, in line with the same quarter last year
- Market Capitalization: $1.63 billion
StockStory’s Take
WisdomTree’s third quarter results were driven by broad-based asset growth and meaningful net inflows across its global product suite. Management highlighted record assets under management (AUM) of $137.2 billion, with net inflows of $2.2 billion supported by strong demand for European gold and cryptocurrency products. CEO Jonathan Steinberg credited the diversification of asset classes, geographies, and client types as a foundation for the firm’s organic growth, stating, “Our scale, stability and growth initiatives have positioned WisdomTree to thrive in the years ahead.”
Looking forward, WisdomTree’s outlook centers on scaling its digital asset platform, integrating the recently acquired Ceres Partners, and leveraging cross-regional product synergies. Management believes higher gross margins and deeper client relationships will underpin future performance, with Steinberg emphasizing, “We believe eventually, nearly everything will go on chain…tokenization of real-world assets over time will change the face of financial services.” The company is also focusing on expanding adviser adoption and pursuing opportunities in both private and digital assets.
Key Insights from Management’s Remarks
Management attributed quarterly momentum to net inflows in European and digital products, the addition of private assets through Ceres, and growth in adviser-driven solutions.
- European inflow strength: WisdomTree saw robust demand for its European-listed gold, cryptocurrency, and defense funds, which management described as key contributors to overall net inflows and growing European AUM to $48.3 billion.
- Ceres acquisition impact: Early October’s acquisition of Ceres Partners marked WisdomTree’s formal entry into private assets, specifically farmland, which management views as a negatively correlated asset class. The deal is expected to improve revenue capture and operating margins by over 200 basis points.
- Digital asset growth: The company’s digital asset AUM reached nearly $600 million, driven by stablecoin issuers and on-chain native businesses using its blockchain-enabled money market fund, with the digital platform now spanning seven public blockchains.
- Advisor model traction: Adviser adoption of WisdomTree’s model portfolios grew significantly, with model AUM up over 50% year-to-date and 13 new custom model clients onboarded in the quarter.
- Broader client engagement: Management noted an increase in both the number of clients and average number of products per client, which they see as the foundation for sustainable organic growth.
Drivers of Future Performance
WisdomTree’s guidance is shaped by digital asset scaling, private market integration, and adviser-driven expansion across regions.
- Digital platform investments: Management plans continued investment in its blockchain-based asset management infrastructure, with expectations that real-world asset tokenization will drive future growth and client engagement.
- Private asset expansion: The integration of Ceres Partners is expected to diversify AUM and revenue streams, with management targeting incremental growth through additional private asset offerings and operational synergies.
- Advisor and product reach: WisdomTree aims to deepen adviser relationships and broaden product adoption, leveraging its cross-regional platform breadth to capture market opportunities in both traditional and digital asset classes.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) the scaling and monetization of WisdomTree’s digital asset offerings, (2) the integration and performance contribution from Ceres Partners’ private asset business, and (3) further growth in adviser-driven AUM, particularly through new model portfolios and cross-regional products. Progress in tokenization initiatives and expansion into new asset classes will also be important markers of execution.
WisdomTree currently trades at $11.68, in line with $11.58 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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