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1. Company Snapshot

1.a. Company Description

WisdomTree, Inc., through its subsidiaries, operates as an exchange-traded funds (ETFs) sponsor and asset manager.It offers ETFs in equities, currency, fixed income, and alternatives asset classes.The company also licenses its indexes to third parties for proprietary products, as well as offers a platform to promote the use of WisdomTree ETFs in 401(k) plans.


It develops index using its fundamentally weighted index methodology.In addition, the company provides investment advisory services.The company was founded in 1985 and is based in New York, New York.

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1.b. Last Insights on WT

The recent 3-month performance of WisdomTree, Inc. was negatively impacted by the company's Q4 2024 earnings miss, where it reported a quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.18 per share. This earnings miss, coupled with the company's high medical care ratios, likely hurt its Q4 earnings. Additionally, the company's premium revenue growth was driven by higher premiums in its government-backed Medicaid insurance plans, but this growth was not enough to offset the rising medical care costs.

1.c. Company Highlights

2. WisdomTree's Strong Q4 2025 Earnings Driven by Record AUM and Inflows

WisdomTree reported adjusted revenues of $147.4 million, up 17% from Q3 and 33% year-over-year, driven by higher average assets under management (AUM). The company's AUM reached a record $144.5 billion, up 5% from Q3 and 30% year-over-year. Adjusted net income was $41.2 million or $0.29 per share, beating estimates of $0.23 per share. The Ceres acquisition contributed $12 million of revenues, including $7.1 million of performance fees. The company's compensation to revenue ratio came in at 28%, within the 26-28% guided range.

Publication Date: Mar -08

📋 Highlights
  • Record AUM Growth:: Q4 2025 AUM reached $144.5 billion, up 5% QoQ and 30% YoY, with total 2025 inflows of $8.5 billion driving 8% organic growth.
  • Revenue & Profit Surge:: Adjusted revenues hit $147.4 million (+17% QoQ, +33% YoY), while adjusted net income totaled $41.2 million ($0.29/share), aided by $12 million from the Ceres acquisition.
  • 2026 Guidance:: Forecasts 26-28% compensation-to-revenue ratio, $80-86 million discretionary spending, and a 82-83% gross margin, with $40 million in interest expenses.
  • Tokenization & Digital Assets:: Expanded digital asset use cases (stablecoin issuance, on-chain investing) and partnerships with fintech platforms, alongside $13 million in Europe-driven transaction fee growth.
  • Valuation Potential:: Trading at 7-8x below S&P 500, with a diversified AUM mix (commodities, fixed income, digital assets) and $160 billion AUM base supporting margin expansion and growth resilience.

Growth Opportunities and Strategic Focus

WisdomTree sees opportunities for growth in thematic investing, particularly in Europe, and in commodities, with a focus on precious metals. The company's diversified asset mix, broad ETF product suite, and growth engines in models, SMAs, direct indexing, tokenization, and private markets position it for future growth. The CEO highlighted the company's active conversations with fintech apps, software service providers, and broker-dealers to make its products and services available through their platforms, driving its digital asset base.

Valuation and Outlook

With a P/E Ratio of 20.76 and an ROE of 26.49%, WisdomTree's valuation appears reasonable. The company's strong organic growth and margin expansion should drive multiple expansion, with the stock trading at a discount to the S&P 500. Analysts estimate revenue growth of 8.2% for next year, and with the current AUM of $160 billion, WisdomTree is poised for continued growth. The company's focus on tokenization, private assets, and global ETFs is underappreciated by the market, presenting a potential upside opportunity.

Digital Asset Strategy and Fund Launch Plans

WisdomTree is scaling its business to capitalize on the tokenization trend, with a focus on distribution through direct-to-retail, direct-to-business, and platform sales. The company sees four main use cases for its digital assets: stablecoin issuers, businesses using stablecoins for treasury management, collateral instruments, and on-chain investing. WisdomTree has an ambitious fund launch strategy, with a focus on building out its Modern Alpha and option-based strategies, which should drive further growth.

3. NewsRoom

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WisdomTree Reports Monthly Metrics for March 2026

Apr -13

Source: businesswire.com

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Contrasting Finward Bancorp (NASDAQ:FNWD) and WisdomTree (NYSE:WT)

Apr -13

Source: defenseworld.net

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SG Americas Securities LLC Grows Position in WisdomTree, Inc. $WT

Apr -06

Source: defenseworld.net

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WisdomTree, Inc. (NYSE:WT) Given Average Recommendation of “Moderate Buy” by Brokerages

Mar -29

Source: defenseworld.net

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The Market's Pendulum May Be Swinging Back To Value

Mar -27

Source: seekingalpha.com

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EPS: WisdomTree's Earnings-Based Strategy Offers Limited Upside Potential Vs. SPY

Mar -25

Source: seekingalpha.com

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Why the WisdomTree Cybersecurity Fund Will Soar in the Agentic AI Era

Mar -24

Source: 247wallst.com

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WisdomTree Announces Pricing of Offering of $525.0 Million of Convertible Senior Notes, Related Exercise of $78.75 Million Greenshoe and Concurrent Exchanges of 2026 Notes and 2029 Notes

Mar -24

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.00%)

6. Segments

Exchange Traded Products

Expected Growth: 10%

WisdomTree's 10% growth in Exchange Traded Products is driven by increasing adoption of smart beta and factor-based investing, rising demand for ETFs in fixed income and commodities, expansion into new markets, and strategic partnerships. Additionally, the company's diverse product lineup, strong brand recognition, and cost-effective solutions also contribute to its growth.

7. Detailed Products

ETFs (Exchange-Traded Funds)

WisdomTree offers a range of ETFs that track various asset classes, sectors, and geographic regions, providing investors with diversified investment opportunities.

ETPs (Exchange-Traded Products)

WisdomTree's ETPs provide investors with access to a range of alternative asset classes, including commodities, currencies, and alternative strategies.

Index Funds

WisdomTree's index funds track specific market indexes, providing investors with broad diversification and low costs.

Actively Managed Funds

WisdomTree's actively managed funds are designed to provide investors with alpha-generating investment opportunities, leveraging the expertise of experienced portfolio managers.

Model Portfolios

WisdomTree's model portfolios provide investors with pre-built, diversified investment portfolios that can be used as a starting point for their investment strategies.

8. WisdomTree, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for WisdomTree, Inc. is medium due to the presence of alternative investment products and ETFs offered by competitors.

Bargaining Power Of Customers

The bargaining power of customers is low due to the fragmented nature of the ETF market and the lack of concentration among customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of a few large index providers and the dependence on them for licensing agreements.

Threat Of New Entrants

The threat of new entrants is high due to the low barriers to entry in the ETF market and the increasing popularity of ETFs among investors.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of many established players in the ETF market and the increasing competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.71%
Debt Cost 6.42%
Equity Weight 66.29%
Equity Cost 11.32%
WACC 9.67%
Leverage 50.85%

11. Quality Control: WisdomTree, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Saratoga Investment

A-Score: 6.7/10

Value: 6.3

Growth: 5.1

Quality: 5.9

Yield: 10.0

Momentum: 3.5

Volatility: 9.7

1-Year Total Return ->

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TriplePoint Venture Growth BDC

A-Score: 6.6/10

Value: 7.8

Growth: 3.8

Quality: 7.6

Yield: 10.0

Momentum: 3.5

Volatility: 7.0

1-Year Total Return ->

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BlackRock TCP Capital

A-Score: 5.7/10

Value: 8.6

Growth: 3.2

Quality: 3.4

Yield: 10.0

Momentum: 1.0

Volatility: 8.0

1-Year Total Return ->

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Virtus Investment Partners

A-Score: 5.6/10

Value: 6.2

Growth: 5.1

Quality: 5.3

Yield: 8.0

Momentum: 2.0

Volatility: 7.0

1-Year Total Return ->

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WisdomTree

A-Score: 5.5/10

Value: 3.8

Growth: 6.3

Quality: 7.0

Yield: 3.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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PhenixFIN

A-Score: 5.1/10

Value: 5.7

Growth: 5.0

Quality: 5.6

Yield: 3.0

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.27$

Current Price

17.27$

Potential

-0.00%

Expected Cash-Flows