WisdomTree (WT) AI Stock Analysis

• Market Cap: $2.10B
• Dividend Yield: 0.95%
• Average Volume (3M): 2.99M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 1.05
• Revenue Growth: 12.05%
• EPS Growth: 120.13%
• Country: US
• Employees: 315
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.29
• Shares Outstanding: 141,616,700
• 10 Day Avg. Volume: 2,091,835
• 30 Day Avg. Volume: 2,993,576
• PEG Ratio: 0.12
• Price to Book (P/B): 4.14
• Price to Sales (P/S): 3.47
• P/FCF Ratio: 11.47
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 5.56
• Enterprise Value/Gross Profit: 8.23
• Enterprise Value/Ebitda: 15.88
• 1Y Price Target: $18.65
• Price Target Upside: 25.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.13
• Revenue Forecast (FY): $648.04M

• Rating: 67 Neutral
• Price Target: $16.50 ▲(11.19% Upside)
• Action: Downgraded Date: 03/16/26
• Date: Action: Downgraded 03/16/26

The score is driven by improving profitability, strong AUM/inflow momentum and supportive 2026 operating leverage guidance, partially offset by meaningfully higher leverage on the balance sheet and currently weak technical momentum.

Positive Factors

Record & growing AUM

Sustained AUM growth provides a durable fee base and scale economics for WisdomTree. Higher AUM increases recurring advisory revenues, supports operating leverage and marketing ROI, and helps smooth fixed-cost absorption across products, improving revenue resilience over the medium term.

Improved profitability and cash generation

Material margin expansion and FCF growth indicate durable operating strength: high operating margins and cash conversion enable reinvestment in distribution, support dividends and debt reduction, and provide a buffer through market cycles, underpinning sustained profitability.

Strategic inorganic expansion & European footprint

The Atlantic House deal and earlier Ceres acquisition structurally broaden product capabilities (outcomes/derivatives, private assets) and deepen European adviser distribution. These moves diversify revenue streams and accelerate product innovation, enhancing long‑term growth optionality and cross‑sell potential.

Negative Factors

Sharply higher leverage

The step-up in debt materially increases financial risk and interest sensitivity; higher leverage reduces flexibility to invest or return capital and raises vulnerability to AUM declines. In a downturn, elevated debt can amplify earnings volatility and constrain strategic options.

Convertible-linked dilution and interest costs

Potential share dilution from convertibles and persistent interest expense weigh on per‑share metrics and free cash available for growth or buybacks. Until convertibles are retired, financing costs and dilution can limit the company’s ability to deleverage and fully monetize margin gains.

Flow variability and lumpy performance fees

Revenue tied to net flows and performance fees creates structural volatility: AUM and fee revenue can swing quarter to quarter with market rotations or asset‑class shifts. This makes earnings less predictable, complicates resource planning and can pressure margins if inflows decelerate.

WisdomTree Business Overview & Revenue Model

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.

How the Company Makes Money

WisdomTree generates the majority of its revenue from investment advisory and management fees earned on assets under management (AUM) in its ETFs/ETPs and other managed products. These fees are typically charged as an annual expense ratio (or management fee) calculated as a percentage of average AUM and accrued daily, so revenue generally rises and falls with (a) net inflows/outflows and (b) market movements that change AUM levels. The company may also earn other operating revenue associated with its products and platform services (e.g., service/administration-related fees) and interest income on corporate cash and seed capital, but specific amounts and mix are not provided here. Key factors influencing earnings include AUM scale, product fee rates, distribution reach via brokerage and advisory platforms, the cost of fund operations and marketing, and market volatility that affects AUM. If WisdomTree has material revenue-sharing arrangements with distributors or other partnerships affecting net economics, those arrangements exist in industry practice but specific partner terms are null.

WisdomTree Financial Statement Overview

Summary

Income statement strength (accelerating 2025 revenue growth and materially higher net margin) and solid free cash flow growth are partly offset by a sharp 2025 leverage increase (debt up to $956.6M; debt-to-equity 2.31x), raising balance sheet risk.

Income Statement

Revenue growth accelerated in 2025 (up 8.0% vs. near-flat growth in 2024), and profitability strengthened meaningfully, with net margin improving to 22.1% from 15.6% in 2024. Operating profitability is solid (2025 operating margin ~35.3% and EBITDA margin ~36.0%), and results show a clear recovery from the 2020 loss year. Offsetting this, profit margins have been somewhat volatile over the period (notably 2023’s unusually high net margin vs. 2024), suggesting earnings can swing with market/fee dynamics.

Balance Sheet

Balance sheet risk increased in 2025 as total debt rose sharply to $956.6M from $512.9M in 2024, pushing debt to equity up to 2.31x (from 1.28x). While returns on equity are strong (26.4% in 2025) and equity grew modestly, the step-up in leverage reduces financial flexibility and raises sensitivity to earnings or market downturns relative to prior years (e.g., 2023 debt to equity was only ~0.51x).

Cash Flow

Cash generation is a key strength: free cash flow closely tracks reported earnings (free cash flow roughly equal to net income in 2025), and free cash flow grew a strong 17.4% in 2025. However, operating cash flow covered a smaller portion of earnings in 2025 than in 2024 (coverage fell to ~0.52 from ~1.04), indicating weaker cash conversion year-over-year even though absolute cash flow increased.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	493.75M	427.74M	349.04M	301.35M	304.32M
Gross Profit	356.07M	306.46M	168.16M	138.69M	157.24M
EBITDA	177.97M	117.37M	136.41M	56.11M	71.69M
Net Income	109.13M	66.69M	102.55M	50.68M	49.80M
Balance Sheet
Total Assets	1.51B	1.03B	944.14M	1.03B	1.04B
Cash, Cash Equivalents and Short-Term Investments	418.85M	266.63M	188.03M	258.34M	267.88M
Total Debt	956.59M	512.91M	275.47M	322.68M	319.16M
Total Liabilities	1.10B	633.56M	402.43M	728.21M	768.44M
Stockholders Equity	413.67M	399.98M	541.71M	305.61M	269.42M
Cash Flow
Free Cash Flow	149.24M	113.32M	83.34M	54.87M	75.03M
Operating Cash Flow	149.46M	113.46M	85.60M	55.09M	75.32M
Investing Cash Flow	-313.03M	-23.88M	82.05M	-37.66M	-99.63M
Financing Cash Flow	288.28M	-36.00M	-171.64M	-22.78M	92.55M

WisdomTree Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.84
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WT, the sentiment is Neutral. The current price of 14.84 is below the 20-day moving average (MA) of 16.56, below the 50-day MA of 15.73, and above the 200-day MA of 13.16, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 35.57 is Neutral, neither overbought nor oversold. The STOCH value of 3.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WT.

WisdomTree Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AAMI	69 Neutral	$1.81B	12.09	7024.00%	0.08%	21.53%	42.18%
PAX	69 Neutral	$1.79B	29.32	14.71%	3.78%	22.09%	58.98%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WT	67 Neutral	$2.10B	15.68	26.49%	0.95%	12.05%	120.13%
BBT	65 Neutral	$2.41B	25.54	3.20%	3.21%	21.37%	17.19%
GCMG	62 Neutral	$2.08B	8.56	-863.72%	3.91%	18.33%	109.57%
VRTS	55 Neutral	$839.75M	8.05	15.07%	5.41%	-3.07%	18.00%

WisdomTree Corporate Events

WisdomTree Acquires Atlantic House to Expand ETF Platform

On March 13, 2026, WisdomTree agreed to acquire London-based Atlantic House Holdings Limited, a derivatives-focused, systematic investment manager with roughly £4.1 billion in assets, for £150 million in cash plus working capital adjustments. The deal, announced publicly on March 16, 2026, is expected to close in the second quarter of 2026, subject to regulatory approvals, financing and customary closing conditions, and includes standard warranties, non-compete covenants and protections around employment of key staff.

WisdomTree plans to use the acquisition to expand its global defined outcome and derivatives ETF capabilities, extend its Models and Portfolio Solutions platform into the U.K. wealth market and deepen its adviser distribution footprint across Europe. The transaction is positioned as a disciplined, growth-oriented move that should modestly boost earnings in 2026, diversify and improve the quality of the company’s revenue mix, and lift total assets under management to about $163 billion once Atlantic House is integrated and its strategies are rolled out across WisdomTree’s ETF and model portfolio platforms.

The most recent analyst rating on (WT) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on WisdomTree stock, see the WT Stock Forecast page.

WisdomTree Reports Record AUM and Strong Q4 2025 Results

On January 28, 2026, WisdomTree’s board declared a quarterly cash dividend of $0.03 per share, payable on February 25, 2026 to shareholders of record as of February 11, 2026, underscoring the company’s ongoing capital return to investors. Reporting fourth-quarter 2025 results on January 30, 2026, the firm posted record assets under management of $144.5 billion, net income of $40.0 million (diluted EPS of $0.28), and an operating income margin of 40.5%, with operating revenues rising 17.4% from the prior quarter, driven largely by the acquisition of Ceres Partners and higher European ETP revenues; despite modest net outflows in the quarter, WisdomTree achieved 320 basis points of annual operating margin expansion for 2025, $8.5 billion in full-year net inflows and roughly 8% organic growth, while management highlighted growing contributions from model portfolios, SMAs, tokenized assets and private markets, along with multiple industry awards that reinforce its competitive positioning and strategic momentum entering 2026.

The most recent analyst rating on (WT) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on WisdomTree stock, see the WT Stock Forecast page.