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WisdomTree (WT)
NYSE:WT
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WisdomTree
(NYSE:WT)
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Rating:73Outperform
Price Target:
$18.00
▲(9.89% Upside)
Action:ReiteratedDate:02/05/26
The score is driven by strong technical momentum and a positive earnings-call outlook (record AUM, organic growth, and margin expansion guidance). Financial performance is solid but capped by the sharp increase in leverage, while valuation is only moderately supportive given a ~21.9 P/E and a modest ~0.74% dividend yield.
Positive Factors
Record AUM and Organic Inflows
Sustained AUM scale increases the fee base and produces durable revenue upside as markets recover and inflows persist. Record and recurring organic flows diversify revenue sources, enhance operating leverage, and strengthen distribution relationships that support multi-quarter fee income stability.
Product and Geographic Diversification
Rapid growth across Europe, metals, model portfolios and tokenization reduces single-market concentration and broadens fee-bearing AUM. A diversified product mix lowers dependence on one strategy, supports cross-selling, and makes revenue less cyclical over multiple quarters.
Margin Expansion and Cash Generation
Sustained margin expansion and strong free cash flow provide internal funding for growth, dividends, and debt reduction. Higher operating margins (~35%) and FCF growth mean the business converts revenue to cash efficiently, supporting durable profitability even through modest market swings.
Negative Factors
Sharply Higher Leverage
The step-up in leverage materially reduces financial flexibility and raises sensitivity to revenue or market shocks. Higher interest obligations and tighter covenant capacity can constrain strategic moves, increase refinancing risk, and amplify earnings volatility across the next several quarters.
Revenue and Flow Volatility (Performance Fees)
Material reliance on performance fees and uneven net flows makes revenue less predictable quarter-to-quarter. This lumpy revenue mix complicates planning, can swing margins and free cash flow, and reduces visibility into sustainable earnings trends over the medium term.
Rising Discretionary Spend and Convertible-Linked Dilution
Higher planned marketing/distribution spend increases fixed costs and could compress margins if AUM growth slows. Convertible-related potential dilution and associated interest expense raise EPS sensitivity and financing costs, exacerbating the impact of slower revenue or rising rates on shareholder returns.
WisdomTree (WT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.39B
Dividend Yield0.95%
Average Volume (3M)4.45M
Price to Earnings (P/E)22.6
Beta (1Y)1.03
Revenue Growth12.05%
EPS Growth120.13%
CountryUS
Employees315
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.29
Shares Outstanding140,715,070
10 Day Avg. Volume2,829,488
30 Day Avg. Volume4,448,452
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)4.14
Price to Sales (P/S)3.47
P/FCF Ratio11.47
Enterprise Value/Market Cap1.23
Enterprise Value/Revenue5.97
Enterprise Value/Gross Profit8.84
Enterprise Value/Ebitda17.06
Forecast
1Y Price Target
$18.45Price Target Upside12.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)1.12
Revenue Forecast (FY)$645.12M
WisdomTree Business Overview & Revenue Model
Company DescriptionWisdomTree, 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 MoneyWisdomTree generates revenue primarily through management fees charged on the assets under management (AUM) in its ETFs and other investment products. These fees are typically calculated as a percentage of AUM and are collected on an ongoing basis. Additionally, the company may earn performance fees from certain investment strategies that exceed predetermined benchmarks. WisdomTree also engages in securities lending, where it lends out securities held in its funds to generate additional income. Significant partnerships with financial institutions and distribution agreements enhance its market reach and contribute to its overall earnings by facilitating the sale and distribution of its products.
WisdomTree Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Positive
The call emphasized broad-based and diversified growth: record and expanding AUM, strong organic inflows, meaningful revenue and operating margin expansion, and fast traction in metals, European listed products, models/SMAs and tokenization. Management updated guidance reflecting operating leverage (lower comp ratio range and improved gross margin) while outlining intentional incremental investments (higher discretionary spend) and noting a few near-term headwinds (seasonal Q1 comp, forecasting variability from performance fees, modest Q4 outflows, and potential dilution from convertible notes). On balance the positive operational and financial momentum, strategic product and distribution wins, and margin expansion materially outweigh the manageable near-term risks called out on the call.Q4-2025 Updates
Positive Updates
Record and Rapidly Growing AUM
Assets under management ended the year at $144.5B (a record), up 5% from Q3 and over 30% year-over-year; global AUM subsequently reached $160.8B, up $16B or 11% from year-end driven by favorable markets and nearly $2B of net inflows to start the year.
Strong Organic Flows and Growth Rate
Generated $8.5B of net inflows for the year, representing an ~8% organic growth rate; multiple growth engines produced diversified inflows across regions and asset classes.
Material European Franchise Expansion
European listed products AUM rose from $30.7B to $53.3B (~+74%), supported by more than $6B of net inflows (including $4.3B into the UCITS franchise and ~$1B into commodity products), with European revenues rising as ~70% of those revenues are asset-based.
Substantial Revenue and Margin Improvement
Adjusted revenues for the quarter were $147.4M (+17% vs Q3; ~+33% vs prior year quarter); full-year adjusted revenues grew ~15.4% year-over-year and adjusted operating margin expanded nearly 300 basis points to 36.5%.
Successful Ceres Acquisition and Private Assets Expansion
Ceres acquisition (closed Oct 1) added almost $2B in farmland strategies, contributed ~$12M of revenue in the quarter (including $7.1M of performance fees), and expanded annual revenue capture and operating margins by >200 basis points.
Metals and Thematics Momentum
Metals strategies AUM increased 83% with >$1B of net inflows across the suite; metals now represent ~28.5% of global AUM. Thematic launches (e.g., rare earths) saw rapid traction — one rare earth fund grew from $100M in November to $700M; three strategic metals funds total ~$1.4B.
Model/SMAs and Tokenization Traction
Model AUA grew to over $6B from $3.8B at end of 2024 (~+58%); tokenized AUM reached ~$770M from essentially zero a year ago; WisdomTree Connect expanded from 4 to 29 onboarded institutions and wallets holding WisdomTree assets exceeded 3,500.
Updated 2026 Operating Leverage and Guidance Highlights
Guidance forecasts a lower compensation-to-revenue ratio of 26–28% (a ~2 percentage-point downward shift), gross margin 82–83% (vs 81.9% prior year), discretionary spend $80–$86M (planned marketing/sales investments) and interest expense ~ $40M for 2026 with expected decline after convertible note retirements.
Negative Updates
Modest Q4 Outflows and Flow Variability
Management noted modest outflows in Q4 despite strong full-year inflows, indicating some quarter-to-quarter flow volatility and sensitivity to market rotations and product demand.
Increased Discretionary Spending
Discretionary spending guidance increased to $80M–$86M versus $71M last year (incremental marketing, sales/distribution and Ceres-related costs), which could pressure near-term margins if AUM/revenue growth slows.
Near-Term Compensation Seasonality and Q1 Pressure
First-quarter compensation-to-revenue ratio is expected to be ~30% (seasonally higher due to payroll taxes/benefits/year-end bonuses) before stepping down to the 26–28% annual range, creating near-term EPS headwinds in Q1.
Forecasting Uncertainty from Performance Fees and Other Revenue
Ceres contributed $7.1M of performance fees this quarter (driven by farmland price appreciation and solar developments) — management flagged these fees and other revenue items as difficult to forecast and potentially lumpy going forward.
Potential Dilution and Interest Expense from Convertible Notes
Weighted average diluted shares expected to be 152M–157M (vs 145M prior year), implying ~7M–12M incremental shares tied to convertible notes; interest expense forecasted at ~$40M for 2026 until convertible retirements — both items introduce dilution and financing cost considerations.
Company Guidance
For 2026 WisdomTree provided detailed financial guidance: they expect a compensation-to-revenue ratio of 26%–28% (a roughly 2 percentage‑point downward shift versus prior guidance) with first‑quarter comp running about 30% before stepping down to the annual range; discretionary spending of $80M–$86M (vs. $71M in 2025) primarily for marketing, sales/distribution and Ceres-related costs; gross margin of 82%–83% (vs. 81.9% in 2025) with upside as AUM grows; third‑party distribution expense of $17M–$19M (vs. $16M); interest expense of about $40M for the year (roughly $10.5M in Q1 and Q2, then about $9.5M per quarter in H2) and interest income of ~ $8M; an adjusted tax rate of ~24%; and weighted average diluted shares of 152M–157M (vs. 145M last year), which contemplates roughly $7M–$12M of incremental shares tied to convertible notes under recent stock price assumptions.WisdomTree Financial Statement Overview
Summary
Income statement strength (2025 revenue growth +8% and net margin up to 22.1%) and solid free cash flow growth (+17.4%) are tempered by higher balance sheet risk: debt jumped to $956.6M and debt-to-equity rose to 2.31x, reducing financial flexibility despite strong ROE (26.4%).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.78
Positive
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).54
Neutral
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.69
Positive
| 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
Positive
16.38
Price Trends
14.30
Positive
13.20
Positive
12.59
Positive
Market Momentum
0.59
Positive
59.64
Neutral
71.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WT, the sentiment is Positive. The current price of 16.38 is above the 20-day moving average (MA) of 16.29, above the 50-day MA of 14.30, and above the 200-day MA of 12.59, indicating a bullish trend. The MACD of 0.59 indicates Positive momentum. The RSI at 59.64 is Neutral, neither overbought nor oversold. The STOCH value of 71.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WT.
WisdomTree Risk Analysis
WisdomTree disclosed 65 risk factors in its most recent earnings report. WisdomTree reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
WisdomTree Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.39B | 22.64 | 26.69% | 0.95% | 12.05% | 120.13% | |
70 Neutral | $956.83M | 7.09 | 15.07% | 5.41% | -3.07% | 18.00% | |
69 Neutral | $2.22B | 25.65 | 15.57% | 3.78% | 22.09% | 58.98% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $1.88B | 23.86 | 7024.00% | 0.08% | 21.53% | 42.18% | |
65 Neutral | $2.59B | 29.98 | 3.23% | 3.21% | 21.37% | 17.19% | |
62 Neutral | $2.42B | 28.21 | ― | 3.91% | 18.33% | 109.57% |
* Financial Sector Average
WT
WisdomTree
16.38
7.20
78.43%
BBT
Beacon Financial Corporation
31.78
4.88
18.16%
VRTS
Virtus Investment Partners
146.91
-24.16
-14.12%
AAMI
Acadian Asset Management
53.23
28.33
113.77%
GCMG
GCM Grosvenor
11.71
-1.89
-13.90%
PAX
Patria Investments
14.00
2.89
26.00%
WisdomTree Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
WisdomTree Reports Record AUM and Strong Q4 2025 Results
Positive
Jan 30, 2026
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.