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Mar 31, 2025
WisdomTree Investments Inc Q1 2025 Earnings Report
WisdomTree reported a decrease in operating revenues and net income, with a slight dip in operating income margin, while achieving record AUM and significant net inflows.
Key Takeaways
WisdomTree, Inc. reported a net income of $24.6 million and diluted EPS of $0.17 for the first quarter of 2025. Operating revenues decreased by 2.4% from the prior quarter to $108.1 million, primarily due to fewer trading days and a lower average advisory fee, despite higher average AUM. The company achieved a record AUM of $115.8 billion and $3.0 billion in net inflows.
Record AUM reached $115.8 billion, marking a 5.5% increase from the prior quarter, driven by net inflows and market appreciation.
Net inflows totaled $3.0 billion, primarily from fixed income, U.S. equity, and international developed equity products, partially offset by outflows from emerging market equity products.
Operating revenues were $108.1 million, a 2.4% decrease from the prior quarter due to fewer trading days and a lower average advisory fee.
Diluted earnings per share stood at $0.17, with adjusted diluted earnings per share at $0.16.
Forward Guidance
The company anticipates continued growth in digital asset innovation and expansion across its global platform, leveraging AI and accelerating digital adoption to drive lasting value and lead the future of asset management. However, the business is subject to various market and operational risks.
Positive Outlook
- Anticipated trends, conditions, and investor sentiment in global markets and ETPs are expected to be favorable.
- The company expects to successfully implement its strategy relating to digital assets and blockchain-enabled financial services.
- WisdomTree is positioned to drive lasting value and lead the future of asset management through digital asset innovation and AI expansion.
- The company aims to successfully operate and expand its business in non-U.S. markets.
- Continued focus on delivering favorable rates of return to investors.
Challenges Ahead
- Declining prices of securities, gold, and other precious metals, and changes in interest rates, could adversely affect the business.
- Fluctuations in AUM, caused by market disruptions or geopolitical events, may negatively impact revenues and operating margins.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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