WisdomTree, Inc. — Call Transcript 2025

Good evening and welcome to the WisdomTree Third Quarter 2025 Earnings Results Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Jessica Zaloom, Head of Corporate Communications. Thank you. You may begin. Good afternoon. Before we begin, I would like to reference our legal disclaimer available in today's presentation. This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about our ability to achieve our financial and business plans, goals, and objectives, and drive stockholder value. A number of factors could cause actual results to differ materially from the results discussed in forward-looking statements, including, but not limited to, the risks set forth in this presentation in the risk factor section of the WisdomTree Annual Report on Form 10-K for the year ended December 31st, 2024, and in subsequent reports filed with or furnished to the Securities and Exchange Commission. WisdomTree assumes no duty and does not undertake to update any forward-looking statements. Now, it is my pleasure to turn the call over to WisdomTree CFO, Bryan Edmiston. Thank you, Jessica, and good morning, everyone. I'll begin by covering our third quarter results along with updates to our forward-looking guidance before turning the call over to Jarrett and Jono for additional updates on our business. We ended the third quarter with record global AUM of $137.2 billion, driven by strong organic growth and favorable market conditions. This includes record U.S. AUM of $88.3 billion, record European AUM of $48.3 billion, and digital AUM of almost $600 million. In the third quarter, we generated $2.2 billion of global net inflows, bringing year-to-date inflows through September 30th to $8.8 billion and annualized organic growth pace of 11%. These flows have been broad and diverse across our global product suite, with contributions from every region. Year-to-date inflows include $2.5 billion in the U.S., $5.8 billion in Europe, and roughly $550 million in digital assets. Significant contributors during the third quarter included meaningful flows into our European gold and cryptocurrency products, as well as our European Defense Fund and our Digital Money Market Fund. We also reached a major milestone in early October with the closing of the Ceres acquisition. This transaction immediately increases our revenue capture and operating margins by more than 200 basis points, while further diversifying our AUM mix by introducing farmland as a negatively correlated asset class. Ceres also opens the door to incremental revenue opportunities stemming from alternative uses of farmland, including solar projects and AI data centers. Backed by strong organic growth, disciplined execution, and strategic capital deployment, we are operating from a position of strength, well-positioned to deliver sustainable growth and long-term shareholder value. Next slide. Adjusted revenues were $125.6 million during the quarter, an increase of 11.5% from the second quarter and up approximately 14.7% versus the prior year quarter, driven by higher average AUM. Our other revenue has increased to $11 million this quarter versus $8 million-$9 million in previous quarters. As a reminder, other revenues comprise both asset-based and transaction-based fees on European-listed products, of which approximately 70% of these revenues are asset-based. While difficult to forecast, we would suggest the magnitude of other revenue generated in this most recent quarter serves as a fair approximation of what we could expect going forward, assuming current European AUM levels. On a year-to-date basis, our adjusted revenues have grown 10.7%. Driven by higher average AUM and higher other revenues attributable to our European-listed products, partly offset by a lower average fee capture. Our adjusted net income for the quarter was $34.5 million, or $0.23 per share. Our adjusted net income excludes a loss on extinguishment of convertible notes of $13 million, acquisition-related costs of $2.4 million, and other miscellaneous items. Next slide. Now, a few comments on our forecasted guidance. We have no changes to our previously reported compensation and discretionary expense guidance. We reported a gross margin of 82.2% in the third quarter, an increase of over 100 basis points versus the second quarter due to higher AUM levels. We anticipate our gross margin increasing to 83% in the fourth quarter when factoring in the incremental revenue arising from the Ceres acquisition, resulting in an overall gross margin of about 82% for the full year. We reported $8 million of adjusted interest expense in the third quarter, an increase from $5 million in previous quarters due to convertible notes we issued in mid-August to facilitate the Ceres acquisition. We anticipate our adjusted interest expense to be approximately $11 million in the fourth quarter, taking into consideration the full quarter impact of this recently completed financing. During the third quarter, we reported $4 million of interest income, higher than our previous run rate of approximately $2 million per quarter due to temporarily investing the capital raised from our convertible note issuance to facilitate the Ceres acquisition. We anticipate interest income in the fourth quarter reverting back to earlier levels of approximately $2 million-$3 million. Our weighted average diluted shares were 150.7 million during the third quarter, which included 5.8 million of incremental shares related to our convertible notes, partly offset by the weighted average effect of repurchasing 6.8 million shares of common stock in connection with our recently completed convertible note issuance. We anticipate our weighted average diluted shares to be 146 million-149 million in the fourth quarter, taking into consideration the full quarter impact of the 6.8 million shares we repurchased in August. This also contemplates approximately 5 million-7 million incremental shares associated with our convertible notes, assuming a stock price approximating recent levels. As a reminder, an illustration is included within our earnings presentation to assist in quantifying the incremental shares associated with our convertible notes going forward. With respect to the Ceres acquisition, our overall expense guidance for the year remains largely unchanged. Ceres' estimated annualized operating expenses are approximately $15 million, of which roughly 80% is related to compensation. Approximately one quarter of this expense should impact us in the fourth quarter. While we generally don't provide revenue guidance, Ceres' trailing 12-month historical revenues were approximately $40 million, which should be informative for establishing a baseline revenue expectation for your models. Revenue is comprised of both a base fee of approximately 1% on AUM and a 20% performance fee. Performance fees generated will ultimately be driven by the underlying returns of the farmland managed by Ceres, and therefore recent historical actual revenues earned is not indicative of revenue that may be earned in the future. That's all I have. I'll now turn the call over to Jarrett. Thanks, Bryan. This was another solid quarter for WisdomTree, highlighted by record firm-wide AUM, strong net inflows, and continued execution across all areas of our business. We ended the quarter with over $137 billion in AUM, setting a new high watermark not just for the firm overall, but for every one of our business lines individually. Net inflows exceeded $2.2 billion for the quarter, driven by broad-based strength across our product lineup, with nearly twice as many funds seeing inflows versus outflows. That breadth of performance underscores the depth and resilience of our platform and the consistent execution of our strategies across regions, products, and channels. Since quarter end, we closed on our acquisition of Ceres Partners, bringing our total AUM to over $140 billion for the first time in our history, an important milestone that also marks our entry into private assets, an exciting new growth vector for WisdomTree. Gold also continues to be a standout. Our physical gold and gold overlay strategies now exceed $22 billion in AUM, reflecting 57% growth year-to-date. These strategies brought in over $1 billion of net inflows in the quarter alone, highlighting both the strength of our offering and the trust we've earned from clients seeking real asset exposure in today's environment. Importantly, we're not just growing AUM; we're also deepening client relationships. The number of clients using WisdomTree products grew meaningfully during the quarter, and the average number of WisdomTree solutions used per client also increased. That combination, wider reach, and deeper wallet share, that's the foundation of sustainable organic growth, and we're seeing it at work. Turning to models, this continues to be one of our fastest-growing areas. Model AUM grew to approximately $5.85 billion, up more than 50% year-to-date. Advisor adoption remains strong, with the number of advisors using our models now up sharply from the start of the year. Custom models were again a key driver in the quarter. We onboarded 13 new custom model clients, reinforcing our ability to meet advisors where they are. With an $18 trillion opportunity across 85,000 advisors, we're still in the early innings, but our traction is real and growing. In digital assets, we continue to also see meaningful progress, particularly within our WisdomTree Connect platform, while WisdomTree Prime is now live with on-chain transfer capabilities. We exited the quarter with around $600 million in AUM, with peak levels near $900 million, driven largely by flows into our blockchain-enabled money market fund. Two core client segments are leading adoption: stablecoin issuers using the fund for reserves and on-chain native businesses using it for corporate treasury. Our ability to make redemption as seamless as funding has proven to be a real differentiator, and based on client feedback, that ease of use is not a given with competing products. It is exactly the kind of frictionless experience that builds trust and wallet share over time. While digital asset flows can fluctuate week to week, the trend is clear. We have strong traction year-to-date and an even stronger pipeline ahead. Operationally, we remain focused on what we can control, managing expenses with discipline, maintaining efficiency, and leveraging the scale of our platform. Our business model continues to demonstrate tremendous operating leverage, and as we grow, we see substantial margin expansion ahead. Back in February, we laid out our 2025 strategic priorities, and we are executing on all facets of this plan. We are doing what we said we would do, and we are doing it with consistency, focus, and discipline. In summary, we have strong momentum, and as we look ahead, our foundation has never been stronger: a diversified, scalable platform that continues to perform across market cycles and positions WisdomTree for long-term success. With that, let me now turn it over to Jono. Thank you, Jarrett. Hello, everyone. Today, I'll be brief. It was a strong and straightforward quarter. Everything Bryan and Jarrett shared today reinforces that when sound strategy meets disciplined execution, strong results follow. WisdomTree is the strongest we've ever been. We've achieved a new level of scale. We've achieved a new level of diversification: diversification of asset class, client type, and geography. Our scale, stability, and growth initiatives have positioned WisdomTree to thrive in the years ahead. Now, I'd like to turn the call back to the operator for questions. Thank you. At this time, we'll conduct the question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. Your first question comes from George Sutton with Craig-Hallum. Please state your question. Thank you. Nice results. Europe has obviously been the star with 2x the amount of flows that the U.S. has seen. Can you just give us a kind of a three-to-five-year vision of what you would expect to see there in terms of flows, U.S. versus rest of the world? Hi, George. Thanks for the question. Europe is a few years behind the U.S. in terms of ETF adoption. I think we feel that there's very strong fundamental underlying growth for Europe, and we really have achieved, with nearly $50 billion of AUM and a very strong revenue capture, just a very strong footprint within that space. I'm expecting that we'll continue to see very strong growth. It's hard to put a number on the five years, but the fundamentals of our European business are very strong. We're seeing a synergy between the U.S. and the European business, a lot of cross-pollination of ideas. Europe is the gateway to the global investor, and it's very positive for WisdomTree. Jarrett, is there anything you'd like to add? Yeah. The only thing I'd add is really what is I think exciting for us is our global product suite. We now really have such breadth and depth that no matter what the markets are doing, we have a set of our products that are going to play well in that market. You're seeing that on display, I think, this year. We've had still nice positive flows in the U.S., but as you pointed out, Europe's been great. As Jono also pointed out, some of the global launches now are also paying dividends. I think it's really the global product suite that is on display here. Gotcha. I wanted to just spend a little bit more of a focus on the digital asset side. You have a tech stack that really created this, and you've been working on it for years. Now, the market is viewing these kinds of tech stacks as extremely valuable. I don't know if you saw Securitize going public via SPAC for $1 billion. My sense is that's the least valuable part of your tech stack. I'm just curious, when do you think the market will begin to appreciate this? Have you contemplated a tokenization as a service? Just wondered if we could move in that direction. Will, why don't you start? Yes. Hey, good morning. Thanks for the question. Yes, did see the news, did read their deck. I mean, the short answer is yes. We're in active conversations around tokenization as a service, as a business concept. Just taking a step back in terms of what's that technology stack that you were referring to, we compete with Securitize products today like BUIDL, other products in the market. We're winning mandates even since this deck was published earlier this week. We're up another $20 million in flows into the digital assets platform, into WTGXX. How I think of us as compared to our competitors and how we're winning this business, at a big picture, it's the most regulated structures with the highest functionality. In terms of the tech stack that we've got, it's an asset management platform. That's what WisdomTree does today, right? We're the asset manager. It's a tokenization platform. We refer to it as our token issuance platform, TIP. It's also stablecoin orchestration. An example of a stablecoin orchestrator would be like a zerohash that's been in the news recently. We do all three of those things in our stack. The synergies that come with that have allowed us to customize things for clients and meet them where they are and win business that way. I think going forward, we're going to be adding things like trading and 24/7 T-in-cit liquidity to these exposures as well, making them feel more and more like a crypto-native business or a crypto-native exposure, sorry, improving upon what exists today. We're very excited about that. I think you'll be seeing more coming there in the near future. All told, we feel great about our position in the market with this. Hopefully, the market continues to value and appreciate that, and we're going to keep winning business going forward. All right. That's really helpful. Sorry. Hey, George. Let me just throw one thing in. I don't know whether Securitize actually goes public with a valuation of $1 billion. If it does, you would literally have a public direct value comparison to a part of our digital asset business to put in your sort of sum-of-the-parts analysis of WisdomTree. I would expect that if such a thing were to take place, WisdomTree would trade higher. Thanks, George. Great. One other question, if I could. You mentioned relative to Ceres and the fact that you now have entered the private asset market. When you say we have just now entered the private asset market, are you contemplating other moves there? I'm just curious how that would be done. We're very, very disciplined in our acquisition, a highly accretive transaction, one that really gave us leadership in a very exciting uncorrelated asset. This is definitely just the beginning. For those that have been following WisdomTree for a number of years, if you remember, our first investment in Europe was now almost 11 years ago with an investment in something called BOOST. You could see how over a 10, 11-year journey, how we grew that. We're definitely focused on privates. We see opportunities. I can't flag for you how we will execute against it, but only know that we're focused on it, and I expect that you'll see more to come. All right. Thanks, guys. Appreciate it. Your next question comes from Mike Grondahl with Northland Securities. Please state your question. Hey, guys. Thanks. Two questions. One. Looking at slide 13, the digital asset metrics, the $592 million that's just grown like a weed, can you talk in a little bit more detail the underlying drivers of that? You mentioned stablecoin issuers. What customers, whether it's institutional or retail, are buying those funds? I think if you break that down, it would be helpful. Hey, Will, I think that's you. Yeah. Happy to take the question. In the deck, $590 million, I think as of today's close, it should be about $680 million. Yes, it's grown very quickly, quarter-over-quarter, up from $30 million at the start of the year. That's exactly right. We see a lot of success with stablecoin issuers. These are businesses that are, whether in a regulated construct or kind of in other constructs, issuing stablecoins. They invest in WTGXX as a reserve asset that backs their stablecoin. That's one primary market segment. We also see, as Jarrett referenced, businesses that are crypto-native or blockchain-native that use stablecoin as part of their treasury management. They're looking for a kind of a treasury asset that's yield-bearing, that fits within their workflows. That's where the WTGXX, the money market fund, has great product-market fit as well. I expect as more and more businesses in the U.S. adopt stablecoins, the addressable market for that is going to grow even more. Beyond that, there are different collateral management use cases that we're seeing as well, both in a crypto-native construct, but also with traditional businesses as well. Those are the three types of businesses that we're seeing success on the institutional side. On retail, where we see the most applicability going forward is with on-chain-native customers. We call them on-chain experts. These are people that participate in DeFi, invest in DeFi, do things like yield farming. They're looking for traditional exposures that they can use as part of their strategies. Just by way of example, we launched yesterday all 14 of our products on the Plume blockchain. Maybe sounds in the weeds, but it's a blockchain that's focused on real-world asset exposures. Got a $10 million seed investment as part of that. You can just see in the community after that announcement, the excitement around having assets that yield something like north of 10% that they can use as part of their exposures. Those are the types of customers that we're seeing that's driving that AUM higher. Great. That was really helpful. Hey, Will, could you also talk about our public filing for the Money Market Fund that's in? We're waiting for the SEC to reopen. Yeah. I alluded to this, but I think critically for these exposures, we want them to trade in a secondary market at T-in-cit liquidity, 24/7 liquidity. That's really the power of blockchain that you've seen with tokens, Bitcoin even itself, right? Native 24/7 peer-to-peer transferability and kind of active markets, right? We are actively working on bringing that forward for the WisdomTree Money Market Fund, WTGXX. That kind of adds functionality above and beyond what exists today in the traditional space and really meets a lot of the clients that I named where they are, where in addition to kind of some of the on-chain functionality, on-chain orders that we have today, the ability to sell instantly for stablecoins just adds a whole new layer that they can't do today. We are working on that. There's a public filing around it that you can read more on at the SEC. Hopefully, we can bring that forward soon. Thank you. Thanks. Jono, what would you say are the top two priorities for 2026 as you're sitting here today? I would say faster revenue growth and higher revenue capture, continued scale. Got it. Hey, congrats, guys. Thank you. Thank you. Your next question comes from Michael Cyprys with Morgan Stanley. Please state your question. Hey, good morning. Thanks for taking the question. Maybe just sticking with the digital assets topic, can you just talk a little bit about some of the steps you're looking to take over the next 12 to 24 months to expand distribution access to build more customers, more assets in these funds? I think most of the traction has been on the money market fund, but you have a whole host of them. I think you mentioned 13. You have the treasury one. You have a gold one that's been out there for a bit. Remind us which blockchain they're on. How are you thinking about expanding access? What's the scope for partnering with some folks out there like Coinbase, Gemini, and others? Thanks. Will, you're in. Yes. In terms of specifically on the blockchain question, we're now on seven public blockchains: Ethereum, Arbitrum, Avalanche, Base, Optimism, Stellar, and now Plume. I think I named all seven. It kind of gets in the weeds, but really, we want to just meet clients where they are. When we see commercial opportunities, that there's a kind of organic adoption happening on a certain blockchain for a certain use case, we like to bring our products there and certain technical considerations and risk considerations go into that as well. In terms of expanding the reach, right now, we've got kind of two platforms that we're onboarding people to, right? There's U.S. retail that can onboard to WisdomTree Prime, which feels a lot like a kind of traditional neobank, neobroker experience. We think we've done that as well as it can be, but that requires downloading an app, signing up, kind of going through that process. We've also got WisdomTree Connect, where there are businesses that onboard with us. That's kind of a traditional business KYB onboarding process as well. Once we onboard them, we essentially tag the wallets that they whitelist with us, and they're allowed to engage with our products and services from there. That's kind of where we're starting at today. I think there's a lot of opportunity to expand onboarding beyond what we can do just directly through those two channels. One that we've talked about in the past would be the right sorts of fintech relationships, other fintechs where we can do a B2B2C model where WisdomTree's products, the transactions that we support, could be available through other apps as well. What's actually quite interesting about doing this in kind of a DeFi-native way is there could be other ways that, and this is all kind of whiteboarding hypotheticals at this point, but the industry is working on this, is onboarding based on attestations or onboarding people in a more decentralized construct where they can just onboard their wallet directly with us by filling out a web form. That's early innings on those things, but a key focus for digital assets over the next 12 months is, in addition to how do we get these things trading within a crypto-native workflow, how do we just onboard more and more people just to sell our products and services to them while still doing it in a very trusted, regulatory-compliant way? That's how I think about it. I hope that answers your question. Great. More broadly on tokenization, with the Ceres acquisition that brings you into the private space, I guess, how do you think about the opportunity for tokenizing real-world assets, including farmland? Where is that on the priority stack? How might you go about that? What steps might you need to take in order to bring that to fruition? Jarrett, you want to start? Sure. I think there are certain things that are certainly on the roadmap for tokenization that make all the sense in the world. Farmland is actually not one of those. It's not really the most suitable solution for it. For us, the going on farmland, we've got a great model there, great returns, uncorrelated asset, but also some nice synergies with our own distribution team. We look to run that business, run it well with the existing team, but then look at how we better leverage our own infrastructure to enhance the returns there. Hey, Mike. I would also just add that you are seeing we're in the early days. The 40 Act ETFs do allow for up to 15% of the portfolio to be in privates. I would expect that you will see that evolve for the industry, but for WisdomTree specifically, we think it's a very big opportunity for us to blend privates and publics in the most seamless way. There'll be more to come on that in the coming quarters. Great. Thanks so much. Your next question comes from Keith Housum with Northcoast Research. Please state your question. Good morning, guys. Thank you. Guys, just a very basic question. As we think about modeling the business, the Ceres business you guys acquired here, I understand it's a private asset and they're not priced every day like ETFs. How would we expect to find the AUM for this on a regular basis? Would we just get it at the beginning of the quarter and at the end of the quarter? Bryan? Yeah, it's going to be the latter. The AUM for Ceres will be reported at the end of the quarter. Okay. Performance-based fees, is there any indicators that we can look at that we might be able to try to estimate what the performance-based fees might be? Yeah, sure. Let's think through the AUM walk. We are starting with AUM of roughly $1.7 billion-$1.8 billion today. Make your own flow assumption, but as a reminder, we had stated a target of roughly $750 million of AUM into farmland-based strategies over the next five years. It would be lower in the initial years we integrate the business, and it would ramp up over that time horizon. We need to think about what mark we apply to our AUM. I'm going to assume roughly a 7%-8% mark on Ceres' AUM plus the flow, whatever flow assumption we're making. That mark seems to be a reasonable one taking into consideration rental yields, long-term historical farmland returns offset by fund expenses and fees. That mark assumption is a baseline one. Solar and data center opportunities could drive this higher. That said, an adverse market environment could drive it lower as well. The performance fee is roughly 15% of the mark on a net basis. The formula, if I were thinking about this, is Ceres' beginning AUM plus your flow assumption, times your mark assumption, times 15%, and that should get you into the neighborhood of what our performance fee would be. On the management fees, it's 1% of average AUM, and we provided some indication with respect to expenses on our prepared remarks. Great. Thanks. I appreciate that. In terms of the digital strategy, I know there's a lot going on there. I can appreciate it, though I may not be able to understand all the complexities there. If I think about what the impact is today to the income statement, I guess, what kind of income impact are we talking about today? I'm sure it's not that great, but maybe you can verify for me. Does today's performance justify increased investment or maintaining where you're at and just continuing down that path? Bryan? I'm sorry, you want confirmation on what our current spend is in 2025? Not only the spend, but also the revenue. I know a lot's going on here, and I understand the fact you've got the. Yeah. So. Right. Got it. On the revenue side right now, we have, as Will had indicated earlier, $650 million of AUM. That's roughly at a, call it, 25 basis point fee capture. That's our primary driver with respect to revenue today on the digital platform. The expenses and our net operating loss is in the neighborhood of what we've communicated previously. It's mid-20s is kind of where we're at at this point in time. Let me also just add, we believe strongly that there is a structural shift going on. We're ready for it, and the trend is much higher. In fact, I would say we believe eventually everything, nearly everything, will go on chain. Tokenization of real-world assets over time will change the face of financial services. With what we've accomplished year-to-date, we've gone from almost zero to over $600 million, and we're on the functional cutting edge of what is happening in real-world assets. We're very, very bullish on it. Great. Thank you. Thank you. Your next question comes from Chris Kotowski with Oppenheimer & Co. Please state your question. Yeah, most of mine have been answered, thank you. I was just wondering, the $2.4 billion outflows post the quarter, it seems like it was in commodities and USFR on two or three days that just looked kind of like not your normal flows. I was wondering if there's any explanation you have for that. Jeremy, do you want to start there? Yeah. Sure. Great to talk to you. Jeremy Schwartz, Global CIO. Our commodities AUM, when you look at the start of the year, it started at $22 billion. Today, it's $32 billion. You've had a 50%-60% increase in some of these prices, like gold moving higher. I think after the big, big move higher, there was some profit-taking, but most people's positions are up 50% on the year. That was a natural source. We did see some allocations. You had the Fed meeting, and there's some discussion of interest rates. You saw some people with the robust market put more of that cash to work in other things. At the same time as USFR redeemed, we saw Japan, which had been in outflow mode but had $300 million or $400 million. Some of that might have been a reallocation, putting cash to work. I think we continue to see from the big flows at the start of the year just actually a lot of energy below the surface and a bunch of the new thematics having this halo effect where you're getting new funds to scale on $100 million much quicker. Even beyond those few big ones, you're seeing things like nuclear, rare earth, quantum computing, which are all recent launches, get to $100 million in our European business very quickly. There's a lot of good breadth, as Jarrett talked about earlier. That's building under that surface there. [crosstalk] I wanted to jump in there too. Underlying some of the things that Jer said, some of these, you never like to see outflows, but some profit-taking in gold when you've seen the move that gold has had is pretty reasonable. With USFR, really, that was down to one or two clients that were rotating into other names, as Jer also mentioned. In one case, in the largest piece of that, rotated into something with actually a higher fee. While AUM was down, the net revenue of that rotation was up. The biggest point I'd make is you can get caught up in some of the noise of some short-term moves. What I'm always looking at are more the fundamentals. We continue to do the things that are precursors for continued growth. That is growing the number of our clients, but also growing the numbers of products per client. That continues, and that is the recipe for growth. The rest of it, in my book, is short-term noise. The long-term fundamentals for growth continue to be with us in a strong way. Okay. Great. Thank you. That's it for me. Thank you. That's all the questions we have today. I'll hand the floor back to Jonathan Steinberg, CEO, for closing remarks. Thank you. I just want to thank all of you for your time and attention, and we'll speak to you next quarter. Thank you, everybody. Have a good day. Thank you. This concludes today's call. All parties may disconnect. Have a good day.

Speaker 8: Good evening and welcome to the WisdomTree Third Quarter 2025 Earnings Results Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Jessica Zaloom, Head of Corporate Communications. Thank you. You may begin. Good evening and welcome to the WisdomTree Third Quarter 2025 Earnings Results Call. good evening and welcome to the wisdomtree third quarter 2025 earnings results call At this time, all participants are in a listen-only mode. at this time all participants are in a listen-only mode A question-and-answer session will follow the formal presentation. a question-and-answer session will follow the formal presentation If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. if anyone should require operator assistance during the conference please press star zero on your telephone keypad Please note this conference is being recorded. please note this conference is being recorded I will now turn the conference over to Jessica Zaloom, Head of Corporate Communications. i will now turn the conference over to jessica zaloom head of corporate communications Thank you. thank you You may begin. you may begin

Speaker 6: Good afternoon. Before we begin, I would like to reference our legal disclaimer available in today's presentation. This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about our ability to achieve our financial and business plans, goals, and objectives, and drive stockholder value. A number of factors could cause actual results to differ materially from the results discussed in forward-looking statements, including, but not limited to, the risks set forth in this presentation in the risk factor section of the WisdomTree Annual Report on Form 10-K for the year ended December 31st, 2024, and in subsequent reports filed with or furnished to the Securities and Exchange Commission. WisdomTree assumes no duty and does not undertake to update any forward-looking statements. Now, it is my pleasure to turn the call over to WisdomTree CFO, Bryan Edmiston. Good afternoon. good afternoon Before we begin, I would like to reference our legal disclaimer available in today's presentation. before we begin i would like to reference our legal disclaimer available in today's presentation This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about our ability to achieve our financial and business plans, goals, and objectives, and drive stockholder value. this presentation may contain forward-looking statements within the meaning of the private securities litigation reform act of 1995 including but not limited to statements about our ability to achieve our financial and business plans goals and objectives and drive stockholder value A number of factors could cause actual results to differ materially from the results discussed in forward-looking statements, including, but not limited to, the risks set forth in this presentation in the risk factor section of the WisdomTree Annual Report on Form 10-K for the year ended December 31st, 2024, and in subsequent reports filed with or furnished to the Securities and Exchange Commission. a number of factors could cause actual results to differ materially from the results discussed in forward-looking statements including but not limited to the risks set forth in this presentation in the risk factor section of the wisdomtree annual report on form 10-k for the year ended december 31st 2024 and in subsequent reports filed with or furnished to the securities and exchange commission WisdomTree assumes no duty and does not undertake to update any forward-looking statements. wisdomtree assumes no duty and does not undertake to update any forward-looking statements Now, it is my pleasure to turn the call over to WisdomTree CFO, Bryan Edmiston. now it is my pleasure to turn the call over to wisdomtree cfo bryan edmiston

Speaker 5: Thank you, Jessica, and good morning, everyone. I'll begin by covering our third quarter results along with updates to our forward-looking guidance before turning the call over to Jarrett and Jono for additional updates on our business. We ended the third quarter with record global AUM of $137.2 billion, driven by strong organic growth and favorable market conditions. This includes record U.S. AUM of $88.3 billion, record European AUM of $48.3 billion, and digital AUM of almost $600 million. In the third quarter, we generated $2.2 billion of global net inflows, bringing year-to-date inflows through September 30th to $8.8 billion and annualized organic growth pace of 11%. These flows have been broad and diverse across our global product suite, with contributions from every region. Year-to-date inflows include $2.5 billion in the U.S., $5.8 billion in Europe, and roughly $550 million in digital assets. Thank you, Jessica, and good morning, everyone. thank you jessica and good morning everyone I'll begin by covering our third quarter results along with updates to our forward-looking guidance before turning the call over to Jarrett and Jono for additional updates on our business. i'll begin by covering our third quarter results along with updates to our forward-looking guidance before turning the call over to jarrett and jono for additional updates on our business We ended the third quarter with record global AUM of $137.2 billion, driven by strong organic growth and favorable market conditions. we ended the third quarter with record global aum of $137.2 billion driven by strong organic growth and favorable market conditions This includes record U.S. this includes record u.s AUM of $88.3 billion, record European AUM of $48.3 billion, and digital AUM of almost $600 million. aum of $88.3 billion record european aum of $48.3 billion and digital aum of almost $600 million In the third quarter, we generated $2.2 billion of global net inflows, bringing year-to-date inflows through September 30th to $8.8 billion and annualized organic growth pace of 11%. in the third quarter we generated $2.2 billion of global net inflows bringing year-to-date inflows through september 30th to $8.8 billion and annualized organic growth pace of 11% These flows have been broad and diverse across our global product suite, with contributions from every region. these flows have been broad and diverse across our global product suite with contributions from every region Year-to-date inflows include $2.5 billion in the U.S., $5.8 billion in Europe, and roughly $550 million in digital assets. year-to-date inflows include $2.5 billion in the u.s $5.8 billion in europe and roughly $550 million in digital assets Significant contributors during the third quarter included meaningful flows into our European gold and cryptocurrency products, as well as our European Defense Fund and our Digital Money Market Fund. We also reached a major milestone in early October with the closing of the Ceres acquisition. This transaction immediately increases our revenue capture and operating margins by more than 200 basis points, while further diversifying our AUM mix by introducing farmland as a negatively correlated asset class. Ceres also opens the door to incremental revenue opportunities stemming from alternative uses of farmland, including solar projects and AI data centers. Backed by strong organic growth, disciplined execution, and strategic capital deployment, we are operating from a position of strength, well-positioned to deliver sustainable growth and long-term shareholder value. Next slide. Significant contributors during the third quarter included meaningful flows into our European gold and cryptocurrency products, as well as our European Defense Fund and our Digital Money Market Fund. significant contributors during the third quarter included meaningful flows into our european gold and cryptocurrency products as well as our european defense fund and our digital money market fund We also reached a major milestone in early October with the closing of the Ceres acquisition. we also reached a major milestone in early october with the closing of the ceres acquisition This transaction immediately increases our revenue capture and operating margins by more than 200 basis points, while further diversifying our AUM mix by introducing farmland as a negatively correlated asset class. this transaction immediately increases our revenue capture and operating margins by more than 200 basis points while further diversifying our aum mix by introducing farmland as a negatively correlated asset class Ceres also opens the door to incremental revenue opportunities stemming from alternative uses of farmland, including solar projects and AI data centers. ceres also opens the door to incremental revenue opportunities stemming from alternative uses of farmland including solar projects and ai data centers Backed by strong organic growth, disciplined execution, and strategic capital deployment, we are operating from a position of strength, well-positioned to deliver sustainable growth and long-term shareholder value. backed by strong organic growth disciplined execution and strategic capital deployment we are operating from a position of strength well-positioned to deliver sustainable growth and long-term shareholder value Next slide. next slide Adjusted revenues were $125.6 million during the quarter, an increase of 11.5% from the second quarter and up approximately 14.7% versus the prior year quarter, driven by higher average AUM. Our other revenue has increased to $11 million this quarter versus $8 million-$9 million in previous quarters. As a reminder, other revenues comprise both asset-based and transaction-based fees on European-listed products, of which approximately 70% of these revenues are asset-based. While difficult to forecast, we would suggest the magnitude of other revenue generated in this most recent quarter serves as a fair approximation of what we could expect going forward, assuming current European AUM levels. On a year-to-date basis, our adjusted revenues have grown 10.7%. Driven by higher average AUM and higher other revenues attributable to our European-listed products, partly offset by a lower average fee capture. Adjusted revenues were $125.6 million during the quarter, an increase of 11.5% from the second quarter and up approximately 14.7% versus the prior year quarter, driven by higher average AUM. adjusted revenues were $125.6 million during the quarter an increase of 11.5% from the second quarter and up approximately 14.7% versus the prior year quarter driven by higher average aum Our other revenue has increased to $11 million this quarter versus $8 million- $9 million in previous quarters. our other revenue has increased to $11 million this quarter versus $8 million- $9 million in previous quarters As a reminder, other revenues comprise both asset-based and transaction-based fees on European-listed products, of which approximately 70% of these revenues are asset-based. as a reminder other revenues comprise both asset-based and transaction-based fees on european-listed products of which approximately 70% of these revenues are asset-based While difficult to forecast, we would suggest the magnitude of other revenue generated in this most recent quarter serves as a fair approximation of what we could expect going forward, assuming current European AUM levels. while difficult to forecast we would suggest the magnitude of other revenue generated in this most recent quarter serves as a fair approximation of what we could expect going forward assuming current european aum levels On a year-to-date basis, our adjusted revenues have grown 10.7%. on a year-to-date basis our adjusted revenues have grown 10.7% Driven by higher average AUM and higher other revenues attributable to our European-listed products, partly offset by a lower average fee capture. driven by higher average aum and higher other revenues attributable to our european-listed products partly offset by a lower average fee capture Our adjusted net income for the quarter was $34.5 million, or $0.23 per share. Our adjusted net income excludes a loss on extinguishment of convertible notes of $13 million, acquisition-related costs of $2.4 million, and other miscellaneous items. Next slide. Now, a few comments on our forecasted guidance. We have no changes to our previously reported compensation and discretionary expense guidance. We reported a gross margin of 82.2% in the third quarter, an increase of over 100 basis points versus the second quarter due to higher AUM levels. We anticipate our gross margin increasing to 83% in the fourth quarter when factoring in the incremental revenue arising from the Ceres acquisition, resulting in an overall gross margin of about 82% for the full year. Our adjusted net income for the quarter was $34.5 million, or $0.23 per share. our adjusted net income for the quarter was $34.5 million or $0.23 per share Our adjusted net income excludes a loss on extinguishment of convertible notes of $13 million, acquisition-related costs of $2.4 million, and other miscellaneous items. our adjusted net income excludes a loss on extinguishment of convertible notes of $13 million acquisition-related costs of $2.4 million and other miscellaneous items Next slide. next slide Now, a few comments on our forecasted guidance. now a few comments on our forecasted guidance We have no changes to our previously reported compensation and discretionary expense guidance. we have no changes to our previously reported compensation and discretionary expense guidance We reported a gross margin of 82.2% in the third quarter, an increase of over 100 basis points versus the second quarter due to higher AUM levels. we reported a gross margin of 82.2% in the third quarter an increase of over 100 basis points versus the second quarter due to higher aum levels We anticipate our gross margin increasing to 83% in the fourth quarter when factoring in the incremental revenue arising from the Ceres acquisition, resulting in an overall gross margin of about 82% for the full year. we anticipate our gross margin increasing to 83% in the fourth quarter when factoring in the incremental revenue arising from the ceres acquisition resulting in an overall gross margin of about 82% for the full year We reported $8 million of adjusted interest expense in the third quarter, an increase from $5 million in previous quarters due to convertible notes we issued in mid-August to facilitate the Ceres acquisition. We anticipate our adjusted interest expense to be approximately $11 million in the fourth quarter, taking into consideration the full quarter impact of this recently completed financing. During the third quarter, we reported $4 million of interest income, higher than our previous run rate of approximately $2 million per quarter due to temporarily investing the capital raised from our convertible note issuance to facilitate the Ceres acquisition. We anticipate interest income in the fourth quarter reverting back to earlier levels of approximately $2 million-$3 million. We reported $8 million of adjusted interest expense in the third quarter, an increase from $5 million in previous quarters due to convertible notes we issued in mid-August to facilitate the Ceres acquisition. we reported $8 million of adjusted interest expense in the third quarter an increase from $5 million in previous quarters due to convertible notes we issued in mid-august to facilitate the ceres acquisition We anticipate our adjusted interest expense to be approximately $11 million in the fourth quarter, taking into consideration the full quarter impact of this recently completed financing. we anticipate our adjusted interest expense to be approximately $11 million in the fourth quarter taking into consideration the full quarter impact of this recently completed financing During the third quarter, we reported $4 million of interest income, higher than our previous run rate of approximately $2 million per quarter due to temporarily investing the capital raised from our convertible note issuance to facilitate the Ceres acquisition. during the third quarter we reported $4 million of interest income higher than our previous run rate of approximately $2 million per quarter due to temporarily investing the capital raised from our convertible note issuance to facilitate the ceres acquisition We anticipate interest income in the fourth quarter reverting back to earlier levels of approximately $2 million- $3 million. we anticipate interest income in the fourth quarter reverting back to earlier levels of approximately $2 million- $3 million Our weighted average diluted shares were 150.7 million during the third quarter, which included 5.8 million of incremental shares related to our convertible notes, partly offset by the weighted average effect of repurchasing 6.8 million shares of common stock in connection with our recently completed convertible note issuance. We anticipate our weighted average diluted shares to be 146 million-149 million in the fourth quarter, taking into consideration the full quarter impact of the 6.8 million shares we repurchased in August. This also contemplates approximately 5 million-7 million incremental shares associated with our convertible notes, assuming a stock price approximating recent levels. As a reminder, an illustration is included within our earnings presentation to assist in quantifying the incremental shares associated with our convertible notes going forward. Our weighted average diluted shares were 150.7 million during the third quarter, which included 5.8 million of incremental shares related to our convertible notes, partly offset by the weighted average effect of repurchasing 6.8 million shares of common stock in connection with our recently completed convertible note issuance. our weighted average diluted shares were 150.7 million during the third quarter which included 5.8 million of incremental shares related to our convertible notes partly offset by the weighted average effect of repurchasing 6.8 million shares of common stock in connection with our recently completed convertible note issuance We anticipate our weighted average diluted shares to be 146 million- 149 million in the fourth quarter, taking into consideration the full quarter impact of the 6.8 million shares we repurchased in August. we anticipate our weighted average diluted shares to be 146 million- 149 million in the fourth quarter taking into consideration the full quarter impact of the 6.8 million shares we repurchased in august This also contemplates approximately 5 million- 7 million incremental shares associated with our convertible notes, assuming a stock price approximating recent levels. this also contemplates approximately 5 million- 7 million incremental shares associated with our convertible notes assuming a stock price approximating recent levels As a reminder, an illustration is included within our earnings presentation to assist in quantifying the incremental shares associated with our convertible notes going forward. as a reminder an illustration is included within our earnings presentation to assist in quantifying the incremental shares associated with our convertible notes going forward With respect to the Ceres acquisition, our overall expense guidance for the year remains largely unchanged. Ceres' estimated annualized operating expenses are approximately $15 million, of which roughly 80% is related to compensation. Approximately one quarter of this expense should impact us in the fourth quarter. While we generally don't provide revenue guidance, Ceres' trailing 12-month historical revenues were approximately $40 million, which should be informative for establishing a baseline revenue expectation for your models. Revenue is comprised of both a base fee of approximately 1% on AUM and a 20% performance fee. Performance fees generated will ultimately be driven by the underlying returns of the farmland managed by Ceres, and therefore recent historical actual revenues earned is not indicative of revenue that may be earned in the future. That's all I have. I'll now turn the call over to Jarrett. With respect to the Ceres acquisition, our overall expense guidance for the year remains largely unchanged. Ceres ' estimated annualized operating expenses are approximately $15 million, of which roughly 80% is related to compensation. with respect to the ceres acquisition our overall expense guidance for the year remains largely unchanged. ceres' estimated annualized operating expenses are approximately $15 million of which roughly 80% is related to compensation Approximately one quarter of this expense should impact us in the fourth quarter. approximately one quarter of this expense should impact us in the fourth quarter While we generally don't provide revenue guidance, Ceres ' trailing 12-month historical revenues were approximately $40 million, which should be informative for establishing a baseline revenue expectation for your models. while we generally don't provide revenue guidance, ceres' trailing 12-month historical revenues were approximately $40 million which should be informative for establishing a baseline revenue expectation for your models Revenue is comprised of both a base fee of approximately 1% on AUM and a 20% performance fee. revenue is comprised of both a base fee of approximately 1% on aum and a 20% performance fee Performance fees generated will ultimately be driven by the underlying returns of the farmland managed by Ceres , and therefore recent historical actual revenues earned is not indicative of revenue that may be earned in the future. performance fees generated will ultimately be driven by the underlying returns of the farmland managed by ceres and therefore recent historical actual revenues earned is not indicative of revenue that may be earned in the future That's all I have. that's all i have I'll now turn the call over to Jarrett. i'll now turn the call over to jarrett

Speaker 12: Thanks, Bryan. This was another solid quarter for WisdomTree, highlighted by record firm-wide AUM, strong net inflows, and continued execution across all areas of our business. We ended the quarter with over $137 billion in AUM, setting a new high watermark not just for the firm overall, but for every one of our business lines individually. Net inflows exceeded $2.2 billion for the quarter, driven by broad-based strength across our product lineup, with nearly twice as many funds seeing inflows versus outflows. That breadth of performance underscores the depth and resilience of our platform and the consistent execution of our strategies across regions, products, and channels. Since quarter end, we closed on our acquisition of Ceres Partners, bringing our total AUM to over $140 billion for the first time in our history, an important milestone that also marks our entry into private assets, an exciting new growth vector for WisdomTree. Thanks, Bryan. thanks bryan This was another solid quarter for WisdomTree, highlighted by record firm-wide AUM, strong net inflows, and continued execution across all areas of our business. this was another solid quarter for wisdomtree highlighted by record firm-wide aum strong net inflows and continued execution across all areas of our business We ended the quarter with over $137 billion in AUM, setting a new high watermark not just for the firm overall, but for every one of our business lines individually. we ended the quarter with over $137 billion in aum setting a new high watermark not just for the firm overall but for every one of our business lines individually Net inflows exceeded $2.2 billion for the quarter, driven by broad-based strength across our product lineup, with nearly twice as many funds seeing inflows versus outflows. net inflows exceeded $2.2 billion for the quarter driven by broad-based strength across our product lineup with nearly twice as many funds seeing inflows versus outflows That breadth of performance underscores the depth and resilience of our platform and the consistent execution of our strategies across regions, products, and channels. that breadth of performance underscores the depth and resilience of our platform and the consistent execution of our strategies across regions products and channels Since quarter end, we closed on our acquisition of Ceres Partners, bringing our total AUM to over $140 billion for the first time in our history, an important milestone that also marks our entry into private assets, an exciting new growth vector for WisdomTree. since quarter end we closed on our acquisition of ceres partners bringing our total aum to over $140 billion for the first time in our history an important milestone that also marks our entry into private assets an exciting new growth vector for wisdomtree Gold also continues to be a standout. Our physical gold and gold overlay strategies now exceed $22 billion in AUM, reflecting 57% growth year-to-date. These strategies brought in over $1 billion of net inflows in the quarter alone, highlighting both the strength of our offering and the trust we've earned from clients seeking real asset exposure in today's environment. Importantly, we're not just growing AUM; we're also deepening client relationships. The number of clients using WisdomTree products grew meaningfully during the quarter, and the average number of WisdomTree solutions used per client also increased. That combination, wider reach, and deeper wallet share, that's the foundation of sustainable organic growth, and we're seeing it at work. Turning to models, this continues to be one of our fastest-growing areas. Model AUM grew to approximately $5.85 billion, up more than 50% year-to-date. Gold also continues to be a standout. gold also continues to be a standout Our physical gold and gold overlay strategies now exceed $22 billion in AUM, reflecting 57% growth year-to-date. our physical gold and gold overlay strategies now exceed $22 billion in aum reflecting 57% growth year-to-date These strategies brought in over $1 billion of net inflows in the quarter alone, highlighting both the strength of our offering and the trust we've earned from clients seeking real asset exposure in today's environment. these strategies brought in over $1 billion of net inflows in the quarter alone highlighting both the strength of our offering and the trust we've earned from clients seeking real asset exposure in today's environment Importantly, we're not just growing AUM; we're also deepening client relationships. importantly we're not just growing aum we're also deepening client relationships The number of clients using WisdomTree products grew meaningfully during the quarter, and the average number of WisdomTree solutions used per client also increased. the number of clients using wisdomtree products grew meaningfully during the quarter and the average number of wisdomtree solutions used per client also increased That combination, wider reach, and deeper wallet share, that's the foundation of sustainable organic growth, and we're seeing it at work. that combination wider reach and deeper wallet share that's the foundation of sustainable organic growth and we're seeing it at work Turning to models, this continues to be one of our fastest-growing areas. turning to models this continues to be one of our fastest-growing areas Model AUM grew to approximately $5.85 billion, up more than 50% year-to-date. model aum grew to approximately $5.85 billion up more than 50% year-to-date Advisor adoption remains strong, with the number of advisors using our models now up sharply from the start of the year. Custom models were again a key driver in the quarter. We onboarded 13 new custom model clients, reinforcing our ability to meet advisors where they are. With an $18 trillion opportunity across 85,000 advisors, we're still in the early innings, but our traction is real and growing. In digital assets, we continue to also see meaningful progress, particularly within our WisdomTree Connect platform, while WisdomTree Prime is now live with on-chain transfer capabilities. We exited the quarter with around $600 million in AUM, with peak levels near $900 million, driven largely by flows into our blockchain-enabled money market fund. Two core client segments are leading adoption: stablecoin issuers using the fund for reserves and on-chain native businesses using it for corporate treasury. Advisor adoption remains strong, with the number of advisors using our models now up sharply from the start of the year. advisor adoption remains strong with the number of advisors using our models now up sharply from the start of the year Custom models were again a key driver in the quarter. custom models were again a key driver in the quarter We onboarded 13 new custom model clients, reinforcing our ability to meet advisors where they are. we onboarded 13 new custom model clients reinforcing our ability to meet advisors where they are With an $18 trillion opportunity across 85,000 advisors, we're still in the early innings, but our traction is real and growing. with an $18 trillion opportunity across 85,000 advisors we're still in the early innings but our traction is real and growing In digital assets, we continue to also see meaningful progress, particularly within our WisdomTree Connect platform, while WisdomTree Prime is now live with on-chain transfer capabilities. in digital assets we continue to also see meaningful progress particularly within our wisdomtree connect platform while wisdomtree prime is now live with on-chain transfer capabilities We exited the quarter with around $600 million in AUM, with peak levels near $900 million, driven largely by flows into our blockchain-enabled money market fund. we exited the quarter with around $600 million in aum with peak levels near $900 million driven largely by flows into our blockchain-enabled money market fund Two core client segments are leading adoption: stablecoin issuers using the fund for reserves and on-chain native businesses using it for corporate treasury. two core client segments are leading adoption stablecoin issuers using the fund for reserves and on-chain native businesses using it for corporate treasury Our ability to make redemption as seamless as funding has proven to be a real differentiator, and based on client feedback, that ease of use is not a given with competing products. It is exactly the kind of frictionless experience that builds trust and wallet share over time. While digital asset flows can fluctuate week to week, the trend is clear. We have strong traction year-to-date and an even stronger pipeline ahead. Operationally, we remain focused on what we can control, managing expenses with discipline, maintaining efficiency, and leveraging the scale of our platform. Our business model continues to demonstrate tremendous operating leverage, and as we grow, we see substantial margin expansion ahead. Our ability to make redemption as seamless as funding has proven to be a real differentiator, and based on client feedback, that ease of use is not a given with competing products. It is exactly the kind of frictionless experience that builds trust and wallet share over time. our ability to make redemption as seamless as funding has proven to be a real differentiator and based on client feedback that ease of use is not a given with competing products. it is exactly the kind of frictionless experience that builds trust and wallet share over time While digital asset flows can fluctuate week to week, the trend is clear. while digital asset flows can fluctuate week to week the trend is clear We have strong traction year-to-date and an even stronger pipeline ahead. we have strong traction year-to-date and an even stronger pipeline ahead Operationally, we remain focused on what we can control, managing expenses with discipline, maintaining efficiency, and leveraging the scale of our platform. operationally we remain focused on what we can control managing expenses with discipline maintaining efficiency and leveraging the scale of our platform Our business model continues to demonstrate tremendous operating leverage, and as we grow, we see substantial margin expansion ahead. our business model continues to demonstrate tremendous operating leverage and as we grow we see substantial margin expansion ahead Back in February, we laid out our 2025 strategic priorities, and we are executing on all facets of this plan. We are doing what we said we would do, and we are doing it with consistency, focus, and discipline. In summary, we have strong momentum, and as we look ahead, our foundation has never been stronger: a diversified, scalable platform that continues to perform across market cycles and positions WisdomTree for long-term success. With that, let me now turn it over to Jono. Back in February, we laid out our 2025 strategic priorities, and we are executing on all facets of this plan. We are doing what we said we would do, and we are doing it with consistency, focus, and discipline. back in february we laid out our 2025 strategic priorities and we are executing on all facets of this plan. we are doing what we said we would do and we are doing it with consistency focus and discipline In summary, we have strong momentum, and as we look ahead, our foundation has never been stronger: a diversified, scalable platform that continues to perform across market cycles and positions WisdomTree for long-term success. in summary we have strong momentum and as we look ahead our foundation has never been stronger a diversified scalable platform that continues to perform across market cycles and positions wisdomtree for long-term success With that, let me now turn it over to Jono. with that let me now turn it over to jono

Speaker 1: Thank you, Jarrett. Hello, everyone. Today, I'll be brief. It was a strong and straightforward quarter. Everything Bryan and Jarrett shared today reinforces that when sound strategy meets disciplined execution, strong results follow. WisdomTree is the strongest we've ever been. We've achieved a new level of scale. We've achieved a new level of diversification: diversification of asset class, client type, and geography. Our scale, stability, and growth initiatives have positioned WisdomTree to thrive in the years ahead. Now, I'd like to turn the call back to the operator for questions. Thank you, Jarrett. thank you jarrett Hello, everyone. hello everyone Today, I'll be brief. today i'll be brief It was a strong and straightforward quarter. it was a strong and straightforward quarter Everything Bryan and Jarrett shared today reinforces that when sound strategy meets disciplined execution, strong results follow. everything bryan and jarrett shared today reinforces that when sound strategy meets disciplined execution strong results follow WisdomTree is the strongest we've ever been. wisdomtree is the strongest we've ever been We've achieved a new level of scale. we've achieved a new level of scale We've achieved a new level of diversification: diversification of asset class, client type, and geography. we've achieved a new level of diversification diversification of asset class client type and geography Our scale, stability, and growth initiatives have positioned WisdomTree to thrive in the years ahead. our scale stability and growth initiatives have positioned wisdomtree to thrive in the years ahead Now, I'd like to turn the call back to the operator for questions. now i'd like to turn the call back to the operator for questions

Speaker 8: Thank you. At this time, we'll conduct the question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. Your first question comes from George Sutton with Craig-Hallum. Please state your question. Thank you. thank you At this time, we'll conduct the question-and-answer session. at this time we'll conduct the question-and-answer session If you would like to ask a question, please press star one on your telephone keypad. if you would like to ask a question please press star one on your telephone keypad A confirmation tone will indicate your line is in the question queue. a confirmation tone will indicate your line is in the question queue You may press star two if you would like to remove your question from the queue. you may press star two if you would like to remove your question from the queue For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. for participants using speaker equipment it may be necessary to pick up your handset before pressing the star keys One moment, please, while we pull for questions. one moment please while we pull for questions Your first question comes from George Sutton with Craig-Hallum. your first question comes from george sutton with craig-hallum Please state your question. please state your question

Speaker 3: Thank you. Nice results. Europe has obviously been the star with 2x the amount of flows that the U.S. has seen. Can you just give us a kind of a three-to-five-year vision of what you would expect to see there in terms of flows, U.S. versus rest of the world? Thank you. thank you Nice results. nice results Europe has obviously been the star with 2x the amount of flows that the U.S. has seen. europe has obviously been the star with 2x the amount of flows that the u.s has seen Can you just give us a kind of a three-to-five-year vision of what you would expect to see there in terms of flows, U.S. versus rest of the world? can you just give us a kind of a three-to-five-year vision of what you would expect to see there in terms of flows u.s versus rest of the world

Speaker 1: Hi, George. Thanks for the question. Europe is a few years behind the U.S. in terms of ETF adoption. I think we feel that there's very strong fundamental underlying growth for Europe, and we really have achieved, with nearly $50 billion of AUM and a very strong revenue capture, just a very strong footprint within that space. I'm expecting that we'll continue to see very strong growth. It's hard to put a number on the five years, but the fundamentals of our European business are very strong. We're seeing a synergy between the U.S. and the European business, a lot of cross-pollination of ideas. Europe is the gateway to the global investor, and it's very positive for WisdomTree. Jarrett, is there anything you'd like to add? Hi, George. hi george Thanks for the question. thanks for the question Europe is a few years behind the U.S. in terms of ETF adoption. europe is a few years behind the u.s in terms of etf adoption I think we feel that there's very strong fundamental underlying growth for Europe, and we really have achieved, with nearly $50 billion of AUM and a very strong revenue capture, just a very strong footprint within that space. i think we feel that there's very strong fundamental underlying growth for europe and we really have achieved with nearly $50 billion of aum and a very strong revenue capture just a very strong footprint within that space I'm expecting that we'll continue to see very strong growth. i'm expecting that we'll continue to see very strong growth It's hard to put a number on the five years, but the fundamentals of our European business are very strong. it's hard to put a number on the five years but the fundamentals of our european business are very strong We're seeing a synergy between the U.S. and the European business, a lot of cross-pollination of ideas. we're seeing a synergy between the u.s and the european business a lot of cross-pollination of ideas Europe is the gateway to the global investor, and it's very positive for WisdomTree. europe is the gateway to the global investor and it's very positive for wisdomtree Jarrett, is there anything you'd like to add? jarrett is there anything you'd like to add

Speaker 12: Yeah. The only thing I'd add is really what is I think exciting for us is our global product suite. We now really have such breadth and depth that no matter what the markets are doing, we have a set of our products that are going to play well in that market. You're seeing that on display, I think, this year. We've had still nice positive flows in the U.S., but as you pointed out, Europe's been great. As Jono also pointed out, some of the global launches now are also paying dividends. I think it's really the global product suite that is on display here. Yeah. yeah The only thing I'd add is really what is I think exciting for us is our global product suite. the only thing i'd add is really what is i think exciting for us is our global product suite We now really have such breadth and depth that no matter what the markets are doing, we have a set of our products that are going to play well in that market. we now really have such breadth and depth that no matter what the markets are doing we have a set of our products that are going to play well in that market You're seeing that on display, I think, this year. you're seeing that on display i think this year We've had still nice positive flows in the U.S., but as you pointed out, Europe's been great. we've had still nice positive flows in the u.s but as you pointed out europe's been great As Jono also pointed out, some of the global launches now are also paying dividends. as jono also pointed out some of the global launches now are also paying dividends I think it's really the global product suite that is on display here. i think it's really the global product suite that is on display here

Speaker 3: Gotcha. I wanted to just spend a little bit more of a focus on the digital asset side. You have a tech stack that really created this, and you've been working on it for years. Now, the market is viewing these kinds of tech stacks as extremely valuable. I don't know if you saw Securitize going public via SPAC for $1 billion. My sense is that's the least valuable part of your tech stack. I'm just curious, when do you think the market will begin to appreciate this? Have you contemplated a tokenization as a service? Just wondered if we could move in that direction. Gotcha. gotcha I wanted to just spend a little bit more of a focus on the digital asset side. i wanted to just spend a little bit more of a focus on the digital asset side You have a tech stack that really created this, and you've been working on it for years. you have a tech stack that really created this and you've been working on it for years Now, the market is viewing these kinds of tech stacks as extremely valuable. now the market is viewing these kinds of tech stacks as extremely valuable I don't know if you saw Securitize going public via SPAC for $1 billion. i don't know if you saw securitize going public via spac for $1 billion My sense is that's the least valuable part of your tech stack. my sense is that's the least valuable part of your tech stack I'm just curious, when do you think the market will begin to appreciate this? i'm just curious when do you think the market will begin to appreciate this Have you contemplated a tokenization as a service? have you contemplated a tokenization as a service Just wondered if we could move in that direction. just wondered if we could move in that direction

Speaker 1: Will, why don't you start? Will, why don't you start? will why don't you start

Speaker 7: Yes. Hey, good morning. Thanks for the question. Yes, did see the news, did read their deck. I mean, the short answer is yes. We're in active conversations around tokenization as a service, as a business concept. Just taking a step back in terms of what's that technology stack that you were referring to, we compete with Securitize products today like BUIDL, other products in the market. We're winning mandates even since this deck was published earlier this week. We're up another $20 million in flows into the digital assets platform, into WTGXX. How I think of us as compared to our competitors and how we're winning this business, at a big picture, it's the most regulated structures with the highest functionality. In terms of the tech stack that we've got, it's an asset management platform. That's what WisdomTree does today, right? We're the asset manager. It's a tokenization platform. Yes. yes Hey, good morning. hey good morning Thanks for the question. thanks for the question Yes, did see the news, did read their deck. yes did see the news did read their deck I mean, the short answer is yes. i mean the short answer is yes We're in active conversations around tokenization as a service, as a business concept. we're in active conversations around tokenization as a service as a business concept Just taking a step back in terms of what's that technology stack that you were referring to, we compete with Securitize products today like BUIDL, other products in the market. just taking a step back in terms of what's that technology stack that you were referring to we compete with securitize products today like buidl other products in the market We're winning mandates even since this deck was published earlier this week. we're winning mandates even since this deck was published earlier this week We're up another $20 million in flows into the digital assets platform, into WTGXX. we're up another $20 million in flows into the digital assets platform into wtgxx How I think of us as compared to our competitors and how we're winning this business, at a big picture, it's the most regulated structures with the highest functionality. how i think of us as compared to our competitors and how we're winning this business at a big picture it's the most regulated structures with the highest functionality In terms of the tech stack that we've got, it's an asset management platform. in terms of the tech stack that we've got it's an asset management platform That's what WisdomTree does today, right? that's what wisdomtree does today right We're the asset manager. we're the asset manager It's a tokenization platform. it's a tokenization platform We refer to it as our token issuance platform, TIP. It's also stablecoin orchestration. An example of a stablecoin orchestrator would be like a zerohash that's been in the news recently. We do all three of those things in our stack. The synergies that come with that have allowed us to customize things for clients and meet them where they are and win business that way. I think going forward, we're going to be adding things like trading and 24/7 T-in-cit liquidity to these exposures as well, making them feel more and more like a crypto-native business or a crypto-native exposure, sorry, improving upon what exists today. We're very excited about that. I think you'll be seeing more coming there in the near future. All told, we feel great about our position in the market with this. We refer to it as our token issuance platform, TIP. we refer to it as our token issuance platform tip It's also stablecoin orchestration. it's also stablecoin orchestration An example of a stablecoin orchestrator would be like a zerohash that's been in the news recently. an example of a stablecoin orchestrator would be like a zerohash that's been in the news recently We do all three of those things in our stack. we do all three of those things in our stack The synergies that come with that have allowed us to customize things for clients and meet them where they are and win business that way. the synergies that come with that have allowed us to customize things for clients and meet them where they are and win business that way I think going forward, we're going to be adding things like trading and 24/7 T-in-cit liquidity to these exposures as well, making them feel more and more like a crypto-native business or a crypto-native exposure, sorry, improving upon what exists today. i think going forward we're going to be adding things like trading and 24/7 t-in-cit liquidity to these exposures as well making them feel more and more like a crypto-native business or a crypto-native exposure sorry improving upon what exists today We're very excited about that. we're very excited about that I think you'll be seeing more coming there in the near future. i think you'll be seeing more coming there in the near future All told, we feel great about our position in the market with this. all told we feel great about our position in the market with this Hopefully, the market continues to value and appreciate that, and we're going to keep winning business going forward. Hopefully, the market continues to value and appreciate that, and we're going to keep winning business going forward. hopefully the market continues to value and appreciate that and we're going to keep winning business going forward

Speaker 3: All right. That's really helpful. Sorry. All right. all right That's really helpful. that's really helpful Sorry. sorry

Speaker 1: Hey, George. Let me just throw one thing in. I don't know whether Securitize actually goes public with a valuation of $1 billion. If it does, you would literally have a public direct value comparison to a part of our digital asset business to put in your sort of sum-of-the-parts analysis of WisdomTree. I would expect that if such a thing were to take place, WisdomTree would trade higher. Thanks, George. Hey, George. hey george Let me just throw one thing in. let me just throw one thing in I don't know whether Securitize actually goes public with a valuation of $1 billion. i don't know whether securitize actually goes public with a valuation of $1 billion If it does, you would literally have a public direct value comparison to a part of our digital asset business to put in your sort of sum-of-the-parts analysis of WisdomTree. if it does you would literally have a public direct value comparison to a part of our digital asset business to put in your sort of sum-of-the-parts analysis of wisdomtree I would expect that if such a thing were to take place, WisdomTree would trade higher. i would expect that if such a thing were to take place wisdomtree would trade higher Thanks, George. thanks george

Speaker 3: Great. One other question, if I could. You mentioned relative to Ceres and the fact that you now have entered the private asset market. When you say we have just now entered the private asset market, are you contemplating other moves there? I'm just curious how that would be done. Great. great One other question, if I could. one other question if i could You mentioned relative to Ceres and the fact that you now have entered the private asset market. you mentioned relative to ceres and the fact that you now have entered the private asset market When you say we have just now entered the private asset market, are you contemplating other moves there? when you say we have just now entered the private asset market are you contemplating other moves there I'm just curious how that would be done. i'm just curious how that would be done

Speaker 1: We're very, very disciplined in our acquisition, a highly accretive transaction, one that really gave us leadership in a very exciting uncorrelated asset. This is definitely just the beginning. For those that have been following WisdomTree for a number of years, if you remember, our first investment in Europe was now almost 11 years ago with an investment in something called BOOST. You could see how over a 10, 11-year journey, how we grew that. We're definitely focused on privates. We see opportunities. I can't flag for you how we will execute against it, but only know that we're focused on it, and I expect that you'll see more to come. We're very, very disciplined in our acquisition, a highly accretive transaction, one that really gave us leadership in a very exciting uncorrelated asset. we're very very disciplined in our acquisition a highly accretive transaction one that really gave us leadership in a very exciting uncorrelated asset This is definitely just the beginning. this is definitely just the beginning For those that have been following WisdomTree for a number of years, if you remember, our first investment in Europe was now almost 11 years ago with an investment in something called BOOST. for those that have been following wisdomtree for a number of years if you remember our first investment in europe was now almost 11 years ago with an investment in something called boost You could see how over a 10, 11-year journey, how we grew that. you could see how over a 10 11-year journey how we grew that We're definitely focused on privates. we're definitely focused on privates We see opportunities. we see opportunities I can't flag for you how we will execute against it, but only know that we're focused on it, and I expect that you'll see more to come. i can't flag for you how we will execute against it but only know that we're focused on it and i expect that you'll see more to come

Speaker 3: All right. Thanks, guys. Appreciate it. All right. all right Thanks, guys. thanks guys Appreciate it. appreciate it

Speaker 8: Your next question comes from Mike Grondahl with Northland Securities. Please state your question. Your next question comes from Mike Grondahl with Northland Securities. your next question comes from mike grondahl with northland securities Please state your question. please state your question

Speaker 2: Hey, guys. Thanks. Two questions. One. Looking at slide 13, the digital asset metrics, the $592 million that's just grown like a weed, can you talk in a little bit more detail the underlying drivers of that? You mentioned stablecoin issuers. What customers, whether it's institutional or retail, are buying those funds? I think if you break that down, it would be helpful. Hey, guys. hey guys Thanks. thanks Two questions. two questions One. one Looking at slide 13, the digital asset metrics, the $592 million that's just grown like a weed, can you talk in a little bit more detail the underlying drivers of that? looking at slide 13 the digital asset metrics the $592 million that's just grown like a weed can you talk in a little bit more detail the underlying drivers of that You mentioned stablecoin issuers. you mentioned stablecoin issuers What customers, whether it's institutional or retail, are buying those funds? what customers whether it's institutional or retail are buying those funds I think if you break that down, it would be helpful. i think if you break that down it would be helpful

Speaker 1: Hey, Will, I think that's you. Hey, Will, I think that's you. hey will i think that's you

Speaker 7: Yeah. Happy to take the question. In the deck, $590 million, I think as of today's close, it should be about $680 million. Yes, it's grown very quickly, quarter-over-quarter, up from $30 million at the start of the year. That's exactly right. We see a lot of success with stablecoin issuers. These are businesses that are, whether in a regulated construct or kind of in other constructs, issuing stablecoins. They invest in WTGXX as a reserve asset that backs their stablecoin. That's one primary market segment. We also see, as Jarrett referenced, businesses that are crypto-native or blockchain-native that use stablecoin as part of their treasury management. They're looking for a kind of a treasury asset that's yield-bearing, that fits within their workflows. That's where the WTGXX, the money market fund, has great product-market fit as well. I expect as more and more businesses in the U.S. adopt stablecoins, the addressable market for that is going to grow even more. Beyond that, there are different collateral management use cases that we're seeing as well, both in a crypto-native construct, but also with traditional businesses as well. Those are the three types of businesses that we're seeing success on the institutional side. On retail, where we see the most applicability going forward is with on-chain-native customers. We call them on-chain experts. These are people that participate in DeFi, invest in DeFi, do things like yield farming. They're looking for traditional exposures that they can use as part of their strategies. Just by way of example, we launched yesterday all 14 of our products on the Plume blockchain. Maybe sounds in the weeds, but it's a blockchain that's focused on real-world asset exposures. Got a $10 million seed investment as part of that. Yeah. yeah Happy to take the question. happy to take the question In the deck, $590 million, I think as of today's close, it should be about $680 million. in the deck $590 million i think as of today's close it should be about $680 million Yes, it's grown very quickly, quarter- over- quarter, up from $30 million at the start of the year. yes it's grown very quickly quarter- over- quarter up from $30 million at the start of the year That's exactly right. that's exactly right We see a lot of success with stablecoin issuers. we see a lot of success with stablecoin issuers These are businesses that are, whether in a regulated construct or kind of in other constructs, issuing stablecoins. these are businesses that are whether in a regulated construct or kind of in other constructs issuing stablecoins They invest in WTGXX as a reserve asset that backs their stablecoin. they invest in wtgxx as a reserve asset that backs their stablecoin That's one primary market segment. that's one primary market segment We also see, as Jarrett referenced, businesses that are crypto-native or blockchain-native that use stablecoin as part of their treasury management. we also see as jarrett referenced businesses that are crypto-native or blockchain-native that use stablecoin as part of their treasury management They're looking for a kind of a treasury asset that's yield-bearing, that fits within their workflows. they're looking for a kind of a treasury asset that's yield-bearing that fits within their workflows That's where the WTGXX, the money market fund, has great product-market fit as well. that's where the wtgxx the money market fund has great product-market fit as well I expect as more and more businesses in the U.S. adopt stablecoins, the addressable market for that is going to grow even more. i expect as more and more businesses in the u.s adopt stablecoins the addressable market for that is going to grow even more Beyond that, there are different collateral management use cases that we're seeing as well, both in a crypto-native construct, but also with traditional businesses as well. beyond that there are different collateral management use cases that we're seeing as well both in a crypto-native construct but also with traditional businesses as well Those are the three types of businesses that we're seeing success on the institutional side. those are the three types of businesses that we're seeing success on the institutional side On retail, where we see the most applicability going forward is with on-chain-native customers. on retail where we see the most applicability going forward is with on-chain-native customers We call them on-chain experts. we call them on-chain experts These are people that participate in DeFi, invest in DeFi, do things like yield farming. these are people that participate in defi invest in defi do things like yield farming They're looking for traditional exposures that they can use as part of their strategies. they're looking for traditional exposures that they can use as part of their strategies Just by way of example, we launched yesterday all 14 of our products on the Plume blockchain. just by way of example we launched yesterday all 14 of our products on the plume blockchain Maybe sounds in the weeds, but it's a blockchain that's focused on real-world asset exposures. maybe sounds in the weeds but it's a blockchain that's focused on real-world asset exposures Got a $10 million seed investment as part of that. got a $10 million seed investment as part of that You can just see in the community after that announcement, the excitement around having assets that yield something like north of 10% that they can use as part of their exposures. Those are the types of customers that we're seeing that's driving that AUM higher. You can just see in the community after that announcement, the excitement around having assets that yield something like north of 10% that they can use as part of their exposures. you can just see in the community after that announcement the excitement around having assets that yield something like north of 10% that they can use as part of their exposures Those are the types of customers that we're seeing that's driving that AUM higher. those are the types of customers that we're seeing that's driving that aum higher

Speaker 2: Great. That was really helpful. Great. great That was really helpful. that was really helpful

Speaker 1: Hey, Will, could you also talk about our public filing for the Money Market Fund that's in? We're waiting for the SEC to reopen. Hey, Will, could you also talk about our public filing for the Money Market Fund that's in? hey will could you also talk about our public filing for the money market fund that's in We're waiting for the SEC to reopen. we're waiting for the sec to reopen

Speaker 7: Yeah. I alluded to this, but I think critically for these exposures, we want them to trade in a secondary market at T-in-cit liquidity, 24/7 liquidity. That's really the power of blockchain that you've seen with tokens, Bitcoin even itself, right? Native 24/7 peer-to-peer transferability and kind of active markets, right? We are actively working on bringing that forward for the WisdomTree Money Market Fund, WTGXX. That kind of adds functionality above and beyond what exists today in the traditional space and really meets a lot of the clients that I named where they are, where in addition to kind of some of the on-chain functionality, on-chain orders that we have today, the ability to sell instantly for stablecoins just adds a whole new layer that they can't do today. We are working on that. There's a public filing around it that you can read more on at the SEC. Yeah. yeah I alluded to this, but I think critically for these exposures, we want them to trade in a secondary market at T-in-cit liquidity, 24/7 liquidity. i alluded to this but i think critically for these exposures we want them to trade in a secondary market at t-in-cit liquidity 24/7 liquidity That's really the power of blockchain that you've seen with tokens, Bitcoin even itself, right? that's really the power of blockchain that you've seen with tokens bitcoin even itself right Native 24/7 peer-to-peer transferability and kind of active markets, right? native 24/7 peer-to-peer transferability and kind of active markets right We are actively working on bringing that forward for the WisdomTree Money Market Fund, WTGXX. we are actively working on bringing that forward for the wisdomtree money market fund wtgxx That kind of adds functionality above and beyond what exists today in the traditional space and really meets a lot of the clients that I named where they are, where in addition to kind of some of the on-chain functionality, on-chain orders that we have today, the ability to sell instantly for stablecoins just adds a whole new layer that they can't do today. that kind of adds functionality above and beyond what exists today in the traditional space and really meets a lot of the clients that i named where they are where in addition to kind of some of the on-chain functionality on-chain orders that we have today the ability to sell instantly for stablecoins just adds a whole new layer that they can't do today We are working on that. we are working on that There's a public filing around it that you can read more on at the SEC. there's a public filing around it that you can read more on at the sec Hopefully, we can bring that forward soon. Hopefully, we can bring that forward soon. hopefully we can bring that forward soon

Speaker 2: Thank you. Thank you. thank you

Speaker 1: Thanks. Thanks. thanks

Speaker 2: Jono, what would you say are the top two priorities for 2026 as you're sitting here today? Jono, what would you say are the top two priorities for 2026 as you're sitting here today? jono what would you say are the top two priorities for 2026 as you're sitting here today

Speaker 1: I would say faster revenue growth and higher revenue capture, continued scale. I would say faster revenue growth and higher revenue capture, continued scale. i would say faster revenue growth and higher revenue capture continued scale

Speaker 2: Got it. Hey, congrats, guys. Thank you. Got it. got it Hey, congrats, guys. hey congrats guys Thank you. thank you

Speaker 1: Thank you. Thank you. thank you

Speaker 8: Your next question comes from Michael Cyprys with Morgan Stanley. Please state your question. Your next question comes from Michael Cyprys with Morgan Stanley. your next question comes from michael cyprys with morgan stanley Please state your question. please state your question

Speaker 10: Hey, good morning. Thanks for taking the question. Maybe just sticking with the digital assets topic, can you just talk a little bit about some of the steps you're looking to take over the next 12 to 24 months to expand distribution access to build more customers, more assets in these funds? I think most of the traction has been on the money market fund, but you have a whole host of them. I think you mentioned 13. You have the treasury one. You have a gold one that's been out there for a bit. Remind us which blockchain they're on. How are you thinking about expanding access? What's the scope for partnering with some folks out there like Coinbase, Gemini, and others? Thanks. Hey, good morning. hey good morning Thanks for taking the question. thanks for taking the question Maybe just sticking with the digital assets topic, can you just talk a little bit about some of the steps you're looking to take over the next 12 to 24 months to expand distribution access to build more customers, more assets in these funds? maybe just sticking with the digital assets topic can you just talk a little bit about some of the steps you're looking to take over the next 12 to 24 months to expand distribution access to build more customers more assets in these funds I think most of the traction has been on the money market fund, but you have a whole host of them. i think most of the traction has been on the money market fund but you have a whole host of them I think you mentioned 13. i think you mentioned 13 You have the treasury one. you have the treasury one You have a gold one that's been out there for a bit. you have a gold one that's been out there for a bit Remind us which blockchain they're on. remind us which blockchain they're on How are you thinking about expanding access? how are you thinking about expanding access What's the scope for partnering with some folks out there like Coinbase, Gemini, and others? what's the scope for partnering with some folks out there like coinbase gemini and others Thanks. thanks

Speaker 1: Will, you're in. Will, you're in. will you're in

Speaker 7: Yes. In terms of specifically on the blockchain question, we're now on seven public blockchains: Ethereum, Arbitrum, Avalanche, Base, Optimism, Stellar, and now Plume. I think I named all seven. It kind of gets in the weeds, but really, we want to just meet clients where they are. When we see commercial opportunities, that there's a kind of organic adoption happening on a certain blockchain for a certain use case, we like to bring our products there and certain technical considerations and risk considerations go into that as well. In terms of expanding the reach, right now, we've got kind of two platforms that we're onboarding people to, right? There's U.S. retail that can onboard to WisdomTree Prime, which feels a lot like a kind of traditional neobank, neobroker experience. Yes. yes In terms of specifically on the blockchain question, we're now on seven public blockchains: Ethereum, Arbitrum, Avalanche, Base, Optimism, Stellar, and now Plume. in terms of specifically on the blockchain question we're now on seven public blockchains ethereum arbitrum avalanche base optimism stellar and now plume I think I named all seven. i think i named all seven It kind of gets in the weeds, but really, we want to just meet clients where they are. it kind of gets in the weeds but really we want to just meet clients where they are When we see commercial opportunities, that there's a kind of organic adoption happening on a certain blockchain for a certain use case, we like to bring our products there and certain technical considerations and risk considerations go into that as well. when we see commercial opportunities that there's a kind of organic adoption happening on a certain blockchain for a certain use case we like to bring our products there and certain technical considerations and risk considerations go into that as well In terms of expanding the reach, right now, we've got kind of two platforms that we're onboarding people to, right? in terms of expanding the reach right now we've got kind of two platforms that we're onboarding people to right There's U.S. retail that can onboard to WisdomTree Prime, which feels a lot like a kind of traditional neobank, neobroker experience. there's u.s retail that can onboard to wisdomtree prime which feels a lot like a kind of traditional neobank neobroker experience We think we've done that as well as it can be, but that requires downloading an app, signing up, kind of going through that process. We've also got WisdomTree Connect, where there are businesses that onboard with us. That's kind of a traditional business KYB onboarding process as well. Once we onboard them, we essentially tag the wallets that they whitelist with us, and they're allowed to engage with our products and services from there. That's kind of where we're starting at today. I think there's a lot of opportunity to expand onboarding beyond what we can do just directly through those two channels. One that we've talked about in the past would be the right sorts of fintech relationships, other fintechs where we can do a B2B2C model where WisdomTree's products, the transactions that we support, could be available through other apps as well. We think we've done that as well as it can be, but that requires downloading an app, signing up, kind of going through that process. we think we've done that as well as it can be but that requires downloading an app signing up kind of going through that process We've also got WisdomTree Connect, where there are businesses that onboard with us. we've also got wisdomtree connect where there are businesses that onboard with us That's kind of a traditional business KYB onboarding process as well. that's kind of a traditional business kyb onboarding process as well Once we onboard them, we essentially tag the wallets that they whitelist with us, and they're allowed to engage with our products and services from there. once we onboard them we essentially tag the wallets that they whitelist with us and they're allowed to engage with our products and services from there That's kind of where we're starting at today. that's kind of where we're starting at today I think there's a lot of opportunity to expand onboarding beyond what we can do just directly through those two channels. i think there's a lot of opportunity to expand onboarding beyond what we can do just directly through those two channels One that we've talked about in the past would be the right sorts of fintech relationships, other fintechs where we can do a B2B2C model where WisdomTree's products, the transactions that we support, could be available through other apps as well. one that we've talked about in the past would be the right sorts of fintech relationships other fintechs where we can do a b2b2c model where wisdomtree's products the transactions that we support could be available through other apps as well What's actually quite interesting about doing this in kind of a DeFi-native way is there could be other ways that, and this is all kind of whiteboarding hypotheticals at this point, but the industry is working on this, is onboarding based on attestations or onboarding people in a more decentralized construct where they can just onboard their wallet directly with us by filling out a web form. That's early innings on those things, but a key focus for digital assets over the next 12 months is, in addition to how do we get these things trading within a crypto-native workflow, how do we just onboard more and more people just to sell our products and services to them while still doing it in a very trusted, regulatory-compliant way? That's how I think about it. I hope that answers your question. What's actually quite interesting about doing this in kind of a DeFi-native way is there could be other ways that, and this is all kind of whiteboarding hypotheticals at this point, but the industry is working on this, is onboarding based on attestations or onboarding people in a more decentralized construct where they can just onboard their wallet directly with us by filling out a web form. what's actually quite interesting about doing this in kind of a defi-native way is there could be other ways that and this is all kind of whiteboarding hypotheticals at this point but the industry is working on this is onboarding based on attestations or onboarding people in a more decentralized construct where they can just onboard their wallet directly with us by filling out a web form That's early innings on those things, but a key focus for digital assets over the next 12 months is, in addition to how do we get these things trading within a crypto-native workflow, how do we just onboard more and more people just to sell our products and services to them while still doing it in a very trusted, regulatory-compliant way? that's early innings on those things but a key focus for digital assets over the next 12 months is in addition to how do we get these things trading within a crypto-native workflow how do we just onboard more and more people just to sell our products and services to them while still doing it in a very trusted regulatory-compliant way That's how I think about it. that's how i think about it I hope that answers your question. i hope that answers your question

Speaker 10: Great. More broadly on tokenization, with the Ceres acquisition that brings you into the private space, I guess, how do you think about the opportunity for tokenizing real-world assets, including farmland? Where is that on the priority stack? How might you go about that? What steps might you need to take in order to bring that to fruition? Great. great More broadly on tokenization, with the Ceres acquisition that brings you into the private space, I guess, how do you think about the opportunity for tokenizing real-world assets, including farmland? more broadly on tokenization with the ceres acquisition that brings you into the private space i guess how do you think about the opportunity for tokenizing real-world assets including farmland Where is that on the priority stack? where is that on the priority stack How might you go about that? how might you go about that What steps might you need to take in order to bring that to fruition? what steps might you need to take in order to bring that to fruition

Speaker 1: Jarrett, you want to start? Jarrett, you want to start? jarrett you want to start

Speaker 12: Sure. I think there are certain things that are certainly on the roadmap for tokenization that make all the sense in the world. Farmland is actually not one of those. It's not really the most suitable solution for it. For us, the going on farmland, we've got a great model there, great returns, uncorrelated asset, but also some nice synergies with our own distribution team. We look to run that business, run it well with the existing team, but then look at how we better leverage our own infrastructure to enhance the returns there. Sure. sure I think there are certain things that are certainly on the roadmap for tokenization that make all the sense in the world. i think there are certain things that are certainly on the roadmap for tokenization that make all the sense in the world Farmland is actually not one of those. farmland is actually not one of those It's not really the most suitable solution for it. it's not really the most suitable solution for it For us, the going on farmland, we've got a great model there, great returns, uncorrelated asset, but also some nice synergies with our own distribution team. for us the going on farmland we've got a great model there great returns uncorrelated asset but also some nice synergies with our own distribution team We look to run that business, run it well with the existing team, but then look at how we better leverage our own infrastructure to enhance the returns there. we look to run that business run it well with the existing team but then look at how we better leverage our own infrastructure to enhance the returns there

Speaker 1: Hey, Mike. I would also just add that you are seeing we're in the early days. The 40 Act ETFs do allow for up to 15% of the portfolio to be in privates. I would expect that you will see that evolve for the industry, but for WisdomTree specifically, we think it's a very big opportunity for us to blend privates and publics in the most seamless way. There'll be more to come on that in the coming quarters. Hey, Mike. hey mike I would also just add that you are seeing we're in the early days. i would also just add that you are seeing we're in the early days The 40 Act ETFs do allow for up to 15% of the portfolio to be in privates. the 40 act etfs do allow for up to 15% of the portfolio to be in privates I would expect that you will see that evolve for the industry, but for WisdomTree specifically, we think it's a very big opportunity for us to blend privates and publics in the most seamless way. i would expect that you will see that evolve for the industry but for wisdomtree specifically we think it's a very big opportunity for us to blend privates and publics in the most seamless way There'll be more to come on that in the coming quarters. there'll be more to come on that in the coming quarters

Speaker 10: Great. Thanks so much. Great. great Thanks so much. thanks so much

Speaker 8: Your next question comes from Keith Housum with Northcoast Research. Please state your question. Your next question comes from Keith Housum with Northc oast Research. your next question comes from keith housum with northc oast research Please state your question. please state your question

Speaker 4: Good morning, guys. Thank you. Guys, just a very basic question. As we think about modeling the business, the Ceres business you guys acquired here, I understand it's a private asset and they're not priced every day like ETFs. How would we expect to find the AUM for this on a regular basis? Would we just get it at the beginning of the quarter and at the end of the quarter? Good morning, guys. good morning guys Thank you. thank you Guys, just a very basic question. guys just a very basic question As we think about modeling the business, the Ceres business you guys acquired here, I understand it's a private asset and they're not priced every day like ETFs. as we think about modeling the business the ceres business you guys acquired here i understand it's a private asset and they're not priced every day like etfs how How would we expect to find the AUM for this on a regular basis? how would we expect to find the aum for this on a regular basis Would we just get it at the beginning of the quarter and at the end of the quarter? would we just get it at the beginning of the quarter and at the end of the quarter

Speaker 6: Bryan? Bryan? bryan

Speaker 5: Yeah, it's going to be the latter. The AUM for Ceres will be reported at the end of the quarter. Yeah, it's going to be the latter. yeah it's going to be the latter The AUM for Ceres will be reported at the end of the quarter. the aum for ceres will be reported at the end of the quarter

Speaker 4: Okay. Performance-based fees, is there any indicators that we can look at that we might be able to try to estimate what the performance-based fees might be? Okay. okay Performance-based fees, is there any indicators that we can look at that we might be able to try to estimate what the performance-based fees might be? performance-based fees is there any indicators that we can look at that we might be able to try to estimate what the performance-based fees might be

Speaker 5: Yeah, sure. Let's think through the AUM walk. We are starting with AUM of roughly $1.7 billion-$1.8 billion today. Make your own flow assumption, but as a reminder, we had stated a target of roughly $750 million of AUM into farmland-based strategies over the next five years. It would be lower in the initial years we integrate the business, and it would ramp up over that time horizon. We need to think about what mark we apply to our AUM. I'm going to assume roughly a 7%-8% mark on Ceres' AUM plus the flow, whatever flow assumption we're making. That mark seems to be a reasonable one taking into consideration rental yields, long-term historical farmland returns offset by fund expenses and fees. That mark assumption is a baseline one. Solar and data center opportunities could drive this higher. Yeah, sure. yeah sure Let's think through the AUM walk. let's think through the aum walk We are starting with AUM of roughly $1.7 billion- $1.8 billion today. we are starting with aum of roughly $1.7 billion- $1.8 billion today Make your own flow assumption, but as a reminder, we had stated a target of roughly $750 million of AUM into farmland-based strategies over the next five years. make your own flow assumption but as a reminder we had stated a target of roughly $750 million of aum into farmland-based strategies over the next five years It would be lower in the initial years we integrate the business, and it would ramp up over that time horizon. it would be lower in the initial years we integrate the business and it would ramp up over that time horizon We need to think about what mark we apply to our AUM. we need to think about what mark we apply to our aum I'm going to assume roughly a 7%- 8% mark on Ceres ' AUM plus the flow, whatever flow assumption we're making. i'm going to assume roughly a 7%- 8% mark on ceres' aum plus the flow whatever flow assumption we're making That mark seems to be a reasonable one taking into consideration rental yields, long-term historical farmland returns offset by fund expenses and fees. that mark seems to be a reasonable one taking into consideration rental yields long-term historical farmland returns offset by fund expenses and fees That mark assumption is a baseline one. that mark assumption is a baseline one Solar and data center opportunities could drive this higher. solar and data center opportunities could drive this higher That said, an adverse market environment could drive it lower as well. The performance fee is roughly 15% of the mark on a net basis. The formula, if I were thinking about this, is Ceres' beginning AUM plus your flow assumption, times your mark assumption, times 15%, and that should get you into the neighborhood of what our performance fee would be. On the management fees, it's 1% of average AUM, and we provided some indication with respect to expenses on our prepared remarks. That said, an adverse market environment could drive it lower as well. that said an adverse market environment could drive it lower as well The performance fee is roughly 15% of the mark on a net basis. the performance fee is roughly 15% of the mark on a net basis The formula, if I were thinking about this, is Ceres ' beginning AUM plus your flow assumption, times your mark assumption, times 15%, and that should get you into the neighborhood of what our performance fee would be. the formula if i were thinking about this is ceres' beginning aum plus your flow assumption times your mark assumption times 15% and that should get you into the neighborhood of what our performance fee would be On the management fees, it's 1% of average AUM, and we provided some indication with respect to expenses on our prepared remarks. on the management fees it's 1% of average aum and we provided some indication with respect to expenses on our prepared remarks

Speaker 4: Great. Thanks. I appreciate that. In terms of the digital strategy, I know there's a lot going on there. I can appreciate it, though I may not be able to understand all the complexities there. If I think about what the impact is today to the income statement, I guess, what kind of income impact are we talking about today? I'm sure it's not that great, but maybe you can verify for me. Does today's performance justify increased investment or maintaining where you're at and just continuing down that path? Great. great Thanks. thanks I appreciate that. i appreciate that In terms of the digital strategy, I know there's a lot going on there. in terms of the digital strategy i know there's a lot going on there I can appreciate it, though I may not be able to understand all the complexities there. i can appreciate it though i may not be able to understand all the complexities there If I think about what the impact is today to the income statement, I guess, what kind of income impact are we talking about today? if i think about what the impact is today to the income statement i guess what kind of income impact are we talking about today I'm sure it's not that great, but maybe you can verify for me. i'm sure it's not that great but maybe you can verify for me Does today's performance justify increased investment or maintaining where you're at and just continuing down that path? does today's performance justify increased investment or maintaining where you're at and just continuing down that path

Speaker 1: Bryan? Bryan? bryan

Speaker 5: I'm sorry, you want confirmation on what our current spend is in 2025? I'm sorry, you want confirmation on what our current spend is in 2025? i'm sorry you want confirmation on what our current spend is in 2025

Speaker 4: Not only the spend, but also the revenue. I know a lot's going on here, and I understand the fact you've got the. Not only the spend, but also the revenue. not only the spend but also the revenue I know a lot's going on here, and I understand the fact you've got the. i know a lot's going on here and i understand the fact you've got the

Speaker 5: Yeah. So. Right. Yeah. yeah So. so Right. right Got it. On the revenue side right now, we have, as Will had indicated earlier, $650 million of AUM. That's roughly at a, call it, 25 basis point fee capture. That's our primary driver with respect to revenue today on the digital platform. The expenses and our net operating loss is in the neighborhood of what we've communicated previously. It's mid-20s is kind of where we're at at this point in time. Got it. got it On the revenue side right now, we have, as Will had indicated earlier, $650 million of AUM. on the revenue side right now we have as will had indicated earlier $650 million of aum That's roughly at a, call it, 25 basis point fee capture. that's roughly at a call it 25 basis point fee capture That's our primary driver with respect to revenue today on the digital platform. that's our primary driver with respect to revenue today on the digital platform The expenses and our net operating loss is in the neighborhood of what we've communicated previously. the expenses and our net operating loss is in the neighborhood of what we've communicated previously It's mid-20s is kind of where we're at at this point in time. it's mid-20s is kind of where we're at at this point in time

Speaker 1: Let me also just add, we believe strongly that there is a structural shift going on. We're ready for it, and the trend is much higher. In fact, I would say we believe eventually everything, nearly everything, will go on chain. Tokenization of real-world assets over time will change the face of financial services. With what we've accomplished year-to-date, we've gone from almost zero to over $600 million, and we're on the functional cutting edge of what is happening in real-world assets. We're very, very bullish on it. Let me also just add, we believe strongly that there is a structural shift going on. let me also just add we believe strongly that there is a structural shift going on We're ready for it, and the trend is much higher. we're ready for it and the trend is much higher In fact, I would say we believe eventually everything, nearly everything, will go on chain. in fact i would say we believe eventually everything nearly everything will go on chain Tokenization of real-world assets over time will change the face of financial services. tokenization of real-world assets over time will change the face of financial services With what we've accomplished year- to- date, we've gone from almost zero to over $600 million, and we're on the functional cutting edge of what is happening in real-world assets. with what we've accomplished year- to- date we've gone from almost zero to over $600 million and we're on the functional cutting edge of what is happening in real-world assets We're very, very bullish on it. we're very very bullish on it

Speaker 4: Great. Thank you. Great. great Thank you. thank you

Speaker 8: Thank you. Your next question comes from Chris Kotowski with Oppenheimer & Co. Please state your question. Thank you. thank you Your next question comes from Chris Kotowski with Oppenheimer & Co. Please state your question. your next question comes from chris kotowski with oppenheimer & co please state your question

Speaker 9: Yeah, most of mine have been answered, thank you. I was just wondering, the $2.4 billion outflows post the quarter, it seems like it was in commodities and USFR on two or three days that just looked kind of like not your normal flows. I was wondering if there's any explanation you have for that. Yeah, most of mine have been answered, thank you. yeah most of mine have been answered thank you I was just wondering, the $2.4 billion outflows post the quarter, it seems like it was in commodities and USFR on two or three days that just looked kind of like not your normal flows. i was just wondering the $2.4 billion outflows post the quarter it seems like it was in commodities and usfr on two or three days that just looked kind of like not your normal flows I was wondering if there's any explanation you have for that. i was wondering if there's any explanation you have for that

Speaker 1: Jeremy, do you want to start there? Jeremy, do you want to start there? jeremy do you want to start there

Speaker 11: Yeah. Sure. Great to talk to you. Jeremy Schwartz, Global CIO. Our commodities AUM, when you look at the start of the year, it started at $22 billion. Today, it's $32 billion. You've had a 50%-60% increase in some of these prices, like gold moving higher. I think after the big, big move higher, there was some profit-taking, but most people's positions are up 50% on the year. That was a natural source. We did see some allocations. You had the Fed meeting, and there's some discussion of interest rates. You saw some people with the robust market put more of that cash to work in other things. At the same time as USFR redeemed, we saw Japan, which had been in outflow mode but had $300 million or $400 million. Some of that might have been a reallocation, putting cash to work. Yeah. yeah Sure. sure Great to talk to you. great to talk to you Jeremy Schwartz, Global CIO . jeremy schwartz global cio Our commodities AUM, when you look at the start of the year, it started at $22 billion. our commodities aum when you look at the start of the year it started at $22 billion Today, it's $32 billion. today it's $32 billion You've had a 50%- 60% increase in some of these prices, like gold moving higher. you've had a 50%- 60% increase in some of these prices like gold moving higher I think after the big, big move higher, there was some profit-taking, but most people's positions are up 50% on the year. i think after the big big move higher there was some profit-taking but most people's positions are up 50% on the year That was a natural source. that was a natural source We did see some allocations. we did see some allocations You had the Fed meeting, and there's some discussion of interest rates. you had the fed meeting and there's some discussion of interest rates You saw some people with the robust market put more of that cash to work in other things. you saw some people with the robust market put more of that cash to work in other things At the same time as USFR redeemed, we saw Japan, which had been in outflow mode but had $300 million or $400 million. at the same time as usfr redeemed we saw japan which had been in outflow mode but had $300 million or $400 million Some of that might have been a reallocation, putting cash to work. some of that might have been a reallocation putting cash to work I think we continue to see from the big flows at the start of the year just actually a lot of energy below the surface and a bunch of the new thematics having this halo effect where you're getting new funds to scale on $100 million much quicker. Even beyond those few big ones, you're seeing things like nuclear, rare earth, quantum computing, which are all recent launches, get to $100 million in our European business very quickly. There's a lot of good breadth, as Jarrett talked about earlier. That's building under that surface there. I think we continue to see from the big flows at the start of the year just actually a lot of energy below the surface and a bunch of the new thematics having this halo effect where you're getting new funds to scale on $100 million much quicker. i think we continue to see from the big flows at the start of the year just actually a lot of energy below the surface and a bunch of the new thematics having this halo effect where you're getting new funds to scale on $100 million much quicker Even beyond those few big ones, you're seeing things like nuclear, rare earth, quantum computing, which are all recent launches, get to $100 million in our European business very quickly. even beyond those few big ones you're seeing things like nuclear rare earth quantum computing which are all recent launches get to $100 million in our european business very quickly There's a lot of good breadth, as Jarrett talked about earlier. there's a lot of good breadth as jarrett talked about earlier That's building under that surface there. that's building under that surface there

Speaker 12: [crosstalk] I wanted to jump in there too. Underlying some of the things that Jer said, some of these, you never like to see outflows, but some profit-taking in gold when you've seen the move that gold has had is pretty reasonable. With USFR, really, that was down to one or two clients that were rotating into other names, as Jer also mentioned. In one case, in the largest piece of that, rotated into something with actually a higher fee. While AUM was down, the net revenue of that rotation was up. The biggest point I'd make is you can get caught up in some of the noise of some short-term moves. What I'm always looking at are more the fundamentals. We continue to do the things that are precursors for continued growth. [crosstalk] I wanted to jump in there too. [crosstalk] i wanted to jump in there too Underlying some of the things that Jer said, some of these, you never like to see outflows, but some profit-taking in gold when you've seen the move that gold has had is pretty reasonable. underlying some of the things that jer said some of these you never like to see outflows but some profit-taking in gold when you've seen the move that gold has had is pretty reasonable With USFR, really, that was down to one or two clients that were rotating into other names, as Jer also mentioned. with usfr really that was down to one or two clients that were rotating into other names as jer also mentioned In one case, in the largest piece of that, rotated into something with actually a higher fee. in one case in the largest piece of that rotated into something with actually a higher fee While AUM was down, the net revenue of that rotation was up. while aum was down the net revenue of that rotation was up The biggest point I'd make is you can get caught up in some of the noise of some short-term moves. the biggest point i'd make is you can get caught up in some of the noise of some short-term moves What I'm always looking at are more the fundamentals. what i'm always looking at are more the fundamentals We continue to do the things that are precursors for continued growth. we continue to do the things that are precursors for continued growth That is growing the number of our clients, but also growing the numbers of products per client. That continues, and that is the recipe for growth. The rest of it, in my book, is short-term noise. The long-term fundamentals for growth continue to be with us in a strong way. That is growing the number of our clients, but also growing the numbers of products per client. that is growing the number of our clients but also growing the numbers of products per client That continues, and that is the recipe for growth. that continues and that is the recipe for growth The rest of it, in my book, is short-term noise. the rest of it in my book is short-term noise The long-term fundamentals for growth continue to be with us in a strong way. the long-term fundamentals for growth continue to be with us in a strong way

Speaker 9: Okay. Great. Thank you. That's it for me. Okay. okay Great. great Thank you. thank you That's it for me. that's it for me

Speaker 8: Thank you. That's all the questions we have today. I'll hand the floor back to Jonathan Steinberg, CEO, for closing remarks. Thank you. Thank you. thank you That's all the questions we have today. that's all the questions we have today I'll hand the floor back to Jonathan Steinberg, CEO, for closing remarks. i'll hand the floor back to jonathan steinberg ceo for closing remarks Thank you. thank you

Speaker 1: I just want to thank all of you for your time and attention, and we'll speak to you next quarter. Thank you, everybody. Have a good day. I just want to thank all of you for your time and attention, and we'll speak to you next quarter. i just want to thank all of you for your time and attention and we'll speak to you next quarter Thank you, everybody. thank you everybody Have a good day. have a good day

Speaker 8: Thank you. This concludes today's call. All parties may disconnect. Have a good day. Thank you. thank you This concludes today's call. this concludes today's call All parties may disconnect. all parties may disconnect Have a good day. have a good day