WisdomTree reported stronger third-quarter financial results despite a 5.41% decline in its share price to $20.39. The asset manager recorded net income of $49.2 million, up from $19.7 million in the same quarter last year, with diluted earnings per share reaching $0.32 compared to $0.13 a year earlier.
Operating revenue climbed to $179.4 million, a 42.8% increase from $125.6 million in the prior-year period. Advisory fees contributed $151.6 million, while management fees generated $5.4 million. Operating income margin expanded to 41.3% from 36.3% year-over-year.
Record Assets and Substantial Inflows
Assets under management reached $171 billion at the end of September, up 5% from the prior quarter. The company attracted $4.6 billion in net inflows during the third quarter, with fixed-income, commodity and U.S. equity products driving the growth. Year-to-date net inflows exceeded $13.6 billion, representing a 13% annualized organic growth rate.
Average assets under management totaled $170.5 billion, compared with $130.8 billion in the same period a year earlier. Gross margin remained stable at 83%.
Digital Asset and Capital Allocation Initiatives
WisdomTree advanced its tokenization strategy through partnerships with MoonPay and BitGo. In September, the company partnered with MoonPay to expand U.S. access to tokenized funds and support stablecoin reserves through its WisdomTree Treasury Money Market Digital Fund. WisdomTree also launched WisdomTree Onchain, consolidating its tokenized funds and infrastructure on a single platform. In October, a partnership with BitGo provided institutional clients access to tokenized Treasury products with enhanced liquidity and collateral capabilities.
The company repurchased approximately 500,000 common shares for $10.6 million at an average price of $21.29 and retired $18.1 million in principal value of convertible notes due 2029 for $32.3 million. The board declared a quarterly dividend of $0.03 per share.
