WisdomTree shares declined 5.41% to $20.39 after the asset manager reported stronger third-quarter financial results. The drop came even as the company posted higher earnings, expanding operating margins and substantial fund inflows during the quarter. Year-to-date net inflows exceeded $13.6 billion, while assets under management reached a record $171 billion.

The report showed WisdomTree, Inc. (WT) combining record quarterly assets with double-digit organic growth and a deepening push into tokenized funds, covering the quarter ended September 30.

WisdomTree Reports Higher Q3 Earnings and Revenue

WisdomTree reported third-quarter net income of $49.2 million, up from $19.7 million in the same period last year. Diluted earnings per share came in at $0.32, compared with $0.13 in the third quarter of 2025. Adjusted net income totaled $49.5 million, and adjusted diluted earnings per share also reached $0.32.

The company generated $179.4 million in operating revenue, a 42.8% increase from $125.6 million in the prior-year quarter. Revenue also rose from $177.2 million in the second quarter, reflecting higher average assets under management. Advisory fees contributed $151.6 million, while management fees generated $5.4 million during the reporting period. For fee-based managers, those charges scale with client assets, making average assets under management the key driver of the fee line.

Operating income climbed to $74.1 million from $45.7 million a year earlier. As a result, the operating income margin expanded to 41.3%, compared with 36.3% in the prior-year quarter. On an adjusted basis, the margin reached 43.1%, marking a 480-basis-point annual improvement.

Record Assets Under Management on Sustained Inflows

WisdomTree ended September with $171 billion in assets under management, marking a 5% quarterly increase. The increase reflected continued net inflows and market appreciation across the firm's investment products. Average assets under management also reached $170.5 billion, up from $130.8 billion in September 2025.

During the third quarter, the company attracted $4.6 billion in net inflows across its United States and European operations, with fixed-income, commodity and U.S. equity products providing the primary support. Year-to-date net inflows exceeded $13.6 billion, representing a 13% annualized organic growth rate. Organic growth strips out market-driven asset gains to isolate new client money, a measure used to gauge underlying demand for a fund lineup independent of market direction.

The average advisory fee remained unchanged from the previous quarter at 0.36%. Revenue yield, however, declined one basis point to 0.42%, reflecting lower European transaction fees and performance fees. Gross margin stayed relatively stable at 83%, compared with 82.9% in the second quarter. Fee levels matter in this model because they set how much revenue each dollar of client assets produces.

Tokenization Push and Capital Returns

WisdomTree continued expanding its digital asset operations through several strategic partnerships during the quarter. Tokenization refers to issuing fund shares as digital tokens on blockchain rails, allowing traditional products to move through digital-asset infrastructure such as wallets, exchanges and collateral systems. In September, the company partnered with MoonPay to broaden U.S. access to tokenized funds. The agreement also supports stablecoin reserves through greater access to the WisdomTree Treasury Money Market Digital Fund.

The firm also introduced WisdomTree Onchain, bringing its tokenized funds and supporting infrastructure together under a single platform. In October, WisdomTree partnered with BitGo to provide institutional clients with access to tokenized Treasury products. The arrangement supports liquidity, yield and collateral capabilities through BitGo's platform.

The company also completed several capital allocation activities during the reporting period. WisdomTree retired $18.1 million in principal value of convertible notes due 2029 for $32.3 million. It additionally repurchased approximately 500,000 common shares for $10.6 million at an average price of $21.29. The board declared a quarterly dividend of $0.03 per share, payable November 25, 2026, to eligible shareholders. Convertible notes can convert into equity over time, so retiring principal trims the balance that could otherwise dilute shareholders, while buybacks and dividends are the standard channels for returning cash to shareholders.

New Fund Launches Across U.S. and European Markets

These developments were accompanied by new product launches across U.S. and European markets. In the United States, the company introduced two funds, WSLS and WTAL, through the Texas Stock Exchange. Meanwhile, European launches expanded WisdomTree's commodity, silver and structured investment offerings.

Taken together, WisdomTree's third-quarter results reflected stronger earnings, record assets under management and continued expansion across both traditional and digital investment markets. In the next reporting cycle, the reported metrics to watch include net inflows against the $13.6 billion year-to-date baseline, the stability of the 0.36% average advisory fee, and usage of the new tokenization partnerships across MoonPay, WisdomTree Onchain and BitGo.

Source: Blockonomi — WisdomTree (WT) Stock: Q3 Earnings Rise as Net Inflows Exceed $13.6 Billion