WisdomTree Hits Record $160.8B AUM, Driven by European Surge and Digital Asset Growth
NEW YORK – WisdomTree Investments (NYSE: WT) closed its fiscal 2025 on a high note, reporting record assets under management and expanding profitability, as the asset manager's strategic bets on Europe, digital assets, and private markets gain significant momentum. During its fourth-quarter earnings call, executives outlined a robust growth trajectory, updating 2026 guidance to reflect stronger-than-expected operational efficiency.
The firm ended 2025 with a record $144.5 billion in AUM, a 5% quarterly and over 30% annual increase. For the full year, it attracted $8.5 billion in net inflows, translating to an 8% organic growth rate. CFO Bryan Edmiston revealed that momentum has accelerated into the new year, with global AUM climbing to $160.8 billion as of the call date, supported by favorable markets and nearly $2 billion in net inflows.
European Engine Fires
The standout performer was WisdomTree's European business, where AUM soared from $30.7 billion to $53.3 billion. This surge was powered by more than $6 billion in net inflows, led by its UCITS franchise which alone gathered $4.3 billion. The successful launch of products like the European Defence ETF underscored the region's strategic importance.
Digital & Private Market Footprint Expands
The digital assets platform, a key focus area, ended the year at approximately $770 million in AUM, growing from "essentially zero" a year prior. Meanwhile, the October acquisition of private assets manager Ceres Partners has already diversified the AUM mix, adding nearly $2 billion in farmland strategies and boosting operating margins by over 200 basis points.
Financially, adjusted revenues for Q4 hit $147.4 million, up 33% year-over-year. The full-year adjusted operating margin expanded to 36.5%. For 2026, management guided to a lower compensation-to-revenue ratio of 26%-28%, signaling confidence in continued operational leverage.
CEO Jarrett Lilien framed the results as the payoff of a multi-year strategy, highlighting an 83% growth in metals strategies AUM and the launch of over 30 new strategies in areas like rare earths and quantum computing. "We are building a uniquely diversified growth engine," Lilien stated, pointing to convergence across global ETFs, tokenization, and private assets.
Analyst & Investor Commentary
"The European growth story is undeniable and provides a durable revenue stream that many U.S.-centric managers lack. Their foray into private assets via Ceres is a savvy, low-correlation diversifier." – Eleanor Vance, Senior Analyst at Merritt Capital
"While the headline AUM is impressive, I'm watching the digital assets platform closely. $770M is a start, but it needs to scale faster to justify the build-out costs and become a true pillar of growth." – David Chen, Portfolio Manager at Horizon Advisors
"Another quarter of 'strategic positioning' while the stock languishes. The market isn't buying the 'underappreciated' narrative, Jon. Tokenized funds at $770M and 'platform sales'? That's a rounding error. Show me real, profitable scale, not buzzwords." – Marcus Thorne, Independent Financial Blogger at 'The Skeptical Investor'
"The margin expansion is the real story here. Dropping the comp ratio guidance shows disciplined execution. They're growing the top line while carefully managing the levers of profitability—a classic sign of a maturing, well-run asset manager." – Rebecca Shaw, Managing Director at Flintlock Consulting
The earnings call concluded with founder Jonathan Steinberg reiterating his view that the company's diversified growth model remains undervalued by the broader market.