WisdomTree (WT) Q3 2024 earnings summary

Executive summary

• Achieved record assets under management (AUM) of $113 billion as of September 30, 2024, up 2.6% from the prior quarter, driven by market appreciation despite $2.4 billion in net outflows.

• Adjusted revenues reached $113.2 million in Q3 2024, up 25.2% year-over-year, with significant margin expansion and robust adjusted earnings growth.

• Net loss for Q3 2024 was $4.5 million, primarily due to a $30.6 million loss on extinguishment of convertible notes and a $4.0 million SEC penalty; adjusted net income was $28.8 million.

• Strategic capital management actions included $345 million convertible notes issuance, repurchase of all Series A Preferred Stock, and 5.7 million common shares, reducing dilution and supporting EPS growth.

• Continued investment in digital asset platforms and tokenization, with new product launches and expanded advisor reach.

Financial highlights

• Operating revenues for Q3 2024 were $113.2 million, up 5.7% sequentially and 25.2% year-over-year, driven by higher average AUM and other revenues.

• Adjusted operating margin expanded to 37.3%, up over 800 basis points year-over-year.

• Adjusted net income was $28.8 million, or $0.18 per share, with EPS up 80% year-over-year.

• Gross margin for Q3 2024 was 80.8%.

• Cash and equivalents at quarter-end were $176.5 million.

Outlook and guidance

• Full-year discretionary spending guidance narrowed to $62–$65 million, reflecting seasonality and marketing spend for digital platforms.

• Annual adjusted interest expense guidance raised to $16–$18.9 million due to incremental debt for share repurchases.

• Interest income guidance increased to $6 million for the year.

• Weighted average diluted shares expected to be 147–148 million in Q4, reflecting the impact of share repurchases.

• Compensation, gross margin, and tax guidance unchanged; gross margin guidance at 80–81%.