WisdomTree beats Q4 estimates with record $144.5B AUM
ETF provider reports 33.4% revenue growth and margin expansion as digital asset strategy gains traction
WisdomTree posted stronger-than-expected fourth-quarter results on Friday, with the New York-based ETF provider delivering record assets under management and expanding margins despite a modest post-earnings stock pullback.
The company reported adjusted earnings per share of $0.29, surpassing analyst consensus estimates by more than 20%, while revenue jumped 33.4% year-over-year to $147.4 million. Both figures exceeded Wall Street expectations, according to earnings data released January 30.
Most notably, WisdomTree's assets under management reached a record $144.5 billion, representing a 5.3% increase from the prior quarter and 31.6% growth compared to the same period last year. The company attracted $8.5 billion in net inflows during the quarter, contributing to approximately 8% organic growth across its platform.
Operating margins expanded by 320 basis points year-over-year to 41.7%, reflecting leverage on the company's growing asset base and continued focus on operational efficiency. The strong performance was driven by momentum in model portfolios and separately managed accounts, where assets under administration surpassed $6 billion.
"With disciplined execution and improving guidance, we enter 2026 with conviction in the durability of our strategy and its long-term compounding potential," WisdomTree's CEO stated in the earnings release.
Despite the positive results, WisdomTree shares slipped 0.85% in Friday trading following the announcement. The pullback comes after the stock rallied nearly 40% in January alone, with shares climbing from $12.51 at the start of the month to $16.96 just before earnings, according to historical trading data. The stock remains well above its 52-week low of $7.47, though trading below its recent high of $17.05.
The fourth-quarter performance highlights WisdomTree's successful diversification beyond traditional ETFs. The company has made significant strides in digital assets, with assets in that business line growing from $30 million to $770 million by year-end 2025. In January 2026, WisdomTree expanded its tokenization ecosystem to the Solana blockchain, positioning itself to offer tokenized real-world assets across multiple blockchain networks.
The digital asset strategy represents a key pillar of WisdomTree's growth plan. The company operates WisdomTree Prime, a direct-to-retail application that integrates traditional finance with blockchain technology, and has secured a trust company charter enabling broader involvement in virtual currency businesses. Tokenized assets under management reached approximately $143 billion by December 2025, marking a 30% increase for the year.
Analysts remain cautiously optimistic on WisdomTree's outlook. The average price target stands at $16.29, with four analysts rating the stock a buy and two recommending hold, according to MarketBeat data. Analysts project annual earnings growth of 24% and revenue growth of 15.9% going forward.
WisdomTree's expansion into private markets through the acquisition of Ceres Partners' U.S. farmland platform has also contributed to its diversification efforts. The company now offers a comprehensive suite of investment products including exchange-traded products, model portfolios, private market investments, and digital asset solutions.
The company's forward price-to-earnings ratio of 18.66 suggests the market is pricing in continued growth, though the stock's recent rally may limit near-term upside. WisdomTree's ability to maintain momentum across its traditional ETF business while scaling its digital asset and tokenization initiatives will be key factors for investors in 2026.