WT filing — read by section

Item 7. Management’s Discussion and Analysis

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 
 
 The following discussion and analysis of
our financial condition and results of operations should be read together with our consolidated financial statements and the related notes
and the other financial information included elsewhere in this Report. In addition to historical consolidated financial information, the
following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ
materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include
those discussed below. For a more complete description of the risks noted above and other risks that could cause our actual results to
materially differ from our current expectations, please see Item 1A. “Risk Factors” of this Report. We assume no obligation
to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, unless
required by law. 
 Introduction 
 We are a global financial innovator, offering a diverse suite of ETPs,
models and solutions, private market investments and digital asset-related products. Our offerings empower investors to shape their financial
future and equip financial professionals to grow their businesses. Leveraging the latest financial infrastructure, we create products
that emphasize access and transparency and provide an enhanced user experience.
 Building on our heritage of innovation, we continue to broaden our capabilities
beyond our core ETP business. We offer next-generation digital products and services related to tokenized real world assets and stablecoins,
including Digital Funds, as well as our institutional platform, WisdomTree Connect, and blockchain-native digital wallet, WisdomTree Prime.
We also have expanded into private assets through our acquisition of Ceres, a leading U.S.-based alternative asset manager specializing
in farmland investments.
 As of December 31, 2025, we managed approximately
$144.5 billion in AUM. Our products span a broad range of strategies including equities, fixed income, commodities, leveraged-and-inverse,
currency, alternatives and cryptocurrency exposures. We have launched many first-to-market products and pioneered a unique alternative-weighting
approach called “Modern Alpha” that combines the outperformance potential of active management with the cost effective benefits
of passive management.
 Our products are distributed across all major
asset management industry channels, including banks, brokerage firms, registered investment advisers, institutional investors, private
wealth managers and online brokers, primarily through our dedicated sales team. We believe technology is transforming how financial advisors
conduct business, and through our Advisor and Portfolio Solutions programs we offer technology-enabled and research-driven solutions.
These include portfolio construction, asset allocation, practice management services and digital tools to help advisors address technology
challenges and scale their businesses.
 As pioneers in tokenization and blockchain technology, we view this as
the next phase in the evolution in financial services. Through our digital assets strategy, we are committed to “responsible DeFi,”
aligning with regulatory standards to foster growth in this rapidly evolving space. We believe that expanding into digital assets and
blockchain-enabled financial services not only complements our core competencies, but will diversify our revenue streams and further contribute
to our growth.
 Executive Summary 
 Our business delivered strong progress in 2025 as we advanced our long-term
strategic initiatives and further strengthened the foundation for durable growth. We ended the year with AUM of $144.5 billion at December
31, 2025, up 31.6% as compared to the prior year, driven by favorable market conditions and net inflows of $8.5 billion, representing
annualized organic growth of approximately 8%. Revenues and operating income increased 15.4% and 26.9%, respectively, year over year,
driving approximately 300 basis points of operating margin expansion, supported by higher average AUM, improved revenue capture and continued
operating discipline. These results underscore the resilience of our business model and the benefits of our strategy to diversify revenue
streams and enhance earnings quality.
 A significant strategic milestone in 2025 was the Ceres Acquisition, which
marked our entry into private assets and added exposure to U.S. farmland, which we believe to be one of the largest and most underpenetrated
real asset classes. At December 31, 2025, we managed $1.9 billion in farmland-based strategies, an asset class with low correlation to
traditional financial markets that enhances the diversification of our overall platform. This acquisition also increased our revenue capture
and resulted in operating margin expansion of more than 200 basis points.
 Our Portfolio Solutions business continued to gain traction. Assets under
advisement in our models offering reached $6.1 billion, an increase of approximately 60% from the prior year, supported by deeper engagement
across major wealth platforms and registered investment advisers. The program provides advisors with customized evaluations, a suite of
model portfolios and Shared CIO services designed to support scalable, repeatable investment processes. In addition, our strategic minority
investment in, and multi-year collaboration with, Quorus enables certain of our investment strategies to be implemented in SMAs via the
Quorus platform, and our model portfolios to be made available there, with integrated trading and rebalancing, providing advisors with
additional customization options and implementation flexibility, and expanding our reach within the wealth management ecosystem. Together,
these initiatives contribute to more consistent and higher-quality revenue streams.
 
 44 
 

 Table of Contents 
 

 We also achieved notable growth in digital assets. Digital assets AUM increased
to $0.8 billion as of December 31, 2025, driven primarily by the expansion of our tokenized money market offering, the WisdomTree Treasury
Money Market Digital Fund. Early adoption of this product highlights the broader potential for tokenization across real world assets,
including future applications in fixed income and equities. Institutional clients access our Digital Funds through WisdomTree Connect,
while WisdomTree Prime provides direct-to-consumer access to digital assets, such as bitcoin, ether, tokenized gold, U.S. dollar tokens
and 15 Digital Funds. Our continued focus on “responsible DeFi” ensures these offerings remain aligned with regulatory standards
while positioning us at the forefront of blockchain-enabled financial innovation.
 Our initiatives across ETPs, private assets,
digital assets, models and SMAs are integral to our long-term growth strategy and are intended to drive sustained AUM growth, revenue
diversification, improved revenue capture and stronger operating margins. We believe this strategic alignment positions us to continue
delivering stockholder value and driving future performance.
 Additional 2025 business highlights include the following:
 
 · We launched 25 new European listed ETPs and 12 new U.S. listed ETFs spanning
all our major product categories. This includes the launch of the WisdomTree Europe Defence UCITS ETF which accumulated $3.9 billion of
AUM by December 31, 2025.
 
 
 
 · We achieved strong product performance, with over 74% of our U.S. listed
AUM covered by Morningstar in the top two quartiles of peer performance on the 15-year timeframe and over 68% of our U.S. listed AUM covered
by Morningstar in the top two quartiles of peer performance on the 5-year timeframe. In addition, approximately 40% were rated 4- or 5-star
by Morningstar.
 
 
 
 · We completed a private offering of $475.0 million in aggregate principal
amount of convertible senior notes due 2030, bearing interest at a rate of 4.625% and issued with a conversion price of $19.15 per share
to facilitate the Ceres Acquisition. Concurrent with the issuance, we repurchased approximately 6.8 million shares of our common stock
and extinguished $24.0 million aggregate principal amount of our 5.75% convertible senior notes due 2028 (the “2028 Notes”)
(conversion price of $9.54 per share). We subsequently extinguished the remaining $1.8 million principal amount of these 2028 Notes in
November 2025.
 
 
 
 · We appointed The Bank of New York Mellon Corporation to serve as our core banking-as-a-service (BaaS) infrastructure provider for
WisdomTree Prime. 
 
 
 
 · We made a strategic minority investment in, and entered into a multi-year collaboration with, Quorus, enabling certain
of our investment strategies to be implemented in customizable, tax-efficient SMA formats, and our model portfolios to be made available
with integrated, tax-aware trading and rebalancing capabilities, strengthening our presence in the growing custom portfolio solutions
market.
 
 
 
 
 · We expanded our global footprint through a strategic collaboration with
Korea Investment Management Co. Ltd. (KIM) based on the licensing of WisdomTree indexes in connection with the launch of a suite of innovative
ETFs by KIM marketed under the KIM ACE label for the Korean market.
 
 
 
 · We made a $2.5 million strategic minority investment in AlphaBeta ETF Ltd
to accelerate AI-driven ETF innovation by collaborating on the launch of AI-driven strategies in an ETF format.
 
 
 
 · In the U.S., we were named a “2025 Best Places to Work in Money Management”
by Pensions & Investments for the sixth consecutive year and ranked first within the category for managers with 100-499 employees.
In the U.K., we were named “Best Workplace” for medium-sized companies for the sixth consecutive year and a “2025 Best
Workplace for Women” by Great Place to Work .
 
 
 
 · We received numerous industry awards and recognitions, including being
named #58 on Fortune ’s list of America’s Most Innovative Companies, receiving multiple honors at the 2025 ETF Express
European ETF Awards, and earning top distinctions for our digital asset and fintech solutions from leading industry organizations.
 
 
 
 45 
 

 Table of Contents 
 

 Market Environment 
 The following chart reflects the annual returns
of the broad-based equity indexes and gold prices over the last three years.
 
 Source: FactSet
 U.S. Listed ETF Industry Flows 
 U.S. listed ETF net flows for the year ended
December 31, 2025 were $1,419.5 billion. U.S. equity and fixed income gathered the majority of those flows.
 
 Source: Morningstar
 
 46 
 

 Table of Contents 
 

 European Listed ETP Industry Flows 
 European listed ETP net flows were $246.6 billion
for the year ended December 31, 2025. Equities and fixed income gathered the majority of those flows. 
 
 Source: Morningstar
 Industry Developments 
 Asset Management – Consolidation 
 In the recent past, a number of acquisitions in the asset management industry
have either been announced or completed. These trends have accelerated as fee compression, cost pressures and increased regulations have
weighed on the industry, highlighting the importance of scale and operating efficiency to compete in today’s market. We have significant
opportunities ahead in both ETPs and the Portfolio Solutions business and as an early mover in digital assets and blockchain-enabled financial
services, which positions us well for success to grow in this competitive landscape.
 Components of Operating Revenue 
 Advisory fees 
 A significant portion of our revenues is comprised
of advisory fees we earn from our ETPs. These advisory fees are calculated based on a percentage of the ETPs’ average daily net
assets. As of the date of this Report, our weighted average fee rates by product category are as follows:
 
 
 Commodity & Currency: 
 34bps 
 Leveraged & Inverse: 
 81bps 

 
 International Developed Market Equity: 
 47bps 
 Fixed Income: 
 17bps 

 
 U.S. Equity: 
 29bps 
 Alternatives: 
 39bps 

 
 Emerging Market Equity: 
 60bps 
 Cryptocurrency: 
 28bps 

 
 We determine the appropriate advisory fee to
charge for our ETPs based on the cost of operating each ETP considering the types of securities the ETPs will hold, fees third-party service
providers will charge us for operating the ETPs and our competitors’ fees for similar ETPs. From time to time, we implement voluntary
waivers of a portion of our advisory fee. In addition, we earn a fee based on daily aggregate AUM of our ETPs in exchange for bearing
certain fund expenses.
 Our advisory fee revenues may fluctuate based
on general stock market trends, which include market value appreciation or depreciation, currency fluctuations against the U.S. dollar,
increased competition and level of inflows or outflows from our ETPs.
 Management fees 
 Management fees are earned in exchange for Ceres providing investment advisory and other management services to Ceres
Farms. Management fees are generally 1% of each member’s capital account balance as of the last day of each calendar quarter, if
that balance exceeds $1 million (otherwise 2%). Management fees are subject to adjustment for any contractual waivers as well as contributions
and redemptions arising in any particular quarter.
 Performance fees 
 Performance fees represent variable consideration
and are earned based on a specified percentage of Ceres Farms’ net profits, generally equal to 20%, subject to contractual fee waivers,
high-water marks and loss recovery requirements. Performance fees are earned only after members have recovered prior losses and applicable
thresholds have been met. Performance fee revenues are recognized when it is probable that a significant reversal of cumulative revenues
recognized will not occur, which generally occurs upon the determination of fund profits that are no longer subject to clawback or reversal
under the governing agreements.
 
 47 
 

 Table of Contents 
 

 Other revenues 
 Other revenues include rebates from swap providers
to our European listed ETPs, creation/redemption fees earned on our European non-UCITS products and fees from licensing our indexes and
index data to third parties.
 Components of Operating Expenses 
 Our operating expenses consist primarily of
costs related to selling, operating and marketing our ETPs as well as the infrastructure needed to run our business.
 Compensation and benefits 
 Employee compensation and benefits expenses
are expensed when incurred and include salaries, incentive compensation, and related benefit costs. To attract and retain qualified personnel,
we must maintain competitive employee compensation and benefit plans and amounts we pay may be affected by inflation. Virtually all of
our employees receive incentive compensation which is variable and will fluctuate taking into consideration our operating and financial
results, as well as individual performance and discretion.
 Also included in compensation and benefits are
costs related to equity awards granted to our employees. Our executive management and Board of Directors strongly believe that equity
awards are an important part of our employees’ overall compensation package and that incentivizing our employees with equity in
the Company aligns the interests of our employees with that of our stockholders. We use the fair value method in recording compensation
expense for equity-based awards. Under the fair value method, compensation expense is measured at the grant date based on the estimated
fair value of the award and is recognized as an expense over the vesting period.
 Fund management and administration 
 Fund management and administration expenses
are expensed when incurred and are comprised of the following costs we pay third-party service providers to operate our ETPs and Digital
Funds:
 
 · portfolio management of our ETPs (sub-advisory); 
 
 
 · fund accounting and administration; 
 
 
 · custodial and storage services; 
 
 
 · market making; 
 
 
 · transfer agency; 
 
 
 · accounting and tax services; 
 
 
 · printing and mailing of shareholder materials; 
 
 
 · index calculation; 
 
 
 · indicative values; 
 
 
 · distribution fees; 
 
 
 · legal and compliance services; 
 
 
 · exchange listing fees; 
 
 
 · trustee fees and expenses; 
 
 
 · preparation of regulatory reports and filings; 
 
 
 · insurance; 
 
 
 · certain local income taxes; and 
 
 
 · other administrative services. 
 
 We are not responsible for extraordinary expenses,
taxes and certain other expenses related to the funds.
 We depend on a number of parties to provide
critical administrative, custody and portfolio management services to our ETPs. The fees we pay our sub-advisers generally are the higher
of the fixed minimums per fund, which range from $0 to $158 per year, or the percentage fee, which ranges between 0.01% and 0.20% per
annum of average daily AUM at various breakpoint levels depending on the nature of the ETP. In addition, we pay certain costs based on
transactions in our ETPs or based on inflow levels.
 The fees we pay for accounting, tax, transfer
agency, index calculation, indicative values and exchange listing are based on the number of products we have. The remaining fees are
based on a combination of both AUM and number of funds, or as incurred.
 
 48 
 

 Table of Contents 
 

 Marketing and advertising 
 Marketing and advertising expenses are recorded
when incurred and include the following:
 
 · advertising and product promotion campaigns that are initiated to promote our existing and new ETPs as well as brand awareness; 
 
 
 · marketing campaigns to attract WisdomTree Connect and WisdomTree Prime users; 
 
 
 · development and maintenance of our website; and 
 
 
 · creation and preparation of marketing materials. 
 
 Our discretionary advertising comprises the
largest portion of this expense. In addition, we may incur expenditures in certain periods to attract inflows, the benefit of which may
or may not be recognized from increases to our AUM in future periods. However, due to the discretionary nature of some of these costs,
they can generally be reduced if there were a decline in the markets.
 Sales and business development 
 Sales and business development expenses are
recorded when incurred and include the following:
 
 · travel and entertainment or conference related expenses for our sales force; 
 
 
 · market data services for our research team; 
 
 
 · sales related software tools; 
 
 
 · voluntary payment of certain costs associated with the creation or redemption of ETP shares, as we may elect from time to time; and 
 
 
 · legal and other advisory fees associated with the development of new funds or business initiatives. 
 
 
 Contractual gold payments 
 Contractual gold payments expense represented an obligation requiring us
to pay 9,500 ounces of gold annually from the advisory fee income we earned for managing physically-backed gold ETPs. Our obligation to
continue making these payments was terminated on May 10, 2023. See Note 9 to our Consolidated Financial Statements for additional information.
 Professional fees 
 Professional fees are expensed when incurred
and consist of fees we pay to corporate advisers including accountants, tax advisers, legal counsel, investment bankers, human resources
or other consultants. Professional fees also include expenses we pay third-party service providers related to WisdomTree Prime and expenses
incurred in response to an activist campaign. These expenses fluctuate based on our needs or requirements at the time. Certain of these
costs are at our discretion and can fluctuate year to year.
 Occupancy, communications and equipment 
 Occupancy, communications and equipment expense
includes costs for our corporate headquarters in New York City as well as office related costs in our other locations.
 Depreciation and amortization 
 Depreciation and amortization expense results
from amortization of internally-developed software as well as depreciation on fixed assets, which are depreciated/amortized over three
to five years.
 Third-party distribution fees 
 Third-party distribution fees, which are expensed
as incurred, include payments made to enable our products and models to be included on certain third-party platforms in exchange for commission-free
trading or other preferential access. These expenses also include payments to our third-party marketing agents in Latin America and Israel.
 Acquisition-related costs 
 We account for business combinations in accordance
with ASC Topic 805, Business Combinations (“ASC 805”), with acquisitions recorded using the acquisition method. Transaction
costs associated with acquisitions are expensed as incurred.
 Other 
 Other expenses consist primarily of insurance premiums, general office
related expenses, securities license fees for our sales force, public company related expenses, corporate related travel and entertainment
and Board of Director fees, including stock-based compensation related to equity awards granted to our directors.
 Components of Other Income/(Expenses) of a Recurring Nature 
 Interest expense 
 We recognize interest expense using the effective
interest method which includes the amortization of discounts, premiums and issuance costs.
 
 49 
 

 Table of Contents 
 

 Revaluation/termination of deferred consideration–gold
payments 
 Deferred consideration arose in connection with our acquisition of the
European exchange-traded commodity, currency and leveraged-and-inverse business of ETFS Capital Limited, and was remeasured each reporting
period using forward-looking gold prices observed on the CMX exchange, a selected discount rate and perpetual growth rate. This obligation
was terminated on May 10, 2023 for approximately $137.0 million. See Note 9 to our Consolidated Financial Statements for additional information.
 Interest income 
 Interest income, which is recognized on an accrual
basis, arises from investing our corporate cash into interest-bearing financial instruments.
 Other gains/(losses), net 
 Included herein are gains and losses arising
from our financial instruments owned and investments, the sale of gold earned from advisory fees paid by physically-backed gold ETPs,
foreign exchange and other miscellaneous items. Also included are losses arising from the release of tax-related indemnification assets
upon the expiration of the statute of limitations, for which an equal and offsetting benefit is recognized in income tax expense.
 Income Taxes 
 Our income tax expense consists of taxes due
to federal, various state and local and certain foreign authorities.
 Expense Guidance for the Year Ending December 31, 2026 
 Compensation to Revenue Ratio 
 Our compensation to revenue ratio for the year
ending December 31, 2026 is currently estimated to range from 26% to 28% and takes into consideration planned hires as well as year-end
compensation adjustments and the annualization of hires made during 2025. The range also considers variability in incentive compensation
with drivers including the magnitude of our flows, revenue and operating income growth, margin expansion and our stock price performance
in relation to our peers.
 Discretionary Spending 
 Discretionary spending includes marketing, sales, professional fees, occupancy
and equipment, depreciation and amortization and other expenses. We currently estimate our discretionary spending for the year ending
December 31, 2026 to range from $80.0 million to $86.0 million.
 Not included in the guidance above is intangible
asset amortization arising from the Ceres Acquisition of approximately $5.7 million.
 Gross Margin 
 We define gross margin as total operating revenues
less fund management and administration expenses. Gross margin percentage is calculated as gross margin divided by total operating revenues.
For the year ending December 31, 2026, we currently estimate that our gross margin percentage will be 82.0% to 83.0% taking into consideration
current AUM, revenue levels and anticipated fund launches. If AUM increases, we would anticipate further gross margin expansion.
 Third-Party Distribution Expense 
 We currently estimate third-party distribution
expense to be approximately $17.0 million to $19.0 million for the year ending December 31, 2026, which is dependent upon the AUM growth
on our respective platforms.
 Interest Expense 
 We currently estimate our interest expense for the year ending December
31, 2026 to be approximately $40.0 million, taking into consideration the retirement of our 3.25% Convertible Senior Notes due 2026 (the
“2026 Notes”).
 Not included in the guidance above is approximately
$0.9 million of interest cost we are required to impute under U.S. GAAP related to our interest-free financing of the shares of Series
C Non-Voting Convertible Preferred Stock (the “Series C Preferred Stock”) we repurchased from Gold Bullion Holdings (Jersey)
Limited (“GBH”), a subsidiary of the World Gold Council, in November 2023.
 Interest Income 
 We currently estimate our interest income for
the year ending December 31, 2026 to be approximately $8.0 million, based upon the magnitude of our forecasted interest earning assets
and interest rates. It is anticipated our interest earning assets will decline in the second half of the year following the retirement
of our 2026 Notes.
 
 50 
 

 Table of Contents 
 

 Income Tax Expense 
 We currently estimate that our consolidated normalized effective tax rate
will be approximately 24.0% for the year ending December 31, 2026, taking into consideration the current distribution of profits among
our U.S. and European businesses.
 This estimated rate may change and is dependent
upon our actual taxable income earned in relation to our forecasts as well as any other items which may arise that are not currently forecasted.
Such items may include, but are not limited to, increases or decreases in valuation allowances and any stock-based compensation windfalls
or shortfalls. Additional corporate tax legislation could also impact our normalized effective tax rate.
 Weighted Average Diluted Shares 
 We currently estimate our weighted average diluted shares to be between
152.0 million and 157.0 million during the year ending December 31, 2026. This guidance contemplates incremental shares associated with
our Convertible Notes assuming a stock price approximating recent levels. While our Convertible Notes require principal to be paid in
cash, our diluted shares would need to be increased for any incremental shares associated with an exercise of the conversion option if
our stock price exceeds the applicable conversion price of our Convertible Notes of $11.04 per share for the 2026 Notes, $11.82 per share
for the 3.25% Convertible Senior Notes due 2029 (the “2029 Notes”) and $19.15 per share for the 4.625% Convertible Senior
Notes due 2030 (the “2030 Notes”).
 Factors that May Impact our Future Financial Results 
 Our AUM is well diversified across products covering equity, commodities,
fixed income, leveraged-and-inverse, cryptocurrency, currency, alternatives and private assets. As a result, our operating results are
particularly exposed to investor sentiment toward investing in these products’ strategies and our ability to maintain AUM of these
products, as well as the performance of these products.
 Our revenues are also highly correlated to the level and relative mix of
our AUM, as well as the fee rate associated with our products. Changes in product mix have led to a decline in our average advisory fee,
which for the years ended December 31, 2023, 2024 and 2025 were 0.36%, 0.36% and 0.35%, respectively.
 The chart below sets forth the asset mix of
our products at December 31, 2023, 2024 and 2025:
 
 51 
 

 Table of Contents 
 

 Key Operating Statistics 
 The following table presents key operating statistics
that serve as indicators for the performance of our business:
 
 
 
 
 Year Ended December 31, 

 
 
 2025 
 2024 
 2023 

 
 GLOBAL PRODUCTS ($ in millions ) 
 
 
 

 
 Beginning of period assets 
 $ 109,779 
 $ 100,124 
 $ 81,993 

 
 Add: Digital assets—Jan. 1, 2025 
 32 
 — 
 — 

 
 Add: Assets acquired—Ceres Acquisition 
 1,812 
 — 
 — 

 
 Inflows/(outflows) 
 8,538 
 (348 ) 
 10,397 

 
 Market appreciation 
 24,363 
 10,003 
 7,734 

 
 End of period assets 
 $ 144,524 
 $ 109,779 
 $ 100,124 

 
 Average assets during the period 
 $ 126,313 
 $ 108,415 
 $ 92,868 

 
 Average ETP advisory fee during the period 
 0.35 % 
 0.36 % 
 0.36 % 

 
 Total revenue yield 
 0.39 % 
 0.39 % 
 0.38 % 

 
 Number of products-end of period 
 406 
 353 
 337 

 
 ETPs AND TOKENIZED PRODUCTS 
 
 
 

 
 U.S. LISTED ETFs ($ in millions ) 
 
 
 

 
 Beginning of period assets 
 $ 79,095 
 $ 72,486 
 $ 55,973 

 
 Inflows 
 1,404 
 1,399 
 10,795 

 
 Market appreciation 
 8,022 
 5,210 
 5,718 

 
 End of period assets 
 $ 88,521 
 $ 79,095 
 $ 72,486 

 
 Average assets during the period 
 $ 84,483 
 $ 78,588 
 $ 64,988 

 
 Number of ETFs—end of the period 
 86 
 78 
 76 

 
 EUROPEAN LISTED ETPs ($ in millions ) 
 
 
 

 
 Beginning of period assets 
 $ 30,684 
 $ 27,638 
 $ 26,020 

 
 Inflows/(outflows) 
 6,361 
 (1,747 ) 
 (398 ) 

 
 Market appreciation 
 16,300 
 4,793 
 2,016 

 
 End of period assets 
 $ 53,345 
 $ 30,684 
 $ 27,638 

 
 Average assets during the period 
 $ 40,952 
 $ 29,827 
 $ 27,880 

 
 Number of ETPs—end of the period 
 300 
 275 
 261 

 
 DIGITAL ASSETS ($ in millions ) 
 
 
 

 
 Beginning of period assets 
 $ — 
 $ — 
 $ — 

 
 Add: Digital Assets—Jan. 1, 2025 
 32 
 — 
 — 

 
 Inflows 
 736 
 — 
 — 

 
 Market appreciation 
 1 
 — 
 — 

 
 End of period assets 
 $ 769 
 $ — 
 $ — 

 
 Average assets during the period 
 $ 424 
 $ — 
 $ — 

 
 Number of products—end of the period 
 19 (1) 
 — 
 — 

 
 PRIVATE ASSETS ($ in millions ) 
 
 
 

 
 Beginning of period assets 
 $ — 
 $ — 
 $ — 

 
 Add: Assets acquired—Ceres Acquisition 
 1,812 
 — 
 — 

 
 Inflows 
 37 
 — 
 — 

 
 Market appreciation 
 40 
 — 
 — 

 
 End of period assets 
 $ 1,889 
 $ — 
 $ — 

 
 Average assets during the period 
 $ 1,815 
 $ — 
 $ — 

 
 Number of products—end of the period 
 1 
 — 
 — 

 
 ETPs AND TOKENIZED PRODUCT CATEGORIES ($ in millions ) 
 
 
 

 
 U.S. Equity 
 
 
 

 
 Beginning of period assets 
 $ 35,414 
 $ 29,156 
 $ 24,112 

 
 Add: Digital Assets—Jan. 1, 2025 
 9 
 — 
 — 

 
 Inflows 
 2,469 
 2,185 
 1,616 

 
 Market appreciation 
 3,536 
 4,073 
 3,428 

 
 End of period assets 
 $ 41,428 
 $ 35,414 
 $ 29,156 

 
 Average assets during the period 
 $ 38,386 
 $ 32,594 
 $ 25,722 

 
 
 
 52 
 

 Table of Contents 
 

 
 
 
 
 Year Ended December 31, 

 
 
 2025 
 2024 
 2023 

 
 Commodity & Currency 
 
 
 

 
 Beginning of period assets 
 $ 21,906 
 $ 21,336 
 $ 22,097 

 
 Add: Digital Assets—Jan. 1, 2025 
 $ 1 
 $ — 
 $ — 

 
 Inflows/(outflows) 
 1,004 
 (3,141 ) 
 (1,774 ) 

 
 Market appreciation 
 14,069 
 3,711 
 1,013 

 
 End of period assets 
 $ 36,980 
 $ 21,906 
 $ 21,336 

 
 Average assets during the period 
 $ 27,967 
 $ 22,070 
 $ 22,843 

 
 International Developed Market Equity 
 
 
 

 
 Beginning of period assets 
 $ 17,602 
 $ 15,103 
 $ 10,195 

 
 Inflows 
 3,746 
 1,522 
 2,852 

 
 Market appreciation 
 4,268 
 977 
 2,056 

 
 End of period assets 
 $ 25,616 
 $ 17,602 
 $ 15,103 

 
 Average assets during the period 
 $ 21,260 
 $ 17,963 
 $ 12,824 

 
 Fixed Income 
 
 
 

 
 Beginning of period assets 
 $ 20,043 
 $ 21,197 
 $ 15,273 

 
 Add: Digital Assets—Jan. 1, 2025 
 21 
 — 
 — 

 
 Inflows/(outflows) 
 828 
 (1,062 ) 
 5,939 

 
 Market appreciation/(depreciation) 
 182 
 (92 ) 
 (15 ) 

 
 End of period assets 
 $ 21,074 
 $ 20,043 
 $ 21,197 

 
 Average assets during the period 
 $ 22,135 
 $ 20,973 
 $ 19,804 

 
 Emerging Market Equity 
 
 
 

 
 Beginning of period assets 
 $ 10,468 
 $ 10,726 
 $ 8,116 

 
 (Outflows)/inflows 
 (1,175 ) 
 (654 ) 
 1,678 

 
 Market appreciation 
 1,350 
 396 
 932 

 
 End of period assets 
 $ 10,643 
 $ 10,468 
 $ 10,726 

 
 Average assets during the period 
 $ 10,520 
 $ 11,460 
 $ 9,287 

 
 Leveraged & Inverse 
 
 
 

 
 Beginning of period assets 
 $ 1,924 
 $ 1,815 
 $ 1,754 

 
 Inflows/(outflows) 
 190 
 (66 ) 
 (5 ) 

 
 Market appreciation 
 1,161 
 175 
 66 

 
 End of period assets 
 $ 3,275 
 $ 1,924 
 $ 1,815 

 
 Average assets during the period 
 $ 2,571 
 $ 1,923 
 $ 1,813 

 
 Cryptocurrency 
 
 
 

 
 Beginning of period assets 
 $ 1,912 
 $ 414 
 $ 136 

 
 Add: Digital Assets—Jan. 1, 2025 
 1 
 — 
 — 

 
 Inflows 
 756 
 749 
 50 

 
 Market (depreciation)/appreciation 
 (427 ) 
 749 
 228 

 
 End of period assets 
 $ 2,242 
 $ 1,912 
 $ 414 

 
 Average assets during the period 
 $ 2,166 
 $ 997 
 $ 247 

 
 Alternatives 
 
 
 

 
 Beginning of period assets 
 $ 510 
 $ 377 
 $ 310 

 
 Inflows 
 683 
 119 
 41 

 
 Market appreciation 
 184 
 14 
 26 

 
 End of period assets 
 $ 1,377 
 $ 510 
 $ 377 

 
 Average assets during the period 
 $ 854 
 $ 435 
 $ 328 

 
 
 
 
 

 
 Headcount 
 360 
 313 
 303 

 
 Note: Previously issued statistics may be restated
due to fund closures and trade adjustments
 Source: WisdomTree
 ____________________________
 (1) 
Includes 17 digital assets products, which were launched prior to January 1, 2025. 
 
 53 
 

 Table of Contents 
 

 Year Ended December 31, 2025 Compared to Year Ended December 31,
2024 
 Selected Operating and Financial Information 
 
 
 
 
 Year Ended
 December 31, 
 
 
 
 Percent 
 

 
 
 2025 
 
 2024 
 
 Change 
 Change 

 
 AUM (in millions) 
 
 
 
 

 
 Average AUM 
 $ 126,313
 
 $ 108,415 
 $ 17,898
 
 16.5 % 

 
 Operating Revenues (in thousands) 
 
 
 
 

 
 Advisory fees 
 $ 439,987 
 $ 395,362 
 $ 44,625 
 11.3 % 

 
 Management fees
 
 4,908 
 — 
 4,908 
 n/a 

 
 Performance fees 
 7,105 
 — 
 7,105 
 n/a 

 
 Other revenues 
 41,753 
 32,375 
 9,378 
 29.0 % 

 
 Total revenues 
 $ 493,753 
 $ 427,737 
 $ 66,016 
 15.4 % 

 
 Operating Revenues 
 Advisory fees 
 Advisory fee revenues increased 11.3% from $395.4
million during the year ended December 31, 2024 to $440.0 million during the year ended December 31, 2025 due to higher average AUM, partly
offset by a lower average advisory fee. Our average advisory fee was 0.36% during the year ended December 31, 2024 and 0.35% during the
year ended December 31, 2025.
 Management fees 
 Management fees were $4.9 million during the year ended December 31, 2025 as a result of the Ceres Acquisition, which
was completed in October 2025. We earn management fees in exchange for providing investment advisory and other management services to
Ceres Farms.
 Performance fees 
 Performance fees were $7.1 million during the year ended December 31, 2025
as a result of the Ceres Acquisition, which was completed in October 2025. We earn performance fees based on a specified percentage of
Ceres Farms’ net profits, subject to contractual fee waivers, high-water marks and loss recovery requirements.
 Other revenues 
 Other revenues increased 29.0% from $32.4 million
during the year ended December 31, 2024 to $41.8 million during the year ended December 31, 2025 due to higher other revenues attributable
to our European listed ETPs.
 Operating Expenses 
 
 
 
 
 Year Ended
 December 31, 

 
 
 
 Percent 

 
 (in thousands) 
 2025 
 2024 
 Change 
 
 Change 
 

 
 Compensation and benefits 
 $ 137,679 
 $ 121,281 
 $ 16,398 
 13.5 % 

 
 Fund management and administration 
 89,149 
 83,963 
 5,186 
 6.2 % 

 
 Marketing and advertising 
 20,544 
 20,532 
 12 
 0.1 % 

 
 Sales and business development 
 16,357 
 14,817 
 1,540 
 10.4 % 

 
 Professional fees 
 13,060 
 21,098 
 (8,038 ) 
 (38.1 %) 

 
 Occupancy, communications and equipment 
 6,534 
 5,344 
 1,190 
 22.3 % 

 
 Depreciation and amortization 
 3,778 
 1,752 
 2,026 
 115.6 % 

 
 Third-party distribution fees 
 15,944 
 11,138 
 4,806 
 43.1 % 

 
 Acquisition-related costs 
 4,693 
 — 
 4,693 
 n/a 

 
 Other 
 11,820 
 10,519 
 1,301 
 12.4 % 

 
 Total operating expenses 
 $ 319,558 
 $ 290,444 
 $ 29,114 
 10.0 % 

 
 
 54 
 

 Table of Contents 
 

 
 
 
 
 
 Year Ended
 December 31, 

 

 
 As a Percent of Revenues: 
 2025 
 
 2024 
 

 
 Compensation and benefits 
 27.8 % 
 28.4 % 

 
 Fund management and administration 
 18.1 % 
 19.6 % 

 
 Marketing and advertising 
 4.2 % 
 4.8 % 

 
 Sales and business development 
 3.3 % 
 3.5 % 

 
 Professional fees 
 2.6 % 
 4.9 % 

 
 Occupancy, communications and equipment 
 1.3 % 
 1.2 % 

 
 Depreciation and amortization 
 0.8 % 
 0.4 % 

 
 Third-party distribution fees 
 3.2 % 
 2.6 % 

 
 Acquisition-related costs 
 1.0 % 
 — 

 
 Other 
 2.4 % 
 2.5 % 

 
 Total operating expenses 
 64.7 % 
 67.9 % 

 
 Compensation and benefits 
 Compensation and benefits expense increased
13.5% from $121.3 million during the year ended December 31, 2024 to $137.7 million during the year ended December 31, 2025 due to higher
incentive compensation and increased headcount. Headcount was 313 and 360 at December 31, 2024 and 2025, respectively.
 Fund management and administration 
 Fund management and administration expense increased 6.2% from $84.0 million
during the year ended December 31, 2024 to $89.1 million during the year ended December 31, 2025 primarily due to higher average AUM.
We had 78 U.S. listed ETFs, 275 European listed ETPs and 17 tokenized products at December 31, 2024 compared to 86 U.S. listed ETFs, 300
European listed ETPs, 19 tokenized products and one private assets product at December 31, 2025.
 Marketing and advertising 
 Marketing and advertising expense was essentially
unchanged from the year ended December 31, 2024.
 Sales and business development 
 Sales and business development expense increased
10.4% from $14.8 million during the year ended December 31, 2024 to $16.4 million during the year ended December 31, 2025 primarily resulting
from increases in travel and events spending.
 Professional fees 
 Professional fees decreased 38.1% from $21.1 million
during the year ended December 31, 2024 to $13.1 million during the year ended December 31, 2025 as the prior year included $5.0 million
of expenses incurred in response to an activist campaign and $4.3 million of legal and other related expenses incurred in connection with
the SEC ESG Settlement that were covered by insurance.
 Occupancy, communications and equipment 
 Occupancy, communications and equipment expense
increased 22.3% from $5.3 million during the year ended December 31, 2024 to $6.5 million during the year ended December 31, 2025 due
to higher equipment and communication expenses driven by increased headcount.
 Depreciation and amortization 
 Depreciation and amortization expense increased
115.6% from $1.8 million during the year ended December 31, 2024 to $3.8 million during the year ended December 31, 2025 due to higher
amortization of software development costs, as well as approximately $1.4 million of intangible asset amortization arising from the Ceres
Acquisition.
 Third-party distribution fees 
 Third-party distribution fees increased 43.1%
from $11.1 million during the year ended December 31, 2024 to $15.9 million during the year ended December 31, 2025 due to our strong
growth and AUM expansion across our distribution platforms.
 Acquisition-related costs 
 During the year ended December 31, 2025, we
recorded $4.7 million of acquisition-related costs incurred in connection with the Ceres Acquisition.
 
 55 
 

 Table of Contents 
 

 Other 
 Other expenses increased 12.4% from $10.5 million
during the year ended December 31, 2024 to $11.8 million during the year ended December 31, 2025 primarily due to higher dues, subscriptions
and other miscellaneous expenses.
 Other Income/(Expenses) 
 
 
 
 Year Ended
 December 31, 
 
 
 
 Percent 
 

 
 (in thousands) 
 2025 
 
 2024 
 
 Change 
 Change 

 
 Interest expense 
 $ (30,420 ) 
 $ (18,911 ) 
 $ (11,509 ) 
 60.9% 

 
 Interest income 
 10,967 
 6,778 
 4,189 
 61.8% 

 
 Loss on extinguishment of convertible notes 
 (13,844 ) 
 (30,632 ) 
 16,788 
 (54.8% ) 

 
 Remeasurement of contingent consideration 
 (710 ) 
 — 
 (710 ) 
 n/a 

 
 Other gains, net 
 2,030 
 874 
 1,156 
 132.3% 

 
 Total other income/(expenses), net 
 $ (31,977 ) 
 $ (41,891 ) 
 $ 9,914 
 (23.7% ) 

 
 
 
 
 
 
 Year Ended December 31, 

 
 As a Percent of Revenues: 
 
 2025 
 
 2024 
 

 
 Interest expense 
 (6.2% ) 
 (4.4% ) 

 
 Interest income 
 2.2% 
 1.6% 

 
 Loss on extinguishment of convertible notes 
 (2.8% ) 
 (7.2% ) 

 
 Remeasurement of contingent consideration 
 (0.1% ) 
 — 

 
 Other gains, net 
 0.4% 
 0.2% 

 
 Total other income/(expenses), net 
 (6.5% ) 
 (9.8% ) 

 
 Interest expense 
 Interest expense increased 60.9% from $18.9
million during the year ended December 31, 2024 to $30.4 million during the year ended December 31, 2025 due to a higher level of debt
outstanding, inclusive of the 2030 Notes issued in August 2025 to facilitate the Ceres Acquisition, partly offset by a lower average interest
rate.
 Our effective interest rate on our outstanding
Convertible Notes during the years ended December 31, 2024 and 2025 was 4.5% and 4.1%, respectively.
 Interest income 
 Interest income increased 61.8% from $6.8 million
during the year ended December 31, 2024 to $11.0 million during the year ended December 31, 2025 due to a higher level of interest-earning
assets, including from temporarily investing proceeds received from the issuance of the 2030 Notes prior to completing the Ceres Acquisition.
 Remeasurement of contingent consideration 
 Contingent consideration related to the Ceres Acquisition increased from
$11.1 million on October 1, 2025 to $11.8 million at December 31, 2025 resulting in a $0.7 million loss on remeasurement recognized during
the year ended December 31, 2025. See Note 11 to our Consolidated Financial Statements for additional information.
 Other gains, net 
 Other gains, net were $0.9 million and $2.0
million during the years ended December 31, 2024 and 2025, respectively. The current year includes net gains on our financial instruments
owned of $1.9 million and $1.2 million of foreign currency remeasurement losses on U.S. dollars held by foreign subsidiaries. Gains and
losses also generally arise from the sale of gold earned from advisory fees paid by our physically-backed gold ETPs, foreign exchange
fluctuations and other miscellaneous items.
 Income Taxes 
 Our effective income tax rate for 2025 was 23.3%,
resulting in an income tax expense of $33.1 million. Our tax rate differs from the federal statutory rate of 21.0% primarily due to a
non-deductible loss on extinguishment of convertible notes and state and local income taxes. These items were partly offset by a reduction
in the valuation allowance on capital losses and a lower tax rate on foreign earnings.
 Our effective income tax rate for 2024 was 30.1%,
resulting in an income tax expense of $28.7 million. Our tax rate differs from the federal statutory rate of 21.0% primarily due to a
non-deductible loss on extinguishment of convertible notes, a non-deductible civil money penalty of $4.0 million in connection with the
SEC ESG Settlement and non-deductible executive compensation. These items were partly offset by a lower tax rate on foreign earnings.
 
 56 
 

 Table of Contents 
 

 Year Ended December 31, 2024 Compared to Year Ended December 31,
2023 
 Selected Operating and Financial Information 
 
 
 
 
 Year Ended
 December 31, 
 
 
 
 Percent 
 

 
 
 2024 
 
 2023 
 
 Change 
 Change 

 
 AUM (in millions) 
 
 
 
 

 
 Average AUM 
 $ 108,415 
 $ 92,867 
 $ 15,548 
 16.7% 

 
 
 
 
 
 

 
 Operating Revenues (in thousands) 
 
 
 
 

 
 Advisory fees 
 $ 395,362 
 $ 333,227 
 $ 62,135 
 18.6% 

 
 Other revenues 
 32,375 
 15,808 
 16,567 
 104.8% 

 
 Total revenues 
 $ 427,737 
 $ 349,035 
 $ 78,702 
 22.5% 

 
 
 Operating Revenues 
 Advisory fees 
 Advisory fee revenues increased 18.6% from $333.2
million during the year ended December 31, 2023 to $395.4 million during the year ended December 31, 2024 due to higher average AUM. Our
average advisory fee remained 0.36%, unchanged from the year ended December 31, 2023.
 Other revenues 
 Other revenues increased 104.8% from $15.8 million during the year ended
December 31, 2023 to $32.4 million during the year ended December 31, 2024 due to higher other revenues attributable to our European listed
ETPs and $4.3 million of other revenues related to legal and other related expenses incurred in connection with the SEC ESG Settlement
that were covered by insurance.
 Operating Expenses 
 
 
 
 
 Year Ended
 December 31, 

 
 
 
 Percent 

 
 (in thousands) 
 2024 
 2023 
 Change 
 
 Change 
 

 
 Compensation and benefits 
 $ 121,281 
 $ 109,532 
 $ 11,749 
 10.7 % 

 
 Fund management and administration 
 83,963 
 71,348 
 12,615 
 17.7 % 

 
 Marketing and advertising 
 20,532 
 17,256 
 3,276 
 19.0 % 

 
 Sales and business development 
 14,817 
 13,584 
 1,233 
 9.1 % 

 
 Contractual gold payments 
 — 
 6,069 
 (6,069 ) 
 n/a 

 
 Professional fees 
 21,098 
 18,969 
 2,129 
 11.2 % 

 
 Occupancy, communications and equipment 
 5,344 
 4,684 
 660 
 14.1 % 

 
 Depreciation and amortization 
 1,752 
 872 
 880 
 100.9 % 

 
 Third-party distribution fees 
 11,138 
 9,377 
 1,761 
 18.8 % 

 
 Other 
 10,519 
 9,852 
 667 
 6.8 % 

 
 Total operating expenses 
 $ 290,444 
 $ 261,543 
 $ 28,901 
 11.1 % 

 
 
 57 
 

 Table of Contents 
 

 
 
 
 
 
 Year Ended
 December 31, 

 

 
 As a Percent of Revenues: 
 2024 
 
 2023 
 

 
 Compensation and benefits 
 28.4% 
 31.6 % 

 
 Fund management and administration 
 19.6% 
 20.4 % 

 
 Marketing and advertising 
 4.8% 
 4.9 % 

 
 Sales and business development 
 3.5% 
 3.9 % 

 
 Contractual gold payments 
 — 
 1.7 % 

 
 Professional fees 
 4.9% 
 5.4 % 

 
 Occupancy, communications and equipment 
 1.2% 
 1.3 % 

 
 Depreciation and amortization 
 0.4% 
 0.2 % 

 
 Third-party distribution fees 
 2.6% 
 2.7 % 

 
 Other 
 2.5% 
 2.8 % 

 
 Total operating expenses 
 67.9% 
 74.9 % 

 
 Compensation and benefits 
 Compensation and benefits expense increased
10.7% from $109.5 million during the year ended December 31, 2023 to $121.3 million during the year ended December 31, 2024 due to higher
stock-based compensation, incentive compensation and headcount. Headcount was 303 and 313 at December 31, 2023 and 2024, respectively.
 Fund management and administration 
 Fund management and administration expense increased
17.7% from $71.3 million during the year ended December 31, 2023 to $84.0 million during the year ended December 31, 2024 primarily due
to higher average AUM. We had 76 U.S. listed ETFs and 261 European listed ETPs at December 31, 2023 compared to 78 U.S. listed ETFs and
275 European listed ETPs at December 31, 2024.
 Marketing and advertising 
 Marketing and advertising expense increased
19.0% from $17.3 million during the year ended December 31, 2023 to $20.5 million during the year ended December 31, 2024 primarily
resulting from higher spending related to our U.S. listed and digital products.
 Sales and business development 
 Sales and business development expense increased
9.1% from $13.6 million during the year ended December 31, 2023 to $14.8 million during the year ended December 31, 2024 primarily resulting
from increases in travel and events spending.
 Contractual gold payments 
 There was no contractual gold payments expense
recognized during the year ended December 31, 2024 due to the termination of our deferred consideration—gold payments obligation
on May 10, 2023. See Note 9 to our Consolidated Financial Statements for additional information.
 Professional fees 
 Professional fees increased 11.2% from $19.0 million during the year
ended December 31, 2023 to $21.1 million during the year ended December 31, 2024 due to $4.3 million of legal and other related expenses
incurred in connection with the SEC ESG Settlement that were covered by insurance, partly offset by lower expenses incurred in response
to an activist campaign.
 Occupancy, communications and equipment 
 Occupancy, communications and equipment expense
increased 14.1% from $4.7 million during the year ended December 31, 2023 to $5.3 million during the year ended December 31, 2024 due
to the increased cost of renewed office leases.
 Depreciation and amortization 
 Depreciation and amortization expense increased
100.9% from $0.9 million during the year ended December 31, 2023 to $1.8 million during the year ended December 31, 2024 due to higher
amortization of software development costs.
 Third-party distribution fees 
 Third-party distribution fees increased 18.8%
from $9.4 million during the year ended December 31, 2023 to $11.1 million during the year ended December 31, 2024 primarily due to growth
in AUM across our various platforms, as well as new platform relationships that expanded our distribution reach.
 
 58 
 

 Table of Contents 
 

 Other 
 Other expenses increased 6.8% from $9.9 million
during the year ended December 31, 2023 to $10.5 million during the year ended December 31, 2024 primarily due to higher insurance and
travel-related expenses.
 Other Income/(Expenses) 
 
 
 
 Year Ended
 December 31, 
 
 Percent 

 
 (in thousands) 
 2024 
 2023 
 Change 
 Change 

 
 Interest expense 
 $ (18,911 ) 
 $ (15,242 ) 
 $ (3,669 ) 
 24.1% 

 
 Gain on revaluation/termination of deferred consideration—gold payments 
 — 
 61,953 
 (61,953 ) 
 n/a 

 
 Interest income 
 6,778 
 4,099 
 2,679 
 65.4% 

 
 Impairments 
 — 
 (7,942 ) 
 7,942 
 n/a 

 
 Loss on extinguishment of convertible notes 
 (30,632 ) 
 (9,721 ) 
 (20,911 ) 
 215.1% 

 
 Other gains/(losses), net 
 874 
 (1,631 ) 
 2,505 
 (153.6% ) 

 
 Total other income/(expenses), net 
 $ (41,891 ) 
 $ 31,516 
 $ (73,407 ) 
 (232.9% ) 

 
 
 
 
 
 Year Ended December 31, 
 

 
 As a Percent of Revenues: 
 
 2024 
 
 2023 
 

 
 Interest expense 
 (4.4% ) 
 (4.4% ) 

 
 Gain on revaluation/termination of deferred consideration—gold payments 
 — 
 17.8% 

 
 Interest income 
 1.6% 
 1.2% 

 
 Impairments 
 — 
 (2.3% ) 

 
 Loss on extinguishment of convertible notes 
 (7.2% ) 
 (2.8% ) 

 
 Other gains/(losses), net 
 0.2% 
 (0.5% ) 

 
 Total other income/(expenses), net 
 (9.8% ) 
 9.0% 

 
 Interest expense 
 Interest expense increased 24.1% from $15.2
million during the year ended December 31, 2023 to $18.9 million during the year ended December 31, 2024 due to a higher level of debt
outstanding, partly offset by a lower average interest rate.
 Our effective interest rate on our outstanding
Convertible Notes during the years ended December 31, 2023 and 2024 was 4.9% and 4.5%, respectively.
 Gain on revaluation/termination of deferred consideration 
 No gains or losses on revaluation/termination
of deferred consideration—gold payments were recognized during the year ended December 31, 2024, as this obligation was terminated
on May 10, 2023 for approximately $137.0 million. See Note 9 to our Consolidated Financial Statements for additional information.
 Interest income 
 Interest income increased 65.4% from $4.1 million
during the year ended December 31, 2023 to $6.8 million during the year ended December 31, 2024 due to a higher level of interest-bearing
assets.
 Impairments 
 No impairments were recognized during the year
ended December 31, 2024, while during the year ended December 31, 2023, we recognized a non-cash impairment charge of $7.9 million primarily
related to our investment in Securrency, Inc. upon the sale of Securrency, Inc. to an unrelated third party. (See Notes 7 and 26 to our
Consolidated Financial Statements).
 Other gains/(losses), net 
 Other gains/(losses), net were ($1.6) million and $0.9 million during the
years ended December 31, 2023 and 2024, respectively. The year ended December 31, 2024 includes a $4.0 million civil money penalty in
connection with the SEC ESG Settlement. Also included are net gains of $4.9 million and net losses of $1.1 million on our financial instruments
owned and our investments, respectively. Gains and losses also generally arise from the sale of gold earned from advisory fees paid by
our physically-backed gold ETPs, foreign exchange fluctuations and other miscellaneous items.
 
 59 
 

 Table of Contents 
 

 Income Taxes 
 Our effective income tax rate for 2024 was 30.1%,
resulting in an income tax expense of $28.7 million. Our tax rate differs from the federal statutory rate of 21.0% primarily due to a
non-deductible loss on extinguishment of convertible notes, a non-deductible civil money penalty of $4.0 million in connection with the
SEC ESG Settlement and non-deductible executive compensation. These items were partly offset by a lower tax rate on foreign earnings.
 Our effective income tax rate for 2023 was 13.8%,
resulting in income tax expense of $16.5 million. The effective tax rate differs from the federal statutory rate of 21% primarily due
to a non-taxable gain on revaluation/termination of deferred consideration, a reduction in unrecognized tax benefits associated with the
release of a tax-related indemnification asset and a lower tax rate on foreign earnings. These items were partly offset by a non-deductible
loss on extinguishment of our 4.25% Convertible Senior Notes due 2023 during the first quarter of 2023, an increase in the deferred tax
asset valuation allowance on losses recognized on our investments and non-deductible executive compensation.
 
 60 
 

 Table of Contents 
 

 Quarterly Results 
 The following tables set forth our unaudited
consolidated quarterly statement of operations data, both in dollar amounts and as a percentage of total revenues, and our unaudited consolidated
quarterly operating data for the quarters in 2025 and 2024. In our opinion, this unaudited information has been prepared on substantially
the same basis as the consolidated financial statements appearing elsewhere in this Report and includes all adjustments (consisting of
normal recurring adjustments) necessary for a fair statement of the unaudited consolidated quarterly data. The unaudited consolidated
quarterly data should be read together with the consolidated financial statements and related notes included elsewhere in this Report.
The results for any quarter are not necessarily indicative of results for any future period, and you should not rely on them as such.
 
 
 
 (in
 thousands, except per share amounts) 
 Q4/25 
 
 
 Q3/25 
 
 
 Q2/25 
 
 
 Q1/25 
 
 
 Q4/24 
 
 
 Q3/24 
 
 
 Q2/24 
 
 
 Q1/24 
 
 

 
 Operating Revenues: 
 
 
 
 
 
 
 
 

 
 Advisory fees 
 $ 122,712 
 $ 114,485 
 $ 103,241 
 $ 99,549 
 $ 102,264 
 $ 101,659 
 $ 98,938 
 $ 92,501 

 
 Management fees 
 4,908 
 — 
 — 
 — 
 — 
 — 
 — 
 — 

 
 Performance fees 
 7,105 
 — 
 — 
 — 
 — 
 — 
 — 
 — 

 
 Other revenues 
 12,709 
 11,131 
 9,380 
 8,533 
 8,433 
 11,509 
 8,096 
 4,337 

 
 Total revenues 
 147,434 
 125,616 
 112,621 
 108,082 
 110,697 
 113,168 
 107,034 
 96,838 

 
 Operating Expenses: 
 
 
 
 
 
 
 
 

 
 Compensation and benefits 
 37,273 
 33,791 
 32,827 
 33,788 
 30,032 
 29,405 
 30,790 
 31,054 

 
 Fund management and administration 
 24,830 
 22,353 
 21,252 
 20,714 
 22,858 
 21,004 
 20,139 
 19,962 

 
 Marketing and advertising 
 5,613 
 4,788 
 5,330 
 4,813 
 6,117 
 4,897 
 5,110 
 4,408 

 
 Sales and business development 
 4,045 
 3,943 
 4,232 
 4,137 
 4,101 
 3,465 
 3,640 
 3,611 

 
 Professional fees 
 3,596 
 3,505 
 3,177 
 2,782 
 4,559 
 6,315 
 6,594 
 3,630 

 
 Occupancy, communications and equipment 
 1,892 
 1,601 
 1,559 
 1,482 
 1,423 
 1,397 
 1,314 
 1,210 

 
 Depreciation and amortization 
 2,043 
 615 
 580 
 540 
 504 
 447 
 418 
 383 

 
 Third-party distribution fees 
 4,772 
 3,977 
 4,083 
 3,112 
 3,161 
 2,983 
 2,687 
 2,307 

 
 Acquisition-related costs 
 317 
 2,409 
 1,967 
 — 
 — 
 — 
 — 
 — 

 
 Other 
 3,306 
 2,980 
 2,982 
 2,552 
 2,902 
 2,463 
 2,831 
 2,323 

 
 Total operating expenses 
 87,687 
 79,962 
 77,989 
 73,920 
 75,657 
 72,376 
 73,523 
 68,888 

 
 Operating income 
 59,747 
 45,654 
 34,632 
 34,162 
 35,040 
 40,792 
 33,511 
 27,950 

 
 Other Income/(Expenses): 
 
 
 
 
 
 
 
 

 
 Interest expense 
 (11,023 ) 
 (8,466 ) 
 (5,490 ) 
 (5,441 ) 
 (5,616 ) 
 (5,027 ) 
 (4,140 ) 
 (4,128 ) 

 
 Interest income 
 2,965 
 4,015 
 2,090 
 1,897 
 2,147 
 1,795 
 1,438 
 1,398 

 
 Loss on extinguishment of convertible notes 
 (833 ) 
 (13,011 ) 
 — 
 — 
 — 
 (30,632 ) 
 — 
 — 

 
 Remeasurement of contingent consideration 
 (710 ) 
 — 
 — 
 — 
 — 
 — 
 — 
 — 

 
 Other gains and losses, net 
 317 
 1,325 
 638 
 (250 ) 
 2,627 
 (3,062 ) 
 (1,283 ) 
 2,592 

 
 Income before income taxes 
 50,463 
 29,517 
 31,870 
 30,368 
 34,198 
 3,866 
 29,526 
 27,812 

 
 Income tax expense 
 10,437 
 9,816 
 7,093 
 5,739 
 6,890 
 8,351 
 7,767 
 5,701 

 
 Net income/(loss) 
 $ 40,026 
 $ 19,701 
 $ 24,777 
 $ 24,629 
 $ 27,308 
 $ (4,485 ) 
 $ 21,759 
 $ 22,111 

 
 Earnings/(loss) per share—basic 
 $ 0.29 
 $ 0.14 
 $ 0.17 
 $ 0.17 
 $ 0.19 
 $ (0.13 ) 
 $ 0.13 
 $ 0.14 

 
 Earnings/(loss) per share—diluted 
 $ 0.28 
 $ 0.13 
 $ 0.17 
 $ 0.17 
 $ 0.18 
 $ (0.13 ) 
 $ 0.13 
 $ 0.13 

 
 Dividends per common share 
 $ 0.03 
 $ 0.03 
 $ 0.03 
 $ 0.03 
 $ 0.03 
 $ 0.03 
 $ 0.03 
 $ 0.03 

 
 
 61 
 

 Table of Contents 
 

 
 
 
 
 Q4/25 
 
 Q3/25 
 
 Q2/25 
 
 Q1/25 
 
 Q4/24 
 
 Q3/24 
 
 Q2/24 
 
 Q1/24 
 

 
 Percent of Total Revenues 
 
 
 
 
 
 
 
 

 
 Operating Revenues 
 
 
 
 
 
 
 
 

 
 Advisory fees 
 83.3% 
 91.1% 
 91.7% 
 92.1% 
 92.4% 
 89.8% 
 92.4% 
 95.5% 

 
 Management fees 
 3.3% 
 — 
 — 
 — 
 — 
 — 
 — 
 — 

 
 Performance fees 
 4.8% 
 — 
 — 
 — 
 — 
 — 
 — 
 — 

 
 Other revenues 
 8.6% 
 8.9% 
 8.3% 
 7.9% 
 7.6% 
 10.2% 
 7.6% 
 4.5% 

 
 Total revenues 
 100.0% 
 100.0% 
 100.0% 
 100.0% 
 100.0% 
 100.0% 
 100.0% 
 100.0% 

 
 Operating Expenses 
 
 
 
 
 
 
 
 

 
 Compensation and benefits 
 25.5% 
 26.9% 
 29.2% 
 31.1% 
 27.1% 
 26.0% 
 28.8% 
 32.1% 

 
 Fund management and administration 
 16.8% 
 17.8% 
 18.9% 
 19.2% 
 20.6% 
 18.6% 
 18.8% 
 20.6% 

 
 Marketing and advertising 
 3.8% 
 3.8% 
 4.7% 
 4.5% 
 5.5% 
 4.3% 
 4.8% 
 4.6% 

 
 Sales and business development 
 2.7% 
 3.1% 
 3.8% 
 3.8% 
 3.7% 
 3.1% 
 3.4% 
 3.7% 

 
 Professional fees 
 2.4% 
 2.8% 
 2.8% 
 2.6% 
 4.1% 
 5.6% 
 6.2% 
 3.7% 

 
 Occupancy, communications and equipment 
 1.3% 
 1.3% 
 1.4% 
 1.4% 
 1.3% 
 1.2% 
 1.2% 
 1.2% 

 
 Depreciation and amortization 
 1.4% 
 0.5% 
 0.5% 
 0.5% 
 0.5% 
 0.4% 
 0.4% 
 0.4% 

 
 Third-party distribution fees 
 3.2% 
 3.2% 
 3.6% 
 2.9% 
 2.9% 
 2.6% 
 2.5% 
 2.4% 

 
 Acquisition-related costs 
 0.2% 
 1.9% 
 1.7% 
 — 
 — 
 — 
 — 
 — 

 
 Other 
 2.2% 
 2.4% 
 2.6% 
 2.4% 
 2.6% 
 2.2% 
 2.6% 
 2.4% 

 
 Total operating expenses 
 59.5% 
 63.7% 
 69.2% 
 68.4% 
 68.3% 
 64.0% 
 68.7% 
 71.1% 

 
 Operating income 
 40.5% 
 36.3% 
 30.8% 
 31.6% 
 31.7% 
 36.0% 
 31.3% 
 28.9% 

 
 Other Income/(Expenses) 
 
 
 
 
 
 
 
 

 
 Interest expense 
 (7.4% ) 
 (6.7% ) 
 (5.0% ) 
 (5.1% ) 
 (5.1% ) 
 (4.4% ) 
 (3.8% ) 
 (4.2% ) 

 
 Interest income 
 2.0% 
 3.2% 
 1.9% 
 1.8% 
 1.9% 
 1.6% 
 1.3% 
 1.4% 

 
 Loss on extinguishment of convertible notes 
 (0.6% ) 
 (10.4% ) 
 — 
 — 
 — 
 (27.1% ) 
 — 
 — 

 
 Remeasurement of contingent consideration 
 (0.5% ) 
 — 
 — 
 — 
 — 
 — 
 — 
 — 

 
 Other gains and losses, net 
 0.2% 
 1.1% 
 0.6% 
 (0.2% ) 
 2.4% 
 (2.7% ) 
 (1.2% ) 
 2.7% 

 
 Income before income taxes 
 34.2% 
 23.5% 
 28.3% 
 28.1% 
 30.9% 
 3.4% 
 27.6% 
 28.7% 

 
 Income tax expense 
 7.1% 
 7.8% 
 6.3% 
 5.3% 
 6.2% 
 7.4% 
 7.3% 
 5.9% 

 
 Net income/(loss) 
 27.1% 
 15.7% 
 22.0% 
 22.8% 
 24.7% 
 (4.0% ) 
 20.3% 
 22.8% 

 
 
 62 
 

 Table of Contents 
 

 
 Operating Statistics 
 
 
 
 Q4/25 
 Q3/25 
 Q2/25 
 Q1/25 
 Q4/24 
 Q3/24 
 Q2/24 
 Q1/24 

 
 GLOBAL PRODUCTS ($ in millions ) 
 
 
 
 
 
 
 
 

 
 Beginning of period assets 
 $ 137,175 
 $ 126,070 
 $ 115,787 
 $ 109,779 
 $ 112,577 
 $ 109,686 
 $ 107,230 
 $ 100,124 

 
 Add: Digital assets—Jan. 1, 2025 
 — 
 — 
 — 
 32 
 — 
 — 
 — 
 — 

 
 Add: Assets acquired—Ceres Acquisition 
 1,812 
 — 
 — 
 — 
 — 
 — 
 — 
 — 

 
 (Outflows)/inflows 
 (283 ) 
 2,240 
 3,529 
 3,052 
 (281 ) 
 (2,395 ) 
 340 
 1,988 

 
 Market appreciation/(depreciation) 
 5,820 
 8,865 
 6,754 
 2,924 
 (2,517 ) 
 5,286 
 2,116 
 5,118 

 
 End of period assets 
 $ 144,524 
 $ 137,175 
 $ 126,070 
 $ 115,787 
 $ 109,779 
 $ 112,577 
 $ 109,686 
 $ 107,230 

 
 Average assets during the period 
 $ 140,685 
 $ 130,760 
 $ 119,185 
 $ 114,622 
 $ 112,349 
 $ 110,369 
 $ 108,479 
 $ 102,461 

 
 Average ETP advisory fee during the period 
 0.35% 
 0.35% 
 0.35% 
 0.35% 
 0.36% 
 0.37% 
 0.37% 
 0.36% 

 
 Total revenue yield 
 0.42% 
 0.38% 
 0.38% 
 0.38% 
 0.39% 
 0.41% 
 0.40% 
 0.38% 

 
 Number of products-end of period 
 406 
 397 
 383 
 375 (1)   
 353 
 352 
 350 
 338 

 
 ETPs AND TOKENIZED PRODUCTS 
 
 
 
 
 
 
 
 

 
 U.S. LISTED ETFs ($ in millions ) 
 
 
 
 
 
 
 
 

 
 Beginning of period assets 
 $ 88,293 
 $ 85,179 
 $ 80,531 
 $ 79,095 
 $ 81,267 
 $ 79,722 
 $ 78,087 
 $ 72,486 

 
 (Outflows)/inflows 
 (1,108 ) 
 (445 ) 
 1,110 
 1,847 
 (40 ) 
 (1,650 ) 
 1,106 
 1,983 

 
 Market appreciation/(depreciation) 
 1,336 
 3,559 
 3,538 
 (411 ) 
 (2,132 ) 
 3,195 
 529 
 3,618 

 
 End of period assets 
 $ 88,521 
 $ 88,293 
 $ 85,179 
 $ 80,531 
 $ 79,095 
 $ 81,267 
 $ 79,722 
 $ 78,087 

 
 Average assets during the period 
 $ 88,074 
 $ 87,205 
 $ 81,525 
 $ 81,127 
 $ 80,661 
 $ 80,335 
 $ 78,523 
 $ 74,831 

 
 Number of ETFs—end of the period 
 86 
 84 
 81 
 78 
 78 
 78 
 78 
 77 

 
 EUROPEAN LISTED ETPs ($ in millions ) 
 
 
 
 
 
 
 
 

 
 Beginning of period assets 
 $ 48,290 
 $ 40,541 
 $ 35,124 
 $ 30,684 
 $ 31,310 
 $ 29,964 
 $ 29,143 
 $ 27,638 

 
 Inflows/(outflows) 
 609 
 2,447 
 2,201 
 1,104 
 (241 ) 
 (745 ) 
 (766 ) 
 5 

 
 Market appreciation/(depreciation) 
 4,446 
 5,302 
 3,216 
 3,336 
 (385 ) 
 2,091 
 1,587 
 1,500 

 
 End of period assets 
 $ 53,345 
 $ 48,290 
 $ 40,541 
 $ 35,124 
 $ 30,684 
 $ 31,310 
 $ 29,964 
 $ 29,143 

 
 Average assets during the period 
 $ 50,102 
 $ 42,853 
 $ 37,439 
 $ 33,415 
 $ 31,688 
 $ 30,034 
 $ 29,956 
 $ 27,630 

 
 Number of ETPs—end of the period 
 300 
 295 
 285 
 280 
 275 
 274 
 272 
 261 

 
 DIGITAL ASSETS ($ in millions ) 
 
 
 
 
 
 
 
 

 
 Beginning of period assets 
 $ 592 
 $ 350 
 $ 132 
 $ — 
 $ — 
 $ — 
 $ — 
 $ — 

 
 Add: Digital Assets—Jan. 1, 2025 
 — 
 — 
 — 
 32 
 — 
 — 
 — 
 — 

 
 Inflows 
 179 
 238 
 218 
 101 
 — 
 — 
 — 
 — 

 
 Market (depreciation)/appreciation 
 (2 ) 
 4 
 — 
 (1 ) 
 — 
 — 
 — 
 — 

 
 End of period assets 
 $ 769 
 $ 592 
 $ 350 
 $ 132 
 $ — 
 $ — 
 $ — 
 $ — 

 
 Average assets during the period 
 $ 694 
 $ 702 
 $ 221 
 $ 80 
 $ — 
 $ — 
 $ — 
 $ — 

 
 Number of products—end of the period 
 19 
 18 
 17 
 17 
 — 
 — 
 — 
 — 

 
 PRIVATE ASSETS ($ in millions ) 
 
 
 
 
 
 
 
 

 
 Beginning of period assets 
 $ — 
 $ — 
 $ — 
 $ — 
 $ — 
 $ — 
 $ — 
 $ — 

 
 Add: Assets acquired—Ceres Acquisition 
 1,812 
 — 
 — 
 — 
 — 
 — 
 — 
 — 

 
 Inflows 
 37 
 — 
 — 
 — 
 — 
 — 
 — 
 — 

 
 Market appreciation 
 40 
 — 
 — 
 — 
 — 
 — 
 — 
 — 

 
 End of period assets 
 $ 1,889 
 $ — 
 $ — 
 $ — 
 $ — 
 $ — 
 $ — 
 $ — 

 
 Average assets during the period 
 $ 1,815 
 $ — 
 $ — 
 $ — 
 $ — 
 $ — 
 $ — 
 $ — 

 
 Number of products—end of the period 
 1 
 — 
 — 
 — 
 — 
 — 
 — 
 — 

 
 PRODUCT CATEGORIES ($ in millions )
 
 
 
 
 
 
 
 
 

 
 U.S. Equity 
 
 
 
 
 
 
 
 

 
 Beginning of period assets 
 $ 40,977 
 $ 38,617 
 $ 35,628 
 $ 35,414 
 $ 34,643 
 $ 31,834 
 $ 31,670 
 $ 29,156 

 
 Add: Digital Assets—Jan. 1, 2025 
 — 
 — 
 — 
 9 
 — 
 — 
 — 
 — 

 
 Inflows 
 191 
 32 
 1,284 
 962 
 1,100 
 328 
 221 
 536 

 
 Market appreciation/(depreciation) 
 260 
 2,328 
 1,705 
 (757 ) 
 (329 ) 
 2,481 
 (57 ) 
 1,978 

 
 End of period assets 
 $ 41,428 
 $ 40,977 
 $ 38,617 
 $ 35,628 
 $ 35,414 
 $ 34,643 
 $ 31,834 
 $ 31,670 

 
 Average assets during the period 
 $ 41,163 
 $ 40,024 
 $ 36,080 
 $ 36,281 
 $ 35,714 
 $ 33,175 
 $ 31,339 
 $ 30,154 

 
 Commodity & Currency 
 
 
 
 
 
 
 
 

 
 Beginning of period assets 
 $ 31,705 
 $ 26,696 
 $ 25,487 
 $ 21,906 
 $ 23,034 
 $ 21,987 
 $ 21,944 
 $ 21,336 

 
 Add: Digital Assets—Jan. 1, 2025 
 — 
 — 
 — 
 1 
 — 
 — 
 — 
 — 

 
 Inflows/(outflows) 
 177 
 1,096 
 (110 ) 
 (159 ) 
 (441 ) 
 (741 ) 
 (1,499 ) 
 (460 ) 

 
 Market appreciation/(depreciation) 
 5,098 
 3,913 
 1,319 
 3,739 
 (687 ) 
 1,788 
 1,542 
 1,068 

 
 End of period assets 
 $ 36,980 
 $ 31,705 
 $ 26,696 
 $ 25,487 
 $ 21,906 
 $ 23,034 
 $ 21,987 
 $ 21,944 

 
 Average assets during the period 
 $ 33,824 
 $ 28,162 
 $ 25,888 
 $ 23,993 
 $ 22,989 
 $ 22,016 
 $ 22,437 
 $ 20,837 

 
 International Developed Market Equity 
 
 
 
 
 
 
 
 

 
 Beginning of period assets 
 $ 23,893 
 $ 21,725 
 $ 18,178 
 $ 17,602 
 $ 18,075 
 $ 19,385 
 $ 18,103 
 $ 15,103 

 
 Inflows/(outflows) 
 1,146 
 477 
 1,649 
 474 
 63 
 (1,391 ) 
 1,253 
 1,597 

 
 Market appreciation/(depreciation) 
 577 
 1,691 
 1,898 
 102 
 (536 ) 
 81 
 29 
 1,403 

 
 End of period assets 
 $ 25,616 
 $ 23,893 
 $ 21,725 
 $ 18,178 
 $ 17,602 
 $ 18,075 
 $ 19,385 
 $ 18,103 

 
 Average assets during the period 
 $ 24,708 
 $ 22,481 
 $ 19,577 
 $ 18,275 
 $ 17,716 
 $ 18,636 
 $ 18,809 
 $ 16,691 

 
 
 
 63 
 

 Table of Contents 
 

 
 
 
 
 Q4/25 
 Q3/25 
 Q2/25 
 Q1/25 
 Q4/24 
 Q3/24 
 Q2/24 
 Q1/24 

 
 Fixed Income 
 
 
 
 
 
 
 
 

 
 Beginning of period assets 
 $ 22,509 
 $ 22,543 
 $ 22,230 
 $ 20,043 
 $ 20,767 
 $ 21,430 
 $ 21,218 
 $ 21,197 

 
 Add: Digital Assets—Jan. 1, 2025 
 — 
 — 
 — 
 21 
 — 
 — 
 — 
 — 

 
 (Outflows)/inflows 
 (1,355 ) 
 (58 ) 
 148 
 2,093 
 (387 ) 
 (897 ) 
 236 
 (14 ) 

 
 Market (depreciation)/appreciation 
 (80 ) 
 24 
 165 
 73 
 (337 ) 
 234 
 (24 ) 
 35 

 
 End of period assets 
 $ 21,074 
 $ 22,509 
 $ 22,543 
 $ 22,230 
 $ 20,043 
 $ 20,767 
 $ 21,430 
 $ 21,218 

 
 Average assets during the period 
 $ 21,422 
 $ 23,128 
 $ 22,526 
 $ 21,464 
 $ 20,398 
 $ 21,135 
 $ 21,277 
 $ 21,082 

 
 Emerging Market Equity 
 
 
 
 
 
 
 
 

 
 Beginning of period assets 
 $ 10,855 
 $ 10,957 
 $ 9,985 
 $ 10,468 
 $ 12,452 
 $ 11,875 
 $ 11,189 
 $ 10,726 

 
 (Outflows)/inflows 
 (508 ) 
 (250 ) 
 28 
 (445 ) 
 (908 ) 
 (20 ) 
 57 
 217 

 
 Market appreciation/(depreciation) 
 296 
 148 
 944 
 (38 ) 
 (1,076 ) 
 597 
 629 
 246 

 
 End of period assets 
 $ 10,643 
 $ 10,855 
 $ 10,957 
 $ 9,985 
 $ 10,468 
 $ 12,452 
 $ 11,875 
 $ 11,189 

 
 Average assets during the period 
 $ 10,839 
 $ 10,874 
 $ 10,295 
 $ 10,072 
 $ 11,407 
 12,083 
 $ 11,448 
 $ 10,900 

 
 Leveraged & Inverse 
 
 
 
 
 
 
 
 

 
 Beginning of period assets 
 $ 2,913 
 $ 2,631 
 $ 2,133 
 $ 1,924 
 $ 2,082 
 $ 1,922 
 $ 1,828 
 $ 1,815 

 
 (Outflows)/inflows 
 (15 ) 
 (52 ) 
 141 
 116 
 (69 ) 
 71 
 (18 ) 
 (50 ) 

 
 Market appreciation/(depreciation) 
 377 
 334 
 357 
 93 
 (89 ) 
 89 
 112 
 63 

 
 End of period assets 
 $ 3,275 
 $ 2,913 
 $ 2,631 
 $ 2,133 
 $ 1,924 
 $ 2,082 
 $ 1,922 
 $ 1,828 

 
 Average assets during the period 
 $ 3,097 
 $ 2,750 
 $ 2,354 
 $ 2,083 
 $ 2,032 
 $ 1,962 
 $ 1,905 
 $ 1,792 

 
 Cryptocurrency 
 
 
 
 
 
 
 
 

 
 Beginning of period assets 
 $ 3,168 
 $ 2,087 
 $ 1,553 
 $ 1,912 
 $ 1,054 
 $ 838 
 $ 874 
 $ 414 

 
 Add: Digital Assets—Jan. 1, 2025 
 — 
 — 
 — 
 1 
 — 
 — 
 — 
 — 

 
 (Outflows)/inflows 
 (117 ) 
 764 
 198 
 (89 ) 
 315 
 201 
 75 
 158 

 
 Market (depreciation)/appreciation 
 (809 ) 
 317 
 336 
 (271 ) 
 543 
 15 
 (111 ) 
 302 

 
 End of period assets 
 $ 2,242 
 $ 3,168 
 $ 2,087 
 $ 1,553 
 $ 1,912 
 $ 1,054 
 $ 838 
 $ 874 

 
 Average assets during the period 
 $ 2,550 
 $ 2,412 
 $ 1,800 
 $ 1,900 
 $ 1,599 
 $ 917 
 $ 856 
 $ 614 

 
 Alternatives 
 
 
 
 
 
 
 
 

 
 Beginning of period assets 
 $ 1,155 
 $ 814 
 $ 593 
 $ 510 
 $ 470 
 $ 415 
 $ 404 
 $ 377 

 
 Inflows 
 161 
 231 
 191 
 100 
 46 
 54 
 15 
 4 

 
 Market appreciation/(depreciation) 
 61 
 110 
 30 
 (17 ) 
 (6 ) 
 1 
 (4 ) 
 23 

 
 End of period assets 
 $ 1,377 
 $ 1,155 
 $ 814 
 $ 593 
 $ 510 
 $ 470 
 $ 415 
 $ 404 

 
 Average assets during the period 
 $ 1,267 
 $ 929 
 $ 665 
 $ 554 
 $ 494 
 $ 445 
 $ 408 
 $ 391 

 
 Headcount 
 360 
 338 
 321 
 315 
 313 
 314 
 304 
 300 

 
 _____________________________
 
 
 (1) 
 Includes 17 digital assets products, which were launched prior to January 1,
 2025. 

 
 Note: Previously issued statistics
may be restated due to fund closures and trade adjustments 
 Source: WisdomTree 
 
 64 
 

 Table of Contents 
 

 Non-GAAP Financial Measurements 
 In an effort to provide additional information
regarding our results as determined by GAAP, we also disclose certain non-GAAP information which we believe provides useful and meaningful
information. Our management reviews these non-GAAP financial measurements when evaluating our financial performance and results of operations;
therefore, we believe it is useful to provide information with respect to these non-GAAP measurements so as to share this perspective
of management. Non-GAAP measurements do not have any standardized meaning, do not replace nor are superior to GAAP financial measurements
and are unlikely to be comparable to similar measures presented by other companies. These non-GAAP financial measurements should be considered
in the context with our GAAP results. The non-GAAP financial measurements contained in this Report include:
 Adjusted Net Income and Diluted Earnings per Share. 
 We disclose adjusted net income and diluted
earnings per share as non-GAAP financial measurements in order to report our results exclusive of items that are non-recurring or not
core to our operating business. We believe presenting these non-GAAP financial measurements provides investors with a consistent way to
analyze our performance. These non-GAAP financial measurements exclude the following:
 
 · Gains or losses on financial instruments owned: We account for our financial instruments owned as trading securities, which
requires these instruments to be measured at fair value with gains and losses reported in net income. We exclude these items when calculating
our non-GAAP financial measurements as the gains and losses introduce earnings volatility and are not core to our operating business. 
 
 
 · Foreign currency remeasurement gains and losses on U.S. dollars held by foreign subsidiaries: GAAP requires account balances
to be remeasured into an entity’s functional currency, with resulting gains and losses reported in net income. Foreign subsidiaries
holding U.S. dollars remeasure these balances into their functional currencies and recognize the gains and losses. Beginning in the second
quarter of 2025, we began excluding remeasurement effects from our non-GAAP financial measures, as they introduce earnings volatility,
are not core to our operations and arise from balances denominated in our reporting currency. 
 
 
 · Tax windfalls and shortfalls upon vesting of stock-based compensation awards: GAAP requires the recognition of tax windfalls
and shortfalls within income tax expense. These items arise upon the vesting of stock-based compensation awards and the magnitude is directly
correlated to the number of awards vesting/exercised as well as the difference between the price of our stock on the date the award was
granted and the date the award vested or was exercised. We exclude these items when calculating our non-GAAP financial measurements as
they introduce earnings volatility and are not core to our operating business. 
 
 
 · Amortization of intangible assets and remeasurement of contingent consideration arising from our acquisition of Ceres Partners,
LLC: On October 1, 2025, we completed the Ceres Acquisition for aggregate consideration consisting of (i) $275 million in cash payable
at closing, subject to customary post-closing adjustments and (ii) contingent consideration of up to $225 million, payable in 2030, contingent
upon Ceres achieving a compound annual growth rate (“CAGR”) in revenues of 12% to 22% during the measurement period of January
1, 2025 through December 31, 2029. GAAP requires contingent consideration to be re-measured each reporting period with changes in fair
value reported in net income. In addition, a portion of the consideration totaling $143.5 million was allocated to intangible assets,
which is amortized over 25 years. We exclude changes in fair value of contingent consideration and amortization of intangible assets arising
from the Ceres Acquisition when calculating our non-GAAP financial measurements as these items are not core to our operating business. 
 
 
 · Other items: Losses on extinguishment of convertible notes, acquisition-related costs, changes in deferred tax asset valuation
allowance, imputed interest on our payable to GBH, gains and losses recognized on our investments, a civil money penalty in connection
with the SEC ESG Settlement, expenses incurred in response to an activist campaign, gain on revaluation/termination of deferred consideration,
impairments, remeasurement of contingent consideration payable to us from the sale of our former Canadian ETF business and litigation
expenses associated with certain provisions of our Stockholder Rights Agreement, dated as of March 17, 2023, as amended, are excluded
when calculating our non-GAAP financial measurements. 
 
 
 65 
 

 Table of Contents 
 

 
 
 
 Years Ended December 31, 
 

 
 Adjusted Net Income and Diluted Earnings per Share: 
 
 2025 
 
 2024 
 
 2023 
 

 
 Net income, as reported 
 $ 109,133 
 $ 66,693 
 $ 102,546 

 
 Add back: Loss on extinguishment of convertible notes, net of income taxes 
 13,268 
 29,410 
 9,623 

 
 Add back: Acquisition-related costs, net of income taxes 
 3,553 
 — 
 — 

 
 Deduct: Tax windfalls upon vesting and exercise of stock-based compensation awards 
 (2,163 ) 
 (764 ) 
 (176 ) 

 
 (Deduct)/add back: (Decrease)/increase in deferred tax valuation allowance on capital losses 
 (1,690 ) 
 (903 ) 
 2,113 

 
 (Deduct)/add back: (Gains)/Losses on financial instruments owned, at fair value, net of income taxes 
 (1,441 ) 
 (3,671 ) 
 392 

 
 Add back: Imputed interest on payable to GBH, net of income taxes 
 1,347 
 1,996 
 224 

 
 Add back: Amortization of intangible assets arising from the Ceres Acquisition, net of income taxes 
 1,086 
 — 
 — 

 
 Add back: Foreign currency remeasurement losses on U.S. dollar balances, net of income taxes 
 995 
 — 
 — 

 
 Add back: Increase in fair value of contingent consideration, net of income taxes 
 538 
 — 
 — 

 
 (Deduct)/add back: (Gains)/losses recognized on investments, net of income taxes 
 (38 ) 
 858 
 607 

 
 Add back: Civil money penalty in connection with SEC ESG Settlement 
 — 
 4,000 
 — 

 
 Add back: Expenses incurred in response to an activist campaign, net of income taxes 
 — 
 3,760 
 4,452 

 
 Deduct: Gain on revaluation/termination of deferred consideration 
 — 
 — 
 (61,953 ) 

 
 Add back: Impairments, net of income taxes 
 — 
 — 
 6,013 

 
 Deduct: Gain recognized from the sale of Canadian ETF business, including remeasurement of contingent consideration 
 — 
 — 
 (1,477 ) 

 
 Add back: Litigation expenses associated with certain provisions of the Stockholder Rights Agreement, net of income taxes 
 — 
 — 
 367 

 
 Adjusted net income 
 $ 124,588 
 $ 101,379 
 $ 62,731 

 
 Deduct: Income distributed to participating securities 
 — 
 (1,406 ) 
 (2,770 ) 

 
 Deduct: Undistributed income allocable to participating securities 
 (31 ) 
 (5,069 ) 
 (5,868 ) 

 
 Adjusted net income available to common stockholders 
 $ 124,557 
 $ 94,904 
 $ 54,093 

 
 Weighted average diluted shares, excluding
participating securities (See Note 20 to our Consolidated Financial Statements) 
 144,891 
 149,253 
 147,827 

 
 Adjusted earnings per share—diluted 
 $ 0.86 
 $ 0.64 
 $ 0.37 

 
 During the year ended December 31, 2025, we recognized
an excise tax of $0.7 million on stock repurchases. During the years ended December 31, 2024 and 2023, we recognized a loss of $13.2 million
(which includes an excise tax of $1.8 million) and a gain of $8.0 million, respectively, related to the repurchase of the Series A Non-Voting
Convertible Preferred Stock (“Series A Preferred Stock”) and the Series C Preferred Stock. These items are excluded from net
income, but are required to be added to net income to arrive at income available to common stockholders in the calculation of earnings
per share under U.S. GAAP.
 

 Liquidity and Capital Resources 
 The following table summarizes key information regarding
our liquidity, capital resources and use of capital to fund our operations:
 
 
 
 December 31,
 2025 
 
 December 31,
 2024 
 

 
 Balance Sheet Data (in thousands): 
 
 

 
 Cash and cash equivalents 
 $ 311,732 
 $ 181,191 

 
 Financial instruments owned, at fair value 
 107,117 
 85,439 

 
 Accounts receivable 
 64,452 
 44,866 

 
 Total: Liquid assets 
 483,301 
 311,702 

 
 Less: Total current liabilities 
 (282,056 ) 
 (109,197 ) 

 
 Less: Other assets—seed capital (WisdomTree Digital Funds) 
 (19,327 ) 
 (20,866 ) 

 
 Less: Regulatory capital requirements 
 ( 38,861 ) 
 (39,423 ) 

 
 Total: Available liquidity 
 $ 143,057 
 
 $ 142,216 

 
 
 66 
 

 Table of Contents 
 

 
 
 
 Year Ended December 31, 
 

 
 
 2025 
 
 2024 
 
 2023 
 

 
 Cash Flow Data (in thousands): 
 
 
 

 
 Operating cash flows 
 $ 147,946 
 $ 113,461 
 $ 85,600 

 
 Investing cash flows 
 (313,033 ) 
 (23,875 ) 
 82,049 

 
 Financing cash flows 
 289,788 
 (36,000 ) 
 (171,636 ) 

 
 Foreign exchange rate effect 
 5,840 
 (1,700 ) 
 1,191 

 
 Increase/(decrease) in cash and cash equivalents 
 $ 130,541 
 $ 51,886 
 $ (2,796 ) 

 
 Liquidity 
 We consider our available liquidity to be our
liquid assets, less our current liabilities, seed capital in WisdomTree Digital Funds and regulatory capital requirements of certain of
our subsidiaries. Liquid assets consist of cash, cash equivalents and restricted cash, financial instruments owned, at fair value, accounts
receivable and securities held-to-maturity. Our financial instruments owned, at fair value are highly liquid investments. Accounts receivable
are current assets and primarily represent receivables from advisory fees we earn from our ETPs. Our current liabilities consist primarily
of payments owed to vendors and third parties in the normal course of business and accrued incentive compensation for employees.
 Cash, cash equivalents and restricted cash increased
$130.5 million during the year ended December 31, 2025 due to $475.0 million of proceeds from the issuance of the 2030 Notes, $147.9 million
of net cash provided by operating activities, $12.6 million of proceeds from the sale of financial instruments owned, at fair value and
$5.6 million from other activities. These increases were partly offset by $270.3 million paid for the Ceres Acquisition, $102.7 million
used to repurchase our common stock, $39.3 million used to repurchase our 2028 Notes, $32 million used to purchase financial instruments
owned, at fair value, $20.1 million used to purchase investments, $17.3 million used to pay dividends, $14.8 million paid to GBH, $11.1
million used to pay convertible notes issuance costs and $3.0 million used to pay for software development.
 Cash, cash equivalents and restricted cash increased
$51.9 million during the year ended December 31, 2024 due to $345.0 million of proceeds from the issuance of the 2029 Notes, $113.5 million
of net cash provided by operating activities and $48.1 million of proceeds from the sale of financial instruments owned, at fair value.
These increases were partially offset by $143.8 million used to repurchase the Series A Preferred Stock, $132.7 million to repurchase
a portion of our 2028 Notes, $69.4 million used to purchase financial instruments owned, at fair value, $62.9 million used to repurchase
our common stock, $19.0 million used to pay dividends, $14.8 million paid to GBH, $7.7 million used to pay convertible notes issuance
costs, $2.3 million used to pay for software development and $2.1 million used in other activities.
 Cash, cash equivalents and restricted cash decreased
$2.8 million during the year ended December 31, 2023 due to $184.3 million used to repurchase and settle our 4.25% Convertible Senior
Notes due 2023, $57.4 million used to purchase financial instruments owned, at fair value, $50.0 million used to terminate our deferred
consideration—gold payments obligation, $40.0 million used to repurchase our Series C Preferred Stock, $20.1 million used to pay
dividends on our common stock, $11.2 million used to purchase investments, $3.6 million used to repurchase our common stock, $3.5 million
used to pay issuance costs in respect of our 2028 Notes, $2.1 million used for software development and $1.2 million used in other activities.
These decreases were partly offset by $130.0 million of proceeds from the issuance of our 2028 Notes, $123.6 million of proceeds from
the sale of financial instruments owned, at fair value, $85.6 million of net cash provided by operating activities, $28.8 million of proceeds
from the exit from our investment in Securrency, Inc. in connection with the sale of Securrency, Inc. to an unaffiliated third party,
$1.5 million from receipt of contingent consideration related to the sale of our Canadian ETF business, and $1.1 million from other activities.
 

 Convertible Notes 
 We have the following convertible notes outstanding
as of December 31, 2025:
 
 · $150.0 million in aggregate principal amount of the 2026 Notes; 
 
 
 · $345.0 million in aggregate principal amount the 2029 Notes; and 
 
 
 · $475.0 million in aggregate principal amount of the 2030 Notes. 
 
 Each class of notes was issued pursuant to indentures
dated as of the issuance dates between us and U.S. Bank Trust Company, National Association, as trustee (either initially or as successor
to U.S. Bank National Association, the “Trustee”), in private offerings to qualified institutional buyers pursuant to Rule
144A under the Securities Act of 1933, as amended.
 In connection with the issuance of the 2030
Notes, we repurchased $24.0 million in aggregate principal amount of our 2028 Notes. As a result of this repurchase, we recognized a loss
on extinguishment of $13.0 million during the year ended December 31, 2025. Additionally, on November 25, 2025, we redeemed the remaining
$1.8 million in aggregate principal amount of the 2028 Notes, resulting in a loss on extinguishment of $0.8 million.
 
 67 
 

 Table of Contents 
 

 As of December 31, 2025, we had an aggregate
principal amount of $970.0 million outstanding of the 2026 Notes, the 2029 Notes and the 2030 Notes (collectively, the “Convertible
Notes”).
 Key terms of the Convertible Notes are as follows:
 
 
 
 2026 Notes 
 2029 Notes 
 2030 Notes 

 
 Principal outstanding 
 $150.0 
 $345.0 
 $475.0 

 
 Issuance date 
 June 14, 2021 
 August 13, 2024 
 August 14, 2025 

 
 Maturity date (unless earlier converted, repurchased or redeemed) 
 June 15, 2026 
 August 15, 2029 
 August 15, 2030 

 
 Interest rate 
 3.25% 
 3.25% 
 4.625% 

 
 Initial conversion price 
 $11.04 
 $11.82 
 $19.15 

 
 Initial conversion rate 
 90.5797 
 84.5934 
 52.2071 

 
 Redemption price 
 $14.35 
 $15.37 
 $24.90 

 
 
 · Interest rate: Payable semiannually in arrears on February 15 and August 15 of each year for the 2030 Notes and the 2029 Notes
and on June 15 and December 15 of each year for the 2026 Notes. 
 
 
 · Conversion price: Convertible at an initial conversion rate into shares of our common stock, per $1,000 principal amount of
notes (equivalent to an initial conversion price set forth in the table above), subject to adjustment. 
 
 
 · Conversion: Holders may convert at their option at any time prior to the close of business on the business day immediately
preceding May 15, 2030, May 15, 2029 and March 15, 2026 for the 2030 Notes, the 2029 Notes and the 2026 Notes, respectively, only under
the following circumstances: (i) if the last reported sale price of our common stock for at least 20 trading days during a period of 30
consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130%
of the conversion price for the respective Convertible Notes on each applicable trading day; (ii) during the five business day period
after any ten consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount
of the Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sales price
of our common stock and the conversion rate on each such trading day; (iii) upon a notice of redemption delivered by us in accordance
with the terms of the indentures but only with respect to the Convertible Notes called (or deemed called) for redemption; or (iv) upon
the occurrence of specified corporate events. On or after May 15, 2030, May 15, 2029 and March 15, 2026 in respect of the 2030 Notes,
the 2029 Notes and the 2026 Notes, respectively, until the close of business on the second scheduled trading day immediately preceding
the maturity date, holders may convert their Convertible Notes at any time, regardless of the foregoing circumstances. 
 
 
 · Cash settlement of principal amount: Upon conversion, we will pay cash up to the aggregate principal amount of the Convertible
Notes to be converted. At our election, we will also settle the conversion obligation in excess of the aggregate principal amount of the
Convertible Notes being converted in either cash, shares of our common stock or a combination of cash and shares of common stock. 
 
 
 · Redemption price: We may redeem for cash all or any portion of the Convertible Notes, at our option, on or after August 20,
2027, August 20, 2026 and June 20, 2023 in respect of the 2030 Notes, the 2029 Notes and the 2026 Notes, respectively, and on or prior
to the 45th scheduled trading day with respect to the 2030 Notes and the 55th scheduled trading day with respect
to the 2029 Notes and the 2026 Notes immediately preceding the maturity date, if the last reported sale price of our common stock has
been at least 130% of the conversion price for the respective Convertible Notes then in effect for at least 20 trading days, including
the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period
ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption, at a redemption price
equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding the redemption date.
No sinking fund is provided for the Convertible Notes. 
 
 
 · Limited investor put rights: Holders of the Convertible Notes have the right to require us to repurchase for cash all or a
portion of their notes at 100% of their principal amount, plus any accrued and unpaid interest, upon the occurrence of certain change
of control transactions or liquidation, dissolution or common stock delisting events. 
 
 
 · Conversion rate increase in certain customary circumstances: In certain circumstances, conversions in connection with a “make-whole
fundamental change” (as defined in the indentures) or conversions of Convertible Notes called (or deemed called) for redemption
may result in an increase to the conversion rate, provided that the conversion rate will not exceed 75.7003 shares, 103.6269 shares and
144.9275 shares of the Company’s common stock per $1,000 principal amount of the 2030 Notes, the 2029 Notes and the 2026 Notes,
respectively (the equivalent of 93,448,048 shares of our common stock based on the aggregate principal amount of Convertible Notes outstanding),
subject to adjustment. 
 
 
 · Seniority and Security: The Convertible Notes rank equal in right of payment and are our senior unsecured obligations. 
 
 
 68 
 

 Table of Contents 
 

 The indentures contain customary terms and covenants,
including that upon certain events of default occurring and continuing, either the Trustee or the respective holders of not less than
25% in aggregate principal amount of the respective series of Convertible Notes outstanding may declare the entire principal amount of
all such respective Convertible Notes to be repurchased, plus any accrued special interest, if any, to be immediately due and payable.
 Capital Resources 
 Our principal source of financing is our operating
cash flow. We believe that current cash flows generated by our operating activities and existing cash balances should be sufficient for
us to fund our operations for the foreseeable future.
 Our ability to satisfy our contractual obligations
as they arise are discussed in the section titled “Contractual Obligations” below.
 Use of Capital 
 Our business does not require us to maintain a significant
cash position. However, certain of our subsidiaries are required to maintain a minimum level of regulatory capital, which at December
31, 2025 was approximately $38.9 million in the aggregate. Notwithstanding these regulatory capital requirements, we expect that our main
uses of cash will be to fund the ongoing operations of our business. We also maintain a capital return program which includes a $0.03
per share quarterly cash dividend and authority to purchase our common stock through April 27, 2028, including purchases to offset future
equity grants made under our equity plans and purchases made in open market or privately negotiated transactions.
 During the year ended December 31, 2025, we repurchased
8,096,862 shares of our common stock under the repurchase program for an aggregate cost of $102.7 million. Currently, $250.0 million remains
under this program for future purchases. In addition, on August 13, 2024, we repurchased all of our then-outstanding Series A Preferred
Stock, which was convertible into 14,750,000 shares of our common stock, from ETFS Capital for aggregate cash consideration of approximately
$143.8 million.
 Contractual Obligations 
 Convertible Notes 
 We currently have $970.0 million in aggregate principal
amount of Convertible Notes outstanding, of which $150.0 million, $345.0 million and $475 million are scheduled to mature on June 15,
2026, August 15, 2029 and August 15, 2030, in respect of the 2026 Notes, the 2029 Notes and the 2030 Notes, respectively, unless earlier
converted, repurchased or redeemed. Conditional conversions or a requirement to repurchase the Convertible Notes upon the occurrence of
a fundamental change may accelerate payment.
 The Convertible Notes require cash settlement
of up to the principal amount, while settlement of the conversion obligation in excess of the aggregate principal amount may be satisfied
in either cash, shares of our common stock or a combination of cash and shares of our common stock. We may settle and/or refinance these
obligations when due.
 See the section titled “Issuance of Convertible
Notes” above for additional information.
 Contingent Consideration 
 Pursuant to the Ceres Purchase Agreement, up to $225.0
million of additional consideration is payable in 2030, contingent upon Ceres achieving a compound annual growth rate (“CAGR”)
in revenue of 12% to 22% during the earnout measurement period of January 1, 2025 through December 31, 2029, as follows:
 
 · If the revenue CAGR for the earnout period is equal to or less than 12%, then the aggregate amount of the earnout consideration
 will be $0; 
 
 
 · If the revenue CAGR for the earnout period is greater than 12% but less than 22%,
then the aggregate amount of the earnout consideration will be pro-rated using straight-line interpolation between $0 and $225.0 million;
and
 
 
 
 · If the revenue CAGR for the earnout period is equal to or greater than 22%, then
the aggregate amount of the earnout consideration will be $225.0 million.
 
 
 We have determined that the earnout should be classified
as contingent consideration as (i) continuing employment is not a condition for payment (except as described below), (ii) non-employee
sellers are entitled to similar payments based upon their relative ownership percentages and (iii) the payment formula described above
is tied to the valuation of the acquired business. Under ASC 805, contingent consideration must be recognized at the acquisition date
as part of the consideration transferred for the acquired business.
 In connection with the Ceres Acquisition, the sellers
established a retention bonus plan for certain Ceres employees pursuant to which the greater of $3.05 million or 10% of any earnout consideration
in excess of $50.0 million will be forfeited by the sellers and paid to participating employees, contingent upon continued employment
through earnout payment date. Any amounts forfeited due to employee attrition revert to the sellers. This compensation will be recognized
over the service period with an equal and offsetting receivable from the sellers.
 
 69 
 

 Table of Contents 
 

 Deferred Consideration–Gold Payments 
 On May 10, 2023, we entered into and closed
on a Sale, Purchase and Assignment Deed to terminate our obligations relating to the contractual gold payments. Pursuant to that agreement,
we paid consideration totaling $136.9 million, including an aggregate of $50.0 million in cash and the issuance of 13,087 shares of Series
C Preferred Stock (valued at $86.9 million, based on the closing price of our common stock on May 9, 2023 of $6.64 per share), which was
convertible into 13,087,000 shares of our common stock. The Series C Preferred Stock was subsequently repurchased on November 20, 2023
as described in “Payable to GBH” below. See Note 12 to our Consolidated Financial Statements for additional information.
 Payable to GBH 
 On November 20, 2023, we repurchased our Series C Preferred
Stock from GBH for aggregate cash consideration of approximately $84.4 million. Under the terms of the transaction, we have paid GBH $69.6
million to date, with the remainder of the purchase price payable on the third anniversary of the closing date. The implied price per
share was $6.02 when considering the interest-free financing element of the transaction.
 Operating Leases 
 Total future minimum lease payments with respect to
our operating lease liabilities were $3.3 million at December 31, 2025. Cash flows generated by our operating activities and existing
cash balances should be sufficient to satisfy the future minimum lease payments. See Note 13 to our Consolidated Financial Statements
for additional information.
 Off-Balance Sheet Arrangements 
 We do not have any off-balance sheet financing
or other arrangements and have neither created nor are party to any special-purpose or off-balance sheet entities for the purpose of raising
capital, incurring debt or operating our business.
 Critical Accounting Policies and Estimates 
 Business Combinations 
 We account for business combinations under the acquisition
method of accounting in accordance with ASC Topic 805, Business Combinations, which requires an allocation of the consideration
paid by us to the identifiable assets, intangible assets and liabilities based on the estimated fair values as of the closing date of
the acquisition. Contingent consideration obligations that are elements of consideration transferred are recognized at the acquisition
date as part of the fair value transferred in exchange for the acquired business and are remeasured to fair value each reporting period.
The excess of the fair value of purchase price over the fair values of the identifiable assets, intangible assets and liabilities is recorded
as goodwill.
 Goodwill and Intangible Assets 
 Goodwill is the excess of the purchase price
over the fair values of the identifiable net assets at the acquisition date. We test goodwill for impairment at least annually and at
the time of a triggering event requiring re-evaluation, if one were to occur. Goodwill is considered impaired when the estimated fair
value of the reporting unit that was allocated the goodwill is less than its carrying value. If the estimated fair value of such reporting
unit is less than its carrying value, goodwill impairment is recognized based on that difference, not to exceed the carrying amount of
goodwill. A reporting unit is an operating segment or a component of an operating segment provided that the component constitutes a business
for which discrete financial information is available and management regularly reviews the operating results of that component.
 We
test goodwill for impairment at the reporting unit level and have determined that we have a single reporting unit, consistent with our
single operating segment. Goodwill is assessed for impairment annually on November 30 th . When performing our goodwill impairment
test, we consider a qualitative assessment, when appropriate, and the market approach and our market capitalization when determining
the fair value of the reporting unit. The results of our most recent analysis indicated no impairment based upon a quantitative assessment.
 Indefinite-lived intangible assets are tested
for impairment at least annually and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable. Indefinite-lived intangible assets are impaired if their estimated fair value is less than
their carrying value. We may rely on a qualitative assessment when performing our intangible asset impairment test. Otherwise, the impairment
evaluation is performed at the lowest level of reasonably identifiable cash flows independent of other assets. The annual impairment testing
date for our intangible assets is November 30 th . The results of our most recent analysis identified no indicators of impairment
to be recognized based upon a quantitative assessment (discounted cash flow analysis) which relied upon significant unobservable inputs
including projected revenue growth rates of 3.0% and a weighted average cost of capital of 10.3%.
 
 70 
 

 Table of Contents 
 

 Investments 
 We account for equity investments that do not
have a readily determinable fair value under the measurement alternative prescribed within Accounting Standards Codification Topic 321,
 Investments – Equity Securities , to the extent such investments are not subject to consolidation or the equity method. Under
the measurement alternative, these financial instruments are carried at cost, less any impairment (assessed quarterly), plus or minus
changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. In
addition, income is recognized when dividends are received only to the extent they are distributed from net accumulated earnings of the
investee. Otherwise, such distributions are considered returns of investment and are recorded as a reduction of the cost of the investment.
See Note 7 to our Consolidated Financial Statements for information.
 Investments in debt instruments are accounted
for at fair value, with changes in fair value reported in other income/(expenses).
 Revenue Recognition 
 We earn a significant portion of our revenues
in the form of advisory fees from our ETPs and recognize this revenue over time, as the performance obligation is satisfied. Advisory
fees are based on a percentage of the ETPs’ average daily net assets. Progress is measured using the practical expedient under the
output method resulting in the recognition of revenue in the amount for which we have a right to invoice.
 We earn management fees in exchange for Ceres providing
investment advisory and other management services to Ceres Farms. Management fees are generally calculated as a stated percentage of members’
capital account balances as of the last day of each calendar quarter, subject to adjustment for any contractual waivers as well as contributions
and redemptions arising in any particular quarter. Management fees are recognized as revenue over time, as the performance obligation
is satisfied.
 We earn performance fees based on a specified
percentage of Ceres Farms’ net profits, subject to contractual fee waivers, high-water marks and loss recovery requirements. Performance
fees are earned only after members have recovered prior losses and applicable thresholds have been met. Performance fee revenues are recognized
when it is probable that a significant reversal of cumulative revenues recognized will not occur, which generally occurs upon the determination
of fund profits that are no longer subject to clawback or reversal under the governing agreements.
 Other revenues are earned from swap providers
associated with certain of our European listed ETPs, the nature of which are based on a percentage of the ETPs’ average daily net
assets. We also earn transaction-based income on flows associated with certain European listed ETPs. There is no significant judgment
in calculating amounts due, which are invoiced monthly or quarterly in arrears and are not subject to any potential reversal. Progress
is measured using the practical expedient under the output method resulting in the recognition of revenue in the amount for which we have
a right to invoice.
WisdomTree, Inc. 10-K

Item 7. Management’s Discussion and Analysis
