WisdomTree Reports 22.5% Revenue Growth to $427.7 Million, Net Income Declines

WisdomTree, Inc. reported a significant increase in its financial performance for the fiscal year ended December 31, 2024, with total operating revenues reaching $427.7 million, a 22.5% increase from $349.0 million in 2023. This growth was primarily driven by higher average assets under management (AUM), which rose to approximately $109.8 billion, up from $100.1 billion the previous year. The company’s net income, however, decreased to $66.7 million from $102.5 million in 2023, reflecting a loss on extinguishment of convertible notes and a civil penalty related to an SEC settlement.

The company experienced notable changes in its revenue streams, with advisory fees increasing by 18.6% to $395.4 million, while other revenues more than doubled to $32.4 million, largely due to contributions from European listed ETPs and legal expenses expected to be covered by insurance. Operating expenses also rose by 11.1% to $290.4 million, driven by higher compensation costs, increased headcount, and marketing expenses. The termination of a contractual gold payment obligation in May 2023 contributed to a reduction in expenses related to gold payments.

Strategically, WisdomTree has made significant advancements in its product offerings and market presence. The company launched 14 new European listed ETPs and two new U.S. listed ETPs during the year, expanding its product range across various asset classes. Additionally, the launch of its blockchain-native digital wallet, WisdomTree Prime, and the institutional platform WisdomTree Connect, positions the company as a leader in blockchain-enabled financial services. As of December 31, 2024, WisdomTree Prime was available in 45 U.S. states, covering approximately 80% of the U.S. population.

Operationally, WisdomTree reported an increase in its employee headcount from 303 to 313, reflecting its growth strategy. The number of advisors utilizing the company’s model portfolios surpassed 2,500, indicating strong engagement and adoption of its advisory solutions. The company also maintained a solid market position, ranking as the 15th largest ETP sponsor globally based on AUM. Despite facing challenges such as market volatility and regulatory scrutiny, WisdomTree remains optimistic about its growth trajectory, particularly in the digital assets space, and anticipates continued organic inflows and AUM growth in 2025.

Looking ahead, WisdomTree's management expressed confidence in its long-term growth strategy, emphasizing the importance of expanding its digital assets offerings and enhancing client engagement. The company plans to leverage its innovative product development and strategic partnerships to drive sustainable growth and create long-term value for its shareholders.