WisdomTree Q1 Net Loss, AUM Up 5.6% and Atlantic House Acquisition
WisdomTree posted a $23.1 million Q1 2026 net loss (adjusted net income $40.6 million), with operating revenues up 8.2% to $159.5 million and AUM rising 5.6% to $152.6 billion on $5.9 billion of net inflows. The company issued $603.8 million of convertible notes, closed the Atlantic House acquisition to expand active ETFs and declared a $0.03 dividend.
1. Q1 Financial Performance
WisdomTree reported a $23.1 million net loss in Q1 2026, with adjusted net income of $40.6 million after a $62.3 million loss on extinguished convertible notes. Operating revenues rose 8.2% to $159.5 million, and average advisory fees ticked up one basis point to 0.36%.
2. Asset Growth and Inflows
Ending AUM reached $152.6 billion, a 5.6% increase from the prior quarter, driven by $5.9 billion of net inflows concentrated in international developed equity, fixed income, and leveraged/inverse products in U.S. and European markets. Gross margin improved to 84.4%, while operating income margin slipped to 37.2% due to higher compensation.
3. Note Issuance and Liability Management
The firm issued $603.75 million of 4.50% convertible senior notes due 2031 with a $21.58 conversion price. Concurrent exchanges repurchased $75.0 million of 2026 notes for 6.81 million shares and $275.0 million of 2029 notes for $302.7 million cash and 4.19 million shares.
4. Atlantic House Acquisition
WisdomTree completed its acquisition of London-based Atlantic House, enhancing its active ETF and defined outcome strategy capabilities. The deal strengthens product diversification and supports the firm’s long-term growth platform by integrating new investment solutions.