WisdomTree, Inc.

Greetings and welcome to the WisdomTree Q4 2025 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your cell phone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Jessica Zaloum, Head of Corporate Communications. Please go ahead.

Good morning. Before we begin, I would like to reference our legal disclaimer available in today's presentation. This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about our ability to achieve our financial and business plans, goals, and objectives, and drive stockholder value. A number of factors could cause actual results to differ materially from the results discussed in forward-looking statements, including but not limited to the risks set forth in this presentation in the risk factors section of the Wisentrie Annual Report on Form 10-K for the year ended December 31st, 2024, and in subsequent reports filed with our furnished to the Securities and Exchange Commission. Wisentrie assumes no duty and does not undertake to update any forward-looking statements. Now, it is my pleasure to turn the call over to Wisentree CFO, Brian Edmondson.

Thank you, Jessica, and good morning, everyone. I'll begin by covering our fourth quarter results, along with updates to our forward-looking guidance for 2026, before turning the call over to Jarrett and Jono for additional updates on our business. Our assets under management ended the year at $144.5 billion, a record up 5% from the third quarter and over 30% year over year. While we experienced modest outflows in the fourth quarter, we generated $8.5 billion of inflows for the year, representing an 8% organic growth rate. Our AUM also benefited from positive market movement and the Cirrus acquisition, which closed on October 1st. This acquisition marked an important step in our expansion into private assets and further diversified our AUM mix, through exposure to U.S. farmland, one of the largest and least penetrated real asset classes. We are now managing almost 2 billion in farmland-based strategies, and the transaction has expanded both our annual revenue capture and operating margins by more than 200 basis points. Looking more broadly at our AUM performance, growth was broad-based and well-diversified across regions and asset classes. Our European-listed Products delivered a very strong year, with AUM increasing from 30.7 billion to a record 53.3 billion, supported by more than 6 billion of net inflows and a favorable market environment. European inflows were led by 4.3 billion into our usage franchise, spearheaded by the successful launch of our European Defense ETF earlier this year, while our commodity products generated approximately 1 billion of inflows. In the U.S., AUM increased to a record $88.5 billion, with $1.4 billion of net inflows for the year, driven primarily by our U.S. equity offerings alongside favorable market conditions. Our digital assets platform continued to gain traction, with AUM reaching approximately $770 million at year-end. Growth was led by strong inflows into our digital money market fund, largely through WisdenTree Connect, reflecting continued progress across our digital platform. Overall, record AUM, strong organic growth, disciplined execution, and thoughtful capital deployment drove approximately 300 basis points of operating margin expansion during the year. Taken together, we believe these results position us well to build on our momentum and continue delivering sustainable growth and long-term shareholder value. Global AUM today stands at 160.8 billion, up 16 billion or 11% from year end, driven by favorable market conditions, and almost 2 billion of net inflows, a very strong start to the year. Next slide. Adjusted revenues were 147.4 million during the quarter, an increase of 17% from the third quarter, and up approximately 33% versus the prior year quarter, driven by higher average AUM. Cirrus contributed 12 million of revenues this quarter, of which 7.1 million was derived from performance fees. These performance fees were driven by price appreciation on farmland under management, along with favorable developments related to the solar portfolio. Our other revenue continues to grow, recognizing 12.7 million this quarter as compared to 11 million in the prior quarter. This increase was largely driven by higher European listed AUM as approximately 70% of these revenues are asset-based. While difficult to forecast, we would suggest the magnitude of other revenue generated in this most recent quarter serves as a fair approximation of what we could expect going forward, assuming current European AUM levels. Further increases in our European listed AUM should drive this revenue higher. On a year-over-year basis, our adjusted revenues have grown 15.4%, while our adjusted operating margin has expanded almost 300 basis points, finishing the year at 36.5%. Adjusted net income for the quarter was 41.2 million, or 29 cents per share. Adjusted net income excludes amortization of intangible assets related to the CSRS acquisition, the remeasurement of the CSRS earn out, and other items. Next slide. Now a few comments on our 2026 guidance. We are forecasting our compensation to revenue ratio to range from 26 to 28%, representing a two percentage point downward shift from our prior year guidance. This update takes into consideration planned hires, as well as compensation adjustments and the annualization of hires made during 2025, and further demonstrates the operating leverage in our business model as we continue to scale. The range reflects variability in incentive compensation, driven by factors including the magnitude of our flows, revenue, operating income and margin targets, and our share price performance in relation to our peers. As a reminder, compensation expense is seasonally higher in the first quarter as we recognize payroll taxes, benefits, and other items related to year-end bonuses. As a result, we estimate our first quarter comp to revenue ratio to be approximately 30% before stepping down over the course of the year and landing within the 26 to 28% overall guidance range. Our discretionary spending guidance is forecasted to range from $80 to $86 million compared to $71 million this past year. Primary drivers of the increase include incremental marketing spend, higher sales and distribution-related expenses, as well as the impact of the Cirrus acquisition and additional factors. Our gross margin guidance is estimated to range from 82% to 83%, compared to 81.9% this past year. This range reflects revenue based on current AUM levels and the positive impact of Cirrus on our gross margin partially offset by incremental costs associated with anticipated product launches. As AUM continues to grow, we would expect gross margins to trend higher. Third-party distribution expenses anticipated to range from $17 million to $19 million compared to 16 million this past year, driven by higher AUM on these platforms. Interest expense is forecasted to be approximately 40 million this year, taking into consideration the retirement of a substantial portion and potentially all of our convertible notes maturing in June of 2026. Interest expense should be approximately 10.5 million for each of the first and second quarter, declining to roughly 9.5 million per quarter in the second half of the year. Interest income is estimated to be approximately $8 million in 2026, driven by the magnitude of our interest earning assets and forecasted interest rates. We expect those assets to decline in the second half of the year following the retirement of our 2026 notes. Our estimated adjusted tax rate is anticipated to be approximately 24%, aligned with our tax rate this past year. And we anticipate our weighted average diluted shares to range from 152 to 157 million as compared to 145 million this past year. This guidance contemplates approximately 7 to 12 million of incremental shares associated with our convertible notes, assuming a stock price approximating recent levels. As a reminder, an illustration is included within our earnings presentation to assist in quantifying the incremental shares associated with our convertible notes going forward. That's all I have. I will now turn the call over to Jarrett.