Earnings Call Transcript - WT Q4 2025

Operator, Operator

Greetings, and welcome to the WisdomTree Q4 2025 Earnings Call. As a reminder, this conference is being recorded. It is now my pleasure to introduce Jessica Zaloom, Head of Corporate Communications. Please go ahead.

Jessica Zaloom, Head of Corporate Communications

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 and the Risk Factors section of the WisdomTree annual report on Form 10-K for the year ended December 31, 2024, and in subsequent reports filed with or furnished to the Securities and Exchange Commission. WisdomTree assumes no duty and does not undertake to update any forward-looking statements. Now it is my pleasure to turn the call over to WisdomTree CFO, Bryan Edmiston.

Bryan Edmiston, CFO

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 Ceres acquisition, which closed on October 1. 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 UCITS 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 WisdomTree 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. Ceres 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 $0.29 per share. Adjusted net income excludes amortization of intangible assets related to the Ceres acquisition, the remeasurement of the Ceres 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 2 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 recognized 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 million 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 Ceres 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 Ceres on our gross margin, partially offset by incremental costs associated with the anticipated product launches. As AUM continues to grow, we would expect gross margins to trend higher. Third-party distribution expense is 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 million to $157 million as compared to $145 million this past year. This guidance contemplates approximately $7 million 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 and 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.

Robert Lilien, CEO

All right. Thanks, Bryan, and good morning, everyone. 2025 was another strong year for WisdomTree, and more importantly, a year that reinforced the core premise we've been building for several years that consistent organic growth paired with disciplined execution drives margin expansion and meaningful earnings growth. As Bryan mentioned, we delivered $8.5 billion in net flows, translating to an organic growth rate of approximately 8% for the year. And that puts us ahead of many of our public peers, but just as importantly, it came through volatile markets and shifting macro conditions. Our growth held across risk-on rallies, interest rate uncertainty, and equity rotations and Q4 reinforced that momentum. From a profitability standpoint, we expanded operating margins by nearly 300 basis points. We've maintained tight expense discipline while continuing to invest in growth, demonstrating that margin expansion and investment are not mutually exclusive and that balance remains a defining strength of our model. We saw especially strong momentum in our metal strategies, including both physical and overlay products with AUM up 83% and more than $1 billion in net inflows across the suite. Importantly, this traction showed up in both Europe and the U.S., reflecting a global reallocation towards real assets and we believe there is a multiyear growth story unfolding in metals, which currently represents 28.5% of our global AUM as investors continue to seek inflation-sensitive and alternative exposures and our lineup is well positioned to capture that demand. In Europe, we're now seeing the results of years of investment coming fully into view. What began as a diversification effort has become a true growth engine. Our European Defense Fund was one of the most successful launches in firm history and among the top-performing launches industry-wide in 2025, but the story is broader than any single product. Product development remains a core strength of the firm. We launched more than 30 new strategies last year across commodities, thematics, and tactical exposures with successful launches in areas such as rare earths, quantum computing, and nuclear energy. These are not one-off outcomes, they reflect our ability to identify themes early, execute across the platform, and sustain momentum across market cycles. As we look to 2026, our focus remains on delivering differentiated products that perform and persist. Our portfolio solutions business, models, and SMAs continues to be another major growth engine. Model AUA grew to over $6 billion, up from $3.8 billion at the end of '24, driven by both new users and deeper adoption. We're also seeing strong growth in custom model mandates, which enhance stickiness and deepen client relationships. The expansion of our SMA capabilities through Quorus is unlocking a larger and more complex adviser opportunity set. These solutions are helping to stabilize flows in volatile markets and embed us more deeply into adviser workflows. It's no longer about selling a single ticker, it's about portfolio construction, and we're winning in that space. In digital assets, we moved from infrastructure build-out to early monetization. Tokenized AUM reached $770 million by year-end, up from essentially zero just 12 months ago and that reflects real adoption and growing client trust. Our institutional platform, WisdomTree Connect, scaled from 4 onboarded institutions to 29 and the number of wallets holding WisdomTree assets now totals more than 3,500 with engagement steadily improving. The infrastructure is built. The products are live and the focus is now on scaling. Finally, in private markets, our acquisition of Ceres Partners added a long-duration diversifying revenue stream to the firm. And since closing in early October, AUM has grown to about $1.9 billion, including 8% annualized organic growth in the fourth quarter. It's a strong early outcome and one that's already expanding the types of conversations and clients that we're engaging with. So stepping back across public markets, digital assets, and private markets, we're building a broader and more powerful business. As we enter 2026, several growth engines are already in motion. Our ETF platform continues to deliver consistent organic growth. Europe has scaled into a meaningful contributor, models, and SMAs are embedded deeper into adviser workflows, tokenization is generating real flows, and private markets are expanding our reach and revenue mix. We're seeing broad-based traction across asset classes, delivery channels, and client segments, and that balance creates durability and durability is what compounds over time. We are clearly executing against the strategy that is working. And with that, I'll turn it over to Jono.

Jonathan Steinberg, CEO

Thank you, Jarrett. Hello, everyone. I'll be brief today. You've heard the story today from both Bryan and Jarrett: strong results, improving guidance, clear vision and disciplined execution. What you're seeing is our strategy playing out as intended. Organic growth and operating discipline working in tandem having delivered margin expansion, higher earnings per share, and sustained momentum across market regimes. WisdomTree is the strongest it's ever been. We've reached new levels of scale, not just in AUM, but in capabilities, in client reach, and in delivery. We're diversified across asset classes, geographies, and channels, and that diversification is powering resilience and growth at the same time. Europe, models, tokenized assets, and private markets, these aren't experiments anymore. They are real businesses contributing real flows and creating real value for shareholders. With strong and improving guidance from Bryan, it's clear that we're entering 2026, not just with confidence, but with conviction and momentum. We are building something durable and something compoundable. Today's results speak for themselves, but still, I'd characterize it anyway as the beginning of the next chapter at WisdomTree. With that, I want to thank you for your attention today. Operator, let's open up the call for questions.

Operator, Operator

And our first question comes from the line of Mike Grondahl with Northland Securities.

Mike Grondahl, Analyst

Congratulations on the December quarter and January so far, too. One question. When you look at Slide 5, what do you see as the biggest maybe one or two opportunities for WisdomTree in '26 and '27? Like what's the low-hanging fruit for some market share you should be taking on that slide?

Jonathan Steinberg, CEO

Thanks, Mike. Market share, I guess I'll turn it over to Jarrett or to Jeremy to make initial comments.

Jeremy Schwartz, Analyst

We are experiencing remarkable success in various areas. Currently, I'm in Milan, where our European team has taken the lead in multiple sectors, particularly with commodities and thematics. A significant example is the European Defense Fund, which has become highly successful and is influencing other thematic areas. There's notable interest in industrial metals and rare earths, which have become key geopolitical factors. Our rare earth fund, which was at $100 million in November, has now reached $700 million, and our combined rare earth and strategic metals funds total about $1.4 billion, demonstrating market-leading performance. These themes are critical given the geopolitical tensions and rare earth supply chain issues, and we are very optimistic about our leadership in these thematics. The thematic portfolio in Europe is expanding, and in January alone, we captured 25% of all flows into thematics, indicating a promising opportunity for market share growth. In the U.S., our capital fishing family offers unique exposure to the commodities market. With recent fluctuations in gold and silver prices, many investors have been underexposed to gold. We're finding ways to assist clients in increasing their holdings in these precious metals, which we see as beneficial. Jarrett mentioned that there's been $1 billion invested in our capital fishing gold portfolios in the U.S. This represents a significant market share with innovative strategies, especially since the average U.S. investor only holds 2% in commodities, while a neutral position in commodities, particularly gold, would suggest a 12% allocation. U.S. investors remain underallocated in this space, and we believe there are further opportunities ahead, along with many creative solutions.

Robert Lilien, CEO

And I'd just jump in, this is Jarrett, just adding additional thoughts. I mean, really, look back, we continue to successfully execute against what's been a multiyear strategy that's working. We've got a differentiated asset mix. But in that, we've got an ETF product suite that is really broad. It's very deep, and we think has the ability to win share and win business in any market environment. We've got the models business, SMAs, direct indexing, we're gaining share there. We look to gain share in tokenization in private markets. And as we said in the prepared remarks, we've got a growth engine that's firing on many different cylinders, and really gaining share across the board. But this isn't a one-quarter event. This has been a multiyear event, and we just keep doing it quarter after quarter.

Mike Grondahl, Analyst

Yes, you're definitely on a roll. I mean, just look at the AUM. Second question is just, hey, that discretionary spending $80 million to $86 million, what are the major categories that's going to? Can you kind of help us think about those investments?

Bryan Edmiston, CFO

Yes. So it's Bryan. I would say it's largely driven by marketing and sales-related expenses. It's really tied into our growth initiatives. We're looking to accelerate momentum on the back of our record AUM, our 8% organic growth, and a strong start to 2026. The number is up versus last year, but we continue to manage our expenses with an eye towards maintaining incremental margins north of 50%. So notwithstanding the increase in guidance, we should see further margin expansion versus 2025.

Operator, Operator

The next question comes from the line of George Sutton with Craig-Hallum.

George Sutton, Analyst

Great job on the margins. So I wanted to ask you, Bryan, when we look at the $0.29 for the quarter, and we obviously look out to Q1 where the comp ratio may be a little higher. But truth be told, we did not have $0.29 quarter on our bingo card for the next two years. So can you just give us a sense, are we talking about a higher start base pretty consistently going forward?

Bryan Edmiston, CFO

Yes, I would say so, absolutely. What drove our stronger performance compared to analysts' expectations was primarily the comp ratio, which came in at 28% this past quarter. Our projected range for next year is 26% to 28%, indicating a slight decrease of 1 to 2 percentage points from where the market expected and from our comp guidance in the fourth quarter. Additionally, other revenue has increased; last quarter, we recorded about $11 million, and now we are at $13 million, driven by higher assets under management in Europe and increased turnover, generating more transaction fees that boost our revenue base. Part of our better results this quarter may also be attributed to Ceres' performance fee, which was about $2 million above our baseline expectations. Overall, I believe our guidance and current assets under management of approximately $160 billion position us well for more strong quarters ahead.

Robert Lilien, CEO

It's Jarrett, just jumping in one more time. When I look at consensus estimates over the last number of years, we leave it up to the Street, to the analysts to come up with their own growth forecast, but we always seem to be underestimated on our flow growth and once again, looking back at last consensus, I think there was sort of $5 billion of net inflow growth where we've already gotten $2 billion this year. So just another area where we're consistently underestimated.

George Sutton, Analyst

Jarrett, one question for you specifically. So the tokenization trend is becoming massive and you've been way in front of that. You mentioned it is now time for us to scale. Just curious how you do plan to scale, particularly in the light of many other folks sort of joining the party? Are some of them going to join you from a partner/customer perspective? Or how do we think forward there?

Robert Lilien, CEO

Well, let's let Will have a shot at that one first. Will, do you want to take it?

William Peck, Analyst

Yes, sure. It's Will here. So yes, we absolutely do expect to scale going forward. I'd say to your questions, we see distribution through really three channels: one is direct to retail, which for us would be WisdomTree Prime; the second would be WisdomTree Connect direct to business; and the third, which is really evolving, is more of a platform sale, also a sale to self-hosted wallets. So as a lot of people are entering the space, we're in a lot of active conversations with whether it's other fintech apps, whether it's kind of software service providers, broker-dealers around making our products and services available through their platforms as well. And that's some of the beauty of how we've built this, right? We actually have the capacity to serve retail, which a lot of the other firms in the tokenization space just do not have that capacity. They've been focused on offshore exempt products that have really high minimums, some north of $1 million. The minimum R&R in money market funds is the dollar. So we're really well served to serve retail especially, including through these platform relationships. And that's part of why we've kind of shifted how we're disclosing funded account metrics. So we're talking about funded wallets now. I mean the vast majority of that is WisdomTree Prime-funded wallets. But especially in 2026 and going forward, we expect that mix to evolve where a lot of the wallets are going to be holding our products are going to come through other channels and other platforms. So all told, we think that gives us an opportunity to scale really quickly going forward. It is just kind of a nice reflection of the way we've built our infrastructure.

Jonathan Steinberg, CEO

Let me just share one thing. In the past, particularly 10 or 15 years ago, analysts often asked me about the next top fund. If I were to make a prediction, I wouldn't be surprised if, in the next 3 years, our tokenized money market fund becomes the largest fund in WisdomTree's portfolio. But I'm sorry to interrupt you, George, please continue.

George Sutton, Analyst

Well, actually, I do have a specific last question for you. I was a little stunned at the price paid for Innovator Capital. They had $30 billion in assets and got paid $2 billion for them, not terribly distant from where you trade on a substantially larger asset base. And I'm just wondering if part of the growth strategy for you may look into this outcome-based ETF/Modern Alpha, I know you've got a couple of funds there, but what is the plan in that market specifically?

Jonathan Steinberg, CEO

As Jarrett mentioned, we have an ambitious fund launch strategy planned for the coming year. We have several option-based strategies that are performing quite well, and we should be able to drive significantly more adoption through those. We are definitely looking to expand further in that area, as we see it as a great opportunity, and others do too. Jeremy, is there anything you would like to add?

Jeremy Schwartz, Analyst

Yes. I mean the WTPI is our equity premium income fund in the U.S., a $400 million fund. We've taken steps to improve performance and distribution and characteristics. We think that fund does have a lot of potential. But I would say, like Jono said, very aggressive plan for that space, and we're going to do a lot more.

Operator, Operator

The next question comes from the line of an analyst with Raymond James.

Unknown Analyst, Analyst

Does the macroeconomic volatility generally benefit WisdomTree's business as most products are diversified across asset classes? Or is it more dependent on specific themes that are present, such as gold and commodity prices, which we've seen this year?

Jonathan Steinberg, CEO

Jeremy, do you want to start there?

Jeremy Schwartz, Analyst

Yes. A major theme you've heard is the breadth of our funded exposures and how well diversified we've become. Looking back 10 years, currency-hedged Europe and Japan made up 80% of our business. It was a concentrated world where only a strong dollar in those regions drove our key performance. Today, we have a diverse range of exposures. We are seeing growth across value and various thematics that have become significant for us, including some of the largest growth companies. We launched a quantum computing fund that quickly raised $150 million. Additionally, we have substantial expansion plans in areas like AI, along with our traditional value funds that range from small caps to quality and various marketing environment-type funds. We are well positioned for both strong and weak dollar environments. The macro uncertainty has caused major shifts in commodities, and we are in an excellent position to navigate that. We are proud of the diversification we've achieved.

Robert Lilien, CEO

And I think that's another point that gets missed a lot is just how well diversified we are and how well suited we are for almost any market environment and again, we haven't just proven that in one quarter, that's been something you've been able to look at and witnessed over the last 5 to 10 years.

Unknown Analyst, Analyst

Is WisdomTree's approach to growing the digital asset base, is it more about educating people about digital assets into accreditation? Is that a big part of the strategy? Or are you more focused on capturing clients that are already familiar with these types of assets and services?

Jonathan Steinberg, CEO

Will?

William Peck, Analyst

Yes, it's really the latter right now. I mean, I would say we are serving people who have decided to operate on-chain, which includes retail and institutional clients. The number of people making that decision is growing rapidly. The GENIUS Act marks a significant milestone in the U.S. as more individuals gain regulatory clarity around stablecoins and the ability to utilize them and wallets in the future. To effectively use our products, you need a wallet. With more people adopting wallet-based infrastructure for financial services to access stablecoins and tokenized funds, as well as other real-world assets, our potential client base continues to expand. WisdomTree Prime offers an excellent experience that allows retail users to fund with both fiat and stablecoins. We recently introduced new updates allowing New York users to fund with stablecoins for the first time, which enables more individuals to access the products we provide.

Unknown Analyst, Analyst

Okay. And if I could squeeze one more in. When building out new products, do you generally utilize existing expertise and staff members? Or do you tend to seek out more outside talent when looking to build on your strategies?

Jonathan Steinberg, CEO

I'll take this. Generally, there is significant leverage in the business, primarily utilizing our existing talent. We have a robust research and product development team that covers all asset classes. We are capitalizing on the core strengths of the firm. However, I want to mention that we continually invest in our capabilities. One of our investments from late last year was Quorus, which hasn't received much attention. We also invested in AlphaBeta, an Israeli AI firm that is assisting us with product development, and we recently launched a fund based on that. It’s definitely a combination of elements, but it's highly scalable. Our headcount has remained very disciplined.

Operator, Operator

The next question comes from the line of Keith Housum with Northcoast Research.

Keith Housum, Analyst

It's been a quarter now with Ceres under your belt a little bit more on that. I guess perhaps you could talk a little bit about lessons learned so far through the acquisition and opportunities going forward to expand their distribution to help grow their AUM even further?

Jonathan Steinberg, CEO

I'll start, but Jarrett, please jump in. We've demonstrated throughout our history that mergers and acquisitions have been very successful for us. This acquisition was very specific, reflecting our strong desire for this particular asset class. The integration process went exceptionally well, and the way we structured the transaction seemed to work well for both the seller and WisdomTree. It's been a very smooth integration, and I wouldn't term it as lessons learned; rather, it has strengthened our confidence in our ability to execute strategic mergers and acquisitions. Jarrett, is there anything you'd like to add or Jeremy?

Robert Lilien, CEO

Yes. I guess I'd add, it's not so much lessons learned. So far, it's confirmation of what we thought. What a great business, what a great fit with us, what a great team. They've averaged 6% to 7% net inflows over the past 10 years. They've had zero years of net outflows in almost 20 years where they've been operating. We see definite synergies both with distribution and product. We don't give out growth forecast, but we believe that we should be able to do better than the historical averages because of that confirmation of just what a great business and what a great fit this is for us.

Keith Housum, Analyst

Great. And a second question for you. In terms of the digital asset strategy, nice growth in the third-party WisdomTree Connect users from the beginning of year to the end of the year. Can you just give us an example of perhaps who some of those users would be just in terms of the type of businesses? So that we can better kind of visualize who the end customer is here.

Jonathan Steinberg, CEO

Will?

William Peck, Analyst

Yes, definitely. We're currently observing four main types of use cases. First, regarding the money market fund, it serves as an eligible reserve asset under the GENIUS Act for stablecoin reserves. We have stablecoin issuer clients, and we believe this area will continue to expand. We're incorporating WTGXX into our reserves. The second use case involves businesses utilizing stablecoins in their treasury management workflows, allowing them to invest in WTGXX as a yield-generating asset. The third use case pertains to using it as a collateral instrument, with discussions around collateral mobility in tokenization, enabling faster movement of collateral. We’re seeing investors hold WTGXX for this purpose. Finally, there’s a broader trend of on-chain investing, where numerous investors in the crypto DeFi space seek access to real-world assets as part of their investment strategies. We're well-positioned to meet these needs, offering a wide variety of investment opportunities beyond just money market funds, including equity and private credit exposure through our platform. So, these are the four key use cases we're currently observing.

Operator, Operator

This will conclude the question-and-answer session. I would like to turn the call back over to Mr. Steinberg for closing remarks.

Jonathan Steinberg, CEO

Thank you. As I mentioned earlier, it seems that WisdomTree is entering a new phase in our history, with new scale and capabilities. The investments we've made over the past 5 to 7 years are beginning to generate shareholder momentum. I would like to shift the focus to valuation. WisdomTree appears to be undervalued in the market. There are several aspects I want to highlight. First, the diverse AUM mix makes WisdomTree more resilient than other asset managers. We are demonstrating potential upside in recent market conditions, particularly in January and year-to-date, while also having downside protection with our range of commodities, short duration fixed income, digital assets, and various equities as Jarrett mentioned earlier. Our record of strong organic growth and margin expansion should translate to multiple expansion, as WisdomTree is currently trading 7 or 8 times below the S&P 500 based on updated AUM figures. Given our outlook and footprint, it doesn't seem justified for us to trade at a lower multiple than the market. WisdomTree's presence in global ETFs, leadership in tokenization, and growing involvement in differentiated private assets indicate we have only begun to unlock our potential. We anticipate significant valuation growth moving forward. Over the past 5 years, we have been a leader, or the leading firm, in total returns for stockholders within our traditional asset category, demonstrating substantial improvements compared to other asset managers. As our market cap approaches $2.5 billion and beyond, I hope to attract more analysts to help us articulate our story, as we are currently an overlooked narrative in the market. In the digital assets space, several pure-play firms have launched with remarkable valuations. While I am not commenting on the accuracy of their valuations, our vertically integrated digital asset business, which includes not just funds but also our tokenization platform and digital treasury operations, is being significantly undervalued by the market at present. As I mentioned earlier, I wouldn't be surprised if our tokenized money market fund becomes the largest fund within WisdomTree, given its growth from nearly nothing to $700 million in AUM since 2025. If that trend continues, we hope to draw greater investor attention to how well-positioned we are in the digital asset sector. I hope our shareholders recognize the efforts we are making, and analysts should closely examine the WisdomTree story. It certainly feels like our best days are still ahead. Thank you, everyone.

Operator, Operator

Thank you. This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.