WisdomTree, Inc. (WT)

ITEM 2. 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” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. 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.

Executive Summary

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 Partners, LLC (“Ceres”), a leading U.S.-based alternative
asset manager specializing in farmland investments.

As of March 31, 2026, we managed approximately $152.6 billion in AUM.
Our products span a broad range of strategies including equities, commodities, fixed income, leveraged-and-inverse, cryptocurrency, currency,
alternatives, and private assets. 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 of 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.

We were incorporated under the laws of the state
of Delaware on September 19, 1985 as Financial Data Systems, Inc. and were ultimately renamed WisdomTree, Inc. on November 7, 2022.

Acquisition of Atlantic House

On March 13, 2026, we and WisdomTree International Holdings Ltd (the “Buyer”), our wholly-owned subsidiary, entered into a Sale and Purchase Agreement (the “AH Purchase Agreement”) with Atlantic House Holdings Limited, a private limited company incorporated in England and Wales (“Atlantic House”), the shareholders of Atlantic House (the “Sellers”), the EBT Trustee and the Individual Guarantor (each as defined in the AH Purchase Agreement) pursuant to which we agreed to acquire from the Sellers all of the issued and outstanding share capital of Atlantic House (the “AH Acquisition”), subject to the terms and conditions set forth therein.

Atlantic House is a London-based active manager specializing in defined outcome and derivatives-driven investment strategies, with approximately £2.9 billion (approximately $3.9 billion) in assets under management, plus additional revenues from £1.5 billion (approximately $2.0 billion) in assets under advisement across managed models, as well as structuring fees from bespoke investment solutions.

On May 1, 2026, the Buyer completed the AH Acquisition for £150.0 million (approximately $200.0 million) in cash subject to customary post-closing adjustments to cash, indebtedness and working capital.

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Assets Under Management

WisdomTree ETPs

We offer ETPs covering equity, commodities and
currency, fixed income, leveraged-and-inverse, alternatives and cryptocurrency. The chart below sets forth the asset mix of our ETPs at
March 31, 2026, December 31, 2025 and March 31, 2025:

Market Environment

The first quarter of 2026 was characterized
by elevated global volatility and geopolitical tensions, particularly the escalation of conflict in the Middle East. Although the U.S.
and global economies showed resilience, global equity markets declined modestly, reflecting weakness in certain U.S. technology stocks
and a shift in investor sentiment as the quarter progressed. Higher oil prices drove commodities to outperform and contributed to renewed
inflation concerns, leading to a repricing of interest rate expectations. Government bonds experienced a sell-off as yields rose in response
to these inflationary pressures.

During the quarter, the MSCI EAFE Index (local
currency), MSCI Japan Index (local currency) and gold prices increased by 0.3%, 3.0% and 5.5%, respectively, while the S&P 500, MSCI
EMU Index (local currency) and MSCI Emerging Markets Index (U.S. dollar) decreased by 4.3%, 2.4% and 0.1%, respectively. The U.S. dollar
weakened 2.4%, 2.0% and 2.2% versus the euro, British pound and Japanese yen, respectively, during the quarter.

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U.S. Listed ETF Industry Flows

U.S. listed ETF industry net flows were $405.2
billion for the three months ended March 31, 2026. U.S. equity and fixed income gathered the majority of those flows.

Source: Morningstar

European Listed ETP Industry Flows

European listed ETP industry net flows were
$93.6 billion for the three months ended March 31, 2026. Equity and fixed income gathered the majority of those flows.

Source: Morningstar

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Our Operating and Financial Results

We operate as an ETP sponsor and asset manager,
providing investment advisory services globally through our subsidiaries in the U.S. and Europe.

U.S. Listed ETFs

The AUM of our U.S. listed exchange traded funds,
or U.S. listed ETFs, increased from $88.5 billion at December 31, 2025 to $90.9 billion at March 31, 2026 due to net inflows, partly offset
by market depreciation.

European Listed ETPs

The AUM of our European listed (including internationally
cross-listed) ETPs, or European listed ETPs, increased from $53.3 billion at December 31, 2025 to $58.8 billion at March 31, 2026 due
to net inflows and market appreciation.

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Digital Assets

The AUM of our digital assets products increased from $0.8 billion at December
31, 2025 to $0.9 billion at March 31, 2026 due to net inflows. Substantially all Q1 2026 inflows were into the WisdomTree Treasury Money
Market Digital Fund.

Private Assets

Through our acquisition of Ceres on October
1, 2025 (the “Ceres Acquisition”), we acquired $1.8 billion of private assets AUM primarily held within an open-ended investment
fund, Ceres Farms, LLC (“Ceres Farms”). This AUM increased by approximately $0.1 billion to $2.0 billion at March 31, 2026,
due to $75.0 million of inflows and market appreciation.

Consolidated Operating Results

The following table sets forth our revenues
and net (loss)/income for the most recent five quarters.

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Guidance Update 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% (unchanged from our guidance provided last quarter) and takes into consideration the AH
Acquisition, 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, revenues and operating income growth,
margin expansion and our stock price performance in relation to our peers. A range is provided in consideration of uncertain market conditions.

Discretionary Spending

Discretionary spending includes marketing, sales, professional fees, occupancy and equipment,
depreciation and amortization and other expenses. During the three months ended March 31, 2026, our discretionary spending was $18.6 million.
We currently estimate our discretionary spending for the year ending December 31, 2026 to range from $83.0 million to $89.0 million (previously
$80.0 to $86.0 million) taking into consideration the AH Acquisition.

Not included in the guidance above is intangible
amortization arising from the Ceres Acquisition of approximately $5.7 million, of which $1.4 million was recognized during the three months
ended March 31, 2026.

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. Our gross margin
was 84.4% during the three months ended March 31, 2026. For the year ending December 31, 2026, we currently estimate that our gross margin
percentage will be 83.0% to 84.0% (previously 82.0% to 83.0%) an increase of one percentage point reflecting current AUM levels

[Excerpt truncated for page length; source filing is linked above.]

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.

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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:

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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

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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:

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.

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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:

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.

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Marketing and advertising

Marketing and advertising expenses are recorded
when incurred and include the following:

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:

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.

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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.

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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:

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Key Operating Statistics

The following table presents key operating statistics
that serve as indicators for the performance of our business:

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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.

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Year Ended December 31, 2025 Compared to Year Ended December 31,
2024

Selected Operating and Financial Information

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

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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.

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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)

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.

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Year Ended December 31, 2024 Compared to Year Ended December 31,
2023

Selected Operating and Financial Information

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

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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.

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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)

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.

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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.

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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.

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Operating Statistics