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GREENWICH, Conn.--(BUSINESS WIRE)--W. R. Berkley Corporation (NYSE: WRB) today announced the appointment of Kirk A. Parker as president of Berkley North Pacific. The appointment is effective immediately.

Mr. Parker has nearly 30 years of leadership experience in the property and casualty insurance industry focused on optimizing operations and accelerating profitable growth across distribution networks. He most recently served as senior vice president and regional president at a large, national multi-line insurer.

Commenting on the appointment, W. Robert Berkley, Jr., chairman, chief executive officer and president, of W. R. Berkley Corporation, said: "We are pleased to welcome Kirk as president of Berkley North Pacific. He is a proven insurance leader with broad operating experience and a strong track record. We look forward to him working closely with our agents and associates as Berkley North Pacific.”

Berkley North Pacific provides tailored insurance solutions through empowered, local decision-makers through a select group of independent agents in Idaho, Montana, Oregon, Utah, and Washington. For further information about the products and services available from Berkley North Pacific, please visit www.berkleynpac.com.

Founded in 1967, W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates worldwide in two segments of the property casualty insurance business: Insurance and Reinsurance & Monoline Excess. For further information about W. R. Berkley Corporation, please visit www.berkley.com.

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NEW YORK--(BUSINESS WIRE)--WisdomTree, Inc. (NYSE: WT), a global financial innovator, today reported financial results for the first quarter of 2026.

($23.1) million of net loss ($40.6(1) million of net income, as adjusted), including a loss on extinguishment of convertible notes of $62.3 million, comprised of a loss on extinguishment of $16.9 million associated with the repurchase of $75.0 million in aggregate principal amount of our 3.25% convertible senior notes due 2026 (the “2026 Notes”) and a $45.4 million inducement expense related to the repurchase of $275.0 million in aggregate principal amount of our 3.25% convertible senior notes due 2029 (the “2029 Notes”). See “Non-GAAP Financial Measurements” for additional information.

$152.6 billion of ending AUM, an increase of 5.6% from the prior quarter arising primarily from net inflows and market appreciation.

$5.9 billion of net inflows, primarily driven by inflows into our international developed equity, fixed income and leveraged and inverse products across the United States and Europe.

0.36% average advisory fee, a 1 basis point increase from the prior quarter.

0.42% revenue yield(2), unchanged from the prior quarter.

$159.5 million of operating revenues, an increase of 8.2% from the prior quarter due to higher average AUM and higher other revenues attributable to our European listed exchange-traded products (“ETPs”).

84.4% gross margin(1), a 1.2 point increase from the prior quarter primarily due to higher revenues.

37.2% operating income margin (39.3%(1) as adjusted), a 3.3 point decrease (2.4 point decrease, as adjusted) from the prior quarter primarily due to seasonally higher compensation expense.

$603.75 million issuance of convertible senior notes due 2031 (the “2031 Notes”), bearing interest at a rate of 4.50% and issued with a conversion price of $21.58 per share. Concurrent with the issuance of the 2031 Notes, we completed separate, privately negotiated transactions with certain holders of our outstanding 2026 Notes (conversion price of $11.04 per share) to exchange $75.0 million in aggregate principal amount of the 2026 Notes for approximately 6.81 million shares of our common stock and with certain holders of our outstanding 2029 Notes (conversion price of $11.82 per share) to exchange $275.0 million in aggregate principal amount of the 2029 Notes for approximately $302.7 million in cash and approximately 4.19 million shares of common stock.

$0.03 quarterly dividend declared, payable on May 27, 2026 to stockholders of record as of the close of business on May 13, 2026.

Update from Jarrett Lilien, WisdomTree President and COO

Update from Jonathan Steinberg, WisdomTree CEO

OPERATING AND FINANCIAL HIGHLIGHTS

Three Months Ended

Mar. 31,

2026

Dec. 31,

2025

Sept. 30,

2025

June 30,

2025

Mar. 31,

2025

Consolidated Operating Highlights ($ in billions):

AUM—end of period

$

152.6

$

144.5

$

137.2

$

126.1

$

115.8

Net inflows/(outflows)

$

5.9

$

(0.3

)

$

2.2

$

3.5

$

3.1

Average AUM

$

154.7

$

140.7

$

130.8

$

119.2

$

114.6

Average advisory fee

0.36%

0.35%

0.35%

0.35%

0.35%

Revenue yield(2)

0.42%

0.42%

0.38%

0.38%

0.38%

Consolidated Financial Highlights ($ in millions, except per share amounts):

Operating revenues

$

159.5

$

147.4

$

125.6

$

112.6

$

108.1

Net (loss)/income

$

(23.1

)

$

40.0

$

19.7

$

24.8

$

24.6

Diluted (loss)/earnings per share

$

(0.17

)

$

0.28

$

0.13

$

0.17

$

0.17

Operating income margin

37.2%

40.5%

36.3%

30.8%

31.6%

As Adjusted (Non-GAAP(1)):

Operating revenues, as adjusted

$

159.5

$

147.4

$

125.6

$

112.6

$

108.1

Gross margin

84.4%

83.2%

82.2%

81.1%

80.8%

Net income, as adjusted

$

40.6

$

41.2

$

34.5

$

25.9

$

23.0

Diluted earnings per share, as adjusted

$

0.27

$

0.29

$

0.23

$

0.18

$

0.16

Operating income margin, as adjusted

39.3%

41.7%

38.3%

32.5%

31.6%

RECENT BUSINESS DEVELOPMENTS

WISDOMTREE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(Unaudited)

  Three Months Ended

Mar. 31,

2026

Dec. 31,

2025

Sept. 30,

2025

June 30,

2025

Mar. 31,

2025

Operating Revenues:

Advisory fees

$

134,880

$

122,712

$

114,485

$

103,241

$

99,549

Management fees

5,231

4,908

—

—

—

Performance fees

2,955

7,105

—

—

—

Other revenues

16,404

12,709

11,131

9,380

8,533

Total revenues

159,470

147,434

125,616

112,621

108,082

Operating Expenses:

Compensation and benefits

47,517

37,273

33,791

32,827

33,788

Fund management and administration

24,880

24,830

22,353

21,252

20,714

Marketing and advertising

5,392

5,613

4,788

5,330

4,813

Sales and business development

4,197

4,045

3,943

4,232

4,137

Professional fees

3,308

3,596

3,505

3,177

2,782

Occupancy, communications and equipment

1,935

1,892

1,601

1,559

1,482

Depreciation and amortization

2,096

2,043

615

580

540

Third-party distribution fees

5,795

4,772

3,977

4,083

3,112

Acquisition-related costs

1,933

317

2,409

1,967

—

Other

3,067

3,306

2,980

2,982

2,552

Total operating expenses

100,120

87,687

79,962

77,989

73,920

Operating income

59,350

59,747

45,654

34,632

34,162

Other Income/(Expenses):

Interest expense

(11,023

)

(11,023

)

(8,466

)

(5,490

)

(5,441

)

Interest income

2,592

2,965

4,015

2,090

1,897

Loss on extinguishment of convertible notes

(62,302

)

(833

)

(13,011

)

—

—

Remeasurement of contingent consideration

(2,562

)

(710

)

—

—

—

Other losses and gains, net

(637

)

317

1,325

638

(250

)

(Loss)/income before income taxes

(14,582

)

50,463

29,517

31,870

30,368

Income tax expense

8,549

10,437

9,816

7,093

5,739

Net (loss)/income

$

(23,131

)

$

40,026

$

19,701

$

24,777

$

24,629

(Loss)/earnings per share—basic

$

(0.17

)

$

0.29

$

0.14

(3)

$

0.17

$

0.17

(Loss)/earnings per share—diluted

$

(0.17

)

$

0.28

$

0.13

(3)

$

0.17

$

0.17

Weighted average common shares—basic

138,005

136,340

139,584

143,076

142,580

Weighted average common shares—diluted

138,005

143,314

150,675

146,640

146,545

As Adjusted (Non-GAAP(1))

Total revenues

$

159,470

$

147,434

$

125,616

$

112,621

$

108,082

Total operating expenses

$

96,752

$

85,936

$

77,553

$

76,022

$

73,920

Operating income

$

62,718

$

61,498

$

48,063

$

36,599

$

34,162

Income before income taxes

$

54,654

$

53,840

$

45,318

$

33,798

$

30,947

Income tax expense

$

14,061

$

12,605

$

10,842

$

7,935

$

7,933

Net income

$

40,593

$

41,235

$

34,476

$

25,863

$

23,014

Earnings per share—diluted

$

0.27

$

0.29

$

0.23

$

0.18

$

0.16

Weighted average common shares—diluted

152,372

143,314

150,675

146,640

146,545

QUARTERLY HIGHLIGHTS

Operating Revenues

Operating revenues increased 8.2% from the fourth quarter of 2025, driven by higher average AUM, a higher average advisory fee and increased other revenues attributable to our European listed ETPs, partly offset by lower performance fees. Operating revenues increased 47.5% from the first quarter of 2025, driven by higher average AUM, a higher average advisory fee, revenues arising from our acquisition of Ceres Partners, LLC (the “Ceres Acquisition”) and increased other revenues from our European listed ETPs. Our average advisory fee was 0.36% for the first quarter of 2026, compared to 0.35% for both the first and fourth quarters of 2025. Operating Expenses

Operating expenses increased 14.2% from the fourth quarter of 2025 primarily due to higher seasonal compensation expenses related to payroll taxes, benefits and other costs associated with year-end bonus payments, as well as acquisition-related costs associated with our acquisition of Atlantic House and higher third-party distribution fees. Operating expenses increased 35.4% from the first quarter of 2025, primarily due to higher incentive compensation and headcount, as well as increases in fund management and administration expenses, acquisition-related costs, third-party distribution fees and amortization of intangible assets. Other Income/(Expenses)

Interest expense was essentially unchanged from the fourth quarter of 2025 and increased 102.6% from the first quarter of 2025 due to a higher level of debt outstanding. Interest income decreased 12.6% from the fourth quarter of 2025 and increased 36.6% from the first quarter of 2025, primarily due to changes in interest rates and the level of interest-earning assets. During the first quarter of 2026, we recognized a $62.3 million loss related to transactions involving our convertible notes, comprised of a loss on extinguishment of $16.9 million associated with the repurchase of $75.0 million in aggregate principal amount of our 2026 Notes and a $45.4 million inducement expense related to the repurchase of $275.0 million in aggregate principal amount of our 2029 Notes. Contingent consideration related to the Ceres Acquisition increased from $11.8 million on December 31, 2025 to $14.4 million at March 31, 2026, resulting in a $2.6 million loss on remeasurement recognized during the first quarter of 2026. Other losses and gains, net, was a loss of $0.6 million for the first quarter of 2026. This included net losses of $0.9 million on our financial instruments owned and net losses of $0.5 million on our investments. Gains and losses also generally arise from the sale of gold and cryptocurrency earned from advisory fees paid by our physically-backed gold and crypto ETPs, foreign exchange fluctuations and miscellaneous items. Income Taxes

Our effective income tax rate for the first quarter of 2026 was negative 58.6%, resulting in income tax expense of $8.5 million. Despite a pre-tax loss for the quarter, we recorded income tax expense primarily due to certain non-deductible amounts associated with the extinguishment of convertible notes, which caused our effective tax rate to differ from the U.S. federal statutory rate of 21.0%. Other items impacting our effective tax rate included non-deductible executive compensation, partly offset by state and local taxes and tax windfalls associated with the vesting of stock-based compensation awards. Our adjusted effective income tax rate for the first quarter of 2026 was 25.7%(1). CONFERENCE CALL DIAL-IN AND WEBCAST DETAILS

WisdomTree will discuss its results and operational highlights during a live webcast on Friday, May 1, 2026 at 11:00 a.m. ET, which, together with all earnings materials, can be accessed via WisdomTree’s investor relations website at https://ir.wisdomtree.com. A replay of the webcast will be available shortly after the call.

Participants also can dial in using the following numbers: (877) 407-9210 or (201) 689-8049. Click here to access the participant international toll-free access numbers.

To avoid delays, we encourage participants to log in or dial into the conference call 10 minutes ahead of the scheduled start time.

About WisdomTree

WisdomTree is a global financial innovator, offering a diverse suite of exchange-traded products (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, transparency and provide an enhanced user experience. Building on our heritage of innovation, we offer next-generation digital products and services related to tokenized real world assets and stablecoins, as well as our institutional platform, WisdomTree Connect™ and blockchain-native digital wallet, WisdomTree Prime®*, and have expanded into private markets through the acquisition of Ceres Partners’ U.S. farmland platform.

* The WisdomTree Connect institutional platform and WisdomTree Prime digital wallet and digital asset services are made available through WisdomTree Digital Movement, Inc., a federally registered money services business, state-licensed money transmitter and financial technology company (NMLS ID: 2372500) or WisdomTree Digital Trust Company, LLC, and may be limited where prohibited by law. WisdomTree Digital Trust Company, LLC is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business. Visit https://wisdomtreeconnect.com, https://www.wisdomtreeprime.com or the WisdomTree Prime mobile app for more information.

WisdomTree currently has approximately $163.19 billion in assets under management globally, inclusive of assets managed by Ceres Partners, LLC as of the last reportable period.

For more information about WisdomTree, WisdomTree Connect and WisdomTree Prime, visit: https://www.wisdomtree.com.

Please visit us on X at @WisdomTreeNews.

WisdomTree® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.

PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE CONNECT AND WISDOMTREE PRIME:

NOT FDIC INSURED | NO BANK GUARANTEE | NOT A BANK DEPOSIT | MAY LOSE VALUE | NOT SIPC PROTECTED | NOT INSURED BY ANY GOVERNMENT AGENCY

The products and services available through WisdomTree Connect and the WisdomTree Prime app are not endorsed, indemnified or guaranteed by any regulatory agency.

References to third-party platforms, protocols, or use cases are provided for informational purposes only and do not constitute an endorsement, recommendation, or solicitation by WisdomTree or its affiliates. WisdomTree and its affiliates do not control or operate such third-party platforms or protocols and are not responsible for their operation or performance.

____________________ (1)

See “Non-GAAP Financial Measurements.”

(2)

Revenue yield is computed by dividing our annualized adjusted operating revenues as reported in the GAAP to Non-GAAP Reconciliation herein by our average AUM during the period.

(3)

Earnings per share (“EPS”) is calculated pursuant to the two-class method as it results in a lower EPS amount as compared to the treasury stock method. In addition, the three months ended September 30, 2025 includes $718 of stock repurchase excise taxes, which is excluded from net income, but is required to be added to net income to arrive at income available to common stockholders in the calculation of EPS. This item is excluded from our EPS when computed on a non-GAAP basis.

WISDOMTREE, INC. AND SUBSIDIARIES

KEY OPERATING STATISTICS

(Unaudited)

  Three Months Ended

Mar. 31,

2026

Dec. 31,

2025

Sept. 30,

2025

June 30,

2025

Mar. 31,

2025

GLOBAL PRODUCTS ($ in millions)

Beginning of period assets

$

144,525

$

137,175

$

126,070

$

115,787

$

109,779

Add: Digital Assets—Jan. 1, 2025

—

—

—

—

32

Add: Assets acquired—Ceres Acquisition

—

1,812

—

—

—

Inflows/(outflows)

5,934

(283

)

2,241

3,529

3,052

Market appreciation

2,097

5,821

8,864

6,754

2,924

End of period assets

$

152,556

$

144,525

$

137,175

$

126,070

$

115,787

Average assets during the period

$

154,663

$

140,686

$

130,760

$

119,185

$

114,622

Average ETP advisory fee during the period

0.36%

0.35%

0.35%

0.35%

0.35%

Total revenue yield

0.42%

0.42%

0.38%

0.38%

0.38%

Revenue days

90

92

92

91

90

Number of products—end of the period

416

405

397

383

375

(1)

ETPs AND TOKENIZED PRODUCTS

U.S. LISTED ETFs ($ in millions)

Beginning of period assets

$

88,521

$

88,293

$

85,179

$

80,531

$

79,095

Inflows/(outflows)

2,643

(1,108

)

(445

)

1,110

1,847

Market (depreciation)/appreciation

(218

)

1,336

3,559

3,538

(411

)

End of period assets

$

90,946

$

88,521

$

88,293

$

85,179

$

80,531

Average assets during the period

$

91,742

$

88,074

$

87,205

$

81,525

$

81,127

Number of ETFs—end of the period

90

85

84

81

78

EUROPEAN LISTED ETPs ($ in millions)

Beginning of period assets

$

53,345

$

48,290

$

40,541

$

35,124

$

30,684

Inflows

3,118

609

2,448

2,201

1,104

Market appreciation

2,295

4,446

5,301

3,216

3,336

End of period assets

$

58,758

$

53,345

$

48,290

$

40,541

$

35,124

Average assets during the period

$

60,193

$

50,102

$

42,853

$

37,439

$

33,415

Number of ETPs—end of the period

306

300

295

285

280

DIGITAL ASSETS ($ in millions)

Beginning of period assets

$

770

$

592

$

350

$

132

$

—

Add: Digital Assets—Jan. 1, 2025

—

—

—

—

32

Inflows

98

179

238

218

101

Market (depreciation)/appreciation

(1

)

(1

)

4

—

(1

)

End of period assets

$

867

$

770

$

592

$

350

$

132

Average assets during the period

$

781

$

695

$

702

$

221

$

80

Number of products—end of the period

19

19

18

17

17

(1)

PRIVATE ASSETS ($ in millions)

Beginning of period assets

$

1,889

$

—

$

—

$

—

$

—

Add: Assets acquired—Ceres Acquisition

—

1,812

—

—

—

Inflows

75

37

—

—

—

Market appreciation

21

40

—

—

—

End of period assets

$

1,985

$

1,889

$

—

$

—

$

—

Average assets during the period

$

1,947

$

1,815

$

—

$

—

$

—

Number of products—end of the period

1

1

—

—

—

ETPs AND TOKENIZED PRODUCT CATEGORIES ($ in millions)

U.S. Equity

Beginning of period assets

$

41,427

$

40,977

$

38,617

$

35,628

$

35,414

Add: Digital Assets—Jan. 1, 2025

—

—

—

—

9

Inflows

354

191

32

1,287

963

Market (depreciation)/appreciation

(270

)

259

2,328

1,702

(758

)

End of period assets

$

41,511

$

41,427

$

40,977

$

38,617

$

35,628

Average assets during the period

$

42,394

$

41,161

$

40,024

$

36,080

$

36,281

Commodity & Currency

Beginning of period assets

$

36,980

$

31,705

$

26,696

$

25,487

$

21,906

Add: Digital Assets—Jan. 1, 2025

—

—

—

—

1

Inflows/(outflows)

35

177

1,096

(110

)

(159

)

Market appreciation

3,295

5,098

3,913

1,319

3,739

End of period assets

$

40,310

$

36,980

$

31,705

$

26,696

$

25,487

Average assets during the period

$

41,458

$

33,824

$

28,162

$

25,888

$

23,993

International Developed Market Equity

Beginning of period assets

$

25,616

$

23,893

$

21,725

$

18,178

$

17,602

Inflows

3,495

1,147

478

1,646

474

Market appreciation

75

576

1,690

1,901

102

End of period assets

$

29,186

$

25,616

$

23,893

$

21,725

$

18,178

Average assets during the period

$

29,349

$

24,708

$

22,481

$

19,577

$

18,275

Fixed Income

Beginning of period assets

$

21,074

$

22,509

$

22,543

$

22,230

$

20,043

Add: Digital Assets—Jan. 1, 2025

—

—

—

—

21

Inflows/(outflows)

1,272

(1,358

)

(58

)

148

2,092

Market appreciation/(depreciation)

49

(77

)

24

165

74

End of period assets

$

22,395

$

21,074

$

22,509

$

22,543

$

22,230

Average assets during the period

$

21,187

$

21,422

$

23,128

$

22,526

$

21,464

Emerging Market Equity

Beginning of period assets

$

10,643

$

10,855

$

10,957

$

9,985

$

10,468

(Outflows)/inflows

(206

)

(508

)

(250

)

28

(445

)

Market (depreciation)/appreciation

(294

)

296

148

944

(38

)

End of period assets

$

10,143

$

10,643

$

10,855

$

10,957

$

9,985

Average assets during the period

$

10,902

$

10,839

$

10,874

$

10,295

$

10,072

Leveraged & Inverse

Beginning of period assets

$

3,275

$

2,913

$

2,631

$

2,133

$

1,924

Inflows/(outflows)

565

(15

)

(52

)

141

116

Market (depreciation)/appreciation

(177

)

377

334

357

93

End of period assets

$

3,663

$

3,275

$

2,913

$

2,631

$

2,133

Average assets during the period

$

3,785

$

3,097

$

2,750

$

2,354

$

2,083

Cryptocurrency

Beginning of period assets

$

2,242

$

3,168

$

2,087

$

1,553

$

1,912

Add: Digital Assets—Jan. 1, 2025

—

—

—

—

1

Inflows/(outflows)

137

(117

)

764

198

(89

)

Market (depreciation)/appreciation

(596

)

(809

)

317

336

(271

)

End of period assets

$

1,783

$

2,242

$

3,168

$

2,087

$

1,553

Average assets during the period

$

2,021

$

2,550

$

2,412

$

1,800

$

1,900

Alternatives

Beginning of period assets

$

1,379

$

1,155

$

814

$

593

$

510

Inflows

207

163

231

191

100

Market (depreciation)/appreciation

(6

)

61

110

30

(17

)

End of period assets

$

1,580

$

1,379

$

1,155

$

814

$

593

Average assets during the period

$

1,620

$

1,270

$

929

$

665

$

554

Headcount

357

360

338

321

315

Note: Previously issued statistics may be restated due to fund closures and trade adjustments.

Source: WisdomTree

WISDOMTREE, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

  Mar. 31,

2026

Dec. 31,

2025

(Unaudited)

ASSETS

Current assets:

Cash, cash equivalents and restricted cash

$

625,505

$

311,732

Financial instruments owned, at fair value

65,237

107,117

Accounts receivable

66,112

64,452

Income taxes receivable

1,262

—

Prepaid expenses

8,649

7,338

Other current assets

1,320

1,723

Total current assets

768,085

492,362

Fixed assets, net

401

431

Deferred tax assets, net

6,689

9,803

Investments

28,623

29,075

Right of use assets—operating leases

2,326

2,764

Goodwill

228,624

228,624

Intangible assets, net

747,954

748,957

Other noncurrent assets

1,126

925

Total assets

$

1,783,828

$

1,512,941

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES

Current liabilities:

Convertible notes—current

$

74,910

$

149,604

Fund management and administration payable

34,465

29,448

Compensation and benefits payable

19,132

52,435

Payable to Gold Bullion Holdings (Jersey) Limited (“GBH”)

14,176

13,940

Operating lease liabilities

1,498

1,614

Income taxes payable

—

2,295

Accounts payable and other liabilities

23,948

32,720

Total current liabilities

168,129

282,056

Convertible notes—long term

1,125,434

804,203

Contingent consideration

14,406

11,844

Operating lease liabilities—long term

841

1,166

Total liabilities

1,308,810

1,099,269

STOCKHOLDERS’ EQUITY

Common stock, par value $0.01; 400,000 shares authorized:

Issued and outstanding: 152,439 and 140,713 at March 31, 2026 and December 31, 2025, respectively

1,524

1,407

Additional paid-in capital

279,000

189,244

Accumulated other comprehensive gain

1,069

2,227

Retained earnings

193,425

220,794

Total stockholders’ equity

475,018

413,672

Total liabilities and stockholders’ equity

$

1,783,828

$

1,512,941

WISDOMTREE, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

Three Months Ended

March 31,

2026

2025

Cash flows from operating activities:

Net (loss)/income

$

(23,131

)

$

24,629

Adjustments to reconcile net (loss)/income to net cash provided by operating activities:

Loss on extinguishment of convertible notes

62,302

—

Advisory and license fees paid in gold, other precious metals and cryptocurrency

(25,348

)

(15,373

)

Stock-based compensation

8,431

6,238

Deferred income taxes

3,395

5,835

Increase in fair value of contingent consideration

2,562

—

Depreciation and amortization

2,096

540

Amortization of issuance costs—convertible notes

1,154

624

Losses on financial instruments owned, at fair value

882

440

Amortization of right of use asset

456

326

Losses/(gains) on investments

452

(316

)

Imputed interest on payable to GBH

235

455

Changes in operating assets and liabilities:

Accounts receivable

(1,410

)

(394

)

Income taxes receivable/payable

(2,572

)

(4,092

)

Prepaid expenses

(1,360

)

(1,522

)

Gold and other precious metals

24,825

14,738

Other assets

168

(295

)

Fund management and administration payable

5,224

3,150

Compensation and benefits payable

(33,182

)

(28,056

)

Operating lease liabilities

(459

)

(325

)

Accounts payable and other liabilities

(6,763

)

(232

)

Net cash provided by operating activities

17,957

6,370

Cash flows from investing activities:

Purchase of financial instruments owned, at fair value

(6,003

)

—

Cash paid—software development

(980

)

(577

)

Purchase of fixed assets

(28

)

(31

)

Proceeds from the sale of financial instruments owned, at fair value

45,650

388

Proceeds from held-to-maturity securities maturing or called prior to maturity

—

6

Net cash provided by/(used in) investing activities

38,639

(214

)

Cash flows from financing activities:

Repurchase of convertible notes

(302,675

)

—

Common stock repurchased

(24,963

)

(12,714

)

Dividends paid

(4,744

)

(4,626

)

Issuance costs—convertible notes

(12,593

)

—

Proceeds from the issuance of convertible notes

603,750

—

Excise taxes paid on common stock repurchased

—

(1,868

)

Net cash provided by/(used in) financing activities

258,775

(19,208

)

(Decrease)/increase in cash flow due to changes in foreign exchange rate

(1,598

)

2,234

Net increase/(decrease) in cash, cash equivalents and restricted cash

313,773

(10,818

)

Cash, cash equivalents and restricted cash—beginning of year

311,732

181,191

Cash, cash equivalents and restricted cash—end of period

$

625,505

$

170,373

Supplemental disclosure of cash flow information:

Cash paid for income taxes

$

7,659

$

4,042

Cash paid for interest

$

18,448

$

6,412

  NON-GAAP FINANCIAL MEASUREMENTS

In an effort to provide additional information regarding our results as determined by GAAP, we also disclose certain non-GAAP information which we believe provides useful and meaningful information. Our management reviews these non-GAAP financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-GAAP measurements so as to share this perspective of management. Non-GAAP measurements do not have any standardized meaning, do not replace nor are they superior to GAAP financial measurements and are unlikely to be comparable to similar measures presented by other companies. These non-GAAP financial measurements should be considered in the context with our GAAP results. The non-GAAP financial measurements contained in this press release include the following:

Adjusted Operating Income, Operating Expenses, Income Before Income Taxes, Income Tax Expense, Net Income and Diluted Earnings per Share

We disclose adjusted operating income, operating expenses, income before income taxes, income tax expense, net income and diluted earnings per share as non-GAAP financial measurements in order to report our results exclusive of items that are non-recurring or not core to our operating business. We believe presenting these non-GAAP financial measurements provides investors with a consistent way to analyze our performance. These non-GAAP financial measurements exclude the following:

Gains or losses on financial instruments owned: We account for our financial instruments owned as trading securities, which requires these instruments to be measured at fair value with gains and losses reported in net income. We exclude these items when calculating our non-GAAP financial measurements as the gains and losses introduce earnings volatility and are not core to our operating business.

Foreign currency remeasurement gains and losses on U.S. dollars held by foreign subsidiaries: GAAP requires account balances to be remeasured into an entity’s functional currency, with resulting gains and losses reported in net income. Foreign subsidiaries holding U.S. dollars remeasure these balances into their functional currencies and recognize the gains and losses. We exclude remeasurement effects from our non-GAAP financial measures, as they introduce earnings volatility, are not core to our operations and arise from balances denominated in our reporting currency.

Tax windfalls and shortfalls upon vesting of stock-based compensation awards: GAAP requires the recognition of tax windfalls and shortfalls within income tax expense. These items arise upon the vesting of stock-based compensation awards and the magnitude is directly correlated to the number of awards vesting/exercised, as well as the difference between the price of our stock on the date the award was granted and the date the award vested or was exercised. We exclude these items when calculating our non-GAAP financial measurements as they introduce earnings volatility and are not core to our operating business.

Amortization of intangible assets and remeasurement of contingent consideration arising from our acquisition of Ceres Partners, LLC: On October 1, 2025, we completed the Ceres Acquisition for aggregate consideration consisting of (i) $275 million in cash payable at closing, subject to customary post-closing adjustments and (ii) contingent consideration of up to $225 million, payable in 2030, contingent upon Ceres Partners, LLC achieving a compound annual growth rate (“CAGR”) in revenues of 12% to 22% during the measurement period of January 1, 2025 through December 31, 2029. GAAP requires contingent consideration to be re-measured each reporting period with changes in fair value reported in net income. In addition, a portion of the consideration totaling $143.5 million was allocated to intangible assets, which is amortized over 25 years. We exclude changes in fair value of contingent consideration and amortization of intangible assets arising from the Ceres Acquisition when calculating our non-GAAP financial measurements as these items are not core to our operating business.

Other items: Losses related to convertible notes transactions, changes in deferred tax asset valuation allowance, acquisition-related costs, imputed interest on our payable to Gold Bullion Holdings (Jersey) Limited (“GBH”) and gains and losses recognized on our investments are excluded when calculating our non-GAAP financial measurements.

Adjusted Effective Income Tax Rate

We disclose our adjusted effective income tax rate as a non-GAAP financial measurement in order to report our effective income tax rate exclusive of items that are non-recurring or not core to our operating business. We believe reporting our adjusted effective income tax rate provides investors with a consistent way to analyze our income taxes. Our adjusted effective income tax rate is calculated by dividing adjusted income tax expense by adjusted income before income taxes. See above for information regarding the items that are excluded.

Gross Margin and Gross Margin Percentage

We disclose our gross margin and gross margin percentage as non-GAAP financial measurements because we believe they provide investors with a consistent way to analyze the amount we retain after paying third-party service providers to operate our ETPs. These measures also assist us in analyzing the profitability of our products. We define gross margin as total adjusted operating revenues less fund management and administration expenses. Gross margin percentage is calculated as gross margin divided by total adjusted operating revenues.

GAAP to NON-GAAP RECONCILIATION (CONSOLIDATED)

(in thousands)

(Unaudited)

  Three Months Ended

Adjusted Net Income and Diluted Earnings per Share:

Mar. 31,

2026

Dec. 31,

2025

Sept. 30,

2025

June 30,

2025

Mar. 31,

2025

Net (loss)/income, as reported

$

(23,131

)

$

40,026

$

19,701

$

24,777

$

24,629

Add back: Losses related to convertible notes transactions, net of income taxes

62,280

505

12,763

—

—

Deduct: Tax windfalls upon vesting of stock-based compensation awards

(4,421

)

—

(76

)

(4

)

(2,083

)

Add back: Increase in fair value of contingent consideration, net of income taxes

1,940

538

—

—

—

Add back: Acquisition-related costs, net of income taxes

1,933

240

1,824

1,489

—

Add back: Amortization of intangible assets arising from the Ceres Acquisition, net of income taxes

1,087

1,086

—

—

—

Add back/(deduct): Losses/(gains) on financial instruments owned, net of income taxes

668

8

(810

)

(972

)

333

(Deduct)/add back: Foreign currency remeasurement (gains)/losses on U.S. dollar balances, net of income taxes

(435

)

(141

)

—

1,136

—

Add back/(deduct): Losses/(gains) recognized on investments, net of income taxes

342

(75

)

734

(458

)

(239

)

Add back: Imputed interest on payable to GBH, net of income taxes

179

285

364

354

344

Add back/(deduct): Increase/(decrease) in deferred tax asset valuation allowance on capital losses

151

(1,237

)

(24

)

(459

)

30

Adjusted net income

$

40,593

$

41,235

$

34,476

$

25,863

$

23,014

Weighted average common shares—diluted

152,372

143,314

150,675

146,640

146,545

Adjusted earnings per share—diluted

$

0.27

$

0.29

$

0.23

$

0.18

$

0.16

Three Months Ended

Gross Margin and Gross Margin Percentage:

Mar. 31,

2026

Dec. 31,

2025

Sept. 30,

2025

June 30,

2025

Mar. 31,

2025

Operating revenues

$

159,470

$

147,434

$

125,616

$

112,621

$

108,082

Deduct: Fund management and administration

(24,880

)

(24,830

)

(22,353

)

(21,252

)

(20,714

)

Gross margin

$

134,590

$

122,604

$

103,263

$

91,369

$

87,368

Gross margin percentage

84.4%

83.2%

82.2%

81.1%

80.8%

Three Months Ended

Adjusted Operating Income and Adjusted Operating Income Margin:

Mar. 31,

2026

Dec. 31,

2025

Sept. 30,

2025

June 30,

2025

Mar. 31,

2025

Operating revenues

$

159,470

$

147,434

$

125,616

$

112,621

$

108,082

Operating income

59,350

59,747

$

45,654

$

34,632

$

34,162

Add back: Amortization of intangible assets arising from the Ceres Acquisition

1,435

1,434

—

—

—

Add back: Acquisition-related costs

1,933

317

2,409

1,967

—

Adjusted operating income

$

62,718

$

61,498

$

48,063

$

36,599

$

34,162

Adjusted operating income margin

39.3%

41.7%

38.3%

32.5%

31.6%

Three Months Ended

Adjusted Total Operating Expenses:

Mar. 31,

2026

Dec. 31,

2025

Sept. 30,

2025

June 30,

2025

Mar. 31,

2025

Total operating expenses

$

100,120

$

87,687

$

79,962

$

77,989

$

73,920

Deduct: Amortization of intangible assets arising from the Ceres Acquisition

(1,435

)

(1,434

)

—

—

—

Deduct: Acquisition-related costs

(1,933

)

(317

)

(2,409

)

(1,967

)

—

Adjusted total operating expenses

$

96,752

$

85,936

$

77,553

$

76,022

$

73,920

Three Months Ended

Adjusted Income Before Income Taxes:

Mar. 31,

2026

Dec. 31,

2025

Sept. 30,

2025

June 30,

2025

Mar. 31,

2025

(Loss)/income before income taxes

$

(14,582

)

$

50,463

$

29,517

$

31,870

$

30,368

Add back: Losses related to convertible notes transactions

62,302

833

13,011

—

—

Add back: Increase in fair value of contingent consideration

2,562

710

—

—

—

Add back: Acquisition-related costs

1,933

317

2,409

1,967

—

Add back: Amortization of intangible assets arising from the Ceres Acquisition

1,435

1,434

—

—

—

Add back/(deduct): Losses/(gains) on financial instruments owned

882

10

(1,070

)

(1,284

)

440

(Deduct)/add back: Foreign currency remeasurement (gains)/losses on U.S. dollar balances, net of income taxes

(566

)

(205

)

—

1,383

—

Add back/(deduct): Losses/(gains) recognized on investments

452

(99

)

970

(605

)

(316

)

Add back: Imputed interest on payable to GBH

236

377

481

467

455

Adjusted income before income taxes

$

54,654

$

53,840

$

45,318

$

33,798

$

30,947

Three Months Ended

Adjusted Income Tax Expense and Adjusted Effective Income Tax Rate:

Mar. 31,

2026

Dec. 31,

2025

Sept. 30,

2025

June 30,

2025

Mar. 31,

2025

Adjusted income before income taxes (above)

$

54,654

$

53,840

$

45,318

$

33,798

$

30,947

Income tax expense

$

8,549

$

10,437

$

9,816

$

7,093

$

5,739

Add back: Tax windfalls upon vesting of stock-based compensation awards

4,421

—

76

4

2,083

Add back: Tax benefit arising from convertible notes transactions

22

328

248

—

—

Add back: Tax benefit arising from increase in fair value of contingent consideration

622

172

—

—

—

Add back: Tax benefit of intangible asset amortization arising from the Ceres Acquisition

348

348

—

—

—

Add back/(deduct): Tax benefit/(expense) arising from losses/(gains) on financial instruments owned

214

2

(260

)

(312

)

107

(Deduct)/add back: (increase)/decrease in deferred tax asset valuation allowance on capital losses

(151

)

1,237

24

459

(30

)

(Deduct)/add back: Tax (expense)/benefit on foreign currency remeasurement losses on U.S. dollar balances

(131

)

(64

)

—

247

—

Add back/(deduct): Tax benefit/(expense) on losses/(gains) on investments

110

(24

)

236

(147

)

(77

)

Add back: Tax benefit on imputed interest

57

92

117

113

111

Add back: Tax benefit on acquisition-related costs

—

77

585

478

—

Adjusted income tax expense

$

14,061

$

12,605

$

10,842

$

7,935

$

7,933

Adjusted effective income tax rate

25.7%

23.4%

23.9%

23.5%

25.6%

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, the risks described below. If one or more of these or other risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this press release completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.

In particular, forward-looking statements in this press release may include statements about:

anticipated trends, conditions and investor sentiment in the global markets and ETPs; anticipated levels of inflows into and outflows out of our ETPs; our ability to deliver favorable rates of return to investors; competition in our business; whether we will experience future growth; our ability to develop new products and services and their potential for success; our ability to maintain current vendors or find new vendors to provide services to us at favorable costs; our ability to successfully implement our strategy relating to digital assets and blockchain-enabled financial services, including WisdomTree Connect™ and WisdomTree Prime®, and achieve its objectives; our ability to successfully operate and expand our business in non-U.S. markets; the effect of laws and regulations that apply to our business; the potential benefits arising from our acquisitions of Ceres Partners, LLC, and Atlantic House Holdings Limited, including financial or strategic outcomes; and our ability to successfully implement our strategic goals relating to the acquisitions and integrate the acquired businesses. Our business is subject to many risks and uncertainties, including without limitation:

declining prices of securities, gold and other precious metals and other commodities and changes in interest rates and general market conditions can adversely affect our business by reducing the market value of the assets we manage or causing WisdomTree ETP investors to sell their fund shares and trigger redemptions; fluctuations in the amount and mix of our AUM, whether caused by disruptions in the financial markets or otherwise, including but not limited to events such as a pandemic or war, geopolitical conflicts, political events, acts of terrorism and other matters beyond our control, may negatively impact revenues and operating margins, and may impede our ability to refinance our debt upon maturity or increase the cost of borrowing upon a refinancing; competitive pressures could reduce revenues and profit margins; we derive a substantial portion of our revenues from a limited number of products, and, as a result, our operating results are particularly exposed to investor sentiment toward investing in the products’ strategies and our ability to maintain the AUM of these products, as well as the performance of these products and market-specific and political and economic risk; a significant portion of our AUM is held in products with exposure to U.S. and international developed markets, and we therefore have exposure to domestic and foreign market conditions and are subject to currency exchange rate risks; withdrawals or broad changes in investments in our ETPs by investors with significant positions may negatively impact revenues and operating margins; we face increased operational, regulatory, financial and other risks as a result of conducting our business internationally, and as we expand our digital assets product offerings and services beyond our existing ETP business; many of our ETPs have a limited track record, and poor investment performance could cause our revenues to decline; and we depend on third parties to provide many critical services to operate our business and our ETPs. The failure of key vendors to adequately provide such services could materially affect our operating business and harm WisdomTree ETP investors. Additional risks include those associated with the acquisitions of Ceres Partners, LLC and Atlantic House Holdings Limited, including the risk that the integrations may be more difficult, time-consuming or costly than expected, or that expected benefits (including projected business growth, realization of synergies, or the ability to raise additional capital into the funds of the acquired businesses) may not be realized as anticipated. Other factors, such as general economic conditions, including currency exchange rate fluctuations, also may have an effect on the results of our operations. For a more complete description of the risks noted above and other risks that could cause our actual results to differ from our current expectations, see “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025.

The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments may cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Therefore, these forward-looking statements do not represent our views as of any date other than the date of this press release.

Category: Business Update

WisdomTree, Inc. (WT - Free Report) reported $159.47 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 47.6%. EPS of $0.27 for the same period compares to $0.16 a year ago.

The reported revenue represents a surprise of +1.22% over the Zacks Consensus Estimate of $157.55 million. With the consensus EPS estimate being $0.25, the EPS surprise was +9.76%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how WisdomTree, Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

AUM - end of period: $152.60 billion compared to the $152.03 billion average estimate based on four analysts.Average AUM: $154.70 billion compared to the $153.68 billion average estimate based on four analysts.Inflows/(outflows) - Cryptocurrency: $137 million versus $136.83 million estimated by three analysts on average.Inflows/(outflows) - U.S. Equity: $354 million versus the three-analyst average estimate of $353.94 million.Inflows/(outflows) - International Developed Market Equity: $3.5 billion versus $3.49 billion estimated by three analysts on average.Inflows/(outflows) - Emerging Markets Equity: $-206 million versus $-206 million estimated by three analysts on average.U.S. Equity - End of period assets: $41.51 billion versus $41.51 billion estimated by three analysts on average.Emerging Market Equity - End of period assets: $10.14 billion versus $10.14 billion estimated by three analysts on average.Operating Revenues- Other income: $16.4 million versus $12.85 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +92.2% change.Operating Revenues- Advisory fees: $134.88 million compared to the $137.2 million average estimate based on four analysts. The reported number represents a change of +35.5% year over year.Operating Revenues- Management fees: $5.23 million versus the three-analyst average estimate of $4.85 million.Operating Revenues- Performance fees: $2.96 million versus the three-analyst average estimate of $5.17 million.View all Key Company Metrics for WisdomTree, Inc. here>>>

Shares of WisdomTree, Inc. have returned +17.7% over the past month versus the Zacks S&P 500 composite's +10.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

(Kitco News) - Gold prices continue to struggle below $4,600 an ounce; however, one market strategist still expects that prices will be much higher by the first quarter of next year, supported by robust long-term fundamentals.

In an interview with Kitco News,  Nitesh Shah, head of commodities and macroeconomic research at WisdomTree, said that short-term volatility and shifting macroeconomic risks are raising the likelihood that central banks could make policy mistakes — a backdrop that is ultimately supportive for gold.

Shah said that while gold has struggled as a safe-haven asset, despite elevated geopolitical tensions, underlying risks in the global economy continue to build, creating a constructive environment for precious metals.

“Gold still isn’t quite performing as you’d expect as a full-fledged geopolitical hedge,” he said. “But a lot of that selling pressure is being driven by liquidation and margin dynamics in broader markets rather than a change in fundamentals.”

Shah noted that central banks are increasingly constrained in their ability to respond to inflation, as aggressive rate hikes could deepen recessionary risks or trigger stagflation. This delicate balancing act raises the risk of policy errors — a key bullish driver for gold.

“Central banks are fully cognizant that there’s not much they can do with interest rate policy without inflicting pain,” he said.

At the same time, uncertainty surrounding future monetary policy — particularly as leadership and policy priorities evolve — could further destabilize markets.

“If you’re trying to achieve too much in a short space of time, that could lead to policy errors, and that uncertainty is potentially supportive for gold,” Shah said.

Against this backdrop of policy risk and market volatility, Shah remains long-term bullish on gold.

According to his latest base-case scenario, he expects gold prices to return to levels close to their all-time highs by the first quarter of 2027.

“I’m looking at gold around $5,500 for Q1 2027,” he said, noting that he considers this level closer to the lower end of a broader range given strong investment demand.

Even in a more bearish scenario — where inflation falls to 2%, the U.S. dollar strengthens, and bond yields rise — Shah sees gold holding around $4,630 an ounce.

“Even with quite bearish assumptions, the downside is relatively capped,” he said. “The risks are much more to the upside.”

Shah is also constructive on silver, although he acknowledged that industrial demand dynamics add an additional layer of uncertainty.

He forecasts silver prices reaching approximately $92.50 an ounce by the first quarter of 2027, with potential for further upside depending on electrification trends and solar demand.

“If gold goes up much more, it should drag silver up,” he said, adding that the global push for energy diversification could support long-term demand.

Looking beyond monetary policy, Shah emphasized that growing recession risks could act as a catalyst for higher gold prices.

“Recessionary risks are generally what help gold prices,” he said. “If we start seeing that, then it becomes very supportive for gold.”

He also pointed to structural issues such as rising government debt and long-term pressure on the U.S. dollar as additional tailwinds.

“We may start to see structural depreciation reemerging with pressures on budgets, and that could help gold prices,” he explained.

At the same time, strong and persistent demand from Asia — particularly from China and India — continues to underpin the market, even as high prices weigh on jewelry volumes.

“Demand hasn’t gone away, it’s just shifted,” Shah said, noting that gold continues to be treated as a “wearable investment” in many regions.

At the same time, Shah also noted the evolving shift among institutional investors, many of whom are increasing their strategic allocations to gold after years of underweight positioning.

“Most clients feel they need some strategic allocation to gold,” he said. “They recognize their portfolios are not diversified enough without it.”

He explained that gold is increasingly being viewed as a replacement for traditional fixed-income exposure, particularly as bond markets face their own volatility challenges.

Finally, Shah said ongoing geopolitical tensions and the increasing use of gold as a liquid, neutral reserve asset by central banks are reinforcing its long-term appeal.

“I think geopolitical risks need to be priced in more,” he said, adding that gold is currently “sitting a little bit lower than where it should be given the prevailing risks.”

As volatility persists and policymakers navigate an increasingly complex economic landscape, Shah expects gold and silver to remain well supported.

“The environment is uncertain, and that uncertainty is ultimately what drives investors toward gold,” he said.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

On Thursday, May 7, WisdomTree announced the debut of the WisdomTree Efficient Rare Earth Plus Strategic Metals Fund (WDIG). Available on the CBOE, the actively managed WDIG operates with a net expense ratio of 55 basis points. 

Key Takeaways: WisdomTree has launched WDIG, an ETF that generally looks to capture global opportunities in strategic metals and rare earths alike. To do so, the fund invests in two distinct buckets: an equities bucket full of companies exposed to rare earth miners and strategic metals, along with a bucket for commodity metals futures contracts. Considering the opportunities within strategic metals and minerals alike, along with the perks diversification alone brings to a portfolio, WDIG could be an especially strong portfolio allocation in today’s environment. True to its title, WDIG offers exposure to a mix of different strategic metals and rare earths within the ETF wrapper. This includes aluminum, copper, lithium, silver, and rare earth elements, among many others. 

See More: Prepare for a Gold Rebound With This Nifty ETF

Digging Into WDIG’s Investment Approach WDIG builds its allocations to these metals and elements through a compelling dual exposure strategy. To start, the fund invests in a mix of different equities from companies engaged in rare earths mining activities and strategic metals across the globe. 

Furthermore, the fund also provides exposure to a basket of commodity metals futures contracts. This provides a multitude of avenues to capitalize on the metals and rare earths markets in an accordingly capital-efficient manner.

“From electric vehicles and wind turbines to AI data centers and autonomous systems, many of the technologies shaping the future share a common foundation in strategic metals. At the same time, supply chains for many critical minerals remain highly concentrated, elevating their importance from commodities to strategic assets for governments and industries alike,” noted Christopher Gannatti, global head of research at WisdomTree. “WDIG reflects this convergence of rising demand and evolving supply dynamics, offering a way to access both the metals themselves and the companies producing them.”

See More: How to Build an Efficient Core with ETFs

The Diversification Benefits WDIG concurrently offers the secondary perk of amplifying diversification, considered a crucial portfolio benefit at this juncture. Not only does the fund provide access to metals and materials that tend to be underweight within portfolios, but it offers global exposure as well. 

WDIG has thus joined an ever-growing lineup of WisdomTree funds, which offers a variety of different solutions for its investment community. One of the largest WisdomTree funds, the WisdomTree Japan Hedged Equity Fund (DXJ), has over $6.3 billion in assets under management. 

For more news, information, and analysis, visit the Modern Alpha Content Hub.

Disclosure This article was prepared as part of WisdomTree’s general paid sponsorship of VettaFi | ETF Trends. This specific content within and any opinions expressed therein belong solely to VettaFi and do not reflect the opinion or analysis of WisdomTree, its employees, or its affiliates. Content published on VettaFi | ETF Trends is provided for educational purposes only and should not be considered investment or tax advice. For investment or tax advice, please consult a financial professional. 

WisdomTree is an independent company, unaffiliated with VettaFi | ETF Trends. WisdomTree has not been involved with the preparation of the content supplied by VettaFi | ETF Trends. It does not guarantee, or assume any responsibility for its content.

On May 13, 2026, WisdomTree Inc WT shares rose 4.1% to a current price of $19.49, reflecting a strong upward trend in price performance over the past year, with a remarkable increase of 106.8%. The stock has traded within a 52-week range of $9.24 to $19.85.

GF Value™ verdict: Current price of $19.49 is 21.2% overvalued compared to the GF Value™ of $16.08.GF Score™ of 90/100 indicates a strong overall performance based on multiple key metrics.Notable signal: The momentum rank stands at 9/10, showcasing significant upward price movement. Is WT Overvalued or Undervalued? According to the GF Value™, WisdomTree Inc is currently overvalued, with a market price of $19.49 exceeding the intrinsic value estimate of $16.08 by 21.2%. This level of overvaluation suggests a lack of margin of safety for potential investors, as the price is well above the calculated fair value based on historical trading multiples, past business growth, and future performance estimates. The GF Valuation label indicates that the stock is considered modestly overvalued, which carries inherent risks for those looking to enter at this price point.

The overvaluation may reflect market enthusiasm and momentum in the asset management sector, but it also implies that any downturn could lead to a rapid decline in stock price if market sentiment shifts. Investors should be cautious and consider the high price in relation to the company's fundamentals before making decisions.

How Does WT's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 47.5x 22.2x (5-Year Median) Forward P/E 17.3x N/A The current P/E ratio of 47.5x is 115% above its 5-year median of 22.2x, indicating that the stock is trading significantly above its historical valuation multiples. This analysis aligns with the GF Value™ verdict that WisdomTree Inc is overvalued, reinforcing the caution advised for potential investors based on historical earnings performance.

What Does WT's GF Score™ Tell Us? Metric Rating GF Score™ 90 Financial Strength 5/10 Profitability 8/10 Growth 9/10 Valuation 6/10 Momentum 9/10 The GF Score™ of 90/100 indicates that WisdomTree Inc has strong potential for long-term returns, particularly in growth (9/10) and momentum (9/10). However, the financial strength score of 5/10 suggests average stability, which could be a concern in adverse market conditions. The profitability rank of 8/10 highlights the company's ability to generate profits effectively, while the valuation rank of 6/10 suggests that the current valuation may not fully reflect the company’s growth potential.

What Are Insiders Doing with WT Stock? In the last three months, insider activity has shown a net selling pattern, with $0.0 million in purchases and $0.8 million in sales. This selling trend may indicate that insiders believe the stock is currently overvalued or that they are taking profits after a significant rise in share price. Such activity can be a signal for potential investors to proceed with caution, as it may reflect insiders’ confidence in the stock's near-term performance.

What This Means for Investors Based on the analysis of GF Value™, WisdomTree Inc appears to be overvalued at its current price of $19.49. Given the significant premium over the intrinsic value estimate and the recent insider selling, prospective investors may want to consider these factors carefully before making any investment decisions.

For the complete analysis, visit the WisdomTree Inc WT stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is WT's GF Score™?

WT's GF Score™ is 90/100, indicating a strong overall performance based on key metrics that correlate with higher long-term returns.

Is WT overvalued or undervalued?

According to GF Value™, WT is overvalued, with a current price that exceeds its intrinsic value estimate by 21.2%.

What is WT's P/E ratio?

WT's P/E ratio is 47.5x, which is significantly higher than its 5-year median of 22.2x, indicating the stock is trading above its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Geopolitical tensions, higher-for-longer interest rates, and a new Fed chair forthcoming. It seems like fixed income investors have plenty to worry about, but thankfully, they also have optionality when deciding where to allocate. An opportunity that warrants a closer look is the municipal bond market.

In a WisdomTree Office Hours session, Raising Awareness to Active Muni Strategies, Kevin Flanagan (head of investment & fixed income strategy at WisdomTree) and Jeffrey Burger (senior portfolio manager at Insight Investment) explored active, laddered bond strategies in the muni market. Furthermore, they explained how this makes for a compelling approach given today’s uncertain macroeconomic environment.

Key Takeaways: Taxable equivalent yields on high-quality municipal bonds are reaching 7% to 9%, offering a decade-high entry point that outpaces corporate high yield with far lower default risk. A uniquely steep municipal yield curve drives built-in price appreciation through the natural rolldown effect, while long-term secular factors favor a profitable flattening of the curve. Active laddered strategies like WTMU and WTMY capture alpha within specific maturity rungs by continuously replacing overvalued securities with cheaper, mispriced revenue bonds. See more: WisdomTree’s Kevin Flanagan on How to Navigate Fixed Income

Decade-High Entry Point If there’s a good time to get into munis, that time is now. With a rapidly changing macroeconomic environment and as Flanagan noted, a “10 year Treasury yields slowly hitting or going close to hitting 4.7%,” the fixed income playbook requires a new approach. For modern wealth managers, the combination of historically high nominal yields and unique structural tailwinds are turning municipal bonds into a compelling tool to generate alpha.

That said, the defining characteristic of today’s muni market are entry-point yields. Because munis are tax-free, their nominal yields look dramatically different when viewed through a tax-adjusted lens.

“The 30 year Treasury bond is at its highest since 2007,” Flanagan noted, citing “hotter than expected CPI, PPI numbers” and Middle East conflicts pressuring energy prices.

Burger emphasized that investors must calculate “the taxable equivalent yields you get promoting a municipal, because they are tax free.”

“Effectively, depending on the strategy, the treasury yields that we’re looking at, gross that up based on your applied or actual tax rate,” Burger explained further. “And you’re looking at yields in this environment, that I’m not really being hyperbolic. When I say, I haven’t seen in at least a decade, maybe longer, for high quality type credit. You’re looking at upward seven, eight, nine, percent type taxable equivalent yields. That’s pretty darn attractive on a nominal basis.”

Summarily those tax-adjusted yields are above the sub-7% yields currently found in the U.S. corporate high-yield index. However, munis offer an investment-grade risk profile and greater credit quality through its almost non-existent historical default probability.

“The entry point is nothing but compelling,” said Burger, speaking directly to medium- and long-term investors particularly.

Two Structural Tailwinds Furthermore, there are structural tailwinds blowing in favor for munis in addition to summer seasonality. These include a remarkably steep yield curve and the potential for a medium-term macro flattening.

One of the big differences between munis and other markets right now “is how much incremental yield the investor receives from just extending a little bit.” Burger quantified this by stating that “the difference between a 10-year AAA maturity and a 30-year AAA bond is about two and a half times in terms of a steepness.”

“As that 30-year bond becomes a 29-year bond (and so on), there’s something called the rolldown effect,” Burger added. “As we go down that hill, the market has to compensate for the fact that the 30-year bond has become a 29-year bond. How does it do it? Price appreciation. That bond then becomes more valuable.”

Regarding the second tailwind, this refers to the broader economic setting. While oil spikes can apply pressure on near-term inflation, they “generally, over the medium term, lead to a slower economy, or a more efficient economy, i.e. lower inflation.” Combined with “the efficiencies and productivity increases from AI,” this macro shift is likely to cause “a flattening of our yield curve.” In turn, this directly benefits intermediate and intermediate-longer dated munis.

2 ETF Options: Active, Built-in Precision To capitalize on the aforementioned dynamics, WisdomTree and Insight Investment partnered to launch two active, laddered municipal ETFs. The WisdomTree Core Laddered Municipal Fund (WTMU) focuses on investment-grade assets, while the WisdomTree High Income Laddered Municipal Fund (WTMY) captures excess yield in lieu of taking on greater credit risk. Unlike a passive ETF or an individual bond ladder strategy, these active ETFs use an institutional research-driven model to identify relative value.

“The real genius of the strategy here is it’s active within the maturity rungs,” Burger explained, noting that the research team behind both funds use a rigorous, fundamental bottom-up approach. “If we have a bond that is sitting in 2029 and we think it’s absolutely outperformed relative to its credit worthiness, we simply will sell that security and buy one that we think is cheaper, and generate a different yield profile that should absolutely generate excess returns in our opinion. What we’re trying to do is isolate alpha through credit.”

Feature WisdomTree Core Laddered Municipal Fund WisdomTree High Income Laddered Municipal Fund Ticker WTMU WTMY Issuer WisdomTree WisdomTree Sub-Advisor Insight Investment Insight Investment Expense Ratio 0.25% 0.35% Management Style Active (Laddered maturity rungs) Active (Laddered +
High-Income tactical credit) Credit Quality Focus Strictly Investment Grade
(100% AAA to BBB) Blended (Targets ≥80% in A+ or below; allows up to 50% non-investment grade) Maturity Spectrum Intermediate rungs out to 15 years 1 to 15 year ladder ballast, extending into select longer-dated maturities Effective Duration 4.67 years 6.43 years Target Yield Premium Core benchmark index optimization Sleeves engineered to harvest 80 to 100 bps over core portfolio yields Primary Asset Profile Active Institutional Revenue Bonds Active High-Yield Infrastructure Revenue Bonds & Structured Munis Originally published on Advisor Perspectives

For more news, information, and analysis, visit the Modern Alpha Content Hub.

Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the WisdomTree U.S. LargeCap ETF (EPS - Free Report) , a passively managed exchange traded fund launched on February 23, 2007.

The fund is sponsored by Wisdomtree. It has amassed assets over $1.55 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.

Why Large Cap ValueLarge cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.

While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.

CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 1.15%.

Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector -- about 36% of the portfolio. Financials and Consumer Discretionary round out the top three.

Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 7.09% of total assets, followed by Google Inc (GOOGL) and Amazon.com Inc (AMZN).

The top 10 holdings account for about 38.22% of total assets under management.

Performance and RiskEPS seeks to match the performance of the WisdomTree U.S. Earnings 500 Index before fees and expenses. The WisdomTree U.S. LargeCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the large-capitalization segment of the U.S. Stock Market.

The ETF has added roughly 10.78% so far this year and is up about 29.12% in the last one year (as of 05/28/2026). In the past 52-week period, it has traded between $61.20 and $78.30.

The ETF has a beta of 0.95 and standard deviation of 13.75% for the trailing three-year period, making it a medium risk choice in the space. With about 505 holdings, it effectively diversifies company-specific risk.

AlternativesWisdomTree U.S. LargeCap ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, EPS is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.

The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value Index Fund ETF Shares (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $94.47 billion in assets, Vanguard Value Index Fund ETF Shares has $177.59 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.03%.

Bottom-LineWhile an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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Appointment underscores firm’s commitment to leadership in the digital assets space, broadening offerings for retail and institutional investors onchain

NEW YORK--(BUSINESS WIRE)--WisdomTree, Inc. (NYSE: WT), a global financial innovator, today announced the appointment of John Whelan as Head of Strategy, Digital Assets.

Whelan brings nearly a decade of leadership in blockchain and digital assets from Banco Santander’s Corporate and Investment Bank, where he served as Managing Director of Digital Assets after building and leading the bank’s blockchain lab from 2016. He previously founded a Silicon Valley-backed blockchain startup focused on institutional credit ratings.

“John is joining WisdomTree at an exciting time for our digital assets business,” said Jonathan Steinberg, WisdomTree Founder and CEO. “As we continue to scale our digital assets business globally, John’s experience makes him an exceptional addition to our digital assets leadership team. WisdomTree is a leader in defining what the future looks like for financial infrastructure, and John will play a central role in that continued mission.”

Whelan will report to Will Peck, Head of Digital Assets at WisdomTree, and be a part of the Digital Assets Leadership team. Based in the U.S., John will lead business-unit strategy and drive key strategic initiatives, including oversight of strategic investment activities. He will collaborate closely with Business Development and Product teams on partnerships and product strategy, with a particular focus on deepening relationships with financial institutions and crypto firms and expanding WisdomTree’s footprint across Europe, Asia and Latin America. Drawing on deep expertise in stablecoins, cryptocurrency and global banking, Whelan will play a central role in helping WisdomTree drive AUM and wallet growth as the firm continues to scale its digital assets business.

“John’s experience and background in traditional banking and digital assets are precisely what we’re looking for as we accelerate the growth of WisdomTree digital assets across global markets,” said Will Peck, Head of Digital Assets at WisdomTree. “He understands the strategic and commercial realities of bringing onchain finance into institutions, and I’m excited to have him join our team and deepen our partnerships and expand our reach with financial institutions and crypto firms around the world.”

“I am honored to take on this role at such an exciting time for WisdomTree and the digital assets space,” said Whelan. “WisdomTree has built something genuinely differentiated in the digital assets ecosystem, and I’m thrilled to now be driving that mission alongside the team.”

About WisdomTree

WisdomTree is a global financial innovator, offering a diverse suite of exchange-traded products (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 offer next-generation digital products and services related to tokenized real world assets and stablecoins, as well as our institutional platform, WisdomTree Connect™, and blockchain-native digital wallet, WisdomTree Prime®*, and have expanded into private markets through the acquisition of Ceres Partners’ U.S. farmland platform.

* The WisdomTree Connect institutional platform and WisdomTree Prime digital wallet and digital asset services are made available through WisdomTree Digital Movement, Inc., a federally registered money services business, state-licensed money transmitter and financial technology company (NMLS ID: 2372500) or WisdomTree Digital Trust Company, LLC, and may be limited where prohibited by law. WisdomTree Digital Trust Company, LLC is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business. Visit https://wisdomtreeconnect.com, https://www.wisdomtreeprime.com or the WisdomTree Prime mobile app for more information.

WisdomTree currently has approximately $168.7 billion in assets under management globally, inclusive of assets managed by Ceres Partners, LLC as of the last reportable period.

For more information about WisdomTree, WisdomTree Connect and WisdomTree Prime, visit: https://www.wisdomtree.com.

Please visit us on X at @WisdomTreeNews.

WisdomTree® is the marketing name for WisdomTree, Inc. and its subsidiaries worldwide.

PRODUCTS AND SERVICES AVAILABLE VIA WISDOMTREE CONNECT AND WISDOMTREE PRIME:
NOT FDIC INSURED | NO BANK GUARANTEE | NOT A BANK DEPOSIT | MAY LOSE VALUE | NOT SIPC PROTECTED | NOT INSURED BY ANY GOVERNMENT AGENCY

The products and services available through WisdomTree Connect and the WisdomTree Prime app are not endorsed, indemnified or guaranteed by any regulatory agency.

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(Kitco News) - The gold market continues to struggle as prices remain firmly below their 200-day moving average. The selling pressure has been driven by rising inflation fears, but one analyst says that this threat could also be gold's greatest long-term strength.

Gold prices broke through critical support Friday after the Bureau of Labor Statistics announced that 172,000 jobs were created in May, significantly more than expected. Resilient strength in the labor market is prompting markets to price in a potential rate hike before the end of the year.

According to the CME FedWatch Tool, markets see a nearly 50/50 chance of a rate hike as early as October. The hawkish tilt represents a significant shift from only a month ago, when markets were still pricing in a rate cut.

Although gold has sold off on expectations that higher interest rates will raise the opportunity cost of holding a non-yielding asset, Nitesh Shah, Head of Commodities and Macroeconomic Research at WisdomTree, said that markets may be getting ahead of themselves.

He explained that he sees a real possibility that inflation pressures could outpace the Federal Reserve's ability to respond, pushing real interest rates deeper into negative territory and reinforcing investor demand for hard monetary assets.

Although markets continue to debate the policy direction of newly appointed Federal Reserve Chair Kevin Warsh, Shah said the more important story for gold is not where nominal interest rates move, but what happens to inflation.

"There's a lot of potential for real rates to go down, especially if the Fed is holding still and inflation is rising," Shah said.

Warsh has previously expressed support for lower interest rates while simultaneously shrinking the Fed's balance sheet. However, Shah argued that elevated inflation leaves policymakers with little room to aggressively cut rates without risking their credibility.

"Right now, the data doesn't really allow for rate cuts because inflation is rising," he said. "Cutting rates in this environment would be disastrous from a credibility standpoint."

Even if the Fed keeps nominal rates unchanged, Shah noted that accelerating inflation would effectively reduce real interest rates — one of the most important factors impacting gold prices.

Inflation Risks Remain Underestimated

According to Shah, investors may still be underestimating the potential for inflation surprises in the months ahead.

One area of concern is energy markets. He noted that global oil inventories have been steadily declining, creating the potential for a nonlinear move higher in prices if supplies become increasingly constrained.

"We started this period with huge inventories of oil, and that inventory is wearing down rapidly," he said. "The more you pull down inventories, the greater the marginal impact on oil prices."

Higher energy prices could continue to filter through broader inflation measures at a time when inflation is already moving above the Federal Reserve's target.

While technological advances such as artificial intelligence could eventually improve productivity and help contain service-sector inflation, Shah argued that the outlook for goods inflation remains more problematic.

"I think we're stuck with high prices," he said.

He added that this scenario would continue to erode real yields, reducing the opportunity cost of holding non-yielding assets such as gold.

Beyond inflation, Shah said the growing possibility of slower economic growth could create an additional catalyst for gold.

Any resulting economic slowdown would likely reinforce gold's role as a defensive asset.

"If you do start seeing economic deceleration, that's another reason for gold prices to rally," Shah said. "Gold tends to do well in recessionary scenarios. It is a very strong defensive asset."

Shah also pointed to growing concerns surrounding government debt sustainability as another structural pillar supporting gold prices.

Interest payments on U.S. government debt are approaching levels comparable to military spending, raising questions about the long-term sustainability of fiscal policy.

"Gold prices are as elevated as they are right now because markets are worried about the sustainability of debt," he said.

Although Warsh has indicated a desire to shrink the Federal Reserve's balance sheet and reduce the government's dependence on monetary support, Shah remains skeptical that meaningful balance sheet reduction will be politically or economically achievable.

Slower economic growth and rising fiscal pressures could ultimately force policymakers back toward easier monetary policy, further strengthening gold's investment case.

With inflation risks rising, real rates facing downward pressure, recession concerns mounting, and central-bank buying remaining robust, Shah believes gold's recent correction may ultimately prove temporary.

"I think we're sitting on a bargain in gold right now," he said.

Shah added that recovering the roughly $1,000 decline from recent highs within the next year appears achievable if inflation continues to surprise to the upside and investors increasingly seek protection in hard monetary assets.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

The WisdomTree U.S. LargeCap ETF (EPS - Free Report) was launched on 02/23/2007, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.

What Are Smart Beta ETFs?For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.

Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.

This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.

Fund Sponsor & IndexThe fund is managed by Wisdomtree, and has been able to amass over $1.51 billion, which makes it one of the average sized ETFs in the Style Box - Large Cap Value. Before fees and expenses, this particular fund seeks to match the performance of the WisdomTree U.S. Earnings 500 Index.

The WisdomTree U.S. LargeCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the large-capitalization segment of the U.S. Stock Market.

Cost & Other ExpensesExpense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.

With one of the least expensive products in the space, this ETF has annual operating expenses of 0.08%.

It's 12-month trailing dividend yield comes in at 1.18%.

Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

Representing 35.8% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Financials and Consumer Discretionary round out the top three.

Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 7.09% of total assets, followed by Google Inc (GOOGL) and Amazon.com Inc (AMZN).

The top 10 holdings account for about 38.22% of total assets under management.

Performance and RiskThe ETF has added roughly 7.54% so far this year and is up roughly 22.56% in the last one year (as of 06/11/2026). In the past 52-week period, it has traded between $61.96 and $79.36

The fund has a beta of 0.95 and standard deviation of 13.83% for the trailing three-year period, which makes EPS a medium risk choice in this particular space. With about 505 holdings, it effectively diversifies company-specific risk .

AlternativesWisdomTree U.S. LargeCap ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.

Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value Index Fund ETF Shares (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $95.38 billion in assets, Vanguard Value Index Fund ETF Shares has $179.15 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.03%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value

Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

Essential Utilities gains from $1.4B investments, rate hikes and acquisitions, which position the utility for steady growth through 2027.

Posted by Defense World Staff on Apr 5th, 2026

SG Americas Securities LLC decreased its position in Essential Utilities Inc. (NYSE:WTRG – Free Report) by 25.3% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 53,037 shares of the company’s stock after selling 17,941 shares during the period. SG Americas Securities LLC’s holdings in Essential Utilities were worth $2,034,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the company. JPMorgan Chase & Co. lifted its stake in shares of Essential Utilities by 587.6% in the third quarter. JPMorgan Chase & Co. now owns 4,071,929 shares of the company’s stock worth $162,472,000 after buying an additional 3,479,762 shares in the last quarter. ANTIPODES PARTNERS Ltd bought a new stake in shares of Essential Utilities during the third quarter valued at approximately $128,137,000. Nordea Investment Management AB raised its holdings in Essential Utilities by 25.5% in the 3rd quarter. Nordea Investment Management AB now owns 8,972,565 shares of the company’s stock worth $354,057,000 after acquiring an additional 1,822,306 shares during the last quarter. Balyasny Asset Management L.P. raised its holdings in Essential Utilities by 1,572.4% in the 2nd quarter. Balyasny Asset Management L.P. now owns 1,271,201 shares of the company’s stock worth $47,212,000 after acquiring an additional 1,195,189 shares during the last quarter. Finally, AQR Capital Management LLC lifted its position in Essential Utilities by 121.8% in the 3rd quarter. AQR Capital Management LLC now owns 1,591,706 shares of the company’s stock valued at $62,697,000 after acquiring an additional 873,990 shares in the last quarter. 74.78% of the stock is owned by hedge funds and other institutional investors.

Essential Utilities Trading Down 0.1% NYSE:WTRG opened at $41.03 on Friday. The company has a market cap of $11.62 billion, a PE ratio of 18.57 and a beta of 0.78. The company has a current ratio of 0.80, a quick ratio of 0.65 and a debt-to-equity ratio of 1.18. The company has a 50 day simple moving average of $39.58 and a two-hundred day simple moving average of $39.28. Essential Utilities Inc. has a 12 month low of $36.32 and a 12 month high of $42.37.

Essential Utilities (NYSE:WTRG – Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported $0.47 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.36 by $0.11. Essential Utilities had a return on equity of 9.18% and a net margin of 24.91%.The firm had revenue of $699.11 million for the quarter, compared to the consensus estimate of $611.60 million. During the same period last year, the business posted $0.67 EPS. The company’s revenue for the quarter was up 15.7% on a year-over-year basis. Research analysts forecast that Essential Utilities Inc. will post 1.99 earnings per share for the current year.

Essential Utilities Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Tuesday, May 12th will be paid a dividend of $0.3426 per share. This represents a $1.37 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date is Tuesday, May 12th. Essential Utilities’s payout ratio is currently 61.99%.

Analyst Upgrades and Downgrades A number of analysts have commented on the company. Barclays set a $38.00 target price on Essential Utilities and gave the stock an “underweight” rating in a report on Wednesday, December 17th. Argus raised Essential Utilities to a “strong-buy” rating in a research report on Monday, March 23rd. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Essential Utilities in a report on Monday, December 29th. Two analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $43.20.

View Our Latest Analysis on Essential Utilities

Essential Utilities Profile (Free Report)

Essential Utilities, Inc, formerly known as Aqua America, is a publicly traded water and natural gas utility holding company. Through its regulated water and wastewater subsidiaries, the company provides essential water services to residential, commercial and industrial customers. In addition, Essential Utilities delivers natural gas distribution services in Pennsylvania through its Peoples Gas subsidiary, offering integrated utility solutions under a unified corporate framework.

The company traces its roots to the Philadelphia Suburban Water Company, founded in 1886 to serve growing communities outside Philadelphia.

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BRYN MAWR, Pa.--(BUSINESS WIRE)--Essential Utilities (NYSE: WTRG) expects to report earnings for quarter ended March 31, 2026, prior to market opening on May 7, 2026.

The company’s conference call with financial analysts will take place on May 7, 2026, at 11 a.m. Eastern Time. The call and presentation will be webcast live, so interested parties may listen over the internet by logging on to Essential.co and following the link for Investors. The conference call will be archived in the Investor Relations section of the company’s website following the call. Additionally, the call will be recorded and made available for replay for seven days following the call. To access the audio replay in the U.S., dial (833) 461-5787 toll-free or (585) 542-9983 (pass code 172767 followed by the # key).

Chris Franklin, Chief Executive Officer, and Dan Schuller, Chief Financial Officer, will host the conference call. There will be a question & answer session as part of the call.

About Essential
Essential Utilities, Inc. (NYSE: WTRG) delivers safe, clean, reliable services that improve quality of life for individuals, families, and entire communities. With a focus on water, wastewater and natural gas, Essential is committed to sustainable growth, operational excellence, a superior customer experience, and premier employer status. We are advocates for the communities we serve and are dedicated stewards of natural lands, protecting thousands of acres of forests and other habitats throughout our footprint.

Operating as the Aqua and Peoples brands, Essential serves approximately 5.5 million people across nine states. Essential is one of the most significant publicly traded water, wastewater service and natural gas providers in the U.S. Learn more at www.essential.co.

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CAMDEN, N.J. & BRYN MAWR, Pa.--(BUSINESS WIRE)--American Water Works Company, Inc. (NYSE: AWK) (“American Water”) and Essential Utilities, Inc. (NYSE: WTRG) (“Essential Utilities”) today announced that the Kentucky Public Service Commission (PSC) has approved the companies’ proposed merger, marking the first regulatory approval obtained in the path toward completing the combination of the two companies.

The Kentucky PSC’s approval follows the overwhelming approval of the transaction by shareholders of both companies at their respective special shareholder meetings held in February 2026. The all-stock transaction, announced October 27, 2025, will create a combined company serving more than 4.7 million water and wastewater customer connections and more than 740,000 gas customer connections. The combined company will operate under the American Water name and be headquartered in Camden, New Jersey.

The merger is expected to close by the end of the first quarter of 2027, but remains subject to customary closing conditions, including, among others, clearance under the Hart-Scott-Rodino Act, and required regulatory approvals, including approval from applicable public utility commissions.

For additional details regarding the transaction, please visit americanwateressentialutilitiesmerger.com.

About American Water

American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States. With a history dating back to 1886 and celebrating 140 years in 2026, We Keep Life Flowing® by providing safe, clean, reliable and affordable drinking water and wastewater services to approximately 14 million people with regulated operations in 14 states and on 18 military installations. American Water’s approximately 7,000 talented professionals leverage their significant expertise and the company’s national size and scale to achieve excellent outcomes for the benefit of customers, employees, investors and other stakeholders. For more information, visit amwater.com and join American Water on LinkedIn, Facebook, X and Instagram.

About Essential Utilities

Essential Utilities, Inc. (NYSE: WTRG) delivers safe, clean, reliable services that improve quality of life for individuals, families, and entire communities. With a focus on water, wastewater and natural gas, Essential is committed to sustainable growth, operational excellence, a superior customer experience, and premier employer status. We are advocates for the communities we serve and are dedicated stewards of natural lands, protecting thousands of acres of forests and other habitats throughout our footprint. Operating as the Aqua and Peoples brands, Essential serves approximately 5.5 million people across nine states. Essential is one of the most significant publicly traded water, wastewater service and natural gas providers in the U.S. Learn more at www.essential.co.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements included in this communication are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In some cases, these forward-looking statements can be identified by words with prospective meanings such as “intend,” “plan,” “estimate,” “believe,” “anticipate,” “expect,” “predict,” “project,” “propose,” “assume,” “forecast,” “outlook,” “future,” “likely,” “pending,” “goal,” “objective,” “potential,” “continue,” “seek to,” “may,” “can,” “will,” “should” and “could,” or the negative of such terms or other variations or similar expressions. Forward-looking statements may relate to, among other things: statements about the benefits of the proposed merger, including future financial and operating results; the parties’ respective plans, objectives, expectations and intentions; the expected timing and likelihood of completion of the merger and related transactions; the results of any strategic review; expected synergies of the proposed merger; the timing and result of various regulatory proceedings related to the proposed merger, and other general rate cases, filings for infrastructure surcharges and other governmental agency authorizations and proceedings, and filings to address regulatory lag; the combined company’s ability to execute its current and long-term business, operational, capital expenditures and growth plans and strategies; the amount, allocation and timing of projected capital expenditures and related funding requirements; the future impacts of increased or increasing transaction and financing costs associated with the proposed merger or otherwise, as well as inflation and interest rates; each party’s ability to finance current and projected operations, capital expenditure needs and growth initiatives by accessing the debt and equity capital markets and sources of short-term liquidity; impacts of the proposed merger on the future settlement or settlements of a party’s forward sale agreements, including potential adjustments to the forward sale price or other economic terms thereunder, and the amount of and the intended use of net proceeds from any such future settlement or settlements; the outcome and impact on other governmental and regulatory investigations; the filing of class action lawsuits and other litigation and legal proceedings related to the proposed merger; the ability to complete, and the timing and efficacy of, the design, development, implementation and improvement of technology and other strategic initiatives; each party’s ability to comply with new and changing environmental regulations; regulatory, legislative, tax policy or legal developments; and impacts that future significant tax legislation may have on each such party and on its business, results of operations, cash flows and liquidity.

These forward-looking statements are predictions based on currently available information, the parties’ current respective expectations and assumptions regarding future events that American Water Works Company, Inc. (“American Water”) and Essential Utilities, Inc. (“Essential Utilities”) believe to be reasonable. They are not, however, guarantees or assurances of any outcomes, performance or achievements, and readers are cautioned not to place undue reliance upon them. You should not regard any forward-looking statement as a representation or warranty by American Water, Essential Utilities or any other person that the expectation, plan or objective expressed in such forward-looking statement will be successfully achieved in any specified time frame, or at all. The forward-looking statements are subject to a number of estimates and assumptions, and known and unknown risks, uncertainties and other factors. Actual results may differ materially from those discussed in the forward-looking statements included in this communication as a result of the factors discussed in American Water’s Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission (the “SEC”) on February 18, 2026 (available at: ir.amwater.com), Essential Utilities’ Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 26, 2026 (available at: essential.co), and each party’s other filings with the SEC, and additional risks and uncertainties, including with respect to (1) the parties’ ability to consummate the proposed merger pursuant to the terms of the definitive merger agreement or at all; (2) each party’s requirement to obtain required governmental and regulatory approvals required for the proposed merger (and/or that such approvals may result in the imposition of burdensome or commercially undesirable conditions, including required dispositions, that could adversely affect the combined company or the expected benefits of the proposed merger); (3) an event, change or other circumstance that could give rise to the termination of the merger agreement; (4) the failure to satisfy or waive a condition to closing of the proposed merger on a timely basis or at all; (5) a delay in the timing to consummate the proposed merger; (6) the failure to integrate the parties’ businesses successfully; (7) the failure to fully realize benefits, efficiencies and cost savings from the proposed merger or that such benefits, efficiencies and cost savings may take longer to realize or be more costly to achieve than expected; (8) negative or adverse impacts of the announcement of the proposed merger on the market price of American Water’s or Essential Utilities’ common stock; (9) the risk of litigation, legal proceedings or other challenges related to the proposed merger; (10) disruption from the proposed merger making it more difficult to maintain relationships with customers, employees, contractors, suppliers, regulators, vendors, elected officials, governmental agencies, or other stakeholders; (11) the diversion of each party’s management’s time and attention from ongoing business operations and opportunities of such party on merger-related matters; (12) the challenging macroeconomic environment, including disruptions in the water and wastewater utility industries; (13) the ability of each party to manage its respective existing operations and financing arrangements on favorable terms or at all, including with respect to future capital expenditures and investments, operations, and maintenance costs; (14) changes in environmental laws and regulations regarding each party’s respective operations that may adversely impact such party’s businesses or increase the cost of operations; (15) changes in each party’s key management and personnel; (16) changes in tax laws that could adversely affect beneficial tax treatment of the proposed merger; (17) regulatory, legislative, local or municipal actions affecting the water and wastewater industries, which could adversely affect the parties’ respective utility subsidiaries; and (18) other economic, business and other factors, including inflation, interest rate fluctuations or tariffs. The foregoing factors should not be construed as exhaustive.

These forward-looking statements are qualified by, and should be read together with, the risks and uncertainties set forth above and the risk factors included in American Water’s and Essential Utilities’ respective annual and quarterly reports as filed with the SEC and in the definitive joint proxy statement/prospectus, as filed with the SEC on December 31, 2025 (available at: https://www.sec.gov/Archives/edgar/data/1410636/000119312525337598/d15683d424b3.htm), and readers should refer to such risks, uncertainties and risk factors in evaluating such forward-looking statements. Any forward-looking statements speak only as of the date this communication is first used or given. Neither American Water nor Essential Utilities has any obligation or intention to update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as otherwise required by the federal securities laws. New factors emerge from time to time, and it is not possible for American Water or Essential Utilities to predict all such factors. Furthermore, it may not be possible to assess the impact of any such factor on American Water’s or Essential Utilities’ businesses, viewed independently or together, or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement.

Proposed Merger

For additional information regarding the proposed merger, please see American Water’s registration statement on Form S-4 (Registration No. 333-292182), which was declared effective by the SEC on December 30, 2025, and the other documents that American Water or Essential Utilities has filed or may file with the SEC.

No Offer or Solicitation

This communication is for informational purposes and is not intended to, and shall not, constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any offer or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

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Wall Street expects a year-over-year decline in earnings on lower revenues when Essential Utilities (WTRG - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 7. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis water utility is expected to post quarterly earnings of $1.01 per share in its upcoming report, which represents a year-over-year change of -1.9%.

Revenues are expected to be $768.26 million, down 2% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.41% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Essential Utilities?For Essential Utilities, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.97%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination makes it difficult to conclusively predict that Essential Utilities will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Essential Utilities would post earnings of $0.36 per share when it actually produced earnings of $0.47, delivering a surprise of +30.56%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Essential Utilities doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Essential Utilities (WTRG - Free Report) came out with quarterly earnings of $0.83 per share, missing the Zacks Consensus Estimate of $1.01 per share. This compares to earnings of $1.03 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -17.82%. A quarter ago, it was expected that this water utility would post earnings of $0.36 per share when it actually produced earnings of $0.47, delivering a surprise of +30.56%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Essential Utilities, which belongs to the Zacks Utility - Water Supply industry, posted revenues of $861.76 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 12.17%. This compares to year-ago revenues of $783.63 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Essential Utilities shares have lost about 2.3% since the beginning of the year versus the S&P 500's gain of 6%.

What's Next for Essential Utilities?While Essential Utilities has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Essential Utilities was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.36 on $503.4 million in revenues for the coming quarter and $2.25 on $2.47 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Water Supply is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Global Water Resources, Inc. (GWRS - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 14.

This company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of -200%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Global Water Resources, Inc.'s revenues are expected to be $13 million, up 4.3% from the year-ago quarter.

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Company invested a record $791 million in water and wastewater infrastructure in 2025, achieved 99.91% regulatory compliance, and is accelerating a $450 million PFAS capital plan to protect drinking water quality across eight states

BRYN MAWR, Pa.--(BUSINESS WIRE)--Essential Utilities, Inc. (NYSE: WTRG) joins communities across North America in celebrating Drinking Water Week (May 3–9, 2026), the annual observance led by the American Water Works Association (AWWA) that recognizes the critical role safe, clean drinking water plays in public health and quality of life.

As the company marks this year’s celebration, Essential Utilities reflects on a year of record performance through its water utility, Aqua – delivering safe, reliable water service to more than 1.1 million customers across eight states while investing nearly $791 million in water and wastewater infrastructure, the largest annual capital investment in the company’s history.

"Drinking Water Week is a chance to recognize what our teams deliver every day: safe, clean, reliable water to millions of families, businesses and communities who depend on us,” said Christopher Franklin, chairman and CEO of Essential Utilities. "In 2025, we set a new record for infrastructure investment, advanced our comprehensive PFAS remediation program, and maintained industry-leading compliance rates. We operate every day in the pursuit of excellence, and this is what it looks like.”

Aqua's water operations achieved a 99.91% compliance rate in 2025, consistently outperforming national benchmarks for water quality and reflecting the company’s rigorous approach to monitoring, treatment and distribution. That commitment is backed by a state-of-the-art Environmental Laboratory in Bryn Mawr, Pennsylvania, and more than 1,500 Aqua employees, including water quality scientists, engineers and field operators, who work 24/7 to ensure customers receive water that meets or exceeds federal and state standards.

The company is also a national leader in addressing PFAS contamination, executing a $450 million multi-year capital plan to ensure finished water does not exceed federal maximum contaminant levels for the six EPA-regulated PFAS chemicals.

Investing in the Future

Essential Utilities invested a record $1.4 billion across its regulated water and natural gas systems in 2025 and has committed to $1.7 billion in infrastructure investment in 2026. These investments modernize aging pipelines, fund treatment plant upgrades, and improve monitoring technology to ensure safe, reliable service for future generations.

Beyond the pipes, Essential is a dedicated steward of the natural lands and watersheds that make safe drinking water possible. The company protects thousands of acres of forests and sensitive habitats throughout its footprint.

Visit AquaWater.com for more information about water quality programs and learn more about Essential’s broader commitment at sustainability.Essential.co.

About Essential

Essential Utilities, Inc. (NYSE:WTRG) delivers safe, reliable services that improve quality of life for individuals, families and entire communities. With a focus on water, wastewater and natural gas, Essential is committed to sustainable growth, operational excellence, a superior customer experience and premier employer status. We are advocates for the communities we serve, donating more than $4 million from the Essential Foundation each year, and are dedicated stewards of natural lands, protecting thousands of acres of forests and other habitats throughout our footprint. Operating as the Aqua and Peoples brands, Essential serves approximately 5.5 million people across 9 states. Essential is one of the most significant publicly traded water, wastewater service and natural gas providers in the U.S. Learn more at www.essential.co.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates” and similar expressions. The Company can give no assurance that any actual or future results or events discussed in these statements will be achieved. Any forward-looking statements represent its views only as of today and should not be relied upon as representing its views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause the company’s actual results to differ materially from the statements contained in this release. Such forward-looking statements include, but are not limited to statements relating to the capital to be invested by the water, wastewater, and gas distribution divisions of the Company. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including the factors discussed in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, which is filed with the Securities and Exchange Commission. For more information regarding risks and uncertainties associated with the Company’s business, please refer to the Company’s annual, quarterly and other SEC filings. The Company is not under any obligation - and expressly disclaims any such obligation - to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

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Company Foundation and volunteers support environmental initiatives across 9-state footprint

BRYN MAWR, Pa.--(BUSINESS WIRE)--Essential Utilities Inc. (NYSE: WTRG) successfully concluded its fifth annual Essential Earth Day campaign, a 30-day effort dedicated to environmental stewardship and community engagement. This year’s effort resulted in record-breaking achievements, reaffirming Essential’s commitment to protecting the environment and safeguarding natural resources.

Donated nearly $1.3 million in grants supporting dozens of organizations working on environmental projects and STEM education Empowered more than 400 employees to volunteer 1,450 hours across nearly 40 volunteer events Provided employees with educational programs on sustainability and environmental health “As stewards of our natural resources, we understand our tremendous responsibility to protect the environment for future generations,” said Essential Utilities Chairman and CEO Christopher Franklin. “This commitment is especially evident during our month-long Essential Earth Day campaign. Each year, I’m incredibly proud of our Essential Foundation’s environmental work, as well as my Essential colleagues who donate their time to make the communities we serve cleaner and greener.”

Employees throughout the company’s nine-state footprint participated in a variety of volunteer activities, including:

Cleaning up almost 300 bags of litter and other debris from alongside rivers, trails and roadways Removing invasive weeds and planting close to 3,500 native trees and wildflowers to improve habitat and beautify public spaces Removing harmful growth from a berm that protects the Ohio River Basin from the spread of invasive carp Hosting a collection drive and sorting event to keep clothing out of landfills and provide for families in need Recycling 300 pounds of electronics from an e-waste collection event These volunteer efforts from Essential employees are crucial in supporting local environmental organizations and our communities at large. The Essential Earth Day initiative weaves multi-faceted support for our environmental partners, often year after year, to boost their impact. The Chester-Ridley-Crum Watersheds Association is one such partner working to tackle issues like protecting waterways that provide drinking water for Aqua customers in southeast Pennsylvania.

“We cannot express enough how much we appreciate Essential’s constant engagement and support,” said Carly Lare, Executive Director of the Chester-Ridley-Crum Watersheds Association. “The Essential Foundation's financial support allows us to create meaningful solutions in our communities, and Essential’s volunteers have shared their expertise to make real change possible.”

Partners like Pittsburgh Parks Conservancy are dedicated to restoring and enhancing Pittsburgh’s city parks, green spaces the community relies on for relaxation, recreation, health, and well-being. As the Conservancy celebrates 30 years of their park systems, funding from the Essential Foundation will help to expand educational programming, invest in park improvement projects, and strengthen climate resiliency across the city's parks.

“We’re incredibly grateful to Peoples Natural Gas and the Essential Foundation for their continued partnership and belief in our parks,” said Catherine Qureshi, President and CEO of the Pittsburgh Parks Conservancy. “Every day, we see how these spaces bring people together­—families, neighbors, and visitors­—finding connection, joy, and lasting moments outdoors. Support like this helps ensure Pittsburgh’s parks remain welcoming, vibrant places that serve our communities now and well into the future.”

Think Globally, Act Locally—Make Earth Day Every Day

Essential Earth Day is part of the company’s comprehensive commitment to the environment and the communities it serves. Since the initiative launched in 2022, Essential has donated more than $4.2 million and more than 2,200 employees have participated in nearly 200 events, logging more than 7,900 hours to support environmental causes, including litter cleanups, reforestation projects and other conservation efforts. The company remains dedicated to providing high-quality water, reliable natural gas service, and fostering a sustainable future for generations to come.

Essential’s commitment to philanthropy and the environment recently resulted in the company’s recognition as one of America’s Most Charitable Companies by Newsweek.

About Essential Utilities

Essential Utilities, Inc. (NYSE:WTRG) delivers safe, reliable services that improve quality of life for individuals, families and entire communities. With a focus on water, wastewater and natural gas, Essential is committed to sustainable growth, operational excellence, a superior customer experience and premier employer status. We are advocates for the communities we serve, having donated more than $4 million from the Essential Foundation each year, and are dedicated stewards of natural lands, protecting thousands of acres of forests and other habitats throughout our footprint.

Operating as the Aqua and Peoples brands, Essential serves approximately 5.5 million people across 9 states. Essential is one of the most significant publicly traded water, wastewater service and natural gas providers in the U.S. Learn more at www.essential.co.

More News From Essential Utilities Inc.

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A month has gone by since the last earnings report for Essential Utilities (WTRG - Free Report) . Shares have lost about 2.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Essential Utilities due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Essential Utilities Q1 Earnings Lag, Revenues Surpass Estimates

Essential Utilities Inc. reported first-quarter 2026 operating earnings per share (EPS) of 83 cents, which lagged the Zacks Consensus Estimate of $1.01 by 17.82%. The bottom line decreased 19.41% from $1.03 in the year-ago quarter.

WTRG’s first-quarter GAAP earnings were 79 cents compared with $1.03 reported in the year-ago quarter. The difference between GAAP and operating earnings was due to the impact of merger-related expenses incurred in the quarter.

Revenues of WTRGOperating revenues of $862 million surpassed the Zacks Consensus Estimate of $768 million by 12.17%. The top line rose nearly 10% from the prior-year quarter’s $783.6 million. The improvement in total revenues was due to additional revenues from regulatory recoveries and purchased gas costs.

WTRG’s Segment DetailsEssential Utilities’ water segment reported revenues for the quarter of $323 million, an increase of 7.4% compared to $300.8 million in the first quarter of 2025. The year-over-year improvement was due to regulatory recoveries and increased volume.

WTRG’s regulated natural gas segment reported quarterly revenues of $529.4 million, up from $470.8 million in the first quarter of 2025, primarily driven by higher purchased gas costs, increased regulatory recoveries and the impact of weather normalization adjustments.

Highlights of WTRG’s Q1 ReleaseTotal operating expenses amounted to $551.1 million, up 23.9% from the year-ago figure of $444.7 million due to increases in purchased gas costs, and higher operation and maintenance expenses than the previous year period.

Operating income totaled $310.6 million, down 8.4% year over year. The year-over-year decline was due to an increase in operating expenses.

   Interest expenses increased 6.33% to $87.3 million from $79.3 million in the prior-year quarter.

 The company continues to expand its operations through acquisitions and organic initiatives. The pending acquisition, if closed, can add more than 200,000 customers to Essential Utilities’ customer base.

So far in 2026, the company’s regulated water segment has secured rate awards and infrastructure surcharges expected to increase annual revenues by $5.7 million across Illinois, Indiana, Pennsylvania and Ohio. Its regulated natural gas segment also received rate awards and infrastructure surcharges in Kentucky and Pennsylvania, projected to add $9.4 million in annual revenues.

WTRG’s Financial HighlightsCurrent assets amounted to $622.6 million as of March 1, 2026, compared with $610.4 million as of Dec. 31, 2025.

Long-term debt was $8.36 billion as of March 31, 2026, up from $8.11 billion as of Dec. 31, 2025.

Essential Utilities invested nearly $269 million during the first three months of 2026 to strengthen its regulated water and natural gas infrastructure systems and improve customer service across its operations.

Essential Utilities is on track to invest $1.7 billion in infrastructure in 2026.

Latest Update on the Merger With American Water WorksEssential Utilities is moving forward with its previously announced merger deal with American Water Works by securing the necessary regulatory consents and approvals. During 2025, the company submitted applications for regulatory clearance in the applicable states.

On Feb. 10, 2026, shareholders of both companies overwhelmingly approved the merger-related proposals. Essential Utilities has also secured key regulatory approvals, including clearance from the Kentucky Public Utility Commission on April 20, 2026. The merger remains on schedule to close in the first quarter of 2027.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 5.56% due to these changes.

VGM ScoresCurrently, Essential Utilities has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, Essential Utilities has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerEssential Utilities is part of the Zacks Utility - Water Supply industry. Over the past month, California Water Service Group (CWT - Free Report) , a stock from the same industry, has gained 3.7%. The company reported its results for the quarter ended March 2026 more than a month ago.

California Water Service Group reported revenues of $214.57 million in the last reported quarter, representing a year-over-year change of +5.2%. EPS of $0.07 for the same period compares with $0.22 a year ago.

California Water Service Group is expected to post earnings of $0.79 per share for the current quarter, representing a year-over-year change of +11.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.3%.

California Water Service Group has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

Western Union (NYSE:WU) reported first-quarter 2026 revenue of about $1.0 billion and said it is seeing early signs of stabilization in the U.S. remittance market, even as profitability fell short of management’s expectations due to a mix of seasonal factors, investment spending, and a foreign exchange loss.

Chief Executive Officer Devin McGranahan said the company is “beginning to show stabilization and even potentially signs of improvement” in key U.S.-to-Latin America corridors after steep declines in 2025, while also outlining a series of recent and pending acquisitions and upcoming launches tied to the company’s digital asset strategy.

Quarter results show improving transaction trends, but lower EPS In the quarter, Western Union reported GAAP revenue of $983 million, according to CFO Matt Cagwin. McGranahan said the company reported $1 billion of revenue and that, on an adjusted basis, revenue declined 1% year-over-year—an improvement of roughly 400 basis points from the fourth quarter.

McGranahan said Consumer Money Transfer (CMT) transactions were “slightly positive” year-over-year for the first time since the first quarter of 2025, while cross-border principal again grew at a mid-single-digit pace. However, adjusted earnings per share fell to $0.25 from $0.41 a year earlier. McGranahan said the EPS result was “below our expectations,” attributing the outcome to quarter-specific items and a seasonal change linked to the growth of the Travel Money business.

Cagwin said adjusted operating margin was 13% and reiterated that the company had previously flagged the first quarter as a lower margin period. He cited several drivers:

Absence of vendor incentive payments in Q1, which he said the company expects to receive later in the year Higher costs tied to new agent signings A foreign currency loss Seasonality in Travel Money, which has “lower fixed cost coverage” in the first quarter During the Q&A, Cagwin said roughly half of the year-over-year earnings decline was tied to factors management anticipated, including vendor incentive timing and Travel Money seasonality. He added that two items were not anticipated eight weeks earlier: an FX loss that was “multiple pennies of EPS,” and what he described as a temporary “dislocation” in the company’s “dual track” of investing for growth while pulling costs out of legacy operations.

Americas remittances stabilize; branded digital growth accelerates McGranahan said Western Union’s retail business in the Americas continued to face headwinds linked to geopolitical conditions, but that performance has improved from the “steep declines” seen in mid-2025. He pointed to strength in a number of corridors—such as Italy to Morocco, France to Cameroon, and Kuwait to Bangladesh—while noting continued weakness in the Americas, particularly the U.S. to Mexico corridor. Still, he said the U.S.-to-Mexico transaction growth rate improved by 350 basis points compared with the fourth quarter.

McGranahan also highlighted signs of improved trends across corridors such as U.S. to Ecuador and U.S. to Guatemala, while noting not all markets have improved, citing U.S. to Colombia as still weak. He said March revenue growth rates in several corridors were “800 basis points or better” relative to lows last summer.

On the digital side, McGranahan said Branded Digital transactions grew 21% and adjusted revenue rose 6%, driven by relationships signed in the Middle East. He said the gap between transaction and revenue growth reflected mix and pricing factors, including growth in “lower RPT corridors,” continued increases in payout to account, and promotional offers aimed at customer acquisition. Cagwin added that the quarter marked the 10th consecutive quarter of revenue growth for Branded Digital, with the Middle East described as a major growth region.

Cagwin said account payout transactions grew more than 45% in the quarter, calling it the strongest quarterly growth Western Union has seen in four years.

Consumer Services boosted by Travel Money and bill pay Consumer Services adjusted revenue increased 33% in the quarter, driven by Travel Money—led by eurochange—and growth in consumer bill pay, management said. Consumer Services represented 14% of total revenue in the quarter, according to Cagwin.

McGranahan said the Travel Money business is expected to approach $150 million in revenue in 2026, “up from nearly nothing a few years ago.” Cagwin said Western Union expects Travel Money to be a $150 million business this year and said the company sees a “durable path to double-digit growth” in the Consumer Services segment over time, driven by organic expansion, acquisitions, and digital innovation.

McGranahan also discussed how the conflict in the Middle East affected results: he said travel from Europe to the Middle East declined, which hurt Travel Money in the U.K. in the first quarter, while outbound remittances from the region saw “a moderate acceleration” early in the conflict.

M&A: Lana and Dash closed; Intermex pending McGranahan said Western Union has shifted from “complete capital return” to a more balanced approach that includes targeted acquisitions intended to expand corridor strength, platform functionality, and product offerings.

He said the company closed the acquisition of Lana in Mexico last month. McGranahan said the deal provides a license to launch a digital wallet in Mexico later this year on the Beyond digital platform and is expected to strengthen wallet-to-wallet capabilities. He described the opportunity as a way to enable a “two-sided network” and potentially reduce commission expense while opening new revenue streams.

Earlier in the month, Western Union completed the acquisition of Dash, Singtel’s digital wallet business in Singapore. McGranahan said Dash adds technology and distribution capabilities intended to accelerate digital onboarding and improve cross-payment efficiency in Southeast Asia. In discussing the rationale, Cagwin emphasized the importance of local licensing and talent, saying the acquisitions bring licenses and “really strong tech talent” that can help the company accelerate wallet expansion across Asia.

McGranahan said Western Union expects to close the acquisition of Intermex in the current quarter, subject to regulatory approvals, and that only one jurisdiction remains. He said the deal is expected to strengthen agent network density, improve corridor economics, and reinforce leadership in the U.S., while offering cost synergies that could exceed the company’s previously disclosed $30 million synergy target. He added he expects synergies to be “front-loaded” compared with the original two-year timeline. Cagwin said Intermex would add about 10,000 U.S. agent locations and strengthen the retail footprint in key Latin America corridors.

Separately, management reiterated that eurochange has added scale to the company’s Travel Money platform in the U.K.

Digital assets: stablecoin, network launch, and Stable Card rollout McGranahan said Western Union is moving from “launch readiness” to scaling in digital assets. He said the company’s U.S. dollar-backed stablecoin, USDPT, is in its final stages of readiness and “expected to go live next month.” He described USDPT’s initial role as an institutional tool rather than a consumer product, aimed at improving settlement processes with agent partners compared with traditional banking rails.

He also said Western Union’s Digital Asset Network (DAN) is set to launch its first partner “next week,” enabling digital asset wallet users to convert to local currency using Western Union’s retail network. McGranahan said the partner pipeline represents “tens of millions of crypto wallets globally.”

Looking further ahead, McGranahan said the company plans to launch a consumer-oriented “U.S. dollar Stable Card” later this year, allowing customers to hold value in stablecoin form and spend globally wherever cards are accepted. He said the initial rollout is expected across “dozens of markets” later in 2026, with initial launches in select countries within the next 90 to 180 days.

Cash flow, capital return, and 2026 outlook reaffirmed Western Union generated $109 million in operating cash flow in the first quarter, down 26% year-over-year due to lower operating profit, Cagwin said. Capital expenditures were $47 million, up year-over-year, driven by higher agent signing bonuses. The company ended the quarter with $900 million in cash flow equivalence and $2.6 billion of debt, with gross and net leverage of 2.8x and 1.8x, respectively, according to Cagwin.

The company returned more than $120 million to shareholders through dividends and stock repurchases during the quarter. Cagwin also said the Intermex acquisition will be funded with a delayed draw bank facility, and leverage is expected to be elevated for 12 to 18 months after closing.

For full-year 2026, Cagwin reaffirmed guidance, assuming “no macroeconomic changes and no significant impact from the conflict in the Middle East.” The company continues to expect adjusted revenue growth of 6% to 9%, inclusive of the Intermex acquisition, and adjusted EPS of $1.75 to $1.85. Cagwin said he expects second-quarter EPS to be similar to last year and to accelerate in the back half of 2026 on improving remittance trends, new agent wins, Travel Money seasonality, and benefits from operating efficiency efforts, including Intermex synergies and lower vendor and labor costs supported by process optimization and AI.

About Western Union (NYSE:WU) Western Union Company (NYSE: WU) is a global leader in cross-border, cross-currency money movement and payments. The company enables individuals and businesses to send and receive money through a variety of channels, including its vast agent network, online platforms, and mobile applications. Core services include person-to-person money transfers, business-to-business cross-border payments, bill payment services and prepaid card programs.

Through its digital offerings, Western Union provides customers with the ability to initiate transfers via its website and mobile app, as well as track transactions in real time.

Featured Articles Five stocks we like better than Western Union

Fireblocks will provide the wallet, settlement, and financial operations infrastructure for Western Union's digital dollar, extending access and creating the foundation for a broader set of financial services to consumers in the Philippines and Bolivia, with global rollout planned through 2026.    

, /PRNewswire/ -- Western Union (NYSE: WU) today announced it has selected Fireblocks, the enterprise platform securing more than $14 trillion in digital asset transactions, to provide the core infrastructure behind USDPT, Western Union's U.S. dollar-backed stablecoin. Fireblocks' platform, along with Dynamic's embedded wallet and TRES' financial platform, both recently acquired by Fireblocks, will power Western Union's ability to settle with agents in USDPT across Western Union's global network this year.

Western Union has built its business on giving people fast, reliable access to money across borders. USDPT carries that legacy onto stablecoin rails. Fireblocks provides the unified infrastructure that lets Western Union operate USDPT at scale and better serve customers who live in markets where access to U.S. dollars is limited, local currencies are volatile or formal banking is out of reach. With USDPT, they will be able to hold value in dollars, choose when and how to convert into local currency and use those balances for spending and transfers across Western Union's network.

"Stablecoins are the foundation of how we deliver the next generation of settlement and consumer services in an evolving digital ecosystem," said Malcolm Clarke, Global Head of Digital Assetsat Western Union. "It puts a programmable dollar into our vast ecosystem and provides Western Union a platform from where we can continue to deliver customer utility and value. Working with Fireblocks, Dynamic and TRES provide a key part of our infrastructure enabling us to operationalize safely and securely at scale from day one."

The Infrastructure Powering USDPT
Western Union is building USDPT treasury operations on the Fireblocks platform, which delivers the wallet, settlement and financial operations layer required to launch a regulated stablecoin program across a global consumer network.

Fireblocks is the treasury bridge giving Western Union end-to-end control over USDPT's flow from treasury operations to tellers and consumers. The platform provides custody, policy controls and the Payments Engine for issuance and movement, with the Fireblocks Network connecting Western Union to 2,400+ institutional counterparties across 100+ countries for liquidity and settlement. Dynamic delivers the non-custodial embedded wallets that hold USDPT for Western Union's agents. These secured wallets are the basis for the additional services WU could deploy over time.. TRES consolidates onchain data from across Western Union's USDPT stack, including wallet operations, treasury management and qualified custody, and translates it into the SWIFT MT940 and MT942 bank statement formats Western Union's treasury and finance systems already run on. The output flows directly into existing financial reporting cycles, letting USDPT operate inside Western Union's day-to-day reporting environment from launch. "Remittance and cross-border payments are where stablecoin infrastructure proves its value in production," said Ran Goldi, SVP Payments and Network at Fireblocks. "Western Union operates one of the most complex global money movement networks in the world. Operationalizing a digital dollar across that network requires wallet infrastructure, settlement connectivity, and financial operations that work with the systems Western Union already runs. That is what Fireblocks, Dynamic and TRES deliver together."

Global Rollout
USDPT operations on Fireblocks will roll out initially across two markets, the Philippines and Bolivia, with expansion across Western Union's global network through 2026. The rollout aligns with Western Union's broader strategy to modernize its settlement infrastructure and strengthen its competitive position as the global payments industry moves onchain.

"Every major shift in financial services requires infrastructure that can keep pace," said Michael Shaulov, CEO and Co-Founder of Fireblocks. "Western Union has operated the rails of global money movement for more than 170 years. Building USDPT on Fireblocks represents a generational modernization of that infrastructure, and we're proud to be the platform they've chosen to build it on."

About Fireblocks
Fireblocks is the world's most trusted digital asset infrastructure company, empowering organizations of all sizes to build, manage and grow their business on the blockchain. With the industry's most scalable and secure platform, we streamline stablecoin payments, settlement, custody, tokenization, trading, accounting operations, and compliance reporting, enabling everything from institutional finance to consumer-facing digital experiences across the largest ecosystem of banks, payment providers, stablecoin issuers, exchanges and custodians. Thousands of organizations, including Worldpay, BNY, Galaxy, and Revolut, trust Fireblocks to secure more than $14 trillion in digital asset transactions across 150+ blockchains. Learn more at fireblocks.com.

About Western Union
The Western Union Company (NYSE: WU) is committed to helping people around the world who aspire to build financial futures for themselves, their loved ones and their communities. Our leading cross-border, cross-currency money movement, payments and digital financial services empower consumers, businesses, financial institutions and governments—across more than 200 countries and territories and over 130 currencies—to connect with billions of bank accounts, millions of digital wallets and cards, and a global footprint of hundreds of thousands of retail locations. Our goal is to offer accessible financial services that help people and communities prosper. For more information, visit www.westernunion.com.

SOURCE Fireblocks

For years, investors have categorized The Western Union Company NYSE: WU as a high-yield value trap, a legacy institution slowly ceding ground to more agile fintech disruptors like Remitly Global Inc. NASDAQ: RELY and Wise plc OTCMKTS: WPLCF. Western Union's Q1 2026 earnings report seemed to confirm this narrative.

An earnings miss, with earnings per share (EPS) coming in at 25 cents against a 40-cent consensus, was driven by the very friction its digital competitors were built to avoid: unexpected operational costs and significant foreign exchange losses in its core Americas retail segment. Yet, buried beneath the headline miss was the launch of a catalyst engineered to systematically dismantle these legacy headwinds.

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WU

Western Union

$7.58 +0.26 (+3.48%)

As of 03:47 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$7.24▼

$10.35Dividend Yield12.41%

P/E Ratio5.56

Price Target$8.82

Western Union's deployment of USDPT, a U.S. dollar-denominated stablecoin on the high-throughput Solana network, represents a foundational shift in its operational architecture.

By moving toward near-instant, 24/7 on-chain settlement, Western Union is engineering a direct bypass of the costly, slow correspondent banking system that has long squeezed its margins.

This technological pivot is not a superficial marketing initiative but a strategic overhaul aimed at improving core performance and profitability, a move that demands a fresh look from capital allocators focused on value and growth. For Western Union, this new strategic move isn't just about playing defense; it's about building a modern settlement layer to compete in the next decade.

The Blueprint for an Institutional-Grade Digital MoatSkepticism surrounding legacy companies entering the digital asset space is warranted, but Western Union's approach appears calculated and institutionally sound. Western Union has assembled a partnership stack featuring best-in-class digital asset infrastructure providers to de-risk execution and signal its seriousness to the market.

Building With Blockchain's A-TeamThe operational backbone of the USDPT initiative is powered by Fireblocks, a leader in enterprise-grade digital asset custody known for its multi-party computation (MPC) wallet architecture. Fireblocks will manage wallet infrastructure, custody, and settlement operations, leveraging its recently acquired assets, Dynamic for embedded wallets and TRES for financial operations, to support Western Union's global agent network. Regulated token issuance is handled by Anchorage Digital, ensuring a compliant and secure foundation for the stablecoin's rollout. This new strategy has seemingly advanced past a speculative experiment to an enterprise-level integration designed for security, regulatory adherence, and massive scale.

From Backend Savings to Frontend RevenueThe strategic logic extends beyond mere cost-cutting. The initial phase focuses on using USDPT to streamline internal treasury and settlement functions, directly addressing the forex vulnerabilities that battered first-quarter earnings. The more compelling, long-term opportunity lies in the consumer-facing pipeline. Western Union plans to launch Stable by Western Union, a retail spend product, across more than 40 countries by the end of 2026. This transforms the stablecoin from a backend efficiency tool into a comprehensive frontend ecosystem, opening new channels for customer acquisition and revenue generation in a fiercely competitive market.

A Deep Value Disconnect Meets a Wall of WorryThe market has yet to price in the potential for this digital transformation. Shares of Western Union currently trade at a trailing price-to-earnings (P/E) ratio of just 6.7X and a forward P/E of 5.2X. This compressed valuation is paired with a hearty 10% dividend yield.

Overall MarketRank™83rd Percentile

Analyst RatingReduce

Upside/Downside17.0% Upside

Short Interest LevelBearish

Dividend StrengthStrong

News Sentiment0.84 Insider TradingSelling Shares

Proj. Earnings Growth9.66%

See Full Analysis

An analysis of the dividend's sustainability reveals a payout ratio of 69% against trailing earnings and a more comfortable 41% against cash flow, suggesting the distribution is well-covered in the near term. Further underpinning the stock is the continuation of a $1 billion share repurchase program that authorizes Western Union to buy back up to 27.5% of its outstanding shares.

This deep value proposition is contrasted by a significant wall of worry. The analyst consensus rating for the stock remains a Reduce, with the average price target of $8.82 sitting below its current trading level. This bearish sentiment is amplified by recent insider selling. Furthermore, elevated short interest, with about 13% of the public float sold short, indicates deep institutional skepticism.

This bearish positioning, however, creates the precise technical conditions for a potential short squeeze. A single positive data point on USDPT adoption or a surprise margin improvement in an upcoming earnings report could trigger a rapid wave of short covering, fueling a sharp upward move in the stock price.

The Digital Inflection Point for InvestorsThe investment thesis for Western Union now hinges on execution. The primary risk is not technological but operational: Western Union's ability to navigate a complex global rollout and realize tangible cost savings. Investors will need to monitor key performance indicators closely, including USDPT transaction volumes, as well as any specific data from management in the upcoming Q2 and Q3 earnings calls that quantify the impact on margins and forex losses.

Broader macro factors, such as the pending CLARITY Act in the U.S., could introduce regulatory uncertainty into the unit economics of stablecoin reserves, potentially influencing the venture's long-term profitability. As industry leaders have noted, a 175-year-old financial institution embracing regulated digital dollars on-chain serves as a powerful validator for the entire decentralized finance sector.

For investors, the situation presents an asymmetric risk/reward profile. Those with a higher risk tolerance may find the combination of a deep value multiple, a double-digit dividend yield, and a credible technology catalyst compelling. More conservative investors might prefer to wait for concrete data confirming that Western Union's digital pivot is translating from a strategic narrative into measurable financial improvement before committing capital.

Should You Invest $1,000 in Western Union Right Now?Before you consider Western Union, you'll want to hear this.

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Last year, Western Union announced plans to purchase money transfer service International Money Express (Intermex).

That $500 million deal is now facing pushback from New York City Mayor Zohran Mamdami, who argues the acquisition would put financial pressure on the city’s immigrants.

“Every month, thousands of working class New Yorkers use Western Union to send money to loved ones,” Mamdani wrote Thursday (May 14) on the social media platform BlueSky.

“Now Western Union wants to buy its top competitor, Intermex, so it can jack up remittance fees and squeeze families even more. Families shouldn’t pay the price for corporate monopolies.”

His post was in reference to a Wednesday (May 13) New York Times (NYT) report on a letter Mamdani sent to the New York State Department of Financial Services (NYDFS), asking them to block the deal.

The letter, obtained by the NYT, said the acquisition “would further strain the already challenging economic circumstances facing New York City’s immigrant communities.”

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As the NYT notes, Western Union and Intermex operate retail locations that let recent immigrants send money back to their home country. These remittances have been increasing as immigrants try to transmit as much money back home as they can out of fears that they may soon be deported.

Western Union’s deal, announced last August, had been expected to close during the second quarter of this year, pending regulatory approval.

According to the report, Western Union issued a response to Mamdani’s letter, telling the NYDFS that the acquisition would “ensure that accessible and affordable” services would still be available for New York City immigrants by helping it compete against digital-only rivals.

The company added that it was “committed” to retail remittances, saying that they make up around 60% of Western Union’s revenue.

During an earnings call last month, company officials say they were looking to mergers and acquisitions as a driver of growth.

This came after a quarter in which revenues were flat, thanks in part to a decline in the company’s Americas business.

“As you know, remittances in the Americas have faced meaningful pressure that began early last year and continued through this winter, particularly across our key U.S. to Latin American corridors,” Western Union President and CEO Devin McGranahan said on an earnings call.

“We saw meaningful declines to markets like Mexico, Ecuador and Guatemala, driven by a combination of migration dynamics and U.S. immigration policy.”

The company recently closed two other acquisitions, those of Lana and Dash. Western Union also acquired Eurochange in April of last year.

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The executive will lead the company's digital growth and evolution strategy in the region.

MEXICO CITY--(BUSINESS WIRE)--Western Union announces the appointment of Pedro Alegría as Vice President and General Manager for Mexico and Central America. From this position, he will lead the company's business and operation strategy in the region, with a focus on digital innovation, sustainable growth and a customer-centric value proposition.

Alegría has more than 20 years of experience in financial services, digital payments and innovation, with experience in both Mexico and the United States. Throughout his career he held leadership positions in companies such as American Express, Santa Barbara Bank & Trust, Banco Azteca and Banco Dondé, leading transformation, business growth and product development initiatives in highly competitive markets.

Prior to joining Western Union, he served as General Manager of Broxel USA, where he was in charge of the execution of the business strategy for the U.S. market. He led the development and launch of digital financial products in Mexico and the United States, including payment solutions, remittances, e-wallets, accounts, cards and cross-border platforms. His work has been recognized for its impact on financial inclusion, innovation in international transfers, and the creation of omnichannel proposals focused on underserved communities.

Alegría's appointment comes at a key moment for the company, which is advancing its Beyond strategy, aimed at evolving from a global remittance provider to a comprehensive financial services platform that accompanies people throughout their financial journey, combining digital solutions and a solid physical network. "I assume this new role with the commitment to strengthen the customer experience, through digital evolution, the expansion of our omnichannel; and the development of new products and services that accompany people's financial needs," said Pedro Alegría, Vice President and General Manager for Mexico and Central America.

Pedro has a degree in Business Administration, a Master's Degree in Innovation for Business Development from Tecnológico de Monterrey and a Diploma in Financial Technologies (Fintech, Crypto, Blockchain and AML) from UNAM. He has a strong background in leadership, digital payments, regulation, and technology transformation.

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