WisdomTree, Inc.
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
WT$19.48+2.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0001214659-25-007249
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001214659-25-011582
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 129 previous paragraphs and 171 current paragraphs.
93 unchanged; 31 reworded; 41 added; 5 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 31 previous and 36 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (41)
Current report
Pending Acquisition of Ceres Partners, LLC (“Ceres”)
Current report
On July 31, 2025, we entered into an Equity Purchase Agreement (the “Purchase Agreement”) with Ceres, pursuant to which we agreed to acquire all of the issued and outstanding equity interests of Ceres (the “Ceres Acquisition”), a leading U.S.-based alternative asset manager specializing in farmland investments. The Ceres Acquisition is expected to close in the fourth quarter of 2025, subject to the satisfaction or waiver of customary closing conditions, including, among others, obtaining regulatory approvals, required consents and financing.
Current report
Pursuant to the Purchase Agreement, we will acquire Ceres for aggregate consideration consisting of (i) $275.0 million in cash payable at closing and subject to customary post-closing adjustments, including adjustments to cash, indebtedness and working capital, and (ii) earnout consideration of up to $225.0 million, payable in 2030, contingent upon Ceres achieving a compound annual growth rate in revenue of 12% to 22% during the earnout measurement period of January 1, 2025 through December 31, 2029. For additional information about the Ceres Acquisition, see Note 21 to our Consolidated Financial Statements.
Current report
The second quarter of 2025 was dominated by uncertainty over U.S. trade tariffs. However, equities made gains as the initially announced tariffs were later suspended and recession fears receded. In fixed income markets, the focus began to turn from interest rate cuts to worries over debt sustainability. In commodities, the S&P GSCI Index declined in the quarter and both the energy and agriculture components were weak.
Current report
Digital asset markets were shaped by major regulatory and institutional developments amid macroeconomic uncertainty. Both Bitcoin and Ethereum returned more than 30% during the quarter. The U.S. Senate passed the GENIUS Act, providing long-awaited clarity for stablecoin regulation. Stablecoins are now being implemented by some of the largest financial institutions, fintech firms and crypto native issuers globally.
Current report
(1) Includes 17 digital assets products, which were launched prior to January 1, 2025.
Current report
Third-party distribution fees increased 52.0% from $2.7 million during the three months ended June 30, 2024 to $4.1 million in the comparable period in 2025 due to our strong organic growth and AUM expansion across our distribution platforms.
Current report
Acquisition-related Costs
Current report
During the three months ended June 30, 2025, we recorded $2.0 million of acquisition-related costs, comprised of professional fees related to the Ceres Acquisition.
Current report
Other gains and losses, net
Current report
Our effective income tax rate during the three months ended June 30, 2025 was 22.3%, resulting in income tax expense of $7.1 million. The effective tax rate differs from the federal statutory rate of 21.0% primarily due to state and local income taxes, partly offset by a lower tax rate on foreign earnings.
Current report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Current report
Selected Operating and Financial Information
Current report
Operating Revenues
Current report
Advisory fees
Current report
Advisory fee revenues increased 5.9% from $191.4 million during the six months ended June 30, 2024 to $202.8 million in the comparable period in 2025 primarily due to higher average AUM, partly offset by a lower average advisory fee. Our average advisory fee was 0.37% during the six months ended June 30, 2024 and 0.35% during the comparable period in 2025.
Current report
Other revenues
Current report
Other revenues increased 44.1% from $12.4 million during the six months ended June 30, 2024 to $17.9 million in the comparable period in 2025 due to higher other revenues attributable to our European listed products.
Current report
Operating Expenses
Current report
Compensation and benefits
Current report
Fund management and administration
Current report
Fund management and administration expense increased 4.7% from $40.1 million during the six months ended June 30, 2024 to $42.0 million in the comparable period in 2025 primarily due to higher average AUM.
Current report
Marketing and advertising
Current report
Marketing and advertising expense increased 6.6% from $9.5 million during the six months ended June 30, 2024 to $10.1 million in the comparable period in 2025 primarily due to higher spending related to our U.S. listed products.
Current report
Sales and business development
Current report
Professional fees
Current report
Professional fees decreased 41.7% from $10.2 million during the six months ended June 30, 2024 to $6.0 million in the comparable period in 2025 primarily as the prior period included expenses incurred in response to an activist campaign and in connection with the SEC ESG Settlement.
Current report
Occupancy, communications and equipment
Current report
Depreciation and amortization
Current report
Depreciation and amortization expense increased 39.8% from $0.8 million during the six months ended June 30, 2024 to $1.1 million in the comparable period in 2025 due to amortization of software development costs.
Current report
Third-party distribution fees
Current report
Third-party distribution fees increased 44.1% from $5.0 million during the six months ended June 30, 2024 to $7.2 million in the comparable period in 2025 due to our strong organic growth and AUM expansion across our distribution platforms.
Current report
Acquisition-related Costs
Current report
During the six months ended June 30, 2025, we recorded $2.0 million of acquisition-related costs, comprised of professional fees related to the Ceres Acquisition.
Current report
Other
Current report
Other Income/(Expenses)
Current report
Interest expense
Current report
Interest income
Current report
Interest income increased 40.6% from $2.8 million during the six months ended June 30, 2024 to $4.0 million in the comparable period in 2025 due to a higher level of interest-earning assets.
Current report
Other gains, net
Showing the first 40 of 41 passages. Open the source sections for the rest.
Removed paragraphs (5)
Previous report
The first quarter of 2025 was characterized by global volatility. U.S. equities declined amid concerns over tariffs, while European markets outperformed, supported in part by Germany’s announced fiscal stimulus measures. Investor uncertainty surrounding the potential impact of tariffs on global economic growth contributed to increased demand for safe haven assets, including gold, which experienced significant price appreciation during the quarter. In March 2025, the U.S. Federal Reserve revised its 2025 U.S. GDP growth forecast for 2025 downward to 1.7% from 2.1% and increased its inflation outlook to 2.7% from 2.5%. The federal funds target rate remained unchanged during the quarter, within a range of 4.25% to 4.50%.
Previous report
While the volatility factors above have inevitably impacted our overall AUM, our diverse and balanced AUM mix has provided relative stability, enabling us to mitigate the severity of declines compared to broader market indices. Our strategic emphasis on diversification, including exposure across asset classes, geographic regions and investment strategies, has allowed us to maintain resilience during periods of elevated uncertainty, underscoring the strength and effectiveness of our business model. However, fluctuations in our AUM attributable to market conditions outside of our control have had, and in the future could have, a negative impact on our revenues and operating margins.
Previous report
Third-party distribution fees expense increased 34.9% from $2.3 million during the three months ended March 31, 2024 to $3.1 million in the comparable period in 2025 due to growth in AUM across our various platforms.
Previous report
Other losses and gains, net
Reworded paragraphs (31)
Previous wording
We are a global financial innovator, offering a diverse suite of ETPs, models, solutions and products leveraging blockchain technology. 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 have introduced next-generation digital products and services, including Digital Funds, tokenized assets, and our blockchain-native digital wallet, WisdomTree Prime, which is currently available in 47 U.S. states, covering approximately 85% of the U.S. population. Our institutional platform, WisdomTree Connect, further expands access to our products.
Current wording
We are a global financial innovator, offering a diverse suite of ETPs, models, solutions, as well as 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, including Digital Funds, as well as our blockchain-native digital wallet, WisdomTree Prime, and institutional platform, WisdomTree Connect.
Previous wording
As of March 31, 2025, we managed approximately $115.8 billion in AUM. Our ETPs span a broad range of strategies including equities, fixed income, commodities, leveraged-and-inverse, currency, alternatives and cryptocurrency exposures. We have launched many first-to-market products and pioneered a unique alternative-weighting approach called “Modern Alpha” that combines the outperformance potential of active management with the cost effective benefits of passive management.
Current wording
As of June 30, 2025, we managed approximately $126.1 billion in AUM. Our ETPs span a broad range of strategies including equities, fixed income, commodities, leveraged-and-inverse, currency, alternatives and cryptocurrency exposures. We have launched many first-to-market products and pioneered a unique alternative-weighting approach called “Modern Alpha” that combines the outperformance potential of active management with the cost effective benefits of passive management.
Previous wording
During the quarter, the MSCI EAFE Index (local currency), MSCI EMU Index (local currency), MSCI Emerging Markets Index (U.S. dollar) and gold prices increased by 3.0%, 7.7%, 3.0% and 19.3%, respectively, while the S&P 500 and the MSCI Japan Index (local currency) decreased by 4.3% and 4.4%, respectively. The U.S. dollar weakened 2.5%, 1.8% and 0.1% versus the euro, British pound and Japanese yen, respectively, during the quarter.
Current wording
During the quarter, the S&P 500, the MSCI EAFE Index (local currency), the MSCI EMU Index (local currency), the MSCI Japan Index (local currency), the MSCI Emerging Markets Index (U.S. dollar) and gold prices increased by 10.9%, 5.1%, 5.5% 7.6%, 12.2% and 5.5%, respectively. The U.S. dollar weakened 8.2%, 6.0% and 3.7%, respectively, versus the euro, British pound and Japanese yen during the quarter.
Previous wording
U.S. listed ETF industry net flows were $286.4 billion for the three months ended March 31, 2025. U.S. equity and fixed income gathered the majority of those flows.
Current wording
U.S. listed ETF industry net flows were $241.5 billion for the three months ended June 30, 2025. U.S. equity and fixed income gathered the majority of those flows.
Previous wording
European listed ETP industry net flows were $65.2 billion for the three months ended March 31, 2025. Equity and fixed income gathered the majority of those flows.
Current wording
European listed ETP industry net flows were $54.9 billion for the three months ended June 30, 2025. Equity and fixed income gathered the majority of those flows.
Previous wording
The AUM of our U.S. listed exchange traded funds, or U.S. listed ETFs, increased from $79.1 billion at December 31, 2024 to $80.5 billion at March 31, 2025 due to net inflows, partly offset by market depreciation.
Current wording
The AUM of our U.S. listed exchange traded funds, or U.S. listed ETFs, increased from $80.5 billion at March 31, 2025 to $85.2 billion at June 30, 2025 due to market appreciation and net inflows.
Previous wording
The AUM of our European listed (including internationally cross-listed) ETPs, or European listed ETPs, increased from $30.7 billion at December 31, 2024 to $35.1 billion at March 31, 2025 due to market appreciation and net inflows.
Current wording
The AUM of our European listed (including internationally cross-listed) ETPs, or European listed ETPs, increased from $35.1 billion at March 31, 2025 to $40.5 billion at June 30, 2025 due to market appreciation and net inflows.
Previous wording
Discretionary spending includes marketing, sales, professional fees, occupancy and equipment, depreciation and amortization and other expenses. During the three months ended March 31, 2025, our discretionary spending was $16.3 million. We currently estimate our discretionary spending for the year ending December 31, 2025 to range from $68.0 million to $72.0 million (unchanged from our guidance range provided last quarter).
Current wording
Discretionary spending includes marketing, sales, professional fees, occupancy and equipment, depreciation and amortization and other expenses. During the six months ended June 30, 2025, our discretionary spending was $34.2 million, exclusive of acquisition-related costs incurred to date. We currently estimate our discretionary spending (exclusive of acquisition-related costs) for the year ending December 31, 2025 to range from $68.0 million to $72.0 million (unchanged from our guidance range provided last quarter). We estimate the impact of foreign exchange rates to adversely impact our forecasted expenses by approximately $3.0 million if British pound and euro foreign exchange rates at June 30, 2025 were to remain constant during the remainder of the year. This is offset by incremental revenues earned on foreign denominated revenues such that the overall impact of foreign exchange rates to our overall net operating results is immaterial.
Previous wording
We define gross margin as total operating revenues less fund management and administration expenses. Gross margin percentage is calculated as gross margin divided by total operating revenues. Our gross margin was 80.8% during the three months ended March 31, 2025. For the year ending December 31, 2025, we currently estimate that our gross margin percentage will be 81.0% to 82.0% (unchanged from our guidance range provided last quarter). We anticipate our gross margin to be at the lower end of this range taking into consideration current AUM and revenue levels. If AUM increases from continued organic growth or favorable market conditions, we would anticipate trending toward the middle to upper end of this range.
Current wording
We define gross margin as total operating revenues less fund management and administration expenses. Gross margin percentage is calculated as gross margin divided by total operating revenues. Our gross margin was 81.0% during the six months ended June 30, 2025. For the year ending December 31, 2025, we currently estimate that our gross margin percentage will be 81.0% to 82.0% (unchanged from our guidance range provided last quarter).
Previous wording
We currently estimate third-party distribution expense to be approximately $11.0 million to $12.0 million for the year ending December 31, 2025 (unchanged from our guidance range provided last quarter), which is dependent upon the AUM growth on our respective platforms.
Current wording
We currently estimate third-party distribution expense to be approximately $14.0 million to $15.0 million (previously $11.0 million to $12.0 million) for the year ending December 31, 2025, due to strong organic growth and AUM expansion across our distribution platforms.
Previous wording
We currently estimate our interest income for the year ending December 31, 2025 to be $8.0 million (previously $7.0 million), based upon the magnitude of our forecasted interest earning assets.
Current wording
We currently estimate our interest income for the year ending December 31, 2025 to be $8.0 million (unchanged from the guidance range provided last quarter), based upon the magnitude of our forecasted interest-earning assets.
Previous wording
We currently estimate our weighted average diluted shares to be between 147.0 million and 149.0 million during the year ending December 31, 2025. This guidance does not take into consideration any variability in shares associated with our Convertible Notes. While our Convertible Notes require principal to be paid in cash, our diluted shares would need to be increased for any incremental shares associated with an exercise of the conversion option if our stock price exceeds the applicable conversion price of our Convertible Notes of $9.54 per share for the 5.75% Convertible Senior Notes due 2028, $11.04 per share for the 3.25% Convertible Senior Notes due 2026 and $11.82 per share for the 3.25% Convertible Senior Notes due 2029.
Current wording
We currently estimate our weighted average diluted shares to be between 147.0 million and 148.0 million (previously 147.0 million and 149.0 million) during the year ending December 31, 2025. This guidance does not take into consideration any variability in shares associated with our Convertible Notes. While our Convertible Notes require principal to be paid in cash, our diluted shares would need to be increased for any incremental shares associated with an exercise of the conversion option if our stock price exceeds the applicable conversion price of our Convertible Notes of $9.54 per share for the 5.75% Convertible Senior Notes due 2028, $11.04 per share for the 3.25% Convertible Senior Notes due 2026 and $11.82 per share for the 3.25% Convertible Senior Notes due 2029.
Previous wording
Advisory fee revenues increased 7.6% from $92.5 million during the three months ended March 31, 2024 to $99.5 million in the comparable period in 2025 due to higher average AUM. Our average advisory fee was 0.35% during the three months ended March 31, 2025 and 0.36% during the three months ended March 31, 2024.
Current wording
Advisory fee revenues increased 4.3% from $98.9 million during the three months ended June 30, 2024 to $103.2 million in the comparable period in 2025 due to higher average AUM, partly offset by a lower average advisory fee. Our average advisory fee was 0.37% during the three months ended June 30, 2024 and 0.35% during the three months ended June 30, 2025.
Previous wording
Other revenues increased 96.7% from $4.3 million during the three months ended March 31, 2024 to $8.5 million in the comparable period in 2025 due to higher other revenues attributable to our European listed ETPs.
Current wording
Other revenues increased 15.9% from $8.1 million during the three months ended June 30, 2024 to $9.4 million in the comparable period in 2025 due to higher other revenues attributable to our European listed ETPs.
Previous wording
Compensation and benefits expense increased 8.8% from $31.1 million during the three months ended March 31, 2024 to $33.8 million in the comparable period in 2025 due to higher stock-based compensation expense and increased headcount. Headcount was 300 and 315 at March 31, 2024 and 2025, respectively.
Current wording
Compensation and benefits expense increased 6.6% from $30.8 million during the three months ended June 30, 2024 to $32.8 million in the comparable period in 2025 due to increased headcount. Headcount was 304 and 321 at June 30, 2024 and 2025, respectively.
Previous wording
Fund management and administration expense increased 3.8% from $20.0 million during the three months ended March 31, 2024 to $20.7 million in the comparable period in 2025 primarily due to higher average AUM. We had 78 U.S. listed ETFs and 275 European listed ETPs at March 31, 2024 compared to 78 U.S. listed ETFs, 280 European listed ETPs and 17 digital assets products at March 31, 2025.
Current wording
Fund management and administration expense increased 5.5% from $20.1 million during the three months ended June 30, 2024 to $21.3 million in the comparable period in 2025 primarily due to higher average AUM. We had 78 U.S. listed ETFs and 272 European listed ETPs at June 30, 2024 compared to 81 U.S. listed ETFs, 285 European listed ETPs and 17 digital assets products at June 30, 2025.
Previous wording
Marketing and advertising expense increased 9.2% from $4.4 million during the three months ended March 31, 2024 to $4.8 million in the comparable period in 2025 primarily due to higher spend related to our U.S. listed ETFs.
Current wording
Marketing and advertising expense increased 4.3% from $5.1 million during the three months ended June 30, 2024 to $5.3 million in the comparable period in 2025 primarily due to higher spend related to our U.S. listed ETFs.
Previous wording
Sales and business development expense increased 14.6% from $3.6 million during the three months ended March 31, 2024 to $4.1 million in the comparable period in 2025 primarily due to increases in travel and events spending, as well as higher spending on sales tools and data.
Current wording
Sales and business development expense increased 16.3% from $3.6 million during the three months ended June 30, 2024 to $4.2 million in the comparable period in 2025 primarily due to increases in travel and events spending.
Previous wording
Professional fees expense decreased 23.4% from $3.6 million during the three months ended March 31, 2024 to $2.8 million in the comparable period in 2025 as the prior period included activist campaign expenses and expenses incurred in connection with a settlement with the U.S. Securities and Exchange Commission regarding certain statements about the ESG screening process for three ETFs advised by WisdomTree Asset Management, Inc. (the “SEC ESG Settlement”).
Current wording
Professional fees expense decreased 51.8% from $6.6 million during the three months ended June 30, 2024 to $3.2 million in the comparable period in 2025 as the prior period included expenses incurred in response to an activist campaign and in connection with a settlement with the SEC regarding certain statements about the ESG screening process for three ETFs advised by WisdomTree Asset Management, Inc. (the “SEC ESG Settlement”).
Previous wording
Occupancy, communications and equipment expense increased 22.5% from $1.2 million during the three months ended March 31, 2024 to $1.5 million in the comparable period in 2025 primarily due to higher internet and communications expenses.
Current wording
Occupancy, communications and equipment expense increased 18.6% from $1.3 million during the three months ended June 30, 2024 to $1.6 million in the comparable period in 2025 primarily due to higher internet and communications expenses.
Previous wording
Depreciation and amortization expense increased 41.0% from $0.4 million during the three months ended March 31, 2024 to $0.5 million in the comparable period in 2025 primarily due to higher amortization of capitalized software.
Current wording
Depreciation and amortization expense increased 38.8% from $0.4 million during the three months ended June 30, 2024 to $0.6 million in the comparable period in 2025 primarily due to higher amortization of capitalized software.
Previous wording
Interest expense increased 31.8% from $4.1 million during the three months ended March 31, 2024 to $5.4 million in the comparable period in 2025 due to a higher level of debt outstanding, partly offset by a lower average interest rate. Our effective interest rate during the three months ended March 31, 2024 and 2025 was 5.0% and 3.9%, respectively.
Current wording
Interest expense increased 32.6% from $4.1 million during the three months ended June 30, 2024 to $5.5 million in the comparable period in 2025 due to a higher level of debt outstanding, partly offset by a lower average interest rate. Our effective interest rate during the three months ended June 30, 2024 and 2025 was 5.0% and 3.9%, respectively.
Previous wording
Interest income increased 35.7% from $1.4 million during the three months ended March 31, 2024 to $1.9 million in the comparable period in 2025 duetoa higher level of interest earning assets.
Current wording
Interest income increased 45.3% from $1.4 million during the three months ended June 30, 2024 to $2.1 million in the comparable period in 2025 duetoa higher level of interest-earning assets.
Previous wording
Other losses and gains, net were $2.6 million and ($0.3) million during the three months ended March 31, 2024 and 2025, respectively. The three months ended March 31, 2025 includes net losses of $0.4 million on our financial instruments and net gains of $0.3 million on our investments. Gains and losses also generally arise from the sale of gold earned from management fees paid by our physically-backed gold ETPs, foreign exchange fluctuations and other miscellaneous items.
Current wording
Other gains and losses, net were ($1.3) million and $0.6 million during the three months ended June 30, 2024 and 2025, respectively. The three months ended June 30, 2025 includes net gains of $1.3 million on our financial instruments owned and net gains of $0.6 million on our investments. These items were partly offset by $1.4 million of foreign currency remeasurement losses on U.S. dollars held by foreign subsidiaries. Gains and losses also generally arise from the sale of gold earned from management fees paid by our physically-backed gold ETPs, foreign exchange fluctuations and other miscellaneous items.
Previous wording
Our effective income tax rate during the three months ended March 31, 2024 was 20.5%, resulting in income tax expense of $5.7 million. The effective tax rate differs from the federal statutory rate of 21% primarily due to the decrease in the deferred tax asset valuation allowance on losses recognized on our financial instruments owned, tax windfalls associated with the vesting of stock-based compensation awards and a lower tax rate on foreign earnings. These items were partly offset by state and local income taxes.
Current wording
Our effective income tax rate during the three months ended June 30, 2024 was 26.3%, resulting in income tax expense of $7.8 million. The effective tax rate differs from the federal statutory rate of 21.0% primarily due to non-deductible executive compensation, an increase in the deferred tax asset valuation allowance on losses recognized on our investments and state and local income taxes. These items were partly offset by a lower tax rate on foreign earnings.
Previous wording
Our effective income tax rate during the three months ended March 31, 2025 was 18.9%, resulting in income tax expense of $5.7 million. The effective tax rate differs from the federal statutory rate of 21.0% primarily due to tax windfalls associated with the vesting of stock-based compensation awards and a lower tax rate on foreign earnings. These items were partly offset by state and local income taxes and non-deductible executive compensation.
Current wording
Our effective income tax rate for the six months ended June 30, 2024 was 23.5%, resulting in an income tax expense of $13.5 million. Our tax rate differs from the federal statutory rate of 21% primarily due to non-deductible executive compensation and state and local income taxes. These items were partly offset by a lower tax rate on foreign earnings and tax windfalls associated with the vesting of stock-based compensation awards.
Previous wording
Cash, cash equivalents and restricted cash decreased by $10.8 million during the three months ended March 31, 2025 due to $12.7 million used to repurchase our common stock, $4.6 million used to pay dividends, $1.9 million of excise tax paid on common stock repurchased and $0.6 million used to pay for software development. These decreases were partly offset by $6.4 million provided from operating activities, $0.4 million of proceeds from the sale of financial instruments owned, at fair value and $2.2 million from other activities.
Current wording
Cash, cash equivalents and restricted cash increased by $12.5 million during the six months ended June 30, 2025 due to $45.2 million provided from operating activities, $7.5 million increase in cash flow due to changes in foreign exchange rates and $4.5 million of proceeds from the sale of financial instruments owned, at fair value. These increases were partly offset by $15.8 million used to purchase financial instruments owned, at fair value, $12.7 million used to repurchase our common stock, $8.9 million used to pay dividends, $4.0 million used to purchase investments, $1.9 million of excise tax paid on common stock repurchased, $1.3 million used to pay for software development and $0.1 million from other activities.
Previous wording
Cash, cash equivalents and restricted cash decreased by $12.4 million during the three months ended March 31, 2024 due to $7.8 million used to repurchase our common stock, $5.0 million used to pay dividends, $2.5 million used to purchase financial instruments owned, at fair value, $1.0 million used in operating activities, $0.6 million used to pay for software development and $0.7 million used for other activities. These decreases were partly offset by $5.2 million of proceeds from the sale of financial instruments owned, at fair value.
Current wording
Cash, cash equivalents and restricted cash increased by $3.2 million during the six months ended June 30, 2024 due to $14.2 million used to purchase financial instruments owned, at fair value, $9.9 million used to pay dividends, $7.8 million used to repurchase our common stock, $1.2 million used to pay for software development and $0.7 million used for other activities. These decreases were partly offset by $31.2 million provided by operating activities, $5.3 million of proceeds from the sale of financial instruments owned, at fair value, and $0.5 million of proceeds from the exit from our investment in Securrency, Inc.
Previous wording
Our business does not require us to maintain a significant cash position. However, certain of our subsidiaries are required to maintain a minimum level of regulatory capital, which at March 31, 2025 was approximately $35.6 million in the aggregate. Notwithstanding these regulatory capital requirements, we expect that our main uses of cash will be to fund the ongoing operations of our business. We also maintain a capital return program which includes a $0.03 per share quarterly cash dividend and authority to purchase our common stock through April 27, 2028, including purchases to offset future equity grants made under our equity plans and purchases made in open market or privately negotiated transactions.
Current wording
Our business does not require us to maintain a significant cash position. However, certain of our subsidiaries are required to maintain a minimum level of regulatory capital, which at June 30, 2025 was approximately $37.4 million in the aggregate. Notwithstanding these regulatory capital requirements, we expect that our main uses of cash will be to fund the ongoing operations of our business. We also maintain a capital return program which includes a $0.03 per share quarterly cash dividend and authority to purchase our common stock through April 27, 2028, including purchases to offset future equity grants made under our equity plans and purchases made in open market or privately negotiated transactions.
Previous wording
During the three months ended March 31, 2025, we repurchased 1,282,498 shares of our common stock under the repurchase program for an aggregate cost of $12.7 million. Currently, approximately $150.0 million remains under this program for future purchases.
Current wording
During the six months ended June 30, 2025, we repurchased 1,282,498 shares of our common stock under the repurchase program for an aggregate cost of $12.7 million. Currently, approximately $150.0 million remains under this program for future purchases.
Previous wording
Total future minimum lease payments with respect to our operating lease liabilities were $0.6 million at March 31, 2025. Cash flows generated by our operating activities and existing cash balances should be sufficient to satisfy the future minimum lease payments. See Note 10 to our Consolidated Financial Statements for additional information.
Current wording
Total future minimum lease payments with respect to our operating lease liabilities were $2.1 million at June 30, 2025. Cash flows generated by our operating activities and existing cash balances should be sufficient to satisfy the future minimum lease payments. See Note 10 to our Consolidated Financial Statements for additional information.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Compensation and benefits expense increased 7.7% from $61.8 million during the six months ended June 30, 2024 to $66.6 million in the comparable period in 2025 due to higher stock-based compensation expense and increased headcount.
Current report — wording carried from elsewhere
Sales and business development expense increased 15.4% from $7.3 million during the six months ended June 30, 2024 to $8.4 million in the comparable period in 2025 primarily due to increases in travel and events spending.
Current report — wording carried from elsewhere
Occupancy, communications and equipment expense increased 20.5% from $2.5 million during the three months ended June 30, 2024 to $3.0 million in the comparable period in 2025 primarily due to higher internet and communications expenses.
Current report — wording carried from elsewhere
Other expenses were essentially unchanged from the six months ended June 30, 2024.
Current report — wording carried from elsewhere
Interest expense increased 32.2% from $8.3 million during the six months ended June 30, 2024 to $10.9 million in the comparable period in 2025 due to a higher level of debt outstanding, partly offset by a lower average interest rate. Our effective interest rate during the six months ended June 30, 2024 and 2025 was 5.0% and 3.9%, respectively.
Current report — wording carried from elsewhere
Our effective income tax rate for the six months ended June 30, 2025 was 20.6%, resulting in an income tax expense of $12.8 million. Our tax rate differs from the federal statutory rate of 21.0% primarily due tax windfalls associated with the vesting of stock-based compensation awards and a lower tax rate on foreign earnings. These items were partly offset by state and local income taxes.