Consolidated Operating Highlights ($, in billions):

AUM

Net inflows/(outflows)

Average AUM

Average advisory fee

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

Operating revenues

Net (loss)/income

Diluted (loss)/earnings per share

Operating income margin

Non-GAAP¹:

Net income, as adjusted

Diluted earnings per share, as adjusted

Operating income margin, as adjusted

In December 2018, the Company declared final capital gains distributions for WisdomTree’s U.S. ETFs; and the Company announced the launch of the WisdomTree Yield Enhanced Global Aggregate Bond Fund (GLBY) on the NYSE Arca Exchange.

In January 2019, the Company announced that eight U.S.-listed WisdomTree ETFs were added to BNY Mellon’s Pershing Fundvest^® ETF, a no-transaction-fee ETF platform; and the Company announced that the WisdomTree IQCIO model portfolios will become available to advisors through the Lockwood Managed360 platform.

In November 2018, following the successful integration of the European exchange-traded commodity, currency and short-and-leveraged business (“ETFS”) of ETFS Capital Limited, the Company launched its “One Brand” advertising campaign, targeting institutional and intermediate investors.

The Company announced the launch of the WisdomTree Artificial Intelligence ETF (WTAI) on the London Stock Exchange and the Borsa Italiana in December 2018, and on Xetra in January 2019.

In January 2019, WisdomTree Ireland Limited, a subsidiary established in Dublin to ensure WisdomTree can continue to offer its ETPs across the EU post-Brexit seamlessly, was authorized by the Central Bank of Ireland. The Company also will continue to distribute its ETPs in the UK market via its existing UK subsidiary authorized by the UK Financial Conduct Authority.

In December 2018, the Company published its second annual ETF Industry & Market Outlook. In addition, the Company announced final 2018 annual capital gains distributions for certain ETFs.

In January 2019, the Company joined the Canadian ETF Association (CETFA).

impairment charges of $17.1 million recognized on the following items: (i) $10.0 million on the intangible asset associated with the WisdomTree Continuous Commodity Index Fund (GCC); (ii) $3.8 million related to our ownership stake in Thesys Group, Inc.; and (iii) $3.3 million upon the expiration of our option to acquire the remaining equity interests in AdvisorEngine Inc. (“AdvisorEngine”);

a loss on revaluation of deferred consideration of $5.4 million;

as part of our previously disclosed cost reduction initiatives, severance expense of $2.0 million, and an impairment of $0.3 million associated with the disposal of the fixed assets of our Japan office; and

acquisition-related costs of $1.0 million.

Compensation and benefits expense decreased 26.7% from the fourth quarter of 2017 to $18.8 million due to lower incentive compensation within our U.S. Business segment, partly offset by higher compensation of our International Business segment due to the ETFS Acquisition and severance expense of $2.0 million in our U.S. Business segment. These expenses increased 7.4% from the third quarter of 2018 primarily due to the previously mentioned severance expense. Headcount of our U.S. Business segment was 153, 151 and 162 and our International Business segment was 75, 76 and 42 at December 31, 2018, September 30, 2018 and December 31, 2017, respectively.

Fund management and administration expense increased 37.1% from the fourth quarter of 2017 to $15.9 million due to higher average AUM of our International Business segment primarily associated with the ETFS Acquisition. These expenses increased 3.7% from the third quarter of 2018 due to higher seasonal expenses. We had 85 U.S. listed ETFs and 452 International listed ETPs at the end of the quarter.

Marketing and advertising expense was essentially unchanged from the fourth quarter of 2017. These expenses increased 13.4% from the third quarter of 2018 to $3.7 million due to higher levels of spending globally.

Sales and business development expense increased 31.0% and 32.5% from the fourth quarter of 2017 and third quarter of 2018, respectively, to $5.0 million due to higher spending on sales related activities globally.

Contractual gold payments expense of $2.9 million was essentially unchanged from the third quarter of 2018. This expense was associated with the payment of 2,375 ounces of gold and was calculated using an average daily spot price of $1,229 and $1,213 per ounce, during the fourth quarter of 2018 and third quarter of 2018, respectively.

Professional and consulting fees increased 98.2% and 47.6% from the fourth quarter of 2017 and third quarter of 2018, respectively, to $2.9 million largely due to higher spending on corporate consulting-related expenses.

Occupancy, communications and equipment expense increased 17.6% from the fourth quarter of 2017 to $1.5 million due to office space associated with the ETFS Acquisition. These expenses decreased 10.3% from the third quarter of 2018 due to lower real estate taxes.

Third-party distribution fees increased 67.7% and 28.9% from the fourth quarter of 2017 and third quarter of 2018, respectively, to $1.8 million primarily due to higher fees paid for platform relationships and to our third-party marketing agent in Latin America.

Acquisition-related costs decreased 79.1% from the fourth quarter of 2017 to $1.0 million. These costs increased 121.1% from the third quarter of 2018. Costs incurred during the fourth quarter of 2017 arose in connection with the ETFS Acquisition. Costs incurred during the third and fourth quarters of 2018 included severance and costs associated with the integration of ETFS.

Other expenses increased 17.6% from the fourth quarter of 2017 to $2.2 million primarily due to higher International Business segment office expenses associated with an increase in headcount from the ETFS Acquisition. These expenses were essentially unchanged from the third quarter of 2018.

Interest expense of $2.9 million was essentially unchanged from the third quarter of 2018.

We recognized a loss on revaluation of deferred consideration of ($5.4) million during the fourth quarter of 2018 as compared to a gain of $7.7 million recognized in the third quarter of 2018. The loss arose in the current quarter as the price of gold increased when compared to the price of gold on September 30, 2018, the date on which the deferred consideration was last measured. The magnitude of any gain or loss recognized is highly correlated to the magnitude of the change in the price of gold.

Interest income was essentially unchanged from the fourth quarter of 2017 and increased 11.3% from the third quarter of 2018 to $0.8 million primarily due to higher paid-in-kind (“PIK”) interest on a note receivable from AdvisorEngine.

We recognized impairment expense of $17.4 million during the fourth quarter of 2018 as further described in the “Fourth Quarter Financial Discussion” above.

Other gains/(losses), net were $0.4 million, ($0.4) million and $0.1 million during the fourth quarter of 2018, fourth quarter of 2017 and third quarter of 2018, respectively. These gains and losses generally arise from the sale of gold earned from management fees paid by our physically-backed gold ETPs, foreign exchange fluctuations, securities owned and other miscellaneous items.

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;

our ability to develop new products and services;

our ability to maintain current vendors or find new vendors to provide services to us at favorable costs;

our ability to successfully expand our business into non-U.S. markets;

competition in our business; and

the effect of laws and regulations that apply to our business.

Net outflows in our two largest ETFs – the WisdomTree Europe Hedged Equity Fund and the WisdomTree Japan Hedged Equity Fund – have had, and in the future could continue to have, a negative impact on our revenues.

Over the last few years, we have expanded our business globally. This expansion subjects us to increased operational, regulatory, financial and other risks.

Declining prices of securities, precious metals and other commodities can adversely affect our business by reducing the market value of the assets we manage or causing customers 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, may negatively impact revenues and operating margins, and may impede our ability to refinance our debt upon maturity, increase the cost of borrowing or result in our debt being called prior to maturity.

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 the performance of these products and our ability to maintain the AUM of these products, as well as investor sentiment toward investing in the funds’ strategies and market-specific and political and economic risk.

A significant portion of our AUM is held in our U.S. listed ETFs that invest in foreign securities and we therefore have substantial exposure to foreign market conditions and are subject to foreign currency exchange rate risks.

Many of our ETPs and ETFs have a limited track record, and poor investment performance could cause our revenues to decline.

We depend on third parties to provide many critical services to operate our business and our ETPs and ETFs. The failure of key vendors to adequately provide such services could materially affect our operating business and harm our customers.

See “Non-GAAP Financial Measurements.”

Gross margin is now calculated as total operating revenues, less fund management and administration expenses. Gross margin percentage is calculated as gross margin divided by total operating revenues. See “Non-GAAP Financial Measurements” below for additional information. Amounts previously reported as gross margin for the U.S. Business segment have been restated to conform with our current presentation.

Investor Relations

Media Relations

WisdomTree Investments, Inc.

WisdomTree Investments, Inc.

Jason Weyeneth, CFA

Jessica Zaloom

+1.917.267.3858

+1.917.267.3735

jweyeneth@wisdomtree.com

jzaloom@wisdomtree.com

Operating Revenues:

Advisory fees

Other income

Total revenues

Operating Expenses:

Compensation and benefits

Fund management and administration

Marketing and advertising

Sales and business development

Contractual gold payments

Professional and consulting fees

Occupancy, communications and equipment

Depreciation and amortization

Third-party distribution fees

Acquisition-related costs

Other

Total expenses

Operating income

Other Income/(Expenses):

Interest expense

(Loss)/gain on revaluation of deferred consideration – gold payments

Interest income

Impairments

Settlement gain

Other gains and losses, net

(Loss)/income before taxes

Income tax (benefit)/expense

Net (loss)/income

(Loss)/earnings per share – basic

(Loss)/earnings per share – diluted

Weighted average common shares – basic

Weighted average common shares – diluted

Operating Revenues:

Advisory fees

Other income

Total revenues

Operating Expenses:

Compensation and benefits

Fund management and administration

Marketing and advertising

Sales and business development

Professional and consulting fees

Occupancy, communications and equipment

Depreciation and amortization

Third-party distribution fees

Acquisition-related costs

Other

Total expenses

Operating income

Other Income/(Expenses):

Interest expense

Interest income

Impairments

Settlement gain

Other gains and losses, net

(Loss)/income before taxes

Operating income margin

Operating Revenues:

Advisory fees

Other income

Total revenues

Operating Expenses:

Compensation and benefits

Fund management and administration

Marketing and advertising

Sales and business development

Contractual gold payments

Professional and consulting fees

Occupancy, communications and equipment

Depreciation and amortization

Third-party distribution fees

Acquisition-related costs

Other

Total expenses

Operating income/(loss)

Other Income/(Expenses):

Interest expense

(Loss)/gain on revaluation of deferred consideration – gold payments

Other gains and losses, net

(Loss)/income before taxes

Operating income margin

ASSETS

Current assets:

Cash and cash equivalents

Securities owned, at fair value

Securities held-to-maturity

Accounts receivable

Income taxes receivable

Prepaid expenses

Other current assets

Total current assets

Fixed assets, net

Note receivable

Securities held-to-maturity

Deferred tax assets, net

Investments, carried at cost

Goodwill

Intangible assets

Other noncurrent assets

Total assets

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES

Current liabilities:

Fund management and administration payable

Compensation and benefits payable

Deferred consideration – gold payments

Securities sold, but not yet purchased, at fair value

Accounts payable and other liabilities

Total current liabilities

Long-term debt

Deferred consideration – gold payments

Deferred rent payable

Total liabilities

Preferred stock – Series A Non-Voting Convertible, par value $0.01; 14.750 shares authorized, issued and outstanding

STOCKHOLDERS’ EQUITY

Common stock, par value $0.01; 250,000 shares authorized:

Issued and outstanding: 153,202 and 136,996 at December 31, 2018 and December 31, 2017, respectively

Additional paid-in capital

Accumulated other comprehensive income

Accumulated deficit

Total stockholders’ equity

Total liabilities and stockholders’ equity

Cash flows from operating activities:

Net income

Adjustments to reconcile net income to net cash provided by operating activities:

Advisory fees paid in gold and other precious metals

Contractual gold payments

Gain on revaluation of deferred consideration – gold payments

Impairments

Stock-based compensation

Deferred income taxes

Paid-in-kind interest income

Settlement gain

Amortization of credit facility issuance costs

Depreciation and amortization

Other

Changes in operating assets and liabilities, net of the effects of the ETFS Acquisition:

Securities owned, at fair value

Accounts receivable

Income taxes receivable/payable

Prepaid expenses

Gold and other precious metals

Other assets

Acquisition payable

Fund management and administration payable

Compensation and benefits payable

Securities sold, but not yet purchased, at fair value

Accounts payable and other liabilities

Net cash provided by operating activities

Cash flows from investing activities:

Purchase of fixed assets

Purchase of securities held-to-maturity

Purchase of debt securities available-for-sale

Purchase of investments

Funding of AdvisorEngine note receivable

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

Proceeds from sales and maturities of debt securities available-for-sale

Cash paid – Acquisition of right to manage Questrade’s ETFs

Cash paid – ETFS Acquisition, net of cash acquired

Net cash used in investing activities

Cash flows from financing activities:

Dividends paid

Shares repurchased

Credit facility issuance costs

Preferred stock issuance costs

Proceeds from the issuance of long-term debt

Proceeds from exercise of stock options

Net cash provided by/(used in) financing activities

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

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents – beginning of period

Cash and cash equivalents – end of period

Supplemental disclosure of cash flow information:

Cash paid for taxes

Cash paid for interest

Key Operating Statistics (Unaudited)

U.S. LISTED ETFs (in millions)

Beginning of period assets

Inflows/(outflows)

Market appreciation/(depreciation)

End of period assets

Average assets during the period

Average ETF advisory fee during the period

Revenue days

Number of ETFs – end of the period

INTERNATIONAL LISTED ETPs (in millions)

Beginning of period assets

Assets acquired

Inflows/(outflows)

Market appreciation/(depreciation)

End of period assets

Average assets during the period

Average ETP advisory fee during the period

Revenue days

Number of ETPs – end of the period

PRODUCT CATEGORIES (in millions)

Commodity & Currency

Beginning of period assets

Inflows/(outflows)

Market appreciation/(depreciation)

End of period assets

Average assets during the period

International Developed Market Equity

Beginning of period assets

Assets acquired

Inflows/(outflows)

Market appreciation/(depreciation)

End of period assets

Average assets during the period

U.S. Equity

Beginning of period assets

Assets acquired

Inflows/(outflows)