AlTi Global (NASDAQ:ALTI) Issues Quarterly Earnings Results

Key Points

• AlTi Global missed quarterly expectations, reporting a $0.31-per-share loss versus analysts’ forecast of $0.06 in earnings, while revenue of $58.02 million fell short of the $61.80 million estimate.
• Despite the loss, assets under management grew 8% year over year to $51 billion, revenue increased 11% to $58 million, and adjusted EBITDA rose 9% to more than $5 million as operating expenses declined.
• A nearly $19 million unrealized investment loss from an Asian credit fund unwind weighed on results, and shares fell 3.4%; analysts currently hold an average “Sell” rating.

AlTi Global (NASDAQ:ALTI - Get Free Report) posted its earnings results on Monday. The basic materials company reported ($0.31) earnings per share for the quarter, missing analysts' consensus estimates of $0.06 by ($0.37), FiscalAI reports. AlTi Global had a negative return on equity of 2.22% and a negative net margin of 41.92%.The firm had revenue of $58.02 million for the quarter, compared to analyst estimates of $61.80 million.

Here are the key takeaways from AlTi Global's conference call:

• AUM increased 8% year over year to $51 billion, supported by approximately $700 million of net client inflows in the second quarter and favorable market performance.
• Revenue rose 11% year over year to $58 million, while recurring management and advisory fees increased 11% to $54 million. Adjusted EBITDA exceeded $5 million, up 9% from the prior-year quarter.
• Operating expenses declined 12% year over year to $69 million, including a 40% reduction in professional fees, as zero-based budgeting and cost-control initiatives began to improve the cost structure. Management expects these benefits to accelerate in 2027.
• AlTi recorded a nearly $19 million unrealized investment loss after an external Asian credit and special situations manager unexpectedly decided to unwind its fund within 12 months. The strategy is also expected to contribute less revenue going forward.
• The strategic review remains ongoing, with the special committee continuing to evaluate opportunities that could enhance shareholder value; management provided no further update.

AlTi Global Trading Down 3.4%

Shares of NASDAQ:ALTI traded down $0.15 during mid-day trading on Monday, reaching $4.30. 243,866 shares of the company's stock were exchanged, compared to its average volume of 184,809. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.95 and a current ratio of 0.95. AlTi Global has a twelve month low of $2.75 and a twelve month high of $5.45. The firm has a market capitalization of $651.97 million, a price-to-earnings ratio of -3.05 and a beta of 0.71. The business's fifty day moving average price is $3.42 and its 200-day moving average price is $3.77.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on ALTI. Weiss Ratings restated a "sell (d-)" rating on shares of AlTi Global in a research report on Friday, July 17th. Zacks Research cut shares of AlTi Global from a "hold" rating to a "strong sell" rating in a report on Tuesday, July 14th. Two investment analysts have rated the stock with a Sell rating, According to data from MarketBeat.com, AlTi Global currently has an average rating of "Sell".

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of ALTI. Geode Capital Management LLC increased its stake in shares of AlTi Global by 15.2% in the second quarter. Geode Capital Management LLC now owns 1,298,545 shares of the basic materials company's stock valued at $5,390,000 after buying an additional 170,951 shares during the period. State Street Corp boosted its holdings in AlTi Global by 8.4% in the fourth quarter. State Street Corp now owns 776,258 shares of the basic materials company's stock valued at $3,602,000 after acquiring an additional 60,177 shares during the last quarter. Barclays PLC increased its position in AlTi Global by 11.6% during the 4th quarter. Barclays PLC now owns 67,567 shares of the basic materials company's stock valued at $314,000 after purchasing an additional 7,011 shares during the period. Dimensional Fund Advisors LP increased its position in AlTi Global by 28.1% during the 4th quarter. Dimensional Fund Advisors LP now owns 66,803 shares of the basic materials company's stock valued at $310,000 after purchasing an additional 14,641 shares during the period. Finally, Goldman Sachs Group Inc. raised its holdings in AlTi Global by 8.8% during the 4th quarter. Goldman Sachs Group Inc. now owns 63,707 shares of the basic materials company's stock worth $296,000 after purchasing an additional 5,178 shares during the last quarter. 3.57% of the stock is owned by institutional investors and hedge funds.

About AlTi Global

AlTi Global, Inc provides wealth and asset management services individuals, families, foundations, and institutions in the United States, the United Kingdom, and internationally. It operates through two segments, Wealth Management and Strategic Alternatives. The company offers discretionary investment management, non-discretionary investment advisory, and investment management and advisory services. It also provides trust and administration services, such as entity formation and management; creating or modifying trust instruments and administrative practices to meet beneficiary needs; corporate, trustee-executor, and fiduciary services; provision of directors and company secretarial services; administering entity ownership of intellectual property rights; advisory and administration services in connection with investments in marine and aviation assets; and administering entity ownership of fine art and collectibles.

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