AlTi Global Q1 Earnings Call Highlights

Key Points

• AlTi Global posted stronger first-quarter 2026 results, with revenue up 28% year over year to $73 million and adjusted EBITDA rising 21% to $15 million. Management said recurring advisory fees and investment distributions helped offset a difficult market backdrop.
• Assets under management climbed to $49 billion, up 9% from a year earlier, supported by strong investment performance and the Kontora acquisition. The company said its long-term, diversified client base helped it stay resilient amid market volatility.
• Cost discipline and strategic review remain major priorities, as operating expenses rose year over year but normalized costs declined sequentially. Management expects the benefits of cost-cutting to become more visible in the second half of the year while it continues reviewing inorganic growth opportunities.

AlTi Global NASDAQ: ALTI reported higher first-quarter 2026 revenue and adjusted EBITDA, as management said recurring advisory fees and incentive income from investment distributions helped offset pressure from a volatile market environment.

The wealth and asset management firm generated total revenue of $73 million in the quarter, up 28% from the same period last year. Recurring management and advisory fees were $52 million, a 16% year-over-year increase, while distributions from investments totaled $21 million, up 75% from the prior-year period.

Nancy Curtin, interim chief executive officer and global chief investment officer, said the quarter unfolded against a difficult backdrop marked by geopolitical uncertainty, higher energy prices, lower equity markets, currency fluctuations and changing expectations around interest rates. She said those factors pressured asset values across the industry but that AlTi’s client base and investment approach remained resilient.

“Our clients are ultra-high-net-worth families and institutions with long-term investment horizons, well-diversified balance sheets, and generally limited near-term liquidity needs,” Curtin said, adding that those characteristics support disciplined decision-making during periods of market stress.

Assets Under Management Rise Despite Market Pressure

Chief Financial Officer Mike Harrington said assets under management ended the quarter at $49 billion, up 9% from a year earlier. He attributed the increase to strong investment performance and the acquisition of Kontora, while noting that market-driven depreciation weighed on assets during the quarter.

Harrington said recurring management and advisory fee growth reflected the Kontora acquisition and higher average billable AUM, partially offset by market volatility during the first quarter.

Curtin said AlTi’s portfolio positioning helped the firm navigate the volatility. She cited allocations in energy, energy infrastructure and technology, including in the U.S. and emerging markets, as contributors to performance. During the question-and-answer portion of the call, Curtin said the firm did not sell during the period of conflict and market stress and had participated in the subsequent market recovery, though she did not provide an updated AUM figure.

Investment Distributions Boost Results

Investment distributions were a significant contributor to quarterly revenue. Harrington said the incentive portion of those distributions totaled $19 million in the first quarter of 2026, compared with $10 million in the first quarter of 2025.

Approximately $18 million of the first-quarter incentive income was attributable to Zevity, a European long-short strategy that generated a 15.3% return in 2025, Harrington said. He noted that these distributions help diversify AlTi’s cash flow and support results during periods when market-driven AUM pressure affects recurring revenue.

Asked whether the current level of incentive income should be viewed as a run rate, Curtin said it was difficult to say because the strategies are not simply market beta-oriented. She said early numbers for the following quarter looked encouraging, but management would need to see how the quarter ended.

Adjusted EBITDA Improves as Expenses Remain in Focus

Adjusted EBITDA was $15 million in the quarter, up 21% from the prior-year period and up 32% sequentially. Adjusted EBITDA margin was 20%, compared with 13% in the prior quarter. Harrington said the sequential improvement reflected lower costs and the impact of higher-margin incentive fees from investment holdings in external managers.

On a GAAP basis, AlTi reported net income from continuing operations of $8 million, an increase of $4 million from the prior period. Other income was $19 million, driven primarily by valuation-related items, including gains on investments and liabilities.

However, reported operating expenses rose by $18 million year-over-year to $84 million. Harrington said the increase was driven mainly by higher compensation costs tied to recent management restructuring, acquisition-related earn-outs and the Kontora acquisition. Non-compensation costs also rose, primarily due to increased professional fees and general and administrative expenses, including costs tied to the strategic review process, foreign exchange and other non-recurring operational costs.

On a normalized basis, excluding non-recurring and non-cash items, operating expenses were $58 million, compared with $45 million in the first quarter of 2025. Sequentially, normalized expenses declined by $19 million, which Harrington attributed primarily to lower compensation costs from the absence of the Tiedemann Arbitrage incentive bonus and continued work to simplify the organization and reduce the cost base.

Management Emphasizes Organic Growth and Cost Discipline

Curtin, who has served as interim CEO for six weeks, said AlTi’s strategic priorities remain unchanged: driving organic growth, pursuing strategic inorganic opportunities, operating as one global firm, building capacity for employees and improving profitability in a disciplined and sustainable way.

She said increasing organic revenue growth is a key priority. “We are intent on driving stronger, more consistent momentum as we move forward,” Curtin said. She also said the company continues to review inorganic opportunities in core strategic markets to support growth and scale.

Both Curtin and Harrington emphasized cost reduction as a near-term focus. Harrington said actions taken by the company are resulting in improved cost control and underlying expense reductions, though those improvements are being obscured by temporary and non-operational items such as strategic review costs and management restructuring expenses.

Harrington said the company expects the benefits of its cost-reduction efforts to become more visible in the second half of the year. He added during the Q&A session that strategic review-related costs are expected to continue into the second quarter and potentially into the third quarter, but should begin to diminish in the back half of the year, contingent on the process being complete.

Strategic Review Continues

Curtin said the committee overseeing the company’s strategic review continues its work and that there was nothing further to report. In response to an analyst question, she said a large amount of the related expenses are “hopefully” behind the company, but added that if any proposal comes to the company or its board, the board would need to evaluate it consistent with its fiduciary responsibilities.

In closing remarks, Curtin said AlTi entered 2026 with a simpler organization, improving cost discipline and a business model anchored in recurring revenue and long-duration client relationships. She said the company remains focused on cost discipline and organic growth in the quarters ahead.

About AlTi Global NASDAQ: ALTI

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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