AlTi Global (NASDAQ:ALTI) Releases Earnings Results, Misses Estimates By $0.01 EPS

Key Points

• AlTi Global missed quarterly estimates: Earnings were $0.01 per share versus $0.02 expected, while revenue of $57.9 million came in below the $65.8 million consensus.
• Assets and recurring fees grew, while costs declined: AUM rose 5% year over year to $51.6 billion and recurring fees increased 7%; operating expenses fell 25% to $64 million, lifting adjusted EBITDA 1% to more than $6 million.
• Outflows and a planned writedown cloud the outlook: Net wealth management outflows were about $250 million, and the company expects a $20 million–$23 million non-cash unrealized loss on its Zebedee investment in Q4.

AlTi Global (NASDAQ:ALTI - Get Free Report) announced its quarterly earnings data on Monday. The basic materials company reported $0.01 earnings per share for the quarter, missing analysts' consensus estimates of $0.02 by ($0.01), FiscalAI reports. AlTi Global had a negative net margin of 40.86% and a negative return on equity of 1.61%. The firm had revenue of $57.90 million during the quarter, compared to analyst estimates of $65.80 million.

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

• AUM and recurring fees grew: Assets under management reached $51.6 billion, up 5% year over year, primarily on strong investment performance. Recurring management and advisory fees rose 7%, although total revenue increased only 1% to $58 million.
• Expense reductions improved results: Operating expenses fell 25% year over year to $64 million, and adjusted EBITDA increased 1% year over year to more than $6 million. Management said further savings are expected, while noting some of the expense decline reflected the absence of prior-year costs.
• Outflows and an upcoming investment writedown weigh on the outlook: Net wealth management outflows were about $250 million, as reductions in lower-fee legacy accounts exceeded new client funding. AlTi expects a further $20 million–$23 million non-cash unrealized loss in Q4 on its Zebedee stake.
• New credit facility supports targeted growth: AlTi secured an $85 million facility, with $28 million drawn, and plans to use available capital in part for advisor and team lift-outs that expand existing offices and support growth. The revolver remains undrawn, and the delayed-draw term loan is intended for future opportunities.

AlTi Global Stock Performance

Shares of ALTI traded up $0.13 during trading hours on Monday, hitting $2.47. The stock had a trading volume of 196,238 shares, compared to its average volume of 178,099. The company has a debt-to-equity ratio of 0.02, a quick ratio of 0.97 and a current ratio of 0.97. The firm has a 50-day moving average price of $2.89 and a 200 day moving average price of $3.57. AlTi Global has a fifty-two week low of $2.26 and a fifty-two week high of $5.45. The firm has a market capitalization of $385.18 million, a price-to-earnings ratio of -1.78 and a beta of 0.82.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of AlTi Global in a research report on Thursday, October 15th. Wall Street Zen raised shares of AlTi Global from a "sell" rating to a "hold" rating in a research report on Saturday, September 19th. Finally, Zacks Research raised shares of AlTi Global from a "strong sell" rating to a "hold" rating in a research report on Monday, October 19th. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, AlTi Global has an average rating of "Reduce".

About AlTi Global

AlTi Global, Inc is a global independent wealth manager that provides investment and advisory services to entrepreneurs, families, foundations and institutions. The company helps clients manage and preserve wealth through customized portfolio management, financial planning, investment advisory and family-office solutions.

Its services include traditional and alternative investment strategies, private markets and impact investing, as well as advice on governance, philanthropy, estate planning and other complex financial matters.

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