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

AlTi Global (NASDAQ:ALTI) released its quarterly earnings data on Monday. The basic materials company reported $0.01 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.01), FiscalAI reports. The firm had revenue of $57.90 million for the quarter, compared to the consensus estimate of $65.80 million. AlTi Global had a negative net margin of 13.76% and a negative return on equity of 1.07%.

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 Price Performance

Shares of ALTI stock traded down $0.10 during trading hours on Wednesday, hitting $2.17. The company had a trading volume of 24,540 shares, compared to its average volume of 177,181. AlTi Global has a 12 month low of $2.14 and a 12 month high of $5.45. 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’s fifty day moving average is $2.86 and its 200 day moving average is $3.56. The firm has a market capitalization of $338.39 million, a price-to-earnings ratio of -3.35 and a beta of 0.82.

Analyst Upgrades and Downgrades

ALTI has been the topic of a number of recent research reports. Wall Street Zen upgraded shares of AlTi Global from a “sell” rating to a “hold” rating in a research note on Saturday, September 19th. Zacks Research raised shares of AlTi Global from a “strong sell” rating to a “hold” rating in a report on Monday, October 19th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of AlTi Global in a research note on Thursday, October 15th. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Reduce”.

About AlTi Global

AlTi Global, Inc. is a global wealth and asset management firm serving high-net-worth individuals and families, as well as foundations, endowments and other institutions. Its services include investment management, financial and wealth planning, family-office support and fiduciary services. The firm also provides access to alternative investments and offers impact-investing services. Its work is intended to address clients’ investment, planning and broader wealth-management needs. AlTi Global was formed in 2023 through the combination of Tiedemann Group and Alvarium Investments.