AlTi Global, Inc. Q1 FY2026 earnings call

• Business Overview and Positioning

  • ALTI serves ultra-high net worth families and institutions with complex, long-term global wealth management needs, a differentiated positioning aligned with client needs amid generational change and market uncertainty.
  • The client base has long investment horizons, well-diversified balance sheets, and limited near-term liquidity needs, supporting stable decision-making during market stress. ALTI's portfolio allocations prioritize diversification and downside protection with lower market beta, and its positioning in energy, energy infrastructure, and technology across the U.S. and emerging markets outperformed broader volatile markets.
  • Under new interim CEO leadership, the firm's core strategic priorities remain unchanged: driving organic growth, pursuing strategic inorganic growth opportunities, operating as one unified global firm, investing in employee capacity, and improving profitability in a disciplined, sustainable manner.

• Financial and Operational Progress

  • Despite widespread market volatility, geopolitical uncertainty, and pressure on industry asset values in Q1 2026, ALTI's underlying client relationships, engagement, and long-term strategies remain fundamentally resilient.
  • The firm is actively streamlining operations, removing inefficiencies, and reallocating capacity to enable advisors to better serve clients and drive organic growth, which is identified as the firm's top priority to deliver stronger, more consistent momentum.
  • Zero-based budgeting initiatives are already delivering cost savings, with reduced spending in technology, occupancy, and marketing partially offsetting higher temporary costs. Sequentially, normalized operating expenses fell by $19 million in Q1 2026, driven by lower compensation costs and organizational simplification.
  • The ongoing strategic review process led by the board committee has not produced any updateable conclusions as of the call, and the firm will provide updates as appropriate.
  • The Contora acquisition contributed to AUM and recurring revenue growth in the quarter.

ALTI did not break out performance across separate product segments in this call. Total firm-wide performance for Q1 2026 is as follows: total revenue reached $73 million, representing 28% year-over-year growth. Recurring management and advisory fees, which make up 71.2% of total revenue, were $52 million, up 16% year-over-year. Investment distributions contributed $21 million (28.8% of total revenue), up 75% year-over-year, with $19 million of that coming from incentive distributions, up from $10 million in Q1 2025. Assets under management (AUM) ended the quarter at $49 billion, up 9% year-over-year. Adjusted EBITDA was $15 million, up 21% year-over-year and 32% sequentially quarter-over-quarter, with an adjusted EBITDA margin of 20%, up from 13% in the prior quarter. Reported GAAP net income from continuing operations was $8 million, up $4 million from the prior year period.

• Cost reduction benefits from ongoing restructuring and zero-based budgeting initiatives are expected to become more visible in reported financial results starting in the second half of 2026.
• Strategic review-related costs are expected to persist through at least the second quarter of 2026, may bleed into the third quarter, and should diminish and return to normalized levels by the back half of 2026, assuming the process is completed by that time.
• Early indications for Zebedee's Q2 2026 performance look encouraging, but management cannot confirm if the elevated Q1 2026 incentive income level will be sustained as the quarter is still ongoing.
• Management reaffirmed its commitment to its core strategic goals of driving organic growth and improving cost efficiency and profitability in 2026.

• Broad market risks: Geopolitical uncertainty, sharp energy price increases, lower equity valuations, currency fluctuations, and shifting interest rate expectations have created market volatility and pressured asset values industry-wide, which impacts ALTI's reported AUM on a quarterly basis.
• Elevated near-term costs: Temporary non-operating costs related to the strategic review process and recent management restructuring are currently obscuring underlying expense reduction progress in reported results.
• Incentive income volatility: Incentive income from external investment managers is dependent on individual manager performance, which can vary quarter to quarter and is difficult to predict forward.
• Forward-looking statements are inherently uncertain, and actual results may differ materially from expectations due to unforeseen risks and uncertainties, as detailed in ALTI's SEC filings.

Q: Can you provide an update on ALTI's AUM following the recent market rebound, after the Q1 end? / A: ALTI maintained its full positioning in energy infrastructure, energy, and technology through the recent market downturn, and did not sell assets during the period of geopolitical conflict. The firm has been able to fully participate in the subsequent market recovery, but management does not have an exact updated AUM figure to share during the call and will provide one in follow-up.

Q: Is the elevated Q1 2026 incentive income level from third-party managers a sustainable run rate, or will it normalize in a less volatile market? / A: Most of the elevated incentive income came from the Zebedee European long-short strategy, which is an alternative, non-beta-oriented strategy, so future performance cannot be predicted. Early Q2 performance figures look encouraging, but the quarter is not complete so management cannot confirm if the high incentive income level will continue.

Q: When will the elevated expenses tied to the strategic review process return to normalized levels? / A: A large portion of the strategic review costs are likely already behind us, and the process is now limited to evaluating incoming proposals rather than active broad review. Costs are expected to continue through at least Q2 2026, may bleed into Q3, but will diminish and return to normal levels by the back half of 2026 if the process is completed by then.