This article first appeared on GuruFocus .
Release Date: August 10, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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AlTi Global Inc ( NASDAQ:ALTI ) reported an 11% year-over-year increase in total revenue, reaching $58 million in Q2 2026.
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Assets under management (AUM) grew to $51 billion, up 8% year-over-year, driven by strong net client inflows of approximately $700 million.
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Adjusted EBITDA increased 9% year-over-year to over $5 million, reflecting early benefits from cost control initiatives.
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Operating expenses improved significantly, with total expenses down 12% year-over-year, including a 40% reduction in professional fees.
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The company continues to invest in high-growth markets like Miami and expand its private endowments business, enhancing its global franchise.
Negative Points
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AlTi Global Inc ( NASDAQ:ALTI ) recorded an unrealized investment loss of nearly $19 million due to the unexpected decision by an external manager to unwind the Asian Credit and Special Situations Strategy.
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The unwinding of the Asian Credit and Special Situations Strategy is expected to diminish future revenue contributions, impacting recurring management fees and incentive distributions.
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Adjusted EBITDA margin slightly declined to 9.3% in Q2 2026 from 9.5% in the prior year period.
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The company reported a GAAP net loss from continuing operations of $31 million for the quarter, wider than the $26 million loss in the prior year.
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The ongoing strategic review process has yielded no updates, leaving uncertainty regarding the company's future direction and potential outcomes.
Q & A Highlights
Q: Can you give us some color on where you are as far as rolling on the ZBB benefits and where should we expect that to trend in the coming quarters? A: Kevin Moran, President and Operating Officer, confirmed that zero-based budgeting (ZBB) is now in its second year of use for the 2025 and 2026 budgeting processes. He emphasized the company's laser focus on reducing its cost structure to improve profitability, combined with revenue growth, which leads to confidence about the future. He expects continued cost discipline to drive down all elements of the cost structure, both comp and non-comp, as evidenced by the Q2 numbers.
Q: Can you talk a little about the net flows in the quarter and how you guys are thinking about organic growth going forward? A: Nancy Curtin, Interim CEO and Global CIO, stated that organic growth is a clear priority. She was pleased to report approximately $700 million of net flows in the second quarter despite a volatile year. She noted that combined with market performance, the results were pleasing, especially since the firm stayed invested during the turbulent first quarter and benefited from a bounce-back in the second quarter.
Q: Can you talk about the appetite for further M&A deals and which geographies would be interesting? Following Kontor, does it make sense to expand the European footprint or are domestic opportunities more attractive? A: Nancy Curtin explained that AlTi is always open to acquisition opportunities in core and strategic markets. While the U.S. has been very successful and the Kontor acquisition in Germany provides a great foothold, the company does not pursue a roll-up strategy. Instead, they look strategically for management teams and companies that align with their philosophy, client-first mentality, and independent integrated holistic advice model. She noted there is nothing to comment on at the moment, but it remains part of the longer-term strategy.
Q: Is there any update on the strategic review or just maybe give an update of what you guys are thinking there? A: Nancy Curtin stated that as a public company, there is not much she can comment on regarding rumor and speculation. She confirmed that the special committee continues to review any and all opportunities that will enhance value for shareholders, clients, employees, and the long-term franchise value of the firm. The special committee remains in place, but that is all she could comment on at the time.
Q: Can you talk a little bit about the event-driven platform and the trends there that you're seeing? A: Nancy Curtin explained that external and hedge fund strategies run with a much lower level of net exposure, so they do not move violently with the market. They protected capital well in the first quarter, but the robust market recovery in the second quarter was not an ideal environment for these strategies. She noted that event-driven strategies are deal-specific, focusing on announced deals with complexity and appropriate risk-return payoffs. Performance may be muted, but the M&A environment can change quickly, and the fourth quarter tends to be better for hedge fund strategies.
Q: Can you provide more detail on the financial results for the second quarter of 2026? A: Pat Keenan, CFO, reported that AUM grew to $51 billion, up 8% year-over-year and 6% from March 31, 2026. Total revenue was $58 million, an 11% increase year-over-year, with recurring management and advisory fees totaling $54 million, up 11% year-over-year and 5% sequentially. Adjusted EBITDA was over $5 million, up 9% from the prior year period, with an adjusted EBITDA margin of 9.3%. Reported operating expenses improved 12% to $69 million, with compensation down 5% and non-compensation expenses down 20% year-over-year.
Q: What was the impact of the Asian Credit and Special Situations Strategy on the financials? A: Pat Keenan explained that due to the unexpected decision by the Asian Credit and Special Situations Manager to unwind the fund within a 12-month time horizon, AlTi recorded an unrealized investment loss of nearly $19 million on its stake in the fund. The strategy represented about 75 basis points of recurring management fees and about 650 basis points of the incentive portion of distributions year-to-date. The company anticipates diminishing contributions to revenues from this fund going forward.
Q: What are the key strategic priorities for AlTi Global moving forward? A: Nancy Curtin outlined three clear strategic priorities: first, organic growth, which is the clearest indication of the health of a wealth management business; second, continued investment in the core wealth management franchise, including expanding advisor capacity in key markets like Miami and adding talent; and third, a laser focus on improving profitability and operating efficiency through streamlining the organization, simplifying operations, and reducing complexity. She noted the company is in the early stages of seeing benefits from these efforts, with expectations for acceleration in 2027.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
