AlTi Global (ALTI) Q1 2025 earnings summary

Executive summary

• Reported Q1 2025 revenue of $58M, up 14% year-over-year, with 83% from recurring fees and over $76B in combined assets under management or advisement, supported by strategic acquisitions including Kontora, East End Advisors, Envoi, and Pointwise Partners, expanding U.S. and European presence.

• Adjusted EBITDA was $9.4M, up from $6.8M in Q1 2024; adjusted net income was $3M, while GAAP net loss was $(2.9)M, mainly due to higher expenses and lower gains on earn-out liabilities.

• Launched a new private credit program and deepened partnerships with Allianz X and Constellation Wealth Capital, securing $240M in client commitments and receiving $250M from Allianz X and $150M from Constellation.

• Continued operational streamlining, including exiting non-core businesses, implementing zero-based budgeting, and progressing on technology transformation and cost optimization.

• Operates with approximately 430 professionals across 19 cities in 8 countries, emphasizing impact and values-aligned investing.

Financial highlights

• Q1 2025 consolidated revenue was $58M, a 14% year-over-year increase, with 83% from recurring management fees.

• Wealth Management & Capital Solutions segment revenue rose 23% to $57M, with adjusted EBITDA of $19M and a 34% margin.

• Adjusted EBITDA margin improved to 16% from 13% year-over-year.

• Operating expenses were $72M, with normalized expenses at $50M, up from $45M in Q1 2024.

• International Real Estate segment revenue declined 79% to $0.9M, with AUM/AUA falling 13% to $8.7B.

Outlook and guidance

• Kontora acquisition expected to be accretive to EBITDA in 2025 and enhance platform profitability through scale and synergies.

• Focus remains on driving growth through organic initiatives and strategic acquisitions, with a strong M&A and organic growth pipeline.

• Margin expansion targeted through zero-based budgeting and technology upgrades, with more detailed long-term financial guidance to be provided later in the year.

• Management continues to review strategic options for the International Real Estate segment, aiming to finalize a course of action pending regulatory approval.

• The company expects to further reduce operating cash outflows as cost rationalization and capital deployment initiatives mature.