Following our US correspondent's detailed analysis of the group's structure and valuation, AlTi Global has issued its first-quarter results.

AlTi Global flashed signs of improvement in its first-quarter earnings report, but the beleaguered global wealth and asset management firm continued to struggle with several key metrics.

Assets under management climbed to $49 billion, up 9 per cent year-over-year and revenue rose 28 per cent from the same period in 2025 to $73 million. Adjusted EBITDA also posted a double-digit increase, coming in at $15 million, a 21 per cent  jump from last year’s first quarter. But AlTi’s closely-watched wealth management business, which has been at the center of a longstanding valuation dispute between the company and potential buyers, reported net asset outflows for the second quarter in a row.

Money that walked out the door
What AlTi describes as “net client change” declined $200 million in the first quarter, as did “cash flow, net.” The net client change decline was $100 million in last year’s fourth quarter and “cash flow, net” has been negative since the second quarter of 2025, when outflows  totaled $600 million. 

“It is concerning because it’s money that walked out the door,” said one RIA executive who examined the company’s financials. “It appears to be a combination of older clients making withdrawals and other clients leaving and taking their money with them.”

Free cash flow is not only the lifeblood of financial advisory firms but also closely monitored by the market as a measure of the resources a company has to service debt or is able to return to shareholders after covering operating costs and capital spending. 

Operating income loss
What’s more, AlTi’s total operating expenses exceeded total revenue, resulting in an operating income loss of more than $10 million. 

Noting the high amount the company paid out for compensation, employee benefits and “professional fees,” the industry executive questioned whether AlTi overpaid advisors to join the firm, taking a short term loss in hopes of  realizing future gains as clients assets grow.

The operating income loss appears to be a key metric in the dispute between wide spread in the bid and ask price for the firm, a gap that some observers say may be more than $600 million. 

“The cost structure may be too high for what AlTi assembled,” the executive explained. “The seller places a premium value on the AuM and revenues, but buyers may feel the cost of generating that revenue doesn’t support the asking price.”

Negotiations between potential buyers and AlTi have come to a standstill. While the company’s Special Committee evaluating sales offers is still in place to review proposals, its members haven’t received compensation for over a month.

“Costs remain too high”  
“Costs remain too high,” AlTi’s interim CEO Nancy Curtin acknowledged that during the company’s Q1 earnings call, and “addressing that is a near term priority.” Progress on bringing down costs was “obscured” by “temporary and nonoperational items,” including the company’s ongoing strategic review and management restructuring, according to chief financial officer Michael Harrington.

The company also pushed back its turnaround timetable. In the Q4 earnings call Harrington said the company expected 2026 “to mark a turning point for the business.” This week he said cost benefits wouldn’t be visible until “the second half of the year…contingent on the [strategic review cost] process being complete.”

Driving organic growth remains a strategic priority for AlTi, Curtin said, along with possible acquisitions and “improving profitability in a disciplined and sustainable way.”

Stock price “fairly valued”
Despite its problems, wealth manager and financial services group Raymond James continued to cheer AlTi’s prospects, giving it a “strong buy” rating, expecting the stock price to “appreciate [and] produce a total return of at least 15 per cent and outperform the S&P 500 over the next six to 12 months.”

However, the stock should only be considered “suitable,” Raymond James cautioned, for investors willing to take “aggressive risk” on companies with “a short or unprofitable operating history, limited or less predictable revenues, high risk associated with success, high volatility (beta), potential significant financial or legal issues, and the meaningful risk of loss of principal.”

Morningstar described AlTi’s “stock style” as “small value,” said the company had “no economic moat,” and called its trading range of around $4 a share “fairly valued.”

AlTi went public as a Special Purpose Acquisition Company (SPAC) in 2023 at an initial public offering price of $10. The stock closed at $3.45 yesterday on the NASDAQ exchange, down 3.36 per cent.

(See this article from 2021 about the SPAC – aka blank check company – phenomenon of a few years ago.)