ALTI — AlTi Global, Inc.

AlTi Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenues: $255 million for 2025, a 29% increase year-over-year.
• Adjusted EBITDA: $35 million for the year, reflecting a 45% increase; Q4 adjusted EBITDA was $11 million.
• Assets Under Management (AUM): Reached $50 billion, up 10% year-over-year.
• Management Fees: Nearly $200 million for the year, a 9% increase; Q4 management fees were $53 million, up 14% year-over-year.
• Net Loss: $155 million for the year, attributed to noncash and nonrecurring items, including a $35 million impairment charge.

2. Strategic Updates and Business Highlights

• Transition in leadership: Michael Tiedemann steps down as CEO; Nancy Curtin appointed as Interim CEO.
• Focus on ultra-high net worth clients, with an emphasis on holistic wealth management solutions.
• Successful exit from the noncore international real estate business, allowing for cost savings and a streamlined focus.
• Implementation of zero-based budgeting (ZBB) expected to yield $20 million in annual gross savings by 2026.
• Growth in the endowment and foundation business, now managing over $8 billion in AUM.

3. Forward Guidance and Outlook

• Anticipation of continued organic growth driven by strong client demand and the simplification of the business structure.
• Expectation for 2026 to mark a turning point with improved normalized results as the benefits of cost-saving initiatives materialize.
• Ongoing strategic review by a special committee to explore options for maximizing shareholder value.

4. Bad News, Challenges, or Points of Concern

• The company reported a significant net loss, indicating challenges with nonrecurring costs and impairments.
• Foreign exchange headwinds impacted international business performance, particularly due to U.S. dollar depreciation.
• Temporary costs associated with the strategic review process have affected reported results, masking underlying operational improvements.
• The transition in leadership may introduce uncertainty during the adjustment period.

5. Notable Q&A Insights

• Nancy Curtin emphasized continuity in strategy despite the leadership change, focusing on maintaining the firm's commitment to ultra-high net worth clients.
• Discussion on the merger arbitrage strategy, which performed well in 2025, with expectations of continued M&A activity potentially benefiting this segment in 2026.
• Allianz's recent 13D filing was noted, with no clear insights into their intentions, but the company remains open to discussions regarding strategic partnerships.
• Management expressed confidence in their ability to pursue both organic and inorganic growth, with capital readily available if needed for acquisitions.

This summary encapsulates the key points from AlTi's Q4 2025 earnings call, highlighting financial performance, strategic direction, and areas of concern.