AlTi Global, Inc. (ALTI) Q2 2026 Earnings: Revenue $58M (+10.8%)
ALTI — Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop
AlTi Global's Q2 2026 revenue rose 11% to $58.0M and operating costs fell 12%, but an $18.5M write-down on an Asian credit fund stake and $11.0M of preferred dividends left a $0.31 loss per share.
Revenue
$58M
+10.8% YoY
Net income
-$24M
Diluted EPS
$-0.31
Operating margin
-18.7%
This period vs a year ago
Same period last year
This period
Revenue▲+10.8%
≈$52M
$58M
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Fee income up, costs down, but a fund write-down and preferred dividends kept the loss in place
AlTi Global is a wealth manager for very rich families, foundations and institutions. In the second quarter of 2026 (April to June) it grew revenue 11% to $58.0 million and cut operating expenses 12% to $68.9 million. That narrowed its operating loss from $25.6 million to $10.9 million. Most of that improvement was then lost below the operating line. AlTi took an $18.5 million unrealized loss on its stake in an Asian credit fund after the fund's manager decided to wind the fund down over 12 months. Net loss attributable to AlTi was $23.5 million, roughly the same as a year earlier ($24.4 million). After $11.0 million of dividends owed to preferred shareholders, the loss per Class A share from continuing operations was $0.31, compared with $0.33 a year ago.
At a glance
Management fees: $54.4 million, up 11%. This is the recurring fee charged on client assets. It made up 94% of revenue, and it is the part of the business that is improving.
Operating expenses: $68.9 million, down 12%. Professional fees fell by 40% ($15.4 million to $9.3 million) as cost cuts took effect. Expenses still exceeded revenue by $10.9 million.
Adjusted EBITDA: $5.4 million, a 9.3% margin. This is the company's own measure of earnings before interest, tax, depreciation and amortization, also excluding stock pay and one-offs. It is half of the quarter's $11.0 million in preferred dividends, which are paid in new shares rather than cash.
The numbers
Metric
Q2 2026
Q2 2025
YoY Change
Total revenue
$58.0M
$52.4M
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+10.8%
Management / advisory fees
$54.4M
$49.2M
+10.6%
Total operating expenses
$68.9M
$78.0M
-11.6%
Operating loss
-$10.9M
-$25.6M
loss narrowed by $14.7M
Operating margin
-18.7%
-48.8%
+30.1 pts
Net loss attributable to AlTi Global
-$23.5M
-$24.4M
loss narrowed by $0.9M
Diluted EPS, continuing operations
-$0.31
-$0.33
loss narrowed by $0.02
Adjusted EBITDA (non-GAAP)
$5.4M
$5.0M
+8.6%
Adjusted EBITDA margin
9.3%
9.5%
-0.2 pts
Wealth management AUM (period end)
$49.7B
$45.9B
+8.1%
Total AUM / AUA (period end)
$51.4B / $96.0B
$47.6B / $97.2B
+8% / -1%
AUM (assets under management) are assets AlTi actively manages and is paid on. AUA (assets under advisement) is a broader figure that adds assets it oversees or reports on but does not necessarily charge for. Net loss attributable to AlTi includes discontinued operations; in Q2 2025 that was a $4.0 million loss from the UK real estate business, which was placed in administration in July 2025. Q2 2026 had none.
Where the revenue came from
Management fees rose $5.2 million. The 10-Q says the increase was "driven by higher fees due to increases in our AUM largely attributable to our acquisition of Kontora in the second quarter of 2025, positive net client flows, and strong portfolio performance." Kontora, a German family-office firm, closed on April 30, 2025. That means part of this year's growth comes from owning it for a full quarter rather than two months, so not all of it is new business. Average wealth management AUM rose 8.7% to $48.3 billion, and fees rose slightly faster.
The quarter's asset growth came mostly from markets. Wealth management AUM rose from $46.9 billion to $49.7 billion during the quarter. Of that $2.8 billion increase, $2.3 billion came from market gains. Net new client money added $0.7 billion, and existing clients withdrew a net $0.3 billion. That gives roughly $0.4 billion of organic growth, about 1% of starting assets.
Revenue fell 21% from Q1 ($73.1 million), but that drop is seasonal. "Distributions from investments" are AlTi's share of fees from outside funds it holds stakes in. They were $21.3 million in Q1 because incentive fees from those stakes are mostly paid in the first quarter. In Q2 they were $3.4 million.
Where the costs came out
The 12% cut in operating expenses came mainly from two lines:
Professional fees fell $6.1 million, which the 10-Q attributes to "the realization of our expense initiative savings taking hold in the income statement."
Compensation fell $2.1 million, mostly from lower stock-based pay on older awards rather than fewer staff.
The company says operating expenses were $53 million on a "normalized" basis, which removes non-recurring and non-cash items. Against $58 million of revenue, that would mean a small operating profit. The $16 million difference between reported and normalized expenses is mainly stock-based compensation ($6.3 million), transaction costs ($3.7 million) and depreciation and amortization ($4.7 million). Stock pay is a real cost to shareholders because it dilutes them, even though no cash leaves the company.
What the headline numbers hide
The fund write-down. Gain (loss) on investments swung from a $3.5 million gain to a $21.4 million loss. Most of this was the $18.5 million unrealized loss on the Asian Credit and Special Situations stake. The fund itself reported a +1.94% return for the quarter, so this is a markdown of the value of AlTi's stake, not poor fund performance. It is non-cash, and the adjusted figures exclude it. It does reduce a source of distribution income: AlTi receives a 12% share of that manager's revenue, which will shrink as the fund winds down. Investments at fair value fell from $144.2 million at year end to $128.4 million.
Last year's tax benefit didn't repeat. Pre-tax loss from continuing operations was essentially flat ($30.7 million vs $30.8 million). The loss from continuing operations still widened to $30.8 million from $26.1 million because Q2 2025 included a $4.8 million tax benefit. AlTi now records a full valuation allowance on its deferred tax assets, meaning it no longer counts on using its losses to cut future taxes. Its first-half effective tax rate was -0.3%.
GAAP vs adjusted. Adjusted net income was $0.5 million compared with a GAAP pre-tax loss of $30.7 million. The $31.2 million gap is mainly the investment loss ($21.4 million), stock pay ($6.3 million) and transaction costs ($3.7 million). Transaction costs have appeared in every recent quarter (Q1 $2.7 million, Q2 2025 $7.0 million), so they look recurring rather than one-off.
Preferred dividends. Allianz and Constellation hold $358.6 million of convertible preferred stock (Series A and C) that pays 9.75% dividends. These dividends are mostly paid in kind: holders receive more preferred shares, and part of the Series A dividend is paid in common stock. That takes $11.0 million a quarter from common shareholders. It is why the $23.5 million net loss becomes a $34.4 million loss for Class A shareholders. The preferred balance on the books rose from $345.8 million to $358.6 million in six months.
Dilution. The weighted Class A share count rose 11% to 110.9 million. AlTi bought back 1.3 million shares for $5.7 million in the first half, linked to equity compensation, but that offset only a small part of the issuance. The smaller per-share loss is partly because the loss is spread over more shares.
Cash conversion. First-half operating cash flow was +$2.9 million against a $22.4 million net loss from continuing operations, an improvement from -$50.6 million a year earlier. The figure depends heavily on timing. Collecting year-end receivables (mostly last year's incentive fees) added $29.7 million, and paying annual bonuses used $28.3 million. Cash fell from $41.2 million to $31.2 million. Debt is small at $12.3 million, mostly an interest-free settlement owed to the administrators of the former UK real estate business, payable through November 2027.
Controls and leadership. Management concluded that internal control over financial reporting was not effective as of December 31, 2025, and the 10-Q reports no change apart from new leadership. Nancy Curtin has been interim CEO since March 30, 2026. Patrick Keenan, previously chief accounting officer, replaced the retiring Michael Harrington as CFO on July 1.
Takeaway: AlTi's wealth management fees are growing at about 11% and its cost cuts are visible in the expense lines, but common shareholders are still behind. The quarter's $5.4 million of adjusted EBITDA is half the $11.0 million in preferred dividends added each quarter, so the preferred holders' claim keeps growing faster than the business earns.
Outlook
AlTi gives no numerical guidance. The earnings presentation lists management's priorities as "accelerating organic revenue growth, evaluating selective inorganic opportunities in core markets, and simplifying the cost structure." It also says that "reported expenses do not yet fully reflect progress due to the strategic review."
What to watch in Q3 (the 10-Q should arrive around early-to-mid November, based on this year's filing pattern):
Whether reported expenses move toward the $53 million normalized figure. Professional fees were still $9.3 million, and the company excluded $4.1 million of transaction and streamlining costs (spread across expense lines) from its adjusted figures. Any further drop in these would show up directly in the operating loss.
Organic flows rather than markets. This quarter's AUM growth came mostly from market gains. Net client additions of $0.7 billion were the best of the last five quarters, but the previous two were slightly negative. One quarter is not yet a trend.
The Asian credit fund wind-down. It ends a source of distribution income over the next 12 months. The stake's value could also be marked down again or recovered as the fund sells its holdings.
Our view: the business is improving gradually. Fee revenue is growing about 11% a year, and the company's normalized cost base ($53 million) is now below quarterly revenue ($58 million). The obstacle for common shareholders is the capital structure. Until adjusted EBITDA consistently exceeds the roughly $44 million a year the preferred stock accrues, or the preferred converts to common at the $8.70 conversion price, better operations will mostly benefit Allianz and Constellation before Class A holders.