0001628280-25-039531
SEC filingRevenue grew 7.4% YoY to $53.1M but net loss widened to $30.0M due to elevated non-compensation expenses and fair value losses; adjusted EBITDA fell to $3.8M.
For the three months ended June 30, 2025, AlTi Global reported total revenues of $53.1 million, up 7.4% from $49.5 million in the prior-year quarter. The increase was driven by higher management/advisory fees ($3.0M), incentive fees ($0.4M), and distributions from investments ($0.4M). Despite revenue growth, the company recorded a net loss of $(30.0) million compared to $(9.4) million in Q2 2024, primarily due to a $13.2 million increase in non-compensation expenses (including $10.8 million in one-time professional fees) and a $9.4 million unfavorable swing in other income/expenses (driven by a $(7.4) million loss on earnout liabilities versus $(1.9) million prior year). Adjusted EBITDA decreased $1.7 million to $3.8 million, as higher compensation and non-compensation costs outpaced revenue gains.
For the six months ended June 30, 2025, total revenues increased 10.8% to $111.1 million, with distributions from investments jumping $8.5 million to $14.9 million. Net loss was $(32.9) million compared to net income of $12.7 million in H1 2024, again impacted by elevated expenses and fair value adjustments. Adjusted EBITDA for the six months rose slightly to $13.1 million from $12.3 million.
The MD&A does not provide a segment-level revenue breakdown, but segment adjusted EBITDA is disclosed. For Q2 2025, Wealth & Capital Solutions generated adjusted EBITDA of $13.6 million (down from $13.9 million), International Real Estate had negative $(1.2) million (improved from $(5.3) million), and Corporate segment contributed $(8.6) million (worsened from $(3.1) million). The International Real Estate segment is being wound down as of July 11, 2025, which will likely reduce future losses but also eliminate any income from that business.
Wealth management AUM grew to $45.9 billion at June 30, 2025 from $40.4 billion a year ago, driven by market performance and acquisitions. The alternatives platform AUM/AUA increased to $7.0 billion from $7.3 billion, with TIG Arbitrage AUM rising to $1.8 billion.
The company expects continued cost rationalization initiatives to reduce operating cash outflows as it scales. The wind-down of International Real Estate may reduce revenue but also eliminate associated expenses. No explicit financial guidance was provided. Management notes that market volatility and macroeconomic conditions could impact management fees and client demand, but the full impact remains uncertain.
Cash and cash equivalents decreased to $42.4M as of June 30, 2025, from $65.5M at December 31, 2024, driven by $50.1M of net cash used in operating activities during the first half of 2025. Total assets stood at $1.24B, with $148.0M in investments at fair value and $5.5M in equity method investments. Goodwill and intangible assets totaled $867.6M. Total debt was minimal at $0.7M (net of unamortized deferred financing costs), reflecting a net repayment of $0.1M during the period. Shareholders' equity was $990.2M, including $304.8M of non-controlling interests. The company had $7.0M of restricted cash included in cash and equivalents.
The company disclosed operating lease liabilities of $64.3M on the balance sheet, with total undiscounted lease commitments of $9.8B as of June 30, 2025. These are primarily for office space across 19 cities in 9 countries. The timing of these commitments is: $1.7B within one year, $3.1B in one to three years, and $5.0B beyond three years. No other purchase commitments (e.g., supply or capacity) were disclosed in the Notes.
No share repurchases or dividends were declared or paid during the six months ended June 30, 2025. The company made $0.8M in capital expenditures (fixed asset purchases). Debt repayments totaled $0.1M, with no new borrowings. The company issued $18.5M of Series A Preferred Stock (including dividends paid in kind) and $21.3M in equity-settled share-based payments. The Allianz Tranche Right (preferred stock tranche liability) had a fair value of $2.2M as of June 30, 2025, down from $3.9M at year-end 2024.
The company operates two segments: Wealth & Capital Solutions and International Real Estate. Wealth & Capital Solutions generated total revenue of $111.1M for the six months ended June 30, 2025 (up 10.8% YoY), with AUA of $87.8B. International Real Estate had AUA of $9.4B and is being wound down following board approval on July 11, 2025. No segment-level operating income or margin was disclosed. Geographic mix was not provided in the Notes.
For the six months ended June 30, 2025, AlTi Global reported a net loss of $32.9M, compared to net income of $12.7M in the prior-year period. Operating cash flow was negative $50.1M, worsening from negative $45.7M in H1 2024. The primary driver of the cash outflow was a significant working capital drain: accounts payable and accrued expenses decreased by $14.6M, accrued compensation and profit sharing fell by $20.8M, and other liabilities declined by $7.0M. These outflows were partially offset by non-cash charges including equity-settled share-based payments of $21.3M, depreciation and amortization of $9.0M, and unrealized losses on investments of $2.0M.
Capital expenditures (purchases of fixed assets) were minimal at $0.8M, indicating low capex intensity. Free cash flow (operating cash flow minus capex) was approximately -$50.9M, reflecting the operating cash burn. Investing activities provided $13.3M, driven by $20.4M in proceeds from sale of equity method investments, partially offset by $6.6M for the acquisition of Kontora. Financing activities provided $12.0M, primarily from $18.5M in proceeds from issuance of preferred stock and Constellation warrants, offset by $5.1M in cash payments for earnout and $1.3M for earn-in liability.
Anomalies include the large swings in working capital accounts, particularly the $39.5M decrease in fees receivable in the prior period versus a $1.5M increase in the current period, and the absence of significant acquisition-related cash outflows in H1 2025 compared to $69.0M for EEA in H1 2024. The company did not pay dividends or repurchase shares during the period.