AlTi Global, Inc. (ALTI) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. AlTi Global, Inc. operates as a global wealth and investment partner to families, foundations, and institutions. As of June 30, 2026, the Company manages or advises approximately $96.0 billion in combined assets (AUA) and $51.4 billion in Assets Under Management (AUM). The Company operates as a single reportable segment following the disposal of its International Real Estate segment in the third quarter of 2025, which is now classified as discontinued operations.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Total Revenue | $58.0 million | $52.4 million | $131.1 million | $109.5 million |
| Net Loss (GAAP) | $(30.8) million | $(30.0) million | $(22.4) million | $(32.9) million |
| Net Loss Attributable to AlTi | $(23.5) million | $(24.4) million | $(15.8) million | $(22.5) million |
| Adjusted EBITDA | $5.4 million | $5.0 million | $20.3 million | $17.3 million |
| Cash and Cash Equivalents | $31.2 million (as of June 30, 2026) | |||
| Total Debt (Net) | $12.3 million (as of June 30, 2026) | |||
| Operating Cash Flow (YTD) | $2.9 million provided |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 10.8% year-over-year for the quarter and 19.8% year-over-year for the six months ended June 30, 2026. This was driven by a $5.2 million increase in management/advisory fees (Q2) and a $9.8 million increase in distributions from investments (YTD), largely attributable to the acquisition of Kontora and strong portfolio performance.
- Expense Reduction: Total operating expenses decreased by $9.1 million in Q2 2026 compared to Q2 2025, primarily due to a $6.1 million reduction in professional fees and lower equity-based compensation. However, YTD compensation expenses increased by $13.7 million due to acquisition-related costs and new equity grants.
- Investment Losses: The Company recognized a significant unrealized loss of $18.5 million on its investment in "Asian Credit and Special Situations" during the quarter, reflecting a decision by the investment manager to wind down the fund. This contributed to a $21.4 million loss on investments for the quarter.
- Debt Increase: Total debt increased from $0.9 million at year-end 2025 to $12.3 million at June 30, 2026. This increase is primarily due to a $12.3 million non-interest-bearing settlement loan with Administrators related to the International Real Estate businesses.
Guidance, Outlook, and Risks
- Outlook: Management believes current cash and cash equivalents are sufficient to meet operational needs for the next 12 months. The Company continues to monitor macroeconomic factors, including inflation and interest rates, which influence client portfolio values and fee revenue.
- Internal Controls: The Company disclosed that its disclosure controls and procedures were not fully effective as of June 30, 2026, due to remaining material weaknesses in internal control over financial reporting. Remediation efforts are ongoing, including the implementation of new risk assessment and process-level controls.
- Litigation and Contingencies:
- Home REIT/HLIF: Ongoing UK FCA investigations and potential litigation regarding historic management of Home REIT and HLIF. No material loss reserve is currently recorded, but outcomes remain uncertain.
- Redress Provision: A provision of $3.5 million has been recognized for potential redress payments to clients regarding certain Real Estate Products.
- Tolleson Settlement: A $5.1 million settlement regarding a dispute with Tolleson Wealth Management was paid in March 2025.
- Contingent Liabilities: Significant earn-out liabilities totaling $39.8 million and a Tax Receivable Agreement (TRA) liability of $30.3 million remain on the balance sheet, subject to fair value adjustments.
Key Investor Verification Points
- Investment Valuation: Verify the status and wind-down timeline of the "Asian Credit and Special Situations" fund, which caused a material unrealized loss in Q2 2026.
- Internal Control Remediation: Monitor progress on remediation of material weaknesses in internal controls, as the Company is no longer an emerging growth company as of December 31, 2026, and faces stricter compliance requirements.
- Debt Obligations: Review the repayment schedule for the $12.3 million Administrators Term Loan, which is payable in installments through November 2027.
- Regulatory Exposure: Track developments in the UK FCA investigations and potential litigation related to Home REIT and HLIF, as these could result in material penalties or redress costs.
- Adjusted Metrics: Note the significant difference between GAAP Net Loss and Adjusted EBITDA, driven largely by non-cash fair value adjustments on earn-outs, TRA liabilities, and investment mark-to-market losses.