Executive Summary

Revenue increased to $57.2M, up 10% year-over-year and 9% sequentially; 96% of revenues were recurring, signaling resilience in the wealth management model .
Adjusted EBITDA was $6.2M with an 11% margin; GAAP net loss of $107.0M was driven by non-cash, non-recurring items: ~$35M arbitrage fund impairment, real estate wind-down, and a full valuation allowance on the deferred tax asset .
AUM reached $49.3B (+6% YoY, +4% QoQ) and AUA $89.2B (+31% YoY), supported by portfolio performance and recent acquisitions; organic pipeline remains robust with $600M of projected billable international assets added in Q3 and ~$1.1B in the U.S. year-to-date .
Strategic simplification completed: international real estate placed under administration (discontinued ops), single reporting segment adopted, and zero-based budgeting (ZBB) showing tangible savings; management expects normalized expenses and margin expansion going forward .
No formal guidance; buyback and capital allocation are under board discussion; consensus estimates via S&P Global for Q3 2025 were unavailable (coverage appears limited), so beats/misses vs Street cannot be assessed.*

What Went Well and What Went Wrong

What Went Well

Recurring revenue strength and topline growth: $57.2M revenue (+10% YoY), with 96% recurring management/advisory fees; management fees rose to $51.7M (+7% YoY) .
AUM/AUA expansion: AUM $49.3B (+6% YoY), AUA $89.2B (+31% YoY); organic momentum included $600M projected billable assets added internationally in Q3 and ~$1.1B YTD in the U.S. .
Cost discipline progress: “Zero-Based Budgeting initiatives delivering tangible savings… underscoring the tangible impact,” with expected recurring annual gross savings of ~$20M upon completion; “the cost base is structurally lower and continuing to decline” .

Management quote: “As new mandates and assets move into billing, revenue growth will convert into margin expansion.” — CEO Michael Tiedemann .

What Went Wrong

Non-cash, non-recurring charges drove a large GAAP loss: $107.0M net loss, including a ~$35M impairment related to the arbitrage strategy and a $30M tax valuation allowance; discontinued ops loss $19.9M .
Adjusted EBITDA margin compression: 11% vs 23% in Q3 2024, reflecting higher professional fees/G&A and consolidation costs (e.g., Kontora) despite revenue growth .
Alternatives platform AUM contraction YoY and arbitrage AUM decline last year triggered impairment: “assets have not grown… actually shrank,” necessitating refreshed assumptions and impairment; strategy performance otherwise strong in 2025 YTD .

Financial Results

Consolidated Performance (Q1–Q3 2025)

Metric ($USD Millions)	Q1 2025	Q2 2025	Q3 2025
Revenue	$58.0	$53.0	$57.2
Adjusted EBITDA	$9.0	$4.0	$6.2
GAAP Net Income (Loss)	$(3.0)	$(30.0)	$(106.9)
Adjusted Net Income (Loss)	$3.0	$(0.6)	$1.0

Notes: Q3 GAAP loss reflects non-cash charges tied to real estate wind-down, arbitrage impairment, and tax valuation allowance .

Q3 2025 vs Prior Year and Sequential

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($M)	$51.8	$53.0	$57.2
Management/Advisory Fees ($M)	$48.1	N/A	$51.7
Incentive Fees ($M)	$0.1	N/A	$2.4
Distributions from Investments ($M)	$3.6	N/A	$3.1
Total Operating Expenses ($M)	$61.3	N/A	$85.7
Adjusted EBITDA ($M)	$11.8	$4.0	$6.2
Adjusted EBITDA Margin (%)	23%	N/A	11%
GAAP Net Income (Loss) ($M)	$(115.3)	$(30.0)	$(106.9)

EPS (Q3 2025)

Metric	Q3 2025
Diluted EPS – Continuing Ops ($)	$(0.69)
Diluted EPS – Discontinued Ops ($)	$(0.20)

Revenue Composition (Q3 2025)

Component ($USD Thousands)	Q3 2024	Q3 2025
Management/Advisory Fees	$48,101	$51,680
Incentive Fees	$88	$2,435
Distributions from Investments	$3,562	$3,081
Other Income/Fees	$58	$42
Total Income (Revenue)	$51,809	$57,238

Balance Sheet Snapshot

Metric ($USD Thousands)	Dec 31, 2024	Sep 30, 2025
Cash and Cash Equivalents	$64,417	$35,847
Intangible Assets, Net	$469,563	$440,085
Goodwill	$377,842	$385,721
Deferred Tax Asset, Net	$19,769	$0
Total Shareholders’ Equity	$970,195	$883,834

KPIs and AUM/AUA Trend

KPI	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025
AUM Period-End ($B)	44.7	43.1	42.9	45.9	47.7
Avg AUM ($B)	42.5	43.9	43.0	44.4	46.8
AUA Period-End ($B)	61.0	60.5	60.6	80.8	82.2
Avg AUA ($B)	58.5	60.7	60.5	70.7	81.5
Recurring Revenue (%)	N/A	N/A	N/A	N/A	96%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Formal Financial Guidance (Revenue/EPS/Margins)	Q4 2025 onward	None	None; management “avoiding providing guidance”	Maintained (no formal guidance)
ZBB Savings (Recurring Annual Gross)	Through 2026	Not quantified prior	~$20M gross savings upon completion near end of 2026; savings ramping with vendor, occupancy, and tech rationalization	Clarified timeline and magnitude
Expense Normalization	Near-term	Not specified	Normalized operating expenses ~$51M in Q3 vs $43M in Q3’24; non-comp down QoQ ex-Kontora; trajectory improving	Improving run-rate disclosed
Capital Allocation (Buyback)	Ongoing	N/A	Under board discussion; evaluating share repurchases	New topic under evaluation
International Real Estate Exit Support	2026–2027	N/A	Funding agreement to relieve payable via scheduled cash payments starting Q1 2026, through Dec 31, 2027	New disclosure

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
ZBB / Cost Discipline	ZBB program initiated; expected ~$20M savings across non-comp categories; early normalization of expenses	“Structurally lower” cost base; measurable non-comp savings QoQ; further occupancy/tech savings to come	Improving
International Real Estate Exit	Definitive plan forthcoming; exit prioritized	Discontinued ops; charges taken; funding support plan to 2027; no further P&L impact expected	Completed exit; residual support
AUM/AUA & Organic Growth	Strong pipeline; Kontora consolidation; H1 wins (>$500M international; ~$430M U.S.)	$600M added internationally in Q3; ~$1.1B YTD U.S.; AUM $49.3B; AUA $89.2B	Accelerating
Allianz JV / Private Markets	JV launched; private credit access; commitments ~$240M by Q1	JV cited as differentiator for UHNW access and pricing; continued growth	Ongoing growth
Pricing Initiatives	Highlighted as lever; ROA improvement discussed	Refining pricing models internationally to align complexity and value; margin lift targeted	Executing
M&A Pipeline & Kontora Integration	Kontora closed; integration progress; Germany expansion	Integration “going very well”; early wins; incentive-aligned earnout for margin improvement	Positive integration

Management Commentary

Strategy and focus: “The restructuring of the international real estate business is complete… the platform is simplified and scalable… revenue growth will convert into margin expansion.” — CEO Michael Tiedemann .
Model resilience: “95% of revenues… were recurring, underscoring the durability and predictability of our model.” — CFO Mike Harrington .
Cost trajectory: “Additional savings are expected to come online soon… occupancy optimization… wind down of legacy technology and vendor contracts… central to our trajectory.” — CFO Mike Harrington .
Capital and pipeline: “On the list… share repurchases… always evaluating… pipeline is global” — CEO Michael Tiedemann .

Q&A Highlights

Normalized EBITDA run-rate: Management points investors to adjusted EBITDA ($6M) as the normalized base to expand from, with ZBB and growth tailwinds .
Arbitrage impairment: Intangible impairment driven by refreshed assumptions amid AUM decline last year; strategy performing well in 2025 YTD .
Restructuring complete: U.K. real estate charges behind; no further P&L impact envisaged, only scheduled support payments to administrator reducing payable .
Buyback and portfolio optimization: Buyback under board discussion; ongoing optimization of balance sheet and potential pruning evaluated continuously (no announcements) .
Deal pipeline and geography: Germany integration positive; densification in existing jurisdictions and Middle East opportunities under active evaluation .

Estimates Context

Street consensus via S&P Global for Q3 2025 was unavailable; no reliable EPS, revenue, or EBITDA consensus values were returned for ALTI, indicating limited analyst coverage.*
Implication: Without consensus, estimate-related beats/misses cannot be assessed. Post-Q3, we expect coverage to improve as the business simplifies and normalized metrics stabilize .

Key Takeaways for Investors

Recurring fee engine intact: 96% recurring revenue with AUM/AUA growth supports predictable topline; organic momentum likely to translate into margins as assets move into billing .
Non-cash charges mask underlying progress: Large GAAP loss stems from one-time accounting items (arbitrage impairment, tax DTA allowance, real estate exit); adjusted metrics and normalized expenses indicate healthier run-rate .
Cost discipline is a meaningful catalyst: ZBB savings, occupancy and tech rationalization show visible QoQ non-comp reductions; ~$20M recurring savings upon completion should expand margins into 2026 .
Strategic optionality: M&A and pricing initiatives, plus Allianz JV private markets access, enhance differentiation in UHNW; Germany (Kontora) integration and Middle East pipeline bolster growth runway .
Capital allocation watchlist: Buyback under board review; real estate wind-down support cash outflows scheduled to begin Q1 2026 and end by 2027; liquidity/structure choices remain levers .
Near-term trading: Expect focus on normalized margins and cash trends as ZBB benefits flow; any updates on buybacks or large mandates could be positive catalysts .
Medium-term thesis: Simplified single-segment wealth model with high retention, global footprint, and JV access to alternatives positions ALTI for scalable earnings and margin expansion as cost base right-sizes .

Footnote: *Consensus estimates via S&P Global were unavailable for ALTI’s Q3 2025 period at time of retrieval; values would normally be retrieved from S&P Global.

AlTi Global, Inc. (ALTI)·Q3 2025 Earnings Summary