Group 1 - ALTI Global Inc (ALTI) is a financial company providing merchant banking, corporate advisory, brokerage, and placement agency services. The Zacks Consensus Estimate for its current year earnings has been revised 81.4% downward over the last 60 days [1] - J & J Snack Foods (JJSF) is a manufacturer, marketer, and distributor of branded niche snack foods and frozen beverages for the food service and retail supermarket industries. The Zacks Consensus Estimate for its current year earnings has been revised 15.6% downward over the last 60 days [2] - Guess (GES) designs, markets, distributes, and licenses casual apparel and accessories for men, women, and children, reflecting American lifestyle and European fashion sensibilities. The Zacks Consensus Estimate for its current year earnings has been revised almost 12.5% downward over the last 60 days [3]

Group 1: Earnings Performance - AlTi Global, Inc. reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of a loss of $0.02 per share, representing an earnings surprise of 350% [1] - The company posted revenues of $57.96 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.54%, compared to year-ago revenues of $50.81 million [2] - Over the last four quarters, AlTi Global has surpassed consensus EPS estimates three times [2] Group 2: Stock Performance and Outlook - AlTi Global shares have declined approximately 22% since the beginning of the year, while the S&P 500 has decreased by 3.8% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is breakeven on $55.2 million in revenues, and $0.08 on $253.3 million in revenues for the current fiscal year [7] Group 3: Industry Context - The Financial - Miscellaneous Services industry, to which AlTi Global belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact AlTi Global's stock performance [5][6]

Financial Data and Key Metrics Changes - The company generated $58 million in consolidated revenue for Q1 2025, representing a 14% year-over-year increase [8][25] - Adjusted EBITDA for the quarter was $9 million, up from $7 million in the same period last year, reflecting a 38% increase [8][26] - The company reported a net loss of $3 million on a GAAP basis, while adjusted net income was $3 million [26] Business Line Data and Key Metrics Changes - Revenue in the core Wealth Management and Capital Solutions segment rose 23% year-over-year, driven by a 10% increase in assets under management and advisement [8][25] - The Wealth and Capital Solutions segment generated $57 million in revenue, contributing significantly to overall growth [25] - Adjusted EBITDA for the Wealth and Capital Solutions segment was $19 million, reflecting a 34% margin [27] Market Data and Key Metrics Changes - The company closed the acquisition of Kontoora, marking its entry into Germany, the world's third-largest ultra-high-net-worth market [6][11] - Total assets in the Wealth and Capital Solutions segments reached approximately $82 billion, including around $32 billion managed through the international platform [12] Company Strategy and Development Direction - The company aims to become the leading independent global multifamily office and OCIO platform, focusing on strategic acquisitions and organic growth [6][18] - A zero-based budgeting approach is being implemented to align costs with strategic priorities and enhance operational efficiency [7][20] - The company is exiting non-core businesses to streamline operations and focus on high-conviction opportunities [7][22] Management's Comments on Operating Environment and Future Outlook - Management noted that despite market volatility, portfolios remained resilient due to broad diversification across asset classes [17][18] - The company is optimistic about growth opportunities in Germany and the strong organic pipeline in the U.S. [39][40] - Management emphasized the importance of aligning investments with clients' values, highlighted by the launch of the Alti Global Social Progress Index [19][20] Other Important Information - The company ended the quarter with $52 million in cash and no debt, evaluating financing alternatives for future growth [29][30] - The company is advancing its marketing strategy with a focus on segmentation to better resonate with client needs [15][16] Q&A Session Summary Question: Can you discuss the zero-based budgeting efforts and provide a timeline for expected reductions? - Management indicated that the zero-based budgeting process is a line-by-line review across all segments, with implementation already underway [34][35] - More detailed quantification of cost savings is expected to be provided in August [36] Question: What are the expectations for growth in Germany and the M&A pipeline? - Management expressed optimism about the German market, highlighting the successful acquisition of Kontoora and ongoing client engagements [38][39] - The M&A pipeline includes both individual team lift-outs and organizations in various markets, with a strong organic growth pipeline as well [40] Question: Can you provide details on the real estate business and its near-term direction? - The company is divesting from its international real estate segment, focusing on core wealth management operations, with a definitive plan expected by the next call in August [44] Question: How is the company navigating market volatility and its impact on AUM? - Management remains relatively sanguine about market volatility, emphasizing a balanced asset approach and the ability to adapt to changing conditions [46][47]

Financial Data and Key Metrics Changes - AlTi generated $58 million in consolidated revenue for Q1 2025, representing a 14% year-over-year increase [8][23] - Adjusted EBITDA for the quarter was $9 million, up from $7 million in the same period last year, reflecting a 38% increase [8][25] - The company reported a net loss of $3 million on a GAAP basis, while adjusted net income was $3 million [25] Business Line Data and Key Metrics Changes - Revenue in the core Wealth Management and Capital Solutions segment rose 23% year-over-year, driven by a 10% increase in assets under management and advisement [8][23] - The Wealth and Capital Solutions segment generated $57 million in revenue, contributing significantly to overall growth [23][24] - Adjusted EBITDA for the Wealth and Capital Solutions segment was $19 million, reflecting a 34% margin [26] Market Data and Key Metrics Changes - The acquisition of Kontoora marks AlTi's entry into Germany, the world's third-largest ultra-high-net-worth market, with total assets in the Wealth and Capital Solutions segments reaching approximately $82 billion [11][12] - The company secured approximately $240 million in commitments from international wealth clients through its new private credit program [10] Company Strategy and Development Direction - AlTi aims to become the leading independent global multifamily office and OCIO platform, focusing on strategic acquisitions and organic growth [6][30] - The company is advancing a resource optimization program through a zero-based budgeting approach to align costs with strategic priorities [7][19] - AlTi is exiting non-core businesses to streamline operations and focus on high-conviction opportunities [7][21] Management's Comments on Operating Environment and Future Outlook - Management noted that despite significant market volatility, portfolios remained resilient due to broad diversification across asset classes [16] - The company is focused on maintaining stable allocations and using market volatility to deploy capital as attractive opportunities arise [17] - Management expressed confidence in the long-term growth potential driven by strategic partnerships and a strong organic growth pipeline [22][39] Other Important Information - The company has launched the 2025 Alti Global Social Progress Index to help clients align investments with social impact [18] - AlTi ended the quarter with $52 million in cash and no debt, evaluating financing alternatives for future growth [28][29] Q&A Session Summary Question: Can you discuss the zero-based budgeting efforts and provide a timeline for expected reductions? - Management indicated that the zero-based budgeting process is a line-by-line review across all segments, with implementation already underway and more details to be provided later in the year [33][35] Question: What are the expectations for growth in Germany and the M&A pipeline? - Management highlighted the importance of the German market and the successful integration of Kontoora, noting a strong pipeline for both organic growth and potential acquisitions [36][38] Question: What is the status of the real estate business? - Management confirmed that they are divesting from non-core real estate operations and expect to provide a definitive plan by the next call [42][43] Question: How is the company navigating market volatility and its impact on AUM? - Management expressed a relatively calm outlook, emphasizing a focus on high-quality risk assets and the ability to adapt to changing market conditions [44][46]

First Quarter 2025 Earnings | May 12, 2025 AlTi Global 1 Notes and Important Disclosures This Presentation (together with oral statements made in connection herewith, the "Presentation") is for informational purposes only to assist interested parties in evaluating AlTi Global, Inc. (along with its consolidated subsidiaries, "AlTi Global" or the "Company"). About AlTi Global AlTi Global is a leading independent global wealth manager providing entrepreneurs, multi-generational families, institutions, and emer ...

Financial Performance - Total income for the three months ended March 31, 2025, was $57,963 thousand, an increase of 14% compared to $50,812 thousand for the same period in 2024[20] - Net income attributable to AlTi Global, Inc. for the three months ended March 31, 2025, was $1,910 thousand, a decrease of 93.6% from $29,689 thousand in the same period of 2024[20] - The company reported a net loss of $2,882 thousand for the three months ended March 31, 2025, compared to a net income of $22,085 thousand for the same period in 2024[23] - The company reported a total comprehensive income of $343 thousand for the three months ended March 31, 2025, compared to $18,008 thousand for the same period in 2024[23] - For the three months ended March 31, 2025, the net income was a loss of $2.882 million compared to a net income of $22.085 million for the same period in 2024[28] - The Company recorded total revenue of $57,444,000 and net income of $30,124,000 for the three months ended March 31, 2024[187] - For the three months ended March 31, 2025, total income increased to $57,963,000 compared to $50,812,000 for the same period in 2024, reflecting a growth of approximately 4.5%[193] Operating Expenses - Total operating expenses increased to $71,452 thousand for the three months ended March 31, 2025, up from $65,480 thousand in the same period of 2024, marking an increase of approximately 9.0%[20] - The Company recognized equity-based compensation expenses totaling $7,435,000 for the three months ended March 31, 2025, compared to $6,314,000 for the same period in 2024[200] - The Company has an unrecognized equity-based compensation expense of $23.1 million expected to be recognized over a weighted average period of 2.09 years[197] Cash and Assets - Total assets decreased from $1,255,833 thousand as of December 31, 2024, to $1,212,807 thousand as of March 31, 2025, representing a decline of approximately 3.4%[18] - Cash and cash equivalents decreased from $65,494 thousand as of December 31, 2024, to $52,841 thousand as of March 31, 2025, a decline of approximately 19.4%[18] - The cash and cash equivalents at the end of the period on March 31, 2025, were $52.841 million, down from $137.627 million at the end of March 31, 2024[30] - As of March 31, 2025, restricted cash and cash equivalents amounted to $6.9 million, down from $9.9 million as of December 31, 2024, reflecting liquidity requirements for regulatory compliance[102] Liabilities - Total liabilities decreased from $285,638 thousand as of December 31, 2024, to $240,105 thousand as of March 31, 2025, a reduction of approximately 16.0%[18] - The Company’s debt obligations are recorded at amortized cost, net of any debt issuance costs, and are amortized to interest expense over the life of the related debt instrument[128] Investments and Acquisitions - The company experienced a loss on investments of $6,195 thousand for the three months ended March 31, 2025, compared to a loss of $3,661 thousand in the same period of 2024[20] - The Company acquired East End Advisors, LLC for a total purchase consideration of $93.1 million, which includes contingent consideration of $23.3 million based on future EBITDA performance targets[156] - The fair value of the assets acquired from East End Advisors includes intangible assets valued at $62.7 million and goodwill of $30.1 million[160] - The Company acquired the remaining 50% of Pointwise Partners Limited for a total purchase consideration of $8.0 million, which includes cash and equity considerations[167] - The fair value of the assets acquired from Pointwise Partners includes intangible assets valued at $9.7 million and goodwill of $6.7 million[171] - The Company purchased substantially all assets of Envoi, LLC for a total purchase consideration of $34.3 million, including cash consideration of $25.3 million and estimated contingent consideration of $9.0 million[179] - The fair value of the assets acquired from Envoi includes intangible assets valued at $23.3 million and goodwill of $10.8 million[180] Stock and Equity - The weighted average shares of Class A common stock outstanding increased from 66,718,427 in March 31, 2024, to 94,883,803 in March 31, 2025[20] - The Company’s Class A Common Stock outstanding increased from 93,686,980 shares as of December 31, 2024, to 97,128,692 shares as of March 31, 2025[48] - AlTi Global's Class A Common Stock represents 63.2% of the total voting power of all shares of Common Stock as of March 31, 2025[36] Strategic Developments - The Company has combined the results of its Real Estate Businesses into a standalone operating segment, indicating a strategic shift away from these businesses[50] - The Company’s strategic review of the Real Estate Businesses is ongoing, with several options under consideration pending regulatory approval[50] - The Company expects the impact of newly issued accounting guidance to be minimal on its condensed consolidated financial statements[150][151][152] Regulatory and Compliance - The Company accounts for income taxes under the asset and liability method, establishing valuation allowances for deferred tax assets when realization is deemed less than 50% likely[109] - The effective tax rate and provision require significant estimates and may vary materially throughout the year due to changes in operating income and tax laws[215]

Company Overview - AlTi Global, Inc. (ALTI) is expected to report a quarterly loss of $0.02 per share, reflecting a year-over-year decline of 300% [3] - Revenues are anticipated to be $53.9 million, which represents a 6.1% increase from the same quarter last year [3] Earnings Expectations - Wall Street anticipates a year-over-year decline in earnings despite higher revenues, with the earnings report set to be released on May 12 [1][2] - The consensus EPS estimate has been revised down by 114.29% over the last 30 days, indicating a significant reassessment by analysts [4] Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model indicates that the Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11] - The current Zacks Rank for AlTi Global, Inc. is 3 (Hold), making it challenging to predict an earnings beat [11] Historical Performance - In the last reported quarter, AlTi Global, Inc. was expected to post earnings of $0.02 per share but instead reported a loss of $0.24, resulting in a surprise of -1,300% [12] - Over the past four quarters, the company has beaten consensus EPS estimates two times [13] Market Sentiment - The stock may experience upward movement if the actual results exceed expectations, while a miss could lead to a decline [2] - Despite the potential for an earnings beat, other factors may influence stock performance, as many stocks can decline even after an earnings beat due to investor disappointment [14][16]

Assets Under Management and Administration - As of December 31, 2024, AlTi manages or advises approximately $75.7 billion in combined assets, with $67.3 billion in Assets Under Administration (AUA) for the Wealth & Capital Solutions segment, up from $58.7 billion in 2023[34]. - The Alternatives Platform includes an internally managed fund with $1.7 billion in AUM and stakes in three externally managed funds totaling approximately $5.1 billion in AUM as of December 31, 2024[41]. - The International Real Estate segment has AUM/AUA of $8.4 billion as of December 31, 2024[50]. - As of December 31, 2024, the company has approximately $4.9 billion in AUM/AUA dedicated to impact investing within its wealth management business[76]. - The TIG Arbitrage strategy has grown from $6 million in AUM in 1993 to $1.7 billion as of December 31, 2024[81]. - The Hong Kong wealth management business represents $1.0 billion in AUM as of December 31, 2024, accounting for approximately 1.3% of total AUM and less than 2.7% of revenue for the year ended December 31, 2024[204]. Revenue Streams and Financial Performance - AlTi's revenue streams include recurring management fees, performance fees, distributions from investments, and other income, with management fees being more predictable across market conditions[58]. - For the year ended December 31, 2024, 96% of the company's revenue is generated from stable management or advisory fees, with a client retention rate of 96% since 2020[89]. - Wealth & Capital Solutions segment generates revenue primarily from management fees, calculated as 0.75% to 1.5% of net asset value of underlying investments[60]. - The company's revenue is primarily derived from fees correlated to the amount of Assets Under Management (AUM) and Assets Under Advisement (AUA), with poor investment performance potentially leading to a material adverse impact on financial results[147]. - A significant portion of the company's revenue comes from investment advisory services, which may be adversely affected if contracts are terminated or not renewed, potentially leading to a decline in AUM, revenue, and earnings[173]. Strategic Partnerships and Growth Initiatives - In 2024, AlTi welcomed Allianz and Constellation as strategic partners to enhance its investment management capabilities[36]. - The company aims to enhance organic growth through acquisitions and integrations in both existing and new markets[31]. - The company has established strategic partnerships with Allianz and Constellation, involving a combined investment of up to $450 million[84]. - The company has identified a pipeline of potential acquisitions across its wealth management business, leveraging its track record of executing strategic transactions[93]. - The company plans to expand its client base by enhancing service offerings and leveraging its 20+ years of experience across various market cycles[97]. - The company aims to deepen its reach in current markets and expand into new markets in the U.S., Europe, and Asia, focusing on areas with significant market size and low regulatory barriers[95]. - The company expects to continue evaluating and executing selective acquisitions to enhance its global footprint and product offerings[96]. - The company has made several acquisitions, including a New York-based advisory firm with approximately $6 billion AUM in 2024 and a Minneapolis-based wealth manager with around $3 billion AUM[101]. Market Conditions and Economic Factors - The target market for the company's services represents a $102 trillion addressable market, expected to grow at a 7% CAGR by 2028[88]. - The global demand for alternative investments is expected to reach $30 trillion by 2030, growing at a CAGR of 10% since 2017[88]. - Inflation remains elevated and could negatively impact the company's investment products and services, particularly in terms of labor, energy, and raw material costs[131]. - Higher interest rates could materially affect the company's business and the financial condition of its portfolio companies, making it difficult to obtain financing at attractive rates[133]. - Economic downturns could lead to decreased revenues and financial losses for the company's portfolio companies, adversely affecting net asset values[130]. Regulatory and Compliance Risks - The company operates in a highly regulated environment, and failure to comply with regulations could negatively impact its business[128]. - The company is subject to extensive and evolving laws, rules, and regulations, which may impose additional expenses or capital requirements, adversely affecting business operations and financial condition[213]. - The SEC has heightened its focus on the private equity industry's fees and allocation of expenses, which could subject the company's valuation policies to increased scrutiny[216]. - The company may incur significant expenses to comply with regulatory reforms, which could adversely impact clients' investment strategies and the overall business model[214]. - The complexity of regulatory compliance may increase costs and operational challenges for the company in both the UK and EU markets[224]. Operational Challenges and Risks - The company has identified material weaknesses in its internal control over financial reporting, which could harm its operating results[128]. - The company may face challenges in attracting and retaining key personnel, which is critical for future growth[128]. - The anticipated benefits of future acquisitions may not be fully realized or may take longer than expected, impacting financial performance[178]. - Integration challenges from acquisitions may lead to increased costs and operational difficulties, affecting financial position and results[179]. - The company faces increased regulatory scrutiny regarding cost allocations, which could negatively impact net income and stock value[183]. Investment Risks - The success of the business is dependent on the identification and availability of suitable investment opportunities, which are subject to market conditions beyond the company's control[148]. - Historical returns of investment products should not be considered indicative of future results, as future returns may vary significantly from past performance[149]. - The valuation of certain assets in investment products can be subjective, with potential fluctuations in net asset value due to market conditions[152]. - The company faces risks related to leverage, as reliance on credit facilities can lead to volatility and affect the ability to achieve attractive rates of return[157]. - Defaults by third-party investors could adversely affect fund operations and performance, potentially leading to losses and reduced carried interest[161].

Financial Data and Key Metrics Changes - AlTi Global, Inc. generated $207 million in revenues for 2024, with a significant increase in recurring management fees to 96% from 77% in 2023 [10][38] - Consolidated adjusted EBITDA was $17 million for the year, while the core wealth management and capital solutions segment delivered adjusted EBITDA of $37 million with a 19% margin [11][40] - Consolidated operating expenses decreased by $54 million to $292 million compared to 2023, primarily due to reductions in compensation expenses and professional fees [41][42] Business Line Data and Key Metrics Changes - In the core wealth and capital solutions segment, revenues were $198 million for the year and $51 million in Q4, with management fees growing 13% in Q4 [39] - Assets under management and advisement grew 15% year over year, driven by the inclusion of East End and Envoy, along with solid portfolio performance [10][39] Market Data and Key Metrics Changes - The ultrahigh net worth segment is identified as the fastest-growing market in wealth management, with a $102 trillion addressable market growing at 7% compounding [17] - The company has made significant strides in expanding its international presence, particularly in Germany, which is the third-largest ultrahigh net worth market in the world [23][25] Company Strategy and Development Direction - The company aims to become the world's leading independent ultrahigh net worth wealth management firm, focusing on alternatives and impacts [6] - Strategic partnerships, such as with AllianzX and Constellation Wealth Capital, are pivotal for growth and expanding service offerings [12][14] - The company is actively pursuing strategic acquisitions and divestitures to sharpen its focus on core recurring revenue businesses [28][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its strategy and drive profitable growth, particularly through cost optimization initiatives [36][47] - The company is at a critical inflection point, poised for significant profitable growth and value creation in 2025 and beyond [7][8] Other Important Information - The company has implemented zero-based budgeting (ZBB) to streamline costs and maximize resource efficiency [33][43] - The company has no bank debt on its balance sheet as of year-end, providing flexibility for future growth initiatives [45] Q&A Session Summary Question: Could you talk a little bit more about the acquisition in Germany and why it makes strategic sense? - Management highlighted Germany as a strategic market due to its size and the fit of Contura as a premier independent operator [52] Question: Following the deal in Germany, can you talk about where you are on deploying capital? - Management indicated they have $65 million available for acquisitions and an active pipeline for organic growth [55] Question: Is there anything else that we should expect from the strategic review on real estate? - Management confirmed that the review was complete and the divestment process is in the final stages [57][59] Question: Could you talk a little about the normalized operating expenses? - Management stated that expenses are expected to be lower going forward due to the comprehensive review of all expenses under the ZBB methodology [62][64] Question: What are you seeing on the M&A, arbitrage, pipeline? - Management noted that the regulatory environment for M&A has improved, leading to a constructive outlook for increased M&A activity [67]

Core Viewpoint - AlTi Global, Inc. reported a quarterly loss of $0.24 per share, significantly missing the Zacks Consensus Estimate of $0.02, marking a 1,300% earnings surprise [1]. Financial Performance - The company posted revenues of $53.33 million for the quarter ended December 2024, which was 28.52% below the Zacks Consensus Estimate and a decline from $91.71 million in the same quarter last year [2]. - Over the last four quarters, AlTi Global has surpassed consensus EPS estimates only two times [2]. - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $56 million, and for the current fiscal year, it is $0.43 on revenues of $255.2 million [7]. Stock Performance - AlTi Global shares have declined approximately 29.5% since the beginning of the year, compared to a 4.8% decline in the S&P 500 [3]. - The stock currently holds a Zacks Rank of 3 (Hold), indicating it is expected to perform in line with the market in the near future [6]. Industry Outlook - The Financial - Miscellaneous Services industry, to which AlTi Global belongs, is currently ranked in the top 15% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]. Future Considerations - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4].