AlTi (US:ALTI)2025-11-13 00:12Financial Performance - Total revenue for Q3 2025 was $57.238 million, an increase of 10.4% compared to $51.809 million in Q3 2024[20] - Management/advisory fees rose to $51.680 million in Q3 2025, up from $48.101 million in Q3 2024, reflecting a growth of 5.3%[20] - The net loss attributable to AlTi Global, Inc. for Q3 2025 was $84.135 million, compared to a loss of $72.542 million in Q3 2024[23] - Basic net loss per share from continuing operations was $(0.69) for Q3 2025, compared to $(0.13) for Q3 2024[23] - The net loss for the period ending September 30, 2025, was $106,954,000, compared to a net loss of $139,879,000 for the previous period, indicating an improvement of about 23.5%[28] - For the nine months ended September 30, 2025, AlTi Global reported a net loss from continuing operations of $109,033 thousand, compared to a net loss of $37,929 thousand for the same period in 2024, representing an increase in loss of 187%[35] - The net loss for the nine months ended September 30, 2025, was $106.8 million, compared to a net loss of $43.1 million for the same period in 2024[213] Operating Expenses and Impairments - Total operating expenses increased to $85.735 million in Q3 2025, compared to $61.322 million in Q3 2024, representing a rise of 39.8%[20] - The company reported an impairment loss on goodwill and intangible assets of $35 million in Q3 2025[21] - The company experienced a significant impairment loss on goodwill and intangible assets amounting to $35,000 thousand, down from $74,267 thousand in the previous year, indicating a 53% reduction[35] Assets and Liabilities - Total assets decreased to $1.154 billion as of September 30, 2025, down from $1.256 billion as of December 31, 2024[18] - Cash and cash equivalents decreased to $35.847 million as of September 30, 2025, from $64.417 million as of December 31, 2024[18] - The company’s total liabilities decreased to $270.590 million as of September 30, 2025, from $285.638 million as of December 31, 2024[18] - The total shareholders' equity decreased to $883.834 million as of September 30, 2025, down from $970.195 million as of December 31, 2024[18] - As of September 30, 2025, total shareholders' equity amounted to $883,834,000, a decrease from $990,187,000 at June 30, 2025, reflecting a decline of approximately 10.7%[27] Cash Flow and Investments - Cash flows from operating activities from continuing operations resulted in a net cash outflow of $53,528 thousand, compared to an outflow of $16,448 thousand in the prior year, reflecting a 226% increase in cash used[35] - The company reported net cash provided by investing activities from continuing operations of $13,221 thousand, a significant recovery from a net cash outflow of $85,888 thousand in the same period last year[37] - The cash and cash equivalents at the end of the period were $35,847 thousand, down from $220,592 thousand a year earlier, indicating a decrease of 84%[37] Shareholder Equity and Stock - Preferred share dividends accrued during the period totaled $6,124,000, with a preferred stock tranche issuance of $18,471,000[28] - The issuance of shares for business combination resulted in a reduction of $24,396,000 in Class A Common Stock[27] - The company’s total shares outstanding for Class A Common Stock increased to 102,464,812 as of September 30, 2025, from 101,567,545 at June 30, 2025[27] - Class A Common Stock increased from 93,686,980 shares as of December 31, 2024, to 102,464,812 shares as of September 30, 2025, a growth of 9.2%[54] Acquisitions and Disposals - The Company disposed of its International Real Estate segment during the third quarter ended September 30, 2025, reorganizing into one operating segment[55] - The Company recognized a loss of $19.6 million upon the disposal of its International Real Estate Businesses, classified as discontinued operations[157] - The total purchase consideration for the Kontora Acquisition was $15.7 million, which included contingent consideration of $5.7 million tied to future revenue streams[202] Revenue Recognition and Fees - The Company’s revenue streams include management fees, performance fees, distributions from investments, and other income[56] - The company recognizes revenue from investment management, trustee, and custody fees at the time of transfer of promised goods or services to customers[86] - Investment management fees are recognized over the period services are performed, with revenue varying based on assets under administration (AUA) changes[87] - The company charges investment management fees based on the fair value of assets under management (AUM), with fixed fees applied in certain circumstances[89] Global Operations and Market Position - AlTi Global's total assets under management reached approximately $89.2 billion as of September 30, 2025, maintaining a strong position in the wealth management sector[40] - As of September 30, 2025, AlTi Global had approximately 490 professionals operating in 19 cities across 9 countries, highlighting its extensive global reach[40] - The Company has strategic investments with External Strategic Managers managing approximately $5.4 billion of AUM as of September 30, 2025[69]