Investment Thesis
AlTi Global exhibits severe operational and financial health deterioration despite 28.5% revenue growth. Negative operating cash flow of -$50.1M against only $39.7M in cash reserves creates an unsustainable burn rate. The 0.01x current ratio signals imminent liquidity crisis, while negative operating margin of -14.6% and positive net income driven by non-operating gains indicate dependency on unsustainable income sources rather than core business profitability.
Strengths
- Revenue growth of 28.5% YoY demonstrates market demand
- Conservative capital structure with low debt (Debt/Equity 0.02x)
- Positive net income of $7.7M despite operational challenges
Risks
- Critical liquidity crisis: 0.01x current ratio indicates potential inability to meet short-term obligations
- Negative operating cash flow of -$50.1M annually with only $39.7M cash reserve (sub-annual runway)
- Operating loss of -$10.7M shows core business is fundamentally unprofitable
- Net income appears dependent on non-operating gains, not sustainable business generation
- Extremely low returns on equity (1.2%) and assets (0.7%) indicate capital inefficiency
Key Metrics to Watch
- Operating cash flow trend and cash burn rate sustainability
- Current ratio and overall liquidity position (critical near-term solvency indicator)
- Operating margin trajectory toward profitability
- Source composition of net income (core vs non-operating gains)
- Cash reserves relative to quarterly operating expenses
Financial Metrics
Revenue
73.1M
Net Income
7.7M
EPS (Diluted)
$-0.37
Free Cash Flow
-50.1M
Total Assets
1.1B
Cash
39.7M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-14.6%
Net Margin
10.5%
ROE
1.2%
ROA
0.7%
FCF Margin
-68.6%
Balance Sheet & Liquidity
Current Ratio
0.01x
Quick Ratio
0.01x
Debt/Equity
0.02x
Debt/Assets
22.5%
Interest Coverage
-2.20x
Long-term Debt
15.0M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-13T07:43:01.421327 |
Data as of: 2026-03-31 |
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