DALLAS, Oct. 21, 2025 (GLOBE NEWSWIRE) -- Beneficient $(BENF)$ ("Ben" or the "Company"), a technology-enabled platform providing exit opportunities and primary capital solutions and related trust and custody services to holders of alternative assets through its proprietary online platform, AltAccess, today reported its financial results for the fiscal 2026 first quarter, which ended June 30, 2025.
Commenting on the fiscal 2026 first quarter results, interim Chief Executive Officer James Silk said: "This quarter reflects meaningful progress strengthening Beneficient's financial and operational foundation. We've taken deliberate steps to reduce expenses, complete new primary capital transactions and generate additional liquidity through asset sales as well as bringing the Company current on its SEC filings. These achievements demonstrate our renewed focus on disciplined execution as we work to provide value for our shareholders and seek to position the Company for long-term success."
First Quarter Fiscal 2026 and Recent Highlights (for the quarter ended June 30, 2025 or as noted):
-- Reported investments with a fair value of $263.8 million, decreased from
$291.4 million at the end of our prior fiscal year, which served as
collateral for Ben Liquidity's net loan portfolio of $230.7 million and
$244.1 million, respectively. Reported investments for June 30, 2025
includes three additional primary capital transactions, previously
disclosed, with an initial aggregate value $11.8 million.
-- Operating expenses were $80.0 million in the first quarter of fiscal
2026, which included a recognized loss contingency accrual of $62.8
million, as compared to $(34.3) million in the first quarter of fiscal
2025, which included the release of a loss contingency accrual of $(55.0)
million and a non-cash goodwill impairment of $3.4 million.
-- Excluding the non-cash goodwill impairment and the loss contingency
accrual (release) in each period, as applicable, operating expenses
declined 1% to $17.2 million in the first quarter of fiscal 2026 as
compared to $17.3 million in the same period of fiscal 2025.
-- Entered into three primary capital transactions with funds managed by
general partners during the fiscal 2026 first quarter. As a result of the
transactions, the collateral for the Company's ExAlt loan portfolio is
expected to increase by more than $11.7 million of interests in
alternative assets.
-- Completed the asset sales of certain investments held by the Customer
ExAlt Trusts, which has resulted in an aggregate of $38.1 million in
gross proceeds, which has been used to pay down certain debt and provide
working capital.
-- With the filing of the Quarterly Report on Form 10-Q for June 30, 2025,
the Company will be current on its periodic reporting, demonstrating
compliance with Nasdaq's reporting requirement within the extension
period granted by the Nasdaq Hearings Panel.
-- On October 15, 2025, as part of the Company's plans to regain compliance
with Nasdaq's continued listing requirements, Beneficient Board Chairman
Thomas Hicks and interim CEO James Silk elected to convert an aggregate
of $52.6 million of personally held BCH Preferred Series A-1 holdings
into shares of the Company's Class A common stock. Additional details of
the transaction are noted in the Company's Quarterly Report on Form 10-Q
for June 30, 2025.
Loan Portfolio
As a result of executing on our business plan of providing financing for liquidity, or early investment exits, for alternative asset marketplace participants, Ben organically develops a balance sheet comprised largely of loans collateralized by a well- diversified alternative asset portfolio that is expected to grow as Ben successfully executes on its core business.
Ben's balance sheet strategy for ExAlt Loan origination is built on the theory of the portfolio endowment model for the fiduciary financings we make by utilizing our patent-pending computer implemented technologies branded as OptimumAlt. Our OptimumAlt endowment model balance sheet approach guides diversification of our fiduciary financings across seven asset classes of alternative assets, over 11 industry sectors in which alternative asset managers invest, and at least six countrywide exposures and multiple vintages of dates of investment into the private funds and companies.
As of June 30, 2025, Ben's loan portfolio was supported by a highly diversified alternative asset collateral portfolio providing diversification across approximately 200 private market funds and approximately 590 investments across various asset classes, industry sectors and geographies. This portfolio includes exposure to some of the most exciting, sought after private company names worldwide, such as the largest private space exploration company, an innovative software and payment systems provider, a venture capital firm investing in waste-to-energy and clean energy technologies, a technology company providing net zero solutions in the production of advanced biofuels, a designer and manufacturer of shaving products, a large online store for women's clothes and other fashionable accessories that has announced intentions to go public, a mobile banking services provider, and others.
Figure 1: Portfolio Diversification
Diversification Using Principal Loan Balance, Net of Allowance for Credit Losses
As of June 30, 2025, the charts below present the ExAlt Loan portfolio's relative exposure by certain characteristics (percentages determined by aggregate fiduciary ExAlt Loan portfolio principal balance net of allowance for credit losses, which includes the exposure to interests in certain of our former affiliates composing part of the Fiduciary Loan Portfolio).
As of June 30, 2025. The chart represents the characteristics of professionally managed funds and investments in the Collateral portfolio, which is comprised of a diverse portfolio of direct and indirect interests (through various investment vehicles, including, limited partnership interests and private and public equity and debt securities, which include our and our affiliates' or our former affiliates' securities), primarily in third-party, professionally managed private funds and investments. Loan balances used to calculate the percentages reported in the pie charts are loan balances, net of any allowance for credit losses, and as of June 30, 2025, the total allowance for credit losses was $352.7 million, for a total gross loan balance of $583.4 million and a loan balance net of allowance for credit losses of $230.7 million.
Business Segments: First Quarter Fiscal 2026
Ben Liquidity
Ben Liquidity offers simple, rapid and cost-effective liquidity products through the use of our proprietary financing and trust structure, or the "Customer ExAlt Trusts," which facilitate the exchange of a customer's alternative assets for consideration.
-- Ben Liquidity recognized $8.8 million of interest income for the fiscal
first quarter, a decrease of 4.5% from the quarter ended March 31, 2025,
primarily due to a higher percentage loans being placed on nonaccrual
status, partially offset by the effects of compounding interest on the
remaining loans.
-- Operating loss for the fiscal first quarter was $6.0 million, an
improvement from an operating loss of $12.3 million for the quarter ended
March 31, 2025. The increase in operating performance was due to lower
intersegment credit losses in the current fiscal period as compared to
the quarter ended March 31, 2025 due in part because of the disposition
of certain investments during the period, which generated loan payments
at Ben Liquidity sooner than had been estimated in the prior period
calculation of the intersegment credit losses.
Ben Custody
Ben Custody provides full-service trust and custody administration services to the trustees of certain of the Customer ExAlt Trusts, which own the exchanged alternative assets following liquidity transactions in exchange for fees payable quarterly calculated as a percentage of assets in custody.
-- NAV of alternative assets and other securities held in custody by Ben
Custody during the fiscal first quarter was $298.1 million as of June 30,
2025, compared to $338.2 million as of March 31, 2025. The decrease was
driven by dispositions of certain alternative assets, distributions and
unrealized losses on existing assets, principally related to adjustments
to the relative share held in custody of the respective fund's NAV based
on updated financial information received from the funds' investment
manager or sponsor during the period or the fair value for investments
deemed probable to be sold at an amount that differs from NAV, offset by
$11.8 million of new originations.
-- Revenues applicable to Ben Custody were $4.2 million for the fiscal first
quarter, compared to $5.4 million for the quarter ended March 31, 2025.
The decrease was a result of lower NAV of alternative assets and other
securities held in custody at the beginning of the period when such fees
are calculated.
-- Operating income for the fiscal first quarter decreased to $3.1 million
from $4.2 million for the quarter ended March 31, 2025. The decrease was
primarily due to the decline in revenues applicable to this operating
segment as described above and employee and professional services expense,
offset by $0.5 million of intersegment credit losses on collateral
comprised of interests in the GWG Wind Down Trust.
-- Adjusted operating income(1) for the fiscal first quarter was $3.1
million, compared to adjusted operating income(1) of $4.6 million for the
quarter ended March 31, 2025. The decrease was due to the decline in
revenues applicable to this operating segment as described above and
removal, for purposes of calculating adjusted operating income(1), of
$0.5 million of intersegment credit losses on collateral comprised of
interests in the GWG Wind Down Trust.
Capital and Liquidity
-- As of June 30, 2025, the Company had cash and cash equivalents of $7.6
million and total debt of $108.4 million.
-- Distributions received from alternative assets and other securities held
in custody totaled $3.7 million for the three months ended June 30, 2025,
compared to $7.2 million for the same period of fiscal 2025. Additionally,
during three months ended June 30, 2025, we received proceeds of $24.1
million from the disposition of certain investments in alternative
assets.
-- Total investments (at fair value) of $263.8 million at June 30, 2025
supported Ben Liquidity's loan portfolio.
(1) (Represents a non-GAAP financial measure. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations.)
Consolidated Fiscal First Quarter Results
Table 1 below presents a summary of selected unaudited consolidated operating financial information.
Consolidated FiscalFirstQuarter Results ($ in thousands, except Fiscal1Q26 Fiscal4Q25 Fiscal1Q25 share and per share June 30, March 31, June 30, Change % vs. amounts) 2025 2025 2024 Prior Quarter GAAP Revenues $ (12,623) $ (30,969) $ 10,046 59.2% Adjusted Revenues(1) (12,622) (30,963) 10,411 59.2% GAAP Operating Income (Loss) (92,648) (45,295) 44,338 NM Adjusted Operating Income (Loss)(1) (25,438) (42,945) (4,725) 40.8% Basic Class A EPS $ (7.19) $ 12.11 NM Diluted Class A EPS $ (7.19) $ 0.17 NM Segment Revenues attributable to Ben's Equity Holders(2) 13,058 14,253 16,235 (8.4)% Adjusted Segment Revenues attributable to Ben's Equity Holders(1)(2) 13,058 14,253 16,242 (8.4)% Segment Operating Income (Loss) attributable to Ben's Equity Holders (76,436) (16,662) 44,864 NM Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders(1)(2) $ (9,227) $ (13,851) $ (4,552) 33.4% (NM - Not meaningful.) (1) Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders and Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders are non-GAAP financial measures. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations. (2) Segment financial information attributable to Ben's equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), and adjusted operating income (loss)) that impacts Ben's Equity Holders. "Ben's Equity Holders" refers to the holders of Beneficient Class A and Class B common stock and Series B Preferred Stock as well as holders of interests in BCH, which represent noncontrolling interests. For a description of noncontrolling interests, see Item 2 of our Quarterly Report on Form 10-Q for the three months ended June 30, 2025, and Reconciliation of Business Segment Information Attributable to Ben's Equity Holders to Net Income Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determine the net income (loss) attributable to Ben's Equity Holders. See further information in table 5 and Non-GAAP Reconciliations.
Table 2 below presents a summary of selected unaudited consolidated balance sheet information.
Consolidated Fiscal1Q26 Fiscal4Q25
FiscalFirstQuarter Results As of As of Change
($ in thousands) June 30, 2025 March 31, 2025 %
Investments, at Fair
Value $ 263,769 $ 291,371 (9.5)%
All Other Assets 57,723 50,490 14.3%
Goodwill and Intangible
Assets, Net 13,014 13,014 --%
------------ -------------
Total Assets $ 334,506 $ 354,875 (5.7)%
============ =============
Business Segment Information Attributable to Ben's Equity Holders(1)
Table 3 below presents unaudited segment revenues and segment operating income (loss) for business segments attributable to Ben's equity holders.
Segment Revenues
Attributable to
Ben's Equity Fiscal4Q25
Holders(1) ($ in Fiscal1Q26 March 31, Fiscal1Q25 Change % vs.
thousands) June 30, 2025 2025 June 30, 2024 Prior Quarter
--------------
Ben Liquidity $ 8,837 $ 8,459 $ 10,849 4.5%
Ben Custody 4,183 5,396 5,382 (22.5)%
Corporate &
Other 38 398 4 (90.5)%
---------- ----------- ----------
Total Segment
Revenues
Attributable
to Ben's
Equity
Holders(1) $ 13,058 $ 14,253 $ 16,235 (8.4)%
========== =========== ==========
Segment Operating
Income (Loss)
Attributable to Ben's Fiscal1Q26 Fiscal4Q25 Fiscal1Q25
Equity Holders(1) ($ June 30, March 31, June 30, Change % vs.
in thousands) 2025 2025 2024 Prior Quarter
Ben Liquidity $ (6,015) $ (12,340) $ (514) 51.3%
Ben Custody 3,128 4,165 1,287 (24.9)%
Total Segment
Operating Income
(Loss)
Attributable to
Ben's Equity
Holders(1) (73,549) (8,487) 44,091 NM
$ (76,436) $ (16,662) $ 44,864 NM
========== ========== ==========
(NM - Not meaningful.)
(1) Segment financial information attributable to
Ben's equity holders is presented to provide users
of our financial information an understanding and
visual aide of the segment information (revenues,
operating income (loss), and adjusted operating income
(loss)) that impacts Ben's Equity Holders. "Ben's
Equity Holders" refers to the holders of Beneficient
Class A and Class B common stock and Series B Preferred
Stock as well as holders of interests in BCH, which
represent noncontrolling interests. For a description
of noncontrolling interests, see Item 2 of our Quarterly
Report on Form 10-Q for the three months ended June
30, 2025, and Reconciliation of Business Segment Information
Attributable to Ben's Equity Holders to Net Income
Attributable to Ben Common Holders. Such information
is computed as the sum of the Ben Liquidity, Ben Custody
and Corp/Other segments since it is the operating
results of those segments that determine the net income
(loss) attributable to Ben's Equity Holders. See further
information in table 5 and Non-GAAP Reconciliations.
Adjusted Business Segment Information Attributable to Ben's Equity Holders(2)
Table 4 below presents unaudited adjusted segment revenue and adjusted segment operating income (loss) for business segments attributable to Ben's equity holders.
Adjusted Segment
Revenues
Attributable to
Ben's Equity Fiscal1Q26 Fiscal4Q25 Fiscal1Q25
Holders(1)(2) ($ in June 30, March 31, June 30, Change % vs.
thousands) 2025 2025 2024 Prior Quarter
----------- ----------- ----------- --------------
Ben Liquidity $ 8,837 $ 8,459 $ 10,849 4.5%
Ben Custody 4,183 5,396 5,382 (22.5)%
Corporate & Other 38 398 11 (90.5)%
Total Adjusted
Segment
Revenues
Attributable
to Ben's
Equity
Holders(1)(2) $ 13,058 $ 14,253 $ 16,242 (8.4)%
========== ========== ==========
Adjusted Segment
Operating Income
(Loss) Attributable to
Ben's Equity Fiscal1Q26 Fiscal4Q25 Fiscal1Q25
Holders(1)(2) ($ in June 30, March 31, June 30, Change % vs.
thousands) 2025 2025 2024 Prior Quarter
Ben Liquidity $ (6,015) $ (12,340) $ (509) 51.3%
Ben Custody 3,128 4,632 4,416 (32.5)%
Corporate & Other (6,340) (6,143) (8,459) (3.2)%
Total Adjusted
Segment
Operating Income
(Loss)
Attributable to
Ben's Equity
Holders(1)(2) $ (9,227) $ (13,851) $ (4,552) 33.4%
======== ======== === =======
(NM - Not meaningful.)
(1) Adjusted Revenues, Adjusted Operating Income (Loss),
Adjusted Segment Revenues attributable to Ben's Equity
Holders and Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders are non-GAAP financial measures. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations. (2) Segment financial information attributable to Ben's equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), and adjusted operating income (loss)) that impacts Ben's Equity Holders. "Ben's Equity Holders" refers to the holders of Beneficient Class A and Class B common stock and Series B Preferred Stock as well as holders of interests in BCH, which represent noncontrolling interests. For a description of noncontrolling interests, see Item 2 of our Quarterly Report on Form 10-Q for the three months ended June 30, 2025, and Reconciliation of Business Segment Information Attributable to Ben's Equity Holders to Net Income Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determine the net income (loss) attributable to Ben's Equity Holders. See further information in table 5 and Non-GAAP Reconciliations.
Reconciliation of Business Segment Information Attributable to Ben's Equity Holders to Net Income (Loss) Attributable to Ben Common Shareholders
Table 5 below presents reconciliation of operating income (loss) by business segment attributable to Ben's Equity Holders to net income (loss) attributable to Ben common shareholders.
Reconciliation of
Business Segments
to Net Income
(Loss) to Ben
Common
Shareholders ($ Fiscal1Q26 Fiscal4Q25 Fiscal1Q25
in thousands) June 30, 2025 March 31, 2025 June 30, 2024
---------------- ----------------- ------------------
Ben Liquidity $ (6,015) $ (12,340) $ (514)
Ben Custody 3,128 4,165 1,287
Corporate &
Other (73,549) (8,487) 44,091
Income tax
expense
(allocable to
Ben and BCH
equity holders) -- 661 (28)
Net loss
attributable to
noncontrolling
interests - Ben 15,984 19,777 7,187
Noncontrolling
interest
guaranteed
payment (4,624) (4,556) (4,356)
------------ ------------- ------------
Net income (loss)
attributable to
Ben's common
shareholders $ (65,076) $ (780) $ 47,667
============ ============= ============
Investor Webcast
Beneficient expects to host a webcast and conference call to provide investors with an update on the Company's performance, strategy and transactions in the coming weeks. A press release and 8-K will provide details when available.
About Beneficent
Beneficient (Nasdaq: BENF) -- Ben, for short -- is on a mission to democratize the global alternative asset investment market by providing traditionally underserved investors - mid-to-high net worth individuals, small-to-midsized institutions and General Partners seeking exit options, anchor commitments and valued-added services for their funds- with solutions that could help them unlock the value in their alternative assets. Ben's AltQuote$(TM)$ tool provides customers with a range of potential exit options within minutes, while customers can log on to the AltAccess$(R)$ portal to explore opportunities and receive proposals in a secure online environment.
Its subsidiary, Beneficient Fiduciary Financial, L.L.C., received its charter under the State of Kansas' Technology-Enabled Fiduciary Financial Institution (TEFFI) Act and is subject to regulatory oversight by the Office of the State Bank Commissioner.
For more information, visit www.trustben.com or follow us on LinkedIn.
Contacts
Investors:
Matt Kreps/214-597-8200/mkreps@darrowir.com
Michael Wetherington/214-284-1199/mwetherington@darrowir.com
investors@beneficient.com
Not an Offer of Securities
The information in this communication is for informational purposes only and shall not constitute, or form a part of, an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities. The securities that are the subject of the Transactions have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Disclaimer and Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to, among other things, demand for our solutions in the alternative asset industry, opportunities for market growth, our ability to identify and negotiate transactions, diversification and size of our loan portfolio and our ability to scale operations and provide shareholder value. These forward-looking statements are generally identified by the use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend, " "may," "plan," "potential," "predict," "project," "should," "target," "will," "would," and, in each case, their negative or other various or comparable terminology. These forward-looking statements reflect our views with respect to future events as of the date of this document and are based on our management's current expectations, estimates, forecasts, projections, assumptions, beliefs and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to, our ability to consummate liquidity transactions on terms desirable for the Company, or at all, our ability to timely demonstrate compliance with the Nasdaq bid price requirements within the extension period granted by the Nasdaq Hearings Panel, our ability to regain compliance with the Nasdaq stockholders' equity requirement, our ability to cure any deficiencies in compliance with any other Nasdaq Listing Rules, our ability to obtain stockholder approval for a reverse stock split of the common stock, risks related to the substantial costs and diversion of management's attention and resources due to these matters, and the risk factors that are described under the section titled "Risk Factors" in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the SEC. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document and in our SEC filings. We expressly disclaim any obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.
Table 6: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
Three Months Ended
June 30,
(Dollars in thousands, except per share
amounts) 2025 2024
------- -------
Revenues
Investment income (loss), net $(12,776) $ 11,028
Gain (loss) on financial instruments, net
(related party of $(1) and $(365)) (45) (1,183)
Interest and dividend income 10 12
Trust services and administration revenues
(related party of $8 and $8) 188 189
Total revenues (12,623) 10,046
Operating expenses
Employee compensation and benefits 3,331 3,850
Interest expense (related party of $3,317
and $3,054) 3,415 4,288
Professional services 7,957 5,544
Provision for credit losses -- 524
Loss on impairment of goodwill -- 3,394
Accrual (release) of loss contingency
related to arbitration award 62,831 (54,973)
Other expenses (related party of $628 and
$694) 2,491 3,081
------- -------
Total operating expenses 80,025 (34,292)
Net income (loss) before income taxes (92,648) 44,338
Income tax expense -- 28
------- -------
Net income (loss) (92,648) 44,310
------- -------
Plus: Net loss attributable to
noncontrolling interests - Customer ExAlt
Trusts 16,212 526
Plus: Net loss attributable to
noncontrolling interests - Ben 15,984 7,187
Less: Noncontrolling interest guaranteed
payment (4,624) (4,356)
------- -------
Net income (loss) attributable to Beneficient
common shareholders $(65,076) $ 47,667
======= =======
Other comprehensive income (loss):
Unrealized (loss) gain on investments in
available-for-sale debt securities -- (21)
------- -------
Total comprehensive income (loss) (65,076) 47,646
------- -------
Less: comprehensive (loss) gain attributable
to noncontrolling interests -- (21)
------- -------
Total comprehensive income (loss) attributable
to Beneficient $(65,076) $ 47,667
======= =======
Net income (loss) per common share
Class A - basic $ (7.19) $ 12.11
Class B - basic $ (7.19) $ 12.11
Net income (loss) per common share
Class A - diluted $ (7.19) $ 0.17
Class B - diluted $ (7.19) $ 0.17
Table 7: CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
June 30, 2025 March 31, 2025
--------------- ------------------
(Dollars and shares in thousands) (unaudited)
ASSETS
Cash and cash equivalents $ 7,612 $ 1,346
Investments, at fair value:
Investments held by Customer
ExAlt Trusts (related party of
$4 and $5) 263,769 291,371
Other assets, net 50,111 49,144
Intangible assets 3,100 3,100
Goodwill 9,914 9,914
---------- -----------
Total assets $ 334,506 $ 354,875
========== ===========
LIABILITIES, TEMPORARY EQUITY, AND
EQUITY (DEFICIT)
Accounts payable and accrued
expenses (related party of $15,343
and $14,733) $ 228,884 $ 156,770
Other liabilities (related party of
$22,028 and $19,360) 26,903 24,381
Warrants liability 197 227
Debt due to related parties 108,393 117,896
---------- -----------
Total liabilities 364,377 299,274
Redeemable noncontrolling
interests
Preferred Series A Subclass 0
Redeemable Unit Accounts,
nonunitized 90,526 90,526
Total temporary equity 90,526 90,526
---------- -----------
Shareholder's equity (deficit):
Preferred stock, par value $0.001
per share, 250,000 shares
authorized
Series A preferred stock, 0 and 0
shares issued and outstanding as
of June 30, 2025 and March 31,
2025, respectively -- --
Series B preferred stock, 1,543
and 363 shares issued and
outstanding as of June 30, 2025
and March 31, 2025, respectively 2 --
Class A common stock, par value
$0.001 per share, 5,000,000 and
5,000,000 shares authorized as
of June 30, 2025 and March 31,
2025, respectively, 9,425 and
8,483 shares issued as of June
30, 2025 and March 31, 2025,
respectively, and 9,416 and
8,474 shares outstanding as of
June 30, 2025 and March 31,
2025, respectively 9 8
Class B convertible common stock,
par value $0.001 per share, 250
shares authorized, 239 and 239
shares issued and outstanding as
of June 30, 2025 and March 31,
2025 -- --
Additional paid-in capital 1,856,723 1,844,489
Accumulated deficit (2,073,128) (2,008,052)
Treasury stock, at cost (9 shares
as of June 30, 2025 and March
31, 2025) (3,444) (3,444)
Accumulated other comprehensive
income (2) (2)
Noncontrolling interests 99,443 132,076
---------- -----------
Total equity (deficit) (120,397) (34,925)
---------- -----------
Total liabilities, temporary equity,
and equity (deficit) $ 334,506 $ 354,875
========== ===========
Table 8: Non-GAAP Reconciliations
(in thousands) Three Months Ended June 30, 2025
Customer
Ben Ben ExAlt Consolidating
Liquidity Custody Trusts Corporate/Other Eliminations Consolidated
-------- --------- ------------------- ----------------- ----------------
Total revenues $ 8,837 $ 4,183 $(12,851) $ 38 $ (12,830) $ (12,623)
Mark to market
adjustment on
interests in
the GWG Wind
Down Trust -- -- 1 -- -- 1
Adjusted
revenues $ 8,837 $ 4,183 $(12,850) $ 38 $ (12,830) $ (12,622)
====== ======= ======= === ========= === ======== ========
Operating income
(loss) $ (6,015) $ 3,128 $(53,976) $ (73,549) $ 37,764 $ (92,648)
Mark to market
adjustment on
interests in
the GWG Wind
Down Trust -- -- 1 -- -- 1
Intersegment
provision for
credit losses
on collateral
comprised of
interests in
the GWG Wind
Down Trust -- -- -- -- -- --
Goodwill
impairment -- -- -- -- -- --
Accrual
(release) of
loss
contingency
related to
arbitration
award -- -- -- 62,831 -- 62,831
Share-based
compensation
expense -- -- -- 461 -- 461
Legal and
professional
fees(1) -- -- -- 3,917 -- 3,917
Adjusted
operating
income (loss) $ (6,015) $ 3,128 $(53,975) $ (6,340) $ 37,764 $ (25,438)
====== ======= ======= === ========= ======== === ========
(1) (Includes legal and professional fees related
lawsuits.)
(in thousands) Three Months Ended March 31, 2025
Customer
Ben Ben ExAlt Consolidating
Liquidity Custody Trusts Corporate/Other Eliminations Consolidated
-------- ------------ ------------------- ----------------- ----------------
Total revenues $ 8,459 $ 5,396 $(31,556) $ 398 $ (13,666) $ (30,969)
Mark to market
adjustment on
interests in
GWG Wind Down
Trust -- -- 6 -- -- 6
Adjusted
revenues $ 8,459 $ 5,396 $(31,550) $ 398 $ (13,666) $ (30,963)
======= ======= ======= === ======== ==== ======== ========
Operating
income (loss) $(12,340) $ 4,165 $(71,705) $ (8,487) $ 43,072 $ (45,295)
Mark to market
adjustment on
interests in
GWG Wind Down
Trust -- -- 6 -- -- 6
Intersegment
provision for
credit losses
on collateral
comprised of
interests in
the GWG Wind
Down Trust -- 467 -- -- (467) --
Goodwill
impairment -- -- -- -- -- --
Accrual
(release) of
loss
contingency
related to
arbitration
award -- -- -- -- -- --
Share-based
compensation
expense -- -- -- 487 -- 487
Legal and
professional
fees(1) -- -- -- 1,857 -- 1,857
Adjusted
operating
income (loss) $(12,340) $ 4,632 $(71,699) $ (6,143) $ 42,605 $ (42,945)
======= ======= ======= === ======== === ======== === ========
(1) (Includes legal and professional fees related
to lawsuits.)
(in thousands) Three Months Ended June 30, 2024
Customer
Ben Ben ExAlt Consolidating
Liquidity Custody Trusts Corporate/Other Eliminations Consolidated
-------- ------------ ------------------- ----------------- ----------------
Total revenues $ 10,849 $ 5,382 $ 9,853 $ 4 $ (16,042) $ 10,046
Mark to market
adjustment on
interests in
the GWG Wind
Down Trust -- -- 358 7 -- 365
Adjusted
revenues $ 10,849 $ 5,382 $ 10,211 $ 11 $ (16,042) $ 10,411
====== ======= ======= === ========= === ======== ========
Operating income
(loss) $ (514) $ 1,287 $(29,629) $ 44,091 $ 29,103 $ 44,338
Mark to market
adjustment on
interests in
the GWG Wind
Down Trust -- -- 358 7 -- 365
Intersegment
provision for
credit losses
on collateral
comprised of
interests in
the GWG Wind
Down Trust 5 -- -- -- (5) --
Goodwill
impairment -- 3,129 -- 265 -- 3,394
Accrual
(release) of
loss
contingency
related to
arbitration
award -- -- -- (54,973) -- (54,973)
Share-based
compensation
expense -- -- -- 994 -- 994
Legal and
professional
fees(1) -- -- -- 1,157 -- 1,157
Adjusted
operating
income (loss) $ (509) $ 4,416 $(29,271) $ (8,459) $ 29,098 $ (4,725)
====== ======= ======= === ========= ======== === ========
(1) (Includes legal and professional fees related
to GWG Holdings bankruptcy, lawsuits, public relations,
and employee matters.)
Three Months Ended
June 30,
2025 2024
------- -------
Operating Expenses Non GAAP Reconciliation
Operating expenses $ 80,025 $(34,292)
Plus (less): Accrual (release) of loss
contingency related to arbitration award (62,831) 54,973
Less: Goodwill impairment -- (3,394)
------- -------
Operating expenses, excluding goodwill
impairment and release of loss contingency
related to arbitration award $ 17,194 $ 17,287
======= =======
Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders and Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders are non-GAAP financial measures. We present these non-GAAP financial measures because we believe it helps investors understand underlying trends in our business and facilitates an understanding of our operating performance from period to period because it facilitates a comparison of our recurring core business operating results. The non-GAAP financial measures are intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with, U.S. GAAP. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of these non-GAAP financial measures may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate such items in the same way.
We define adjusted revenue as revenue adjusted to exclude the effect of mark-to-market adjustments on related party equity securities that were acquired both prior to and during the Collateral Swap, which on August 1, 2023, became interests in the GWG Wind Down Trust. Adjusted Segment Revenues attributable to Ben's Equity Holders is the same as "adjusted revenues" related to the aggregate of the Ben Liquidity, Ben Custody, and Corporate/Other Business Segments, which are the segments that impact the net income (loss) attributable to all equity holders of Beneficient, including equity holders of Beneficient's subsidiary, BCH.
Adjusted operating income (loss) represents GAAP operating income (loss), adjusted to exclude the effect of the adjustments to revenue as described above, credit losses on related party available-for-sale debt securities that were acquired in the Collateral Swap which on August 1, 2023, became interests in the GWG Wind Down Trust, and receivables from a related party that filed for bankruptcy and certain notes receivables originated during our formative transactions, non-cash asset impairment, share-based compensation expense, and legal, professional services, and public relations costs related to the GWG Holdings bankruptcy, lawsuits, and certain employee matters, including fees & loss contingency accruals (releases) incurred in arbitration with a former director. Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders is the same as "adjusted operating income (loss)" related to the aggregate of the Ben Liquidity, Ben Custody, and Corporate/Other Business Segments, which are the segments that impact the net income (loss) attributable to all equity holders of Beneficient, including equity holders of Beneficient's subsidiary, BCH.
These non-GAAP financial measures are not a measure of performance or liquidity calculated in accordance with U.S. GAAP. They are unaudited and should not be considered an alternative to, or more meaningful than, GAAP revenues or GAAP operating income (loss) as an indicator of our operating performance. Uses of cash flows that are not reflected in adjusted operating income (loss) or adjusted segment operating income (loss) attributable to Ben's Equity Holders include capital expenditures, interest payments, debt principal repayments, and other expenses, which can be significant. As a result, adjusted operating income (loss) and/or adjusted segment operating income (loss) attributable to Ben's Equity Holders should not be considered as a measure of our liquidity.
Because of these limitations, Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders, and Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders should not be considered in isolation or as a substitute for performance measures calculated in accordance with U.S. GAAP. We compensate for these limitations by relying primarily on our U.S. GAAP results and using Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders, and Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders on a supplemental basis. You should review the reconciliation of these non-GAAP financial measures set forth above and not rely on any single financial measure to evaluate our business.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/49a323c6-9246-4465-a3fc-7632bb7d178b
(END) Dow Jones Newswires
October 21, 2025 07:30 ET (11:30 GMT)