[Forward-looking statements](index=3&type=section&id=Forward-looking%20statements) The report contains forward-looking statements, which involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from projections - The report contains forward-looking statements, which involve known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from projections[7](index=7&type=chunk) - Key risk factors include adverse litigation outcomes, ability to identify suitable legal finance assets, cybersecurity breaches, inaccuracy of AI technologies used for predictions, changes in legal finance regulations, and lack of liquidity of legal finance assets[7](index=7&type=chunk) [Glossary](index=4&type=section&id=Glossary) This section defines key terms used throughout the Form 10-Q, including financial instruments, fund structures, and segment classifications - The glossary defines key terms used throughout the **Form 10-Q**, such as '**Burford-only**' (proprietary basis excluding third-party interests), '**Capital provision assets**' (financial instruments for legal finance), '**Deployment**' (financing provided for an asset), and '**Realization**' (when a legal finance asset is concluded)[10](index=10&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk)[26](index=26&type=chunk)[50](index=50&type=chunk) - It also clarifies terms related to fund structures like '**Consolidated funds**' (e.g., **BOF-C**, **Advantage Fund**) and '**Non-consolidated funds**' (e.g., **BOF**, **BAIF**, **BAIF II**), and segments like '**Principal Finance segment**' and '**Asset Management and Other Services segment**'[24](index=24&type=chunk)[42](index=42&type=chunk)[125](index=125&type=chunk) Part I. Financial information [Item 1. Financial statements](index=8&type=section&id=Item%201.%20Financial%20statements) This section presents Burford Capital Limited's unaudited condensed consolidated financial statements, including statements of operations, comprehensive income, financial condition, cash flows, and changes in equity for the three and six months ended June 30, 2025, and 2024. It also includes detailed notes on accounting policies, segment reporting, capital provision assets, debt, fair value measurements, and other financial disclosures [Condensed Consolidated Statements of Operations (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) This section presents the company's unaudited condensed consolidated statements of operations, detailing revenues, expenses, and net income Condensed Consolidated Statements of Operations (Unaudited) - Key Figures | Metric ($ in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------- | :------------------------------- | | Total revenues | 191,286 | 159,653 | 310,145 | 203,948 | | Total operating expenses | 49,065 | 38,151 | 90,166 | 68,289 | | Operating income/(loss) | 142,221 | 121,502 | 219,979 | 135,659 | | Income/(loss) before income taxes | 109,747 | 86,969 | 154,225 | 68,067 | | Net income/(loss) | 105,153 | 75,272 | 142,063 | 57,774 | | Net income/(loss) attributable to Burford Capital Limited shareholders | 88,296 | 53,746 | 119,225 | 23,809 | | Basic EPS | $0.40 | $0.25 | $0.54 | $0.11 | | Diluted EPS | $0.39 | $0.24 | $0.53 | $0.11 | [Condensed Consolidated Statements of Comprehensive Income/(Loss) (Unaudited)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%2F(Loss)%20(Unaudited)) This section presents the company's unaudited condensed consolidated statements of comprehensive income, including foreign currency translation adjustments Condensed Consolidated Statements of Comprehensive Income/(Loss) (Unaudited) | Metric ($ in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------- | :------------------------------- | | Net income/(loss) | $105,153 | $75,272 | $142,063 | $57,774 | | Foreign currency translation adjustment | (8,234) | (63) | (12,263) | 1,320 | | Comprehensive income/(loss) | 96,919 | 75,209 | 129,800 | 59,094 | | Comprehensive income/(loss) attributable to Burford Capital Limited shareholders | 80,062 | 53,683 | 106,962 | 25,129 | [Condensed Consolidated Statements of Financial Condition](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) This section presents the company's condensed consolidated statements of financial condition, detailing assets, liabilities, and shareholders' equity Condensed Consolidated Statements of Financial Condition - Key Figures | Metric ($ in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------------------------- | :-------------- | :---------------- | | Total assets | 6,326,839 | 6,175,025 | | Total liabilities | 3,098,431 | 2,918,190 | | Total shareholders' equity | 3,228,408 | 3,256,835 | | Capital provision assets | 5,544,683 | 5,243,917 | | Cash and cash equivalents | 372,248 | 469,930 | | Debt payable | 1,779,925 | 1,763,612 | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) This section presents the company's unaudited condensed consolidated statements of cash flows, categorizing activities into operating, investing, and financing Condensed Consolidated Statements of Cash Flows (Unaudited) | Metric ($ in thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by/(used in) operating activities | 70,939 | (44,416) | | Net cash provided by/(used in) investing activities | (127) | (88) | | Net cash provided by/(used in) financing activities | (170,528) | 214,834 | | Net increase/(decrease) in cash and cash equivalents | (99,716) | 170,330 | | Cash and cash equivalents at end of period | 372,248 | 390,673 | [Condensed Consolidated Statements of Changes in Equity (Unaudited)](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity%20(Unaudited)) This section presents the company's unaudited condensed consolidated statements of changes in equity, detailing movements in capital and retained earnings Key Changes in Equity (Six months ended June 30, 2025) | Metric ($ in thousands) | Amount | | :--------------------------------------- | :----- | | Beginning of period (Total shareholders' equity) | 3,256,835 | | Net income/(loss) attributable to Burford Capital Limited shareholders | 119,225 | | Foreign currency translation adjustment | (12,263) | | Acquisition of ordinary shares held in treasury | (15,310) | | Dividends paid | (13,667) | | Third-party net capital contribution/(distribution) | (134,869) | | End of period (Total shareholders' equity) | 3,228,408 | [Notes to the Condensed Consolidated Financial Statements (Unaudited)](index=14&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section provides detailed disclosures and explanations supporting the condensed consolidated financial statements [1. Organization](index=14&type=section&id=1.%20Organization) This note describes Burford Capital Limited's business as a legal finance provider and its stock exchange listings - **Burford Capital Limited** provides legal finance products and services and is engaged in asset management. Its ordinary shares trade on **AIM (London Stock Exchange)** and **NYSE** under '**BUR**'[73](index=73&type=chunk)[74](index=74&type=chunk) [2. Summary of significant accounting policies](index=14&type=section&id=2.%20Summary%20of%20significant%20accounting%20policies) This note outlines the significant accounting policies used in preparing the financial statements, including fair value measurements and consolidation principles

[Introduction and Disclaimers](index=2&type=section&id=introduction_and_disclaimers) This section provides essential legal disclaimers, outlines forward-looking statement caveats, clarifies financial reporting basis, and introduces Burford Capital [Notice & Disclaimer](index=2&type=section&id=notice_disclaimer) This section provides standard legal disclaimers, clarifies presentation scope, and notes that 2Q25 and YTD25 results are not indicative of full-year performance - Presentation covers 3 and 6 months ended June 30, 2025, and is not a complete business description[2](index=2&type=chunk) [Forward-Looking Statements](index=2&type=section&id=forward_looking_statements) This section details forward-looking statements, noting actual results may differ due to risks like litigation outcomes, AI model inaccuracy, and regulatory changes - Forward-looking statements involve known and unknown risks that could cause actual results to differ materially[3](index=3&type=chunk) - Key risk factors include adverse litigation outcomes, **AI technology inaccuracy**, regulatory changes, and **cybersecurity breaches**[3](index=3&type=chunk)[4](index=4&type=chunk) [Basis of Presentation & Non-GAAP Measures](index=3&type=section&id=basis_of_presentation_non_gaap_measures) Burford uses US GAAP but supplements with non-GAAP "Burford-only" and "adjusted Burford-only" measures for segment reporting and performance assessment - Burford uses US GAAP but supplements with **"Burford-only"** and **"adjusted Burford-only"** non-GAAP measures for segment reporting[7](index=7&type=chunk) - Non-GAAP measures like **cash receipts** and **Tangible Book Value Per Ordinary Share (TBVPS)** assess operating performance and financial condition[8](index=8&type=chunk) [About Burford & Conference Call](index=4&type=section&id=about_burford_conference_call) Burford Capital, a leading global legal finance firm, announced a conference call for August 7, 2025, to discuss 2Q25 results - Burford Capital is a leading global legal finance and asset management firm, publicly traded on NYSE and LSE[15](index=15&type=chunk) - A conference call for investors and analysts was scheduled for August 7, 2025, at 9:00 am EDT / 2:00 pm BST[14](index=14&type=chunk) [Executive Summary & Key Highlights](index=4&type=section&id=executive_summary_key_highlights) This section summarizes Burford's strong financial performance, new business generation, and strategic capital raising initiatives for 2Q25 and YTD25 [CEO Statement & Overall Performance](index=4&type=section&id=ceo_statement_overall_performance) CEO Christopher Bogart reported significant revenue and profitability increases, substantial new business, and a successful **$500 million** capital raise in July - Burford saw sharp increases in revenue and profitability in **2Q25** and **YTD25**[16](index=16&type=chunk) - Substantial levels of new business were written, illustrating strong demand and pipeline[16](index=16&type=chunk) - **$500 million** of new capital was raised in July, reflecting market confidence and underscoring Burford's competitive moat[17](index=17&type=chunk) [Key Messages on 2Q25 and YTD25 Results](index=6&type=section&id=key_messages_on_2q25_and_ytd25_results) Key messages highlight strong new business momentum, substantial increases in revenue and net income, and scaling earnings capacity driven by portfolio growth - New business momentum illustrates strong demand[20](index=20&type=chunk) - Revenue and net income are up substantially[20](index=20&type=chunk) - Portfolio base (cost basis + definitive undrawn commitments) increased by **15%** in YTD25[20](index=20&type=chunk) - Cash receipts were **$48 million** in 2Q25 and **$306 million** in YTD25, up **25%** from YTD24[21](index=21&type=chunk) [Financial Metrics Summary (Burford-only)](index=7&type=section&id=financial_metrics_summary_burford_only) Burford-only metrics show significant growth in capital provision income and net income for YTD25, with stable debt ratios despite decreased liquidity | Metric | YTD25 ($ million) | YTD24 ($ million) | 2Q25 ($ million) | 2Q24 ($ million) | Change YTD25 vs YTD24 | | :-------------------------- | :---------------- | :---------------- | :--------------- | :--------------- | :-------------------- | | Capital provision income | 246 | 137 | 155 | 119 | +79.6% | | Net realized gains | 61 | 129 | 27 | 99 | -52.7% | | Asset management income | 21 | 18 | 7 | 11 | +16.7% | | Net income | 119 | 24 | 88 | 54 | +395.8% | | Diluted earnings per share | 0.53 | 0.11 | 0.39 | 0.24 | +381.8% | | Cash receipts | 306 | 245 | 48 | 107 | +24.9% | | Balance Sheet & Liquidity Measures | Jun 30, 2025 ($ million) | Dec 31, 2024 ($ million) | | :--------------------------------- | :----------------------- | :----------------------- | | Shareholders' equity | 2,503 | 2,419 | | Book value per ordinary share | 11.44 | 11.03 | | Tangible book value per ordinary share | 10.83 | 10.42 | | Debt payable | 1,780 | 1,764 | | Debt / Net tangible equity | 0.7x | 0.8x | | Liquidity (Cash and marketable securities) | 440 | 521 | [GAAP Consolidated Financial Results](index=5&type=section&id=gaap_consolidated_financial_results) This section presents Burford's consolidated GAAP financial results, highlighting significant increases in net income and total revenues for 2Q25 and YTD25 [Consolidated Statement of Operations](index=5&type=section&id=consolidated_statement_of_operations) Consolidated GAAP net income significantly increased for 2Q25 and YTD25, driven by substantial revenue growth from capital provision income and YPF-related unrealized gains | Metric ($ thousands) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | **Revenues** | | | | | | Capital provision income/ (loss) | 355,680 | 198,506 | 224,164 | 157,745 | | Net realized gains/ (losses) | 107,915 | 175,333 | 40,296 | 117,471 | | Unrealized gains/ (losses) ex YPF-related assets | 47,918 | (12,278) | 45,398 | 17,690 | | Unrealized gains/ (losses) from YPF-related assets | 180,921 | 37,647 | 125,492 | 21,380 | | Total revenues | 310,145 | 203,948 | 191,286 | 159,653 | | **Operating expenses** | | | | | | Total operating expenses | 90,166 | 68,289 | 49,065 | 38,151 | | **Net income/(loss)** | | | | | | Net income/(loss) | 142,063 | 57,774 | 105,153 | 75,272 | | Net income/(loss) attributable to Burford Capital Limited shareholders | 119,225 | 23,809 | 88,296 | 53,746 | - Consolidated GAAP net income was **$105 million** in 2Q25 and **$142 million** in YTD25[19](index=19&type=chunk) - Net income attributable to Burford Capital Limited shareholders was **$88 million** in 2Q25 and **$119 million** in YTD25[19](index=19&type=chunk) [Total Segments (Burford-only) Financial Results](index=8&type=section&id=total_segments_burford_only_financial_results) This section details Burford-only financial results for all segments, showing substantial net income growth driven by capital provision income and unrealized gains [Total Segments Statement of Operations](index=9&type=section&id=total_segments_statement_of_operations) Burford-only total segments reported substantial YTD25 net income growth, driven by increased capital provision income from unrealized gains and higher asset management income | Metric ($ thousands) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | **Revenues** | | | | | | Capital provision income/ (loss) | 246,360 | 137,263 | 155,410 | 119,360 | | Net realized gains/ (losses) | 61,176 | 129,047 | 26,592 | 99,153 | | Unrealized gains / (losses) | 167,404 | 9,775 | 116,639 | 18,863 | | Asset management income/(loss) | 20,949 | 18,160 | 7,112 | 11,487 | | Total revenues | 282,798 | 168,655 | 171,497 | 137,277 | | **Operating expenses** | | | | | | Total operating expenses | 85,635 | 66,966 | 46,112 | 37,302 | | **Net income/(loss)** | | | | | | Net income/(loss) | 119,225 | 23,809 | 88,296 | 53,746 | | Per diluted ordinary share | 0.53 | 0.11 | 0.39 | 0.24 | - Capital provision income was **$155 million** in 2Q25 and **$246 million** in YTD25, up **79%** from YTD24, driven by higher unrealized gains[29](index=29&type=chunk) - Net income was **$88 million** (**$0.39** per diluted share) in 2Q25 and **$119 million** (**$0.53** per diluted share) in YTD25, nearly **5x** compared to YTD24[29](index=29&type=chunk) [Principal Finance Segment](index=10&type=section&id=principal_finance_segment) This section details the Principal Finance segment's performance, portfolio, new business, and historical track record, highlighting strong returns and growth [Segment Results](index=11&type=section&id=segment_results) The Principal Finance segment reported significant YTD25 revenue growth, primarily from capital provision income and unrealized gains, leading to higher income before taxes | Metric ($ thousands) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | **Revenues** | | | | | | Capital provision income/ (loss) | 246,360 | 137,263 | 155,410 | 119,360 | | Net realized gains/ (losses) | 61,176 | 129,047 | 26,592 | 99,153 | | Unrealized gains/ (losses) | 167,404 | 9,775 | 116,639 | 18,863 | | Total revenues | 261,602 | 149,961 | 163,952 | 125,540 | | **Operating expenses** | | | | | | Total operating expenses | 70,338 | 55,334 | 37,875 | 30,673 | | **Income/(loss) before income taxes** | | | | | | Income/(loss) before income taxes | 125,488 | 27,040 | 93,582 | 60,335 | [Portfolio Snapshot](index=12&type=section&id=portfolio_snapshot) As of June 30, 2025, the Principal Finance portfolio fair value reached **$3,811 million**, with **$1,754 million** in undrawn commitments, concentrated in North America and EMEA - Portfolio fair value was **$3,811 million** as of June 30, 2025, up from **$3,571 million** at the end of 2024[34](index=34&type=chunk)[36](index=36&type=chunk) - Undrawn commitments totaled **$1,754 million** as of June 30, 2025[34](index=34&type=chunk) - Deployed cost (excluding YPF-related assets) is **51%** in North America, **26%** in EMEA, and **20%** Global[38](index=38&type=chunk) - Top asset types by deployed cost (excluding YPF-related assets) are **Antitrust (20%)**, **IP (20%)**, and **Mixed portfolio (21%)**[40](index=40&type=chunk) [Capital Provision Income and Fair Value Bridge](index=13&type=section&id=capital_provision_income_and_fair_value_bridge) YTD25 capital provision income significantly increased to **$246.4 million**, driven by unrealized gains, especially from YPF-related assets, with deployments positively impacting fair value | Metric ($ million) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | Net realized gains/ (losses) | 61.2 | 129.0 | 26.6 | 99.2 | | Unrealized gains/ (losses), ex YPF-related assets | 48.6 | (15.0) | 34.4 | 4.9 | | Unrealized gains/ (losses) from YPF-related assets | 118.8 | 24.8 | 82.3 | 14.0 | | Total capital provision income/(loss) | 246.4 | 137.3 | 155.4 | 119.4 | - Fair value of capital provision assets increased from **$3,627 million** (March 31, 2025) to **$3,811 million** (June 30, 2025) in 2Q25, with deployments and duration impact as key positive drivers[43](index=43&type=chunk) [New Business](index=14&type=section&id=new_business) New definitive commitments for Principal Finance surged to **$518 million** in YTD25, a **71%** rise, with definitive undrawn commitments growing **38%** to **$1.1 billion** - New definitive commitments were **$361 million** in 2Q25, significantly higher than any quarter in the past two years[24](index=24&type=chunk)[52](index=52&type=chunk) - New definitive commitments for YTD25 totaled **$518 million**, up **71%** from YTD24[24](index=24&type=chunk)[49](index=49&type=chunk) - Deployments were **$81 million** in 2Q25 and **$211 million** in YTD25, up **5%** from YTD24[48](index=48&type=chunk)[51](index=51&type=chunk) - Definitive undrawn commitments were **$1.1 billion** as of June 30, 2025, a **38%** increase from December 31, 2024[52](index=52&type=chunk) [Portfolio Realizations and Realized Gains](index=15&type=section&id=portfolio_realizations_and_realized_gains) Principal Finance realizations reached **$225 million** in YTD25, a **3%** increase, with a **76%** implied ROIC for 2Q25 and **37%** for YTD25 - Realizations were **$62 million** in 2Q25 and **$225 million** in YTD25, up **3%** from YTD24[58](index=58&type=chunk) - YTD25 realizations were well diversified, with six additional assets generating **$10 million** or more[58](index=58&type=chunk) - 2Q25 net realized gains implied a **ROIC of 76%**, while YTD25 ROIC was **37%**, influenced by a large corporate monetization asset in 1Q25 with a **25% ROIC** and **40% IRR**[58](index=58&type=chunk) [Historical Track Record - Fully and Partially Concluded Assets](index=16&type=section&id=historical_track_record_fully_and_partially_concluded_assets) Burford generated consistently high returns on **$3.5 billion** of realizations since inception, with cumulative ROIC and IRR remaining steady at **83%** and **26%** respectively - Burford generated consistently high returns on **$3.5 billion** of realizations since inception through June 30, 2025[62](index=62&type=chunk) - Cumulative **ROIC** and **IRR** on realizations remained steady at **83%** and **26%** respectively[62](index=62&type=chunk) - **81%** of concluded case commitments were deployed to adjudication and won (**49% IRR**, **246% ROIC**) or settled (**23% IRR**, **67% ROIC**)[60](index=60&type=chunk) [Asset ROIC Distribution - Asymmetric Returns](index=17&type=section&id=asset_roic_distribution_asymmetric_returns) Asset ROIC distribution shows favorable risk-adjusted returns with a positive skew, **13%** of deployed cost generated **ROICs > 200%**, and a **9.6%** lifetime loss rate - Favorable risk-adjusted return dynamics are exemplified by the positive skew of the distribution of returns since inception[65](index=65&type=chunk) - **13%** of total deployed cost of concluded cases generated **ROICs greater than 200%** since inception[65](index=65&type=chunk) - **14%** of deployments experienced losses, but **31%** of deployed cost was recovered, leading to a **9.6% lifetime loss rate** on fully and partially concluded assets[65](index=65&type=chunk) [Historical Track Record by Vintage](index=18&type=section&id=historical_track_record_by_vintage) Historical track record by vintage shows consistent performance with an overall **ROIC of 83%** and **IRR of 26%** for realized assets since inception - Overall **ROIC** for realized assets since inception is **83%**, and **IRR** is **26%**[66](index=66&type=chunk) - Weighted average life (**WAL**) for concluded assets is **2.6 years**, and for active deployed cost is **3.3 years**[67](index=67&type=chunk) | Vintage | ROIC (%) | IRR (%) | WAL (years) | | :------ | :------- | :------ | :---------- | | 2009 | 251 | 32 | 4.8 | | 2010 | 108 | 18 | 4.7 | | 2011 | (2) | 0 | 2.5 | | 2012 | 103 | 41 | 2.1 | | 2013 | 93 | 22 | 3.6 | | 2014 | 31 | 10 | 2.9 | | 2015 | 245 | 131 | 2.7 | | 2016 | 64 | 14 | 3.3 | | 2017 | 132 | 18 | 3.3 | | 2018 | 143 | 32 | 1.8 | | 2019 | 65 | 82 | 1.9 | | 2020 | 91 | 29 | 1.8 | | 2021 | 26 | 30 | 1.1 | | 2022 | 146 | 42 | 0.9 | | 2023 | nm | 46 | 0.3 | | 2024 | 36 | 42 | | | 2025 | 68 | 51 | | [YPF-Related Assets](index=19&type=section&id=ypf_related_assets) Burford is well-positioned to monetize **$1.6 billion** in YPF-related assets, with a **$16 billion** judgment against Argentina under appeal, and litigation risk remaining - YPF-related assets have a fair value of **$1.6 billion** as of June 30, 2025[73](index=73&type=chunk) - Final judgment was a complete win against Argentina for **$16 billion**, with Argentina appealing to the Second Circuit Court of Appeals[73](index=73&type=chunk) - A favorable ruling ordered Argentina to turn over Class D shares of YPF to partially satisfy the judgment, which is also under appeal[73](index=73&type=chunk) - Expected Burford-only net entitlement is around **35%** of Petersen case proceeds and **82%** of Eton Park case proceeds[71](index=71&type=chunk) [Asset Management and Other Services Segment](index=20&type=section&id=asset_management_and_other_services_segment) This section reviews the Asset Management and Other Services segment's financial performance, income, and portfolio, noting a shift towards balance sheet funding [Segment Results](index=21&type=section&id=segment_results) The Asset Management segment saw a slight YTD25 revenue increase from asset management income, but 2Q25 incurred a loss before taxes due to higher expenses | Metric ($ thousands) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | **Revenues** | | | | | | Asset management income/ (loss) | 20,949 | 18,160 | 7,112 | 11,487 | | Total revenues | 21,196 | 18,694 | 7,545 | 11,737 | | **Operating expenses** | | | | | | Total operating expenses | 15,297 | 11,632 | 8,237 | 6,629 | | **Income/(loss) before income taxes** | | | | | | Income/(loss) before income taxes | 5,899 | 7,062 | (692) | 5,108 | [Asset Management Income and Portfolio](index=22&type=section&id=asset_management_income_and_portfolio) YTD25 asset management income increased to **$21 million** due to performance fees, but cash receipts decreased, with a future focus on balance sheet funding - Asset management income was **$7 million** in 2Q25 and **$21 million** in YTD25, up from **$18 million** in YTD24, primarily due to performance fees in the Advantage Fund[81](index=81&type=chunk) - Cash receipts from asset management were **$1.5 million** in 2Q25 and **$8.6 million** in YTD25, compared to **$15.5 million** in YTD24[81](index=81&type=chunk) - Private funds portfolio is expected to decline in size, with a focus on funding from the balance sheet[81](index=81&type=chunk) | Asset Management Income ($ million) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :-------------------------------------- | :---- | :---- | :--- | :--- | | Asset management income | 20.9 | 18.2 | 7.1 | 11.5 | | Cash receipts from asset management | 8.6 | 15.5 | 1.5 | 11.0 | [Liquidity and Capital Management](index=23&type=section&id=liquidity_and_capital_management) This section examines Burford's liquidity, operating expenses, and debt structure, highlighting cash flow dynamics and stable leverage ratios [Liquidity Bridge and Cash Receipts](index=24&type=section&id=liquidity_bridge_and_cash_receipts) Cash and marketable securities decreased to **$440 million** by June 30, 2025, not including a **$500 million** July debt offering, while YTD25 cash receipts rose **25%** to **$306 million** - Cash and marketable securities were **$440 million** as of June 30, 2025, down from **$521 million** as of December 31, 2024[87](index=87&type=chunk) - The June 30, 2025 liquidity level does not include the impact of a **$500 million** debt offering in July 2025[87](index=87&type=chunk) - Cash receipts were **$48 million** in 2Q25 and **$306 million** in YTD25, up **25%** from YTD24[87](index=87&type=chunk) [Operating Expenses](index=25&type=section&id=operating_expenses) Total Burford-only operating expenses increased in 2Q25 and YTD25, primarily due to variable non-cash compensation drivers like share price impact on deferred compensation | Metric ($ thousands) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | **Compensation and benefits** | | | | | | Salaries and benefits | 24,144 | 22,566 | 11,749 | 10,909 | | Annual incentive compensation | 9,319 | 9,711 | 5,074 | 4,875 | | Share-based and deferred compensation | 10,064 | 4,067 | 7,265 | 197 | | Long-term incentive compensation including accruals | 19,740 | 14,654 | 12,865 | 13,016 | | Total compensation and benefits | 63,267 | 50,998 | 36,953 | 28,997 | | General, administrative and other | 17,786 | 14,747 | 7,666 | 7,630 | | Case-related expenditures ineligible for inclusion in asset cost | 4,582 | 1,221 | 1,493 | 675 | | Total operating expenses | 85,635 | 66,966 | 46,112 | 37,302 | - Operating expenses increased predominantly due to variable non-cash drivers of compensation and benefits, including the impact of Burford's share price on deferred compensation and higher long-term incentive compensation accruals[89](index=89&type=chunk) [Debt Structure and Ratios](index=26&type=section&id=debt_structure_and_ratios) Debt payable remained stable at **$1,780 million**, with a pro forma weighted average life of **5.2 years** after a **$500 million** July debt issuance, and leverage ratios remain within covenants - Debt payable was **$1,780 million** as of June 30, 2025, similar to **$1,764 million** as of December 31, 2024[98](index=98&type=chunk) - Pro forma weighted average life (**WAL**) of outstanding debt is **5.2 years**, compared to **2.6 years** for concluded assets and **3.3 years** for active deployments[92](index=92&type=chunk)[98](index=98&type=chunk) - Consolidated net debt to consolidated tangible assets ratio was **22%** (actual) and **20%** (pro forma) as of June 30, 2025[94](index=94&type=chunk)[115](index=115&type=chunk) - Consolidated indebtedness to net tangible equity ratio was **0.7x** (actual) and **0.9x** (pro forma) as of June 30, 2025, well within covenant thresholds[96](index=96&type=chunk)[98](index=98&type=chunk)[116](index=116&type=chunk) [Closing Thoughts](index=27&type=section&id=closing_thoughts) This section summarizes Burford's key achievements, including portfolio growth, YPF-related progress, and strong capital access, reinforcing its competitive position [Key Takeaways](index=27&type=section&id=key_takeaways) Key takeaways include **71%** YTD25 new definitive commitment growth, tangible progress in YPF-related assets, and strong capital access via a **$500 million** oversubscribed debt issuance - New definitive commitments of **$518 million** in YTD25, up **71%** from YTD24, and portfolio base up **15%** in YTD25[100](index=100&type=chunk) - Tangible progress in YPF-related assets, including a favorable ruling on enforcement motion for turnover of YPF shares, with the main appeal tentatively set for October 27, 2025[100](index=100&type=chunk) - **$500 million** debt issuance in July 2025 allows for extending near-term maturities, with the deal being over-subscribed and favorably priced[100](index=100&type=chunk) [Financial Reconciliations and Glossary](index=28&type=section&id=financial_reconciliations_and_glossary) This section provides detailed financial reconciliations for consolidated and non-GAAP measures, along with a comprehensive glossary of key financial and operational terms [Consolidated Financial Statement Reconciliations](index=28&type=section&id=consolidated_financial_statement_reconciliations) This section provides detailed reconciliations of consolidated financial statements, breaking down revenues, expenses, and balance sheet items into consolidated, third-party, and Burford-only totals - Provides detailed reconciliations of consolidated financial statements, separating Burford-only figures from third-party interests[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) [Statement of Operations - Three Months Ended June 30, 2025 and 2024](index=29&type=section&id=statement_of_operations_three_months_ended_june_30_2025_and_2024) This table reconciles the consolidated statement of operations for the three months ended June 30, 2025 and 2024, showing Burford-only figures | ($ thousands) | Consolidated (2Q25) | Third-party interests (2Q25) | Total segments (Burford-only) (2Q25) | Consolidated (2Q24) | Third-party interests (2Q24) | Total segments (Burford-only) (2Q24) | | :------------------------------------------ | :------------------ | :--------------------------- | :----------------------------------- | :------------------ | :--------------------------- | :----------------------------------- | | Total revenues | 191,286 | (19,789) | 171,497 | 159,653 | (22,376) | 137,277 | | Total operating expenses | 49,065 | (2,953) | 46,112 | 38,151 | (849) | 37,302 | | Net income/(loss) | 105,153 | (16,857) | 88,296 | 75,272 | (21,526) | 53,746 | [Statement of Operations - Six Months Ended June 30, 2025 and 2024](index=30&type=section&id=statement_of_operations_six_months_ended_june_30_2025_and_2024) This table reconciles the consolidated statement of operations for the six months ended June 30, 2025 and 2024, showing Burford-only figures | ($ thousands) | Consolidated (YTD25) | Third-party interests (YTD25) | Total segments (Burford-only) (YTD25) | Consolidated (YTD24) | Third-party interests (YTD24) | Total segments (Burford-only) (YTD24) | | :------------------------------------------ | :------------------- | :---------------------------- | :------------------------------------ | :------------------- | :---------------------------- | :------------------------------------ | | Total revenues | 310,145 | (27,347) | 282,798 | 203,948 | (35,293) | 168,655 | | Total operating expenses | 90,166 | (4,531) | 85,635 | 68,289 | (1,323) | 66,966 | | Net income/(loss) | 142,063 | (22,838) | 119,225 | 57,774 | (33,965) | 23,809 | [Statement of Financial Condition as of June 30, 2025 and December 31, 2024](index=31&type=section&id=statement_of_financial_condition_as_of_june_30_2025_and_december_31_2024) This table reconciles the consolidated statement of financial condition as of June 30, 2025, and December 31, 2024, showing Burford-only figures | ($ thousands) | Consolidated (Jun 30, 2025) | Third-party interests (Jun 30, 2025) | Total segments (Burford-only) (Jun 30, 2025) | Consolidated (Dec 31, 2024) | Third-party interests (Dec 31, 2024) | Total segments (Burford-only) (Dec 31, 2024) | | :------------------------------------------ | :-------------------------- | :----------------------------------- | :------------------------------------------- | :-------------------------- | :----------------------------------- | :------------------------------------------- | | Total assets | 6,326,839 | (1,622,799) | 4,704,040 | 6,175,025 | (1,586,694) | 4,588,331 | | Capital provision assets | 5,544,683 | (1,733,413) | 3,811,270 | 5,243,917 | (1,672,693) | 3,571,224 | | Total liabilities | 3,098,431 | (897,427) | 2,201,004 | 2,918,190 | (749,291) | 2,168,899 | | Debt payable | 1,779,925 | - | 1,779,925 | 1,763,612 | - | 1,763,612 | | Total shareholders' equity | 3,228,408 | (725,372) | 2,503,036 | 3,256,835 | (837,403) | 2,419,432 | [Other Reconciliations](index=32&type=section&id=other_reconciliations) This section provides detailed reconciliations for various non-GAAP financial measures and key performance indicators, including cash receipts, deployments, and tangible book value per share - Provides detailed reconciliations for non-GAAP measures such as **cash receipts**, deployments, realizations, and **tangible book value per share**[107](index=107&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk)[113](index=113&type=chunk) - Includes specific reconciliations for **YPF-related income** and **fair value**, highlighting their impact on overall financial performance[119](index=119&type=chunk)[120](index=120&type=chunk) [Cash Receipts](index=33&type=section&id=cash_receipts) This table provides a reconciliation of Burford-only cash receipts for the periods presented | Metric ($ thousands) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | Burford-only total proceeds from capital provision assets | 287,198 | 216,028 | 42,294 | 88,503 | | Burford-only proceeds from asset management income | 8,613 | 15,468 | 1,508 | 10,992 | | Cash receipts | 305,851 | 245,057 | 48,135 | 107,363 | - Cash receipts for YTD25 increased to **$305.9 million** from **$245.1 million** in YTD24[107](index=107&type=chunk) [Principal Finance Deployments](index=34&type=section&id=principal_finance_deployments) This table details Burford-only principal finance deployments for the periods presented | Metric ($ thousands) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | Adjusted (Burford-only) deployments | 210,687 | 200,613 | 80,776 | 133,098 | | Adjusted (Burford-only) less: private funds | 210,531 | 190,826 | 80,704 | 131,746 | [Principal Finance Realizations](index=35&type=section&id=principal_finance_realizations) This table details Burford-only principal finance realizations for the periods presented | Metric ($ thousands) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | Adjusted (Burford-only) realizations | 225,034 | 219,283 | 61,886 | 156,746 | | Adjusted (Burford-only) less: private funds | 206,953 | 215,738 | 58,090 | 154,664 | - Cumulative realizations from concluded or partially concluded assets since inception (Burford-only) reached **$3,539 million** as of June 30, 2025[111](index=111&type=chunk) [Net Realized Gains/(losses)](index=36&type=section&id=net_realized_gains_losses) This table presents Burford-only net realized gains and losses for the Principal Finance segment | Metric ($ thousands) | YTD25 | YTD24 | 2Q25 | 2Q24 | | :------------------------------------------ | :------ | :------ | :----- | :----- | | Principal Finance | 61,176 | 129,047 | 26,592 | 99,153 | | Excluding private funds | 56,216 | 127,907 | 25,039 | 99,153 | [Tangible Book Value Attributable to Burford Capital Limited per Ordinary Share](index=37&type=section&id=tangible_book_value_attributable_to_burford_capital_limited_per_ordinary_share) This table reconciles the tangible book value per ordinary share attributable to Burford Capital Limited | Metric ($ thousands, except share data) | June 30, 2025 | December 31, 2024 | | :----------------------------------------- | :------------ | :---------------- | | Total Burford Capital Limited equity | 2,503,036 | 2,419,432 | | Tangible book value attributable to Burford Capital Limited | 2,368,999 | 2,285,484 | | Tangible book value attributable to Burford Capital Limited per ordinary share | 10.83 | 10.42 | [Covenant Calculations](index=38&type=section&id=covenant_calculations) This table presents key covenant calculations, including debt to tangible assets and equity ratios | Metric | Jun 30, 2025 (Actual) | Dec 31, 2024 | Jun 30, 2025 (Pro Forma) | | :------------------------------------------ | :-------------------- | :----------- | :----------------------- | | Consolidated net debt to consolidated tangible assets ratio | 22 % | 20 % | 20 % | | Consolidated Indebtedness to Net Tangible Equity Ratio | 0.7x | 0.8x | 0.9x | | Consolidated Indebtedness to Consolidated Equity Ratio | 0.7x | 0.7x | 0.8x | [YPF-Related Income](index=39&type=section&id=ypf_related_income) This table details Burford-only YPF-related income and its contribution to capital provision income | Metric ($ thousands) | YTD25 (Burford-only) | YTD24 (Burford-only) | 2Q25 (Burford-only) | 2Q24 (Burford-only) | | :------------------------------------------ | :------------------- | :------------------- | :------------------ | :------------------ | | Income on capital provision assets, excluding YPF | 109,749 | 114,001 | 60,951 | 104,042 | | Fair value adjustment (YPF-only) | 118,831 | 24,821 | 82,280 | 13,974 | | Total capital provision income | 246,360 | 137,263 | 155,410 | 119,360 | [YPF-Related Fair Value](index=40&type=section&id=ypf_related_fair_value) This table presents the Burford-only fair value of YPF-related assets, including deployed costs and unrealized gains | Metric ($ thousands) | Jun 30, 2025 (Burford-only) | Dec 31, 2024 (Burford-only) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Capital provision assets | 3,811,270 | 3,571,224 | | Deployed costs on YPF-related assets | 107,927 | 69,576 | | Unrealized gains on YPF-related assets | 1,514,730 | 1,395,899 | [Asset Management Income](index=41&type=section&id=asset_management_income) This table breaks down Burford-only asset management income by type for the periods presented | Metric ($ thousands) | YTD25 (Burford-only) | YTD24 (Burford-only) | 2Q25 (Burford-only) | 2Q24 (Burford-only) | | :------------------------------------------ | :------------------- | :------------------- | :------------------ | :------------------ | | Management fee income | 4,400 | 3,507 | 1,349 | 1,644 | | Performance fee income | 13,662 | - | - | - | | Profit sharing income from funds | 20,949 | 14,653 | 5,763 | 9,843 | | Total asset management income | 20,949 | 18,160 | 7,112 | 11,487 | [Undrawn Commitments](index=42&type=section&id=undrawn_commitments) This table details Burford-only undrawn commitments, categorized by definitive, discretionary, and legal risk | Metric ($ thousands) | Jun 30, 2025 (Burford-only) | Dec 31, 2024 (Burford-only) | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Definitive | 1,065,183 | 773,673 | | Discretionary | 642,448 | 817,865 | | Legal risk (definitive) | 46,399 | 41,318 | | Total capital provision undrawn commitments | 1,754,030 | 1,632,856 | [Capital Provision Income](index=43&type=section&id=capital_provision_income) This table reconciles Burford-only capital provision income, including realized gains and fair value adjustments | Metric ($ thousands) | YTD25 (Burford-only) | YTD24 (Burford-only) | 2Q25 (Burford-only) | 2Q24 (Burford-only) | | :------------------------------------------ | :------------------- | :------------------- | :------------------ | :------------------ | | Net realized gains/ (losses) | 61,176 | 129,047 | 26,592 | 99,153 | | Fair value adjustment | 167,404 | 9,775 | 116,639 | 18,863 | | Income/(loss) on capital provision assets | 228,580 | 138,822 | 143,231 | 118,016 | | Total capital provision income | 355,680 | 198,506 | 224,164 | 157,745 | [Glossary](index=44&type=section&id=glossary) This section defines key financial and operational terms specific to Burford Capital's legal finance and asset management business - Defines **"Burford-only"** as a basis of presentation excluding third-party interests and private funds[126](index=126&type=chunk) - Explains **"Capital provision assets"** as financial instruments for legal finance and **"Cash receipts"** as cash generated from capital provision and other assets[127](index=127&type=chunk)[128](index=128&type=chunk) - Defines **"Realization"** as when a legal finance asset is concluded and **"ROIC"** as return on invested capital, a measure of absolute returns[138](index=138&type=chunk)[139](index=139&type=chunk)

Burford Capital is the leading global finance and asset management firm focused on law. Its businesses include litigation finance and risk management, asset recovery and a wide range of legal finance and advisory activities. Burford is publicly traded on the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR) and works with companies and law firms around the world from its global network of offices. NEW YORK, Aug. 7, 2025 /PRNewswire/ -- Burford Capital Limited ("Burford"), the lead ...

Burford Capital Limited (BUR) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on August 7, might help the stock move higher if these key numbers are better tha ...

Core Points - Burford Capital Limited will release its financial results for the second quarter of 2025 on August 7, 2025, at 8:00 AM EDT [1] - A conference call for investors and analysts is scheduled for the same day at 9:00 AM EDT, with pre-registration encouraged [2] - A live audio webcast and replay of the conference call will be available, along with a financial results presentation on Burford's website [3] Company Overview - Burford Capital is a leading global finance and asset management firm focused on law, involved in litigation finance, risk management, asset recovery, and legal finance advisory activities [4] - The company is publicly traded on both the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR) [4]

This press release does not constitute an offer to sell or the solicitation of an offer to buy any ordinary shares or other securities of Burford. This press release does not constitute an offer of any Burford private fund. Burford Capital Investment Management LLC, which acts as the fund manager of all Burford private funds, is registered as an investment adviser with the US Securities and Exchange Commission. The information provided in this press release is for informational purposes only. Past performan ...

Core Insights - Burford Capital's latest Burford Quarterly highlights the transformative role of legal finance in litigation, shifting it from a cost burden to a strategic business tool [2][4] - The publication emphasizes how legal finance is unlocking hidden value and empowering General Counsels (GCs) to act as strategic value creators for their organizations [2][4] Industry Trends - Affirmative recovery programs are emerging as strategic initiatives that align legal claims with business goals, enhancing liquidity through plaintiff-side litigation [3] - The role of GCs is evolving from legal advisors to strategic partners, focusing on boosting liquidity and driving enterprise value [6] Data Insights - Recent data indicates that 73% of in-house lawyers have reported increased revenue from patent monetization over the past decade, showcasing the growing importance of legal finance in unlocking portfolio value [6] - Legal finance is becoming increasingly central in London, which remains a global hub for commercial disputes, as discussed in a recent Burford Capital roundtable [6]

Company Overview - Burford is the world's largest capital provider of litigation finance and holds a dominant position in the rapidly growing litigation finance sector [1] - The company benefits from an established business model, a proven track record, and a promising total addressable market (TAM) [1] Investment Philosophy - The focus is on analyzing high-quality growth companies with sustainable competitive advantages and expanding market opportunities, particularly identifying emerging growth stories before they gain widespread attention [1] - Expertise has been developed in turnaround situations and contrarian investments, targeting fundamentally sound companies that are undervalued due to temporary challenges or market pessimism [1] - There is a commitment to providing insights on broader market conditions, macroeconomic trends, and sector rotations [1] Educational Background - The analytical skills are supported by an educational background from the University of Virginia, which includes rigorous coursework and practical application [1] - Real-world investing experience over four years emphasizes the importance of disciplined research, risk management, and a long-term perspective [1] Contribution to Investment Community - The goal is to share well-researched investment ideas and market insights with fellow investors, contributing valuable analysis to aid informed decision-making across various investment opportunities [1]

Core Viewpoint - Burford Capital Limited has provided an update regarding the removal of proposed tax provisions related to litigation finance from the US Senate's budget reconciliation bill, which has now been adopted without these provisions [1][2]. Company Overview - Burford Capital is a leading global finance and asset management firm focused on law, offering services in litigation finance, risk management, asset recovery, and various legal finance and advisory activities [3]. - The company is publicly traded on both the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR), and operates through a global network of offices [3].

Group 1 - Burford Capital Ltd. ADR (BUR) experienced a significant increase of 21.98%, marking its best single-day performance since March 2023 [1] - On June 30, a favorable ruling was made by a U.S. judge regarding Burford Capital Ltd.'s stake in Argentina's state-owned oil company YPF [1]