Core Viewpoint - Burford Capital Limited (BUR) shares experienced a 5.6% increase, closing at $11.29, following a notable trading volume, contrasting with an 11.4% loss over the past four weeks [1] Group 1: Company Strengths - Burford is the world's largest dedicated legal finance provider, showcasing unmatched financial capabilities and global reach, with a focus on large-scale litigation finance [2] - The company has a proprietary data and technological advantage, utilizing in-house probabilistic modeling and decision science tools, refined through financing over $11.2 billion in legal assets [3] Group 2: Financial Expectations - Burford is projected to report quarterly earnings of $0.30 per share, reflecting a year-over-year decline of 50.8%, with revenues expected at $129.15 million, down 48.2% from the previous year [4] - The consensus EPS estimate for Burford has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [5] Group 3: Industry Context - Burford Capital holds a Zacks Rank of 3 (Hold) within the Zacks Financial - Miscellaneous Services industry, alongside TON Strategy Company, which also holds a Zacks Rank of 3 [6]

Group 1: Alphyn Capital Management Overview - Alphyn Capital Management's Master Account returned 3.0% net in Q3 2025, compared to 8.1% for the S&P 500 Index [1] - As of Q3 2025, the top ten holdings accounted for approximately 68% of the portfolio, with around 17% held in cash [1] - The market narrative in the quarter was influenced by AI advancements, credit cycles, and geopolitical uncertainty [1] Group 2: Burford Capital Limited Analysis - Burford Capital Limited (NYSE:BUR) experienced a one-month return of -6.77% and a 52-week loss of 17.23%, closing at $11.29 per share with a market capitalization of $2.47 billion on October 27, 2025 [2] - The share price performance of Burford Capital is significantly affected by the $16 billion YPF judgment against Argentina, with a turnover order issued by US District Judge Preska [3] - The US Department of Justice filed an amicus curiae brief arguing that seizing a sovereign nation's controlling stake would violate principles of sovereign immunity, leading to a stay of Judge Preska's order by the US Second Circuit Court of Appeals [3]

Core Viewpoint - Burford Capital Limited will release its financial results for the third quarter and nine months ended September 30, 2025, on November 5, 2025, at 8:00 AM EST [1] Group 1: Financial Results Announcement - The financial results will cover the three and nine months ended September 30, 2025 [1] - A conference call for investors and analysts is scheduled for November 5, 2025, at 9:00 AM EST [2] - Pre-registration for the conference call is encouraged to ensure swift access [2][3] Group 2: Access Information - Dial-in numbers for the conference call include +1 (646) 307-1951 (USA) and +44 (0)20 8610 3526 (UK) [2] - A live audio webcast and replay will be available on Burford's website [3] - An accompanying financial results presentation will also be made available prior to the conference call [3] Group 3: Company Overview - Burford Capital is a leading global finance and asset management firm focused on law, including litigation finance and risk management [4] - The company is publicly traded on both the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR) [4] - Burford operates a global network of offices, working with companies and law firms worldwide [4]

Core Insights - Legal finance is evolving into a strategic resource that helps businesses manage risk and unlock capital tied up in legal claims, particularly amid increasing complexity in business disputes [3][2] - Burford Capital's latest Burford Quarterly highlights the importance of legal finance in providing liquidity and offsetting risks across various sectors, including pharmaceuticals and construction [2][3] Group 1: Legal Finance Trends - The current landscape of business disputes is characterized by complex litigation, regulatory scrutiny, and cross-border challenges, necessitating innovative legal finance solutions [3] - Legal finance is increasingly recognized as a strategic tool for companies to manage litigation costs and support growth, especially in the pharmaceutical sector facing significant legal expenses [6][2] - Rising project complexity and supply chain disruptions in the construction industry are leading to an increase in high-value disputes, prompting parties to seek arbitration and innovative financing solutions [6][2] Group 2: Collective Actions and Legal Finance - The UK’s opt-out collective actions regime has matured since the Consumer Rights Act 2015, with legal finance playing a crucial role in enabling claims to proceed despite high costs and risks [6] - Legal finance is expected to remain essential as policymakers consider expanding collective redress mechanisms to address new areas of harm [6]

Core Points - Burford Capital Limited has declared an interim dividend of 6.25 US cents per ordinary share for the year ending December 31, 2025, to be paid on December 4, 2025 [1] - The Board anticipates maintaining a total annual dividend of 12.50 US cents per ordinary share, payable semi-annually, without regular increases in the dividend level [2] 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 various legal finance and 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]

Core Insights - Burford Capital has made a strategic minority investment in Kindleworth, combining Burford's global reach and legal expertise with Kindleworth's experience in launching and managing law firms [1][4][5] Group 1: Burford Capital Overview - Burford Capital is publicly listed on the NYSE and LSE, with a portfolio valued at $7.5 billion, focusing on financing high-value legal matters and supporting business growth [2] - The firm has partnered with 94 AmLaw 100 and 92 Global 100 law firms, indicating its strong presence in the legal finance sector [2] Group 2: Kindleworth Overview - Kindleworth has successfully launched over 50 law firms globally, employing more than 1,000 lawyers, showcasing its capability in the legal market [3] - The firm provides comprehensive support in law firm operations, including finance, compliance, technology, HR, operations, and marketing, allowing lawyers to concentrate on client service and growth [3] Group 3: Partnership Benefits - The partnership aims to create new opportunities for lawyers and support innovative law firm models, with Burford also looking to invest capital in Kindleworth-backed firms [4] - Both companies share a vision of empowering entrepreneurial lawyers and adapting to a rapidly changing legal market, enhancing their ability to support exceptional legal talent [5] Group 4: Financial Impact - The specific terms of the investment were not disclosed, but it is noted that the cash consideration does not represent a material investment for Burford [5] - Kindleworth has been consistently profitable since its founding in 2012, and the investment is expected to be accretive to Burford immediately, though it will not have a material impact on Burford's earnings per share [5]

Financial Data and Key Metrics Changes - The company reported a significant increase in total revenues year to date, reaching $280 million compared to $168 million in the same period last year, marking a substantial growth [17] - Net income rose to approximately $120 million, up from $24 million, resulting in earnings per share of $0.53, which is nearly five times higher than the same period last year [17][18] - New definitive commitments increased by 71% year to date compared to the previous year, with the second quarter being the strongest in recent years [6][25] Business Line Data and Key Metrics Changes - In the Principal Finance segment, the fair value of the portfolio reached $3.8 billion, with unfunded undrawn commitments of $1.7 billion to $1.8 billion [19] - The Asset Management segment reported income of $21 million year to date, showing improvement compared to the same period last year [43] Market Data and Key Metrics Changes - The company has a diverse geographical exposure, with 51% of assets in North America, 26% in EMEA, and 20% globally [20] - The asset types are also diverse, including 20% in antitrust, 20% in intellectual property, and 18% in arbitration [20] Company Strategy and Development Direction - The company is focused on expanding its global footprint and has recently added personnel in Korea and Spain to enhance its market presence [92] - There is an ongoing review of opportunities in law firm equity stakes and legal tech, with small amounts of capital already deployed in these sectors [93] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand for capital in the market and the company's ability to make substantial commitments [6] - The YPF case is progressing, with a tentative oral argument date set for October, indicating forward momentum [12][54] Other Important Information - The company successfully raised $500 million in a new issuance, demonstrating strong market support and a favorable cost of capital compared to competitors [10][11] - The weighted average cost of debt remains stable at 7.4%, with a maturity schedule extended to 5.2 years [49] Q&A Session Summary Question: Timing for the Second Circuit to hear the appeal for Argentina regarding YPF shares - Management indicated that the Second Circuit is expected to decide on the stay order quickly, but the timeline for the appeal itself is uncertain and could take months [57][60] Question: Contribution of other cases to fair value gains - Management noted that while YPF is significant, there are multiple cases contributing to fair value gains, with six realizations exceeding $10 million this year [68] Question: Asset management income lower than expected - Management explained that historical funds need to hit hurdles for income recognition, impacting the asset management income for the quarter [78] Question: Growth opportunities in specific industries or geographies - Management highlighted a broad and diversified pipeline, with ongoing expansion in various markets, including recent additions in Korea and Spain [92] Question: Evaluation of AI-related cases - Management stated that the company is well-positioned to engage in technology-related litigation, including issues arising from AI, while focusing on large, complex commercial cases [100]

Financial Data and Key Metrics Changes - Total revenues increased significantly year to date, reaching $280 million compared to $168 million in the same period last year, with net income rising to approximately $120 million from $24 million, resulting in earnings per share of $0.53, nearly five times higher than the same period last year [17][41] - New definitive commitments for the year to date increased by 71% compared to the same period in 2024, with the second quarter alone contributing $361 million, marking the largest quarter in the last nine [7][26] - Cash receipts year to date totaled $306 million, a substantial increase from $245 million in the same period last year [42] Business Line Data and Key Metrics Changes - The Principal Finance segment reported a fair value of $3.8 billion with unfunded undrawn commitments of approximately $1.7 billion to $1.8 billion, showing significant growth since 2020 [19] - The Asset Management segment generated income of $21 million year to date, reflecting a favorable comparison to the same point last year [41] Market Data and Key Metrics Changes - The company has a diverse geographical exposure, with 51% of assets in North America, 26% in EMEA, and 20% globally, indicating a broad market presence [20] - The asset portfolio is diversified across various sectors, including antitrust, intellectual property, and arbitration, demonstrating a well-rounded investment strategy [20] Company Strategy and Development Direction - The company aims to continue expanding its global footprint and has recently added personnel in Korea and Spain to enhance its market presence [91] - There is a focus on growing the portfolio through new definitive commitments and maintaining a strong capital position to support future investments [52][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand for capital in the market and the successful raising of $500 million in new debt, highlighting the company's competitive advantage in accessing capital [11][54] - The YPF case is progressing, with a tentative oral argument date set for October, indicating forward momentum despite the complexities of litigation [12][53] Other Important Information - The company reported a significant increase in cash and liquidity, with $440 million in cash at the end of the quarter, excluding recent debt issuance [42] - Management noted that expenses have increased due to variable noncash drivers related to compensation, but overall expenses remain stable compared to previous periods [44][46] Q&A Session Summary Question: Update on YPF case timing - Management explained the two-part procedure regarding the appeal and stay order, indicating that the Second Circuit is expected to decide on the stay order quickly, but the timeline for the appeal remains uncertain [56][60] Question: Contribution of other cases to fair value gains - Management stated that fair value gains were not solely from YPF, with multiple cases contributing to the overall performance, although specific details on individual cases were not disclosed [64][66] Question: Growth opportunities in specific industries or geographies - Management highlighted a broad and diversified pipeline, with ongoing expansion in various markets, including recent additions in Korea and Spain [88][91] Question: Future opportunities in legal tech and law firm equity - The company is actively reviewing potential opportunities in legal tech and law firm equity, with small amounts of capital already deployed in these sectors [88][91] Question: Economics of adjudication versus settlement - Management clarified that clients may accept lower settlements to eliminate the risk of trial, which explains the difference in economics between adjudication and settlement outcomes [94]

Financial Performance - Consolidated GAAP net income was $105 million in 2Q25 and $142 million in YTD25[17] - Net income attributable to Burford Capital Limited shareholders was $88 million in 2Q25 and $119 million in YTD25[17] - Cash receipts were $48 million in 2Q25 and $306 million in YTD25, up 25% from YTD24[19] - Capital provision income was $155 million in 2Q25 and $246 million in YTD25, up 79% from YTD24[23, 27] - Net income was $039 per diluted share in 2Q25 and $053 per diluted share in YTD25, nearly 5x compared to YTD24[23, 27] Portfolio and New Business - New definitive commitments were $361 million in 2Q25, significantly higher than any quarter in the past two years[23] - New definitive commitments were $518 million in YTD25, up 71% from YTD24[23, 96] - Portfolio base (cost basis + definitive undrawn commitments) was up 15% in YTD25[18, 96] - Group-wide portfolio was $75 billion as of June 30, 2025[20] Liquidity and Debt - Cash and marketable securities were $440 million as of June 30, 2025[24, 83] - Debt payable was $1780 million as of June 30, 2025[24, 94]

[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