Financial Performance - Beneficient reported revenues of $4.4 million for Q3 fiscal 2025, a significant increase from $(10.2) million in Q3 fiscal 2024, with total revenues for the nine months ended December 31, 2024, reaching $23.0 million compared to $(55.7) million in the prior year[7]. - GAAP revenues for Q3 2025 were $4,419,000, a decrease of 48.4% compared to Q3 2024's $(10,235,000)[20]. - Adjusted revenues for Q3 2025 were $4,427,000, down 49.3% from $8,456,000 in Q3 2024[20]. - Total revenues for the three months ended December 31, 2024, were $4,419,000, a decrease from $10,235,000 in the same period of 2023[45]. - For the nine months ended December 31, 2024, total revenues reached $23,026,000, with adjusted revenues of $23,572,000[50]. Operating Expenses and Income - Operating expenses decreased by 98% to $13.9 million in Q3 fiscal 2025, down from $905.7 million in Q3 fiscal 2024, which included a non-cash goodwill impairment of $883.2 million[7]. - GAAP operating loss for Q3 2025 was $(9,513,000), an improvement of 30.6% from $(915,951,000) in Q3 2024[20]. - Adjusted operating income for the nine months ended December 31, 2024, was $13.9 million, compared to $15.8 million in the prior year period, reflecting lower revenue due to decreased NAV of alternative assets[16]. - Operating income for the three months ended December 31, 2024, was a loss of $9,513,000, compared to a loss of $915,951,000 in the same period of 2023[45]. - Adjusted operating income for the three months ended December 31, 2024, was a loss of $7,301,000, reflecting ongoing operational challenges[47]. Net Income and Loss - For Fiscal Q3 2025, the net loss attributable to Ben's common shareholders was $8,639,000, compared to a net income of $12,914,000 in Q2 2025 and a net loss of $542,166,000 in Q3 2024[33]. - Year-to-date Fiscal 2025, the net loss attributable to Ben's common shareholders reached $1,781,521,000, compared to a loss of $2,029,424,000 in the same period of Fiscal 2024[33]. - Net income for the nine months ended December 31, 2024, was $43,831,000, compared to a net loss of $2,462,606,000 for the same period in 2023[45]. - The company reported a net loss attributable to common shareholders of $(8,639,000) for the three months ended December 31, 2024, compared to a net loss of $(542,166,000) in the same period of 2023[45]. Assets and Liabilities - Total assets as of December 31, 2024, were $400,012,000, an increase of 8.6% from $368,501,000 as of March 31, 2024[24]. - Cash and cash equivalents as of December 31, 2024, were $4.1 million, with total debt of $122.9 million[22]. - Total liabilities decreased to $295,226,000 as of December 31, 2024, from $309,567,000 as of March 31, 2024[46]. - The company’s accumulated deficit improved to $(2,007,272,000) as of December 31, 2024, from $(2,059,214,000) as of March 31, 2024[46]. Equity and Investments - Beneficient's permanent equity increased by $35 million through a re-designation of certain preferred equity, improving from a deficit of $148.3 million to a positive $14.3 million as of December 31, 2024[12]. - The company reported a total equity of $14,260,000 as of December 31, 2024, with a tangible book value of $91,772,000[53]. - The loan portfolio as of December 31, 2024, was supported by a diversified alternative asset collateral portfolio with a gross loan balance of $586 million and a net loan balance of $261 million after an allowance for credit losses of $325 million[12]. Proposed Transactions and Future Outlook - The proposed acquisition of Mercantile Bank for $1.5 million is expected to enhance Beneficient's digital asset market solutions and generate additional cash flow in calendar 2025[12]. - The company announced a proposed transaction to revise the liquidation priority of Beneficient Company Holdings, L.P., which is expected to provide $9.2 million of tangible book value to public company stockholders[12]. - Forward-looking statements indicate potential market growth and operational scaling, contingent on successful execution of the proposed transactions[43]. Regulatory and Compliance - The subsidiary, Beneficient Fiduciary Financial, received its charter under the Kansas TEFFI Act, indicating regulatory compliance and oversight[37]. - The company will file a preliminary proxy statement with the SEC regarding an amendment to increase authorized shares of Class B Common Stock[39]. Non-GAAP Financial Measures - The company emphasizes the importance of non-GAAP financial measures to provide a clearer understanding of its operating performance[54]. - Adjusted revenue excludes mark-to-market adjustments on related party equity securities, with adjusted segment revenues attributable to Ben's equity holders being the same as "adjusted revenues" related to Ben Liquidity, Ben Custody, and Corporate/Other Business Segments[55]. - Adjusted operating income (loss) excludes various adjustments including credit losses on related party debt securities and non-cash asset impairment, with adjusted segment operating income (loss) attributable to Ben's equity holders being consistent with these adjustments[56]. - Non-GAAP financial measures should not be considered as substitutes for GAAP revenues or operating income (loss), and cash flows not reflected in adjusted operating income (loss) can be significant[58].
Ben(BENF) - 2024 Q4 - Annual Results