Burford Capital(US:BUR)2025-11-05 13:00Growth and Strategy - Burford Capital is experiencing strong growth, aiming to double the size of its platform by 2030, as highlighted during the recent Investor Day[17]. - The portfolio is active, with rolling three-year realizations at their highest level ever, and 61 assets generating proceeds in 2025[17]. - The YPF matter is gaining significant attention, with positive prospects, while the majority of Burford's business is also flourishing and growing[18]. Financial Performance - Consolidated GAAP net income was $(20) million in 3Q25 and $122 million in YTD25, with net income attributable to Burford Capital Limited shareholders at $(19) million in 3Q25 and $100 million in YTD25[20]. - Total revenues for 3Q25 were $69.8 million, a significant decrease from $249.1 million in 3Q24[19]. - Total revenues for YTD25 were $351 million, a decrease from $394 million in YTD24[56]. - Operating income for Q3 2025 was $24.787 million, compared to $202.221 million in Q3 2024, reflecting a decline of 87.7%[121]. - Net loss for Q3 2025 was $20.270 million, contrasting with a net income of $157.864 million in Q3 2024[121]. - For the nine months ended September 30, 2025, total revenues were $379.948 million, down 16.1% from $453.062 million in the same period of 2024[123]. - Net income for the nine months ended September 30, 2025, was $121.793 million, down 43.6% from $215.638 million in 2024[123]. Commitments and Deployments - New definitive commitments reached $637 million in YTD25, a 52% increase compared to YTD24, while deployments were $329 million, up 20% from YTD24[26]. - Deployments were $329 million in YTD25, reflecting a 20% increase from $274 million in YTD24[76]. - Realizations totaled $310 million in YTD25, down from $388 million in YTD24, with 61 assets contributing to realizations[84]. Asset Management and Income - Total revenues for the Asset Management and Other Services Segment decreased to $21,148 thousand in YTD25 from $31,778 thousand in YTD24[93]. - Asset management income for YTD25 was $21 million, down from $29 million in YTD24, impacted by lower profit sharing income[99]. - Total segments (Burford-only) asset management income for the nine months ended September 30, 2025, was $20,781, compared to $29,270 in 2024, indicating a decline of 29%[130]. Cash Flow and Receipts - Cash receipts amounted to $423 million in YTD25, down from $556 million in YTD24[56]. - Cash receipts for Q3 2025 totaled $117,637, up from $48,135 in Q2 2025, representing a 144% increase[128]. - Total cash receipts for the nine months ended September 30, 2025, were $423,488, down from $555,548 in the same period of 2024[130]. Debt and Liabilities - The debt payable increased to $2.143 billion as of September 30, 2025, from $1.764 billion at the end of 2024[55]. - Total liabilities as of September 30, 2025, were $3.497 billion, compared to $2.918 billion as of December 31, 2024[125]. - The total principal amount of debt outstanding as of September 30, 2025, was $2,170,064,000, an increase from $1,783,690,000 at the end of 2024[138]. Asset Valuation and Performance Metrics - The fair value of YPF-related assets was $1.7 billion as of September 30, 2025, with expectations of a ten-figure recovery for Burford from these assets[29]. - Unrealized gains in the current portfolio, excluding YPF-related assets, amount to $541 million, representing a 32% return on invested capital (ROIC)[42]. - Total concluded assets from inception through September 30, 2025, amount to $3,623 million, with a cumulative ROIC of 83% and an IRR of 26%[88]. Market and Listing Considerations - Burford is considering options for its LSE listing, including retaining its AIM listing, as liquidity has shifted towards the US market[52]. Unrealized Gains and Losses - Unrealized gains on YPF-related assets increased to $2,354,423 as of September 30, 2025, from $2,118,112 as of December 31, 2024, marking a growth of 11.1%[144]. - 14% of deployments resulted in losses, with a lifetime loss rate of 9.8% on fully and partially concluded assets, recovering 31% of deployed costs when losses occurred[91].