Ben(US:BENF)2026-02-17 22:08Financial Performance - The company reported GAAP revenues of $18.67 million for the fiscal third quarter, a significant decrease of 85.7% compared to $123.84 million in the prior year[19]. - The operating loss for the fiscal third quarter was $29.2 million, compared to a loss of $0.8 million in the previous quarter[16]. - Adjusted operating income for the nine months ended December 31, 2025, was $7.4 million, down from $13.9 million in the prior year[17]. - Total revenues for the three months ended December 31, 2025, were $18,670,000, a decrease from $25,393,000 in the previous quarter[41]. - The operating loss for the nine months ended December 31, 2025, was $106,568,000, indicating a substantial decline in performance[43]. - The company reported a net income attributable to Ben's common shareholders of $19.9 million for fiscal 3Q26, compared to a loss of $8.6 million in fiscal 3Q25[31]. - Total revenues for the nine months ended December 31, 2024, were $23,026,000, with adjusted revenues of $23,572,000[45]. Expenses and Liabilities - Operating expenses increased by 5.7% to $14.7 million in the third quarter, compared to $13.9 million in the same period last year[6]. - Employee compensation and benefits for the three months ended December 31, 2025, were $3,010,000, compared to $2,929,000 for the same period in 2024[39]. - Interest expense for the three months ended December 31, 2025, was $5,810,000, up from $3,240,000 in the same period of 2024[39]. - Total liabilities increased to $375,901,000 as of December 31, 2025, compared to $299,274,000 as of March 31, 2025[40]. - Legal and professional fees amounted to $1,288,000 in the same quarter, contributing to the adjusted operating loss[41]. - Legal and professional fees related to lawsuits amounted to $5,825,000 during the reporting period[45]. Asset Management - The company generated $50 million in gross proceeds from asset sales, which were used to reduce debt and improve the balance sheet[4]. - Investments reported a fair value of $205.8 million, down from $291.4 million at the end of the previous fiscal year[6]. - The NAV of alternative assets held in custody decreased to $230.2 million from $338.2 million as of March 31, 2025[16]. - Total investments (at fair value) were $205.8 million at December 31, 2025, supporting Ben Liquidity's loan portfolio[21]. - The loan portfolio was supported by a diversified alternative asset collateral portfolio, with a total gross loan balance of $578 million and a net balance of $187 million after credit losses[10]. Segment Performance - Total segment revenues attributable to Ben's equity holders for fiscal 3Q26 were $55.1 million, a significant increase of 60.8% compared to $49.5 million in fiscal 2Q26[25]. - Ben Liquidity segment revenues for fiscal 3Q26 were $8.2 million, a decrease of 3.6% from $11.3 million in fiscal 3Q25[25]. - Ben Custody segment revenues for fiscal 3Q26 were $2.9 million, down 4.4% from $5.4 million in fiscal 3Q25[25]. - Total adjusted segment revenues attributable to Ben's equity holders for fiscal 3Q26 were $11.0 million, a decrease of 28.3% compared to $49.5 million year-to-date fiscal 2025[28]. - Total segment operating income attributable to Ben's equity holders for fiscal 3Q26 was $8.7 million, compared to a loss of $8.3 million in fiscal 3Q25[25]. Compliance and Governance - The company regained compliance with Nasdaq's listing requirements and resolved litigation related to GWG Holdings[11]. - The company appointed Peter T. Cangany, Jr. as Chairman of the Board effective December 15, 2025[6]. Future Outlook - The company plans to host a webcast and conference call to review its third quarter financial results on February 17, 2026[32]. - The company has plans to continue diversifying its loan portfolio and scaling operations to enhance shareholder value[37]. Impairments and Adjustments - The company reported a loss on impairment of goodwill of $3,692,000 for the nine months ended December 31, 2024[39]. - The company reported a goodwill impairment of $1,340,000 in the three months ended December 31, 2024[43]. - The company reported a goodwill impairment of $3,692,000 during the nine months ended December 31, 2024[45]. - The mark to market adjustment on derivative assets resulted in a loss of $44,063,000 for the three months ended December 31, 2025[41]. - The company experienced a mark-to-market adjustment on interests in the GWG Wind Down Trust amounting to $546,000[45]. - The intersegment provision for credit losses on collateral comprised of interests in the GWG Wind Down Trust was recorded as zero for the three months ended December 31, 2025[41]. - The company reported an intersegment provision for credit losses of $1,345,000 related to interests in the GWG Wind Down Trust[45]. Non-GAAP Measures - Adjusted operating income excludes non-cash asset impairment and share-based compensation expenses[48]. - The company emphasizes that non-GAAP financial measures are intended to provide supplemental insights into its operating performance[46].