Beneficient Reports Results for Second Quarter Fiscal 2025

Core Insights - Beneficient reported its second consecutive profitable quarter as a public company, indicating a strong position in the liquidity and primary capital market for private investments [2][3] - The company has authorized up to $5 billion in fiduciary financings to Customer ExAlt Trusts, aiming for substantial growth as new opportunities arise [2] - Beneficient's balance sheet was strengthened by redesignating approximately $125.5 million of preferred equity to permanent equity, improving its financial stability [3] Financial Performance - Investments with a fair value increased to $335.0 million from $329.1 million at the end of the previous fiscal year, supporting a net loan portfolio of $260.7 million [3][16] - Revenues for the second quarter of fiscal 2025 rose to $8.6 million, a significant recovery from a loss of $42.8 million in the same quarter of fiscal 2024 [3][20] - Operating expenses decreased to $22.3 million in the second quarter of fiscal 2025, down from $339.0 million in the same quarter of fiscal 2024, reflecting improved cost management [3][20] Business Segments - Ben Liquidity segment recognized $12.0 million in interest income for the fiscal second quarter, a 10.4% increase from the previous quarter, with operating income improving to $2.9 million [10][13] - Ben Custody segment reported revenues of $5.4 million for the fiscal second quarter, stable compared to the previous quarter, with operating income increasing to $4.3 million [12][14] - Total segment revenues attributable to Ben's equity holders were $16.6 million for the fiscal second quarter, a 2.4% increase compared to the prior quarter [26] Capital and Liquidity - As of September 30, 2024, the company had cash and cash equivalents of $4.5 million and total debt of $124.1 million [15] - Distributions received from alternative assets and other securities held in custody totaled $12.5 million for the six months ended September 30, 2024, down from $26.3 million in the same period of fiscal 2024 [16] Portfolio Diversification - The loan portfolio is supported by a diversified alternative asset collateral portfolio, including approximately 240 private market funds and around 800 investments across various sectors and geographies [6][8] - The portfolio includes exposure to notable private companies in sectors such as space exploration, clean energy, and technology [6]