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Beneficient Reports Results for Third Quarter Fiscal 2025
BENFBen(BENF) Newsfilter·2025-02-13 11:11

Core Insights - Beneficient announced a proposed transaction to increase tangible book value by 9millionforpubliccompanystockholders,withapermanentequityincreaseof9 million for public company stockholders, with a permanent equity increase of 35 million [1][4] - The company completed its first primary capital transaction as part of ongoing business development activities [1][2] - Beneficient proposed the acquisition of Mercantile Bank International Corp to expand its capabilities in alternative and digital asset markets [3] Financial Performance - For the third quarter of fiscal 2025, Beneficient reported revenues of 4.4million,asignificantincreasefrom4.4 million, a significant increase from (10.2) million in the same quarter of fiscal 2024 [5][21] - Operating expenses decreased by 98% to 13.9millioninthethirdquarteroffiscal2025,comparedto13.9 million in the third quarter of fiscal 2025, compared to 905.7 million in the same quarter of fiscal 2024, which included a non-cash goodwill impairment of 883.2million[5][23]−Thecompanyimproveditspermanentequityfromadeficitof883.2 million [5][23] - The company improved its permanent equity from a deficit of 148.3 million as of June 30, 2024, to a positive 14.3millionasofDecember31,2024[5][23]BusinessSegments−Beneficient′sbusinesssegmentsincludeBenLiquidity,whichrecognized14.3 million as of December 31, 2024 [5][23] Business Segments - Beneficient's business segments include Ben Liquidity, which recognized 34.1 million of interest income for the nine months ended December 31, 2024, down 6.0% compared to the prior year period [15][30] - Ben Custody provided full-service trust and custody administration services, generating revenues of 5.4millionforthefiscalthirdquarter,consistentwiththepreviousquarter[13][30]−Thetotalinvestmentsatfairvaluewerereportedat5.4 million for the fiscal third quarter, consistent with the previous quarter [13][30] - The total investments at fair value were reported at 334.3 million as of December 31, 2024, supporting Ben Liquidity's loan portfolio [5][29] Strategic Initiatives - The proposed acquisition of Mercantile Bank is expected to enhance Beneficient's offerings in digital asset market solutions and custody services, potentially generating higher fee rates [3][11] - The company aims to drive new growth opportunities in calendar 2025, leveraging its expanded service offerings [3][4] - Beneficient's balance sheet strategy focuses on diversification across various asset classes and geographies, supported by a well-diversified alternative asset portfolio [8][9]