Beneficient Reports Results for Second Quarter Fiscal 2026

Core Insights - The company reported improved financial results for the second quarter of fiscal 2026, highlighting effective cost management and capital structure enhancements [1][2][4] - The interim CEO emphasized the disciplined approach to managing the investment portfolio and operating expenses, which contributed to generating additional liquidity and compliance with SEC and Nasdaq requirements [2][3] Financial Performance - The company reported investments with a fair value of $244.0 million, down from $291.4 million at the end of the previous fiscal year, supporting a net loan portfolio of $223.1 million [6] - Operating expenses for the second quarter were $15.1 million, a decrease from $22.3 million in the same quarter of the previous year, reflecting a 38.8% decline when excluding non-cash items [6][12] - The company achieved $46.4 million in gross proceeds from asset sales year-to-date, which were utilized to reduce debt and enhance working capital [6] Business Segments - Ben Liquidity: Recognized $8.5 million in interest income for the second quarter, a decrease of 3.8% from the previous quarter, with an operating loss of $0.8 million, an improvement from a loss of $6.0 million [12][13] - Ben Custody: Reported revenues of $3.1 million for the second quarter, down from $4.2 million in the previous quarter, with an operating income of $2.3 million [14][17] Capital and Compliance - The company converted $52.6 million of BCH Preferred Series A-1 holdings into Class A common stock, aligning leadership interests with shareholders [3] - Beneficient regained compliance with Nasdaq's periodic filing and market value requirements, indicating a positive trajectory for the company [6][24] Balance Sheet and Investments - As of September 30, 2025, the company had total assets of $316.2 million, with investments at fair value decreasing by 16.3% from the previous quarter [27] - The loan portfolio was supported by a diversified alternative asset collateral portfolio, including approximately 190 private market funds and 520 investments across various sectors [9][11]