Burford Capital (BUR) investor relations material

Executive summary

• Achieved record cash generation in 2Q26, the highest since 1Q25, with $733 million in cash and marketable securities supporting strong liquidity and prudent balance sheet management.

• Net income attributable to shareholders was $2 million in 2Q26, but a significant YTD26 loss of $1.63 billion resulted from a $2.4 billion write-down of YPF-related assets following a court reversal.

• Portfolio momentum continued with major arbitration wins, favorable court rulings, and a diversified global case book, though collection risks remain.

• Maintained leadership in the legal finance sector, with robust demand for capital and origination opportunities worldwide.

Financial highlights

• Realizations reached $94 million in 2Q26, up from $62 million in the same quarter last year, with total revenues for Q2 2026 at $110.7 million.

• Portfolio fair value stands at $4.1 billion, with $1.9 billion deployed cost and $400 million in unrealized gains (22% markup).

• Asset management income was $10 million in 2Q26, up 46% year-over-year, but $16 million YTD26, down from $21 million YTD25.

• Operating expenses for Q2 2026 were $47.4 million, down 3% year-over-year; for the six months, operating expenses were a credit of $102.7 million due to reversal of compensation accruals.

• Debt payable increased to $2.4 billion, with a weighted average life of 5.2 years.

Outlook and guidance

• Management anticipates continued strong cash flow from the diversified portfolio, despite some delays in case resolutions and market volatility.

• Focus remains on balancing growth with liquidity and de-leveraging, especially in light of market reactions to the YPF decision and 2028 debt maturity.

• No interim dividend planned for 2026; future dividends will be considered as leverage reduces and the portfolio matures.

• New business mix shifting toward higher-margin opportunities, with a reduction in large, lower-return deals.