Burford Capital (BUR) investor relations material

Executive summary

• Reported a net loss of $1.63 billion for Q1 2026, driven by a substantial non-cash write-down of YPF-related assets following an adverse court decision and reversal of the YPF judgment on appeal.

• The core business remains robust and market-leading, with a large, diversified portfolio generating strong cash flows and ambitions to double the portfolio base by 2030.

• Cash and liquidity remain strong, with over $700 million in cash and marketable securities at quarter end and $280 million in cash receipts year-to-date.

• Management is optimistic about a positive arbitration outcome for YPF-related assets, though the process is expected to be lengthy and confidential.

• Operating expenses included significant reversals of incentive compensation accruals tied to the YPF matter.

Financial highlights

• GAAP consolidated net loss was $(1,633) million for Q1 2026, compared to net income of $37 million in Q1 2025, with book value per share falling to $3.78 from $11.18 at year-end 2025.

• Capital provision income swung to a loss of $2.5 billion from a gain of $131.5 million year-over-year, driven by the YPF asset write-down.

• Cash receipts were $89.8–$97 million in Q1 2026, with visibility to over $280 million in cash receipts so far in 2026.

• Liquidity remains strong with $740 million in cash and marketable securities at quarter end.

• A $500 million debt raise in January further strengthened liquidity and was used to redeem 2026 bonds.

Outlook and guidance

• Management expects continued strong demand and a robust pipeline for new business throughout 2026, with ambitions to double the portfolio base by 2030 at a ~12% CAGR.

• Anticipates billions in future cash flows from the existing portfolio, excluding YPF, and a long-term ROE target of around 20%.

• Plans to de-lever over time, focusing on organic growth and cash harvesting.

• Management expects ongoing volatility in results due to the nature of litigation finance and the timing of case resolutions.

• The business model is considered resilient to economic cycles, with portfolio returns largely uncorrelated to broader market conditions.