BENEFICIENT C/WTS 07/06/2028 (TO PUR COM) | 10-Q: FY2026 Q3 Revenue: USD 18.67 M

Revenue: As of FY2026 Q3, the actual value is USD 18.67 M.

EPS: As of FY2026 Q3, the actual value is USD 0.04.

EBIT: As of FY2026 Q3, the actual value is USD 9.744 M.

Consolidated Financial Performance

For the three months ended December 31, 2025, total revenues were $18,670 thousand, an increase from $4,419 thousand in the same period of 2024. Total operating expenses were $14,726 thousand, compared to $13,932 thousand in the prior year period. Net income attributable to Beneficient common shareholders was $19,913 thousand, a significant improvement from a net loss of - $8,639 thousand in the three months ended December 31, 2024.

For the nine months ended December 31, 2025, total revenues decreased to $3,284 thousand from $23,026 thousand in the prior year period. Total operating expenses were $109,852 thousand, substantially higher than $1,916 thousand in the nine months ended December 31, 2024. The company reported a net loss attributable to Beneficient common shareholders of - $48,792 thousand, compared to a net income of $51,942 thousand in the nine months ended December 31, 2024.

Segmented Performance

Ben Liquidity

Interest Income: $8.2 million for the three months ended December 31, 2025, down from $11.3 million in the same period of 2024. For the nine months ended December 31, 2025, interest income was $25.5 million, a decrease from $34.1 million in the prior year period.
Operating Income (Loss): Operating loss was - $29,167 thousand for the three months ended December 31, 2025, compared to an operating loss of - $2,853 thousand in the prior year period. For the nine months ended December 31, 2025, the operating loss was - $36,005 thousand, an increase from - $462 thousand in the same period of 2024.

Ben Custody

Trust Services and Administration Revenues: $2.9 million for the three months ended December 31, 2025, down from $5.4 million in the same period of 2024. For the nine months ended December 31, 2025, revenues were $10.2 million, a decrease from $16.2 million in the prior year period.
Operating Income (Loss): Operating income was $1,989 thousand for the three months ended December 31, 2025, compared to $3,507 thousand in the prior year period. For the nine months ended December 31, 2025, operating income was $7,409 thousand, a decrease from $9,123 thousand in the same period of 2024.

Corporate & Other

Operating Income (Loss): Operating income was $35,834 thousand for the three months ended December 31, 2025, compared to an operating loss of - $8,935 thousand in the prior year period. For the nine months ended December 31, 2025, the operating loss was - $47,268 thousand, compared to an operating income of $18,730 thousand in the same period of 2024.

Key Financial Metrics (Balance Sheet and Other)

Cash and Cash Equivalents: $7,867 thousand as of December 31, 2025, compared to $1,346 thousand as of March 31, 2025.
Investments held by Customer ExAlt Trusts (at fair value): $205,776 thousand as of December 31, 2025, down from $291,371 thousand as of March 31, 2025, primarily due to dispositions, distributions, and downward adjustments of Net Asset Value (NAV), partially offset by approximately $14.8 million in new originations.
Debt due to related parties: $100,337 thousand as of December 31, 2025, compared to $117,896 thousand as of March 31, 2025.
Accounts payable and accrued expenses: $241,795 thousand as of December 31, 2025, compared to $156,770 thousand as of March 31, 2025.
Warrants liability: $487 thousand as of December 31, 2025, compared to $227 thousand as of March 31, 2025.
Derivative asset: $56,218 thousand as of December 31, 2025, compared to - $0 thousand as of March 31, 2025.
Accrual (release) of loss contingency related to arbitration award: $62,831 thousand for the nine months ended December 31, 2025, compared to - $54,973 thousand in the same period of 2024.
Net loss attributable to noncontrolling interests - Customer ExAlt Trusts: $30,704 thousand for the nine months ended December 31, 2025, compared to $6,281 thousand in the same period of 2024.
Net loss attributable to noncontrolling interests - Ben: $39,201 thousand for the nine months ended December 31, 2025, compared to $15,098 thousand in the same period of 2024.
Goodwill: $9,914 thousand as of December 31, 2025, unchanged from March 31, 2025, with no impairment recognized during the three or nine months ended December 31, 2025.

Cash Flow

Net Cash Used in Operating Activities: - $34,737 thousand for the nine months ended December 31, 2025, compared to - $29,258 thousand in the prior year period.
Net Cash Provided by Investing Activities: $59,248 thousand for the nine months ended December 31, 2025, up from $17,388 thousand in the prior year period.
Net Cash (Used in) Provided by Financing Activities: - $17,990 thousand for the nine months ended December 31, 2025, a decrease from $8,094 thousand in the prior year period.

Outlook and Strategy

The Company anticipates needing additional capital over the next twelve months to meet obligations and fund operations, likely through new debt or equity issuance, including via the Standby Equity Purchase Agreement (SEPA), and monetization of Customer ExAlt Trusts’ investments. The Company is evaluating options for the $62.8 million arbitration award, such as appealing to the Texas Supreme Court or negotiating a settlement to reduce near-term cash obligations. Efforts to secure additional financing and reduce corporate overhead are ongoing, though their sufficiency for upcoming contractual obligations is not guaranteed.