Commenting on the fiscal 2026 first quarter results, interim Chief Executive Officer James Silk said: "This quarter reflects meaningful progress strengthening Beneficient's financial and operational foundation. We've taken deliberate steps to reduce expenses, complete new primary capital transactions and generate additional liquidity through asset sales as well as bringing the Company current on its SEC filings. These achievements demonstrate our renewed focus on disciplined execution as we work to provide value for our shareholders and seek to position the Company for long-term success."
First Quarter Fiscal 2026 and Recent Highlights (for the quarter ended June 30, 2025 or as noted):
Reported investments with a fair value of $263.8 million, decreased from $291.4 million at the end of our prior fiscal year, which served as collateral for Ben Liquidity's net loan portfolio of $230.7 million and $244.1 million, respectively. Reported investments for June 30, 2025 includes three additional primary capital transactions, previously disclosed, with an initial aggregate value $11.8 million.
Operating expenses were $80.0 million in the first quarter of fiscal 2026, which included a recognized loss contingency accrual of $62.8 million, as compared to $(34.3) million in the first quarter of fiscal 2025, which included the release of a loss contingency accrual of $(55.0) million and a non-cash goodwill impairment of $3.4 million.
Excluding the non-cash goodwill impairment and the loss contingency accrual (release) in each period, as applicable, operating expenses declined 1% to $17.2 million in the first quarter of fiscal 2026 as compared to $17.3 million in the same period of fiscal 2025.
Entered into three primary capital transactions with funds managed by general partners during the fiscal 2026 first quarter. As a result of the transactions, the collateral for the Company's ExAlt loan portfolio is expected to increase by more than $11.7 million of interests in alternative assets.
Completed the asset sales of certain investments held by the Customer ExAlt Trusts, which has resulted in an aggregate of $38.1 million in gross proceeds, which has been used to pay down certain debt and provide working capital.
With the filing of the Quarterly Report on Form 10-Q for June 30, 2025, the Company will be current on its periodic reporting, demonstrating compliance with Nasdaq's reporting requirement within the extension period granted by the Nasdaq Hearings Panel.
On October 15, 2025, as part of the Company's plans to regain compliance with Nasdaq's continued listing requirements, Beneficient Board Chairman Thomas Hicks and interim CEO James Silk elected to convert an aggregate of $52.6 million of personally held BCH Preferred Series A-1 holdings into shares of the Company's Class A common stock. Additional details of the transaction are noted in the Company's Quarterly Report on Form 10-Q for June 30, 2025.
Loan Portfolio
As a result of executing on our business plan of providing financing for liquidity, or early investment exits, for alternative asset marketplace participants, Ben organically develops a balance sheet comprised largely of loans collateralized by a well- diversified alternative asset portfolio that is expected to grow as Ben successfully executes on its core business.
Ben's balance sheet strategy for ExAlt Loan origination is built on the theory of the portfolio endowment model for the fiduciary financings we make by utilizing our patent-pending computer implemented technologies branded as OptimumAlt. Our OptimumAlt endowment model balance sheet approach guides diversification of our fiduciary financings across seven asset classes of alternative assets, over 11 industry sectors in which alternative asset managers invest, and at least six countrywide exposures and multiple vintages of dates of investment into the private funds and companies.
As of June 30, 2025, Ben's loan portfolio was supported by a highly diversified alternative asset collateral portfolio providing diversification across approximately 200 private market funds and approximately 590 investments across various asset classes, industry sectors and geographies. This portfolio includes exposure to some of the most exciting, sought after private company names worldwide, such as the largest private space exploration company, an innovative software and payment systems provider, a venture capital firm investing in waste-to-energy and clean energy technologies, a technology company providing net zero solutions in the production of advanced biofuels, a designer and manufacturer of shaving products, a large online store for women's clothes and other fashionable accessories that has announced intentions to go public, a mobile banking services provider, and others.
Figure 1: Portfolio Diversification
Diversification Using Principal Loan Balance, Net of Allowance for Credit Losses
As of June 30, 2025, the charts below present the ExAlt Loan portfolio's relative exposure by certain characteristics (percentages determined by aggregate fiduciary ExAlt Loan portfolio principal balance net of allowance for credit losses, which includes the exposure to interests in certain of our former affiliates composing part of the Fiduciary Loan Portfolio).
As of June 30, 2025. The chart represents the characteristics of professionally managed funds and investments in the Collateral portfolio, which is comprised of a diverse portfolio of direct and indirect interests (through various investment vehicles, including, limited partnership interests and private and public equity and debt securities, which include our and our affiliates' or our former affiliates' securities), primarily in third-party, professionally managed private funds and investments. Loan balances used to calculate the percentages reported in the pie charts are loan balances, net of any allowance for credit losses, and as of June 30, 2025, the total allowance for credit losses was $352.7 million, for a total gross loan balance of $583.4 million and a loan balance net of allowance for credit losses of $230.7 million.
Business Segments: First Quarter Fiscal 2026
Ben Liquidity
Ben Liquidity offers simple, rapid and cost-effective liquidity products through the use of our proprietary financing and trust structure, or the "Customer ExAlt Trusts," which facilitate the exchange of a customer's alternative assets for consideration.
Ben Liquidity recognized $8.8 million of interest income for the fiscal first quarter, a decrease of 4.5% from the quarter ended March 31, 2025, primarily due to a higher percentage loans being placed on nonaccrual status, partially offset by the effects of compounding interest on the remaining loans.
Operating loss for the fiscal first quarter was $6.0 million, an improvement from an operating loss of $12.3 million for the quarter ended March 31, 2025. The increase in operating performance was due to lower intersegment credit losses in the current fiscal period as compared to the quarter ended March 31, 2025 due in part because of the disposition of certain investments during the period, which generated loan payments at Ben Liquidity sooner than had been estimated in the prior period calculation of the intersegment credit losses.
Ben Custody
Ben Custody provides full-service trust and custody administration services to the trustees of certain of the Customer ExAlt Trusts, which own the exchanged alternative assets following liquidity transactions in exchange for fees payable quarterly calculated as a percentage of assets in custody.
NAV of alternative assets and other securities held in custody by Ben Custody during the fiscal first quarter was $298.1 million as of June 30, 2025, compared to $338.2 million as of March 31, 2025. The decrease was driven by dispositions of certain alternative assets, distributions and unrealized losses on existing assets, principally related to adjustments to the relative share held in custody of the respective fund's NAV based on updated financial information received from the funds' investment manager or sponsor during the period or the fair value for investments deemed probable to be sold at an amount that differs from NAV, offset by $11.8 million of new originations.
Revenues applicable to Ben Custody were $4.2 million for the fiscal first quarter, compared to $5.4 million for the quarter ended March 31, 2025. The decrease was a result of lower NAV of alternative assets and other securities held in custody at the beginning of the period when such fees are calculated.
Operating income for the fiscal first quarter decreased to $3.1 million from $4.2 million for the quarter ended March 31, 2025. The decrease was primarily due to the decline in revenues applicable to this operating segment as described above and employee and professional services expense, offset by $0.5 million of intersegment credit losses on collateral comprised of interests in the GWG Wind Down Trust.
Adjusted operating income(1) for the fiscal first quarter was $3.1 million, compared to adjusted operating income(1) of $4.6 million for the quarter ended March 31, 2025. The decrease was due to the decline in revenues applicable to this operating segment as described above and removal, for purposes of calculating adjusted operating income(1), of $0.5 million of intersegment credit losses on collateral comprised of interests in the GWG Wind Down Trust.
Capital and Liquidity
As of June 30, 2025, the Company had cash and cash equivalents of $7.6 million and total debt of $108.4 million.
Distributions received from alternative assets and other securities held in custody totaled $3.7 million for the three months ended June 30, 2025, compared to $7.2 million for the same period of fiscal 2025. Additionally, during three months ended June 30, 2025, we received proceeds of $24.1 million from the disposition of certain investments in alternative assets.
Total investments (at fair value) of $263.8 million at June 30, 2025 supported Ben Liquidity's loan portfolio.
(1) Represents a non-GAAP financial measure. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations.
Consolidated Fiscal First Quarter Results
Table 1 below presents a summary of selected unaudited consolidated operating financial information.
Consolidated FiscalFirstQuarter Results($ in thousands, except share and per share amounts)
Fiscal1Q26June 30, 2025
Fiscal4Q25March 31, 2025
Fiscal1Q25June 30, 2024
Change % vs. Prior Quarter
GAAP Revenues
$
(12,623)
$
(30,969)
$
10,046
59.2%
Adjusted Revenues(1)
(12,622)
(30,963)
10,411
59.2%
GAAP Operating Income (Loss)
(92,648)
(45,295)
44,338
NM
Adjusted Operating Income (Loss)(1)
(25,438)
(42,945)
(4,725)
40.8%
Basic Class A EPS
$
(7.19)
$
12.11
NM
Diluted Class A EPS
$
(7.19)
$
0.17
NM
Segment Revenues attributable to Ben's Equity Holders(2)
13,058
14,253
16,235
(8.4)%
Adjusted Segment Revenues attributable to Ben's Equity Holders(1)(2)
13,058
14,253
16,242
(8.4)%
Segment Operating Income (Loss) attributable to Ben's Equity Holders
(76,436)
(16,662)
44,864
NM
Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders(1)(2)
$
(9,227)
$
(13,851)
$
(4,552)
33.4%
NM - Not meaningful.
(1) Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders and Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders are non-GAAP financial measures. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations.(2) Segment financial information attributable to Ben's equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), and adjusted operating income (loss)) that impacts Ben's Equity Holders. "Ben's Equity Holders" refers to the holders of Beneficient Class A and Class B common stock and Series B Preferred Stock as well as holders of interests in BCH, which represent noncontrolling interests. For a description of noncontrolling interests, see Item 2 of our Quarterly Report on Form 10-Q for the three months ended June 30, 2025, and Reconciliation of Business Segment Information Attributable to Ben's Equity Holders to Net Income Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determine the net income (loss) attributable to Ben's Equity Holders. See further information in table 5 and Non-GAAP Reconciliations.
Table 2 below presents a summary of selected unaudited consolidated balance sheet information.
Consolidated FiscalFirstQuarter Results($ in thousands)
Fiscal1Q26As ofJune 30, 2025
Fiscal4Q25As ofMarch 31, 2025
Change %
Investments, at Fair Value
$
263,769
$
291,371
(9.5)%
All Other Assets
57,723
50,490
14.3%
Goodwill and Intangible Assets, Net
13,014
13,014
—%
Total Assets
$
334,506
$
354,875
(5.7)%
Business Segment Information Attributable to Ben's Equity Holders(1)
Table 3 below presents unaudited segment revenues and segment operating income (loss) for business segments attributable to Ben's equity holders.
Segment Revenues Attributable to Ben's Equity Holders(1)($ in thousands)
Fiscal1Q26June 30, 2025
Fiscal4Q25March 31, 2025
Fiscal1Q25June 30, 2024
Change % vs. Prior Quarter
Ben Liquidity
$
8,837
$
8,459
$
10,849
4.5%
Ben Custody
4,183
5,396
5,382
(22.5)%
Corporate & Other
38
398
4
(90.5)%
Total Segment Revenues Attributable to Ben's Equity Holders(1)
$
13,058
$
14,253
$
16,235
(8.4)%
Segment Operating Income (Loss) Attributable to Ben's Equity Holders(1)($ in thousands)
Fiscal1Q26June 30, 2025
Fiscal4Q25March 31, 2025
Fiscal1Q25June 30, 2024
Change % vs. Prior Quarter
Ben Liquidity
$
(6,015)
$
(12,340)
$
(514)
51.3%
Ben Custody
3,128
4,165
1,287
(24.9)%
Total Segment Operating Income (Loss) Attributable to Ben's Equity Holders(1)
(73,549)
(8,487)
44,091
NM
$
(76,436)
$
(16,662)
$
44,864
NM
NM - Not meaningful.
(1) Segment financial information attributable to Ben's equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), and adjusted operating income (loss)) that impacts Ben's Equity Holders. "Ben's Equity Holders" refers to the holders of Beneficient Class A and Class B common stock and Series B Preferred Stock as well as holders of interests in BCH, which represent noncontrolling interests. For a description of noncontrolling interests, see Item 2 of our Quarterly Report on Form 10-Q for the three months ended June 30, 2025, and Reconciliation of Business Segment Information Attributable to Ben's Equity Holders to Net Income Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determine the net income (loss) attributable to Ben's Equity Holders. See further information in table 5 and Non-GAAP Reconciliations.
Adjusted Business Segment Information Attributable to Ben's Equity Holders(2)
Table 4 below presents unaudited adjusted segment revenue and adjusted segment operating income (loss) for business segments attributable to Ben's equity holders.
Adjusted Segment Revenues Attributable to Ben's Equity Holders(1)(2)($ in thousands)
Fiscal1Q26June 30, 2025
Fiscal4Q25March 31, 2025
Fiscal1Q25June 30, 2024
Change % vs. Prior Quarter
Ben Liquidity
$
8,837
$
8,459
$
10,849
4.5%
Ben Custody
4,183
5,396
5,382
(22.5)%
Corporate & Other
38
398
11
(90.5)%
Total Adjusted Segment Revenues Attributable to Ben's Equity Holders(1)(2)
$
13,058
$
14,253
$
16,242
(8.4)%
Adjusted Segment Operating Income (Loss) Attributable to Ben's Equity Holders(1)(2)($ in thousands)
Fiscal1Q26June 30, 2025
Fiscal4Q25March 31, 2025
Fiscal1Q25June 30, 2024
Change % vs. Prior Quarter
Ben Liquidity
$
(6,015)
$
(12,340)
$
(509)
51.3%
Ben Custody
3,128
4,632
4,416
(32.5)%
Corporate & Other
(6,340)
(6,143)
(8,459)
(3.2)%
Total Adjusted Segment Operating Income (Loss) Attributable to Ben's Equity Holders(1)(2)
$
(9,227)
$
(13,851)
$
(4,552)
33.4%
NM - Not meaningful.
(1) Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders and Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders are non-GAAP financial measures. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations.(2) Segment financial information attributable to Ben's equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), and adjusted operating income (loss)) that impacts Ben's Equity Holders. "Ben's Equity Holders" refers to the holders of Beneficient Class A and Class B common stock and Series B Preferred Stock as well as holders of interests in BCH, which represent noncontrolling interests. For a description of noncontrolling interests, see Item 2 of our Quarterly Report on Form 10-Q for the three months ended June 30, 2025, and Reconciliation of Business Segment Information Attributable to Ben's Equity Holders to Net Income Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determine the net income (loss) attributable to Ben's Equity Holders. See further information in table 5 and Non-GAAP Reconciliations.
Reconciliation of Business Segment Information Attributable to Ben's Equity Holders to Net Income (Loss) Attributable to Ben Common Shareholders
Table 5 below presents reconciliation of operating income (loss) by business segment attributable to Ben's Equity Holders to net income (loss) attributable to Ben common shareholders.
Reconciliation of Business Segments to Net Income (Loss) to Ben Common Shareholders($ in thousands)
Fiscal1Q26June 30, 2025
Fiscal4Q25March 31, 2025
Fiscal1Q25June 30, 2024
Ben Liquidity
$
(6,015)
$
(12,340)
$
(514)
Ben Custody
3,128
4,165
1,287
Corporate & Other
(73,549)
(8,487)
44,091
Income tax expense (allocable to Ben and BCH equity holders)
—
661
