Highlights of the quarter include:
Resolved GWG Holdings, Inc. litigation and regained Nasdaq compliance
Generated $50 million in gross proceeds from asset sales
Fully paid off HH-BDH Credit Agreement principal balance (excluding $1.7 million for deferred interest and fees)
Strengthened balance sheet and collateral base
Commenting on the fiscal 2026 third quarter results, interim Chief Executive Officer James Silk said: "Our third-quarter results demonstrate that we have stabilized, focused and strengthened our business. We are especially pleased to have reached a final, court-approved settlement related to the GWG Holdings litigation, regained full compliance with Nasdaq's listing requirements, and appointed Peter T. Cangany, Jr. as our new Chairman. These and other milestones represent a turning point which we believe will allow Ben to focus more fully on driving growth and enhancing the value of our liquidity solutions.
"Throughout this process, we have remained disciplined in capital management and operational efficiency. Continued asset sales and equity redemptions generated $50 million in gross proceeds this year, allowing us to systematically reduce debt, including the HH-BDH Credit Agreement loans. With a stronger collateral base and reduced leverage, we are well positioned to serve customers and deliver long-term shareholder value."
Third Quarter Fiscal 2026 and Recent Highlights (for the quarter ended December 31, 2025 or as noted):
Reported investments with a fair value of $205.8 million, a decrease from $291.4 million at the end of our prior fiscal year, which served as collateral for Ben Liquidity's net loan portfolio of $187.5 million and $244.1 million, respectively.
Operating expenses increased 5.7% to $14.7 million in the third quarter of fiscal 2026, which included interest associated with a recognized loss contingency accrual of $1.7 million, as compared to $13.9 million in the third quarter of fiscal 2025. On a year-to-date basis, operating expenses for fiscal 2026 were $109.9 million, which included the accrual of a loss contingency of $62.8 million and additional interest expense on the loss contingency accrual of $3.4 million, as compared to $1.9 million in the same period of fiscal 2025, which included the release of a loss contingency accrual of $55.0 million and a non-cash goodwill impairment of $3.7 million.
Excluding the non-cash goodwill impairment and the loss contingency accrual (release) along with associated interest expense on the loss contingency in each period, as applicable, operating expenses declined 6.5% to $13.0 million in the third quarter of fiscal 2026 as compared to $13.9 million in the same period of fiscal 2025. On a year-to-date basis, excluding the non-cash goodwill impairment, the loss contingency accrual (release), and associated interest expense on the loss contingency accrual in each period, as applicable, operating expenses were $43.7 million for the first three quarters of fiscal 2026 as compared to $53.2 million for the first three quarters of fiscal 2025.
Further completed asset sales or equity redemptions of certain investments held by the Customer ExAlt Trusts, resulting in an aggregate of $50.2 million in gross proceeds on a year-to-date basis, which have been used to pay down certain debt, including the pay-off of the outstanding principal balance on the HH-BDH Credit Agreement in January 2026, and provide working capital. The Company still owes $1.7 million for interest and fees under the HH-BDH Credit Agreement, which the parties have agreed to defer.
Effective December 15, 2025, the Company appointed Peter T. Cangany, Jr. as Chairman of the Board.
Entered into an additional primary capital transaction with a fund managed by a general partner on December 31, 2025, which will increase the collateral for the Company's ExAlt loan portfolio by more than $3 million of interests in alternative assets.
Announced on January 5, 2026, that we were notified by Nasdaq that the Company had regained compliance with the minimum bid price requirement and the continued listing requirements for warrants. As a result, the Company was in full compliance with the Nasdaq Capital Market's listing requirements.
Subsequent to December 31, 2025, the United States District Court for the Northern District of Texas approved the previously disclosed agreement to settle all claims pending in that jurisdiction under the previously disclosed lawsuits relating to GWG Holdings, Inc. against the Company, its subsidiaries, and each of their current and former directors and officers. With this approval, the settlement is final in accordance with the terms of the settlement agreement.
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's balance sheet is primarily comprised 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 based on an endowment-style portfolio 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 December 31, 2025, Ben's loan portfolio was supported by a highly diversified alternative asset collateral portfolio providing diversification across approximately 150 private market funds and approximately 430 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, including:
A leading Latin American pharmacy, health, and beauty retailer with an integrated physical and digital store network.
A technology-enabled reforestation company using drones, seed science, and services to restore forests at scale following wildfires and other disturbances.
A mobile banking services provider.
A privately owned express intercity passenger rail system operator and owner of associated real estate.
A developer of an integrated e-commerce and fulfillment platform to sell wine direct-to-consumers.
Figure 1: Portfolio Diversification
Diversification Using Principal Loan Balance, Net of Allowance for Credit Losses
As of December 31, 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 December 31, 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 December 31, 2025, the total allowance for credit losses was $391 million, for a total gross loan balance of $578 million and a loan balance net of allowance for credit losses of $187 million.
Business Segments: Third 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 $8.2 million of interest income for the fiscal third quarter, a decrease of 3.6% from the quarter ended September 30, 2025, primarily due to a higher percentage loans being placed on nonaccrual status and loan repayments primarily through asset sales proceeds, partially offset by the effects of compounding interest on the remaining loans.
Operating loss for the fiscal third quarter was $29.2 million, a decline from an operating loss of $0.8 million for the quarter ended September 30, 2025. The decrease in operating performance was due to higher intersegment credit losses in the current fiscal period as compared to the quarter ended September 30, 2025 due to larger declines in NAV arising from adjustments to the relative share of the respective fund's NAV based on updated financial information received from the funds' investment manager or sponsor during the period and asset sales transacting generally at lower prices as a percentage of NAV during the quarter than in prior quarters, which resulted in lower relative loan paydowns.
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 third quarter was $230.2 million as of December 31, 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 $14.8 million of new originations.
Revenues applicable to Ben Custody were $2.9 million for the fiscal third quarter, compared to $3.1 million for the quarter ended September 30, 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 along with certain upfront intersegment fees that are amortized into revenues over time being fully recognized in a prior period.
Operating income for the fiscal third quarter decreased to $2.0 million from $2.3 million for the quarter ended September 30, 2025. The decrease was largely attributable to the decline in revenues applicable to this operating segment as described above and slightly higher employee compensation and benefits expense.
Business Segments: Through Nine Months Ended Fiscal 2026
Ben Liquidity
Ben Liquidity recognized $25.5 million of interest income for the nine months ended December 31, 2025, down 25.2% compared to the prior year period, primarily driven by lower loans, net of the allowance for credit losses, resulting from higher levels of non-accrual loans and loan prepayments, partially offset by new loans originated.
Operating loss was $36.0 million for the nine months ended December 31, 2025, declining from operating loss of $0.5 million in the prior year period. The increase in the operating loss is partially a result of the lower revenues period over period plus an increase in intersegment credit losses in the current fiscal year as compared to the same period in the prior year.
Ben Custody
Ben Custody revenues were $10.2 million for the nine months ended December 31, 2025, down 36.9%, compared to the prior year period, largely the result of lower NAV of alternative assets and other securities held in custody along with certain upfront intersegment fees that are amortized into revenues over time being fully recognized in a prior period.
Operating income was $7.4 million for the nine months ended December 31, 2025 compared to operating income of $9.1 million in the prior year period. While revenues declined in the current year period as compared to the same period in the prior year, operating expenses declined by $4.3 million reflecting non-cash goodwill impairment in the prior year period of $3.4 million and intersegment provision for credit loss of $1.3 million. No such impairment or credit losses were recorded in the current year period.
Adjusted operating income(1) for the nine months ended December 31, 2025 was $7.4 million, compared to adjusted operating income(1) of $13.9 million in the prior year period with the decrease in adjusted operating income(1) driven by lower revenue related to lower NAV of alternative assets and other securities held in custody partially offset by slightly higher operating expenses during the current fiscal year period.
Capital and Liquidity
As of December 31, 2025, the Company had cash and cash equivalents of $7.9 million and total debt of $100.3 million.
Distributions received from alternative assets and other securities held in custody totaled $11.3 million for the nine months ended December 31, 2025, compared to $19.3 million for the same period of fiscal 2025. Additionally, during nine months ended December 31, 2025, we received proceeds of $50.2 million from the disposition of certain investments in alternative assets.
Total investments (at fair value) of $205.8 million at December 31, 2025 supported Ben Liquidity's loan portfolio.
(1) Represents a non-GAAP financial measure. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations.
Consolidated Fiscal Third Quarter Results
Table 1 below presents a summary of selected unaudited consolidated operating financial information.
Consolidated Fiscal Third Quarter Results($ in thousands, except share and per share amounts)
Fiscal 3Q26December 31,2025
Fiscal 2Q26September 30,2025
Fiscal 3Q25December 31,2024
Change % vs. Prior Quarter
YTD Fiscal 2026
YTD Fiscal 2025
Change % vs. Prior YTD
GAAP Revenues
$
18,670
$
(2,763
)
$
4,419
NM
$
3,284
$
23,026
(85.7
)%
Adjusted Revenues(1)
(25,393
)
(2,759
)
4,427
NM
(40,774
)
23,572
NM
GAAP Operating Income (Loss)
3,944
(17,864
)
(9,513
)
NM
(106,568
)
21,110
NM
Adjusted Operating Income (Loss)(1)
(36,764
)
(12,588
)
(7,301
)
NM
(74,533
)
(18,638
)
NM
Basic Class A EPS(3)
$
1.19
$
(2.96
)
$
(10.60
)
NM
$
(10.30
)
$
82.41
NM
Diluted Class A EPS(3)
$
0.04
$
(2.96
)
$
(10.60
)
NM
$
(10.30
)
$
0.94
NM
Segment Revenues attributable to Ben's Equity Holders(2)
55,084
11,420
16,621
NM
79,562
49,482
60.8
%
Adjusted Segment Revenues attributable to Ben's Equity Holders(1)(2)
11,021
11,420
16,621
(3.5
)%
35,499
49,489
(28.3
)%
Segment Operating Income (Loss) attributable to Ben's Equity Holders
8,656
(8,084
)
(8,281
)
NM
(75,864
)
27,391
NM
Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders(1)(2)
$
(32,052
)
$
(2,812
)
$
(4,737
)
NM
$
(43,834
)
$
(11,551
)
NM
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 nine months ended December 31, 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.
(1) Periods presented have been adjusted to reflect the 1-for-8 reverse stock split on December 15, 2025.
Table 2 below presents a summary of selected unaudited consolidated balance sheet information.
Consolidated Fiscal Third Quarter Results($ in thousands)
Fiscal 3Q26As ofDecember 31,2025
Fiscal 4Q25As ofMarch 31,2025
Change %
Investments, at Fair Value
$
205,776
$
291,371
(29.4
)%
All Other Assets
119,070
50,490
135.8
%
Goodwill and Intangible Assets, Net
13,014
13,014
—
%
Total Assets
$
337,860
$
354,875
(4.8
)%
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)
Fiscal 3Q26December 31,2025
Fiscal 2Q26September 30,2025
Fiscal 3Q25December 31,2024
Change % vs. Prior Quarter
YTD Fiscal 2026
YTD Fiscal 2025
Change % vs. Prior YTD
Ben Liquidity
$
8,189
$
8,497
$
11,297
(3.6
)%
$
25,521
$
34,124
(25.2
)%
Ben Custody
2,944
3,081
5,410
(4.4
)%
10,208
16,178
(36.9
)%
Corporate & Other
43,951
(158
)
(86
)
NM
43,833
(820
)
NM
Total Segment Revenues Attributable to Ben's Equity Holders(1)
$
55,084
$
11,420
$
16,621
NM
$
79,562
$
49,482
60.8
%
Segment Operating Income (Loss) Attributable to Ben's Equity Holders(1)($ in thousands)
Fiscal 3Q26December 31,2025
Fiscal 2Q26September 30,2025
Fiscal 3Q25December 31,2024
Change % vs. Prior Quarter
YTD Fiscal 2026
YTD Fiscal 2025
Change % vs. Prior YTD
Ben Liquidity
$
(29,167
)
$
(821
)
$
(2,853
)
NM
$
(36,005
)
$
(462
)
NM
Ben Custody
1,989
2,292
3,507
(13.2
)%
7,409
9,123
(18.8
)%
Corporate & Other
35,834
(9,555
)
(8,935
)
NM
(47,268
)
18,730
NM
Total Segment Operating Income (Loss) Attributable to Ben's Equity Holders(1)
$
8,656
$
(8,084
)
$
(8,281
)
NM
$
(75,864
)
$
27,391
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 nine months ended December 31, 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)
Fiscal 3Q26December 31,2025
Fiscal 2Q26September 30,2025
Fiscal 3Q25December 31,2024
Change % vs. Prior Quarter
YTD Fiscal 2026
YTD Fiscal 2025
Change % vs. Prior YTD
Ben Liquidity
$
8,189
$
8,497
$
11,297
(3.6
)%
$
25,521
$
34,124
(25.2
)%
Ben Custody
2,944
3,081
5,410
(4.4
)%
10,208
16,178
(36.9
)%
Corporate & Other
(112
)
(158
)
(86
)
29.1
%
(230
)
(813
)
71.7
%
Total Adjusted Segment Revenues Attributable to Ben's Equity Holders(1)(2)
$
11,021
$
11,420
$
16,621
(3.5
)%
$
35,499
$
49,489
(28.3
)%
Adjusted Segment Operating Income (Loss) Attributable to Ben's Equity Holders(1)(2)($ in thousands)
Fiscal 3Q26December 31,2025
Fiscal 2Q26September 30,2025
Fiscal 3Q25December 31,2024
Change % vs. Prior Quarter
YTD Fiscal 2026
YTD Fiscal 2025
Change % vs. Prior YTD
Ben Liquidity
$
(29,167
)
$
(821
)
$
(2,853
)
NM
$
(36,005
)
$
(457
)
NM
Ben Custody
1,989
2,292
4,847
(13.2
)%
7,409
13,890
(46.7
)%
Corporate & Other
(4,874
)
(4,283
)
(6,731
)
(13.8
)%
(15,238
)
(24,984
)
39.0
%
Total Adjusted Segment Operating Income (Loss) Attributable to Ben's Equity Holders(1)(2)
$
(32,052
)
$
(2,812
)
$
(4,737
)
NM
$
(43,834
)
$
(11,551
)
NM
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 nine months ended December 31, 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)
Fiscal 3Q26December 31,2025
Fiscal 2Q26September 30,2025
Fiscal 3Q25December 31,2024
YTD Fiscal 2026
YTD Fiscal 2025
Ben Liquidity
$
(29,167
)
$
(821
)
$
(2,853
)
$
(36,005
)
$
(462
)
Ben Custody
1,989
2,292
3,507
7,409
9,123
Corporate & Other
35,834
(9,555
)
(8,935
)
(47,268
)
18,730
Gain on liability resolution
1,996
—
—
1,996
23,462
Income tax expense (allocable to Ben and BCH equity holders)
—
(43
)
(713
)
(43
)
(741
)
Net loss attributable to noncontrolling interests - Ben
14,026
9,191
4,844
39,201
15,098
Noncontrolling interest guaranteed payment
(4,765
)
(4,693
)
(4,489
)
(14,082
)
(13,268
)
Net income (loss) attributable to Ben's common shareholders
$
19,913
$
(3,629
)
$
(8,639
)
$
(48,792
)
$
51,942
Investor Webcast
Beneficient will host a webcast and conference call to review its third quarter financial results on February 17, 2026, at 5:30 p.m. Eastern Standard Time. The webcast will be available via live webcast from the Investor Relations section of the Company's website at https://shareholders.trustben.com under Events.
Replay
The webcast will be archived on the Company's website in the investor relations section for replay for at least one year.
About Beneficient
Beneficient (NASDAQ:BENF), Ben, for short, is on a mission to democratize the global alternative asset investment market by providing traditionally underserved investors − mid-to-high net worth individuals, small-to-midsized institutions and General Partners seeking exit options, anchor commitments and valued-added services for their funds− with solutions that could help them unlock the value in their alternative assets.
Its subsidiary, Beneficient Fiduciary Financial, L.L.C., received its charter under the State of Kansas' Technology-Enabled Fiduciary Financial Institution (TEFFI) Act and is subject to regulatory oversight by the Office of the State Bank Commissioner.
For more information, visit www.trustben.com or follow us on LinkedIn.
ContactsInvestors:Matt Kreps/214-597-8200/[email protected]Michael Wetherington/214-284-1199/[email protected][email protected]
Not an Offer of Securities
The information in this communication is for informational purposes only and shall not constitute, or form a part of, an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities. The securities that are the subject of the Transactions have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the ...
