Burford Capital Ltd

Previous wording

The following discussion and analysis of the financial condition and results of operations is intended to convey management’s perspective regarding the Group’s operational and financial performance for the three and six months ended June 30, 2025 and 2024, respectively. It should be read in conjunction with the unaudited condensed consolidated financial statements and related notes included elsewhere in this Form 10-Q and the audited consolidated financial statements and related notes included in the 2024 Form 10-K. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed below. Factors that could cause or contribute to such differences include those identified below and those discussed under “Risk Factors” in the 2024 Form 10-K.

Current wording

The following discussion and analysis of the financial condition and results of operations is intended to convey management’s perspective regarding the Group’s operational and financial performance for the three and nine months ended September 30, 2025 and 2024, respectively. It should be read in conjunction with the unaudited condensed consolidated financial statements and related notes included elsewhere in this Form 10-Q and the audited consolidated financial statements and related notes included in the 2024 Form 10-K. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those discussed below. Factors that could cause or contribute to such differences include those identified below and those discussed under “Risk Factors” in the 2024 Form 10-K.

Previous wording

We are the world’s largest dedicated provider of capital, based on portfolio size, against the underlying value of litigation and legal assets, which we colloquially call legal finance. We are a global firm that serves the industry of law by providing an array of financial products and services. Our largest business is providing capital to clients engaged in ongoing legal disputes, which they can use to pay the legal fees and expenses associated with disputes, to monetize the expected future value of disputes or to do both. Our focus is on large, complex disputes, not on small-scale litigation typically pursued by consumers or small businesses.

Current wording

We are the world’s largest dedicated provider of capital, based on portfolio size, against the underlying value of litigation and legal assets, a business that we colloquially call legal finance. We are a global firm that serves the industry of law by providing an array of financial products and services. Our largest business is providing capital to clients engaged in ongoing legal disputes, capital that they can use to pay the legal fees and expenses associated with those disputes, to monetize the expected future value of those disputes or to do both. Our focus is on large, complex disputes, not on small-scale litigation typically pursued by consumers or small businesses.

Previous wording

Our portfolio returns are driven by judicial activity, and we believe these returns are generally uncorrelated to market conditions or the performance of the overall economy. The most direct impact of economic and market conditions on our business relates to our cost of debt and ease of access to corporate debt capital markets, as well as movements in market rates that cause adjustments to the discount rates applied in the fair value of our assets and impact our quarterly revenue recognition in accordance with US GAAP. We believe that we maintain access to corporate debt capital markets, supported by credit rating upgrades from Moody’s in the second quarter of 2025 and from S&P in the third quarter of 2024 and as demonstrated by a successful debt offering in July 2025. Overall, we believe our business model is particularly resilient to economic and market cycles due to the nature of the assets that drive our revenues and cash flow.

Current wording

Our portfolio returns are driven by judicial activity, and we believe these returns are generally uncorrelated to market conditions or the performance of the overall economy. The most direct impact of economic and market conditions on our business relates to our cost of debt and ease of access to corporate debt capital markets, as well as movements in market rates that cause adjustments to the discount rates applied in the fair value of our assets and that impact our quarterly revenue recognition in accordance with US GAAP. We believe that we maintain access to corporate debt capital markets, supported by credit rating upgrades from Moody’s in the second quarter of 2025 and from S&P in the third quarter of 2024 and as demonstrated by a successful debt offering in July 2025. Overall, we believe our business model is particularly resilient to economic and market cycles due to the nature of the assets that drive our revenues and cash flow.

Previous wording

More broadly, economic conditions can have an impact on the amount and type of litigation that we may consider financing. For example, increased rates of corporate insolvencies can lead to opportunities to finance litigation relating to or arising out of insolvencies and bankruptcies; higher interest rates or other forms of economic stress can cause businesses to act illegally (such as to conspire to fix prices) leading to financeable claims; and pressure from shareholders and markets can lead to the commission of securities fraud and other similar acts, again leading to financeable claims.

Current wording

More broadly, economic conditions can have an impact on the amount and type of litigation that we may consider financing. For example, increased rates of corporate insolvencies can lead to opportunities to finance litigation relating to or arising out of insolvencies and bankruptcies; higher interest rates or other forms of economic stress can cause businesses to act illegally (such as to conspire to fix prices) leading to financeable claims; and pressure from shareholders and markets can lead to the commission of securities fraud and other similar acts, again resulting in financeable claims.

Previous wording

During the three and six months ended June 30, 2025, the rising potential for global trade disruption through the implementation of tariffs drove significant volatility in global financial markets. We do not believe that a broad elevation in global tariff rates would have a significant impact on the performance of our legal finance portfolio or our financial results. While the economic impact of trade tariffs is uncertain at this point, tighter financial conditions and a weakening of gross domestic product would typically cause the incidence of corporate disputes and associated litigation to increase, though it is usual for this to occur with a lag.

Current wording

During the three and nine months ended September 30, 2025, the rising potential for global trade disruption through the implementation of tariffs drove significant volatility in global financial markets. We do not believe that a broad elevation in global tariff rates would have a significant impact on the performance of our legal finance portfolio or our financial results. While the economic impact of trade tariffs is uncertain at this point, tighter financial conditions and a weakening of gross domestic product would typically cause the incidence of corporate disputes and associated litigation to increase, although it is usual for this to occur with a lag.

Previous wording

Court systems and other forms of adjudication have returned to functionality in the aftermath of the Covid-19 pandemic. In general, court activity has continued to work through the backlog caused by the Covid-19 pandemic and, during the three and six months ended June 30, 2025, we have observed continuing portfolio activity. Nevertheless, some court systems continue to face backlogs, delaying adjudication. Inevitably, some of our matters (and thus our cash realizations from them) in jurisdictions impacted by court backlogs have been slowed by these dynamics. We are often protected on duration risk, however, as many of our assets have time-based terms that increase our absolute returns as time passes, we consider delays to be deferral of income rather than its permanent diminution. We have not seen the discontinuance of any matters. Of our concluded matters since June 2021, we have observed a higher incidence of pre-adjudication settlements as a proportion of aggregate realizations in comparison to the period from our inception to June 2021. We do not yet know whether this is an effect of the Covid-19 pandemic or a lasting trend.

Current wording

Court systems and other forms of adjudication have returned to functionality in the aftermath of the Covid-19 pandemic. In general, court activity has continued to work through the backlog caused by the Covid-19 pandemic and, during the three and nine months ended September 30, 2025, we have observed continuing portfolio activity. Nevertheless, some court systems continue to face backlogs, delaying adjudication. Inevitably, some of our matters (and thus our cash realizations from them) in jurisdictions impacted by court backlogs have been slowed by these dynamics. We are often protected on duration risk, however, as many of our assets have time-based terms that increase our absolute returns as time passes, we consider delays to be deferral of income rather than its permanent diminution. We have not seen the discontinuance of any matters. Of our concluded matters since June 2021, we have observed a higher incidence of pre-adjudication settlements as a proportion of aggregate realizations in comparison to the period from our inception to June 2021. We do not yet know whether this is an effect of the Covid-19 pandemic or a lasting trend.

Previous wording

We report our unaudited condensed consolidated financial statements as of and for the three and six months ended June 30, 2025 and comparative periods contained in this Form 10-Q in accordance with US GAAP. Our unaudited condensed consolidated financial statements are presented in US dollars.

Current wording

We report our unaudited condensed consolidated financial statements as of and for the three and nine months ended September 30, 2025 and comparative periods contained in this Form 10-Q in accordance with US GAAP. Our unaudited condensed consolidated financial statements are presented in US dollars.

Previous wording

Management and Other Services – is presented on a Burford-only basis. We refer to our segment reporting in the aggregate as “Total segments”. We have introduced more prominent segment reporting in our disclosures in the 2024 Form 10-K, as we transitioned to reporting as a US domestic issuer. Disclosures labeled as “Total segments (Burford-only)” in this Form 10-Q are synonymous with similar disclosures labeled as “Burford-only” in prior reporting periods.

Current wording

Additionally, we believe it is useful to provide a view of Burford as a stand-alone business (i.e., eliminating the impact of these private funds) by furnishing information on a non-GAAP basis that eliminates the effect of this consolidation. We refer to this basis of presentation as “Burford-only”. Our segment reporting, which conveys the performance of our business across two reportable segments – (i) Principal Finance and (ii) Asset Management and Other Services – is presented on a Burford-only basis. We refer to our segment reporting in the aggregate as “Total segments”. We have introduced more prominent segment reporting in our disclosures in the 2024 Form 10-K, as we transitioned to reporting as a US domestic issuer. Disclosures labeled as “Total segments (Burford-only)” in this Form 10-Q are synonymous with similar disclosures labeled as “Burford-only” in prior reporting periods.

Previous wording

Set forth below is a discussion of our unaudited condensed consolidated results of operations for the three and six months ended June 30, 2025 and 2024 and our unaudited condensed consolidated financial condition as of June 30, 2025 and December 31, 2024, in each case, on a consolidated basis, unless otherwise noted.

Current wording

Set forth below is a discussion of our unaudited condensed consolidated results of operations for the three and nine months ended September 30, 2025 and 2024 and our unaudited condensed consolidated financial condition as of September 30, 2025 and December 31, 2024, in each case, on a consolidated basis, unless otherwise noted.

Previous wording

In this section, any references to 2025 refer to the three or six months ended June 30, 2025 and any references to 2024 refer to the three or six months ended June 30, 2024.

Current wording

In this section, any references to 2025 refers to the three or nine months ended September 30, 2025 and any references to 2024 refers to the three or nine months ended September 30, 2024.

Previous wording

Total revenues increased 20% for the three months ended June 30, 2025, primarily due to an increase in capital provision income, arising from higher fair value adjustments. The increase in total revenues was partially offset by an increase in operating expenses primarily due to increases in share-based and deferred compensation and case-related expenditures ineligible for inclusion in asset cost. The net result was $88.3 million in net income attributable to Burford Capital Limited shareholders for the three months ended June 30, 2025, as compared to net income of $53.7 million for the three months ended June 30, 2024.

Current wording

Total revenues decreased 72% for the three months ended September 30, 2025, primarily due to a decrease in capital provision income, arising from lower fair value adjustments. The decrease in total revenues was partially offset by a decrease in operating expenses, primarily due to lower fair value driven compensation-related accruals, partially offset by higher share-based and deferred compensation costs and higher case-related expenditures ineligible for inclusion in asset cost. The net result was $19.2 million in net loss attributable to Burford Capital Limited shareholders for the three months ended September 30, 2025, as compared to net income of $135.6 million for the three months ended September 30, 2024.

Previous wording

Total revenues increased 52% for the six months ended June 30, 2025, primarily due to an increase in capital provision income, arising from higher fair value adjustments. The increase in total revenues was partially offset by an increase in operating expenses primarily due to increases in case-related expenditures ineligible for inclusion in asset cost, in share-based and deferred compensation and in compensation-related accruals. The net result was $119.2 million in net income attributable to Burford Capital Limited shareholders for the six months ended June 30, 2025, as compared to net income of $23.8 million for the six months ended June 30, 2024.

Current wording

Total revenues decreased 16% for the nine months ended September 30, 2025, primarily due to a decrease in capital provision income, arising from lower net realized gains, while operating expenses increased, primarily due to increases in share-based and deferred compensation costs and in case-related expenditures ineligible for inclusion in asset cost. The net result was $100.1 million in net income attributable to Burford Capital Limited shareholders for the nine months ended September 30, 2025, as compared to net income of $159.5 million for the nine months ended September 30, 2024.

Previous wording

For the three months ended June 30, 2025, net realized gains were $40.3 million, comprising $53.1 million of gross realized gains, offset by gross realized losses of $12.8 million. For the three months ended June 30, 2024, net realized gains were $117.5 million, comprising $128.8 million of gross realized gains, offset by gross realized losses of $11.3 million. While there was more case activity in 2025 as compared to 2024, we did not have a single large realized gain in 2025 of the size we experienced in 2024 which thus impacted our total realized gains. Overall, net realized gains resulted from $90.1 million in realizations for the three months ended June 30, 2025, as compared to $191.9 million in realizations for the three months ended June 30, 2024.

Current wording

For the three months ended September 30, 2025, net realized gains were $70.8 million, comprising $95.8 million of gross realized gains, offset by gross realized losses of $25.0 million. For the three months ended September 30, 2024, net realized gains were $86.9 million, comprising $92.2 million of gross realized gains, offset by gross realized losses of $5.3 million. While there was more case activity in 2025 as compared to 2024, we did not have a single large realized gain in 2025 of the size we experienced in 2024, which thus impacted our net realized gains. Overall, net realized gains resulted from $139.4 million in realizations for the three months ended September 30, 2025, as compared to $254.2 million in realizations for the three months ended September 30, 2024.

Previous wording

Fair value adjustments, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses), are affected by a number of factors, including changes in discount rate, duration and litigation risk premium, the reversal of previously recognized unrealized gains/(losses) upon conclusion of a matter and its transfer to realized gains/(losses), and actual performance of matters as they pass through milestones. All of those factors contributed to the unrealized gain of $170.9 million for the three months ended June 30, 2025 as compared to the unrealized gain of $39.1 million for the three months ended June 30, 2024, with the passage of time and the Turnover Order (as defined below) having the largest impacts.

Current wording

Fair value adjustments, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses), are affected by a number of factors, including changes in discount rate, duration and litigation risk premium, the reversal of previously recognized unrealized gains/(losses) upon conclusion of a matter and its transfer to realized gains/(losses), and actual performance of matters as they pass through milestones. All of those factors contributed to the unrealized gain of $2.9 million for the three months ended September 30, 2025 as compared to the unrealized gain of $179.8 million for the three months ended September 30, 2024, with the relative movement in discount rates and passage of time having the largest impacts on the change period over period. No single asset had a significant impact on the results relating to other input changes.

Previous wording

As part of our fair value methodology, we discount the expected future cash flows. If discount rates had remained unchanged from March 31, 2025, applying those same rates to the portfolio at June 30, 2025 fair value would have been approximately $34.3 million lower than as reported. The weighted average discount rate across the portfolio decreased to 6.5% as of June 30, 2025, from 6.7% as of March 31, 2025, and interest sensitivities of the portfolio to assumed basis point changes in rates at each period end are disclosed in note 11 (Fair value of assets and liabilities) to our unaudited condensed consolidated financial statements contained in this Form 10-Q. Fair value is also impacted by changes in the adjusted risk premium, which was slightly up at 31.0% as of June 30, 2025, from 30.9% as of March 31, 2025. The impact of the addition of newly acquired or originated capital provision assets during the period (which generally have higher risk premiums at the start of the capital provision asset’s life) was offset by net favorable developments across the rest of the portfolio.

Current wording

As part of our fair value methodology, we discount the expected future cash flows. If discount rates had remained unchanged from June 30, 2025, applying those same rates to the portfolio at September 30, 2025, fair value would have been approximately $32.6 million lower than as reported. The weighted average discount rate across the portfolio decreased to 6.4% as of September 30, 2025, from 6.5% as of June 30, 2025, and interest sensitivities of the portfolio to assumed basis point changes in rates at each period end are disclosed in note 11 (Fair value of assets and liabilities) to our unaudited condensed consolidated financial statements contained in this Form 10-Q. Fair value is also impacted by changes in the adjusted risk premium, which was slightly up at 31.3% as of September 30, 2025, from 31.0% as of June 30, 2025. The impact of the addition of newly acquired or originated capital provision assets during the period (which generally have higher risk premiums at the start of the capital provision asset’s life) was offset by net favorable developments across the rest of the portfolio.

Previous wording

For the six months ended June 30, 2025, net realized gains were $107.9 million, comprising $136.9 million of gross realized gains, offset by gross realized losses of $29.0 million. For the six months ended June 30, 2024, net realized gains were $175.3 million, comprising $202.1 million of gross realized gains, offset by gross realized losses of $26.8 million. While there was more case activity in 2025 as compared to 2024, we did not have a single large realized gain in 2025 of the size we experienced in 2024 which thus impacted our total realized gains. Overall, net realized gains resulted from $378.9 million in realizations for the six months ended June 30, 2025, as compared to $304.9 million in realizations for the six months ended June 30, 2024.

Current wording

For the nine months ended September 30, 2025, net realized gains were $178.7 million, comprising $232.0 million of gross realized gains, offset by gross realized losses of $53.3 million. For the nine months ended September 30, 2024, net realized gains were $262.3 million, comprising $293.5 million of gross realized gains, offset by gross realized losses of $31.2 million. While there was more case activity in 2025 as compared to 2024, we had two large realized gains in 2024 that we did not experience in 2025, which thus impacted our net realized gains. Overall, net realized gains resulted from $518.3 million in realizations for the nine months ended September 30, 2025, as compared to $559.0 million in realizations for the nine months ended September 30, 2024.

Previous wording

Fair value adjustments, net of previously recognized unrealized gains/(losses) transferred to realized gains, are affected by a number of factors, including changes in discount rate, duration and litigation risk premium, the reversal of previously recognized unrealized gains/(losses) upon conclusion of a matter and its transfer to realized gains/(losses), and actual performance of matters as they pass through milestones. All of those factors contributed to the unrealized gain of $228.8 million for the six months ended June 30, 2025 as compared to the unrealized gain of $25.4 million for the six months ended June 30, 2024, with the passage of time and the Turnover Order (as defined below) having the largest impacts.

Current wording

Fair value adjustments, net of previously recognized unrealized gains/(losses) transferred to realized gains, are affected by a number of factors, including changes in discount rate, duration and litigation risk premium, the reversal of previously recognized unrealized gains/(losses) upon conclusion of a matter and its transfer to realized gains/(losses), and actual performance of matters as they pass through milestones. All of those factors contributed to the unrealized gain of $231.8 million for the nine months ended September 30, 2025 as compared to the unrealized gain of $205.2 million for the nine months ended September 30, 2024, with the Turnover Order (as defined below) having the largest impact.

Previous wording

As part of our fair value methodology, we discount the expected future cash flows. If discount rates had remained unchanged from December 31, 2024, applying those same rates to the portfolio at June 30, 2025 fair value would have been approximately $67.1 million lower than as reported. The weighted average discount rate across the portfolio decreased to 6.5% as of June 30, 2025, from 6.9% as of December 31, 2024, and interest sensitivities of the portfolio to assumed basis point changes in rates at each period end are disclosed in note 11 (Fair value of assets and liabilities) to our unaudited condensed consolidated financial statements contained in this Form 10-Q. Fair value is also impacted by changes in the adjusted risk premium, which was down at 31.0% as of June 30, 2025, from 31.4% as of December 31, 2024. The impact of the addition of newly acquired or originated capital provision assets during the period (which generally have higher risk premiums at the start of the capital provision asset’s life) was offset by net favorable developments across the rest of the portfolio.

Current wording

As part of our fair value methodology, we discount the expected future cash flows. If discount rates had remained unchanged from December 31, 2024, applying those same rates to the portfolio at September 30, 2025, fair value would have been approximately $99.8 million lower than as reported. The weighted average discount rate across the portfolio decreased to 6.4% as of September 30, 2025, from 6.9% as of December 31, 2024, and interest sensitivities of the portfolio to assumed basis point changes in rates at each period end are disclosed in note 11 (Fair value of assets and liabilities) to our unaudited condensed consolidated financial statements contained in this Form 10-Q. Fair value is also impacted by changes in the adjusted risk premium, which was slightly down at 31.3% as of September 30, 2025, from 31.4% as of December 31, 2024. The impact of the addition of newly acquired or originated capital provision assets during the period (which generally have higher risk premiums at the start of the capital provision asset’s life) was offset by net favorable developments across the rest of the portfolio.

Previous wording

Third-party interests in capital provision assets reduced capital provision income by $43.3 million and $64.1 million for the three and six months ended June 30, 2025, respectively, due to increases in the fair value of the YPF-related assets which were higher in 2025 given the progression closer to our expected conclusion date and a decrease in discount rates. The period-over-period change was also impacted by the Turnover Order.

Current wording

Third-party interests in capital provision assets reduced capital provision income by $83.8 million for the nine months ended September 30, 2025, due to increases in the fair value of the YPF-related assets which were higher in 2025 given the progression closer to our expected conclusion date and a decrease in discount rates. The period-over-period change was also impacted by the Turnover Order.

Previous wording

Asset management income was relatively flat at $1.3 million and $2.9 million for the three and six months ended June 30, 2025, respectively, as compared to $1.6 million and $3.5 million for the three and six months ended June 30, 2024, respectively. The timing of the recognition of performance fees is variable as they are recognized when a reliable estimate of the performance fees can be made, and it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The maturity and the terms of the applicable distribution waterfall for each of our private funds impacts this timing. As BOF-C and the Advantage Fund are consolidated entities, asset management income from these private funds is eliminated on a consolidated basis and is not reflected here. See “—Asset Management and Other Services segment” for a discussion of our asset management income, reflecting the impact of the income from BOF-C and the Advantage Fund.

Current wording

Asset management income decreased 19% and 18% for the three and nine months ended September 30, 2025, respectively, as the remaining funds are in run off and are therefore earning less management fee income period over period while they continue to generate episodic performance fee income. The timing of the recognition of performance fees is variable as they are recognized when a reliable estimate of the performance fees can be made, and it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The maturity and the terms of the applicable distribution waterfall for each of our private funds impacts this timing. As BOF-C and the Advantage Fund are consolidated entities, asset management income from these private funds is eliminated on a consolidated basis and is not reflected here. See “—Asset Management and Other Services segment” for a discussion of our asset management income, reflecting the impact of the income from BOF-C and the Advantage Fund.

Previous wording

Marketable securities income and interest increased 37% and 19% for the three and six months ended June 30, 2025, respectively, mainly driven by the performance of our non-USD holdings which benefited from the strengthening of the pound sterling against the US dollar.

Current wording

Marketable securities income and interest increased 5% for the nine months ended September 30, 2025, primarily driven by higher cash and cash equivalents and marketable securities balances and the impact of the appreciation of the pound sterling against the US dollar in our non-USD holdings, partially offset by lower US yields.

Previous wording

The increase in share-based and deferred compensation costs for the three and six months ended June 30, 2025, is primarily attributable to an increase in deferred compensation expense due to the increase in the price of Burford shares in 2025 as compared to a decrease in 2024, as well as additional deferred compensation in 2025.

Current wording

The increase in share-based and deferred compensation costs for the three and nine months ended September 30, 2025, is primarily attributable to an increase in deferred compensation expense due to the expense acceleration of awards to staff who have met the service conditions of the awards, partially offset by the decrease in the price of Burford shares.

Previous wording

The increase in long-term incentive compensation including accruals for the six months ended June 30, 2025 is correlated to the fair value of the capital provision asset portfolio, which primarily related to higher capital provision income in 2025 as compared to 2024.

Current wording

The decrease in long-term incentive compensation including accruals for the three and nine months ended September 30, 2025 is correlated to the fair value of the capital provision asset portfolio, which primarily related to lower capital provision income in 2025 as compared to 2024.

Previous wording

Case-related expenditures ineligible for inclusion in asset cost significantly increased for the three and six months ended June 30, 2025, reflecting an increase in the level of expenses and instances where we incur legal or other related expenses that are directly attributable to a capital provision asset but that do not form part of the deployed amount under a capital provision agreement, such as when we bear incremental legal expenses in cases. Examples of the incurrence of such expenses include situations where we are effectively the claimant in a litigation matter due to the acquisition of assets or the assignment of a claim. Such expenditures accounted for $2.9 million and $0.7 million of the total case-related expenditures ineligible for inclusion in asset cost for the three months ended June 30, 2025 and 2024, respectively, and $7.2 million and $0.9 million for the six months ended June 30, 2025 and 2024, respectively. While we report these costs as expenses for accounting purposes, we treat them for purposes of return and performance metrics as part of the asset’s cost basis in the same way that we treat traditional legal finance arrangements.

Current wording

Case-related expenditures ineligible for inclusion in asset cost significantly increased for the three and nine months ended September 30, 2025, reflecting an increase in the level of expenses and instances where we incur legal or other related expenses that are directly attributable to a capital provision asset but that do not form part of the deployed amount under a capital provision agreement, such as when we bear incremental legal expenses in cases. Examples of the incurrence of such expenses include situations where we are effectively the claimant in a litigation matter due to the acquisition of assets or the assignment of a claim. Such expenditures accounted for $2.2 million and $0.7 million of the total case-related expenditures ineligible for inclusion in asset cost for the three months ended September 30, 2025 and 2024, respectively, and $9.5 million and $1.6 million for the nine months ended September 30, 2025 and 2024, respectively. While we report these costs as expenses for accounting purposes, we treat them for purposes of return and performance metrics as part of the asset’s cost basis in the same way that we treat traditional legal finance arrangements.

Previous wording

Case-related expenditures ineligible for inclusion in asset cost also include fees paid to third parties when we have sought our own legal advice or expert opinion with respect to matters related to a capital provision asset. These expenses are expected to fluctuate period-over-period and accounted for $1.4 million and $0.7 million of total case-related expenditures ineligible for inclusion in asset cost for the three months ended June 30, 2025 and 2024, respectively, and $1.7 million and $1.2 million for the six months ended June 30, 2025 and 2024, respectively.

Current wording

Case-related expenditures ineligible for inclusion in asset cost also include fees paid to third parties when we have sought our own legal advice or expert opinion with respect to matters related to a capital provision asset. These expenses are expected to fluctuate period-over-period and accounted for $1.6 million and $0.2 million of total case-related expenditures ineligible for inclusion in asset cost for the three months ended September 30, 2025 and 2024, respectively, and $3.2 million and $1.4 million for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

Foreign currency transactions (gains)/losses were gains of $1.5 million and $2.1 million for the three and six months ended June 30, 2025, respectively. The period-over-period change was primarily driven by the strengthening of both the pound sterling and euro against the US dollar.

Current wording

Foreign currency transactions (gains)/losses and other expenses increased 149% for the nine months ended September 30, 2025, primarily driven by the strengthening of both the pound sterling and euro against the US dollar.

Previous wording

Provision for income taxes decreased 61% for the three months ended June 30, 2025, primarily due to higher net income realized in lower taxable jurisdictions in 2025 as compared to 2024. Cash taxes paid were $20.8 million and $7.0 million for the three months ended June 30, 2025 and 2024, respectively.

Current wording

Provision for income taxes decreased 27% for the nine months ended September 30, 2025, primarily due to a reduction in overall taxable income for 2025. Cash taxes paid were $21.2 million and $12.3 million for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

We consolidate certain entities that have other shareholders and/or investors, including the Advantage Fund and BOF-C. The Advantage Fund does not have a traditional management and performance fee structure, but instead we retain any excess returns after the first 10% of annual simple returns are remitted to the Advantage Fund’s investors. With respect to BOF-C, under the co-investing arrangement with the sovereign wealth fund, we (in our capacity as the appointed investment adviser) receive reimbursement of expenses from BOF-C up to a certain level before we or the sovereign wealth fund, as applicable, receive a return of capital. After the repayment of capital, we then receive a portion of the return generated from the assets held by BOF-C. We include 100% of the Advantage Fund’s and BOF-C’s income and expenses in the applicable line items in our unaudited condensed consolidated statements of operations (for example, 100% of the income on the Advantage Fund’s and BOF-C’s capital provision assets is included in capital provision income in our unaudited condensed consolidated statements of operations), and the net amount of those income and expense line items that relate to third-party interests is included in net income attributable to non- controlling interests. In turn, this net amount is deducted from net income to arrive at net income attributable to Burford Capital Limited shareholders in our unaudited condensed consolidated statements of operations. Net income attributable to non-controlling interests does not include Colorado and the EP Funds. See note 2 (Summary of significant accounting policies—Consolidation) to our unaudited condensed consolidated financial statements contained in this Form 10-Q for additional information with respect to our consolidation policies.

Current wording

We consolidate certain entities that have other shareholders and/or investors, including the Advantage Fund and BOF-C. The Advantage Fund does not have a traditional management and performance fee structure, but instead we retain any excess returns after the first 10% of annual simple returns are remitted to the Advantage Fund’s investors. With respect to BOF-C, under the co-investing arrangement with the sovereign wealth fund, we (in our capacity as the appointed investment adviser) receive reimbursement of expenses from BOF-C up to a certain level before we or the sovereign wealth fund, as applicable, receive a return of capital. After the repayment of capital, we then receive a portion of the return generated from the assets held by BOF-C. We include 100% of the Advantage Fund’s and BOF-C’s income and expenses in the applicable line items in our unaudited condensed consolidated statements of operations (for example, 100% of the income on the Advantage Fund’s and BOF-C’s capital provision assets is included in capital provision income in our unaudited condensed consolidated statements of operations), and the net amount of those income and expense line items that relate to third-party interests is included in net income/(loss) attributable to non-controlling interests. In turn, this net amount is deducted from net income/(loss) to arrive at net income/(loss) attributable to Burford Capital Limited shareholders in our unaudited condensed consolidated statements of operations. Net income/(loss) attributable to non-controlling interests does not include Colorado and the EP Funds. See note 2 (Summary of significant accounting policies—Consolidation) to our unaudited condensed consolidated financial statements contained in this Form 10-Q for additional information with respect to our consolidation policies.

Previous wording

Net income attributable to non-controlling interests decreased 22% for the three months ended June 30, 2025, reflecting non-controlling interests’ share of income on capital provision assets, the majority of which relates to the decrease in the revenue from the Advantage Fund, primarily due to less revenue generated from the outstanding assets in the fund.

Current wording

Net income/(loss) attributable to non-controlling interests decreased for the three months ended September 30, 2025, reflecting non-controlling interests’ share of income on capital provision assets, primarily due to the decrease in the capital provision income from BOF-C and due to the decrease in the revenue from the Advantage Fund, mainly as a result of less revenue generated from the outstanding assets in the fund.

Previous wording

Net income attributable to non-controlling interests decreased 33% for the six months ended June 30, 2025, reflecting non-controlling interests’ share of income on capital provision assets, the majority of which relates to the decrease in the revenue from the Advantage Fund, primarily due to less revenue generated from the outstanding assets in the fund.

Current wording

Net income/(loss) attributable to non-controlling interests decreased 61% for the nine months ended September 30, 2025, reflecting non-controlling interests’ share of income on capital provision assets, primarily due to the decrease in the revenue from the Advantage Fund, mainly as a result of less revenue generated from the outstanding assets in the fund, and due to the decrease in the capital provision income from BOF-C.

Previous wording

Cash and cash equivalents decreased 21% and marketable securities increased 7% both as of June 30, 2025. The net decrease in cash and cash equivalents and marketable securities primarily reflects the funding of capital provision assets and the usage of cash in the normal course of business (such as payment of expenses and interest), partially offset by the proceeds received from capital provision assets.

Current wording

Cash and cash equivalents increased 44% and marketable securities increased 0.1% both as of September 30, 2025. The net increase in cash and cash equivalents and marketable securities primarily reflects the issuance of the 2033 Notes, partially offset by the redemption of the 2025 Bonds and the impact from third-party net distributions.

Previous wording

Other assets increased 16% as of June 30, 2025, primarily due to higher receivables.

Current wording

Other assets increased 29% as of September 30, 2025, primarily due to higher receivables and from the acquisition of an equity method investment.

Previous wording

Due from settlement of capital provision assets decreased 36% as of June 30, 2025, primarily due to cash received from realizations during 2025 and collections on the due from settlement of capital provision assets receivable that was outstanding as of December 31, 2024. Of the $183.9 million of due from settlement receivables as of December 31, 2024, 63% was collected in cash during 2025.

Current wording

Due from settlement of capital provision assets decreased 47% as of September 30, 2025, primarily due to cash received from realizations during 2025 and collections on the due from settlement of capital provision assets receivable that was outstanding as of December 31, 2024. Of the $183.9 million of due from settlement receivables as of December 31, 2024, 68% was collected in cash during 2025.

Previous wording

Capital provision assets increased 6% as of June 30, 2025, primarily reflecting fair value gains earned in 2025, and continued deployments into capital provision assets, partially offset by the impact of realizations.

Current wording

Capital provision assets increased 7% as of September 30, 2025, primarily reflecting fair value gains earned in 2025 and continued deployments into capital provision assets, partially offset by the impact of realizations.

Previous wording

On a consolidated basis, the aggregate fair value of our capital provision assets was $5.5 billion, the aggregate deployed cost was $2.4 billion and the aggregate unrealized gains were $3.1 billion each as of June 30, 2025. The increase of $63.6 million in deployed cost is a result of the return of capital from realizations, offset by deployments during 2025. See “—Unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2025 as compared to the three and six months ended June 30, 2024—Revenues” above for additional information with respect to the change in unrealized gains, which is driven by this period’s fair value adjustment, net of previously recognized unrealized gains transferred to realized gains.

Current wording

On a consolidated basis, the aggregate fair value of our capital provision assets was $5.6 billion, the aggregate deployed cost was $2.5 billion and the aggregate unrealized gains were $3.1 billion each as of September 30, 2025. The increase of $126.1 million in deployed cost is a result of deployments during 2025, offset by the return of capital from realizations. See “—Unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2025 as compared to the three and nine months ended September 30, 2024—Revenues” above for additional information with respect to the change in unrealized gains, which is driven by this period’s fair value adjustment, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses).

Previous wording

Within total segments (Burford-only), the aggregate fair value of our capital provision assets was $3.8 billion, the aggregate deployed cost was $1.7 billion and the aggregate unrealized gains were $2.1 billion each as of December 31, 2024. The increase of $75.7 million in deployed cost is a result of deployments during 2025, offset by the return of capital from realizations. See “—Segments—Principal Finance segment—Gains from capital provision asset portfolio” for additional information with respect to the change in unrealized gains, which is driven by this period’s fair value adjustment, net of previously recognized unrealized gains transferred to realized gains.

Current wording

Within total segments (Burford-only), the aggregate fair value of our capital provision assets was $3.9 billion, the aggregate deployed cost was $1.8 billion and the aggregate unrealized gains were $2.1 billion each as of September 30, 2025. The increase of $138.4 million in deployed cost is a result of deployments during 2025, offset by the return of capital from realizations. See “—Segments—Principal Finance segment—Gains from capital provision asset portfolio” for additional information with respect to the change in unrealized gains, which is driven by this period’s fair value adjustment, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses).

Previous wording

On September 15, 2023, the Court issued a final judgment (the “September 2023 Final Judgment”) that resulted in a complete win by Petersen and Eton Park with respect to damages against the Republic of Argentina of $16.1 billion, comprised of $14.3 billion due to Petersen and $1.7 billion due to Eton Park. The September 2023 Final Judgment awards post-judgment interest at a rate of 5.42% per annum, computed daily to the date of payment and compounded annually. On October 10, 2023, the Republic of Argentina filed a notice of appeal with the US Court of Appeals for the Second Circuit and, on October 18, 2023, Petersen and Eton Park filed a notice a cross-appeal as to the dismissal of their claims against YPF S.A. On August 23, 2024, briefing on the appeal and cross-appeal was completed.

Current wording

On September 15, 2023, the Court issued a final judgment (the “September 2023 Final Judgment”) that resulted in a complete win by Petersen and Eton Park with respect to damages against the Republic of Argentina of $16.1 billion, comprised of $14.3 billion due to Petersen and $1.7 billion due to Eton Park. The September 2023 Final Judgment awards post-judgment interest at a rate of 5.42% per annum, computed daily to the date of payment and compounded annually. On October 10, 2023, the Republic of Argentina filed a notice of appeal with the US Court of Appeals for the Second Circuit ("Second Circuit") and, on October 18, 2023, Petersen and Eton Park filed a notice a cross-appeal as to the dismissal of their claims against YPF S.A. On August 23, 2024, briefing on the appeal and cross-appeal was completed. On October 29, 2025, oral argument of the appeal and cross-appeal occurred before a panel of the Second Circuit and the panel’s decision was reserved and will be released in due course. As with any litigation matter, litigation outcomes are risky and difficult to predict, and a loss in a litigation matter may result in the total loss of our capital and balance sheet asset value associated with that matter.

Previous wording

On June 30, 2025, the Court granted Petersen and Eton Park’s motion (the “Turnover Order”) seeking an order that the Republic of Argentina turn over its 51% of YPF S.A.’s Class D shares to Petersen and Eton Park, in partial satisfaction of the $16.1 billion judgment. The Republic of Argentina has appealed this ruling to the US Court of Appeals for the Second Circuit and moved to stay the ruling pending appeal.

Current wording

On June 30, 2025, the Court granted Petersen and Eton Park’s motion (the “Turnover Order”) seeking an order that the Republic of Argentina turn over its 51% of YPF S.A.’s Class D shares to Petersen and Eton Park, in partial satisfaction of the $16.1 billion judgment. The Republic of Argentina has appealed this ruling to the US Court of Appeals for the Second Circuit, which has been stayed pending appeal.

Previous wording

On a consolidated basis, the fair value of the YPF-related assets (both Petersen and Eton Park combined) was $2.5 billion as of June 30, 2025. Our cost basis and unrealized gains increased $108.5 million and $180.9 million to $184.9 million and $2.3 billion, respectively, during 2025. The increase in the cost basis was due to the consolidation of the EP Funds, while the increase in unrealized gains was due to the passage of time bringing us closer to our expected conclusion date and the impact of the Turnover Order.

Current wording

On a consolidated basis, the fair value of the YPF-related assets (both Petersen and Eton Park combined) was $2.5 billion as of September 30, 2025. Our cost basis and unrealized gains increased $113.2 million and $236.3 million to $189.6 million and $2.4 billion, respectively, during 2025. The increase in the cost basis was due to the consolidation of the EP Funds, while the increase in unrealized gains was due to the passage of time bringing us closer to our expected conclusion date, the impact of the Turnover Order and the impact from discount rates.

Previous wording

Within total segments (Burford-only), the fair value of the YPF-related assets (both Petersen and Eton Park combined) was $1.6 billion as of June 30, 2025. Our cost basis and our unrealized gains increased $38.4 million and $118.8 million to $107.9 million and $1.5 billion, respectively, during 2025, due to further deployed costs and the impact of the Turnover Order. The increase in the cost basis was due to the consolidation of the EP Funds, while the increase in unrealized gains was due to the passage of time bringing us closer to our expected conclusion date and the impact of the Turnover Order.

Current wording

Within total segments (Burford-only), the fair value of the YPF-related assets (both Petersen and Eton Park combined) was $1.7 billion as of September 30, 2025. Our cost basis and our unrealized gains increased $43.5 million and $154.6 million to $113.1 million and $1.6 billion, respectively, during 2025. The increase in the cost basis was due to the consolidation of the EP Funds, while the increase in unrealized gains was due to the passage of time bringing us closer to our expected conclusion date, the impact of the Turnover Order and the impact from discount rates.