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 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.

Current wording

The following discussion and analysis of our financial condition and results of operations is intended to convey management’s perspective with respect to our operating and financial performance for the three months ended March 31, 2026 and 2025. It should be read in conjunction with the unaudited condensed consolidated financial statements and the accompanying notes thereto contained elsewhere in this Form 10-Q and the audited consolidated financial statements and the accompanying notes thereto contained in the 2025 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, 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.

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, which we colloquially call legal finance. We are a global firm that serves the legal industry 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 both to pay the legal fees and expenses associated with disputes and to monetize the expected future value of disputes. Our focus is on large, complex disputes, not on small-scale litigation typically pursued by consumers or small businesses.

Previous wording

As a result of the factors described above, income/(loss) before income taxes decreased for the three months ended September 30, 2025.

Current wording

Our largest individual asset was our interest in the proceeds of claims brought by the Petersen and Eton Park entities against the Republic of Argentina and YPF S.A. that have been the subject of extensive disclosure in prior reports. On September 15, 2023, judgment was entered in favor of the plaintiffs resulting in a substantial increase in the balance sheet fair value of the YPF-related assets, and that value increased further in the year ended December 31, 2024 when the court ordered the turnover of certain YPF S.A.’s shares to plaintiffs. However, on March 27, 2026, that judgment was reversed on appeal (the “YPF Judgment Reversal”) and, as a result, the balance sheet fair value of the YPF-related assets has been significantly reduced. Further proceedings with respect to the YPF-related assets are ongoing in the US courts and the plaintiffs are also likely to pursue relief through international arbitration proceedings.

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 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.

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. 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 resulting in financeable claims.

Current wording

More broadly, economic conditions can have an impact on the volume 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 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.

Current wording

During the three months ended March 31, 2026, military action in the Middle East, geopolitical tensions and ongoing disruption to global trade drove significant volatility in global financial markets. We do not expect this volatility to have a significant impact on the performance of our legal finance portfolio or our financial results. More generally, 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 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.

Current wording

Court systems and other forms of adjudication have returned to functionality in the aftermath of the Covid-19 pandemic. In general, courts have continued to work through the case backlog caused by the Covid-19 pandemic and, during the three months ended March 31, 2026, 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, and we saw impact from that in our financial results for the year ended December 31, 2025 as extensions of expected duration reduced the fair value of certain assets. In some cases, we are protected on duration risk, because some of our assets have time-based terms that increase our absolute returns as time passes. 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

Litigation outcomes stand apart from the remainder of the conventional credit universe because they do not arise as a result of a contractual relationship between the judgment debtor and creditor, unlike essentially all other forms of credit obligation. Thus, for example, for a debtholder to recover on a defaulted debt, there are many steps, typically involving notice, a cure period and usually a subsequent judicial or insolvency proceeding that will generally sweep in other creditors, resulting in a meaningful risk of the debt being impaired or compromised. By contrast, a judgment creditor has immediate and unfettered rights of action, for example, to seize assets and garnish cash flows, meaning that a judgment creditor often has substantial leverage and ability to secure payment of a judgment against even a financially distressed judgment debtor as long as the judgment debtor does not seek protection from creditors in a formal insolvency proceeding.

Current wording

Litigation outcomes stand apart from the remainder of the conventional credit universe because they do not arise as a result of a contractual relationship between the judgment debtor and creditor, unlike essentially all other forms of credit obligation. Thus, for example, a debtholder seeking recovery on a defaulted debt must take many steps, typically involving notice, a cure period and usually a subsequent judicial or insolvency proceeding that will generally sweep in other creditors, resulting in a meaningful risk of the debt being impaired or compromised. By contrast, a judgment creditor has immediate and unfettered rights of action, for example, to seize assets and garnish cash flows, meaning that a judgment creditor often has substantial leverage and ability to secure payment of a judgment against even a financially distressed judgment debtor as long as the judgment debtor does not seek protection from creditors in a formal insolvency proceeding.

Previous wording

There were no material developments with respect to, or changes from, our disclosure in the 2024 Form 10-K relating to the international sanctions on Russian businesses and individuals and the conflict in Israel and Gaza.

Current wording

There were no material developments with respect to, or changes from, our disclosure in the 2025 Form 10-K relating to the international sanctions on Russian businesses and individuals.

Previous 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.

Current wording

Set forth below is a discussion of our unaudited condensed consolidated results of operations for the three months ended March 31, 2026 and 2025 and our unaudited condensed consolidated financial condition as of March 31, 2026 and December 31, 2025, in each case, on a consolidated basis, unless otherwise noted.

Previous 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.

Current wording

In this section, any references to 2026 refer to the three months ended March 31, 2026, and any references to 2025 refer to the three months ended March 31, 2025.

Previous 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.

Current wording

Total revenues decreased for the three months ended March 31, 2026, partially offset by a decrease in total operating expenses. The decrease in both total revenues and total operating expenses was primarily due to the YPF Judgment Reversal, which resulted in (i) with respect to total revenues, a capital provision loss, net of third-party interest, of $1.7 billion and (ii) with respect to total operating expenses, a decrease in long-term incentive compensation including accruals of $124.8 million and a decrease in case-related expenditures ineligible for inclusion in asset cost of $66.2 million. In addition, total revenues decreased, mainly due to a decrease in capital provision income, arising mostly from lower fair value adjustments, and total operating expenses decreased, mainly due to decreases in fair value driven compensation-related accruals, partially offset by an increase in case-related expenditures ineligible for inclusion in asset cost. The net result was $1.6 billion in net loss attributable to Burford Capital Limited shareholders for the three months ended March 31, 2026, as compared to net income of $30.9 million for the three months ended March 31, 2025.

Previous 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.

Current wording

For the three months ended March 31, 2026, net realized gains were $32.2 million, comprising $49.2 million of gross realized gains, offset by gross realized losses of $17.0 million. For the three months ended March 31, 2025, net realized gains were $67.6 million, comprising $84.0 million of gross realized gains, offset by gross realized losses of $16.4 million. The decrease in net realized gains was due to fewer assets concluding in 2026 as compared to 2025, a variability which is characteristic of our business. Overall, net realized gains resulted from $101.3 million in realizations for the three months ended March 31, 2026 as compared to $288.8 million in realizations for the three months ended March 31, 2025, in light of the absence of a single large realization in the current period.

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 $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.

Current wording

Fair value adjustments during the period, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses), were 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 their transfer to realized gains/(losses) and actual performance of matters as they pass through milestones. All of those factors contributed to the net reduction in fair value of $2.5 billion for the three months ended March 31, 2026, of which $2.4 billion was attributable to the YPF-related assets, primarily due to the impact of the YPF Judgment Reversal.

Previous 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.

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, 2025, applying those same rates to the portfolio as of March 31, 2026, fair value would have been approximately $49.6 million higher than as reported. The weighted average discount rate across the portfolio increased to 6.6% as of March 31, 2026 from 6.1% as of December 31, 2025, and interest sensitivities of the portfolio to assumed basis point changes in interest 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 up at 47.8% as of March 31, 2026 from 31.1% as of December 31, 2025. Contributing to the higher risk premium during the period was the addition of newly acquired or originated capital provision assets (as capital provision assets generally have higher risk premiums at their outset) and the negative milestone for the YPF-related assets.

Previous 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.

Current wording

These expenditures include costs associated with ongoing capital provision assets that are not eligible for inclusion in the fair value of those assets and are therefore expensed as incurred. 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. As of March 31, 2026, we have deployed a cumulative $28.8 million of such costs in respect of capital provision assets that remain ongoing. The total expense for the three months ended March 31, 2026 was a credit of $42.7 million primarily as a result of the $66.2 million credit associated with the YPF Judgment Reversal related to accrued contingent fee arrangements associated with the EP Funds. The main offset to this credit is an increase in this line item in 2026 of $23.0 million relating to the correction of certain costs that had been previously included within capital provision assets but that did not meet the applicable criteria for inclusion in the fair value of those assets. The impact of this correction was not material to 2026 or any prior periods. Compared to 2025, there was $4.3 million of such expenditures. 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 $1.6 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.

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 $0.3 million and $0.3 million of total case-related expenditures ineligible for inclusion in asset cost for the three months ended March 31, 2026 and 2025, respectively.

Previous wording

The table below sets forth the components our total other expenses for the periods indicated.

Current wording

The table below sets forth the components of our total other expenses for the periods indicated.

Previous wording

Provision for income taxes decreased 67% for the three months ended September 30, 2025, primarily reflecting the impact of losses incurred during the three months ended September 30, 2025 and a reduction in overall taxable income for 2025. Cash taxes paid were $0.02 million and $12.3 million for the three months ended September 30, 2025 and 2024, respectively.

Current wording

Benefit from income taxes was $2.4 million for the three months ended March 31, 2026, as compared to provision for income taxes of $7.6 million for the three months ended March 31, 2025. The period-over-period change was primarily due to a reduction in overall taxable income for 2026. Cash taxes paid were $0.9 million and $0.4 million for the three months ended March 31, 2026 and 2025, respectively.

Previous 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.

Current wording

Cash and cash equivalents increased 24% and marketable securities decreased 42%, in each case, as of March 31, 2026. The net increase in cash and cash equivalents and marketable securities primarily reflects the issuance of the 2034 Notes, the proceeds received from capital provision assets and the impact from third-party net capital contributions, partially offset by (i) the redemption of the 2026 Bonds and (ii) the funding of capital provision assets.

Previous 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.

Current wording

Due from settlement of capital provision assets increased 9% as of March 31, 2026, primarily due to the relative level of new realizations, offset by the collection of receivables, during the three months ended March 31, 2026. Of the $164.8 million of due from settlement of capital provision assets receivables outstanding as of December 31, 2025, 39% was collected in cash during 2026.

Previous 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.

Current wording

Capital provision assets decreased 44% as of March 31, 2026, primarily due to the YPF Judgment Reversal and the impact of realizations, partially offset by continued deployments into capital provision assets.

Previous 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).

Current wording

On a consolidated basis, the aggregate fair value of our capital provision assets was $3.1 billion, the aggregate deployed cost was $2.5 billion and the aggregate unrealized gains were $0.6 billion, in each case, as of March 31, 2026. The increase of $44.6 million in deployed cost resulted from deployments during 2026, offset by the return of capital from realizations. See “—Unaudited condensed consolidated statements of operations for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025—Revenues” above for additional information with respect to the change in unrealized gains, which was 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 $3.9 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).

Current wording

Within total segments (Burford-only), the aggregate fair value of our capital provision assets was $2.2 billion, the aggregate deployed cost was $1.9 billion and the aggregate unrealized gains were $0.4 billion, in each case, as of March 31, 2026. The increase of $10.3 million in deployed cost resulted from deployments during 2026, 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 was driven by this period’s fair value adjustment, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses).

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 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.

Current wording

The determination of the fair value of the YPF-related assets is based on the same methodology that we use to value all our other capital provision assets. On a consolidated basis, the fair value of the YPF-related assets (both Petersen and Eton Park combined) was $150.1 million as of March 31, 2026. Our cost basis increased $3.8 million to $197.3 million and the unrealized gains decreased $2.4 billion to an unrealized loss of $47.2 million, during 2026. The increase in the cost basis was due to continued deployments, while the decrease in unrealized gains was driven by the impact of the YPF Judgment Reversal.

Previous 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.

Current wording

Within total segments (Burford-only), the fair value of the YPF-related assets (both Petersen and Eton Park combined) was $92.5 million as of March 31, 2026. Our cost basis increased $3.8 million to $121.4 million and the unrealized gains decreased $1.6 billion to an unrealized loss of $28.8 million, during 2026. The increase in the cost basis was due to continued deployments, while the decrease in unrealized gains was driven by the impact of the YPF Judgment Reversal.

Previous wording

Undrawn commitments are unfunded commitments that are attributable to our capital provision asset portfolio and can be divided into two categories: definitive and discretionary.

Current wording

Undrawn commitments are unfunded commitments, which are attributable to our capital provision asset portfolio and can be divided into two categories: definitive and discretionary.

Previous wording

As of September 30, 2025, approximately 61% of our legal finance undrawn commitments related to definitive commitments and 39% related to discretionary, as compared to 49% and 51%, respectively as of December 31, 2024.

Current wording

As of March 31, 2026 and December 31, 2025, approximately 63% of our legal finance undrawn commitments related to definitive commitments and approximately 37% related to discretionary commitments.

Previous wording

Our Asset Management and Other Services segment manages legal finance assets on behalf of third-party investors, and we provide other services to the legal industry for both of which we receive fees. These fees are primarily reflected as asset management income, which is a secondary contributor to our total revenues. As of September 30, 2025, we operated eight private funds and three “sidecar” funds as an investment adviser registered with and regulated by the SEC.

Current wording

Our Asset Management and Other Services segment manages legal finance assets on behalf of third-party investors through private funds and provides other services to the legal industry, for both of which we receive fees. These fees are primarily reflected as asset management income, which is a secondary contributor to our total revenues. As of March 31, 2026, we operated eight private funds and three “sidecar” funds as an investment adviser registered with and regulated by the SEC.

Previous wording

Total assets, as of September 30, 2025, increased $510.4 million on a consolidated basis and increased $484.6 million on a total segments (Burford-only) basis. In each case, the increase in total assets is mainly attributable to an increase in capital provision assets and by increases in cash and cash equivalents and marketable securities, partially offset by a decrease in due from settlement of capital provision assets. See “—Unaudited condensed consolidated statements of financial condition as of September 30, 2025 as compared to December 31, 2024” above for additional information on the components of our unaudited condensed consolidated statements of financial condition. For the period-over-period discussion of each of the reportable segments, refer to the specific segment sections further below.

Current wording

As of March 31, 2026, total assets decreased $2.4 billion on a consolidated basis and decreased $1.5 billion on a total segments (Burford-only) basis. In each case, the decrease in total assets was mainly attributable to a decrease in capital provision assets. See “—Unaudited condensed consolidated statements of financial condition as of March 31, 2026 as compared to December 31, 2025” above for additional information on the components of our unaudited condensed consolidated statements of financial condition. Refer to the specific segment sections below for the period-over-period discussion of each of the reportable segments.

Previous wording

Group-wide portfolio refers to the totality of assets managed by us, which includes assets financed by our balance sheet through our Principal Finance segment and assets financed by third-party capital through our Asset Management and Other Services segment. The table below sets forth the components of our portfolio by segment as of the dates indicated.

Current wording

Group-wide portfolio refers to the totality of assets managed by us, which includes assets financed by our balance sheet through our Principal Finance segment and assets funded by third parties through our Asset Management and Other Services segment. The table below sets forth the components of our portfolio by segment as of the dates indicated.

Previous wording

New commitments reflect new contractual financing agreements, which are inflows to the portfolio, and serve as one indicator for new business activity. When referring to new commitments for our combined business segments, we use the term “group-wide”, as opposed to total segments (Burford-only) which we use for our financial results, due to the third-party nature of the capital in our asset management business. The table below sets forth the components of our group-wide new commitments of capital provision assets by segment for the periods indicated.

Current wording

New definitive commitments serve as one indicator of new business activity and reflect new contractual financing agreements, which are inflows to the portfolio or transfers of existing discretionary commitments. Discretionary commitments, which are also included in undrawn commitments as a component of the portfolio, are not included within new definitive commitments. When referring to new definitive commitments for our combined business segments, we use the term “group-wide”, as opposed to total segments (Burford-only) which we use for our financial results, due to the third-party nature of the capital in our asset management business. The table below sets forth the components of our group-wide new definitive commitments of capital provision assets by segment for periods indicated.

Previous wording

Our Principal Finance segment allocates capital to legal finance assets from Burford’s balance sheet, primarily as capital provision assets, and in limited scope through interests in private funds managed by Burford. These capital provision assets and private fund interests generate capital provision income, which is the most significant driver of our total revenues.

Current wording

Our Principal Finance segment allocates capital to legal finance assets from our balance sheet, primarily as capital provision assets, and in limited scope through interests in private funds managed by us. These capital provision assets and private fund interests generate capital provision income, which is the most significant driver of our total revenues.

Previous wording

Net realized gains on capital provision assets decreased 43% for the three months ended September 30, 2025, which were comprised of $49.5 million in gross realized gains, offset by $17.6 million in gross realized losses. For the three months ended September 30, 2024, net realized gains on capital provision assets were comprised of $61.3 million in gross realized gains, offset by $4.8 million in gross realized losses. While there was more case activity in 2025 as compared to 2024, we did not have a large realized gain in 2025 of the size we experienced in 2024 which thus impacted our net realized gains. As a percentage of average capital provision assets at cost during the three months ended September 30, 2025, gross realized losses were 3.8% (annualized) as compared to 2.8% for the year ended December 31, 2024.

Current wording

Net realized gains on capital provision assets decreased 18% for the three months ended March 31, 2026, which were comprised of $39.9 million in gross realized gains, offset by $11.5 million in gross realized losses. For the three months ended March 31, 2025, net realized gains on capital provision assets were comprised of $46.4 million in gross realized gains, offset by $11.8 million in gross realized losses. The decrease in net realized gains was in large part due to lower case realizations relating to the Advantage Fund given the fund is in wind down during the three months ended March 31, 2026. As a percentage of average capital provision assets at cost during the three months ended March 31, 2026, gross realized losses represented 2.5% (annualized) as compared to 3.1% for the year ended December 31, 2025.

Previous wording

Unrealized gains consist of fair value adjustments during the period, which may be offset by the transfer of unrealized gains/(losses) to realized gains/(losses) upon realization of an asset. Fair value adjustments, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses), on capital provision assets decreased to $23.9 million for the three months ended September 30, 2025, 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. Fair value adjustments, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses), on capital provision assets increased to $191.3 million for the nine months ended September 30, 2025, mainly due to the impact of the Turnover Order.

Current wording

Net change in unrealized gains consist of fair value adjustments during the period, which may be offset by the transfer of unrealized gains/(losses) to realized gains/(losses) upon realization of an asset. Fair value adjustments, net of previously recognized unrealized gains/(losses) transferred to realized gains, on capital provision assets decreased for the three months ended March 31, 2026, with the YPF Judgment Reversal having the largest impact from an individual matter during the period.

Previous wording

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—Capital provision income/(loss)” above for additional information with respect to the year-over-year change of fair value adjustment, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses).

Current wording

See“—Unaudited condensed consolidated statements of operations for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025—Revenues—Capital provision income/(loss)” above for additional information with respect to the period-over-period change of fair value adjustment, net of previously recognized unrealized gains/(losses) transferred to realized gains/(losses).

Previous wording

Total assets increased 11% as of September 30, 2025, due to an increase in capital provision assets and increases in cash and cash equivalents and marketable securities, partially offset by a decrease in due from settlement of capital provision assets. See“—Unaudited condensed consolidated statements of financial condition as of September 30, 2025 as compared to December 31, 2024”above for additional information.

Current wording

Total assets decreased 32% as of March 31, 2026, primarily due to a decrease in capital provision assets. See“—Unaudited condensed consolidated statements of financial condition as of March 31, 2026 as compared to December 31, 2025”above for additional information.

Previous wording

Total portfolio increased 8% as of September 30, 2025, driven by increases in fair value of capital provision assets resulting from greater financing and unrealized gains in 2025 plus an increase in undrawn commitments due to new commitments added in the same period. Capital provision assets include our investment in the Advantage Fund which makes up less than 1% of the total portfolio as of September 30, 2025.

Current wording

Total portfolio decreased 30% as of March 31, 2026, driven by decreases in fair value of capital provision assets, primarily resulting from the YPF Judgment Reversal. Capital provision assets include our investment in the Advantage Fund which makes up less than 1% of the total portfolio as of March 31, 2026.

Previous wording

For both the Principal Finance segment and the adjusted Burford-only basis, total deployments increased by 61% for the three months ended September 30, 2025. The increase in deployments for both the Principal Finance segment and the adjusted Burford-only basis was primarily from $35.3 million of monetizations related to three deals.

Current wording

For both the Principal Finance segment and the adjusted Burford-only basis, total deployments decreased by 10% and 17%, respectively, for the three months ended March 31, 2026. The decrease in deployments for both the Principal Finance segment and the adjusted Burford-only basis was largely due to the absence in 2026 of the $38.0 million that was deployed in 2025 associated with the restructuring of the Eton Park liquidation.

Previous wording

We count each of our contractual relationships as an “asset”, although many such relationships are composed of multiple underlying litigation matters that are often cross collateralized rather than reliant on the performance of a single matter. As of September 30, 2025, our Principal Finance portfolio consisted of 236 assets funded directly by our balance sheet and six additional assets held through the Advantage Fund. As of December 31, 2024, our Principal Finance portfolio consisted of 227 assets funded directly by our balance sheet and nine additional assets held through the Advantage Fund.

Current wording

We count each of our contractual relationships as an “asset”, although many such relationships are composed of multiple underlying litigation matters that are often cross collateralized rather than reliant on the performance of a single matter. As of March 31, 2026, our Principal Finance portfolio consisted of 237 assets funded directly by our balance sheet and four additional assets held through the Advantage Fund. As of December 31, 2025, our Principal Finance portfolio consisted of 237 assets funded directly by our balance sheet and four additional assets held through the Advantage Fund.