Burford Capital Ltd

Previous 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 and six months ended June 30, 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.

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 and nine months ended September 30, 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

In addition, the following discussion and analysis 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 this Form 10-Q, the 2025 Form 10-K and the Q126 Form 10-Q.

Current wording

In addition, the following discussion and analysis 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 this Form 10-Q, the 2025 Form 10-K and the Previous Forms 10-Q.

Previous 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, the balance sheet fair value of the YPF-related assets has been significantly reduced as a result of the YPF Judgment Reversal. 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.

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, the balance sheet fair value of the YPF-related assets has been significantly reduced as a result of the YPF Judgment Reversal. Further proceedings with respect to the YPF-related assets are ongoing in the US courts and the plaintiffs are also pursuing 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. 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 the performance of the overall economy or financial market conditions. The most direct impact of economic and financial 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 capital provision 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 financial market cycles due to the nature of the assets that drive our revenues and cash flow.

Previous wording

During the three and six months ended June 30, 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 any impact to occur with a lag.

Current wording

During the three and nine months ended September 30, 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 any impact 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, courts have continued to work through the case backlog caused by the Covid-19 pandemic and, during the three and six months ended June 30, 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.

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 and nine months ended September 30, 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

The effect of inflation on our revenues is mitigated to a significant extent by a number of factors, including the high returns generated by capital provision assets and their relatively short weighted average lives. Furthermore, inflationary increases in legal case fees and expenses can increase the size of commitments, deployments and damages sought. Because returns on most of our assets are at least partially based upon a multiple of those fees and expenses, our returns on successful cases should also increase in such circumstances. To the degree that inflation drives higher interest rates and to the extent that pre- and post-judgment interest rates in a particular jurisdiction are tied to market interest rates, higher inflation would result in increases in awards by the relevant courts. The effect of inflation on our expenses would predominantly be through employee costs, which represent the majority of our operating expenses, although a significant portion of compensation-related expenses are performance-based. Our Principal Finance costs include interest expenses associated with our outstanding debt securities, although these are fixed coupon and non-adjustable, regardless of the rate of inflation.

Current wording

The effect of inflation on our revenues is mitigated to a significant extent by a number of factors, including the high returns generated by capital provision assets and their relatively short weighted average lives. Furthermore, inflationary increases in legal case fees and expenses can increase the size of commitments, deployments and damages sought. Because returns on most of our assets are at least partially based upon a multiple of those fees and expenses, our returns on successful cases should also increase in such circumstances. To the degree that inflation drives higher interest rates and to the extent that pre- and post-judgment interest rates in a particular jurisdiction are tied to market interest rates, higher inflation would result in increases in awards by the relevant courts. The effect of inflation on our expenses would predominantly be through employee costs, which represent the majority of our operating expenses, although a significant portion of compensation-related expenses are performance-based. Our Principal Finance costs include interest expenses associated with our outstanding debt securities, although these are fixed coupon and non-adjustable, regardless of the rate of inflation. Interest income earned on our marketable securities may adjust with changes in market interest rates.

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, 2026 and 2025 and our unaudited condensed consolidated financial condition as of June 30, 2026 and December 31, 2025, 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, 2026 and 2025 and our unaudited condensed consolidated financial condition as of September 30, 2026 and December 31, 2025, in each case, on a consolidated basis, unless otherwise noted.

Previous wording

In this section, any references to 2026 refer to the three or six months ended June 30, 2026, as applicable, and any references to 2025 refer to the three or six months ended June 30, 2025, as applicable.

Current wording

In this section, any references to 2026 refer to the three or nine months ended September 30, 2026, as applicable, and any references to 2025 refer to the three or nine months ended September 30, 2025, as applicable.

Previous wording

Total revenues decreased 42% for the three months ended June 30, 2026, partially offset by a 3% decrease in total operating expenses. The decrease in total revenues was primarily due to a decrease in capital provision income arising mostly from lower fair value adjustments as described below, while the decrease in total operating expenses was primarily due to lower compensation and benefits costs related to lower 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 $2.2 million in net income attributable to Burford Capital Limited shareholders for the three months ended June 30, 2026 as compared to net income of $88.3 million for the three months ended June 30, 2025.

Current wording

Total revenues increased 110% for the three months ended September 30, 2026, partially offset by a 32% increase in total other expenses. The increase in total revenues was primarily due to an increase in capital provision income arising mostly from higher fair value adjustments as described below, while the increase in total other expenses was primarily due to an increase in interest expense as described below. The net result was $23.4 million in net income attributable to Burford Capital Limited shareholders for the three months ended September 30, 2026 as compared to net loss of $19.2 million for the three months ended September 30, 2025.

Previous wording

Total revenues decreased for the six months ended June 30, 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 $124.5 million and a decrease in case-related expenditures ineligible for inclusion in asset cost of $66.9 million. Furthermore, total revenues decreased due to a decrease in capital provision income arising mostly from lower fair value adjustments as described below, while the decrease in total operating expenses as described above was partially offset by an increase in other case-related expenditures ineligible for inclusion in asset cost and an increase in compensation and benefits costs. The net result was $1.6 billion in net loss attributable to Burford Capital Limited shareholders for the six months ended June 30, 2026 as compared to net income of $119.2 million for the six months ended June 30, 2025.

Current wording

Total revenues decreased for the nine months ended September 30, 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 $122.6 million and a decrease in case-related expenditures ineligible for inclusion in asset cost of $67.3 million. Furthermore, total operating expenses increased due to an increase in case-related expenditures ineligible for inclusion in asset cost, though partially offset by lower compensation and benefits costs. The net result was $1.6 billion in net loss attributable to Burford Capital Limited shareholders for the nine months ended September 30, 2026 as compared to net income of $100.1 million for the nine months ended September 30, 2025.

Previous wording

For the three months ended June 30, 2026, net realized gains were $65.7 million, comprising $97.8 million of gross realized gains, offset by gross realized losses of $32.1 million. 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. The increase in net realized gains was due to higher individual favorable conclusions in 2026 as compared to 2025 with no single asset significantly impacting the result. Overall, net realized gains resulted from $149.0 million in realizations for the three months ended June 30, 2026 as compared to $90.1 million in realizations for the three months ended June 30, 2025.

Current wording

For the three months ended September 30, 2026, net realized gains were $25.0 million, comprising $54.9 million of gross realized gains, offset by gross realized losses of $29.9 million. 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. The decrease in net realized gains was due to lower individual favorable conclusions in 2026 as compared to 2025 with no single asset significantly impacting the result. Overall, net realized gains resulted from $94.3 million in realizations for the three months ended September 30, 2026 as compared to $139.4 million in realizations for the three months ended September 30, 2025.

Previous 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 unrealized gain of $40.1 million for the three months ended June 30, 2026 as compared to the unrealized gain of $170.9 million for the three months ended June 30, 2025, with the reduction in YPF-related assets contributing to the lower unrealized gain value in 2026.

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 unrealized gain of $123.0 million for the three months ended September 30, 2026 as compared to the unrealized gain of $2.9 million for the three months ended September 30, 2025, with several positive milestone developments during the three months ended September 30, 2026 being the largest contributing factor on the change period over period.

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, 2026, applying those same discount rates to the portfolio as of June 30, 2026, fair value would have been approximately $8.1 million higher than as reported. The weighted average discount rate across the portfolio increased to 6.7% as of June 30, 2026 from 6.6% as of March 31, 2026, and interest sensitivities of the portfolio to assumed basis point changes in discount rates as of 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 48.6% as of June 30, 2026 from 47.8% as of March 31, 2026. 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).

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, 2026, applying those same discount rates to the portfolio as of September 30, 2026, fair value would have been approximately $120.5 million higher than as reported. The weighted average discount rate across the portfolio increased to 7.6% as of September 30, 2026 from 6.7% as of June 30, 2026, and interest sensitivities of the portfolio to assumed basis point changes in discount rates as of 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 48.0% as of September 30, 2026 from 48.6% as of June 30, 2026. 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, 2026, net realized gains were $97.8 million, comprising $146.2 million of gross realized gains, offset by gross realized losses of $48.4 million. 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. Net realized gains remained consistent in 2026 as compared to 2025, with no single asset significantly impacting the result. Overall, net realized gains resulted from $250.3 million in realizations for the six months ended June 30, 2026, as compared to $378.9 million in realizations for the six months ended June 30, 2025.

Current wording

For the nine months ended September 30, 2026, net realized gains were $122.8 million, comprising $200.9 million of gross realized gains, offset by gross realized losses of $78.1 million. 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. The decrease in net realized gains was due to a combination of an individual realized loss of $25.5 million and a decrease in revenue from the Advantage Fund since the fund concluded its investment period (in December 2024) and now only comprises a small part of the portfolio. Overall, net realized gains resulted from $344.6 million in realizations for the nine months ended September 30, 2026, as compared to $518.3 million in realizations for the nine months ended September 30, 2025.

Previous 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 six months ended June 30, 2026, of which $2.4 billion was attributable to the YPF-related assets, primarily due to the impact of the YPF Judgment Reversal.

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 $2.4 billion for the nine months ended September 30, 2026, of which the vast majority 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 December 31, 2025, applying those same rates to the portfolio at June 30, 2026, fair value would have been approximately $57.7 million higher than as reported. The weighted average discount rate across the portfolio increased to 6.7% as of June 30, 2026, from 6.1% as of December 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 up at 48.6% as of June 30, 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.

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 at September 30, 2026, fair value would have been approximately $178.2 million higher than as reported. The weighted average discount rate across the portfolio increased to 7.6% as of September 30, 2026, from 6.1% as of December 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 up at 48.0% as of September 30, 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

Third-party interests in capital provision assets reduced capital provision loss by $0.8 billion for the six months ended June 30, 2026, as compared to a reduction of $64.1 million to capital provision income for the six months ended June 30, 2025, of which $0.8 billion was for the YPF-related assets for the six months ended June 30, 2026.

Current wording

Third-party interests in capital provision assets reduced capital provision loss by $766.2 million for the nine months ended September 30, 2026, as compared to a reduction of $83.8 million to capital provision income for the nine months ended September 30, 2025, of which $774.4 million was for the YPF-related assets for the nine months ended September 30, 2026.

Previous wording

Asset management income decreased 79% and 80% for the three and six months ended June 30, 2026, respectively, as our remaining private funds are in run off and are therefore earning less management fee income period-over-period. 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 89% and 84% for the three and nine months ended September 30, 2026, respectively, as our remaining private funds are in run off and are therefore earning less management fee income period-over-period. 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 decreased 19% and 13% for the three and six months ended June 30, 2026, respectively, primarily due to the fact that in 2025 interest income benefited from the appreciation of the pound sterling against the US dollar in our non-USD holdings, which were liquidated in January 2026 to fund the redemption of the 2026 Bonds.

Current wording

Marketable securities income and interest decreased 20% and 15% for the three and nine months ended September 30, 2026, respectively, primarily due to lower overnight rates in the three months ended September 30, 2026, compared to 2025, resulting in lower returns on our cash and cash equivalents. In addition, the decrease for the nine months ended September 30, 2026 was also impacted by the fact that in 2025 interest income benefited from the appreciation of the pound sterling against the US dollar in our non-USD holdings, which were liquidated in January 2026 to fund the redemption of the 2026 Bonds.

Previous wording

Total operating expenses decreased to a credit of $102.7 million for the six months ended June 30, 2026, primarily due to lower fair value driven compensation-related accruals and lower case-related expenditures ineligible for inclusion in asset cost.

Current wording

Total operating expenses decreased to a credit of $53.5 million for the nine months ended September 30, 2026, primarily due to lower fair value driven compensation-related accruals and lower case-related expenditures ineligible for inclusion in asset cost.

Previous wording

Fair value driven compensation-related accruals decreased for the six months ended June 30, 2026, primarily due to a $124.5 million credit to long-term incentive compensation including accruals as a result of the YPF Judgment Reversal.

Current wording

Fair value driven compensation-related accruals decreased for the nine months ended September 30, 2026, primarily due to a $122.6 million credit to long-term incentive compensation including accruals as a result of the YPF Judgment Reversal. Further to the $122.6 million credit related to the YPF Judgment Reversal, there was an expense accrual of $17.0 million from the remainder of the portfolio, which represented aggregate employee carried interest of approximately 10% for the nine months ended September 30, 2026.

Previous wording

Case-related expenditures ineligible for inclusion in asset cost increased for the three months ended June 30, 2026 and decreased for the six months ended June 30, 2026. The period-over-period changes reflect the level of such 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.

Current wording

Case-related expenditures ineligible for inclusion in asset cost increased for the three months ended September 30, 2026 and decreased for the nine months ended September 30, 2026. The period-over-period changes reflect the level of such 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.

Previous wording

Claimant in litigation 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 $6.0 million and $2.9 million of the total case-related expenditures ineligible for inclusion in asset cost for the three months ended June 30, 2026 and 2025, respectively, and a credit of $36.7 million and an expense of $7.2 million for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Claimant in litigation 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$3.6 million and $2.2 million of the total case-related expenditures ineligible for inclusion in asset cost for the three months ended September 30, 2026 and 2025, respectively, and a credit of $33.1 million and an expense of $9.5 million for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

The decrease for the six months ended June 30, 2026 was primarily due to a $66.9 million credit associated with the YPF Judgment Reversal related to accrued contingent fee arrangements associated with the EP Funds, partially offset by an increase in other case costs. Such other case costs include $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. 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

The decrease for the nine months ended September 30, 2026 was primarily due to a $67.3 million credit associated with the YPF Judgment Reversal related to accrued contingent fee arrangements associated with the EP Funds, partially offset by an increase in other case costs. Such other case costs totaled $34.2 million for the nine months ended September 30, 2026, of which $23.0 million related 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. 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

As of June 30, 2026, we have deployed a cumulative $35.0 million of such costs in respect of capital provision assets that remain ongoing.

Current wording

As of September 30, 2026, we have deployed a cumulative $39.0 million of such costs in respect of capital provision assets that remain ongoing.

Previous wording

Other case-related expenditures ineligible for inclusion in asset cost 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 $2.0 million and $1.4 million of total case-related expenditures ineligible for inclusion in asset cost for the three months ended June 30, 2026 and 2025, respectively, and $2.4 million and $1.7 million for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Other case-related expenditures ineligible for inclusion in asset cost 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 $0.4 million and $1.6 million of total case-related expenditures ineligible for inclusion in asset cost for the three months ended September 30, 2026 and 2025, respectively, and $2.8 million and $3.2 million for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

Finance costs increased 46% and 46% for the three and six months ended June 30, 2026, respectively, primarily due to interest expense related to the issuance of the 2033 Notes in July 2025 and the 2034 Notes in January 2026, partially offset by the repayment at scheduled maturity of the aggregate outstanding principal amount of the 6.125% bonds due 2025 in August 2025 and the early redemption of the aggregate outstanding principal amount of the 2026 Bonds in January 2026.

Current wording

Finance costs increased 25% and 38% for the three and nine months ended September 30, 2026, respectively, primarily due to interest expense related to the issuance of the 2033 Notes in July 2025 and the 2034 Notes in January 2026, partially offset by the repayment at scheduled maturity of the aggregate outstanding principal amount of the 6.125% bonds due 2025 in August 2025 and the early redemption of the aggregate outstanding principal amount of the 2026 Bonds in January 2026.

Previous wording

Foreign currency transactions (gains)/losses and other expenses were gains of $0.4 million for the three months ended June 30, 2026, due to the minimal impact of foreign currency exchange rate movements.

Current wording

Foreign currency transactions (gains)/losses and other expenses were losses of $2.5 million for the three months ended September 30, 2026, due to the impact of foreign currency exchange rate movements.

Previous wording

Foreign currency transactions (gains)/losses and other expenses were losses of $15.3 million for the six months ended June 30, 2026. The period-over-period change was primarily driven by the realization during the three months ended March 31, 2026, upon the redemption of the 2026 Bonds, of accumulated foreign currency losses previously recorded in other comprehensive income.

Current wording

Foreign currency transactions (gains)/losses and other expenses were losses of $17.8 million for the nine months ended September 30, 2026. The period-over-period change was primarily driven by the realization during the three months ended March 31, 2026, upon the redemption of the 2026 Bonds, of accumulated foreign currency losses previously recorded in other comprehensive income.

Previous wording

Provision from income taxes decreased 2% for the three months ended June 30, 2026, primarily reflecting changes in the mix of earnings across taxing jurisdictions and the related tax effects, including changes in the valuation allowance. Cash taxes paid were $6.4 million and $20.8 million for the three months ended June 30, 2026 and 2025, respectively.

Current wording

Provision for income taxes increased 135% for the three months ended September 30, 2026, primarily reflecting changes in the mix of earnings across taxing jurisdictions and the related tax effects, including changes in the valuation allowance. Cash taxes paid were $0.1 million for the three months ended September 30, 2026. There were no cash taxes paid for the three months ended September 30, 2025.

Previous wording

Provision for income taxes decreased 83% for the six months ended June 30, 2026, primarily reflecting changes in the mix of earnings across taxing jurisdictions and the related tax effects, including changes in the valuation allowance. Cash taxes paid were $7.3 million and $21.2 million for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Provision for income taxes decreased 31% for the nine months ended September 30, 2026, primarily reflecting changes in the mix of earnings across taxing jurisdictions and the related tax effects, including changes in the valuation allowance. Cash taxes paid were $7.4 million and $21.2 million for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

Net income/(loss) attributable to non-controlling interests decreased 73% for the six months ended June 30, 2026, primarily reflecting period-over-period non-controlling interests’ share of (i) the decrease in capital provision income and (ii) the increase in operating expense. See “Capital provision income/(loss)” above for additional information with respect to the period-over-period change in the different components of capital provision income.

Current wording

Net income/(loss) attributable to non-controlling interests increased for the three months ended September 30, 2026, primarily reflecting non-controlling interests’ share of the increase in capital provision income period-over-period. See “Capital provision income/(loss)” above for additional information with respect to the period-over-period change in the different components of capital provision income.

Previous wording

Net income/(loss) attributable to non-controlling interests decreased 57% for the three months ended June 30, 2026, primarily reflecting non-controlling interests’ share of the decrease in capital provision income period-over-period. See “Capital provision income/(loss)” above for additional information with respect to the period-over-period change in the different components of capital provision income.

Current wording

Net income/(loss) attributable to non-controlling interests decreased 21% for the nine months ended September 30, 2026, primarily reflecting non-controlling interests’ share of the decrease in capital provision income period-over-period. See “Capital provision income/(loss)” above for additional information with respect to the period-over-period change in the different components of capital provision income.

Previous wording

Cash and cash equivalents increased 23% and marketable securities decreased 44%, in each case, as of June 30, 2026. The net increase in cash and cash equivalents and marketable securities primarily reflects the issuance of the 2034 Notes and the proceeds received from capital provision assets, partially offset by (i) the redemption of the 2026 Bonds, (ii) the funding of capital provision assets and (iii) the impact from third-party net capital distributions.

Current wording

Cash and cash equivalents decreased 18% and marketable securities decreased 25%, in each case, as of September 30, 2026. The net decrease in cash and cash equivalents and marketable securities primarily reflects (i) the redemption of the 2026 Bonds and the 2028 Notes, (ii) the funding of capital provision assets and (iii) the impact from third-party net capital distributions, partially offset by the issuance of the 2029 Notes and the 2034 Notes, and the proceeds received from capital provision assets.

Previous wording

Other assets increased 11% as of June 30, 2026, primarily due to tax prepayments and the acquisitions of equity method and other investments.

Current wording

Other assets increased 5% as of September 30, 2026, primarily due to the acquisitions of equity method and other investments.

Previous wording

Due from settlement of capital provision assets decreased 26% as of June 30, 2026, primarily due to the relative level of new realizations, offset by the collection of receivables, during the six months ended June 30, 2026. Of the $164.8 million of due from settlement of capital provision assets receivables outstanding as of December 31, 2025, 62% was collected in cash during 2026.

Current wording

Due from settlement of capital provision assets decreased 27% as of September 30, 2026, primarily due to the relative level of new realizations, offset by the collection of receivables, during the nine months ended September 30, 2026. Of the $164.8 million of due from settlement of capital provision assets receivables outstanding as of December 31, 2025, 65% was collected in cash during 2026.

Previous wording

Capital provision assets decreased 43% as of June 30, 2026, primarily due to the YPF Judgment Reversal and the impact of realizations, partially offset by continued deployments into capital provision assets.

Current wording

Capital provision assets decreased 41% as of September 30, 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 $3.2 billion, the aggregate deployed cost was $2.6 billion and the aggregate unrealized gains were $0.6 billion, in each case, as of June 30, 2026. The increase of $67.8 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 and six months ended June 30, 2026 as compared to the three and six months ended June 30, 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).

Current wording

On a consolidated basis, the aggregate fair value of our capital provision assets was $3.3 billion, the aggregate deployed cost was $2.6 billion and the aggregate unrealized gains were $0.7 billion, in each case, as of September 30, 2026. The increase of $96.8 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 and nine months ended September 30, 2026 as compared to the three and nine months ended September 30, 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 $2.3 billion, the aggregate deployed cost was $1.9 billion and the aggregate unrealized gains were $0.4 billion, in each case, as of June 30, 2026. The increase of $44.1 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).

Current wording

Within total segments (Burford-only), the aggregate fair value of our capital provision assets was $2.5 billion, the aggregate deployed cost was $1.9 billion and the aggregate unrealized gains were $0.5 billion, in each case, as of September 30, 2026. The increase of $78.2 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).