Burford Capital (NYSE:BUR) Announces Quarterly Earnings Results

Key Points

• Burford Capital reported a Q1 EPS loss of $0.17, missing analyst expectations of a $0.18 profit, and revenue also came in well below estimates.
• The company took a large non-cash write-down on its YPF asset after a court reversal, but said it has already realized more than $100 million in cash profit and will pursue an en banc appeal and arbitration.
• Despite the setback, Burford said its core litigation-finance business remains strong, with 237 active assets, about $3.8 billion in cumulative cash realizations, and strong liquidity of roughly $740 million in cash and marketable securities.

Burford Capital (NYSE:BUR - Get Free Report) released its earnings results on Friday. The company reported ($0.17) earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.35), reports. The company had revenue of ($2,492.27) million for the quarter, compared to analysts' expectations of $136.10 million. Burford Capital had a net margin of 15.14% and a return on equity of 1.97%.

Here are the key takeaways from Burford Capital's conference call:

• Burford took a substantial non‑cash write‑down on the YPF asset after a 2–1 Second Circuit reversal, while noting it has realized a cash profit of more than $100 million; the company will file an en banc petition and pivot to arbitration, which management expects will take years to resolve.
• The core litigation‑finance portfolio is large and diversified (237 active assets, roughly 900 cases) and has generated $3.8 billion of cash realizations to date, with management modeling more than $5 billion of additional cash (ex‑YPF) and visibility to about $280 million of cash receipts in 2026 so far.
• Liquidity remains strong with about $740 million of cash and marketable securities after a $500 million January debt raise and no maturities until 2028, but reported leverage (debt/equity ≈ 3.5x) exceeds the company’s prior comfort level and the 2.0x incurrence test, so management plans gradual deleveraging via growth and cash harvesting.
• Origination and growth momentum continues — Q1 had $133 million of definitive commitments and $108 million of deployments, supported by more than £1 billion of undrawn definitive commitments and ~£600 million of discretionary capacity, which management says will add material future cash flow each year.

Burford Capital Price Performance

Shares of BUR traded down $0.01 during mid-day trading on Friday, hitting $5.16. The company's stock had a trading volume of 5,042,908 shares, compared to its average volume of 2,993,839. The company has a current ratio of 10.93, a quick ratio of 10.93 and a debt-to-equity ratio of 0.68. Burford Capital has a 1-year low of $3.59 and a 1-year high of $15.10. The firm has a market capitalization of $1.13 billion, a P/E ratio of 19.09 and a beta of 1.28. The firm has a 50-day simple moving average of $6.20 and a 200 day simple moving average of $8.27.

Burford Capital Dividend Announcement

The company also recently disclosed a dividend, which will be paid on Friday, June 12th. Investors of record on Friday, May 22nd will be given a $0.0625 dividend. This represents a yield of 147.0%. The ex-dividend date is Friday, May 22nd. Burford Capital's dividend payout ratio (DPR) is 44.44%.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on BUR. Weiss Ratings reissued a "sell (d+)" rating on shares of Burford Capital in a research report on Friday, March 27th. Zacks Research lowered Burford Capital from a "hold" rating to a "strong sell" rating in a research note on Monday, March 2nd. Bank of America initiated coverage on Burford Capital in a research note on Wednesday, February 18th. They issued a "buy" rating on the stock. Finally, Wedbush reissued a "neutral" rating and issued a $4.75 price objective (down from $6.00) on shares of Burford Capital in a report on Monday, March 30th. Three equities research analysts have rated the stock with a Buy rating and two have given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $12.00.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of BUR. Vident Advisory LLC raised its holdings in Burford Capital by 4.8% in the third quarter. Vident Advisory LLC now owns 33,158 shares of the company's stock valued at $397,000 after buying an additional 1,514 shares during the period. GWN Securities Inc. grew its holdings in shares of Burford Capital by 15.3% during the fourth quarter. GWN Securities Inc. now owns 12,697 shares of the company's stock valued at $113,000 after purchasing an additional 1,687 shares during the last quarter. California State Teachers Retirement System increased its holdings in shares of Burford Capital by 1.4% in the 3rd quarter. California State Teachers Retirement System now owns 187,646 shares of the company's stock worth $2,244,000 after acquiring an additional 2,651 shares during the period. Amundi raised its stake in shares of Burford Capital by 1.3% during the second quarter. Amundi now owns 243,022 shares of the company's stock valued at $3,269,000 after purchasing an additional 3,085 shares in the last quarter. Finally, Strs Ohio bought a new position in Burford Capital during the 1st quarter valued at $55,000.

Burford Capital Company Profile

Burford Capital NYSE: BUR is a leading global finance firm that specializes in litigation and arbitration funding, risk management, and asset recovery. The company provides capital to law firms and corporate clients to finance legal fees and associated costs in commercial disputes. In exchange for funding, Burford shares in any awards or settlements, enabling clients to pursue meritorious claims without bearing upfront legal expenses.

Founded in 2009 by Christopher Bogart, Burford was among the first firms to establish a dedicated litigation finance business.

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