Financial Performance - Beneficient reported revenues of 4.4millionforQ3fiscal2025,asignificantincreasefrom(10.2) million in Q3 fiscal 2024, with total revenues for the nine months ended December 31, 2024, reaching 23.0millioncomparedto(55.7) million in the prior year[7]. - GAAP revenues for Q3 2025 were 4,419,000,adecreaseof48.4(10,235,000)[20]. - Adjusted revenues for Q3 2025 were 4,427,000,down49.38,456,000 in Q3 2024[20]. - Total revenues for the three months ended December 31, 2024, were 4,419,000,adecreasefrom10,235,000 in the same period of 2023[45]. - For the nine months ended December 31, 2024, total revenues reached 23,026,000,withadjustedrevenuesof23,572,000[50]. Operating Expenses and Income - Operating expenses decreased by 98% to 13.9millioninQ3fiscal2025,downfrom905.7 million in Q3 fiscal 2024, which included a non-cash goodwill impairment of 883.2million[7].−GAAPoperatinglossforQ32025was(9,513,000), an improvement of 30.6% from (915,951,000)inQ32024[20].−AdjustedoperatingincomefortheninemonthsendedDecember31,2024,was13.9 million, compared to 15.8millionintheprioryearperiod,reflectinglowerrevenueduetodecreasedNAVofalternativeassets[16].−OperatingincomeforthethreemonthsendedDecember31,2024,wasalossof9,513,000, compared to a loss of 915,951,000inthesameperiodof2023[45].−AdjustedoperatingincomeforthethreemonthsendedDecember31,2024,wasalossof7,301,000, reflecting ongoing operational challenges[47]. Net Income and Loss - For Fiscal Q3 2025, the net loss attributable to Ben's common shareholders was 8,639,000,comparedtoanetincomeof12,914,000 in Q2 2025 and a net loss of 542,166,000inQ32024[33].−Year−to−dateFiscal2025,thenetlossattributabletoBen′scommonshareholdersreached1,781,521,000, compared to a loss of 2,029,424,000inthesameperiodofFiscal2024[33].−NetincomefortheninemonthsendedDecember31,2024,was43,831,000, compared to a net loss of 2,462,606,000forthesameperiodin2023[45].−Thecompanyreportedanetlossattributabletocommonshareholdersof(8,639,000) for the three months ended December 31, 2024, compared to a net loss of (542,166,000)inthesameperiodof2023[45].AssetsandLiabilities−TotalassetsasofDecember31,2024,were400,012,000, an increase of 8.6% from 368,501,000asofMarch31,2024[24].−CashandcashequivalentsasofDecember31,2024,were4.1 million, with total debt of 122.9million[22].−Totalliabilitiesdecreasedto295,226,000 as of December 31, 2024, from 309,567,000asofMarch31,2024[46].−Thecompany’saccumulateddeficitimprovedto(2,007,272,000) as of December 31, 2024, from (2,059,214,000)asofMarch31,2024[46].EquityandInvestments−Beneficient′spermanentequityincreasedby35 million through a re-designation of certain preferred equity, improving from a deficit of 148.3milliontoapositive14.3 million as of December 31, 2024[12]. - The company reported a total equity of 14,260,000asofDecember31,2024,withatangiblebookvalueof91,772,000[53]. - The loan portfolio as of December 31, 2024, was supported by a diversified alternative asset collateral portfolio with a gross loan balance of 586millionandanetloanbalanceof261 million after an allowance for credit losses of 325million[12].ProposedTransactionsandFutureOutlook−TheproposedacquisitionofMercantileBankfor1.5 million is expected to enhance Beneficient's digital asset market solutions and generate additional cash flow in calendar 2025[12]. - The company announced a proposed transaction to revise the liquidation priority of Beneficient Company Holdings, L.P., which is expected to provide $9.2 million of tangible book value to public company stockholders[12]. - Forward-looking statements indicate potential market growth and operational scaling, contingent on successful execution of the proposed transactions[43]. Regulatory and Compliance - The subsidiary, Beneficient Fiduciary Financial, received its charter under the Kansas TEFFI Act, indicating regulatory compliance and oversight[37]. - The company will file a preliminary proxy statement with the SEC regarding an amendment to increase authorized shares of Class B Common Stock[39]. Non-GAAP Financial Measures - The company emphasizes the importance of non-GAAP financial measures to provide a clearer understanding of its operating performance[54]. - Adjusted revenue excludes mark-to-market adjustments on related party equity securities, with adjusted segment revenues attributable to Ben's equity holders being the same as "adjusted revenues" related to Ben Liquidity, Ben Custody, and Corporate/Other Business Segments[55]. - Adjusted operating income (loss) excludes various adjustments including credit losses on related party debt securities and non-cash asset impairment, with adjusted segment operating income (loss) attributable to Ben's equity holders being consistent with these adjustments[56]. - Non-GAAP financial measures should not be considered as substitutes for GAAP revenues or operating income (loss), and cash flows not reflected in adjusted operating income (loss) can be significant[58].
