Burford Capital Reports Q2 Profit Rise, New Capital Raise

Burford Capital reported a 33% increase in Q2 net income to $105.2mln, with revenue up 20% to $191.3mln. Pretax income rose to $109.7mln, and cash receipts were $48mln, down from $107mln YoY. Debt increased to $1.78bln, but the debt-to-net tangible equity ratio improved to 0.7 times from 0.8 times. CEO Christopher Bogart commented on the strength of demand and the company's pipeline.

Burford Capital Limited (BUR) reported a 33% increase in Q2 net income to $105.2 million, with revenue up 20% to $191.3 million. Pretax income rose to $109.7 million, and cash receipts were $48 million, down from $107 million year-over-year (YoY). Debt increased to $1.78 billion, but the debt-to-net tangible equity ratio improved to 0.7 times from 0.8 times.

CEO Christopher Bogart highlighted the strength of demand and the company's pipeline, noting a 71% year-to-date growth in new business commitments compared to 2024. Bogart also commented on the successful $500 million debt issuance, which was completed after the quarter with strong market support and rapid execution. The debt issuance provided a favorable cost of capital, especially compared to competitors.

The company's progress on the YPF litigation was also noted, with a tentative oral argument date in October for the oral argument of the main appeal. A specific victory in New York was reported, with a motion granted for the turnover of Argentina's YPF shares.

Financial results were also detailed, with total revenues up 280 million year-to-date compared to 2024, and net income rising $120 million compared to $24 million. Earnings per share (EPS) were $0.53, close to 5x the same period last year. Portfolio growth and a favorable cost of debt at 7.4% with a weighted average maturity of 5.2 years were emphasized.

The outlook for the company is positive, with management stating that the growth in new business and portfolio base is exceeding the level needed to meet longer-term commitments. Despite the strong results, management cautioned on disclosure, emphasizing the need to balance investor updates with legal sensitivities.

References:
[1] https://seekingalpha.com/news/4482306-burford-signals-robust-portfolio-growth-as-new-business-commitments-surge-71-percent-year-to
[2] https://www.marketscreener.com/news/burford-capital-q2-earnings-revenue-rise-ce7c5edfdc8ff227