Burford Capital Reports 1Q26 Net Loss of $(1.63)B Due to YPF Write-Down
Burford Capital reported a significant net loss for the first quarter of 2026, with a net loss attributable to shareholders of $(1,632) million. This was primarily driven by a substantial non-cash charge related to the YPF loss on appeal, leading to a $(1,476) million impact on pre-tax net income on a Burford-only basis and a revised fair value of $93 million for YPF-related assets. Despite the loss, the company highlighted its robust business, ample liquidity with over $700 million cash on hand, and an expectation of around $280 million in cash from its portfolio year-to-date. Burford remains optimistic about a positive arbitration outcome for the YPF-related assets and maintains its ambition to double the portfolio base by 2030.
Key Highlights
- Net loss attributable to Burford Capital Limited shareholders was $(1,632) million for 1Q26.
- Consolidated GAAP net loss was $(1,633) million for 1Q26.
- Fair value adjustment resulted in a $(1,476) million impact to pre-tax net income on a Burford-only basis.
- Revised fair value for YPF-related assets is $93 million (Burford-only) as of March 31, 2026.
- Company has over $700 million of cash on hand and expects $280 million in cash from portfolio year-to-date.
- Cumulative realizations for Principal Finance reached $3.84 billion as of March 31, 2026.
- Principal Finance portfolio (ex-YPF) fair value is $2.137 billion, a 22% mark-up on deployed cost.
- Historical ROIC for Principal Finance concluded assets is 82%.