Burford Capital Reports 20% Revenue Growth and 64% Increase in Net Income for Q2 2025

Burford Capital Limited reported significant financial performance improvements in its latest 10-Q filing for the quarter ending June 30, 2025. The company achieved total revenues of $191.3 million for the three months ended June 30, 2025, marking a 20% increase from $159.7 million in the same period last year. For the first half of 2025, revenues surged by 52% to $310.1 million, compared to $203.9 million in the first half of 2024. The increase was primarily driven by a rise in capital provision income, which reached $224.2 million, up from $157.7 million year-over-year, reflecting higher fair value adjustments.

The company also reported a net income attributable to Burford Capital Limited shareholders of $88.3 million for the second quarter of 2025, a 64% increase from $53.7 million in the prior year. For the first half of 2025, net income soared to $119.2 million, compared to just $23.8 million in the same period of 2024. This substantial growth in profitability was attributed to increased capital provision income and effective management of operating expenses, which rose by 29% to $49.1 million in the second quarter, largely due to higher share-based compensation and case-related expenditures.

In terms of operational developments, Burford Capital's capital provision assets increased to $5.5 billion as of June 30, 2025, up from $5.2 billion at the end of 2024. The company reported a 6% increase in capital provision assets, driven by fair value gains and continued deployments. The number of assets funded directly by Burford's balance sheet rose to 234, with six additional assets held through the Advantage Fund. The company also noted a significant increase in undrawn commitments, which reached $2.1 billion, reflecting a 4% increase from the previous period.

Looking ahead, Burford Capital expressed optimism about its growth trajectory, citing a strong pipeline of potential legal finance opportunities. The company remains focused on large, complex disputes, which are less correlated with broader economic conditions. Management indicated that they expect continued access to corporate debt capital markets, supported by recent credit rating upgrades. However, they acknowledged potential risks, including adverse litigation outcomes and market conditions that could impact future performance. The company plans to maintain its strategic focus on expanding its capital provision assets while managing operational costs effectively.