Burford Capital Reports 168% Revenue Growth to $118.9 Million in Latest Quarter

Burford Capital Limited reported significant financial growth in its latest quarterly results, with total revenues reaching $118.9 million for the three months ended March 31, 2025, a 168% increase from $44.3 million in the same period last year. This surge was primarily driven by a substantial rise in capital provision income, which amounted to $131.5 million, compared to $40.8 million in the previous year. The company also recorded a net income of $36.9 million, a stark contrast to the net loss of $17.5 million reported in the first quarter of 2024. The increase in profitability was attributed to higher fair value adjustments and net realized gains from capital provision assets.

Operating expenses also rose, totaling $41.1 million, up 36% from $30.1 million in the prior year. This increase was largely due to higher compensation-related accruals and case-related expenditures that were not eligible for inclusion in asset costs. Despite the rise in expenses, the operating income surged to $77.8 million, compared to $14.2 million in the same quarter of 2024, reflecting a 449% increase. The company’s effective tax rate for the quarter was 17%, compared to a benefit from income taxes of 7% in the previous year.

In terms of operational metrics, Burford's capital provision assets increased to $5.3 billion, up from $5.2 billion at the end of 2024. The company reported $288.8 million in realizations during the quarter, significantly higher than the $113 million realized in the same period last year. The number of capital provision assets funded directly by Burford's balance sheet rose to 228, with an additional seven assets held through the Advantage Fund. The company also noted a decrease in due from settlement of capital provision assets, which fell by 44% to $102.6 million, primarily due to cash received from realizations.

Looking ahead, Burford Capital expressed optimism about its growth trajectory, citing a strong pipeline of new commitments and a resilient business model that is less affected by broader economic conditions. The company continues to focus on large, complex disputes, which it believes will drive future revenue growth. Additionally, Burford plans to maintain its strategy of opportunistic debt issuance to support its growth and liquidity needs. The company’s management remains confident in its ability to navigate market challenges and capitalize on emerging opportunities in the legal finance sector.