Segment reporting

9 Months Ended

Sep. 30, 2025

ASC Subtopic 280-10—Segment Reporting establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available. The chief operating decision maker (the “CODM”), who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Executive Officer and the Chief Financial Officer, together.

The CODM assesses the performance of the operating segments based on segment income/(loss) before income taxes, which consists of the significant measures of the reportable segments’ financial performance that include segment revenues, consisting of capital provision income/(loss) plus/less third-party interests in capital provision income, asset management income/(loss), marketable securities income/(loss) and interest and other income/(loss), less segment operating expenses, consisting of compensation and benefits, general, administrative and other expenses and case-related expenditures ineligible for inclusion in asset cost. The CODM uses this metric to assess operating segment performance, for purposes of making operating decisions and assessing financial performance, which informs the CODM’s allocation of resources. The Group excludes the proportional operating results that are attributable to third-party limited partners in its private funds,

partners and minority investors, as the CODM does not consider them for the purposes of making decisions to allocate resources among operating segments or to assess operating segment performance. Although these amounts are excluded from segment income/(loss) before income taxes, they are included in reported consolidated income/(loss) before income taxes and are included in the reconciliation that follows.

The Group’s computation of segment income/(loss) before income taxes may not be comparable to other similarly titled measures computed by other companies because they do not all calculate segment income/(loss) before income taxes in the same fashion.

Operating revenues directly associated with each segment are included in determining its operating results. Operating and other expenses that are not directly attributable to a particular segment are based upon allocation methodologies, including time estimates and other relevant usage measures. Due to the integrated structure of the Group’s business, certain costs incurred by one segment may benefit the other segment. A segment may use the information produced by another segment without incurring an intersegment charge or an intersegment income.

The CODM does not review information regarding total assets on an operating segment basis but rather on a total segments (Burford-only) basis. The accounting policies for segment reporting are the same as for the Group as a whole.

The Group has two operating segments that are also its reportable segments and provide legal finance products and services to the Group’s clients: (i) Principal Finance and (ii) Asset Management and Other Services. The Principal Finance segment allocates capital to legal finance assets from the Company’s balance sheet, primarily as capital provision assets, and in limited scope through interests in private funds managed by the Company. The Asset Management and Other Services segment manages legal finance assets on behalf of third-party investors, and the Company provides other services to the legal industry for both of which it receives fees.

Beginning for the year ended December 31, 2024, the Group renamed its Capital Provision segment to Principal Finance and allocated revenue, expenses and assets from other corporate to the Group’s two reportable segments with no change to the Group’s total segments (Burford-only) numbers. The change in the Group’s allocation methodology as of December 31, 2024 was due to the amounts relating to these operating and non-operating activities previously presented as other corporate, forming part of what is used internally to measure and evaluate the performance of the reportable segments. As a result of this change, the Group also recast certain previously reported amounts to conform with the change in allocation of revenue, expenses and assets to each reportable segment as noted below.

The tables below set forth certain information with respect to the Group’s unaudited condensed consolidated statements of operations by reportable segment for the periods indicated.


	Three months ended September 30, 2025
							Reconciliation
($ in thousands)	Principal Finance		Asset Management and Other Services		Total segments (Burford-only)		Reconciling items(1)		Total consolidated
Capital provision income/(loss)	$	62,060	$	—	$	62,060	$	18,008	$	80,068
Plus/(Less): Third-party interests in capital provision assets	—		—		—		(19,718)		(19,718)
Asset management income/(loss)	—		(168)		(168)		2,715		2,547
Marketable securities income/(loss) and interest	6,681		—		6,681		105		6,786
Other income/(loss)	—		120		120		—		120
Total revenues	68,741		(48)		68,693		1,110		69,803

Compensation and benefits	24,930		5,766		30,696		—		30,696
General, administrative and other	8,578		1,865		10,443		84		10,527
Case-related expenditures ineligible for inclusion in asset cost	1,586		—		1,586		2,207		3,793
Operating expenses	35,093		7,632		42,725		2,291		45,016

Other expenses
Finance costs	41,549		—		41,549		—		41,549
Foreign currency transactions (gains)/losses and other expenses	(148)		(52)		(200)		(67)		(267)
Total other expenses	41,401		(52)		41,349		(67)		41,282

Income/(loss) before income taxes	(7,753)		(7,628)		(15,381)		(1,114)		(16,495)
1. Reconciling items include the proportional operating results that are attributable to third-party limited partners and minority investors in consolidated entities, including BOF-C, the Advantage Fund, Colorado, the EP Funds and other entities.


	Three months ended September 30, 2024
							Reconciliation
($ in thousands)	Principal Finance		Asset Management and Other Services		Total segments (Burford-only)		Reconciling items(1)		Total consolidated
Capital provision income/(loss)	$	204,961	$	—	$	204,961	$	66,027	$	270,988
Plus/(Less): Third-party interests in capital provision assets	—		—		—		(35,152)		(35,152)
Asset management income/(loss)	—		11,110		11,110		(7,963)		3,147
Marketable securities income/(loss) and interest	7,988		—		7,988		169		8,157
Other income/(loss)	—		1,974		1,974		—		1,974
Total revenues	212,949		13,084		226,033		23,081		249,114

Compensation and benefits	31,457		5,171		36,628		—		36,628
General, administrative and other	7,543		1,660		9,203		127		9,330
Case-related expenditures ineligible for inclusion in asset cost	180		—		180		755		935
Operating expenses	39,180		6,831		46,011		882		46,893

Other expenses
Finance costs	34,399		—		34,399		—		34,399
Foreign currency transactions (gains)/losses and other expenses	(1,488)		—		(1,488)		(22)		(1,510)
Total other expenses	32,911		—		32,911		(22)		32,889

Income/(loss) before income taxes	140,858		6,253		147,111		22,221		169,332
1. Reconciling items include the proportional operating results that are attributable to third-party limited partners and minority investors in consolidated entities, including BOF-C, the Advantage Fund, Colorado and other entities.

For the three months ended September 30, 2024, the Group recast $8.0 million of marketable securities income/(loss) and interest, $2.7 million of operating expenses, $0.2 million of reduction in finance costs and $(1.5) million of foreign currency transactions (gains)/losses and other expenses from other corporate to the Principal Finance segment. In addition, the Group recast $0.5 million of reduction in operating expenses from other corporate to the Asset Management and Other Services segment and $0.6 million of finance costs from the Asset Management and Other Services segment to the Principal Finance segment.


	Nine months ended September 30, 2025
							Reconciliation
($ in thousands)	Principal Finance		Asset Management and Other Services		Total segments (Burford-only)		Reconciling items(1)		Total consolidated
Capital provision income/(loss)	$	308,420	$	—	$	308,420	$	127,328	$	435,748
Plus/(Less): Third-party interests in capital provision assets	—		—		—		(83,771)		(83,771)
Asset management income/(loss)	—		20,781		20,781		(15,347)		5,434
Marketable securities income/(loss) and interest	21,923		—		21,923		247		22,170
Other income/(loss)	—		367		367		—		367
Total revenues	330,343		21,148		351,491		28,457		379,948

Compensation and benefits	76,077		17,886		93,963		—		93,963
General, administrative and other	23,186		5,043		28,229		300		28,529
Case-related expenditures ineligible for inclusion in asset cost	6,168		—		6,168		6,522		12,690
Operating expenses	105,431		22,929		128,360		6,822		135,182

Other expenses
Finance costs	109,408		—		109,408		—		109,408
Foreign currency transactions (gains)/losses and other expenses	(2,231)		(52)		(2,283)		(89)		(2,372)
Total other expenses	107,177		(52)		107,125		(89)		107,036

Income/(loss) before income taxes	117,735		(1,729)		116,006		21,724		137,730
1. Reconciling items include the proportional operating results that are attributable to third-party limited partners and minority investors in consolidated entities, including BOF-C, the Advantage Fund, Colorado, the EP Funds and other entities.


	Nine months ended September 30, 2024
							Reconciliation
($ in thousands)	Principal Finance		Asset Management and Other Services		Total segments (Burford-only)		Reconciling items(1)		Total consolidated
Capital provision income/(loss)	$	342,224	$	—	$	342,224	$	127,270	$	469,494
Plus/(Less): Third-party interests in capital provision assets	—		—		—		(46,640)		(46,640)
Asset management income/(loss)	—		29,270		29,270		(22,616)		6,654
Marketable securities income/(loss) and interest	20,686		—		20,686		360		21,046
Other income/(loss)	—		2,508		2,508		—		2,508
Total revenues	362,910		31,778		394,688		58,374		453,062

Compensation and benefits	73,481		14,145		87,626		—		87,626
General, administrative and other	19,632		4,318		23,950		572		24,522
Case-related expenditures ineligible for inclusion in asset cost	1,401		—		1,401		1,633		3,034
Operating expenses	94,514		18,463		112,977		2,205		115,182

Other expenses
Finance costs	101,432		—		101,432		—		101,432
Foreign currency transactions (gains)/losses and other expenses	(934)		—		(934)		(17)		(951)
Total other expenses	100,498		—		100,498		(17)		100,481

Income/(loss) before income taxes	167,898		13,315		181,213		56,186		237,399
1. Reconciling items include the proportional operating results that are attributable to third-party limited partners and minority investors in consolidated entities, including BOF-C, the Advantage Fund, Colorado and other entities.

For the nine months ended September 30, 2024, the Group recast $20.7 million of marketable securities income/(loss) and interest, $13.6 million of operating expenses, $1.9 million of finance costs and $(0.9) million of foreign currency transactions (gains)/losses and other expenses from other corporate to the Principal Finance segment. In addition, the Group recast $1.6 million of operating expenses from other corporate to the Asset Management and Other Services segment and $1.7 million of finance costs from the Asset Management and Other Services segment to the Principal Finance segment.

The table below sets forth specified line items with respect to the Group’s unaudited condensed consolidated statements of financial condition by reportable segment as of the dates indicated.


	September 30, 2025
							Reconciliation
($ in thousands)	Principal Finance		Asset Management and Other Services		Total segments (Burford-only)		Reconciling items(1)		Total consolidated
Cash and cash equivalents and marketable securities	$	727,154	$	12,899	$	740,053	$	16,682	$	756,735
Other assets	$	24,642	$	171,102	$	195,744	$	(116,849)	$	78,895
Due from settlement of capital provision assets	$	96,760	$	—	$	96,760	$	—	$	96,760
Capital provision assets	$	3,902,667	$	—	$	3,902,667	$	1,712,638	$	5,615,305
Total assets	$	4,862,940	$	210,026	$	5,072,966	$	1,612,471	$	6,685,437
1. Reconciling items include the proportional operating results that are attributable to third-party limited partners and minority investors in consolidated entities, including BOF-C, the Advantage Fund, Colorado, the EP Funds and other entities.


	December 31, 2024
							Reconciliation
($ in thousands)	Principal Finance		Asset Management and Other Services		Total segments (Burford-only)		Reconciling items(1)		Total consolidated
Cash and cash equivalents and marketable securities	$	508,031	$	12,650	$	520,681	$	28,269	$	548,950
Other assets	$	23,711	$	151,770	$	175,481	$	(114,475)	$	61,006
Due from settlement of capital provision assets	$	183,651	$	—	$	183,651	$	207	$	183,858
Capital provision assets	$	3,571,224	$	—	$	3,571,224	$	1,672,693	$	5,243,917
Total assets	$	4,397,954	$	190,377	$	4,588,331	$	1,586,694	$	6,175,025
1. Reconciling items include the proportional operating results that are attributable to third-party limited partners and minority investors in consolidated entities, including BOF-C, the Advantage Fund, Colorado and other entities.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Burford Capital Ltd 10-Q