SUMMARY
On an adjusted basis, BENF reported a net loss of ($1.02) per Class A share based on our calculations vs. our ($0.15) estimate. The miss primarily reflected higher-than-expected operating expenses and lower weighted-average shares outstanding for the quarter. Lowering our F2026 (Mar) and F2027 adjusted EPS estimates from ($0.44)/($0.24) to ($1.61)/($0.50). No change to our $2.00 price target.
Unique business model, with sustainable competitive advantages
Growth – shifting into gear
Exposure to optimized alternative asset portfolio
OUTLOOK
While we still see considerable upside potential for the stock over time, we recognize a meaningful upward revaluation likely necessitates sustained growth in loan origination volumes driving an infle…
SUMMARY
On an adjusted basis, BENF reported a net loss of ($1.02) per Class A share based on our calculations vs. our ($0.15) estimate. The miss primarily reflected higher-than-expected operating expenses and lower weighted-average shares outstanding for the quarter. Lowering our F2026 (Mar) and F2027 adjusted EPS estimates from ($0.44)/($0.24) to ($1.61)/($0.50). No change to our $2.00 price target.
Unique business model, with sustainable competitive advantages
Growth – shifting into gear
Exposure to optimized alternative asset portfolio
OUTLOOK
While we still see considerable upside potential for the stock over time, we recognize a meaningful upward revaluation likely necessitates sustained growth in loan origination volumes driving an inflection in profitability
HISTORICAL STOCK PRICE
Beneficient Price
Beneficient price | Beneficient Quote
Actual vs Estimate
SCR
Image Source: SCR
F1Q26 EARNINGS: ADJUSTED OPERATING INCOME SHORTFAL
Post-market close on 10/20/25, Beneficient reported F1Q26 (June) earnings results and filed the company’s Quarterly Report of Form 10-Q. On a GAAP basis, BENF reported a net loss of $7.19 per Class A diluted share for F1Q26 versus net income of $12.11 per share for F1Q25. The year-over-year variance primarily related to less favorable GAAP revenue trends as well as a $62.8 million arbitration loss charge in F1Q26 compared to a $55.0 million release of a loss contingency accrual in the year-ago quarter.
BENF reported ($12.6) million of GAAP revenues in F1Q26 compared to $10.0 million in the prior-year period. The year-over-year decline primarily reflected investment losses driven by changes in the NAV of investments in alternative assets held by certain of the Customer ExAlt Trusts.
GAAP operating expenses totaled $80.0 million in F1Q26 compared to ($34.3) million for the prior-year period. The year-over-year variance largely reflected a $62.8 million arbitration loss charge in F1Q26 compared to a $55.0 million release of a loss contingency accrual in the year-ago quarter. Excluding non-recurring items, operating expenses totaled $17.2 million for the most recent quarter, or essentially flat relative to the same period of fiscal 2025.
Adjusted segment revenues attributable to BENF equity holders comprising Ben Liquidity interest income, Ben Custody fees, and Corporate & Other totaled $13.1 million for F1Q26, down 8% from the prior quarter’s level. While Ben Liquidity interest income increased by 4% on a sequential basis, Ben Custody fees were down 22% on a sequential-quarter basis – consistent with lower NAVs of custodied assets given dispositions, distributions, and unrealized losses partially offset by new originations.