BENF

By Tom Kerr, CFA NASDAQ: BENF READ THE FULL BENF RESEARCH REPORT 1st Quarter 2027 Results (period ending June 30, 2026) On August 14, 2026, Beneficient (NASDAQ: BENF) announced fiscal 1st quarter results for the period ending 6/30/26. Beneficient reported $212.5 million of investments at fair value as of June 30, 2026, up from $195.5 million at the end of the prior fiscal year (3/31/26). These investments support a $186.0 million net loan portfolio, compared with $169.7 million previously, indicating continued growth in the company’s lending platform and underlying collateral base. A major positive is the substantial reduction in operating expenses. 1st quarter operating expenses fell 84.3% to $12.5 million, although the current period included $1.8 million of interest related to a loss-contingency accrual. Excluding these unusual items, operating expenses declined 37.4% to $10.8 million, from $17.2 million a year earlier. This sharp reduction in the underlying cost structure could provide meaningful operating leverage as the company grows its loan portfolio and generates additional fee and interest income. Beneficient is also continuing to monetize assets and expand its alternative-asset financing platform. Asset sales and equity redemptions from the Customer ExAlt Trusts generated $57.6 million of cumulative gross proceeds from inception through June 30, 2026, which have been used to reduce debt and fund working capital. In addition, new primary capital transactions with two funds have added more than $16 million of alternative-asset interests to the collateral supporting the ExAlt loan portfolio. Importantly, because ExAlt Holdings is a direct subsidiary of Beneficient and is not structurally subordinated to BCH, earnings from these loans and related fees are expected to accrue directly to Beneficient’s common shareholders. CEO James Silk stated, “Our first-quarter results for FY 2027 showed an extension in our operating strategy with the announcement of our first collateral management services engagement providing monitoring and reporting services on a portfolio of professionally managed alternative assets for a Texas state-chartered bank. Paired with over $16 million in new primary capital commitments, a streamlined cost structure, and an enhanced collateral base, we continue to strengthen our balance sheet and position the company for sustainable growth.” As of June 30, 2026, the company had cash and cash equivalents of $5.6 million and total debt of $96.8 million. Distributions received from alternative assets and other securities held in custody totaled $1.9 million in the 1st quarter, compared to $3.7 million for the same period of fiscal 2026. Additionally, during the quarter, the company received proceeds of $5.0 million from the disposition of certain investments in alternative assets. Subsequent to June 30, 2026, the company issued two promissory notes totaling $4.0 million, resulting in proceeds of approximately $3.8 million, which have been used to provide working capital. Valuation Our adjusted DCF-derived calculation is approximately $9.00 per share. We also provide a simplified P/E multiple based on company segments. Based on our FY 2027 revenue and pre-tax income estimates, we arrive at a target price of $9.00 per share. A material rebound in loan origination volumes (and therefore revenue and earnings power) likely remains dependent on further clarity on the company’s debt profile and capital structure post-resolution of litigation involving BENF’s former CEO. We continue to believe longer-term investors can capitalize on the current depressed stock price and realize sizeable returns over time, as the market increasingly appreciates BENF’s unique business model and outsized growth prospects. Investment Thesis Beneficient leverages a proprietary FinTech platform and an innovative/fiduciary trust structure branded as the ExAlt Plan to provide early exit liquidity solutions and custody/data analytics services to holders of alternative assets, including medium-to-high net worth (MHNW) individuals and small-to-mid-sized institutions (STMIs). In addition, the company delivers primary capital solutions to fundraising General Partners (GPs). 1. Unique business model, with sustainable competitive advantages Beneficient provides liquidity to investors holding alternative assets through a trust-based structure, allowing customers to exchange these interests for cash, BENF stock, or both. Its Ben AltAccess® platform integrates liquidity, trust, custody, and analytics services, with financing overseen by a Kansas-regulated trust subsidiary. 2. Renewed Growth Expected We expect origination volumes to reaccelerate as growing alternative AUM and muted distributions drive increasing demand for liquidity. Beneficient targets the underserved MHNW and STMI segments, where investors value price, cost, and timing certainty, with more than $2 trillion of U.S. assets and estimated annual liquidity demand exceeding $100 billion. Beneficient is also expanding its addressable market through GP Solutions, the Preferred Liquidity Program, and Primary Capital Program, targeting funds with liquidity and fundraising needs. With more than $400 billion of potential new business across these programs, even modest win rates could drive meaningful transaction volumes and TBV/earnings growth. 3. Exposure to optimized alternative asset portfolio Beneficient has built a diversified balance sheet primarily consisting of loans collateralized by alternative assets and direct investments across asset classes, sectors, and geographies. Continued portfolio growth should drive higher loan interest income while increasing Ben Liquidity deal flow, supporting revenue and operating income growth. SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you. Please visit our website for additional information on Zacks SCR. DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. 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Company Enters into First Collateral Management Services Engagement, Closes More than $16 Million in Primary Capital Commitments DALLAS, Aug. 14, 2026 (GLOBE NEWSWIRE) -- Beneficient (NASDAQ: BENF) (“Ben” or the “Company”), a technology-enabled platform providing exit opportunities and primary capital solutions and related trust and custody services to holders of alternative assets, today reported its financial results for the fiscal 2027 first quarter, which ended June 30, 2026. Highlights of the quarter include: Entering into its first collateral management services engagement with a Texas state-chartered bank that is expected to generate recurring annual fee revenue through independent reporting and monitoring of complex alternative asset-backed financing transactions for financial institution customers The closing of two primary capital commitments totaling more than $16 million A strengthened balance sheet through a reduction in operating expenses and debt and an increase in collateral and working capital Commenting on the fiscal 2027 first quarter results, Chief Executive Officer James Silk said: “Our first-quarter results for FY 2027 showed an extension in our operating strategy with the announcement of our first collateral management services engagement providing monitoring and reporting services on a portfolio of professionally managed alternative assets for a Texas state-chartered bank. Paired with over $16 million in new primary capital commitments, a streamlined cost structure, and an enhanced collateral base, we continue to strengthen our balance sheet and position the company for sustainable growth.” First Quarter Fiscal 2027 and Recent Highlights (for the quarter ended June 30, 2026 or as noted): Reported investments with a fair value of $212.5 million, an increase from $195.5 million at the end of our prior fiscal year, which served as collateral for Ben Liquidity’s net loan portfolio of $186.0 million and $169.7 million, respectively. Operating expenses decreased 84.3% to $12.5 million in the first quarter of fiscal 2027, which included interest associated with a recognized loss contingency accrual of $1.8 million, as compared to $80.0 million in the first quarter of fiscal 2026, which included the recognition of a loss contingency accrual, including interest, totaling $62.8 million. Excluding the loss contingency accrual along with associated interest expense on the loss contingency in each period, as applicable, operating expenses(1) declined 37.4% to $10.8 million in the first quarter of fiscal 2027 as compared to $17.2 million in the same period of fiscal 2026. Further completed asset sales or equity redemptions of certain investments held by the Customer ExAlt Trusts, resulting in an aggregate of $57.6 million in gross proceeds on a cumulative basis since inception in our prior fiscal year through June 30, 2026, which have been used to pay down certain debt and provide working capital. To-date in fiscal 2027, entered into additional primary capital transactions with two funds, which has increased the collateral for the Company’s ExAlt loan portfolio by more than $16 million of interests in alternative assets. ExAlt Holdings provided financing to the ExAlt Plan™ to fund these new liquidity transactions. ExAlt Holdings is a direct subsidiary of Beneficient, and as a result, it is not structurally subordinated to Beneficient Company Holdings, L.P. (BCH), and therefore would attribute the net earnings on such loans and related fees to the common stockholders of Beneficient. Subsequent to June 30, 2026, issued two promissory notes totaling $4 million, resulting in proceeds of approximately $3.8 million, which have been used to provide working capital. Loan Portfolio As a result of executing on our business plan of providing financing for liquidity, or early investment exits, for alternative asset marketplace participants, Ben’s balance sheet is primarily comprised of loans collateralized by a well-diversified alternative asset portfolio that is expected to grow as Ben successfully executes on its core business. Ben’s balance sheet strategy for ExAlt Loan origination is based on an endowment-style portfolio model for the fiduciary financings we make by utilizing our patent-pending computer implemented technologies branded as OptimumAlt. Our OptimumAlt endowment model balance sheet approach guides diversification of our fiduciary financings across seven asset classes of alternative assets, over 11 industry sectors in which alternative asset managers invest, and at least six countrywide exposures and multiple vintages of dates of investment into the private funds and companies. As of June 30, 2026, Ben’s loan portfolio was supported by a highly diversified alternative asset collateral portfolio providing diversification across approximately 140 private market funds and approximately 380 investments across various asset classes, industry sectors and geographies. This portfolio includes exposure to some of the most exciting, sought after private company names worldwide, including: A leading Latin American pharmacy, health, and beauty retailer with an integrated physical and digital store network. A technology-enabled reforestation company using drones, seed science, and services to restore forests at scale following wildfires and other disturbances. A mobile banking services provider. A privately owned express intercity passenger rail system operator and owner of associated real estate. A developer of an integrated e-commerce and fulfillment platform to sell wine direct-to-consumers. Figure 1: Portfolio Diversification Diversification Using Principal Loan Balance, Net of Allowance for Credit Losses As of June 30, 2026, the charts below present the ExAlt Loan portfolio’s relative exposure by certain characteristics (percentages determined by aggregate fiduciary ExAlt Loan portfolio principal balance net of allowance for credit losses, which includes the exposure to interests in certain of our former affiliates composing part of the Fiduciary Loan Portfolio). As of June 30, 2026. The chart represents the characteristics of professionally managed funds and investments in the Collateral portfolio, which is comprised of a diverse portfolio of direct and indirect interests (through various investment vehicles, including, limited partnership interests and private and public equity and debt securities, which include our and our affiliates’ or our former affiliates’ securities), primarily in third-party, professionally managed private funds and investments. Loan balances used to calculate the percentages reported in the pie charts are loan balances, net of any allowance for credit losses, and as of June 30, 2026, the total allowance for credit losses was $411 million, for a total gross loan balance of $597 million and a loan balance net of allowance for credit losses of $186 million. Business Segments: First Quarter Fiscal 2027 Ben Liquidity Ben Liquidity offers simple, rapid and cost-effective liquidity products through the use of our proprietary financing and trust structure, or the “Customer ExAlt Trusts,” which facilitate the exchange of a customer’s alternative assets for consideration. Ben Liquidity recognized $8.2 million of interest income for the fiscal first quarter, an increase of 4.0% from the quarter ended March 31, 2026, primarily due to the new origination in April 2026 of approximately $8.8 million and the effects of compounding interest on the remaining loans. Operating income for the fiscal first quarter was $7.4 million, an increase from an operating loss of $19.7 million for the quarter ended March 31, 2026. The increase in operating performance was due to lower intersegment credit losses in the current fiscal period as compared to the quarter ended March 31, 2026 due to positive increases in NAV arising from adjustments to the relative share of the respective fund’s NAV based on updated financial information received from the funds’ investment manager or sponsor during the current period. Ben Custody Ben Custody provides full-service trust and custody administration services to the trustees of certain of the Customer ExAlt Trusts, which own the exchanged alternative assets following liquidity transactions in exchange for fees payable quarterly calculated as a percentage of assets in custody. NAV of alternative assets and other securities held in custody by Ben Custody during the fiscal first quarter was $234.6 million as of June 30, 2026, compared to $219.8 million as of March 31, 2026. The increase in investments in alternative assets since March 31, 2026 was principally related to upward adjustments of NAV as reported by the investment managers or general partners or other fair value adjustments totaling $15.9 million and new origination activity totaling $8.8 million, offset by asset sales and other distributions of $8.1 million. Revenues applicable to Ben Custody were $2.5 million for the fiscal first quarter, compared to $2.5 million for the quarter ended March 31, 2026. Revenues remained steady sequentially due to revenues recognized related to new originations during the current quarter offsetting the decrease in beginning of the period NAV for the current period as compared to the beginning of the period NAV for the quarter ended March 31, 2026. Revenues for Ben Custody are computed using the NAV of alternative assets and other securities held in custody at the beginning of each period. Operating income for the fiscal first quarter increased to $1.4 million from $0.5 million for the quarter ended March 31, 2026. The increase was primarily attributable to $1.0 million higher provision for credit loss for the quarter ended March 31, 2026, while no such provision for credit loss was required in the current quarter. Capital and Liquidity As of June 30, 2026, the Company had cash and cash equivalents of $5.6 million and total debt of $96.8 million. Distributions received from alternative assets and other securities held in custody totaled $1.9 million for the three months ended June 30, 2026, compared to $3.7 million for the same period of fiscal 2026. Additionally, during three months ended June 30, 2026, we received proceeds of $5.0 million from the disposition of certain investments in alternative assets. Total investments (at fair value) of $212.5 million at June 30, 2026 supported Ben Liquidity's loan portfolio. (1) Represents a non-GAAP financial measure. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations. Consolidated Fiscal First Quarter Results Table 1 below presents a summary of selected unaudited consolidated operating financial information. NM - Not meaningful. (1) Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders and Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders are non-GAAP financial measures. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations. (2) Segment financial information attributable to Ben’s equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), and adjusted operating income (loss)) that impacts Ben’s Equity Holders. “Ben’s Equity Holders” refers to the holders of Beneficient Class A and Class B common stock and Series B Preferred Stock as well as holders of interests in BCH, which represent noncontrolling interests. For a description of noncontrolling interests, see Item 2 of our Quarterly Report on Form 10-Q for the three months ended June 30, 2026, and Reconciliation of Business Segment Information Attributable to Ben’s Equity Holders to Net Income Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determine the net income (loss) attributable to Ben’s Equity Holders. See further information in table 5 and Non-GAAP Reconciliations. (1) Periods presented have been adjusted to reflect the 1-for-8 reverse stock split on December 15, 2025. Table 2 below presents a summary of selected unaudited consolidated balance sheet information. Business Segment Information Attributable to Ben's Equity Holders(1) Table 3 below presents unaudited segment revenues and segment operating income (loss) for business segments attributable to Ben's equity holders. NM - Not meaningful. (1) Segment financial information attributable to Ben’s equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), and adjusted operating income (loss)) that impacts Ben’s Equity Holders. “Ben’s Equity Holders” refers to the holders of Beneficient Class A and Class B common stock and Series B Preferred Stock as well as holders of interests in BCH, which represent noncontrolling interests. For a description of noncontrolling interests, see Item 2 of our Quarterly Report on Form 10-Q for the three months ended June 30, 2026, and Reconciliation of Business Segment Information Attributable to Ben’s Equity Holders to Net Income Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determine the net income (loss) attributable to Ben’s Equity Holders. See further information in table 5 and Non-GAAP Reconciliations. Adjusted Business Segment Information Attributable to Ben's Equity Holders(2) Table 4 below presents unaudited adjusted segment revenue and adjusted segment operating income (loss) for business segments attributable to Ben's equity holders. NM - Not meaningful.(1) Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders and Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders are non-GAAP financial measures. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations. (2) Segment financial information attributable to Ben’s equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), and adjusted operating income (loss)) that impacts Ben’s Equity Holders. “Ben’s Equity Holders” refers to the holders of Beneficient Class A and Class B common stock and Series B Preferred Stock as well as holders of interests in BCH, which represent noncontrolling interests. For a description of noncontrolling interests, see Item 2 of our Quarterly Report on Form 10-Q for the three months ended June 30, 2026, and Reconciliation of Business Segment Information Attributable to Ben’s Equity Holders to Net Income Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determine the net income (loss) attributable to Ben’s Equity Holders. See further information in table 5 and Non-GAAP Reconciliations. Reconciliation of Business Segment Information Attributable to Ben's Equity Holders to Net Income (Loss) Attributable to Ben Common Shareholders Table 5 below presents reconciliation of operating income (loss) by business segment attributable to Ben's Equity Holders to net income (loss) attributable to Ben common shareholders. About Beneficient Beneficient (Nasdaq: BENF) – Ben, for short – is on a mission to democratize the global alternative asset investment market by providing traditionally underserved investors − mid-to-high net worth individuals, small-to-midsized institutions and General Partners seeking exit options, anchor commitments and valued-added services for their funds− with solutions that could help them unlock the value in their alternative assets. Its subsidiary, Beneficient Fiduciary Financial, L.L.C., received its charter under the State of Kansas’ Technology-Enabled Fiduciary Financial Institution (TEFFI) Act and is subject to regulatory oversight by the Office of the State Bank Commissioner. For more information, visit www.trustben.com or follow us on LinkedIn. Contacts Investors:Matt Kreps/214-597-8200/[email protected] Wetherington/214-284-1199/[email protected]@beneficient.com Not an Offer of Securities The information in this communication is for informational purposes only and shall not constitute, or form a part of, an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities. The securities that are the subject of the Transactions have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Disclaimer and Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to, among other things, demand for our solutions in the alternative asset industry, opportunities for market growth, our ability to identify and negotiate transactions, diversification and size of our loan portfolio, growth of our collateral management services and our ability to scale operations and provide shareholder value. These forward-looking statements are generally identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and, in each case, their negative or other various or comparable terminology. These forward-looking statements reflect our views with respect to future events as of the date of this document and are based on our management’s current expectations, estimates, forecasts, projections, assumptions, beliefs and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to, our ability to consummate liquidity transactions on terms desirable for the Company, or at all, our ability to maintain compliance with the continued listing requirements of the Nasdaq Stock Market, LLC (the “Nasdaq Listing Rules”), our ability to cure any future deficiencies in compliance with any of the Nasdaq Listing Rules, the outcome and timing of the remaining GWG Holdings, Inc. litigation and related legacy matters, risks related to the substantial costs and diversion of management’s attention and resources due to these matters, the risk that the Company’s collateral management services do not perform as expected or do not generate revenue, and the risk factors that are described under the section titled “Risk Factors” in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the U.S. Securities and Exchange Commission (the “SEC”). These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document and in our SEC filings. We expressly disclaim any obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law. Table 6: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (1) Periods presented have been adjusted to reflect the 1-for-8 reverse stock split on December 15, 2025. Table 7: CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION Table 8: Non-GAAP Reconciliations (1) Includes legal and professional fees related to lawsuits. (1) Includes legal and professional fees related to lawsuits. (1) Includes legal and professional fees related to lawsuits. Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders, Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders, and Adjusted Operating Expenses are non-GAAP financial measures. We present these non-GAAP financial measures because we believe it helps investors understand underlying trends in our business and facilitates an understanding of our operating performance from period to period because it facilitates a comparison of our recurring core business operating results. The non-GAAP financial measures are intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with, U.S. GAAP. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of these non-GAAP financial measures may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate such items in the same way. We define adjusted revenue as revenue adjusted to exclude the effect of mark-to-market adjustments on related party equity securities that were acquired both prior to and during the Collateral Swap, which on August 1, 2023, became interests in the GWG Wind Down Trust and mark-to-market adjustments on derivative asset related to appreciation forfeiture for shares issued in the limited conversion of BCH Preferred A-1 to Class A common stock. Adjusted Segment Revenues attributable to Ben's Equity Holders is the same as "adjusted revenues" related to the aggregate of the Ben Liquidity, Ben Custody, and Corporate/Other Business Segments, which are the segments that impact the net income (loss) attributable to all equity holders of Beneficient, including equity holders of Beneficient's subsidiary, BCH. Adjusted operating income (loss) represents GAAP operating income (loss), adjusted to exclude the effect of the adjustments to revenue as described above, credit losses on related party available-for-sale debt securities that were acquired in the Collateral Swap which on August 1, 2023, became interests in the GWG Wind Down Trust, and receivables from a related party that filed for bankruptcy and certain notes receivables originated during our formative transactions, non-cash asset impairment, share-based compensation expense, and legal, professional services, and public relations costs related to the GWG Holdings bankruptcy, lawsuits, and certain employee matters, including fees & loss contingency accruals (releases), including post judgment interest incurred in arbitration with a former director. Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders is the same as "adjusted operating income (loss)" related to the aggregate of the Ben Liquidity, Ben Custody, and Corporate/Other Business Segments, which are the segments that impact the net income (loss) attributable to all equity holders of Beneficient, including equity holders of Beneficient's subsidiary, BCH. Adjusted operating expenses represent GAAP operating expenses, adjusted to exclude loss contingency accruals (releases), including post judgment interest incurred in arbitration with a former director, and non-cash asset impairment. These non-GAAP financial measures are not a measure of performance or liquidity calculated in accordance with U.S. GAAP. They are unaudited and should not be considered an alternative to, or more meaningful than, GAAP revenues, GAAP operating expenses, or GAAP operating income (loss) as an indicator of our operating performance. Uses of cash flows that are not reflected in adjusted operating income (loss) or adjusted segment operating income (loss) attributable to Ben's Equity Holders include capital expenditures, interest payments, debt principal repayments, and other expenses, which can be significant. As a result, adjusted operating income (loss) and/or adjusted segment operating income (loss) attributable to Ben's Equity Holders should not be considered as a measure of our liquidity. Because of these limitations, Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders, Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders, and Adjusted Operating Expenses should not be considered in isolation or as a substitute for performance measures calculated in accordance with U.S. GAAP. We compensate for these limitations by relying primarily on our U.S. GAAP results and using Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders, Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders, and Adjusted Operating Expenses on a supplemental basis. You should review the reconciliation of these non-GAAP financial measures set forth above and not rely on any single financial measure to evaluate our business. A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2b169c85-5181-4713-a58d-82f657a3ef4d

Transformative Fiscal 2026 Focused on Addressing Legacy Issues While Strengthening Foundation of the Company Beneficient Clears Litigation Hurdles as it Positions to Capitalize on New Opportunities for Growth DALLAS, June 29, 2026 (GLOBE NEWSWIRE) -- Beneficient (NASDAQ: BENF) (“Ben” or the “Company”), a technology-enabled platform providing exit opportunities and primary capital solutions and related trust and custody services to holders of alternative assets, today reported its financial results for the fiscal 2026 fourth quarter and fiscal year, which ended March 31, 2026. Highlights of the year include: Resolved GWG Holdings, Inc. litigation and regained Nasdaq compliance Generated over $50 million in gross proceeds from asset sales Fully paid off HH-BDH Credit Agreement principal balance (excluding $1.1 million for deferred interest and fees) Executed over $23 million in new fiduciary financings, including those closed subsequent to year end Established initial collateral management services relationship Commenting on the fiscal 2026 results, Chief Executive Officer James Silk said: “Fiscal 2026 was a year of significant progress for Beneficient. We took important steps to address legacy challenges, improve our financial position and sharpen our focus on the business opportunities ahead. With the completion of our leadership transition and continued growth in new business and progress on litigation matters, we believe Beneficient is better positioned to execute on our strategy.” “Our focus now is on building the business by expanding our Primary Commitment Program, growing our collateral management services, and commercializing our AI-technology to support new opportunities. We believe the foundation we have built allows us to pursue a broader set of opportunities and create long-term value for our stakeholders.” Fourth Quarter Fiscal 2026 and Recent Highlights (for the quarter ended March 31, 2026 or as noted): Reported investments with a fair value of $195.5 million, from $291.4 million at the end of our prior fiscal year, which served as collateral for Ben Liquidity's net loan portfolio of $169.7 million and $244.1 million, at March 31, 2026 and 2025, respectively. Subsequent to March 31, 2026, entered into an additional primary capital transaction with a fund managed by a general partner, which will increase the collateral for the Company’s ExAlt loan portfolio by approximately $8.8 million. Operating expenses increased 22% to $17.5 million in the fourth quarter of fiscal 2026, as compared to $14.3 million of operating expenses in the fourth quarter of fiscal 2025. The current year quarter included non-cash intangible asset impairment of $3.1 million while there was not a similar charge in the prior year quarter. For fiscal year 2026, operating expenses were $127.4 million, which includes the accrual of a loss contingency of $62.8 million, additional interest expense on the loss contingency of $5.1 million, and non-cash intangible asset impairment of $3.1 million. For fiscal year 2025, operating expenses were $16.2 million, which includes the release of a loss contingency accrual of $55.0 million and non-cash goodwill impairment of $3.7 million. Excluding the non-cash goodwill impairment and the loss contingency accrual in each period, as applicable, adjusted operating expenses(1) declined 11% in the fourth quarter of fiscal 2026 to $12.7 million, as compared to $14.3 million in the same period of fiscal 2025. For fiscal year 2026, excluding the non-cash goodwill impairment and the loss contingency accrual (release) in each period, adjusted operating expenses(1) declined 16% to $56.4 million, as compared to $67.5 million for fiscal year 2025. Further completed asset sales or equity redemptions of certain investments held by the Customer ExAlt Trusts, resulting in an aggregate of $51.5 million in gross proceeds through March 31, 2026, which was used to pay down certain debt and provide working capital. The Board of Directors named James Silk as CEO of Beneficient on June 24, 2026, removing the Interim CEO title that he has held since July 21, 2025. Announced on June 25, 2026 that one of its subsidiaries has entered into its first engagement to provide collateral management services for a Texas state-chartered bank in connection with a secured lending transaction. The engagement is expected to generate recurring fee revenue for the Company for the duration of the engagement and represents the first commercial deployment of Beneficient’s collateral management services offering. In addition to this press release and in the place of an earnings report webcast, a letter to shareholders from CEO James Silk has been issued about the Fiscal Year and the Company’s strategic direction. Loan Portfolio As a result of executing on our business plan of providing financing for liquidity, or early investment exits, for alternative asset marketplace participants, Ben’s balance sheet is primarily comprised of loans collateralized by a well-diversified alternative asset portfolio that is expected to grow as Ben successfully executes on its core business. Ben’s balance sheet strategy for ExAlt Loan origination is built on an endowment-style portfolio model for the fiduciary financings we make by utilizing our patent-pending computer implemented technologies branded as OptimumAlt. Our OptimumAlt endowment model balance sheet approach guides diversification of our fiduciary financings across seven asset classes of alternative assets, over 11 industry sectors in which alternative asset managers invest, and at least six countrywide exposures and multiple vintages of dates of investment into the private funds and companies. As of March 31, 2026, Ben’s loan portfolio was supported by a highly diversified alternative asset collateral portfolio providing diversification across approximately 140 private market funds and approximately 400 investments across various asset classes, industry sectors and geographies. This portfolio includes exposure to some of the most exciting, sought after private company names worldwide, including: A leading Latin American pharmacy, health, and beauty retailer with an integrated physical and digital store network. A technology-enabled reforestation company using drones, seed science, and services to restore forests at scale following wildfires and other disturbances. A mobile banking services provider. A privately owned express intercity passenger rail system operator and owner of associated real estate. A developer of an integrated e-commerce and fulfillment platform to sell wine direct-to-consumers. Figure 1: Portfolio Diversification Diversification Using Principal Loan Balance, Net of Allowance for Credit Losses As of March 31, 2026, the charts below present the ExAlt Loan portfolio’s relative exposure by certain characteristics (percentages determined by aggregate fiduciary ExAlt Loan portfolio principal balance net of allowance for credit losses, which includes the exposure to interests in certain of our former affiliates composing part of the Fiduciary Loan Portfolio). As of March 31, 2026. The chart represents the characteristics of professionally managed funds and investments in the Collateral portfolio, which is comprised of a diverse portfolio of direct and indirect interests (through various investment vehicles, including, limited partnership interests and private and public equity and debt securities, which include our and our affiliates’ or our former affiliates’ securities), primarily in third-party, professionally managed private funds and investments. Loan balances used to calculate the percentages reported in the pie charts are loan balances net of any allowance for credit losses, and as of March 31, 2026, the total allowance for credit losses was $414.4 million, for a total gross loan balance of $584.0 million and a loan balance net of allowance for credit losses of $169.7 million. Business Segments: Fourth Quarter Fiscal 2026 Ben Liquidity Ben Liquidity offers simple, rapid and cost-effective liquidity products through the use of our proprietary financing and trust structure, or the “Customer ExAlt Trusts,” which facilitate the exchange of a customer’s alternative assets for consideration. Ben Liquidity recognized $7.9 million of interest income for the fiscal fourth quarter, down 3.5% from the quarter ended December 31, 2025, primarily due to a higher percentage of loans being placed on nonaccrual status and loan repayments primarily through asset sales proceeds, partially offset by the effects of compounding interest on the remaining loans. Operating loss for the fiscal fourth quarter was $19.7 million, a decline from an operating loss of $29.2 million for the quarter ended December 31, 2025. The improvement was due to lower intersegment credit losses and interest expense due to the prepayment of the outstanding principal under the HH-BDH Credit Agreement in the current fiscal period as compared to the quarter ended December 31, 2025 offset by the decline in revenues discussed above. Ben Custody Ben Custody provides full-service trust and custody administration services to the trustees of certain of the Customer ExAlt Trusts, which own the exchanged alternative assets following liquidity transactions in exchange for fees payable quarterly calculated as a percentage of assets in custody. NAV of alternative assets and other securities held in custody by Ben Custody during the fiscal fourth quarter was $219.8 million as of March 31, 2026, compared to $338.2 million as of March 31, 2025. The decrease was driven by dispositions of certain alternative assets, distributions and unrealized losses on existing assets, principally related to adjustments to the relative share held in custody of the respective fund’s NAV based on updated financial information received from the funds’ investment manager or sponsor during the period or the fair value for investments deemed probable to be sold at an amount that differs from NAV, offset by $14.8 million of new originations. Revenues applicable to Ben Custody were $2.5 million for the fourth fiscal quarter, compared to $2.9 million for the quarter ended December 31, 2025. The decline in revenues is a result of a lower amount of NAV of alternative assets and other securities held in custody at the beginning of each applicable period, when such fees are calculated. Operating income for the fourth fiscal quarter was $0.5 million, compared to an operating income of $2.0 million for the quarter ended December 31, 2025. The decrease was primarily due to $1.0 million higher provision for credit loss in the current period and coupled with the decline in revenues as discussed above. Business Segments: Year Ended Fiscal 2026 Ben Liquidity Ben Liquidity recognized $33.4 million of interest income for the year ended March 31, 2026, down 21.5% compared to the same period in 2025, primarily driven by lower loans, net of the allowance for credit losses, resulting from higher levels of non-accrual loans and loan prepayments, partially offset by new loans originated. Operating loss was $55.7 million for the year ended March 31, 2026 as compared to an operating loss of $12.8 million in the same period in 2025. The increase in the operating loss was partially a result of the lower revenues period over period plus an increase in intersegment credit losses in the current fiscal year as compared to the same period in the prior year. Ben Custody Ben Custody revenues were $12.7 million for the year ended March 31, 2026, down 40.9% compared to the prior year period, largely the result of lower NAV of alternative assets and other securities held in custody along with certain upfront intersegment fees that are amortized into revenues over time being fully recognized in a prior period. Operating income was $8.0 million for the year ended March 31, 2026 compared to operating income of $13.3 million in the same period in 2025, with the decrease in operating income a result of the decline in revenues in the current year discussed above offset partially by lower expenses in the current fiscal year due primarily to the prior fiscal year reflecting non-cash goodwill impairment of $3.4 million as compared to no such non-cash goodwill impairment in the current fiscal year. Adjusted operating income(1) for the year ended March 31, 2026 was $8.0 million, compared to adjusted operating income(1) of $18.5 million in the same period in 2025, with the decrease in adjusted operating income(1) primarily due to lower revenue related to lower NAV of alternative assets and other securities held in custody and higher operating expenses during the current fiscal year. Capital and Liquidity As of March 31, 2026, the Company had cash and cash equivalents of $2.5 million and debt of $96.8 million. Distributions received from alternative assets and other securities held in custody totaled $12.1 million for the year ended March 31, 2026 compared to $30.4 million for the prior year period. Additionally, during year ended March 31, 2026, we received proceeds of $51.5 million from the disposition of certain investments in alternative assets. Total investments (at fair value) of $195.5 million at March 31, 2026 supported Ben Liquidity's loan portfolio. (1) Represents a non-GAAP financial measure. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations. Consolidated Fiscal Fourth Quarter Results Table 1 below presents a summary of selected unaudited consolidated operating financial information. NM - Not meaningful. (1) Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders and Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders are non-GAAP financial measures. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations.(2) Segment financial information attributable to Ben’s equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), and adjusted operating income (loss)) that impacts Ben’s Equity Holders. Ben’s Equity Holders refers to the holders of Beneficient Class A and Class B common stock and Series B Preferred Stock as well as holders of interests in BCH which represent noncontrolling interests. For a description of noncontrolling interests, see Item 7 of our Annual Report on Form 10-K for the year ended March 31, 2026, and Reconciliation of Business Segment Information Attributable to Ben’s Equity Holders to Net Income (Loss) Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determine the net income (loss) attributable to Ben’s Equity Holders. See further information in table 5 and Non-GAAP Reconciliations.(3) Periods presented have been adjusted to reflect the 1-for-8 reverse stock split on December 15, 2025. Table 2 below presents a summary of selected unaudited consolidated balance sheet information. Business Segment Information Attributable to Ben's Equity Holders(1) Table 3 below presents unaudited segment revenues and segment operating income (loss) for business segments attributable to Ben's equity holders. NM - Not meaningful. (1) Segment financial information attributable to Ben’s equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), and adjusted operating income (loss)) that impacts Ben’s Equity Holders. Ben’s Equity Holders refers to the holders of Beneficient Class A and Class B common stock and Series B Preferred Stock as well as holders of interests in BCH which represent noncontrolling interests. For a description of noncontrolling interests, see Item 7 of our Annual Report on Form 10-K for the year ended March 31, 2026, and Reconciliation of Business Segment Information Attributable to Ben’s Equity Holders to Net Income (Loss) Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determine the net income (loss) attributable to Ben’s Equity Holders. See further information in table 5 and Non-GAAP Reconciliations. Adjusted Business Segment Information Attributable to Ben's Equity Holders(2) Table 4 below presents unaudited adjusted segment revenue and adjusted segment operating income (loss) for business segments attributable to Ben's equity holders. NM - Not meaningful. (1) Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders and Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders are non-GAAP financial measures. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations.(2) Segment financial information attributable to Ben’s equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), and adjusted operating income (loss)) that impacts Ben’s Equity Holders. Ben’s Equity Holders refers to the holders of Beneficient Class A and Class B common stock and Series B Preferred Stock as well as holders of interests in BCH which represent noncontrolling interests. For a description of noncontrolling interests, see Item 7 of our Annual Report on Form 10-K for the year ended March 31, 2026, and Reconciliation of Business Segment Information Attributable to Ben’s Equity Holders to Net Income (Loss) Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determine the net income (loss) attributable to Ben’s Equity Holders. See further information in table 5 and Non-GAAP Reconciliations. Reconciliation of Business Segment Information Attributable to Ben's Equity Holders to Net Income (Loss) Attributable to Ben Common Shareholders Table 5 below presents reconciliation of operating income (loss) by business segment attributable to Ben's Equity Holders to net income (loss) attributable to Ben common shareholders. About Beneficient Beneficient (Nasdaq: BENF) – Ben, for short – is on a mission to democratize the global alternative asset investment market by providing traditionally underserved investors − mid-to-high net worth individuals, small-to-midsized institutions and General Partners seeking exit options, anchor commitments and value-added services for their funds − with solutions that could help them unlock the value in their alternative assets. Its subsidiary, Beneficient Fiduciary Financial, L.L.C., received its charter under the State of Kansas’ Technology-Enabled Fiduciary Financial Institution (TEFFI) Act and is subject to regulatory oversight by the Office of the State Bank Commissioner. For more information, visit www.trustben.com or follow us on LinkedIn. Contacts Investors:Matt Kreps/214-597-8200 / [email protected] Michael Wetherington / 214-284-1199 / [email protected] [email protected] Not an Offer of Securities The information in this communication is for informational purposes only and shall not constitute, or form a part of, an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities. The securities that are the subject of the Transactions have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Disclaimer and Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to, among other things, demand for our solutions in the alternative asset industry, opportunities for market growth, our ability to identify and negotiate transactions, diversification and size of our loan portfolio, growth of our collateral management services and our ability to scale operations and provide shareholder value. These forward-looking statements are generally identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and, in each case, their negative or other various or comparable terminology. These forward-looking statements reflect our views with respect to future events as of the date of this document and are based on our management’s current expectations, estimates, forecasts, projections, assumptions, beliefs and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to, our ability to consummate liquidity transactions on terms desirable for the Company, or at all, our ability to maintain compliance with the Nasdaq continued listing requirements, our ability to cure any future deficiencies in compliance with any of the Nasdaq Listing Rules, the outcome and timing of the remaining GWG litigation and related legacy matters, risks related to the substantial costs and diversion of management’s attention and resources due to these matters, the risk that the Company’s collateral management services do not perform as expected or do not generate revenue, and the risk factors that are described under the section titled “Risk Factors” in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the SEC. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document and in our SEC filings. We expressly disclaim any obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law. Table 6: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (1) Periods presented have been adjusted to reflect the 1-for-8 reverse stock split on December 15, 2025. Table 7: CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (1) Periods presented have been adjusted to reflect the 1-for-8 reverse stock split on December 15, 2025. Table 8: Non-GAAP Reconciliations (1) Includes legal and professional fees related to lawsuits. (1) Includes legal and professional fees related to lawsuits. (1) Includes legal and professional fees related to lawsuits. (1) Includes legal and professional fees related to lawsuits. (1) Includes legal and professional fees related to lawsuits. Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders, Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders, and Adjusted Operating Expenses are non-GAAP financial measures. We present these non-GAAP financial measures because we believe it helps investors understand underlying trends in our business and facilitates an understanding of our operating performance from period to period because it facilitates a comparison of our recurring core business operating results. The non-GAAP financial measures are intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with, U.S. GAAP. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of these non-GAAP financial measures may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate such items in the same way. We define adjusted revenue as revenue adjusted to exclude the effect of mark-to-market adjustments on related party equity securities that were acquired both prior to and during the Collateral Swap, which on August 1, 2023, became interests in the GWG Wind Down Trust and mark-to-market adjustments on derivative asset related to appreciation forfeiture for shares issued in the limited conversion of BCH Preferred A-1 to Class A common stock. Adjusted Segment Revenues attributable to Ben's Equity Holders is the same as "adjusted revenues" related to the aggregate of the Ben Liquidity, Ben Custody, and Corporate/Other Business Segments, which are the segments that impact the net income (loss) attributable to all equity holders of Beneficient, including equity holders of Beneficient's subsidiary, BCH. Adjusted operating income (loss) represents GAAP operating income (loss), adjusted to exclude the effect of the adjustments to revenue as described above, credit losses on related party available-for-sale debt securities that were acquired in the Collateral Swap which on August 1, 2023, became interests in the GWG Wind Down Trust, and receivables from a related party that filed for bankruptcy and certain notes receivables originated during our formative transactions, non-cash asset impairment, share-based compensation expense, and legal, professional services, and public relations costs related to the GWG Holdings bankruptcy, lawsuits, and certain employee matters, including fees & loss contingency accruals (releases), including post judgment interest incurred in arbitration with a former director. Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders is the same as "adjusted operating income (loss)" related to the aggregate of the Ben Liquidity, Ben Custody, and Corporate/Other Business Segments, which are the segments that impact the net income (loss) attributable to all equity holders of Beneficient, including equity holders of Beneficient's subsidiary, BCH. Adjusted operating expenses represent GAAP operating expenses, adjusted to exclude loss contingency accruals (releases), including post judgment interest incurred in arbitration with a former director, and non-cash asset impairment. These non-GAAP financial measures are not a measure of performance or liquidity calculated in accordance with U.S. GAAP. They are unaudited and should not be considered an alternative to, or more meaningful than, GAAP revenues, GAAP operating expenses, or GAAP operating income (loss) as an indicator of our operating performance. Uses of cash flows that are not reflected in adjusted operating income (loss) or adjusted segment operating income (loss) attributable to Ben's Equity Holders include capital expenditures, interest payments, debt principal repayments, and other expenses, which can be significant. As a result, adjusted operating income (loss) and/or adjusted segment operating income (loss) attributable to Ben's Equity Holders should not be considered as a measure of our liquidity. Because of these limitations, Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders, Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders, and Adjusted Operating Expenses should not be considered in isolation or as a substitute for performance measures calculated in accordance with U.S. GAAP. We compensate for these limitations by relying primarily on our U.S. GAAP results and using Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders, Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders, and Adjusted Operating Expenses on a supplemental basis. You should review the reconciliation of these non-GAAP financial measures set forth above and not rely on any single financial measure to evaluate our business. A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/4170d6de-3275-4375-836d-62fc797f0075

By Michael Kim NASDAQ:BENF READ THE FULL BENF RESEARCH REPORT Post-market close on 2/17/26, Beneficient (NASDAQ:BENF) reported F3Q26 (Dec) earnings results and filed the company’s Quarterly Report on Form 10-Q. On a GAAP basis, BENF reported net income of $1.19 per Class A diluted share (on a split-adjusted basis) for F3Q26 versus a net loss of $10.60 per share for F3Q25. The year-over-year variance primarily reflected more favorable GAAP revenue associated with a fair value adjustment of a derivative asset related to the conversion of preferred to Class A common stock by former Chairman, Mr. Thomas Hicks, and Interim CEO, Mr. James Silk. Adjusted segment revenues attributable to BENF equity holders comprising Ben Liquidity interest income, Ben Custody fees, and Corporate & Other totaled $11.0 million for F3Q26, down 3.5% from the prior quarter’s level. Ben Liquidity interest income decreased by 3.6% on a sequential basis, while Ben Custody fees were down 4.4% compared to the prior quarter – consistent with lower NAVs of custodied assets given dispositions, distributions, and unrealized losses partially offset by new originations. BENF reported an adjusted segment operating loss attributable to BENF equity holders of $32.1 million for F3Q26 compared to a loss of $13.9 million in F3Q25. The unfavorable year-over-year trend was largely a function of a higher operating loss for the Ben Liquidity segment, as well as a step down in Ben Custody revenue/operating income, partially offset by lower corporate expenses. On an adjusted basis, Beneficient reported a net loss of $26.08 per Class A share versus our $0.18 estimate. Relative to our model, the per share miss was mostly a function of lower weighted-average shares outstanding for the quarter and higher Ben Liquidity credit losses. During the most recent quarter, BENF reported intersegment credit losses reflecting NAV write-downs and loan repayments related to asset sales, closing older positions linked to fund closures, and year-end marks. After updating our model for F3Q26 actuals, we are lowering our F2026 and F2027 split-adjusted EPS estimates. On an adjusted business segment attributable to BENF equity holders basis, we forecast net losses per Class A share of $36.86 in F2026 (Mar) followed by $0.89 in F2027 – compared to our prior split-adjusted $11.71 and $0.62 net loss per share estimates, respectively. Our downward revisions primarily reflect a flatter revenue trajectory combined with lower shares outstanding following the recent 1-for-8 reverse stock split effective 12/15/25. Looking ahead, the key revenue driver for Beneficient remains loan origination volumes, with the company generating interest income and related fees based on the level and growth of financing transactions, as well as the trajectory of underlying collateral over time. Turning to valuation, we are taking down our split-adjusted DCF-derived price target to $10 as a result of our lower earnings outlook. While cognizant a material rebound in loan origination volumes (and therefore revenue and earnings power) likely remains dependent on further clarity on the company’s debt profile and capital structure post-resolution of litigation involving BENF’s former CEO, we continue to believe longer-term investors can capitalize on the current depressed stock price and realize sizeable returns over time, as the market increasingly appreciates BENF’s unique business model and outsized growth prospects. Following our review of F3Q26 results and management’s post-quarter commentary, we highlight the following key takeaways: 1. Ongoing stabilization: To be sure, senior executives remain focused on simplifying the business model in terms of the core liquidity business, enhancing efficiency and transparency, and further streamlining the operating model and the balance sheet. Recent accomplishments included the resolution of all claims under the previously disclosed lawsuits relating to GWG Holdings, Inc., regaining Nasdaq listing compliance following the recent 1-for-8 reverse stock split, and the appointment of Peter Cangany, Jr. as BENF’s new Chairman following the untimely passing of former Chairman, Thomas Hicks. Looking ahead, pivoting from stabilization to growth likely necessitates resolution on claims over the validity of ~$120 million of debt owed to an entity related to the company’s former CEO (presumably in April), with management remaining focused on effecting additional liquidity/primary capital transactions to meet sustainable demand trends and further reinforce the efficacy of the business model in the near term ($14.8 million of new loan originations through the first three quarters of fiscal 2026). 2. Continuing to shore up capital: Turning to Beneficient’s balance sheet, the fair value of Customer ExAlt Trust investments totaled $206 million as of December 31, 2025, down from $291 million as of March 31, 2025. Investments on the balance sheet serve as collateral for Ben Liquidity's net loan portfolio ($188 million of alternative assets well diversified across asset classes, sectors, and geographies). While distributions from alternative/custodied assets remained muted ($3.5 million in F3Q26 following $4.1 million for F2Q26 and $3.7 million in F1Q26), senior officials continue to sell balance sheet assets to enhance cash flows and fund creditor payments and/or operating expenses. Since March 31, 2025, the company sold select Customer ExAlt Trust investments, generating $50.2 million of gross proceeds (with more sales to come, we believe). Finally, as of December 31, 2025, the company maintained $7.9 million of cash and cash equivalents and $100.3 million of total debt. 3. Operating leverage coming through: While meaningful revenue growth likely remains a function of reaccelerating loan origination volumes, operating expenses totaled $13.0 million for the most recent quarter (excluding non-recurring items), down from $13.9 million for F3Q25, with the year-over-year variance largely reflecting lower professional services and other expenses. Looking across the first nine months of fiscal 2026, recurring operating expenses were down 18% compared to the YTD period in F2025. Going forward, we look for further cost savings (though perhaps more modest in aggregate), with plenty of capacity to onboard additional assets (thereby implying high incremental margins). SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR. DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives payments totaling a maximum fee of up to $50,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.

This article first appeared on GuruFocus. Release Date: February 17, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Beneficient (NASDAQ:BENF) successfully regained full compliance with NASDAQ's continued listing requirements, which was a significant achievement given the circumstances. The company reduced adjusted operating expenses by 6.5% year-over-year and 18% year-to-date, excluding one-time and non-recurring expenses. Beneficient (NASDAQ:BENF) closed its first new GP primary commitment financing since June of the previous year, indicating continued market interest in its products. The company generated approximately $50 million in gross proceeds through asset sales and equity redemptions, which helped reduce debt and strengthen its financial position. Beneficient (NASDAQ:BENF) reached a final court-approved settlement related to the GWG Holdings litigation within the limits of its existing insurance policies, allowing it to focus more on growth. The resignation of the former CEO created challenges that required significant resources and management attention, impacting the company's ability to grow its investment portfolio. Beneficient (NASDAQ:BENF) reported a decrease in investments with a fair value of $206 million compared to $291 million at the end of the prior fiscal year. The company experienced a decline in operating performance due to higher inter-segment credit losses and asset sales transacting at lower prices. Adjusted revenues were negative for both the current quarter and year-to-date, indicating financial challenges. The company's loan portfolio faced a higher percentage of loans being placed on non-accrual status, affecting interest income. Warning! GuruFocus has detected 3 Warning Signs with BENF. Is BENF fairly valued? Test your thesis with our free DCF calculator. Q: Could you provide an update on how Beneficient is approaching channels like advisors, family offices, and private banks for the core liquidity platform? A: Interim CEO James Silk mentioned that the focus has been on stabilizing and developing the platform for rollout. The company is concentrating on family offices and advisor networks, and they are continuing to provide follow-up through their Alt Quote product, which offers quick access to preliminary interest indications on assets. Q: Regarding the litigation, is there any forward momentum or anything investors should be aware of from a balance sheet or debt perspective? A: James Silk stated that they are not commenting extensively on litigation. The former CEO's criminal trial is set for April 6th, and the company is preparing various options depending on the outcome. They plan to challenge the validity of approximately $120 million in debt related to the former CEO and may expand their litigation approach beyond just the debt. Q: Can you explain the operating loss in Ben Liquidity? Is it mainly due to asset sales or updated NAV values? A: CFO Greg Azel attributed the operating loss primarily to asset sales during the quarter, but also noted that updated financial information marks contributed to the loss. These are considered one-off instances due to the diversified portfolio. Q: What is the pipeline for liquidity transactions, and how is the momentum in the primary capital space with GPs? A: James Silk indicated that there have been ongoing discussions and inquiries, with a focus on following up on existing opportunities. The company has experienced positive interactions with counterparties and expects solid momentum, particularly as they move past the April period, which could provide clarity on obligations. Q: What are the near-term priorities for Beneficient going forward? A: James Silk emphasized that the market opportunity remains strong. The near-term priorities include resolving outstanding matters and demonstrating the business model's validity by executing transactions. The focus will be on structuring deals more efficiently and clearly communicating their impact on the bottom line. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Management successfully regained NASDAQ compliance by completing an annual audit and filing multiple periods of financials within a compressed timeframe. The company reached a final court-approved settlement regarding GWG Holdings litigation, staying within existing insurance policy limits to mitigate balance sheet impact. Operational efficiency improved through the implementation of an AI-enhanced services platform, contributing to an 18% year-to-date reduction in adjusted operating expenses. Strategic focus has shifted toward a 'stable base for growth' following the separation from the former CEO and the resolution of related administrative hurdles. The company generated $50 million in gross proceeds from asset sales and equity redemptions to systematically reduce debt, including a $27.5 million bank obligation. A new GP primary commitment financing closed in December, signaling a return to the core business strategy after a period of limited transaction activity. Management is actively pursuing the invalidation of over $100 million in debt purportedly owed to entities related to the former CEO. Future strategy focuses on broadening financing options and increasing capacity for loan portfolios backed by alternative assets. Management intends to leverage the AltQuote platform to streamline liquidity access for family offices and the advisor network. The company expects the April 2026 criminal trial of the former CEO to provide further clarity on outstanding obligations and potential legal recoveries. Strategic priorities include executing a 'handful of deals' in the near term to demonstrate the viability of a simplified, more efficient transaction model. Ongoing efforts are directed at further simplifying the capital structure to enhance long-term shareholder value and return profiles. GAAP revenues were positively impacted by a $44.1 million non-cash increase in the fair value of a derivative asset related to preferred stock conversion provisions. Ben Liquidity experienced an operating loss of $29.2 million, driven by intersegment credit losses from updated NAV data and asset sales transacting at lower prices. The company maintains a diversified collateral portfolio across approximately 150 private market funds and 430 individual investments. Total debt stands at $100.3 million, with approximately $96.6 million of that balance associated with entities related to the former CEO. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is prioritizing the family office and advisor network as primary growth channels. The AltQuote product is being positioned as a key digital entry point for providing preliminary indications of interest on assets. Losses were primarily attributed to asset sale activities and updated financial marks from GP-reported NAV updates. Management characterized these as largely one-off instances rather than systemic portfolio issues. The company is following up on a 'fair amount' of inquiries that were previously on hold during the period of financial non-compliance. The goal is to demonstrate the business model's validity through more efficiently structured deals that clearly attach to the bottom line. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Third quarter results show strengthened corporate foundation through cost management and increased operational efficiency DALLAS, Feb. 17, 2026 (GLOBE NEWSWIRE) -- Beneficient (NASDAQ: BENF) (“Ben” or the “Company”), a technology-enabled platform providing exit opportunities and primary capital solutions and related trust and custody services to holders of alternative assets, today reported its financial results for the fiscal 2026 third quarter, which ended December 31, 2025. Highlights of the quarter include: Resolved GWG Holdings, Inc. litigation and regained Nasdaq compliance Generated $50 million in gross proceeds from asset sales Fully paid off HH-BDH Credit Agreement principal balance (excluding $1.7 million for deferred interest and fees) Strengthened balance sheet and collateral base Commenting on the fiscal 2026 third quarter results, interim Chief Executive Officer James Silk said: “Our third-quarter results demonstrate that we have stabilized, focused and strengthened our business. We are especially pleased to have reached a final, court-approved settlement related to the GWG Holdings litigation, regained full compliance with Nasdaq’s listing requirements, and appointed Peter T. Cangany, Jr. as our new Chairman. These and other milestones represent a turning point which we believe will allow Ben to focus more fully on driving growth and enhancing the value of our liquidity solutions. “Throughout this process, we have remained disciplined in capital management and operational efficiency. Continued asset sales and equity redemptions generated $50 million in gross proceeds this year, allowing us to systematically reduce debt, including the HH-BDH Credit Agreement loans. With a stronger collateral base and reduced leverage, we are well positioned to serve customers and deliver long-term shareholder value.” Third Quarter Fiscal 2026 and Recent Highlights (for the quarter ended December 31, 2025 or as noted): Reported investments with a fair value of $205.8 million, a decrease from $291.4 million at the end of our prior fiscal year, which served as collateral for Ben Liquidity's net loan portfolio of $187.5 million and $244.1 million, respectively. Operating expenses increased 5.7% to $14.7 million in the third quarter of fiscal 2026, which included interest associated with a recognized loss contingency accrual of $1.7 million, as compared to $13.9 million in the third quarter of fiscal 2025. On a year-to-date basis, operating expenses for fiscal 2026 were $109.9 million, which included the accrual of a loss contingency of $62.8 million and additional interest expense on the loss contingency accrual of $3.4 million, as compared to $1.9 million in the same period of fiscal 2025, which included the release of a loss contingency accrual of $55.0 million and a non-cash goodwill impairment of $3.7 million. Excluding the non-cash goodwill impairment and the loss contingency accrual (release) along with associated interest expense on the loss contingency in each period, as applicable, operating expenses declined 6.5% to $13.0 million in the third quarter of fiscal 2026 as compared to $13.9 million in the same period of fiscal 2025. On a year-to-date basis, excluding the non-cash goodwill impairment, the loss contingency accrual (release), and associated interest expense on the loss contingency accrual in each period, as applicable, operating expenses were $43.7 million for the first three quarters of fiscal 2026 as compared to $53.2 million for the first three quarters of fiscal 2025. Further completed asset sales or equity redemptions of certain investments held by the Customer ExAlt Trusts, resulting in an aggregate of $50.2 million in gross proceeds on a year-to-date basis, which have been used to pay down certain debt, including the pay-off of the outstanding principal balance on the HH-BDH Credit Agreement in January 2026, and provide working capital. The Company still owes $1.7 million for interest and fees under the HH-BDH Credit Agreement, which the parties have agreed to defer. Effective December 15, 2025, the Company appointed Peter T. Cangany, Jr. as Chairman of the Board. Entered into an additional primary capital transaction with a fund managed by a general partner on December 31, 2025, which will increase the collateral for the Company’s ExAlt loan portfolio by more than $3 million of interests in alternative assets. Announced on January 5, 2026, that we were notified by Nasdaq that the Company had regained compliance with the minimum bid price requirement and the continued listing requirements for warrants. As a result, the Company was in full compliance with the Nasdaq Capital Market’s listing requirements. Subsequent to December 31, 2025, the United States District Court for the Northern District of Texas approved the previously disclosed agreement to settle all claims pending in that jurisdiction under the previously disclosed lawsuits relating to GWG Holdings, Inc. against the Company, its subsidiaries, and each of their current and former directors and officers. With this approval, the settlement is final in accordance with the terms of the settlement agreement. Loan Portfolio As a result of executing on our business plan of providing financing for liquidity, or early investment exits, for alternative asset marketplace participants, Ben’s balance sheet is primarily comprised of loans collateralized by a well- diversified alternative asset portfolio that is expected to grow as Ben successfully executes on its core business. Ben’s balance sheet strategy for ExAlt Loan origination is based on an endowment-style portfolio model for the fiduciary financings we make by utilizing our patent-pending computer implemented technologies branded as OptimumAlt. Our OptimumAlt endowment model balance sheet approach guides diversification of our fiduciary financings across seven asset classes of alternative assets, over 11 industry sectors in which alternative asset managers invest, and at least six countrywide exposures and multiple vintages of dates of investment into the private funds and companies. As of December 31, 2025, Ben’s loan portfolio was supported by a highly diversified alternative asset collateral portfolio providing diversification across approximately 150 private market funds and approximately 430 investments across various asset classes, industry sectors and geographies. This portfolio includes exposure to some of the most exciting, sought after private company names worldwide, including: A leading Latin American pharmacy, health, and beauty retailer with an integrated physical and digital store network. A technology-enabled reforestation company using drones, seed science, and services to restore forests at scale following wildfires and other disturbances. A mobile banking services provider. A privately owned express intercity passenger rail system operator and owner of associated real estate. A developer of an integrated e-commerce and fulfillment platform to sell wine direct-to-consumers. Figure 1: Portfolio Diversification Diversification Using Principal Loan Balance, Net of Allowance for Credit Losses As of December 31, 2025, the charts below present the ExAlt Loan portfolio’s relative exposure by certain characteristics (percentages determined by aggregate fiduciary ExAlt Loan portfolio principal balance net of allowance for credit losses, which includes the exposure to interests in certain of our former affiliates composing part of the Fiduciary Loan Portfolio). As of December 31, 2025. The chart represents the characteristics of professionally managed funds and investments in the Collateral portfolio, which is comprised of a diverse portfolio of direct and indirect interests (through various investment vehicles, including, limited partnership interests and private and public equity and debt securities, which include our and our affiliates’ or our former affiliates’ securities), primarily in third-party, professionally managed private funds and investments. Loan balances used to calculate the percentages reported in the pie charts are loan balances, net of any allowance for credit losses, and as of December 31, 2025, the total allowance for credit losses was $391 million, for a total gross loan balance of $578 million and a loan balance net of allowance for credit losses of $187 million. Business Segments: Third Quarter Fiscal 2026 Ben Liquidity Ben Liquidity offers simple, rapid and cost-effective liquidity products through the use of our proprietary financing and trust structure, or the “Customer ExAlt Trusts,” which facilitate the exchange of a customer’s alternative assets for consideration. Ben Liquidity recognized $8.2 million of interest income for the fiscal third quarter, a decrease of 3.6% from the quarter ended September 30, 2025, primarily due to a higher percentage loans being placed on nonaccrual status and loan repayments primarily through asset sales proceeds, partially offset by the effects of compounding interest on the remaining loans. Operating loss for the fiscal third quarter was $29.2 million, a decline from an operating loss of $0.8 million for the quarter ended September 30, 2025. The decrease in operating performance was due to higher intersegment credit losses in the current fiscal period as compared to the quarter ended September 30, 2025 due to larger declines in NAV arising from adjustments to the relative share of the respective fund’s NAV based on updated financial information received from the funds’ investment manager or sponsor during the period and asset sales transacting generally at lower prices as a percentage of NAV during the quarter than in prior quarters, which resulted in lower relative loan paydowns. Ben Custody Ben Custody provides full-service trust and custody administration services to the trustees of certain of the Customer ExAlt Trusts, which own the exchanged alternative assets following liquidity transactions in exchange for fees payable quarterly calculated as a percentage of assets in custody. NAV of alternative assets and other securities held in custody by Ben Custody during the fiscal third quarter was $230.2 million as of December 31, 2025, compared to $338.2 million as of March 31, 2025. The decrease was driven by dispositions of certain alternative assets, distributions and unrealized losses on existing assets, principally related to adjustments to the relative share held in custody of the respective fund’s NAV based on updated financial information received from the funds’ investment manager or sponsor during the period or the fair value for investments deemed probable to be sold at an amount that differs from NAV, offset by $14.8 million of new originations. Revenues applicable to Ben Custody were $2.9 million for the fiscal third quarter, compared to $3.1 million for the quarter ended September 30, 2025. The decrease was a result of lower NAV of alternative assets and other securities held in custody at the beginning of the period when such fees are calculated along with certain upfront intersegment fees that are amortized into revenues over time being fully recognized in a prior period. Operating income for the fiscal third quarter decreased to $2.0 million from $2.3 million for the quarter ended September 30, 2025. The decrease was largely attributable to the decline in revenues applicable to this operating segment as described above and slightly higher employee compensation and benefits expense. Business Segments: Through Nine Months Ended Fiscal 2026 Ben Liquidity Ben Liquidity recognized $25.5 million of interest income for the nine months ended December 31, 2025, down 25.2% compared to the prior year period, primarily driven by lower loans, net of the allowance for credit losses, resulting from higher levels of non-accrual loans and loan prepayments, partially offset by new loans originated. Operating loss was $36.0 million for the nine months ended December 31, 2025, declining from operating loss of $0.5 million in the prior year period. The increase in the operating loss is partially a result of the lower revenues period over period plus an increase in intersegment credit losses in the current fiscal year as compared to the same period in the prior year. Ben Custody Ben Custody revenues were $10.2 million for the nine months ended December 31, 2025, down 36.9%, compared to the prior year period, largely the result of lower NAV of alternative assets and other securities held in custody along with certain upfront intersegment fees that are amortized into revenues over time being fully recognized in a prior period. Operating income was $7.4 million for the nine months ended December 31, 2025 compared to operating income of $9.1 million in the prior year period. While revenues declined in the current year period as compared to the same period in the prior year, operating expenses declined by $4.3 million reflecting non-cash goodwill impairment in the prior year period of $3.4 million and intersegment provision for credit loss of $1.3 million. No such impairment or credit losses were recorded in the current year period. Adjusted operating income(1) for the nine months ended December 31, 2025 was $7.4 million, compared to adjusted operating income(1) of $13.9 million in the prior year period with the decrease in adjusted operating income(1) driven by lower revenue related to lower NAV of alternative assets and other securities held in custody partially offset by slightly higher operating expenses during the current fiscal year period. Capital and Liquidity As of December 31, 2025, the Company had cash and cash equivalents of $7.9 million and total debt of $100.3 million. Distributions received from alternative assets and other securities held in custody totaled $11.3 million for the nine months ended December 31, 2025, compared to $19.3 million for the same period of fiscal 2025. Additionally, during nine months ended December 31, 2025, we received proceeds of $50.2 million from the disposition of certain investments in alternative assets. Total investments (at fair value) of $205.8 million at December 31, 2025 supported Ben Liquidity's loan portfolio. (1) Represents a non-GAAP financial measure. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations. Consolidated Fiscal Third Quarter Results Table 1 below presents a summary of selected unaudited consolidated operating financial information. NM - Not meaningful. (1) Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders and Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders are non-GAAP financial measures. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations. (2) Segment financial information attributable to Ben’s equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), and adjusted operating income (loss)) that impacts Ben’s Equity Holders. “Ben’s Equity Holders” refers to the holders of Beneficient Class A and Class B common stock and Series B Preferred Stock as well as holders of interests in BCH, which represent noncontrolling interests. For a description of noncontrolling interests, see Item 2 of our Quarterly Report on Form 10-Q for the nine months ended December 31, 2025, and Reconciliation of Business Segment Information Attributable to Ben’s Equity Holders to Net Income Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determine the net income (loss) attributable to Ben’s Equity Holders. See further information in table 5 and Non-GAAP Reconciliations. (1) Periods presented have been adjusted to reflect the 1-for-8 reverse stock split on December 15, 2025. Table 2 below presents a summary of selected unaudited consolidated balance sheet information. Business Segment Information Attributable to Ben's Equity Holders(1) Table 3 below presents unaudited segment revenues and segment operating income (loss) for business segments attributable to Ben's equity holders. NM - Not meaningful. (1) Segment financial information attributable to Ben’s equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), and adjusted operating income (loss)) that impacts Ben’s Equity Holders. “Ben’s Equity Holders” refers to the holders of Beneficient Class A and Class B common stock and Series B Preferred Stock as well as holders of interests in BCH, which represent noncontrolling interests. For a description of noncontrolling interests, see Item 2 of our Quarterly Report on Form 10-Q for the nine months ended December 31, 2025, and Reconciliation of Business Segment Information Attributable to Ben’s Equity Holders to Net Income Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determine the net income (loss) attributable to Ben’s Equity Holders. See further information in table 5 and Non-GAAP Reconciliations. Adjusted Business Segment Information Attributable to Ben's Equity Holders(2) Table 4 below presents unaudited adjusted segment revenue and adjusted segment operating income (loss) for business segments attributable to Ben's equity holders. NM - Not meaningful. (1) Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders and Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders are non-GAAP financial measures. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations. (2) Segment financial information attributable to Ben’s equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), and adjusted operating income (loss)) that impacts Ben’s Equity Holders. “Ben’s Equity Holders” refers to the holders of Beneficient Class A and Class B common stock and Series B Preferred Stock as well as holders of interests in BCH, which represent noncontrolling interests. For a description of noncontrolling interests, see Item 2 of our Quarterly Report on Form 10-Q for the nine months ended December 31, 2025, and Reconciliation of Business Segment Information Attributable to Ben’s Equity Holders to Net Income Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determine the net income (loss) attributable to Ben’s Equity Holders. See further information in table 5 and Non-GAAP Reconciliations. Reconciliation of Business Segment Information Attributable to Ben's Equity Holders to Net Income (Loss) Attributable to Ben Common Shareholders Table 5 below presents reconciliation of operating income (loss) by business segment attributable to Ben's Equity Holders to net income (loss) attributable to Ben common shareholders. Investor Webcast Beneficient will host a webcast and conference call to review its third quarter financial results on February 17, 2026, at 5:30 p.m. Eastern Standard Time. The webcast will be available via live webcast from the Investor Relations section of the Company’s website at https://shareholders.trustben.com under Events. Replay The webcast will be archived on the Company’s website in the investor relations section for replay for at least one year. About Beneficient Beneficient (Nasdaq: BENF) – Ben, for short – is on a mission to democratize the global alternative asset investment market by providing traditionally underserved investors − mid-to-high net worth individuals, small-to-midsized institutions and General Partners seeking exit options, anchor commitments and valued-added services for their funds− with solutions that could help them unlock the value in their alternative assets. Its subsidiary, Beneficient Fiduciary Financial, L.L.C., received its charter under the State of Kansas’ Technology-Enabled Fiduciary Financial Institution (TEFFI) Act and is subject to regulatory oversight by the Office of the State Bank Commissioner. For more information, visit www.trustben.com or follow us on LinkedIn. Contacts Investors: Matt Kreps/214-597-8200/[email protected] Michael Wetherington/214-284-1199/[email protected] [email protected] Not an Offer of Securities The information in this communication is for informational purposes only and shall not constitute, or form a part of, an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities. The securities that are the subject of the Transactions have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Disclaimer and Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to, among other things, demand for our solutions in the alternative asset industry, opportunities for market growth, our ability to identify and negotiate transactions, diversification and size of our loan portfolio and our ability to scale operations and provide shareholder value. These forward-looking statements are generally identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and, in each case, their negative or other various or comparable terminology. These forward-looking statements reflect our views with respect to future events as of the date of this document and are based on our management’s current expectations, estimates, forecasts, projections, assumptions, beliefs and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to, our ability to consummate liquidity transactions on terms desirable for the Company, or at all, our ability to maintain compliance with the Nasdaq continued listing requirements, our ability to cure any future deficiencies in compliance with any of the Nasdaq Listing Rules, risks related to the market price of our Class A common stock following the recent reverse stock split, risks related to the substantial costs and diversion of management’s attention and resources due to these matters, and the risk factors that are described under the section titled “Risk Factors” in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the SEC. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document and in our SEC filings. We expressly disclaim any obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law. Table 6: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (1) Periods presented have been adjusted to reflect the 1-for-8 reverse stock split on December 15, 2025. Table 7: CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (1) Periods presented have been adjusted to reflect the 1-for-8 reverse stock split on December 15, 2025. Table 8: Non-GAAP Reconciliations (1) Includes legal and professional fees related lawsuits. (1) Includes legal and professional fees related to lawsuits. (1) Includes legal and professional fees related to lawsuits. (1) Includes legal and professional fees related to lawsuits. (1) Includes legal and professional fees related to lawsuits. Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders, Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders, and Adjusted Operating Expenses are non-GAAP financial measures. We present these non-GAAP financial measures because we believe it helps investors understand underlying trends in our business and facilitates an understanding of our operating performance from period to period because it facilitates a comparison of our recurring core business operating results. The non-GAAP financial measures are intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with, U.S. GAAP. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of these non-GAAP financial measures may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate such items in the same way. We define adjusted revenue as revenue adjusted to exclude the effect of mark-to-market adjustments on related party equity securities that were acquired both prior to and during the Collateral Swap, which on August 1, 2023, became interests in the GWG Wind Down Trust and mark-to-market adjustments on derivative asset related to appreciation forfeiture for shares issued in the limited conversion of BCH Preferred A-1 to Class A common stock. Adjusted Segment Revenues attributable to Ben's Equity Holders is the same as "adjusted revenues" related to the aggregate of the Ben Liquidity, Ben Custody, and Corporate/Other Business Segments, which are the segments that impact the net income (loss) attributable to all equity holders of Beneficient, including equity holders of Beneficient's subsidiary, BCH. Adjusted operating income (loss) represents GAAP operating income (loss), adjusted to exclude the effect of the adjustments to revenue as described above, credit losses on related party available-for-sale debt securities that were acquired in the Collateral Swap which on August 1, 2023, became interests in the GWG Wind Down Trust, and receivables from a related party that filed for bankruptcy and certain notes receivables originated during our formative transactions, non-cash asset impairment, share-based compensation expense, and legal, professional services, and public relations costs related to the GWG Holdings bankruptcy, lawsuits, and certain employee matters, including fees & loss contingency accruals (releases), including post judgment interest incurred in arbitration with a former director. Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders is the same as "adjusted operating income (loss)" related to the aggregate of the Ben Liquidity, Ben Custody, and Corporate/Other Business Segments, which are the segments that impact the net income (loss) attributable to all equity holders of Beneficient, including equity holders of Beneficient's subsidiary, BCH. Adjusted operating expenses represent GAAP operating expenses, adjusted to exclude loss contingency accruals (releases), including post judgment interest incurred in arbitration with a former director, and non-cash asset impairment. These non-GAAP financial measures are not a measure of performance or liquidity calculated in accordance with U.S. GAAP. They are unaudited and should not be considered an alternative to, or more meaningful than, GAAP revenues, GAAP operating expenses, or GAAP operating income (loss) as an indicator of our operating performance. Uses of cash flows that are not reflected in adjusted operating income (loss) or adjusted segment operating income (loss) attributable to Ben's Equity Holders include capital expenditures, interest payments, debt principal repayments, and other expenses, which can be significant. As a result, adjusted operating income (loss) and/or adjusted segment operating income (loss) attributable to Ben's Equity Holders should not be considered as a measure of our liquidity. Because of these limitations, Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders, Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders, and Adjusted Operating Expenses should not be considered in isolation or as a substitute for performance measures calculated in accordance with U.S. GAAP. We compensate for these limitations by relying primarily on our U.S. GAAP results and using Adjusted Revenues, Adjusted Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders, Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders, and Adjusted Operating Expenses on a supplemental basis. You should review the reconciliation of these non-GAAP financial measures set forth above and not rely on any single financial measure to evaluate our business. A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ec78a16b-dd63-458e-af96-9a346be6daff

Former CEO legal exposure: Management disclosed the former CEO’s criminal trial begins April 6, 2026 and said Beneficient intends to pursue claims challenging roughly $120 million of purported debt tied to entities related to the former CEO; the company also noted that all but $3.7 million of its $100.3 million total debt is associated with that entity. Weak portfolio and cash position with heavy losses: Investments fell to $206 million from $291 million year-over-year and BEN Liquidity posted a $29.2 million quarterly operating loss (YTD operating loss $36.0 million), while cash was only $7.9 million$50 million in gross proceeds from asset sales/redemptions to pay down obligations, including ~$27.5 million to a Texas bank. Signs of operational recovery: the company regained full Nasdaq listing compliance, closed a GP Primary Commitment Financing in December signaling market interest, reduced adjusted operating expenses (down 6.5% YoY and 18% YTD excluding non-recurring items), and is building an AI-enhanced platform to support future deal flow. Interested in Beneficient? Here are five stocks we like better. Beneficient (NASDAQ:BENF) executives used the company’s fiscal third-quarter 2026 earnings call to outline progress on governance changes, legal matters tied to its former CEO, and efforts to stabilize operations and reduce expenses, while acknowledging that portfolio growth has been limited in recent quarters. Interim CEO James Silk opened the call by noting the December death of board member Tom Hicks, who had served on Beneficient’s board since 2017. Silk said Pete Cangany, a board member since 2019 and a longtime Ernst & Young partner, was appointed chairman effective Dec. 15, 2025. → Whale Watching: BlackRock’s Massive Bet on Nebius Group Silk said management has spent several quarters addressing challenges stemming from the separation from the former CEO, which he said required significant resources and attention. He added that management believes completing that work is necessary to better position the company to execute its strategy in private assets. Silk highlighted a “turning point” in recent months that he said allows the company to focus more fully on driving growth, including regaining full Nasdaq listing compliance and reaching a final, court-approved settlement related to GWG Holdings litigation “within the limits of our existing insurance policies.” → Meta's Platfroms' New Bull: Why Billionaire Bill Ackman Is Buying Silk said Beneficient closed its first new GP Primary Commitment Financing since June of the prior year, with the transaction closing in December. He characterized the financing as a signal of continued market interest in the company’s products and its commitment to its strategy. He also emphasized continued work on an “efficient technology and AI-enhanced services platform” intended to support “steady, profitable deal flow and growth.” Silk pointed to reductions in adjusted operating expenses, citing a 6.5% year-over-year decline and an 18% year-to-date decline, excluding one-time and non-occurring items. → Is This Quantum Outperformer a New Threat to D-Wave? To reduce payables and debt, management said it generated approximately $50 million in gross proceeds through asset sales and equity redemptions, which helped pay down obligations including roughly $27.5 million owed to a Texas state bank. Silk said the company has cooperated with the U.S. District Court for the Southern District of New York on matters related to the former CEO. He noted the former CEO’s criminal trial is scheduled for early April 2026, and during the Q&A he specified an April 6 start date, adding it could take “three to four weeks” to run its course. Silk said the company is considering options including litigation against the former CEO, his entities, and other parties. He specifically said Beneficient intends to pursue claims regarding the validity of more than $100 million in debt “purportedly owed to an entity related to our former CEO,” and later described the amount as approximately $120 million. CFO Greg Ezell said that due to circumstances surrounding the former CEO’s resignation, the company was unable to grow its investment portfolio through new financings, except for one transaction in December with approximately $3.0 million in NAV. Ezell reported investments at fair value of $206 million as of Dec. 31, 2025, compared with $291 million at the end of the prior fiscal year. Those investments serve as collateral for BEN Liquidity’s net loan portfolio, which he said was $188 million as of Dec. 31, 2025, compared with $244 million at the end of the prior fiscal year. He said the loan portfolio was backed by a diversified alternative asset collateral portfolio spanning approximately 150 private market funds and approximately 430 investments. Year-to-date, the company generated $50 million in gross proceeds from asset sales or equity redemptions of certain investments held by customer trusts, which were used to pay down debt and support working capital. Ezell said GAAP revenue was $18.7 million for the quarter and $3.3 million year-to-date. He attributed the positive GAAP revenue to a $44.1 million increase in the fair value of a derivative asset tied to an “appreciation forfeiture provision” related to the conversion of preferred stock to Class A common stock by Hicks and Silk. Adjusted revenue, excluding that fair value adjustment, was negative $25.4 million for the quarter and negative $40.8 million year-to-date. He said the derivative settles in January 2028 and will be remeasured at fair value each period until settlement. Operating expenses were approximately $15 million for the quarter, compared with approximately $14 million in the year-ago quarter, and included a $1.7 million non-cash accrual. Excluding that non-cash item, Ezell said operating expenses declined 6.5% from the prior-year period. On a year-to-date basis, he said operating expenses were approximately $44 million versus $53 million in the first three quarters of fiscal 2025, a decline of 18%, excluding certain non-cash and related items. Ben Liquidity: Ezell said the segment recorded $8.2 million of interest income in the quarter, down 3.6% sequentially, primarily due to a higher percentage of loans on non-accrual status. Year-to-date interest income was $25.5 million, down 25.2% from the prior-year period, driven by lower loans net of allowance for credit losses due to non-accrual loans and prepayments, partially offset by new loan originations. Ben Liquidity posted an operating loss of $29.2 million for the quarter, compared with an operating loss of $0.8 million sequentially. Ezell attributed the deterioration to higher intersegment credit losses tied to NAV declines from updated information from investment managers and asset sales that transacted at lower percentages of NAV than prior quarters, resulting in lower relative loan paydowns. Year-to-date operating loss was $36.0 million versus an operating loss of $0.5 million in the prior-year period. Ben Custody: Ezell said NAV of alternative assets and other securities held in custody was $230.2 million as of Dec. 31, 2025, down from $338.2 million as of March 31, 2025. He attributed the decline to dispositions, distributions, and unrealized losses from updated manager information or fair value adjustments for investments expected to be sold at amounts differing from NAV, partially offset by $14.8 million of new originations. Segment revenue was $2.9 million in the quarter, compared with $3.1 million in the prior quarter, reflecting lower starting NAV used for fee calculations and the full amortization of certain upfront intersegment fees in a prior period. Operating income was $2.0 million, down from $2.3 million sequentially. Year-to-date revenue was $10.2 million, down 36.9% year over year, with operating income of $7.4 million compared with $9.1 million in the prior year. Ezell said the prior-year period included non-cash items such as a $3.4 million goodwill impairment and a $1.3 million intersegment credit loss provision, neither of which occurred in the current year-to-date period. As of Dec. 31, 2025, Beneficient had $7.9 million in cash and cash equivalents and total debt of $100.3 million, Ezell said. Distributions received from alternative assets and other securities held in custody totaled $11.3 million for the nine months ended Dec. 31, 2025, compared with $19.3 million in the prior-year period. In the Q&A, management said it is targeting future growth by reengaging with its pipeline of liquidity transactions after a period in which being “out of the market with the financials” constrained activity. Silk said the near-term priority is executing on “a handful of deals” that demonstrate continued market demand and a more efficient, simplified approach to structuring transactions. Asked about marketing to high-net-worth and smaller institutional clients, Silk said the company expects to focus on family offices and advisor networks, while continuing to use its AltQuote product to provide a preliminary indication of interest on assets. On the balance sheet, management said that of the company’s $100.3 million in debt, all but $3.7 million relates to an entity associated with the former CEO. Beneficient, a technology-enabled financial services company, provides liquidity solutions and related trustee, custody and trust administrative services to participants in the alternative asset industry in the United States. It operates through Ben Liquidity, Ben Custody, and Customer ExAlt Trusts segments. The company offers Ben AltAccess platform for secure, online, and end-to-end delivery of each of the Ben business unit products and services, including upload documents, and work through tasks, and complete their transactions with standardized transaction agreements. The article "Beneficient Q3 Earnings Call Highlights" was originally published by MarketBeat.

DALLAS, Feb. 12, 2026 (GLOBE NEWSWIRE) -- Beneficient (NASDAQ: BENF) (“Ben” or the “Company”), a technology-enabled platform providing exit opportunities and primary capital solutions and related trust and custody services to holders of alternative assets, today announced that it will release its Third Quarter Fiscal 2026 financial results and host a webcast to present the results on Tuesday, February 17, 2026. The webcast will take place that day at 5:30 p.m. Eastern Standard Time. To listen to the webcast please visit the Beneficient investor relations website at shareholders.trustben.com at least ten minutes prior to the scheduled start time to register. A replay of the webcast will be available on the Company’s website shortly after the presentation. About Beneficent Beneficient (Nasdaq: BENF) – Ben, for short – is on a mission to democratize the global alternative asset investment market by providing traditionally underserved investors − mid-to-high net worth individuals, small-to-midsized institutions and General Partners seeking exit options, anchor commitments and valued-added services for their funds− with solutions that could help them unlock the value in their alternative assets. Its subsidiary, Beneficient Fiduciary Financial, L.L.C., received its charter under the State of Kansas’ Technology-Enabled Fiduciary Financial Institution (TEFFI) Act and is subject to regulatory oversight by the Office of the State Bank Commissioner. For more information, visit www.trustben.com or follow us on LinkedIn. Contacts Matt Kreps 214-597-8200 [email protected] Michael Wetherington 214-284-1199 [email protected] [email protected] Forward-Looking Statements This communication includes forward-looking statements as defined under U.S. federal securities laws. Forward-looking statements include all statements that are not historical statements of fact, including those related to statements about our plans, expectations and objectives with respect to the results of any legal or regulatory proceedings. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “will,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this release. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled “Risk Factors” in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents we file with the SEC. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

By Michael Kim NASDAQ:BENF READ THE FULL BENF RESEARCH REPORT Post-market close on 11/14/25, Beneficient (NASDAQ:BENF) reported F2Q26 (Sep) earnings results and filed the company’s Quarterly Report of Form 10-Q (bringing the company current on SEC filings) – see our first look report published on 11/17/25 for our initial analysis. Adjusted segment revenues attributable to BENF equity holders comprising Ben Liquidity interest income, Ben Custody fees, and Corporate & Other totaled $11.4 million for F2Q26, down 13% from the prior quarter’s level. Ben Liquidity interest income decreased by 4% on a sequential basis, while Ben Custody fees were down 26% compared to the prior quarter – consistent with lower NAVs of custodied assets given dispositions, distributions, and unrealized losses partially offset by new originations. BENF reported an adjusted segment operating loss attributable to BENF equity holders of $2.8 million for F2Q26 compared to a loss of $9.2 million in F1Q26. The favorable Q/Q trend was largely a function of a lower operating loss for the Ben Liquidity segment, as well as lower corporate expenses, partially offset by a step down in Ben Custody revenue/operating income. On an adjusted basis, Beneficient reported a net loss of $0.29 per Class A share versus our $0.22 estimate. Relative to our model, the per share miss was entirely a function of lower shares outstanding, as the quarter’s net loss on an adjusted basis came in meaningfully lower than our forecast. Following our review of F2Q26 results and management’s post-quarter commentary, we highlight the following key takeaways: 1. CEO transition: As previously disclosed, James Silk was named Interim Chief Executive Officer effective July 20, 2025. Not surprisingly, Mr. Silk’s initial focus has centered on stabilizing the business during the first several months of his tenure – more specifically, getting current on the company’s SEC filings and regaining compliance with Nasdaq’s listing requirements compliance (reverse split pending assuming shareholder approval). Looking ahead, Mr. Silk and senior executives have pivoted to simplifying the business model in terms of the core liquidity business (discussed below), as well as from an economic perspective. Key priorities include enhancing efficiency and transparency, with ongoing efforts to optimize revenue generation to the benefit of public company shareholders and further streamline the operating model and balance sheet. Indeed, third-party debt has declined from ~$27M at the start of F2026 to $3.8M as of 11/10/25 (largely funded by asset sales). From a strategic standpoint, senior officials remain focused on continuing to broaden the franchise into adjacent markets and increasingly leveraging in-house technology to optimize portfolio management and data extraction/analytics. Related monetization plans seemingly involve standalone services and/or enhanced custody functionality. 2. Shifting focus: While investors likely take a bit of a pause in terms of allocation decisions reflecting more recent market volatility and BENF’s ongoing CEO transition, Mr. Silk noted marketing/new originations initiatives going forward likely focus more on HNW individuals (with $5 million to $25 million of investable assets) versus larger institutional investors that often require more complicated/protracted decision-making approval processes. Stepping back, despite more recent volatility, global alternative assets under management continue to grow fueled by rising allocations and strong long-term investment returns. Ongoing growth in AUM generates rising demand for liquidity, particularly as distribution activity remains muted more broadly reflecting lackluster exit markets and extended holding periods. While GPs can access the secondary markets for larger, more complex liquidity transactions, Beneficient’s early liquidity services cater to underserved HNW investors that value certainty of price, cost, and time. 3. Ongoing asset sales: The fair value of Customer ExAlt Trust investments totaled $244.0 million as of September 30, 2025, down 16% from $291.4 million at 3/31/25. Investments on the balance sheet serve as collateral for Ben Liquidity's loan portfolio. Net of allowances for credit losses, Ben Liquidity’s loan balances totaled $223.1 million as of September 30, 2025 compared to $244.1 million as of the end of F2025. Furthermore, monetizations/realizations across Customer ExAlt Trusts remain limited, with distributions from alternative/custodied assets totaling $4.1 million for F2Q26 following $3.7 million in F1Q26. As a result, management instituted an Asset Sales Initiative, with a focus on selling balance sheet assets (including Customer ExAlt Trust investments) to enhance cash flows and fund creditor payments and/or operating expenses. Since March 31, 2025, the company sold select Customer ExAlt Trust investments generating $46.4 million of gross proceeds. More specifically, the company completed the sale of LP interests held in Customer ExAlt Trusts across four separate transactions in June/July ($25.1 million), August ($11.6 million), and October ($9.7 million across two transactions), with the proceeds earmarked for brokerage commissions, beneficiaries of the trusts, related loan repayments, and general working capital purposes. 4. Enhanced shareholder alignment: As alluded to earlier, interim CEO James Silk and Chairman of the Board Tom Hicks recently converted 101.3 million preferred units ($52.6 million) into Class A common stock, thereby meaningfully enhancing shareholder alignment and bringing the company back in compliance with Nasdaq listing requirements. Importantly, the conversion shares are subject to a three-year lockup period (ending 10/1/28), with Mr. Silk and Mr. Hicks agreeing to forego any potential appreciation in the value of the related shares over the next three years, as well as any allocations, distributions, preferred returns, conversion, or other rights associated with the preferred units. Following management’s post-earnings conference call this morning, we are raising our F2026 and F2027 adjusted EPS estimates. On an adjusted business segment attributable to BENF equity holders basis, we forecast net losses per Class A share of $1.35 in F2026 (Mar) followed by $0.04 in F2027 – up from our prior $1.61 and $0.50 net loss per share estimates, respectively. Despite a flatter revenue trajectory, our upward revisions primarily reflect a considerable step up in Class A shares outstanding following the recent conversion of preferred securities by interim CEO James Silk and Chairman of the Board Tom Hicks. Looking ahead, the key revenue driver for Beneficient remains loan origination volumes, with the company generating interest income and related fees based on the level and growth of financing transactions, as well as the trajectory of underlying collateral over time. Turning to valuation, no change to our $2.00 price target. We still see considerable upside potential for the stock over time, with our valuation work supported by a lower risk profile for the stock following the company’s recent CEO transition, though we recognize a meaningful upward revaluation likely necessitates sustained growth in loan origination volumes driving an inflection in profitability. SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR. DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives payments totaling a maximum fee of up to $50,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.