Burford Capital swings to first-half loss; confidence remains

Burford Capital Ltd on Thursday said it swung to a net loss in the first half, but that it is "well positioned to continue growing" for the rest of the year.

The litigation finance provider, which has offices in London and New York, said pretax profit for the three months ended June 30 fell to USD16.7 million from USD132.9 million a year earlier. Total revenue declined to USD110.7 million from USD191.3 million.

The decline was driven by lower litigation-related revenue, with Burford Capital's returns affected by the timing of case outcomes and valuation changes across its portfolio.

For the first half of 2026, Burford Capital reported a net loss of USD1.62 billion compared with net income of USD142.1 million a year earlier. The loss was primarily driven by a significant fair-value reduction on its YPF-related assets recorded in the first quarter.

The group said it does not intend to declare an interim dividend this year. Instead, it will assess the potential for future dividends once its portfolio matures and its leverage level reduces.

Burford Capital said case wins in July marked a strong start to the second half of 2026 and highlighted how quickly momentum can shift in its business.

Chief Executive Officer Christopher Bogart said: "Burford generated more cash this quarter than in any quarter since the first quarter of 2025, and July saw strong momentum in the portfolio.

"With USD733 million of cash on hand, Burford is well positioned to continue growing its industry-leading platform, while strong liquidity and robust cash receipts allow us to prudently manage the balance sheet."

Shares in Burford Capital were down 0.6% at 315.60 pence each in London on Thursday afternoon.

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