Beneficient Q2 FY2025 earnings call

• Reclassification of preferred equity improved permanent equity from a deficit of $148.3 million to $13.2 million. • SEC registration for standby equity purchase agreement declared effective. • Appointed Patrick Donegan to the Board, bringing compliance, legal, banking, and capital markets experience. • Reduction in overhang from prior parent company's liquidation trust, with the trust now holding about 8% of outstanding shares. • Built FinTech platform Ben AltAccess with MAPS to streamline alternative asset transactions, targeting mid to high-net-worth individuals and small to mid-sized institutions with unmet liquidity demand.

Ben Liquidity: Recognized $12.0 million in base interest revenue in Q2 2025, up 10.4% from prior quarter. Operating income and adjusted operating income for the quarter was $2.9 million. Ben Custody: NAV of alternative assets and other securities and custody was $385.1 million, up from $381.2 million. Revenues applicable to Ben Custody were flat at $5.4 million. Operating income increased due to lower goodwill impairment charges.

• Anticipates beginning to close deals later in the quarter after obtaining stockholder approval for increased authorized shares. • Continues market awareness efforts through digital marketing, proprietary sourcing channels, and industry conferences. • Believes a more friendly capital formation economy will lead to increased liquidity and deal activity, with Beneficient positioned to facilitate liquidity for reinvestment.

• Regulatory risks related to maintaining compliance with listing requirements and industry best practices. • Market risks associated with volatility in alternative asset distributions and the pace of deal activity recovery.

Q: Thoughts on demand trends, loan originations, and new business initiatives like related services and alternative securities lending?

A: Brad Heppner noted ongoing demand for liquidity from private market assets, progress with MAPS reducing transaction time, active marketing efforts including digital, sourcing channels, and industry events. Also discussed potential of a lending platform in the alternative assets space.

Q: Color on alternative asset collateral portfolio performance, monetization, and equity reclassification transaction?

A: Greg Ezell said collateral portfolio performance has seen positive unrealized NAV increases, with distributions down year-to-date but early signs of potential future distributions. Brad Heppner discussed industry distribution rate trends and the equity reclassification's impact on Nasdaq listing requirements, moving permanent equity closer to compliance.