The YPF write-down is a binary, non-cash event that has destroyed equity value but does not affect cash flows from the core portfolio. Monitor the en banc petition and arbitration developments for any recovery of YPF value. The core business (ex-YPF) is generating cash but showing weakness from discount rate and duration headwinds. The 3.5x debt-to-tangible-equity ratio is dangerously high and will constrain capital allocation. Watch for potential debt covenant issues or equity raise risk.
Price Chart
Executive Summary
Burford Capital reported a GAAP net loss attributable to shareholders of $1.632 billion for Q1 2026, driven almost entirely by a $1.6 billion non-cash write-down of its YPF-related assets following an adverse Second Circuit appeal ruling. Excluding YPF, the core portfolio generated a $69 million loss from realized and unrealized gains, impacted by discount rate movements and extended case durations, while new business commitments of $133 million were solid. The company maintains $740 million in liquidity and reiterated its 2030 growth targets, but the YPF write-down has destroyed nearly all of Burford's book value, with tangible book value per share collapsing from $10.57 to $3.17.
Key Financial Metrics
Key Facts
- Net loss attributable to Burford shareholders of $1.632 billion in Q1 2026 vs. net income of $31 million in Q1 2025.
- YPF-related assets written down by $1.6 billion (Burford-only basis) following the Second Circuit appeal loss; revised fair value is $93 million (Burford-only) as of March 31, 2026.
- Tangible book value per share collapsed from $10.57 at Dec 31, 2025 to $3.17 at March 31, 2026.
- Debt-to-tangible-equity leverage ratio surged from 0.9x to 3.5x quarter-over-quarter.
- Excluding YPF, capital provision income was a loss of $69 million, driven by discount rate movements, duration extensions, and case milestones.
- New definitive commitments of $133 million in Q1 2026, down from $158 million in Q1 2025.
- Cash receipts were $90 million in Q1 2026 vs. $258 million in Q1 2025; liquidity stands at $740 million.
- Diluted EPS was -$7.46 vs. +$0.14 in the prior year quarter.
Financial Impact
YPF-related assets written down by $1.6 billion (Burford-only), driving a $1.632 billion net loss. Tangible book value destroyed by ~$1.6 billion.
Risk Factors
- YPF en banc petition or Supreme Court certiorari denied, leaving only multi-year arbitration with uncertain outcome.
- Debt-to-tangible-equity of 3.5x may trigger covenant concerns or force deleveraging through asset sales or equity issuance.
- Core portfolio (ex-YPF) showing negative capital provision income of $69 million, indicating potential fundamental weakness beyond YPF.
- Cash receipts declining sharply ($90M vs $258M YoY) could pressure liquidity if the trend continues.
- Extended litigation durations and counterparty insolvencies (e.g., food distributor bankruptcy) continue to create unrealized losses.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001714174-26-000067 |
| Document: bur-20260508.htm | 0001714174-26-000067 |
| Document: bur-20260508xex991.htm | 0001714174-26-000067 |
| Document: 0001714174-26-000067-index-headers.html | 0001714174-26-000067 |
| Document: 0001714174-26-000067-index.html | 0001714174-26-000067 |
| Document: 0001714174-26-000067.txt | 0001714174-26-000067 |
| 8-K Data (Synthetic) | 0001714174-26-000067 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 28, 2026 29d ago | 8-K | $3.93 $3.25 | ▼ −17.30% | ▼ −17.27% | $3.32 (−15.52%) |
Aug 6, 2026 11w ago | 8-K | $4.30 $4.30 | · 0.00% | ▼ −0.60% | $3.32 (−22.79%) |
May 8, 2026 24w ago | 8-K | $5.14 $4.45 | ▲ +13.42% | ▲ +13.45% | $3.32 (+35.41%) |
Apr 2, 2026 29w ago | DEFA14A | $4.14 $4.92 | ▲ +18.84% | ▲ +8.96% | $3.32 (−19.81%) |
Apr 2, 2026 29w ago | DEFA14A | $4.14 $4.92 | ▲ +18.84% | ▲ +8.96% | $3.32 (−19.81%) |
Apr 2, 2026 29w ago | DEFA14A | $4.14 $4.92 | ▲ +18.84% | ▲ +8.96% | $3.32 (−19.81%) |
Feb 26, 2026 34w ago | 8-K | $8.52 $7.83 | ▼ −8.10% | ▼ −1.70% | $3.32 (−61.03%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers