Beneficient (NASDAQ:BENF) reported a net loss of $65.1 million for the first quarter of fiscal 2026, ended June 30, 2025, a significant shift from a net income of $47.7 million in the prior year's period. The company highlighted efforts in cost management and strategic initiatives to strengthen its financial foundation.
GAAP revenues for Q1 fiscal 2026 were negative $12.6 million, a decrease from $10.0 million in the same period of fiscal 2025. The company posted a GAAP operating loss of $92.6 million, compared to an operating income of $44.3 million in Q1 fiscal 2025. Interim Chief Executive Officer James Silk noted the quarter reflects 'meaningful progress strengthening Beneficients financial and operational foundation', citing 'deliberate steps to reduce expenses, complete new primary capital transactions and generate additional liquidity through asset sales as well as bringing the Company current on its SEC filings'.
Excluding non-cash goodwill impairment and loss contingency accrual (release), operating expenses declined 1% to $17.2 million in Q1 fiscal 2026, down from $17.3 million in Q1 fiscal 2025. Adjusted segment operating loss attributable to Beneficient's equity holders improved by 33.4% sequentially to $9.2 million in Q1 fiscal 2026 from $13.9 million in the fourth quarter of fiscal 2025.
As of June 30, 2025, investments at fair value stood at $263.8 million, a decrease from $291.4 million at the end of the prior fiscal year, collateralizing a net loan portfolio of $230.7 million. This figure includes three new primary capital transactions totaling $11.8 million. Beneficient also completed asset sales from certain Customer ExAlt Trusts, generating $38.1 million in gross proceeds, which were used to pay down debt and provide working capital.
In a move to regain compliance with Nasdaq listing requirements, Beneficient's Board Chairman Thomas Hicks and interim CEO James Silk converted $52.6 million of personally held BCH Preferred Series A-1 holdings into Class A common stock on October 15, 2025.
The Ben Liquidity segment recorded $8.8 million in interest income for Q1 fiscal 2026, a 4.5% decrease from the previous quarter, primarily due to an increase in loans on nonaccrual status. Its operating loss improved to $6.0 million from $12.3 million in the quarter ended March 31, 2025. The Ben Custody segment reported revenues of $4.2 million, down from $5.4 million in the prior quarter, resulting in a decrease in operating income to $3.1 million from $4.2 million. The Net Asset Value of alternative assets and other securities held in custody decreased to $298.1 million from $338.2 million as of March 31, 2025.
As of June 30, 2025, Beneficient held cash and cash equivalents of $7.6 million and total debt of $108.4 million.
