$MSPR

MSP Recovery, Inc.

CIK:0001802450|SEC Filings

Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2025

Sep. 30, 2024

Sep. 30, 2025

Sep. 30, 2024

Claims recovery income

$ 198

$ 3,577

$ 1,564

$ 9,879

Other

127

Total Revenues

198

3,668

1,571

10,006

Operating expenses

Cost of revenues

^[1]

251

1,671

1,076

3,453

Claims amortization expense

118,638

121,007

355,923

363,027

General and administrative

^[2]

3,959

5,329

13,666

17,145

Professional fees

976

3,248

5,627

12,030

Professional fees - legal

^[3]

2,213

450

9,146

Depreciation and amortization

127

342

206

Total operating expenses

123,951

133,539

377,084

405,007

Operating Loss

(123,753)

(129,871)

(375,513)

(395,001)

Interest expense

^[4]

(130,470)

(106,653)

(374,002)

(306,596)

Other (expense) income, net

(15,192)

799

(15,172)

1,140

Change in fair value of warrant and derivative liabilities

23,953

45,341

41,416

121,625

Net loss before provision for income taxes

(245,462)

(190,384)

(723,271)

(578,832)

Provision for income tax expense

Net loss

(245,462)

(190,384)

(723,271)

^[5]

(578,832)

^[5]

Less: Net loss attributable to non-controlling interests

77,656

160,537

290,688

504,967

Net loss attributable to MSP Recovery, Inc.

$ (167,806)

$ (29,847)

$ (432,583)

$ (73,865)

Class A Common Stock [Member]

Operating expenses

Weighted average shares outstanding, basic

1,264,441

135,795

829,965

106,208

Weighted average shares outstanding, diluted

1,264,441

135,795

829,965

106,208

Basic net loss per common share

$ (132.71)

$ (219.79)

$ (521.21)

$ (695.47)

Diluted net loss per common share

$ (132.71)

$ (219.79)

$ (521.21)

$ (695.47)

[1]	For the three and nine months ended September 30, 2025 and 2024, cost of revenue included $0.1 million and $0.7 million, and $1.3 million and $1.3 million, respectively, of related party expenses. See Note 12, Related Party Transactions, for further details.
[2]	For the three and nine months ended September 30, 2025 and 2024, general and administrative expenses included $– million and $0.2 million, and $0.1 million and $0.2 million, respectively, of related party expenses. See Note 12, Related Party Transactions, for further details.
[3]	For the three and nine months ended September 30, 2024, Professional Fees—legal included $1.7 million and $7.7 million, respectively, of related party expenses related to the Law Firm. There were no such related party expenses related to the Law Firm for three and nine months ended September 30, 2025. See Note 12, Related Party Transactions, for further details.
[4]	For the three and nine months ended September 30, 2025 and 2024, interest expense included $96.3 million and $278.6 million, and $80.8 million, and $233.3 million, respectively, related to interest expense due to related parties. See Note 12, Related Party Transactions, for further details.
[5]	Balances include related party transactions. See Note 12, Related Party Transactions, for further details.

Condensed Consolidated Statements of Cash Flows - USD ($)

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2025

Sep. 30, 2024

Sep. 30, 2025

Sep. 30, 2024

Dec. 31, 2024

Cash flows from operating activities:

Net loss

$ (245,462,000)

$ (190,384,000)

$ (723,271,000)

^[1]

$ (578,832,000)

^[1]

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

342,000

206,000

Claims amortization expense

118,638,000

121,007,000

355,923,000

363,027,000

Paid-in-kind interest

^[1]

248,849,000

203,420,000

Loss/(Gain) debt extinguishment

80,000

(450,000)

Change in fair value of warrant liability

$ 0

(41,264,000)

(121,685,000)

Change in fair value of derivatives

(143,000)

60,000

Share based compensation

94,000

Mark-to-market loss on liability payable in stock

(486,000)

(523,000)

Professional fees payable in shares

1,200,000

1,484,000

Non-cash lease expense

1,000

5,000

Change in operating assets and liabilities:

Accounts receivable

(2,883,000)

Prepaid expenses and other assets

304,000

7,216,000

Affiliate receivable

^[1]

(59,000)

(34,000)

Affiliate payable

^[1]

(626,000)

814,000

Accounts payable, commission payable and accrued liabilities

14,929,000

7,100,000

Interest Payable

125,087,000

103,130,000

Deferred revenue

75,000

Net cash used in operating activities

(19,059,000)

(17,851,000)

Cash flows from investing activities:

Purchases of property and equipment

(163,000)

(161,000)

Purchases of intangible assets

(2,200,000)

Net cash used in investing activities

(163,000)

(2,361,000)

Cash flows from financing activities:

Proceeds from debt financing

10,622,000

16,500,000

Payments on related party loan

^[1]

(382,000)

Repayment of the Claims financing obligation

(2,586,000)

(4,793,000)

Proceeds from the issuance of common stock

679,000

2,000,000

Net cash provided by financing activities

8,715,000

13,325,000

Net decrease in cash

(10,507,000)

(6,887,000)

Cash at beginning of year

12,328,000

11,633,000

$ 11,633,000

Cash at end of period

$ 1,821,000

$ 4,746,000

1,821,000

4,746,000

$ 12,328,000

Supplemental disclosure of non-cash investing and financing activities:

Original issue discount

5,002,000

8,083,000

Issuance of shares in settlement of debt

679,000

2,000,000

Payment of professional fees through issuance of Class A common stock

811,000

1,484,000

Cash paid during the period for:

Interest

$ 2,237,000

$ 4,495,000

[1]	Balances include related party transactions. See Note 12, Related Party Transactions, for further details.

Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands

Sep. 30, 2025

Dec. 31, 2024

Current assets:

Cash

$ 1,821

$ 12,328

Accounts receivable

295

Affiliate receivable

^[1]

1,263

1,204

Prepaid expenses and other current assets

^[1]

1,342

1,647

Total current assets

4,721

15,474

Property and equipment, net

4,980

5,159

Intangible assets, net

^[2]

1,542,300

1,898,223

Right-of-use assets

129

227

Total assets

1,552,130

1,919,083

Current liabilities:

Accounts payable

12,125

13,971

Affiliate payable

^[1]

21,039

21,664

Commission payable

1,085

1,342

Derivative liability

211

Warrant liability

^[1]

3,142

22,373

Guaranty obligation

^[1]

1,126,490

Claims financing obligation and notes payable

^[1]

512,619

31,200

Loan from related parties

^[1]

112,794

Interest payable

^[1]

16,642

33,298

Other current liabilities

^[1]

32,696

14,765

Total current liabilities

712,221

1,265,314

Guaranty obligation

^[1]

1,290,394

Claims financing obligation & notes payable

^[1]

248,863

633,026

Lease liabilities

102

Loan from related parties

^[1]

17,534

130,328

Interest payable

^[1]

122,930

14,828

Other long-term liabilities

4,578

3,894

Total liabilities

2,396,520

2,047,492

Commitments and Contingencies

Stockholders' Equity:

Additional paid-in capital

314,791

546,635

Accumulated deficit

(878,633)

(446,050)

Total stockholders' equity

(563,842)

100,585

Non-controlling interest

(280,548)

(228,994)

Total equity

(844,390)

(128,409)

Total liabilities and equity

1,552,130

1,919,083

Class A Common Stock [Member]

Stockholders' Equity:

Common stock

Class V Common Stock [Member]

Stockholders' Equity:

Common stock

$ 0

[1]

As of September 30, 2025 and December 31, 2024, total affiliate receivable, affiliate payable, warrant liability, guaranty obligation, and loan from related parties balances are with related parties. In addition, the prepaid expenses and other current assets, claims financing obligation and notes payable, other current liabilities, and interest payable include balances with related parties. See Note 12, Related Party Transactions, for further details.

[2]

As of September 30, 2025 and December 31, 2024, intangible assets, net included $1.1 billion and $1.4 billion, respectively, related to a consolidated VIE. See Note 6, Variable Interest Entities, for further details.