Litigation Capital Management (LIT) investor relations material

Executive summary

• FY26 saw a significant deterioration in investment performance, resulting in a net loss after tax of A$165.7 million, compared to a net loss of A$72.9 million in FY25.

• The company reported negative net assets of A$53.6 million at 30 June 2026 and has entered a run-off phase, ceasing new investments and focusing on managing the existing portfolio to conclusion.

• A strategic review was conducted but did not result in a transaction; instead, a long-term amendment to the debt facility with Northleaf was agreed.

Financial highlights

• Net loss after tax: A$165.7 million (FY25: A$72.9 million loss).

• Operating loss: A$161.1 million (FY25: A$12.5 million loss).

• Revenue from concluded investments on LCM capital dropped to A$1.1 million (FY25: A$36.5 million).

• Net assets turned negative: A$53.6 million deficit (FY25: A$114.4 million surplus).

• Net debt increased to A$123.4 million (FY25: A$68.9 million).

Outlook and guidance

• The company is in run-off, with no new investments planned; all cash realised will be used to repay the Northleaf facility.

• The amended facility extends the term to 31 December 2030, increases the facility to US$125 million, and capitalises interest.

• Material uncertainty exists regarding going concern, dependent on successful portfolio realisations and continued access to funding.