Mount Logan Capital (MLCI) investor relations material

Executive summary

• 2026 priorities included completing strategic transactions, launching direct insurance origination, and simplifying the platform; management said these goals were achieved, with benefits expected to build from Q4 2026 into 2027.

• Q3 revenue rose 12% YoY to $12.9 million and net loss narrowed to $3.7 million; nine-month Segment Income rose 21% to $11.5 million from $9.5 million.

• Q3 was a transition quarter, with upfront transaction costs and lower FRE weighing on results; AUM ended Q3 at $1.8 billion, down from $2.0 billion at June 30.

Financial highlights

• Q3 total revenue was $12.9 million versus $11.4 million YoY and $8.7 million in Q2; nine-month revenue was $32.2 million versus $43.6 million.

• Q3 net loss narrowed to $3.7 million from $13.4 million YoY; nine-month net loss was $13.9 million versus $21.1 million. Q3 diluted loss per share was $0.33 versus $1.64.

• Q3 Segment Income was $3.2 million; nine-month Segment Income was $11.5 million versus $9.5 million, comprising FRE of $3.3 million and SRE of $8.2 million.

• Nine-month operating cash outflow was $35.6 million; investing activities provided $5.3 million and financing activities used $33.8 million.

Outlook and guidance

• Management expects profitability to improve from Q4 2026 and build through 2027 as completed transactions contribute for full quarters.

• SOFIX/Yieldstreet and ACIF/BCPL transactions are expected to add $6.5 million in annualized FRE; illustrative annual FRE rises from $4.7 million TTM to $11.2 million pro forma, not formal guidance.

• The proposed AFA advisory transaction is expected to close in Q1 2027, subject to approvals, adding ~$230 million of AUM and becoming immediately FRE-accretive after closing.

• 2027 priorities include transaction-driven FRE growth, retail distribution, Ability's production ramp, and expense control; ReliAbility's SRE contribution is expected next year.