Surging Profit Margins and Revenue Might Change The Case For Investing In Burford Capital (BUR)

Simply Wall St
  • Burford Capital recently reported its second quarter and half-year 2025 results, showing revenue of US$191.29 million and net income of US$88.3 million for the quarter, both up from the previous year.
  • Significantly higher profit margins and revenue compared to the same periods last year highlight a period of strengthened financial performance for the legal finance company.
  • Next, we examine how this strong revenue and net income growth could influence Burford Capital’s investment narrative and risk profile.

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Burford Capital Investment Narrative Recap

To believe in Burford Capital as a shareholder means having confidence in the growth and maturing of legal finance globally, as well as Burford’s ability to monetize complex litigation investments. The strong second-quarter results underline momentum, but the company’s significant exposure to the YPF case still looms large as the defining short-term catalyst and single biggest risk; this earnings update brings no material change to that risk profile, as the outcome and cash realization timeline for YPF remain unresolved. One of Burford’s most relevant recent actions is its successful July issuance of US$500 million in senior notes at a 7.50% rate, which shores up funding flexibility. This fresh capital could smooth case funding cycles and help offset volatility tied to large, milestone-driven investments, supporting management’s goal of portfolio diversification and margin stability. Yet, even with rising profits, investors should not overlook the fact that...

Read the full narrative on Burford Capital (it's free!)

Burford Capital's outlook anticipates $996.5 million in revenue and $497.5 million in earnings by 2028. This rests on a forecast annual revenue growth rate of 31.0% and a $255.6 million increase in earnings from the current $241.9 million.

Uncover how Burford Capital's forecasts yield a $19.70 fair value, a 42% upside to its current price.

Exploring Other Perspectives

BUR Earnings & Revenue Growth as at Aug 2025

Simply Wall St Community members provided two fair value estimates for Burford between US$19.70 and US$20.18. With continued dependence on the YPF case, it is clear that opinions about Burford’s longer-term stability and valuation differ for good reason, check out these alternative viewpoints for more insight.

Explore 2 other fair value estimates on Burford Capital - why the stock might be worth as much as 46% more than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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