Beneficient (BENF) AI Stock Analysis

• Market Cap: $96.48M
• Dividend Yield: N/A
• Average Volume (3M): 23.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• Revenue Growth: -33.98%
• EPS Growth: 94.83%
• Country: US
• Employees: 80
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): -0.37
• Shares Outstanding: 13,844,817
• 10 Day Avg. Volume: 1,028,732
• 30 Day Avg. Volume: 23,735,752
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.07
• Price to Sales (P/S): 2.73
• P/FCF Ratio: -0.26
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: -3.72
• Enterprise Value/Gross Profit: -3.69
• Enterprise Value/Ebitda: -1.25
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $5.00 ▼(-2.53% Downside)

Beneficient's overall stock score is primarily impacted by its poor financial performance, characterized by negative margins and high leverage. While technical indicators and corporate events show some positive developments, the company's valuation and earnings call sentiment remain concerning. The stock faces significant challenges, with potential growth opportunities in the liquidity services market being a secondary factor.

Positive Factors

Strategic Leadership Change

The appointment of Peter Cangany Jr. as Chairman is expected to strengthen corporate governance and strategic direction, potentially enhancing long-term shareholder value.

Cost Reduction

Significant cost reductions improve operational efficiency, potentially leading to better profitability and cash flow management in the long term.

Market Opportunity

The growing market for private market secondaries presents a significant opportunity for Beneficient to expand its liquidity services, driving future revenue growth.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns.

Negative Revenue Performance

Negative revenue performance indicates ongoing challenges in generating income, which can hinder long-term growth and sustainability.

Fraud Allegations

Fraud allegations against the former CEO could damage the company's reputation and lead to legal and financial repercussions, affecting long-term stability.

Beneficient Business Overview & Revenue Model

Company Description

Beneficient (BENF) is a financial services company specializing in the management and liquidity of alternative investments. The company primarily operates within the private equity and alternative asset sectors, providing solutions that enhance the accessibility and usability of illiquid assets for institutional investors and high-net-worth individuals. Its core offerings include liquidity solutions, asset management services, and investment advisory services designed to facilitate transactions and optimize portfolio performance.

How the Company Makes Money

Beneficient generates revenue through several key streams, including fees from asset management, transaction facilitation, and advisory services. The company charges management fees for overseeing alternative investment portfolios and performance fees based on the returns generated for clients. Additionally, Beneficient earns revenue by providing liquidity solutions, which may involve facilitating the sale or financing of illiquid assets. Strategic partnerships with financial institutions and investment firms further enhance their service offerings and revenue potential, allowing them to tap into a broader client base and leverage complementary services.

Beneficient Financial Statement Overview

Summary

Beneficient's financial performance is poor due to negative net income, negative stockholders' equity, and negative cash flows, indicating significant operational losses, solvency issues, and liquidity challenges.

Income Statement

Beneficient's income statement shows significant challenges, with negative net income and EBIT across the periods, indicating operational losses. The TTM data shows a net profit margin of -336.99%, reflecting severe profitability issues. Despite a positive EBITDA margin of 14.38% in the TTM, the overall financial trajectory is concerning, with volatile revenue and negative growth rates.

Balance Sheet

The balance sheet reveals a negative stockholders' equity in the TTM period, suggesting potential solvency issues. The debt-to-equity ratio cannot be calculated due to negative equity, highlighting financial instability. The equity ratio is also negative, reflecting a worrisome financial position with high liabilities compared to assets.

Cash Flow

Cash flow statements indicate negative operating and free cash flows across periods, suggesting liquidity challenges. The TTM period's operating cash flow to net income ratio is not meaningful due to negative figures, and free cash flow growth is negative, showing a lack of cash generation capability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	-29.12M	-98.91M	-105.40M	47.91M	101.98M	60.29M
Gross Profit	-29.36M	-164.04M	-150.93M	-612.00K	81.20M	60.29M
EBITDA	-86.60M	-2.64B	-234.09M	-41.67M	-13.81M	-135.05M
Net Income	-78.12M	-2.10B	-130.98M	-95.02M	-58.04M	-334.04M
Balance Sheet
Total Assets	316.23M	368.50M	368.50M	2.91B	3.14B	2.82B
Cash, Cash Equivalents and Short-Term Investments	6.68M	7.91M	7.91M	8.73M	70.59M	12.49M
Total Debt	103.96M	130.25M	130.25M	151.44M	171.59M	256.34M
Total Liabilities	368.53M	309.57M	309.57M	231.79M	241.43M	282.84M
Stockholders Equity	-222.89M	-234.35M	-234.35M	1.59B	1.44B	621.50M
Cash Flow
Free Cash Flow	-44.07M	-59.98M	-97.19M	-61.21M	-57.23M	-54.17M
Operating Cash Flow	-43.81M	-58.22M	-95.12M	-57.00M	-54.01M	-51.19M
Investing Cash Flow	59.77M	44.06M	63.02M	44.59M	-5.98M	70.44M
Financing Cash Flow	-15.85M	12.59M	-34.46M	14.86M	43.86M	-5.24M

Beneficient Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BENF, the sentiment is Positive. The current price of 5.13 is below the 20-day moving average (MA) of 5.27, above the 50-day MA of 5.09, and above the 200-day MA of 3.41, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 57.98 is Neutral, neither overbought nor oversold. The STOCH value of 37.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BENF.

Beneficient Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MLCI	61 Neutral	$6.86M	-4.20	-25.88%	1.07%	66.65%	-1497.99%
BCG	55 Neutral	$37.69M	58.66	5.87%	―	-37.08%	―
ATON	48 Neutral	$5.51M	-0.01	―	―	―	―
BENF	45 Neutral	$96.48M	-0.08	―	―	-33.98%	94.83%
CWD	42 Neutral	$9.04M	-0.08	-1438.14%	―	-62.09%	-99.89%
BTTC	34 Underperform	$16.37M	-0.78	-109.09%	―	―	60.78%

Beneficient Corporate Events

Beneficient Appoints Peter T. Cangany Jr. as Chairman

Beneficient announced that its Board of Directors appointed Peter T. Cangany Jr. as Chairman of the Board, effective December 15, 2025. Mr. Cangany brings decades of leadership in financial services, corporate governance, and financial reporting, having previously served as a director of Beneficient since 2019 and held senior leadership positions at Ernst & Young LLP for nearly 40 years. His appointment is expected to bolster Beneficient’s strategic approach and long-term shareholder value creation.

Beneficient Announces Reverse Stock Split Approval

On December 1, 2025, Beneficient‘s stockholders approved a reverse stock split of its Class A and Class B common stock at a ratio of 1-for-8, which was subsequently approved by the Board of Directors to take effect on December 15, 2025. This move is intended to help Beneficient regain compliance with Nasdaq’s minimum bid price requirement. The reverse stock split will reduce the number of shares issued and outstanding and proportionally decrease the number of authorized shares, while increasing the exercise or conversion price per share. Beneficient’s Class A Common Stock will continue trading under the symbol ‘BENF’ on a split-adjusted basis starting December 15, 2025.

Beneficient Mourns Passing of Chairman Thomas O. Hicks

On December 10, 2025, Beneficient announced the passing of Thomas O. Hicks, Chairman of its Board of Directors, who died on December 6, 2025, at the age of 79. Hicks was a pioneering figure in private equity and had a significant impact on the company and the city of Dallas. Beneficient’s Board and management are committed to honoring his legacy by continuing to execute the company’s mission with the vision and courage he exemplified.

Beneficient Approves Reverse Stock Split Proposal

On December 1, 2025, Beneficient held a Special Meeting of Stockholders where approximately 92.8% of the company’s total voting power was represented. During this meeting, stockholders approved two key proposals: a reverse stock split of the company’s common stock at a ratio between 1-for-5 and 1-for-100, and an adjournment of the meeting if necessary to secure further proxy votes. These approvals are significant for Beneficient’s operational strategies and shareholder engagement.

Beneficient Announces Indictment of Former CEO Heppner

On November 5, 2025, Beneficient announced the indictment of its former Chairman and CEO, Brad Heppner, by the United States Attorney for the Southern District of New York. Beneficient had previously parted ways with Heppner after discovering credible evidence of his fraudulent activities. The company is pursuing potential claims against him and is cooperating with the government’s investigation. These developments are seen as a step towards strengthening Beneficient’s foundation for growth and transparency, while maintaining its focus on delivering innovative liquidity and trust solutions for alternative asset holders.

Beneficient Regains Nasdaq Compliance Amid Bid Price Challenge

On October 30, 2025, Beneficient announced it had regained compliance with Nasdaq’s periodic filing and market value of listed securities requirements. However, the company remains noncompliant with the $1.00 per share bid price requirement and plans to seek stockholder approval for a reverse stock split to address this issue within the extension period granted by the Nasdaq Hearings Panel.

Beneficient Announces Limited Conversion of Securities

On October 21, 2025, Beneficient announced a Limited Conversion of subsidiary securities into Class A Common Stock by its Chairman, Thomas O. Hicks, and Interim CEO, James G. Silk, totaling approximately $52.6 million. This conversion aims to better position the company for long-term success, address Nasdaq’s minimum stockholders’ equity requirement, and simplify its capital structure. The conversion aligns the interests of leadership with stockholders, as Hicks and Silk agreed to a lock-up period until October 2028, foregoing potential appreciation in share value during this time.

Beneficient Faces Nasdaq Delisting Notice for Non-Compliance

On October 3, 2025, Beneficient was notified by Nasdaq about non-compliance with the minimum stockholders’ equity requirement, which could lead to delisting. The company is actively working to meet compliance standards, including addressing issues related to periodic filing and bid price requirements, and plans to propose a reverse stock split to regain compliance.