MSP Recovery Announces Fiscal Year and Fourth Quarter 2024 Financial Results
MSP Recovery (NASDAQ: MSPR) reported its fiscal year and Q4 2024 results, highlighting significant financial and operational developments. The company's revenue increased 136% to $18.2 million in 2024, up from $7.7 million in 2023. However, the company faced substantial losses with a net loss of $1,556.8 million and an operating loss of $1,274 million.
Key developments include debt restructuring initiatives with Virage Capital and Hazel Partners, featuring a $9.75 million bridge funding, potential $25 million working capital for a new servicing entity, and a $144 million debt-to-equity conversion. The company secured settlements exceeding $8 million in pharmaceutical litigation and $10 million from property & casualty insurers.
Notable concerns include a going concern warning and a $752.7 million non-cash impairment charge. The company's total paid amount of owned claims increased 2.9% to $380.4 billion, while the paid value of potentially recoverable claims decreased 1.3% to $87.7 billion.
MSP Recovery (NASDAQ: MSPR) ha comunicato i risultati dell'anno fiscale e del quarto trimestre 2024, evidenziando importanti sviluppi finanziari e operativi. I ricavi dell'azienda sono aumentati del 136%, raggiungendo 18,2 milioni di dollari nel 2024, rispetto ai 7,7 milioni di dollari del 2023. Tuttavia, la società ha subito perdite significative con una perdita netta di 1.556,8 milioni di dollari e una perdita operativa di 1.274 milioni di dollari.
Tra gli sviluppi chiave figurano iniziative di ristrutturazione del debito con Virage Capital e Hazel Partners, che includono un finanziamento ponte di 9,75 milioni di dollari, un potenziale capitale circolante di 25 milioni di dollari per una nuova entità di servizi e una conversione del debito in capitale di 144 milioni di dollari. La società ha ottenuto accordi per oltre 8 milioni di dollari in contenziosi farmaceutici e 10 milioni di dollari da assicuratori di proprietà e infortuni.
Tra le preoccupazioni principali vi sono un avviso di continuità aziendale e una svalutazione non monetaria di 752,7 milioni di dollari. L'importo totale pagato per i reclami di proprietà è aumentato del 2,9% a 380,4 miliardi di dollari, mentre il valore pagato per i reclami potenzialmente recuperabili è diminuito dell'1,3% a 87,7 miliardi di dollari.
MSP Recovery (NASDAQ: MSPR) anunció sus resultados del año fiscal y del cuarto trimestre de 2024, destacando importantes avances financieros y operativos. Los ingresos de la compañía aumentaron un 136%, alcanzando 18,2 millones de dólares en 2024, frente a los 7,7 millones de dólares en 2023. Sin embargo, la empresa enfrentó pérdidas significativas con una pérdida neta de 1.556,8 millones de dólares y una pérdida operativa de 1.274 millones de dólares.
Entre los desarrollos clave se incluyen iniciativas de reestructuración de deuda con Virage Capital y Hazel Partners, que comprenden un financiamiento puente de 9,75 millones de dólares, un posible capital de trabajo de 25 millones de dólares para una nueva entidad de servicios y una conversión de deuda a capital de 144 millones de dólares. La compañía logró acuerdos por más de 8 millones de dólares en litigios farmacéuticos y 10 millones de dólares de aseguradoras de propiedad y accidentes.
Las preocupaciones destacadas incluyen una advertencia sobre la continuidad operativa y un cargo por deterioro no monetario de 752,7 millones de dólares. El monto total pagado por reclamaciones propias aumentó un 2,9% a 380,4 mil millones de dólares, mientras que el valor pagado por reclamaciones potencialmente recuperables disminuyó un 1,3% a 87,7 mil millones de dólares.
MSP Recovery (NASDAQ: MSPR)는 2024 회계연도 및 4분기 실적을 발표하며 중요한 재무 및 운영 성과를 강조했습니다. 회사의 매출은 2023년 770만 달러에서 2024년 1,820만 달러로 136% 증가했습니다. 그러나 순손실은 15억 5,680만 달러, 영업손실은 12억 7,400만 달러에 달하는 큰 손실을 기록했습니다.
주요 발전 사항으로는 Virage Capital 및 Hazel Partners와의 부채 구조조정 계획이 포함되며, 975만 달러의 브리지 펀딩, 새로운 서비스 법인을 위한 2,500만 달러의 운전자본 가능성, 1억 4,400만 달러의 부채를 주식으로 전환하는 내용이 있습니다. 회사는 제약 소송에서 800만 달러 이상, 재산 및 상해 보험사로부터 1,000만 달러의 합의를 확보했습니다.
주요 우려 사항으로는 계속기업 경고와 7억 5,270만 달러의 비현금성 손상차손이 있습니다. 회사가 지급한 소유 청구 총액은 2.9% 증가한 3,804억 달러이며, 회수 가능성이 있는 청구 지급액은 1.3% 감소한 877억 달러입니다.
MSP Recovery (NASDAQ : MSPR) a publié ses résultats pour l'exercice fiscal et le quatrième trimestre 2024, mettant en lumière des développements financiers et opérationnels importants. Le chiffre d'affaires de l'entreprise a augmenté de 136 %, atteignant 18,2 millions de dollars en 2024, contre 7,7 millions de dollars en 2023. Toutefois, la société a enregistré des pertes importantes avec une perte nette de 1 556,8 millions de dollars et une perte d'exploitation de 1 274 millions de dollars.
Les évolutions clés comprennent des initiatives de restructuration de la dette avec Virage Capital et Hazel Partners, incluant un financement relais de 9,75 millions de dollars, un fonds de roulement potentiel de 25 millions de dollars pour une nouvelle entité de services, et une conversion de dette en actions de 144 millions de dollars. La société a obtenu des règlements dépassant 8 millions de dollars dans des litiges pharmaceutiques et 10 millions de dollars auprès d'assureurs de biens et accidents.
Parmi les préoccupations notables figurent un avertissement sur la continuité d'exploitation et une charge de dépréciation non monétaire de 752,7 millions de dollars. Le montant total payé pour les réclamations détenues a augmenté de 2,9 % pour atteindre 380,4 milliards de dollars, tandis que la valeur payée pour les réclamations potentiellement récupérables a diminué de 1,3 % pour s'établir à 87,7 milliards de dollars.
MSP Recovery (NASDAQ: MSPR) berichtete über die Ergebnisse des Geschäftsjahres und des vierten Quartals 2024 und hob bedeutende finanzielle und operative Entwicklungen hervor. Der Umsatz des Unternehmens stieg 2024 um 136 % auf 18,2 Millionen US-Dollar, gegenüber 7,7 Millionen US-Dollar im Jahr 2023. Dennoch verzeichnete das Unternehmen erhebliche Verluste mit einem Nettoverlust von 1.556,8 Millionen US-Dollar und einem operativen Verlust von 1.274 Millionen US-Dollar.
Zu den wichtigsten Entwicklungen zählen Initiativen zur Schuldenrestrukturierung mit Virage Capital und Hazel Partners, darunter eine Überbrückungsfinanzierung von 9,75 Millionen US-Dollar, ein mögliches Betriebskapital von 25 Millionen US-Dollar für eine neue Serviceeinheit sowie eine Schulden-zu-Eigenkapital-Umwandlung in Höhe von 144 Millionen US-Dollar. Das Unternehmen sicherte sich Vergleiche in Höhe von über 8 Millionen US-Dollar in pharmazeutischen Rechtsstreitigkeiten und 10 Millionen US-Dollar von Sach- und Unfallversicherern.
Zu den bemerkenswerten Bedenken zählen eine Warnung zur Unternehmensfortführung und eine nicht zahlungswirksame Wertminderung in Höhe von 752,7 Millionen US-Dollar. Der Gesamtbetrag der gezahlten Ansprüche im Eigentum stieg um 2,9 % auf 380,4 Milliarden US-Dollar, während der gezahlte Wert potenziell rückforderbarer Ansprüche um 1,3 % auf 87,7 Milliarden US-Dollar sank.
- 136% revenue growth to $18.2 million in 2024
- $9.75 million bridge funding secured through restructuring agreement
- $18.1 million in total settlements from pharmaceutical and P&C insurance cases
- Acquisition of additional claims with $10.6 billion paid amount
- Extension of debt maturity with Yorkville to November 2026
- Substantial net loss of $1,556.8 million in 2024
- Going concern warning issued about operational continuity
- $752.7 million non-cash impairment charge recorded
- Operating loss increased to $1,274 million from $559.9 million in 2023
- Declining potentially recoverable claims value (down 1.3% to $87.7 billion)
Insights
MSP Recovery's FY2024 results reveal critical financial distress despite some operational progress. While revenue increased 136% to $18.2 million, this is overshadowed by an operating loss of $1.274 billion (compared to $559.9 million in 2023) and a staggering net loss of $1.556 billion. Most concerning is the $752.7 million impairment charge on intangible assets, indicating a substantial devaluation of the company's claims portfolio.
The cash position of $12.3 million is dangerously insufficient given the scale of operations and losses. The company's explicit statement that "substantial doubt exists regarding our ability to continue as a going concern" is the most severe warning management can issue about financial viability.
The restructuring efforts - including $9.75 million in bridge funding, potential $25 million in working capital, and a $144 million debt-to-equity conversion by executives - represent emergency measures rather than strength. While the debt maturity extension to November 2026 provides temporary breathing room, it merely delays obligations rather than resolving fundamental issues.
The reverse stock split implemented to maintain Nasdaq compliance further signals financial weakness. Despite the company's massive claims portfolio with $380.4 billion in paid amount, their ability to monetize these assets remains unproven, with a recovery multiple of just 0.08 overall in 2024.
MSP Recovery's core business model of pursuing Medicare Secondary Payer recoveries faces substantial execution challenges despite their reported legal victories. The $8 million pharmaceutical litigation settlements and $10 million property & casualty insurer settlements represent minimal financial impact relative to their massive claims portfolio and operating losses.
The key legal risk factor disclosed in the report concerns the Eleventh Circuit Court ruling on the four-year statute of limitations for Medicare Secondary Payer claims. This potentially threatens $9.8 billion of their claimed recoverable value. While the company is deploying alternative legal strategies, including amendment filings and tolling arguments based on fraudulent concealment theories, these approaches face significant judicial uncertainty.
Their legal recovery strategy appears geographically constrained, as they note the Eleventh Circuit decision only applies to specific jurisdictions. The Massachusetts District Court's divergent interpretation provides some hope, but creates a patchwork legal landscape requiring complex jurisdictional strategies.
Despite owning claims with a total paid amount of $380.4 billion, only $87.7 billion is identified as potentially recoverable, and actual recovery percentages remain minuscule. The withdrawal of recovery guidance due to "inherently uncertain" litigation outcomes further undermines confidence in their ability to translate their legal claims portfolio into meaningful cash flow.
MIAMI, April 16, 2025 (GLOBE NEWSWIRE) -- MSP Recovery, Inc. (NASDAQ: MSPR) (“MSP,” or the “Company”), a Medicare, Medicaid, commercial, and secondary payer reimbursement recovery and technology leader, announced financial results for the fiscal year and fourth quarter ended December 31, 2024.
“MSP Recovery has overcome significant industry challenges to become the leader in enforcing Medicare Secondary Payer laws, protecting the Medicare Trust Fund, and paving the road for healthcare reimbursement recoveries,” said MSP Recovery Founder and CEO John H. Ruiz. “We’ve made legal and technological progress, holding primary payers accountable. Through pioneering legal strategy and healthcare innovation, we’ve exposed systemic flaws and secured meaningful settlements from Primary Payers. Our restructuring efforts and proprietary technology position MSP Recovery to scale recovery efforts with greater efficiency and impact.” Ruiz continued, “With deep expertise at the intersection of law, healthcare, and technology, we are uniquely equipped to combat systemic waste in the private and public sector, making a positive impact on the nation’s healthcare system and ultimately, helping improve patient care.”
Fiscal Year 2024 Highlights
Strategic Restructuring and Capital Initiatives
- Debt Reduction and Liquidity Enhancement: In April 2025, MSP entered into a term sheet with Virage Capital and Hazel Partners to reduce debt, streamline operations, and refocus on core Medicare and Medicaid recoveries. The agreement provides:
$9.75 million in bridge funding ($6.5 million available through July 2025);- Up to
$25 million in working capital for a new, independently managed and operated servicing entity; $144 million debt-to-equity conversion by CEO John H. Ruiz and CLO Frank C. Quesada (collectively, the “MSP Principals”) to significantly reduce leverage, subject to shareholder approval and other conditions;- A
$25 million collateral pledge by MSP Principals to support future funding for the Company; and - Release of MSP Recovery’s corporate guarantee approx.
$1.1B in obligations ($1.2B as of March 31, 2025), shifting liability away from the Company.
The transactions remain subject to final agreements, third-party and regulatory approvals, and other closing conditions. More information can be found on page i of the Company’s Annual Report on Form 10-K filed on April 15, 2025 (the “Annual Report”).
- Extension of Debt Maturity: The Company amended its agreement with YA II PN, Ltd. (“Yorkville”), extending the maturity date of its convertible notes and deferring the first monthly payment to November 30, 2026. This amendment also waived certain limitations, potentially enabling the Company to raise capital by selling shares to Yorkville over time.
Legal Settlements and Claims Recovery
- Pharmaceutical Litigation Settlement: In 2024, MSP entered into settlements in its pharmaceutical litigation portfolio totaling more than
$8.0 million in cash recoveries plus non-monetary consideration, such as obtaining prescription drug claims data to assist in identifying and recovering against other responsible parties. - Property & Casualty Insurer Settlements: The Company entered into comprehensive settlement agreements with property and casualty insurers totaling more than
$10.0 million in cash recoveries, plus non-monetary consideration. These agreements included provisions for data sharing and collaborative processes to resolve future claims, enhancing the Company’s claims reconciliation capabilities.
Technological Advancements
- Launch of Clearinghouse Solution: The Company advanced initiatives to eliminate wasteful Medicare spending by launching its clearinghouse solution, built in partnership with Palantir Technologies, Inc. The clearinghouse platform integrates advanced artificial intelligence (“AI”) tools, natural language processing (“NLP”), and machine learning (“ML”) to create a robust data analytics system capable of capturing and managing extensive healthcare data from multiple sources. to identify and recover improper payments.
- Acquisition of Additional MSP Claims: In October 2024, the Company acquired additional Medicare Secondary Payer claims with an overall paid amount exceeding
$10.6 billion , encompassing over 450,000 Medicare members. This acquisition enhances the Company’s ability to identify and recover improper payments.
Corporate Developments
- Brand Consolidation: In December 2024, the Company announced the consolidation of all lines of business under the MSP Recovery brand, and the Company’s Class A Common Stock, New Warrants, and Public Warrants began trading on Nasdaq under the ticker symbols “MSPR,” “MSPRW,” and “MSPRZ,” respectively. This strategic move aimed to streamline operations and align initiatives with the newly formed Department of Government Efficiency (DOGE).
- Reverse Stock Split: Effective November 15, 2024, the Company implemented a 1-for-25 reverse stock split of its common stock to regain compliance with Nasdaq’s minimum bid price requirement.
2024 Financial Highlights
- Revenue: Total revenue for the year ended December 31, 2024 was
$18.2 million compared to$7.7 million for the year ended December 31, 2023, an increase of approximately136% from the previous year. The$10.5 million increase for the year ended December 31, 2024 was driven by increased settlements during the period. While the Company remains in active settlement negotiations with several major insurers, the settlements finalized to date have been limited to carriers representing only a minor share of the property and casualty insurance market. - Operating Loss: Operating loss for the year ended December 31, 2024 was
$1,274 million , compared with$559.9 million during the year ended December 31, 2023. Adjusted operating loss for the year ended December 31, 2024 was$35.4 million , excluding non-cash claims amortization expense of$484.1 million , impairment of intangible assets of$752.7 million , and shared-based compensation of$2.1 million .1 - Net Loss: Net loss for the year ended December 31, 2024 was
$1,556.8 million and$360.5 million to controlling members, or net loss per share of$359.95 per share, based on 1,001,525 million weighted average shares outstanding. Adjusted net loss for the year ended December 31, 2024 was$41.3 million , excluding the non-cash item noted above, change in fair value of warrant and derivative liabilities of$136.9 million , and$413.6 million of non-cash expenses related to paid in kind interest.1 - Liquidity: As of December 31, 2024, cash and cash equivalents were
$12.3 million . The Company has potential additional capital resources, as set forth in more detail in Item 7 of our Annual Report.
(1) Additional information regarding the non-GAAP financial measures discussed in this release, including an explanation of these measures and how each is calculated, is included below under the heading “Non-GAAP Financial Measures.” A reconciliation of GAAP to non-GAAP financial measures has also been provided in the financial tables included below.
Assigned Recovery Rights Claims Paid and Billed Value
The table below outlines the Company’s claims data received in the most recent periods. The amounts represent data received from current and new assignors:
| Year Ended December 31, | |||||||||||
| $ in billions | 2024 | 2023 | 2022 | ||||||||
| Paid Amount | $ | 380.4 | $ | 369.8 | $ | 374.8 | |||||
| Paid Value of Potentially Recoverable Claims(2) | 87.7 | 88.9 | 89.6 | ||||||||
| Billed Value of Potentially Recoverable Claims | 375.3 | 373.5 | 377.8 | ||||||||
| Recovery Multiple(1) | 0.08 | N/A | N/A | ||||||||
| Penetration Status of Portfolio | 86.8 | % | 86.8 | % | 85.8 | % | |||||
(1) During the year ended December 31, 2024, the Company received gross recoveries of
(2) On August 10, 2022, the United States Court of Appeals, Eleventh Circuit held that a four-year statute of limitations period applies to certain claims brought under the Medicare Secondary Payer Act’s private cause of action, and that the limitations period begins to run on the date that the cause of action accrued. This opinion may render certain Claims held by the Company unrecoverable and may substantially reduce PVPRC and BVPRC as calculated. As our cases were filed at different times and in various jurisdictions, and prior to data matching with a defendant we are not able to accurately calculate the entirety of damages specific to a given defendant, we cannot calculate with certainty the impact of this ruling at this time. However, the Company has deployed several legal strategies (including but not limited to seeking to amend existing lawsuits in a manner that could allow claims to relate back to the filing date as well as asserting tolling arguments based on theories of fraudulent concealment) that would apply to tolling the applicable limitations period and minimizing any material effect on the overall collectability of its claim rights. In addition, the Eleventh Circuit decision applies only to district courts in the Eleventh Circuit. Many courts in other jurisdictions have applied other statutes of limitations to the private cause of action, including borrowing the three-year statute of limitations applicable to the government’s cause of action; and borrowing from the False Claims Act’s six-year period. The most recent decision on the issue from the District Court of Massachusetts, for example, applies the same statute of limitations as Eleventh Circuit, but expressly disagrees with the Eleventh Circuit’s application of the “accrual” rule and instead adopted the notice-based trigger that the company has always argued should apply. This would mean that the limitations period for unreported claims has not even begun to accrue. This is a complex legal issue that will continue to evolve in jurisdictions across the country. Nevertheless, if the application of the statute of limitations as determined by the Eleventh Circuit was applied to all Claims assigned to us, we estimate that the effect would be a reduction of PVPRC by approximately
- Total Paid Amount of owned claims has increased to
$380.4 billion , as of December 31, 2024, up$10.6 billion or2.9% from$369.8 billion as of December 31, 2023. This figure represents the amounts our clients/assignors have paid for in medical bills (including capitation payments). - Paid Value of Potential Recoverable Claims has decreased to
$87.7 billion , as of December 31, 2024, down$1.2 billion or1.3% from$88.9 billion as of December 31, 2023. This figure represents the amounts the Company estimates are potentially recoverable as identified by its algorithms.
Financial Outlook
Recoveries Guidance: The Company continues to make progress in its recovery efforts, and management believes such projected recoveries are ultimately collectible. Recoveries are dependent on the completion of litigation and the negotiation of settlements, which are inherently uncertain and are subject to risk of delay and litigation outcomes. As a result, the Company will not provide future guidance on recoveries that are dependent on litigation or subrogation process.
Additional information regarding the non-GAAP financial measures discussed in this release, including an explanation of these measures and how each is calculated, is included below under the heading “Non-GAAP Financial Measures.” A reconciliation of GAAP to non-GAAP financial measures has also been provided in the financial tables accompanying this release.
Liquidity Outlook and Going Concern Assessment: The Company has concluded that, as of the date of this filing, substantial doubt exists regarding our ability to continue as a going concern within one year following the issuance of these consolidated financial statements.
The Company’s liquidity will depend on the ability to generate substantial Claims recovery income and Claims recovery services income in the near future, the timing of which is uncertain, as well as its ability to secure funding from capital sources. The Company’s principal liquidity needs have been working capital, debt service, and Claims financing obligations.
The Company anticipates sources of liquidity to include the Working Capital Credit Facility, the Yorkville SEPA, and beyond July 2025, the MSP Principals’ commitment to pledge
Impairment of Definite-Lived Intangible Assets: The Company’s estimation of the fair value of its CCRA intangible assets resulted in a non-cash impairment charge amounting to
About MSP Recovery
Founded in 2014, MSP Recovery has become a Medicare, Medicaid, commercial, and secondary payer reimbursement recovery leader, disrupting the antiquated healthcare reimbursement system with data-driven solutions to secure recoveries from responsible parties. MSP Recovery innovates technologies and provides comprehensive solutions for multiple industries including healthcare and legal. For more information, visit: MSPRecovery.com
Forward Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as “anticipate,” “believe,” “expect,” “intend,” “plan” and “will” or, in each case, their negative, or other variations or comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, these statements are not guarantees of future performance or results and actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by MSP Recovery herein speaks only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for MSPR to predict or identify all such events or how they may affect it. MSPR has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to, MSPR’s ability to capitalize on its assignment agreements and recover monies that were paid by the assignors; the inherent uncertainty surrounding settlement negotiations and/or litigation, including with respect to both the amount and timing of any such results; the validity of the assignments of claims to MSPR; the ability to successfully expand the scope of MSPR’s claims or obtain new data and claims from MSPR’s existing assignor base or otherwise; MSPR’s ability to innovate and develop new solutions, and whether those solutions will be adopted by MSPR’s existing and potential assignors; negative publicity concerning healthcare data analytics and payment accuracy; and those additional factors included in MSPR’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by it with the Securities and Exchange Commission. These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.
Media:
Media@msprecovery.com
Investors:
Investors@msprecovery.com
| MSP RECOVERY, INC. and Subsidiaries Consolidated Balance Sheets | ||||||||
| December 31, | ||||||||
| (In thousands, except share and per share data) | 2024 | 2023 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 12,328 | $ | 11,633 | ||||
| Accounts receivable | 295 | 217 | ||||||
| Affiliate receivable (1) | 1,204 | 1,188 | ||||||
| Prepaid expenses and other current assets (1) | 1,647 | 8,908 | ||||||
| Total current assets | 15,474 | 21,946 | ||||||
| Property and equipment, net | 5,159 | 4,911 | ||||||
| Intangible assets, net (2) | 1,898,223 | 3,132,796 | ||||||
| Right-of-use assets | 227 | 342 | ||||||
| Total assets | $ | 1,919,083 | $ | 3,159,995 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 13,971 | $ | 6,244 | ||||
| Affiliate payable (1) | 21,664 | 19,822 | ||||||
| Commission payable | 1,342 | 821 | ||||||
| Derivative liability | 211 | 37 | ||||||
| Warrant liability (1) | 22,373 | 268 | ||||||
| Guaranty obligation (1) | 1,126,490 | — | ||||||
| Claims financing obligation and notes payable (1) | 31,200 | — | ||||||
| Interest payable (1) | 33,298 | — | ||||||
| Other current liabilities (1) | 14,765 | 19,314 | ||||||
| Total current liabilities | 1,265,314 | 46,506 | ||||||
| Guaranty obligation (1) | — | 941,301 | ||||||
| Claims financing obligation and notes payable (1) | 633,026 | 548,276 | ||||||
| Lease liabilities | 102 | 235 | ||||||
| Loan from related parties (1) | 130,328 | 130,709 | ||||||
| Interest payable (1) | 14,828 | 73,839 | ||||||
| Other long-term liabilities | 3,894 | — | ||||||
| Total liabilities | $ | 2,047,492 | $ | 1,740,866 | ||||
| Commitments and contingencies (Note 12) | ||||||||
| Stockholders’ Equity: | ||||||||
| Class A common stock, | $ | — | $ | — | ||||
| Class V common stock, | — | — | ||||||
| Additional paid-in capital | 546,635 | 357,941 | ||||||
| Accumulated deficit | (446,050 | ) | (85,551 | ) | ||||
| Total stockholders’ equity | $ | 100,585 | $ | 272,390 | ||||
| Non-controlling interest | (228,994 | ) | 1,146,739 | |||||
| Total equity | $ | (128,409 | ) | $ | 1,419,129 | |||
| Total liabilities and equity | $ | 1,919,083 | $ | 3,159,995 | ||||
1. As of December 31, 2024 and 2023, 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 14, Related Party Transactions, for further details.
2. As of December 31, 2024 and 2023, intangible assets, net included
The accompanying notes are an integral part of these consolidated financial statements.
| MSP RECOVERY, INC. and Subsidiaries Consolidated Statements of Operations | ||||||||
| Year Ended December 31, | ||||||||
| (In thousands, except share and per share data) | 2024 | 2023 | ||||||
| Claims recovery income | $ | 18,122 | $ | 7,207 | ||||
| Claims recovery service income | — | 498 | ||||||
| Other | 127 | — | ||||||
| Total Revenues | $ | 18,249 | $ | 7,705 | ||||
| Operating expenses | ||||||||
| Cost of revenues (1) | 9,607 | 2,145 | ||||||
| Claims amortization expense | 484,076 | 476,492 | ||||||
| General and administrative (2) | 22,231 | 26,508 | ||||||
| Professional fees | 14,131 | 22,766 | ||||||
| Professional fees – legal (3) | 9,519 | 34,401 | ||||||
| Impairment of intangible assets | 752,697 | — | ||||||
| Allowance for credit losses | — | 5,000 | ||||||
| Depreciation and amortization | 277 | 263 | ||||||
| Total operating expenses | 1,292,538 | 567,575 | ||||||
| Operating Loss | $ | (1,274,289 | ) | $ | (559,870 | ) | ||
| Interest expense (4) | (420,032 | ) | (289,169 | ) | ||||
| Other income (expense), net | 542 | 9,290 | ||||||
| Change in fair value of warrant and derivative liabilities | 136,934 | 4,604 | ||||||
| Net loss before provision for income taxes | $ | (1,556,845 | ) | $ | (835,145 | ) | ||
| Provision for income tax expense | — | — | ||||||
| Net loss | $ | (1,556,845 | ) | $ | (835,145 | ) | ||
| Less: Net loss attributable to non-controlling interests | 1,196,346 | 778,797 | ||||||
| Net loss attributable to MSP Recovery, Inc. | $ | (360,499 | ) | $ | (56,348 | ) | ||
| Basic and diluted weighted average shares outstanding, Class A Common Stock | 1,001,525 | 356,591 | ||||||
| Basic and diluted net loss per share, Class A Common Stock | $ | (359.95 | ) | $ | (158.02 | ) | ||
1. For the years ended December 31, 2024 and 2023, cost of Claim recoveries included
2. For the years ended December 31, 2024 and 2023, general and administrative expenses included
3. For the year ended December 31, 2024 and 2023, Professional Fees - Legal included
4. For the year ended December 31, 2024 and 2023, Interest expense included
The accompanying notes are an integral part of these consolidated financial statements.
Non-GAAP Financial Measures
| MSP RECOVERY, INC. and Subsidiaries Non-GAAP Reconciliation | ||||||||
| Year Ended December 31, | ||||||||
| (In thousands) | 2024 | 2023 | ||||||
| GAAP Operating Loss | $ | (1,274,289 | ) | $ | (559,870 | ) | ||
| Professional fees paid in stock | 2,072 | 830 | ||||||
| Claims amortization expense | 484,076 | 476,492 | ||||||
| Impairment of intangible assets | 752,697 | — | ||||||
| Allowance for credit losses | — | 5,000 | ||||||
| Adjusted Operating Loss | $ | (35,444 | ) | $ | (77,548 | ) | ||
| GAAP Net Loss | $ | (1,556,845 | ) | $ | (835,145 | ) | ||
| Professional fees paid in stock | 2,072 | 830 | ||||||
| Claims amortization expense | 484,076 | 476,492 | ||||||
| Impairment of intangible assets | 752,697 | — | ||||||
| Allowance for credit losses | — | 5,000 | ||||||
| Interest expense (1) | 413,648 | 204,287 | ||||||
| Change in fair value of warrant and derivative liabilities | (136,934 | ) | (4,604 | ) | ||||
| Adjusted Net Loss | $ | (41,286 | ) | $ | (153,140 | ) | ||
(1) Interest expense included above excludes any interest expense payments made in cash during the year ended December 31, 2024.
In addition to the financial measures prepared in accordance with GAAP, this Annual Report also contains non-GAAP financial measures. We consider “adjusted net loss” and “adjusted operating loss” as non-GAAP financial measures and important indicators of performance and useful metrics for management and investors to evaluate the Company’s ongoing operating performance on a consistent basis across reporting periods. We believe these measures provide useful information to investors. Adjusted net loss represents net loss adjusted for certain non-cash and non-recurring expenses and adjusted operating loss items represent operating loss adjusted for certain non-cash and non-recurring expenses. A reconciliation of these non-GAAP measures to their most relevant GAAP measure is included in Management’s Discussion and Analysis in the Annual Report Filed on Form 10-K.
FAQ
What was MSP Recovery's (MSPR) revenue growth in 2024?
How much debt reduction is planned in MSPR's restructuring agreement?
What settlements did MSPR achieve in 2024?
What is MSPR's current financial position and liquidity?
How did MSPR's claims portfolio perform in 2024?
