Executive Summary

Q3 2025 was a transition quarter: Mount Logan closed its 180 Degree Capital merger, began trading on Nasdaq (MLCI), declared its first U.S. cash dividend ($0.03/share), and highlighted a forthcoming shareholder liquidity program, while reporting a consolidated pre-tax loss due to one-time deal costs and purchase accounting .
Asset Management FRE remained resilient ($2.5m in Q3; $7.0m YTD) aided by expense discipline and a new profit-share stream with Sierra Crest/BCIC; Insurance Solutions posted a 7.4% portfolio yield but lower net investment income year over year .
Consolidated revenue declined 10% YoY to $11.4m; basic EPS was ($1.64) vs. ($0.40) a year ago, with results impacted by transaction costs, accelerated equity comp, and intangible amortization, partially offset by a $4.46m gain on acquisition and investment gains .
Management framed 2026+ upside from AUM expansion and recurring earnings power; near‑term catalysts include the new dividend and a planned liquidity/tender program anticipated at or above the $9.43 merger-implied level (subject to board determination) .

What Went Well and What Went Wrong

What Went Well
- FRE durability and operating leverage: Asset Management FRE of $2.5m in Q3 ($7.0m YTD) benefited from expense discipline and a new recurring profit-sharing stream with Sierra Crest/BCIC, reinforcing stability/scalability of fee-based earnings .
- Insurance investment performance: Achieved a 7.4% quarterly yield on the insurance portfolio (7.9% excl. funds withheld/Modco), supporting spread income despite lower benchmark rates .
- Capital formation and signaling: Initiated a $0.03/share cash dividend for Q3 and outlined a plan to provide shareholders a liquidity opportunity at a premium to current price; management emphasized multi‑year growth in AUM, FRE, and SRE .
What Went Wrong
- Headline loss from one‑time items: Consolidated pre‑tax loss of $11.1m (vs. $2.1m loss LY) driven by business combination transaction costs, accelerated RSU vesting, and higher intangible amortization, partly offset by a $4.46m acquisition gain and investment gains .
- Insurance spread pressure: SRE fell to $1.1m YTD (vs. $9.6m LY) and net investment spread compressed as lower Treasury yields and higher cost of funds (DAC on NSG MYGA, higher LTC claims) weighed on spreads .
- YoY revenue softness: Total revenue declined 10% YoY to $11.4m; Asset Management management fees fell 33% YoY; Insurance net investment income decreased 12% YoY; funds‑withheld income remained negative .

Financial Results

Overall results vs. prior year (Q3 2024); estimates unavailable (see Estimates Context).

Metric	Q3 2024	Q3 2025
Total Revenues ($000)	12,706	11,439
Income (Loss) Before Taxes ($000)	(2,122)	(11,130)
Net Income (Loss) ($000)	(2,431)	(13,436)
Basic EPS ($)	(0.40)	(1.64)

Segment revenue detail

Segment/Line ($000)	Q3 2024	Q3 2025
Asset Mgmt – Management fees	2,763	1,851
Asset Mgmt – Incentive fees	742	431
Asset Mgmt – Equity investment earnings	74	481
Asset Mgmt – Revenues subtotal	3,579	2,763
Insurance – Net premiums	(4,084)	(4,492)
Insurance – Product charges	89	184
Insurance – Net investment income	19,413	16,992
Insurance – Net gains (losses) from investment activities	5,239	3,775
Insurance – Net revenues of consolidated VIEs	3,757	2,797
Insurance – NII (loss) on funds withheld	(15,373)	(10,656)
Insurance – Other income	86	76
Insurance – Revenues subtotal	9,127	8,676

Selected non-GAAP and other items

Metric	Q3 2024	Q3 2025
Asset Mgmt – Fee Related Earnings (FRE) ($000)	2,564	2,523
Insurance – Spread Related Earnings (SRE) ($000)	2,171	1,127
Asset Mgmt – Investment & other income ($000)	442	6,347
Gain on acquisition ($000)	—	4,457

Notes:

Prior two quarter U.S. SEC earnings releases were not available in this dataset; Q2 2025 10‑Q relates to Yukon New Parent (pre‑close shell) with no operating activity, limiting sequential trend analysis .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance/Action	Change
Dividend per common share	Q3 2025 distribution (payable Q4 2025)	None disclosed	$0.03 per share declared, payable Dec 11, 2025 (record Nov 25, 2025)	Initiated
Shareholder liquidity program	Post‑close	Previously announced intent	Company plans liquidity opportunity at a premium to current price; separate plan to launch a tender up to $15m initially; subsequent repurchases up to an additional $10m expected; pricing anticipated at or above $9.43 merger‑implied level (subject to board)	Reiterated/Specified
Revenue/Margins/OpEx/Tax	FY25	Not provided	No explicit quantitative guidance provided in filings reviewed	N/A

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was found in the document set; themes below reflect press release commentary.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
Business combination & U.S. listing	Not available in U.S. filings; legacy reported in Canada	Turned transformational: closed TURN merger; U.S. domestication; Nasdaq listing	Completed integration milestone
Capital returns & liquidity	N/A	Initiated $0.03 dividend; plan for liquidity/tender at premium; anticipated pricing at/above $9.43 merger-implied	New/positive signal
AUM/FRE growth pathway	N/A	New profit‑share with Sierra Crest/BCIC; focus on scaling AUM, FRE, SRE in 2026+	Building blocks in place
Insurance spread dynamics	N/A	7.4% portfolio yield; SRE pressured by lower rates, higher DAC on NSG MYGA, higher LTC claims	Mixed: yield solid, spread compressed
Cost/efficiency	N/A	One‑time deal costs and accelerated equity comp; advisor‑level efficiency aiding FRE	Near‑term headwind; structural efficiency

Management Commentary

“The third quarter of 2025 was truly transformational... completed our business combination with 180 Degree Capital... re‑domiciled to the U.S. and now trade on Nasdaq... focused on executing near‑term initiatives, including our previously announced plan to provide shareholders with a liquidity opportunity at a premium to our current share price.” — Ted Goldthorpe, CEO .
“Our focus remains squarely on growth — both organic and strategic — as we pursue a multi‑year plan to expand AUM, Fee‑Related Earnings, and Spread‑Related Earnings... We believe Mount Logan is exceptionally well positioned to accelerate AUM growth, enhance recurring earnings power, and drive increased profitability in 2026 and beyond.” — Ted Goldthorpe, CEO .

Q&A Highlights

No earnings call transcript was available; key clarifications from the press release:

One‑time costs tied to the business combination (transaction costs, accelerated RSU vesting) materially impacted GAAP results; partially offset by the $4.46m acquisition gain and investment gains .
Liquidity program expected to occur via tenders/open‑market/privately negotiated transactions, with initial $15m tender and up to $10m additional repurchases over 24 months; anticipated pricing at or above the $9.43 merger‑implied level, subject to board .
Insurance spread pressures were attributed to lower Treasury/SOFR yields, increased DAC from the NSG MYGA assumption, and higher LTC claims; expense reductions and valuation cost saves were offsets .

Estimates Context

S&P Global consensus for Q3 2025 EPS and revenue was not available via our feed (no estimates returned). As such, no beat/miss analysis vs. consensus can be provided for this quarter (Values retrieved from S&P Global).*

KPIs

KPI	Value/Period
Dividend per share declared	$0.03 for Q3 2025 distribution (payable Dec 11, 2025; record Nov 25, 2025)
Asset Mgmt FRE	$2.523m (Q3 2025); $7.014m (9M 2025)
Insurance SRE	$1.127m (Q3 2025); $1.072m (9M 2025)
Insurance portfolio yield	7.4% (Q3 2025); 7.9% excl. funds‑withheld/Modco
Insurance segment book value	$134.1m as of Sep 30, 2025
Ability assets managed (ex‑funds‑withheld/Modco)	$628.9m as of Sep 30, 2025
Insurance total investment assets	~$1.1bn as of Sep 30, 2025
Insurance liquid assets	$770.4m as of Sep 30, 2025
Total capital (Debt + Equity)	$222.8m at Sep 30, 2025
Interest rate sensitivity (Insurance)	±50 bps ⇒ ±$0.766m impact on net income

Key Takeaways for Investors

Transition quarter mechanics masked core FRE durability: fee earnings remained stable as new profit‑share and cost discipline supported the Asset Management engine despite lower management fees YoY .
Insurance continues to earn attractive portfolio yields, but spreads are pressured by rate declines and higher cost of funds (DAC and LTC); watch for spread normalization as investment mix/funding evolve .
Capital‑return signaling strengthens equity story: first U.S. cash dividend plus a planned premium‑priced liquidity/tender program may help narrow any value gaps post‑listing .
One‑time deal and purchase‑accounting costs are the primary drags on GAAP results; these should abate as integration completes, revealing underlying recurring earnings from AUM growth and insurance spreads .
2026+ thesis centers on scaling AUM, FRE, and SRE; monitor pipeline conversion, BCIC profit‑share scaling, and Ability asset deployment (including Modco) as operating drivers .
Risk watch‑list: rate path (SOFR/Treasury) for spread math, LTC claims variability, DAC amortization tied to MYGA blocks, and continued expense control post‑combination .
Near‑term catalysts: execution of the dividend policy and liquidity program; any updates on integration synergies, AUM wins, or insurance asset allocation shifts .

Additional detail (selected components and expenses)

Expense/Item ($000)	Q3 2024	Q3 2025
Asset Mgmt – Transaction costs	200	3,185
Asset Mgmt – Amortization/impairment of intangibles	482	8,272
Asset Mgmt – Compensation & benefits	1,967	4,161
Insurance – General, administrative & other	4,153	3,338
Insurance – Interest sensitive contract benefits	3,932	4,154
Insurance – DAC amortization	563	929

Document availability note:

Q3 2025 8‑K/press release and 10‑Q were reviewed; no earnings call transcript was found in this set. Prior two quarters’ U.S. SEC earnings materials for consolidated MLCI were not available; Q2 2025 10‑Q relates to Yukon New Parent (no operating activity) – – – –.

Mount Logan Capital Inc. (MLCI)·Q3 2025 Earnings Summary