Mount Logan Capital Q3 2026 Earnings Call Transcript

Mount Logan Capital (NASDAQ:MLCI) reported third-quarter financial results on Friday. The transcript from the company’s third-quarter earnings call has been provided below.

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Summary

Mount Logan Capital reported third-quarter 2026 revenue of $12.9 million and a net loss of $3.7 million, showing improvement from the previous quarter.

The company completed strategic transactions, including the merger of the Alternative Credit Income Fund into BC Partners Lending Corporation, which is expected to enhance revenue streams and reduce costs.

Mount Logan’s insurance subsidiary, Ability, launched direct origination of multi-year guaranteed annuities, marking a key growth area.

BC Partners plans to increase its stake in Mount Logan, highlighting strategic alignment.

Future guidance is positive, with expected benefits from completed transactions and a focus on improving operating cash flow and profitability in 2027.

Full Transcript

Scott Chan (Head of Investor Relations)

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to Mount Logan Capital’s third quarter 2026 results conference call. Before we begin, I would like to remind listeners that today’s discussion will include forward-looking statements. These statements discuss our current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance and business. These statements and other comments are not guarantees of future performance, but rather are subject to risks and uncertainty, some of which are beyond our control.

These forward-looking statements apply as of today and you should not rely on them as representing our views in the future. We undertake no obligation to update these statements after this call. For a description of the risks associated with Mount Logan Capital’s business, please see our most recent filings with the SEC. In addition, we will be referring to certain non-GAAP financial measures during this call. Additional details and reconciliations of GAAP to non-GAAP financial measures are in today’s earnings release. Today’s conference call is hosted by Mount Logan’s Chairman and Chief Executive Officer Ted Goldthorpe, President Henry Wong, Chief Financial Officer Brandon Satoren, Executive Vice President and Chief Operating Officer Jordan Mangum, and Head of Investor Relations Scott Chan.

I will now turn the call over to Mr. Goldthorpe. You may begin.

Edward J. Goldthorpe (Chief Executive Officer)

Thank you, and good afternoon, everyone. At the start of the year we said 2026 would be about execution. We did what we said we would do. Today I want to walk through what we delivered, what has not reached our financials, and why we expect Q4 and 2027 to look different. We expected to announce several transactions by year end. We’ve now announced three and two are complete. On August 25, the Mount Logan Managed Opportunistic Credit Interval Fund, or SOFIX, closed its transaction with YieldStreet. On September 29, we completed a merger of one of our non-core vehicles, the Alternative Credit Income Fund, or ACIF, into a permanent capital vehicle, BC Partners Lending Corporation. That merger provides new, higher-quality revenue on a permanent vehicle and strips out meaningful costs.

The third, the proposed AFA Asset Based Lending Fund, is expected to close in the first quarter of 2027, subject to approvals. It gives us a new core vehicle oriented on specialty finance, an area where we have deep expertise, and a product tailored to that strategy that can actively distribute through retail channels. Alongside these transactions, we reached two significant milestones at Ability, our Nebraska-regulated insurance subsidiary. In July, Ability received its AM Best rating, which enabled the official launch of its direct origination of multi-year guaranteed annuities in August. We’re already beginning to see positive signs of distribution momentum, and we view this as a core component of Mount Logan’s organic growth story. We’re also actively evaluating new adjacent products following these announcements.

On October 27th, we announced that BC Partners, a long-standing shareholder and strategic partner of Mount Logan, has adopted a Rule 10b5-1 and 10b-18 trading plan to buy additional Mount Logan common stock over the next 12 months. BC Partners held approximately 2% as of that date and is actively working to increase its ownership position. We see that as a further expression of the alignment between our two organizations on financial performance.

Q3 was a transition quarter for the business. Each of our completed transactions and the launch of Ability’s direct origination happened during the quarter. As a result, our results carry very little of their expected long-term benefit, and we recognized one-time transaction-related costs upfront. Despite this, the year-to-date segment income—our non-GAAP measure that combines fee-related earnings, or FRE, and spread-related earnings, or SRE—was $11.5 million, up from $9.5 million for the same period last year.

Our net loss also continued to improve quarter over quarter, and we expect next quarter’s results to converge more closely with the true earnings power of our business. Our board also approved our 29th consecutive quarterly dividend of $0.03 per share. Future dividends remain at the Board’s discretion, but returning a portion of our cash fees to shareholders remains important to us. With our 2026 strategic priorities complete, and while we continue to evaluate prudent opportunities for growth, our focus is squarely on improving operating cash flow and GAAP profitability. Let me step back to the broader private credit and alternative asset management market and why we are seeing it as an opening for a platform like ours. Across private credit this quarter, the message has been clear: transaction activity has been even. Outcomes are diverging between managers, with institutions concentrating capital with fewer platforms that have proven underwriting across differentiated credit strategies.

We believe we have built that, and while alternative asset managers have faced challenges year to date, redemption requests at the largest semi-liquid funds are easing. Flows are recovering. Mount Logan benefits from a sticky, stable capital base that allows disciplined deployment and lets us hold the line on both risk and returns. We don’t have to do big deals that dilute returns, and we can remain diligence-heavy credit investors. The industry is also consolidating. An Ares agreement in late October to acquire MidCap Financial is the latest example. These transactions reinforce the value of permanent capital vehicles. Investors benefit from scale and diversification, and managers earn recurring fees on a durable capital base. For Mount Logan, consolidation is an opening to continue to grow subscale funds through YieldStreet, ACIF, and now AFA. We’ve shown that we can bring them into our ecosystem to the benefit of those funds, their investors, and our shareholders.

Let me add detail on each, starting with YieldStreet. SOFIX acquired approximately $130 million of assets, effectively doubling the fund. On the larger base, we now expect the transaction to contribute more than $3 million of annualized FRE, up from $2.8 million we cited on our August call. We also have added internal retail sales resources and a third-party distribution partner to drive organic growth. On ACIF, the merger removes the cost of a standalone fund and, together with a revenue sharing agreement with BC on BCPL, is expected to add approximately $3.5 million of annualized net FRE, with benefits beginning in the fourth quarter.

Both transactions are immediately accretive to FRE and earnings per share. Together, we expect them to add approximately $6.5 million of annualized FRE, with its first meaningful contribution in Q4. That is a significant step-up in our asset management earnings base and one we do not believe the market has yet credited. With respect to the recently announced AFA transaction, it adds approximately $230 million of AUM and would double our interval fund platform to about $460 million of assets, making our second evergreen credit fund distributed through the retail channel. We expect it to be immediately accretive to FRE on closing. Acquire, consolidate, distribute. We believe that’s a repeatable model.

At Ability, the goal was to move beyond managing a closed block and originate new business directly rather than relying on third-party insurers. With the AM Best rating in place and direct origination launched, we are now active in the marketplace. We are early in the production ramp and expect the benefit to build as we enter 2027. Looking ahead to 2027, there are four things to watch: step-up in FRE from this year’s completed transactions, progress in retail distribution, Ability’s production ramp, and cost control. We are reviewing corporate overhead, professional expenses, and fund-level infrastructure to improve operating leverage. Each of those ties back to the three pillars of our growth story, which is this year’s execution and simplification have strengthened: first, Ability, where direct origination and a more diversified liability base expand investable assets, generate spread earnings in Ability, and management fees at Mount Logan Management.

That is the flywheel we always talk about. Second, our core investment platforms, including SOFIX, where we combine organic fundraising through expanded distribution with selective acquisitions of fund assets. Third, our BDC ecosystem, where we hold economic interests and cash fees from BCC Investment Corporation, BCPL, and where consolidation creates more efficient, scaled vehicles and stronger fee economics. The common thread is that we use the capabilities and infrastructure we’ve already built to attract durable capital and improve operating leverage.

With that, I will turn the call over to Brandon to walk through the results.

Brandon Satoren (Chief Financial Officer)

Thanks, Ted. Good afternoon, everyone. For the third quarter of 2026, the company reported total revenue of $12.9 million and a net loss of $3.7 million. This compares to total revenue of $8.7 million and a net loss of $4.2 million for the prior quarter. The sequential improvements in both consolidated total revenue as well as the company’s net loss were largely due to consolidated revenues from our Insurance Solutions business, partially offset by certain non-recurring transaction-related items that impacted our Asset Management business.

For our segments, Insurance Solutions GAAP net income increased to $4.2 million, more than doubling from $1.9 million in the second quarter. The increase was largely driven by the non-recurring $1.9 million Sentinel Security Life, or SSL, reinsurance recapture fee, which I will discuss later. On the other hand, our Asset Management business generated a net loss of $7.9 million for the quarter, which represents a $1.8 million increase compared to the prior-quarter net loss generated by our Asset Management business of $6.1 million.

Importantly, the third-quarter results were impacted by a number of non-recurring transaction-related items, including almost $1.0 million of transaction-related charges as a result of the YieldStreet transaction and merger of the Alternative Credit Income Fund into a private BDC. Before I move on to our segment results and KPIs, it’s important to note that segment income and its components for prior periods have been recast for the revised definitions, which I will describe shortly. With that in mind, total segment income was $3.2 million for the third quarter of 2026, compared to $4.5 million in the prior quarter, or $4.3 million as originally reported under the legacy definitions. The $1.3 million decline in segment income was primarily attributable to lower FRE.

Looking at our GAAP individual segment results, Asset Management revenue for the third quarter of 2026 was $2.0 million compared to $2.3 million in 2Q26. The decline was due to the absence of incentive fees from our interval funds in the third quarter, largely driven by SOFIX closing the YieldStreet acquisition late in the quarter, which had a one-time impact to the quarterly incentive fee, as well as elevated expenses. Importantly, while the company has reported declining FRE throughout 2026, driven by the wind-down of non-core legacy vehicles including the Ovation Alternative Income Fund, our Mount Logan–managed CLOs, and the Alternative Credit Income Fund, we are beginning to replace these legacy revenues from non-core vehicles with newer, more scalable and recurring revenue streams, as well as by growing our core revenue streams. We expect to begin to see these benefits flow through our financials during the fourth quarter and grow from there.

More specifically, benefits to Q4 FRE are expected to include the addition of approximately $130 million of assets in SOFIX from its merger with the YieldStreet Alternative Income Fund, which closed at the end of the third quarter, almost offset by the merger of the non-core Alternative Credit Income Fund into a private BDC managed by the BC Partners Credit platform, which will drive significant cost savings in addition to incremental fee revenue from a 30% revenue share that we will receive from BCPL’s management and incentive fees.

Finally, the recently announced potential AFA transaction is expected to close in the first quarter of 2027, subject to shareholder approval, and is expected to increase AUM by approximately $230 million. Collectively, the two closed transactions are expected to add approximately $6.5 million in annualized FRE. Turning to our Insurance Solutions business, net investment income, including net investment income from our consolidated variable interest entities (VIEs), was $20.6 million for the third quarter of 2026, an increase of $2.1 million, or 11%, from the second quarter of 2026. Excluding funds withheld and including intercompany elimination of management fees, net investment income for the third quarter of 2026 was $14.2 million, an increase of $1.2 million, or 9%, compared to 2Q26.

During the quarter, we continued to focus on optimizing and high-grading the insurance portfolio through disciplined portfolio rotation and deployment while maintaining a high level of invested assets to support spread earnings. The investment portfolio generated a 7.3% yield, or 7.8% excluding funds withheld, and our insurance AUM was approximately $900 million, a decrease of approximately $60 million from the third quarter of 2025. This decline reflects the SSL recapture transaction I mentioned earlier, where management agreed to allow SSL to recapture a $70 million block of MYGA liabilities and supporting assets that had previously been reinsured to Ability, in exchange for an upfront recapture fee of $1.9 million. This transaction is important to the segment as it allows the company to unlock additional capital that can be used to support direct origination as well as other strategic initiatives within the Insurance Solutions segment.

Over time, direct origination has the potential to meaningfully increase the earnings power of our Insurance Solutions business while also supporting growth in Asset Management fees as the investment portfolio expands. Looking at our segment KPIs, I want to first explain two changes to how we calculate our non-GAAP segment metrics that were implemented during the third quarter of 2026. First, on the FRE side, we are now including our share of operating income from our minority interest in certain asset managers that are owned or managed by the BC Partners Credit platform. This change was made to align the economics of these investments with management’s strategic intent and thesis for making such investments.

Second, spread-related earnings, or SRE, will now exclude net realized gains and losses on the sale of investments. Previously realized gains and losses were included in SRE. We believe removing realized gains and losses better reflects the operating performance of our insurance company as a spread-based business, in addition to conforming with our peers. Both changes have been applied to all periods presented in yesterday’s press release, and prior period amounts have been recast to conform to the current presentation.

Notably, neither of these changes impacts the company’s consolidated U.S. GAAP financial statements. Accordingly, FRE was $0.5 million for the third quarter of 2026 compared to $1.5 million in the second quarter of 2026. As I alluded to earlier, this decline was largely driven by approximately $0.6 million of lower fee revenue and $0.4 million of higher compensation, administrative, and general expenses. More specifically, FRE was impacted by two key items. First, we did not earn a SOFIX incentive fee in the third quarter, compared with $0.4 million in the second quarter.

This was driven by a timing dynamic associated with SOFIX closing its acquisition of the YieldStreet portfolio at the end of the quarter and nuances associated with its incentive calculation, which we do not expect to reoccur. Second, BCIC profit-sharing income was approximately $0.3 million lower because of certain non-recurring second-quarter payments that did not repeat. As I mentioned earlier, we expect FRE to improve starting in the fourth quarter as the strategic initiatives we discussed today begin to contribute a full quarter’s impact.

Moving on to SRE for the third quarter of 2026, our Insurance Solutions business generated $2.7 million of spread-related earnings for the third quarter of 2026 compared to $3.0 million for the second quarter of 2026. The slight decline was primarily due to lower, but still favorable, development in future policy benefit reserves, partially offset by higher net investment income and lower general and administrative expenses as well as improved long-term care results.

On a year-over-year basis, SRE was up 81%, reflecting the benefit from the actions we have taken to lower financing costs and improve the underlying economics of the insurance platform. Moving on to our balance sheet, Mount Logan’s capital position remains strong with $79.6 million of cash, restricted cash, and cash equivalents, including VIEs, with minimal near-term debt maturities. Finally, as Ted mentioned earlier, the Board approved a dividend of $0.03 per share for the quarter, continuing our 29th consecutive quarterly dividend and our fourth consecutive payment since the 2025 business combination with 180 Degree Capital.

Looking ahead, our priorities remain focused on prudent and disciplined expense management, driving operational excellence, continued growth in recurring fee-related earnings, and increasing the contribution from Insurance Solutions. Several of the initiatives Ted discussed are just beginning to, or haven’t yet, started flowing through our financials. As we continue to execute against our growth strategy, grow our fee-earning AUM, and continue to scale our new and core revenue streams, we expect their impact to become more visible in the fourth quarter of 2026 and into 2027.

With that, I will turn the call back over to Ted.

Edward J. Goldthorpe (Chief Executive Officer)

Thank you, Brandon. To wrap up, Mount Logan has an established investing track record going back to 2018, diverse credit capabilities, cash fees generated on permanent and semi-permanent capital vehicles, and an AM Best–rated insurance business that is organically sourcing new liabilities, an experienced management team with proven ability to source and close complex M&A transactions, and the support and services of BC Partners. We set out this year to grow fee-earning assets within our core vehicles, launch direct origination at our insurance company, and simplify the Mount Logan platform and story.

We’ve done each of those and look forward to the stock price and valuation catching up with the work we have completed. This concludes our prepared remarks. Operator, if you could please open the call for questions.

OPERATOR

Thank you, and we will now begin our question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. You will be advised when to ask your question. Again, that would be star one on your telephone keypad. And the first question comes from the line of Mr. Justin Marco with Lucid Capital Markets. Please go ahead.

Justin Marco (Analyst at Lucid Capital Markets)

Hey, guys, so just want to start with insurance. You touched on liability with your prepared remarks and expanding distribution channels. Wonder if you can give any color on progress there and how long it might take to see some benefit to SRE, and also what additional product verticals you guys are evaluating.

Edward J. Goldthorpe (Chief Executive Officer)

Yeah, great question. So obviously we recapitalized our— We put some of the money from our 180 Capital transaction into our insurance company to strengthen its capital. We’ve started direct writing this summer and we’re beginning to see it ramp. And so it allows us to kind of control our own destiny a little bit and write policies in line with our investment deployment. So really it’s de minimis impact on SRE this quarter and probably for the fourth quarter, and we expect to see the benefit come through next year.

So there’s a lot of work being done in terms of education of agents, and, you know, we operate in many, many states. We sold our biggest policy ever quite recently. So from our perspective it’s something we’re very, very excited about.

Justin Marco (Analyst at Lucid Capital Markets)

Okay. And then switching over to asset management, you know, we’ve heard recently from other equipment finance and ABL lenders that they’re seeing a lot of growing demand in that space versus, you know, traditional sponsor-backed loans. And obviously the AFA transaction will add some diversification to your credit portfolio. Was that, you know, some of the primary drivers behind the decision to pursue the AFA transaction?

Edward J. Goldthorpe (Chief Executive Officer)

Yeah, no, definitely. So a third of our assets now are in specialty finance. So if you think about the evolution of private credit, it started off as being middle market lending and now it’s large-cap corporate lending. We began to take market share from the regional banks after Silicon Valley Bank failed. You’ve had higher rates. A lot of people are lending money at fixed returns and compliance costs have gone up and credit quality has weakened for certain parts of the consumer.

So it’s created a big opportunity for us to step in. We’ve been doing this business for a very long time. AFA gives us a—these loans that we do are typically illiquid. So you need to match it with your liabilities. And AFA provides us with an ability to kind of directly originate things into AFA which are really good return in this market. So it’s an area that we’ve spent with real expertise and this acquisition gives us capabilities to execute on that.

Scott Chan (Head of Investor Relations)

Yeah, Justin, I would just add that with our commitment to the retail business, it’s important for our salespeople to have more than one product to sell to increase their hit rate for each meeting with an RIA that they have. And now they’ll have a second product to complement the opportunistic credit interval fund with a completely different strategy, but specialty finance also being a core strategy that our platform has generated differentiated performance.

Justin Marco (Analyst at Lucid Capital Markets)

Got it, thanks. It’s good color there. And then maybe just last one for me, switching over to capital deployment between share repurchases and additional M&A. You guys have closed the discount to book since 2Q a bit, but still an opportunity for buying back the stock. Curious on your thoughts there.

Edward J. Goldthorpe (Chief Executive Officer)

Yeah, I mean we’ve given this a lot of thought and we’ve a lot of good uses of our organic cash. The flip side is we should be buying stock. So obviously we announced that we are going to be buying stock and we’re trying to buy as much as we can and pro forma for that we’ll be close to 30% insider ownership. So we’re trying to basically clean up our capital structure a little bit and upon the advice of a lot of our shareholders, we just thought that was the right way to go.

So hopefully we’re just going to keep buying our stock till the discount closes even more.

Justin Marco (Analyst at Lucid Capital Markets)

All right, great. That’s all for me today. Thanks guys.

OPERATOR

And the next question comes from the line of Mr. George Chopkov with BMO. Please go ahead.

George Chopkov (Analyst at BMO)

Good afternoon, guys. Thanks for taking time to my questions. First, you made some revisions on how you report the SRE and FRE portion share of operating income and then realized gains. Can you talk a little bit about what drove the change? Why is the current reporting better reflective of the underlying business?

Edward J. Goldthorpe (Chief Executive Officer)

Yeah, I’m going to let Brandon answer this question, but I would say the real objective is over the last couple years we’ve really tried to clean up the way we report to investors to give you guys a little bit more consistent view and more clear view of how the operating business is doing. But why don’t I turn it over to Brandon to answer that question?

Brandon Satoren (Chief Financial Officer)

Yeah, so I’ll start with SRE. That was the bigger change, certainly more impactful to the financials. So first and foremost, the change aligns with the industry and all of our peers. Secondly, the economics of the insurance business are spread-based, hence the name, and including elements of return outside of spread can distort the metric and drive significant volatility period to period that don’t reflect the core operations of the underlying business.

So that’s SRE. So on FRE, we are a highly acquisitive platform. And when we go out and we acquire a minority interest in an asset manager that is also controlled by the BC Partners credit platform, the thesis for those transactions is to drive fee-related earnings from Outlook and Capital through its asset management business. So that change, while a small impact today to FRE—frankly was negligible in Q3—better aligns with the thesis for those transactions and we will certainly look to do them as opportunities arise.

Does that answer your question?

George Chopkov (Analyst at BMO)

Yes. Yes. Now I’m going to follow up on the FRE. I’m just looking quarter-over-quarter drop in earnings probably below expectations. How should investors think about what’s the run rate in that division? You’re running about, you know, you had a half a million dollars, I know there were one-offs, but what’s a real run rate? How does it look in 2027?

Brandon Satoren (Chief Financial Officer)

Yeah. So if you just take the $4.5 million of FRE generated year to date and you layer in the $6.5 million annualized benefit to FRE we mentioned in our scripted remarks, that generates well in excess of $10 million of FRE for 2027. And that does not include the impact of the potential AFA transaction.

George Chopkov (Analyst at BMO)

On the direct underwriting, what’s the ramp up looking like? What’s the potential impact in terms of savings and where do you see this going in the next couple of years?

Brandon Satoren (Chief Financial Officer)

Well, I would say we’ll look to continue to scale this component of our business. It’s incredibly strategic. Now we have the capability to organically grow it for Mount Logan Capital. Now I’ll say in terms of progress ramping that initiative, it’s going to take a couple quarters for us to onboard agents through our distribution partner and get Ability’s product out there. But to date we’ve got over 70 agents on board now actively selling our reliability products under the Ability Insurance Company today.

So we’re only focused on MYGA at the moment, but we are exploring other products that we are optimistic will bring to the market in 2027.

George Chopkov (Analyst at BMO)

Sorry, if I could sneak one more in—on the private credit side, do you see opportunity to pick up portfolios and how do you see this business shaping up over the next few quarters?

Edward J. Goldthorpe (Chief Executive Officer)

Yeah, I mean I think all the headwinds that were experienced by our sector earlier this year—every time something like that happens, there tends to be an increase in consolidation. I mean, size matters. So we right now have a number of transactions under LOI that we expect to announce, and obviously there was a big announcement this week in the BDC space of a merger. So I would say I think you’re going to see continued consolidation and we could do that in a very, very accretive way for our shareholders.

No. This wouldn’t require any issuance of Mount Logan stock. A lot of this is us merging our existing vehicles with others and it’s very accretive from a fee perspective.

George Chopkov (Analyst at BMO)

So if you look at the return on invested capital on this business now versus transactions a year ago, what do you see in terms of transaction accretion compared to a year ago? How does it look?

Edward J. Goldthorpe (Chief Executive Officer)

Oh, very favorable. I mean you can’t just go buy companies, but the market for asset managers got a little bit frothy—some things trading as high as like 35 times forward adjusted FRE. I would say at the small end it’s just a different valuation. So, like, we’re working on one right now where we would not have to put up any capital. But generally speaking, we could buy these things for anywhere from three to five times FRE. And obviously that should be accretive for our shareholders.

George Chopkov (Analyst at BMO)

Awesome. Thank you very much.

OPERATOR

And there are currently no questions in the queue. Please be reminded if you would like to ask a question, please press the star 1 on your telephone keypad. And the next question comes from the line of Chuck Burns with CIBC. Please go ahead with your question.

Chuck Burns (Analyst at CIBC)

Good afternoon, Ted. Definitely, I definitely see progress happening. Just had a couple questions. There were three strategic transactions in 2026, with the most recent one closing in the first quarter of next year. Are you seeing the pace similar for the upcoming year or is it increasing or decreasing?

Edward J. Goldthorpe (Chief Executive Officer)

Hey, Chuck. Yeah, I mean we have a lot of visibility into it because it typically takes nine months from start to close on these deals. And so going into next year we have a big pipeline of things that we’re very excited about. And some of them will be announced in the fourth quarter and some will be announced early next year. But our pipeline for acquisitions is good and that will give us incremental scale and incremental cash flow. So you can see that Brandon was talking about earlier.

I mean just these deals we did alone, those two deals add $6.5 million of cash flow to a company that’s got sub-$40 million market cap. I mean it’s very, very powerful. So we expect to keep doing this over the course of next year and you’ll see it flow through the numbers.

Chuck Burns (Analyst at CIBC)

And it won’t be through share issuance as you said before, correct?

Edward J. Goldthorpe (Chief Executive Officer)

No, it’ll be mostly financed with our existing vehicles. So we don’t need to use material amounts of Mount Logan stock.

Chuck Burns (Analyst at CIBC)

Okay, thank you. And second question is the share purchase program recently announced by BC Partners, as you mentioned during your opening remarks. Why now versus later? And how are they proceeding to purchase those shares?

Edward J. Goldthorpe (Chief Executive Officer)

Yep. So, I mean, I think the plan right now is to buy in the open market. Because we’re so acquisitive, we constantly are fighting with blackout periods. And to the extent we can’t buy material amounts of stock through the market, you know, we might consider other options like tenders and other things, which you’ve seen us do in the past. But for the time being, I think the plan is just buy in the market. It’ll create more liquidity, there’ll be a bid in the market oftentimes, and try and, you know, buy as much stock as we can.

Chuck Burns (Analyst at CIBC)

Given the trading, is there a limited amount they can buy on any specific day, or there’s no limitation that way?

Edward J. Goldthorpe (Chief Executive Officer)

Yeah, I mean, we’re really boxed in by some exchange rules. Like, you know, we can only buy certain times of the day. We can only be a certain percentage of volume. There’s a bunch of restrictions that are put around us which, you know, makes it—like, a lot of people think we can just go buy as much as we can. It’s not that easy to do it.

Brandon Satoren (Chief Financial Officer)

Yeah, the 10b5 and the 10b-18 rules are designed to ensure that we’re not moving the market. Again, as Ted alluded to, though, the importance here, particularly for a thinly traded stock like MLC, is a constant bid in the market to support healthy trading levels and minimize unnecessary volatility.

Chuck Burns (Analyst at CIBC)

Okay. And one final question on that. You’ve indicated YieldStreet and ACF transactions began to generate incremental—your confidence in achieving this over what time period?

Edward J. Goldthorpe (Chief Executive Officer)

We’re very, very confident. And you’ll see it as early as the fourth quarter because, remember, we did close some of these deals that you didn’t really see the benefit of in the quarter. So you’ll really see it come through as early as the fourth quarter, but really see it next year. And those numbers are relatively locked in.

Chuck Burns (Analyst at CIBC)

Okay, I forgot one other question regarding the dividend, which has been very steady through the years. Do you see potential for that dividend to increase over the next year or two?

Edward J. Goldthorpe (Chief Executive Officer)

I mean, it’s something we always discuss. I mean, I would say we think we pay a pretty competitive dividend yield now and we’ve lots of uses for the cash. So I think our focus would be on using the cash to buy back stock versus raise the dividend. But it’s something we’re open to.

Chuck Burns (Analyst at CIBC)

Okay, thanks very much.

Edward J. Goldthorpe (Chief Executive Officer)

Thanks, Chuck.

OPERATOR

And there are no further questions at this time. I would like to hand it back to your host to conclude today’s conference.

Edward J. Goldthorpe (Chief Executive Officer)

Thank you for all the time today. As always, please feel free to reach out to us with any questions. We’re always happy to discuss. We look forward to speaking with you all again when we announce our fourth quarter and full year 2026 results in the new year. Thank you so much and have a good weekend.

OPERATOR

Thank you. Ladies and gentlemen, this concludes today’s conference call. Thank you all for joining. You may now disconnect.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.