Mount Logan Capital Inc. Announces First Quarter 2026 Financial Results (Form 8-K)

Mount Logan Capital Inc. Announces First Quarter 2026 Financial Results

FRE1 of $1.2 million and SRE1 of $2.0 million for the first quarter of 2026, resulting in Segment Income of $3.3 million1 representing a 41% increase, or $1.2 million, as compared to prior year. As compared to fourth quarter 2025, Segment Income increased by $2.9 million

Strong quarter for Insurance Solutions with SRE of $2.0 million, up $2.0 million year-over-year, and $3.1 million as compared to fourth quarter 2025

Asset Management FRE declined to $1.2 million, but earnings quality improved significantly. FRE down $1.0 million year-over-year, and down $0.3 million as compared to fourth quarter 2025

During the first quarter, Mount Logan-managed Opportunistic Credit Interval Fund (SOFIX) entered an agreement to acquire $100+ million of assets for Yieldstreet Alternative Income Fund. Currently estimated to close during the third quarter of 2026

Added $120 million of managed assets from an existing relationship effective March 2026, expected to increase FRE by approximately $0.5 million in 2026 and in excess of $1.0 million in 2027

Declared quarterly distribution of $0.03 per common share in the second quarter of 2026, the third consecutive shareholder distribution for Mount Logan as a US registrant

Mount Logan to host an earnings conference call and webcast on Friday, May 15, 2026, at 1:00 PM ET

NEW YORK, May 14, 2026 - Mount Logan Capital Inc. (Nasdaq: MLCI) ("Mount Logan" or the "Company") announced today its financial results for the first quarter ended March 31, 2026.

Management Commentary

•Ted Goldthorpe, Chief Executive Officer and Chairman of Mount Logan stated, "The first quarter of 2026 reflected the successful execution against our near-term strategic priorities, as we continued to invest across our platform, strengthen our leadership team, acquire and expand core recurring revenue streams, and improve profitability. During the quarter, we saw Spread Related Earnings return to a positive contributor to segment income, while our Fee Related Earnings quality increased significantly as compared to prior quarter. Collectively, Mount Logan's first quarter demonstrates the depth and dynamism of our team and platform, as well as our ability to simultaneously

1 FRE, SRE and Segment Income are a non-GAAP financial measures that the Company believes provides valuable perspective on its business results. With respect to FRE, SRE and Segment Income for completed periods, refer to tables elsewhere in this press release for a reconciliation to the comparable GAAP measure.

pursue growth, optimize our capital structure, and return capital to shareholders. We believe Mount Logan is well positioned to capture improved operating leverage, higher profitability, and long-term shareholder value as these initiatives take full effect over the balance of 2026."

First Quarter Highlights2

•Total revenue for the Asset Management segment was $2.5 million for the quarter, a decrease of $1.4 million, or 36% compared to the first quarter of 2025, primarily driven by non-recurring items including the termination of the Logan Ridge investment management agreement in July 20253 and one-time out of period SOFIX management fee reimbursements recorded in the first quarter of 2025. Asset Management revenues exclude $1.8 million of intercompany management fees earned from managing the assets of Ability Insurance Company ("Ability"), which increased $0.7 million, or approximately 7%, from $1.2 million in 2025. Following the merger of Logan Ridge into Portman Ridge, Mount Logan introduced a new recurring revenue stream through a profit-sharing agreement with the majority owner of Sierra Crest Investment Management3.

•Fee-Related Earnings ("FRE") for the Asset Management segment were $1.2 million for the first quarter of 2026, down $1.0 million compared to $2.3 million for the first quarter of 2025. This decrease primarily reflects the decrease in management fees discussed above.

•Total net investment income for the Insurance Solutions segment including net investment income of consolidated variable interest entities ("VIEs") was $20.2 million for the first quarter of 2026, an increase of $1.4 million, or 7%, compared to first quarter of 2025. Excluding the funds withheld assets under reinsurance contracts and modified coinsurance ("Modco") arrangements, the Insurance Solutions segment's net investment income was $14.6 million, an increase of $0.3 million, or 2%, compared to the first quarter of 2025.

•Achieved 6.8%4 yield on the insurance investment portfolio for the first quarter of 2026. Excluding the funds withheld under reinsurance contracts and modified coinsurance, the yield was 7.5%.

•Spread-Related Earnings ("SRE") for the Insurance Solutions segment was $2.0 million for the first quarter of 2026, compared to less than $0.1 million for the first quarter of 2025.

•Ability's total assets managed by Mount Logan excluding the funds withheld assets under reinsurance contracts and Modco, were $699.4 million as of March 31, 2026, an increase of $105.7 million from the first quarter of 2025. As of March 31, 2026, the Insurance Solutions segment held approximately $1.1 billion of total investment assets, an increase of $86.5 million from the first quarter of 2025. Including Modco assets, Mount Logan managed total assets of $891.2 million as of March 31, 2026, an increase of $249.0 million compared to first quarter of 2025.

•Book value of the insurance segment as of March 31, 2026 was $120.1 million, a decrease of $2.0 million, compared to $122.1 million as of December 31, 2025.

2 As discussed in Note 1 and Note 3 to our condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, on September 12, 2025, we completed a business combination with 180 Degree Capital Corp. (the "Business Combination"). Therefore, our consolidated financial results present the historical results of Mount Logan Capital Intermediate LLC (f/k/a Mount Logan Capital Inc) prior to September 12, 2025, and those of the combined company on and subsequent to that date.

3 Sierra Crest Investment Management ("SCIM") is the manager of BCP Investment Corporation ("BCIC"). SCIM previously served as the manager of Portman Ridge Finance Corporation, which during the third quarter of 2025 merged with Logan Ridge Finance Corporation and was renamed BCIC. Mount Logan owns a 24.99% stake in SCIM through a subsidiary.

4 The yield is calculated based on the net investment income less management fees paid to Mount Logan divided by the average of investments in financial assets for the current period and prior period.

Strategic Developments

During the first quarter of 2026, the Company completed the following strategic initiatives:

•Completed Opportunistic Debt Re-financing: On January 26, 2026, Mount Logan completed a $40.0 million in aggregate principal amount senior unsecured notes offering where funds were used to partially repay outstanding indebtedness on the Company's credit facility, with remaining funds available for general corporate purposes.

•Closed Tender Offer: On February 6, 2026, Mount Logan closed a $15.0 million tender offer to purchase approximately 12% of the Company's common stock issued and outstanding as of February 2, 2026.

•Announced New Share Repurchase Program: On February 23, 2026, Mount Logan announced that its Board of Directors authorized a $10.0 million share repurchase program through December 31, 2027, where repurchases may be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions, or by other means in accordance with applicable securities laws and subject to market conditions and other factors.

Yieldstreet Managed-Fund Transaction

•As previously announced, Mount Logan-managed Opportunistic Credit Interval Fund ("SOFIX") signed a definitive agreement to acquire $100+ million of assets from Yieldstreet Alternative Income Fund Inc. ("YS AIF") during the first quarter of 2026.

•Mount Logan currently estimates, on a full-year basis, the transaction will increase FRE by $2.8 million5 or more.

•Mount Logan's total cost inclusive of its definitive transition services agreement with YS AIF's advisor is expected to make the transaction immediately accretive to Mount Logan.

•YS AIF and SOFIX investors gain access to a larger investment vehicle with greater scale, economic efficiency and increased portfolio diversification.

•Transaction currently expected to close by third quarter 2026, subject to regulatory and YS AIF shareholder approvals.

Subsequent Events

•Declared a stockholder quarterly distribution in the amount of $0.03 per share of common stock for the quarter ended March 31, 2026, payable on June 10, 2026 to stockholders of record at the close of business on May 26, 2026. This cash dividend marks the third consecutive quarter of the Company issuing a $0.03 distribution to its stockholders following the closing of the Business Combination.

5 Estimated FRE contribution from acquired assets based on current management and incentive fee structure of SOFIX with $100 million in additional assets. Actual contribution of the incentive fee portion of this amount is dependent on performance and actual results may differ materially from these projections. See "Estimates and Assumptions" for additional information.

Selected Financial Highlights

•Total capital of the Company was $177.2 million at March 31, 2026, a decrease of $8.1 million as compared to December 31, 2025. Total capital consists of debt obligations and total shareholders' equity.

•Consolidated net loss before taxes was $6.0 million for the first quarter of 2026, compared with a loss of $6.7 million for the first quarter of 2025. Net loss position improved as expenses declined.

•Consolidated basic loss per share ("EPS") was $0.51 for the first quarter of 2026, compared to $1.02 for the first quarter of 2025.

Conference Call and Webcast Details

Mount Logan will hold a conference call to discuss its quarterly results on Friday, May 15, 2026 at 1:00 p.m. ET. Participants may access the conference call via webcast using this Webcast Link. To participate via telephone, please register in advance using this Registration Link. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial in 10 minutes prior to the start time. A replay of the conference call and webcast will be available on-demand via the Company's investor relations webpage at

https://ir.mountlogan.com/ for 12 months.

Results of Operations by Segment

						Three months ended March 31,
						2026						2025						Change ($)						Change (%)
REVENUES
Asset Management
Management fees						$	1,639					$	3,240					$	(1,601)					-49		%
Incentive fees						394						299						95						32		%
Advisory and transaction fees, net						66						-						66						NM
Equity investment earning						362						282						80						28		%
						2,461						3,821						(1,360)						-36		%
Insurance Solutions
Net Premiums						(4,244)						(4,013)						(231)						6		%
Product charges						118						860						(742)						-86		%
Net investment income						16,676						14,951						1,725						12		%
Net gains (losses) from investment activities						(5,014)						1,472						(6,486)						-441		%
Net revenues of consolidated variable interest entities						(133)						3,633						(3,766)						-104		%
Net investment income (loss) on funds withheld						614						(5,750)						6,364						-111		%
Other income						169						76						93						122		%
						8,186						11,229						(3,043)						-27		%
Total revenues						$	10,647					$	15,050					$	(4,403)					-29		%
EXPENSES
Asset Management
Administration and servicing fees						3,639						1,237						2,402						194		%
Transaction costs						82						4,545						(4,463)						-98		%
Compensation and benefits						211						2,380						(2,169)						-91		%
Amortization and impairment of intangible assets						444						910						(466)						-51		%
Interest and other credit facility expenses						2,005						1,946						59						3		%
General, administrative and other						3,008						1,723						1,285						75		%
						9,389						12,741						(3,352)						-26		%
Insurance Solutions
Net policy benefit and claims (remeasurement gain on policy liabilities of $4,459 and $81 for the three months ended March 31, 2026 and 2025, respectively)						(2,635)						1,793						(4,428)						-247		%
Interest sensitive contract benefits						4,289						3,818						471						12		%
Amortization of deferred acquisition costs						708						555						153						28		%
Compensation and benefits						-						244						(244)						-100		%
Interest expense						400						328						72						22		%
General, administrative and other (including related party amounts of $1,672 and $1,732 for the three months ended March 31, 2026 and 2025, respectively)						4,261						3,686						575						16		%
						7,023						10,424						(3,401)						-33		%
Total expenses						$	16,412					$	23,165					$	(6,753)					-29		%
Investment and other income (Loss) - Asset Management
Net gains (losses) from investment activities						(351)						841						(1,192)						-142		%
Dividend income						60						38						22						58		%
Interest income						384						268						116						43		%
Other income (loss), net						174						299						(125)						-42		%
Loss on extinguishment of debt						(472)						-						(472)						NM
Total investment and other income (loss)						(205)						1,446						(1,651)						-114		%
Income (loss) before taxes						$	(5,970)					$	(6,669)					$	699					-10		%
Income tax (expense) benefit - Asset Management						-						(36)						36						-100		%
Net income (loss)						$	(5,970)					$	(6,705)					$	735					-11		%

Note: "NM" denotes not meaningful.

Non-GAAP Financial Measures

In this release, the Company includes FRE and SRE, which are non-GAAP performance measures that the Company uses to supplement its results presented in accordance with U.S. generally accepted accounting principles ("GAAP"). As required by the rules of the Securities and Exchange Commission ("SEC"), the Company has provided herein a reconciliation of the non-GAAP financial measures contained in this press release to the most directly comparable measures under GAAP. The Company's management believes FRE and SRE are useful in evaluating its operating performance and by providing these non-GAAP measures, the Company's management intends to provide investors, securities analysts and other interested parties with a meaningful, consistent comparison of the Company's profitability for the periods presented. These non-GAAP measures are not intended to be a substitute for GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.

Asset Management

Fee Related Earnings

FRE is a non-GAAP financial measure used to assess the asset management segment's generation of profits from revenues that are measured and received on a recurring basis and are not dependent on future realization events. The Company calculates FRE as follows:

($ in Thousands)

						Three months ended March 31,
						2026						2025						Change ($)						Change (%)
Asset Management
Management fees						$	3,457					$	4,407					$	(950)					(22)		%
Incentive fees						394						299						95						32		%
Advisory and transaction fees, net						66						-						66						NM
Equity investment earnings						362						282						80						28		%
Interest income¹						268						268						-						-		%
Other fee-related income						174						-						174						NM
Fee-related compensation						(1,212)						(1,471)						259						(18)		%
Other operating expenses:
Administration and servicing fees						(1,359)						(733)						(626)						85		%
General, administrative and other						(914)						(772)						(142)						18		%
Fee related earnings						$	1,236					$	2,280					$	(1,044)					(46)		%

Note: "NM" denotes not meaningful.

(1)Represents interest income on a loan asset related to a fee generating vehicle

Insurance

Spread Related Earnings

Mount Logan uses SRE to assess the performance of the Insurance Solutions segment. SRE is a component of Segment Income that is used to assess the performance of the Insurance Solutions segment, excluding certain market volatility, which consists of investment gains (losses), other income and certain general, administrative & other expenses. For the Insurance Solutions segment, SRE equals the sum of (i) the net investment earnings on Insurance Solutions segment's net invested assets (excluding investment earnings on funds held under reinsurance contracts and modified coinsurance agreement), less (ii) cost of funds (as described below), (iii) compensation and benefits, (iv) interest expense and (v) operating expenses.

Cost of funds includes liability costs associated with the crediting cost on multi-year guaranteed annuity products ("MYGA") liabilities as well as other liability costs. Other liability costs include deferred acquisition cost ("DAC") amortization, the cost of liabilities associated with LTC, net of reinsurance, which includes change in reserves, premiums, actual claim experience including related expenses and certain product charges related to MYGA.

The Company reconciles SRE to net income (loss) before tax from its insurance segment activities, as follows:

($ in Thousands)

						Three months ended March 31,
						2026						2025						Change ($)						Change (%)
Insurance Solutions
Net investment income and realized gain (loss), net						$	12,251					$	13,013					$	(762)					(6)		%
Cost of funds						(6,488)						(9,319)						2,831						(30)		%
Compensation and benefits						-						(244)						244						(100)		%
Interest expense						(400)						(328)						(72)						22		%
General, administrative and other						(3,341)						(3,086)						(255)						8		%
Spread related earnings						$	2,022					$	36					$	1,986					5517		%

SRE was $2.0 million in the first quarter of 2026 compared to $36.0 thousand in 2025. The increase in SRE was primarily driven by lower cost of funds, partially offset by lower net investment income and realized gains (losses) and higher general, administrative and other expenses. Cost of funds decreased by $2.8 million, primarily driven by significant unfavorable experience adjustment in LTC business in 2025 compared to 2026, which was partially offset by increase in interest sensitive contract benefits and DAC amortization from the assumption of the NSG MYGA block in the second quarter of 2025, Net investment income and realized gains (losses) decreased by $0.8 million. Net investment income decreased due to lower treasury yields, increased management fees and higher realized losses in 2026 compared to 2025. General, administrative and other expenses increased by $0.3 million in 2026. This increase was offset by

decrease in compensation and benefits, as compensation and benefit costs in 2026 were included within administrative fees under general, administrative and other expenses.

Net Investment Spread

The following presents net investment spread for the insurance segment:

						Three months ended March 31,
						2026						2025						Change
Net investment income and realized gain or (loss), net						1.56%						1.74%						(18)bps
Cost of funds¹						(1.39)%						(1.26)%						(13)bps
Net Investment spread						0.17%						0.48%						(31)bps

(1)Excludes changes in future policy benefits liabilities of LTC line of business, to calculate net investment spread, which result from changes in actuarial assumptions and future cash flow projections.

Net investment spread was 0.17% in the first quarter of 2026, a decrease of 31 basis points compared to 0.48% in the first quarter of 2025, primarily driven by a higher average net invested asset balance and lower net investment income and realized gain or (loss) and higher cost of funds in 2026 compared to 2025. Net investment income and realized gain or (loss) percent represents the percent of net investment income and realized gain (loss) over average net invested assets. Net investment income and realized gain (loss) was 1.56% in 2026, a decrease of 18 basis points compared to 1.74% in 2025, primarily driven by higher average net invested assets (including cash on hand), lower treasury yields, and higher realized losses on investment activities. Cost of funds percent represents the percent of cost of funds over average net invested assets. Cost of funds were higher in 2026 compared to 2025 primarily driven by increase in interest sensitive contract benefits and DAC amortization from the assumption of the NSG MYGA block in the second quarter of 2025.

Segment Information

Segment Income is a measure of profitability and has certain limitations in that it does not take into account certain items included under U.S. GAAP. Segment Income is the sum of (i) Fee Related Earnings and (ii) Spread Related Earnings. The following presents a reconciliation of Net Income (loss) attributable to Mount Logan common shareholders to Segment Income:

($ in Thousands)

						Three months ended March 31,
						2026						2025
Net income (loss)						$	(5,970)					$	(6,705)
Income tax (expense) benefit - Asset Management						-						(36)
Income (loss) before taxes						$	(5,970)					$	(6,669)
Asset Management Adjustments:
Intersegment management fee eliminations						1,818						1,167
Administration and servicing fees 1						1,067						504
Transaction costs						82						4,545
Compensation and benefits 1						31						577
Equity-based compensation						180						212
Amortization and impairment of intangible assets						444						910
Interest and other credit facility expenses						2,005						1,946
General, administrative and other 1						2,095						951
Net gains (losses) from investment activities						351						(841)
Dividend income						(60)						(38)
Interest income - bank interest						(116)						-
Other income (loss), net						-						(299)
Loss on extinguishment of debt						472						-
Insurance Solutions Adjustments:
Equity-based compensation						-						120
Net unrealized gains (losses) from investment activities						1,758						(126)
Other income						(1)						(76)
Intersegment management fee eliminations						(1,818)						(1,167)
General, administrative and other 2						920						600
Segment Income						$	3,258					$	2,316

(1)Represents corporate overhead allocated to each segment.

(2)Represents costs incurred by the insurance segment for purposes of U.S. GAAP reporting but not the day-to-day operations of the insurance company.

Liquidity and Capital Resources

As of March 31, 2026, the Asset Management segment carried $90.8 million (par value) of borrowings outstanding, comprising $76.3 million at fixed rates and $14.5 million at floating rates. At the same date, the Asset Management segment held $9.3 million of unrestricted cash and cash equivalents.

As of March 31, 2026, the Insurance Solutions segment reported $17.3 million (par value) of borrowings outstanding, including $14.3 million at fixed rates and $3.0 million at floating rates. Liquid assets, including high-quality assets that are marketable, can be pledged as security for borrowings, and can be converted to cash in a time frame that meets liquidity and funding requirements. As of March 31, 2026 and December 31, 2025, the total liquid assets of the Insurance Solutions segment were as follows:

($ in Thousands)

As of						March 31, 2026						December 31, 2025
Cash and cash equivalents1						$	52,556					$	118,753
Restricted cash						10,975						9,973
Investments						608,664						639,221
Receivable for investments sold						8,193						-
Accrued interest and dividend receivable1						13,797						12,596
Total liquid assets						$	694,185					$	780,543

(1)Cash and cash equivalents and accrued interest & dividend receivable includes cash and cash equivalent and accrued interest of consolidated VIEs, respectively.

Interest Rate Sensitivity

The Company owns debt assets that are exposed to interest rate sensitivity.

The following table summarizes the potential impact on net income of hypothetical base rate changes in interest rates within the Insurance Solutions segment assuming a parallel shift in the yield curve, with all other variables remaining constant. The impact of interest rates sensitivity on the Asset Management segment is immaterial.

As of						March 31, 2026						December 31, 2025
50 basis point increase1						$	704					$	653
50 basis point decrease1						$	(704)					$	(653)

(1)Losses are presented in brackets and gains are presented as positive numbers

Actual results may differ significantly from this sensitivity analysis. As such, the sensitivities should only be viewed as directional estimates of the underlying sensitivities for the respective factors based on the assumptions outlined above.

About Mount Logan Capital Inc.

Mount Logan Capital Inc. is an integrated alternative asset management and insurance solutions firm focused on generating durable, fee-based revenue and long-term value creation. The Company leverages differentiated investment strategies alongside permanent insurance capital to deliver attractive, risk-adjusted returns across market cycles.

Through its subsidiaries, Mount Logan Management LLC and Ability Insurance Company, Mount Logan manages and invests across private and public credit markets in North America and operates an insurance platform that provides long-duration liabilities to support its credit investment strategies. This integrated platform is designed to provide stable earnings, downside protection, and a low risk of principal impairment through the credit cycle.

As of March 31, 2026, Mount Logan Capital had over $2.1 billion in assets under management.

Estimates and Assumptions