MSP Recovery, Inc.(LIFW), a leading provider of cl aims recovery services, has announced its financial results for the third quarter of 2022. The company reported a net loss of $27 million for the quarter, while generating revenue of $8.3 million. These results reflect the company's ongoing efforts to expand its operations and provide valuable services to its clients.
MSP Recovery, Inc.'s unaudited condensed consolidated balance sheets reveal a net loss of $27 million for the three months ended September 30, 2022. The company's total assets increased significantly, reaching $6.57 billion, compared to $104 million at the end of the previous year.
The company's current assets also experienced substantial growth, with cash and cash equivalents reaching $14.3 million, up from $1.7 million at the end of 2021. Restricted cash amounted to $11.4 million, and accounts receivable stood at $7.5 million. Additionally, MSP Recovery, Inc. reported an indemnification asset of $752.5 million and prepaid expenses and other current assets of $32.7 million.
Revenue and Claims Recovery
During the third quarter of 2022, MSP Recovery, Inc. generated $8.3 million in revenue. This revenue was primarily derived from claims recovery income, which amounted to $2.6 million, and claims recovery service income, which reached $5.7 million.
Claims recovery service income includes revenue generated from VRM MSP Recovery Partners LLC, a related party. Throughout the quarter, MSP Recovery, Inc. continued to provide its services, resulting in a steady stream of income.
Operating Expenses and Net Loss
MSP Recovery, Inc. incurred operating expenses totaling $88.1 million during the third quarter of 2022. These expenses included costs of claim recoveries, claims amortization expenses, general and administrative expenses, professional fees, professional fees - legal, and depreciation and amortization.
Despite its revenue generation, the company reported an operating loss of $79.8 million for the quarter. This loss was primarily attributed to interest expenses of $13.1 million and a change in the fair value of warrant and derivative liabilities amounting to $2.7 million. The net loss before provision for income taxes amounted to $27.1 million.
MSP Recovery, Inc. faced challenges during the third quarter of 2022, resulting in a net loss of $27 million. However, the company continued to generate revenue, reaching $8.3 million, driven by its claims recovery services. MSP Recovery, Inc. remains committed to its mission of providing efficient and effective claims recovery solutions for its clients. The company will continue to focus on its operations, managing expenses, and seeking growth opportunities in the claims recovery industry.