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
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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 approximately 136% 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 $12.3 million. The Company has potential additional capital resources, as set forth in more detail in Item 7 of our Annual Report.
(1) Additional information regarding the non-GAAP financial measures discussed in this release, including an explanation of these measures and how each is calculated, is included below under the heading “Non-GAAP Financial Measures.” A reconciliation of GAAP to non-GAAP financial measures has also been provided in the financial tables included below.
Assigned Recovery Rights Claims Paid and Billed Value
The table below outlines the Company’s claims data received in the most recent periods. The amounts represent data received from current and new assignors:
| Year Ended December 31, | |||||||||||
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$ 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 $18.1 million, of which the Recovery Multiple for recoveries obtained pursuant to the MSP Laws was 1.32 times the Paid Amount, and the Recovery Multiple for recoveries obtained pursuant to non-MSP Laws, including antitrust and unfair trade practice laws, was 0.04 times the Paid Amount. During the years ended December 31, 2023 and 2022, recoveries were not meaningful, and so no multiple is provided.
(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 $9.8 billion. As set forth in our Risk Factors, PVPRC is based on a variety of factors. As such, this estimate is subject to change based on the variety of legal claims being litigated and statute of limitations tolling theories that apply.
- Total Paid Amount of owned claims has increased to $380.4 billion, as of December 31, 2024, up $10.6 billion or 2.9% 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 or 1.3% 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 $25 million of collateral to backstop additional working capital requirements of the Company, as disclosed in more detail in Note 9, Claims Financing Obligations and Notes Payable, and has taken several actions to address liquidity concerns. More information can be found in Part II, Item 7 of the Annual Report.
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 $752.7 million recorded during the fourth quarter of 2024 in Impairment of Intangible Assets in the statement of operations. For additional information, see Note 6, Intangible Assets, Net, to our Consolidated Financial Statements and Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates – Impairment of Intangible Assets.
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.
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MSP RECOVERY, INC. and Subsidiaries Consolidated Balance Sheets |
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| 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, $0.0001 par value; 5,500,000,000 shares authorized; 2,184,958 and 586,393 issued and outstanding as of December 31, 2024 and 2023, respectively | $ | — | $ | — | ||||
| Class V common stock, $0.0001 par value; 3,250,000,000 shares authorized; 4,962,704 and 4,965,296 issued and outstanding as of December 31, 2024 and 2023, respectively | — | — | ||||||
| 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 $1.4 billion and $2.2 billion, respectively, related to a consolidated VIE. See Note 8, Variable Interest Entities, for further details.
The accompanying notes are an integral part of these consolidated financial statements.
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MSP RECOVERY, INC. and Subsidiaries Consolidated Statements of Operations |
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| 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 $3.4 million and $0.3 million of related party expenses, respectively. This relates to contingent legal expenses earned from Claims recovery income pursuant to legal service agreements with the La Ley con John H. Ruiz P.A., d/b/a MSP Recovery Law Firm (the “Law Firm”). See Note 14, Related Party Transactions, for further details.
2. For the years ended December 31, 2024 and 2023, general and administrative expenses included $0.2 million and $0.2 million of related party expenses, respectively.
3. For the year ended December 31, 2024 and 2023, Professional Fees – Legal included $7.7 million and $19.2 million of related party expenses related to the Law Firm. See Note 14, Related Party Transactions, for further details.
4. For the year ended December 31, 2024 and 2023, Interest expense included $318.9 million and $226.5 million, respectively, of interest expense to related parties.
The accompanying notes are an integral part of these consolidated financial statements.
Non-GAAP Financial Measures
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MSP RECOVERY, INC. and Subsidiaries Non-GAAP Reconciliation |
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| 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.
