- NAV (fair value) of $396.4 million at quarter end, up 7.8% YoY and up 0.9% QoQ; NAV per share of $25.52, down from $26.85 YoY and $25.86 QoQ, with a $0.50 one-time NAV reduction linked to the shift to monthly dividends. Excluding the one-time impact, NAV per share would be $26.02 (+0.6% QoQ).
- Adjusted NII: $10.1 million for the quarter, down 29.3% YoY but up 26.2% QoQ; Adjusted NII per share: $0.66, down 37.1% YoY and up 17.9% QoQ; Adjusted NII yield: 10.3% (down from 15.5% YoY; up from 8.4% QoQ).
- Net income: $13.93 million; net income per share (EPS) $0.91; YoY net income growth 110.8%, QoQ growth 148.4%.
- Earnings quality: gross margin 0.575, operating margin 0.479; ROE (latest 12 months) 9.3% vs industry average 7%.
- Cash & liquidity: cash at end of period $224.3 million; total available liquidity ≈ $430.3 million; cash conversion and dry powder support potential asset deployment of up to ~44% without external financing.
- Portfolio metrics: AUM $968 million; first lien exposure 86.9%; nonaccruals 0.6% of cost (Pepper Palace and Zollege, restructured); core non-CLO portfolio yield 11.5%; CLO yield 13.7% (BB CLO debt investments added).
- Capital structure: total debt $780.6 million; net debt $649.0 million; debt ratio 0.649; debt/equity 1.97x; no BDC covenants; calls on baby bonds enhance optionality in a declining-rate environment.
- Dividend policy: quarterly base dividend of $0.75 per share (aggregated for Q2 2026) with an 11.8% yield based on a $25.44 stock price (as of 2025-07-07).