FS KKR Capital Corp. Announces Third Quarter 2025 Results

Rhea-AI Summary

FS KKR Capital Corp (NYSE: FSK) reported results for the quarter ended September 30, 2025 and a declared Q4 2025 distribution of $0.70 per share payable ~Dec 17, 2025. The company reported net investment income of $0.57 per share, earnings per share of $0.76, and net asset value of $21.99 per share. Total purchases were $1,142 million vs. sales/repayments of $1,483 million (including $450 million sold to its JV).

Portfolio fair value was $13.4 billion with 63.2% in senior secured securities, weighted average yield on accruing debt of 10.6%, investments on non-accrual at 2.9% (fair value), net debt-to-equity of 116%, total debt of $7.4 billion, cash of $155 million and financing availability of $3.5 billion.

Positive

• Declared Q4 2025 distribution of $0.70 per share
• Net asset value per share rose to $21.99 from $21.93
• Portfolio fair value of $13.4B with 63.2% senior secured
• Weighted average yield on accruing debt of 10.6%

Negative

• Net investment income declined to $0.57 per share vs $0.62 prior quarter
• Total sales and repayments of $1,483M exceeded purchases of $1,142M
• Net debt-to-equity remains elevated at 116%
• Cash of only $155M versus $7.4B total debt

Insights

Credit portfolio analyst

FSK reported stable income, a small NAV gain, and maintained a $0.70 quarterly distribution—results skew mildly positive.

Net investment income held at $0.57 per share for the quarter, down slightly from the prior quarter, while Net Asset Value rose to $21.99 per share. Earnings swung to a $0.76 per share profit from a prior quarter loss, driven by a $0.19 per share total net realized and unrealized gain. Portfolio scale remains large at $13.4 billion in fair value with 63.2% in senior secured securities and a weighted average yield on accruing debt of 10.6%.

The primary dependencies and risks are funding and asset quality. Leverage sits at a net debt to equity ratio of 116% with $7.4 billion total debt and $155 million cash; 64% of debt is unsecured. Non‑accruals remain low at 2.9% of fair value, which supports current distributions but makes liquidity and financing terms key risk drivers.

Watch the declared fourth quarter distribution payment on or about December 17, 2025 (record December 3, 2025), trends in weighted yields (accruing debt 10.6%), and borrowing availability (~$3.5 billion subject to limits) over the next few quarters. These items will show whether the company sustains the stated 10% annualized distribution strategy and preserves NAV.

PHILADELPHIA and NEW YORK, Nov. 5, 2025 /PRNewswire/ -- FS KKR Capital Corp. (NYSE: FSK), or the Company, today announced its financial and operating results for the quarter ended September 30, 2025, and that its board of directors previously, on October 8, 2025, declared a fourth quarter 2025 distribution of $0.70 per share.

Financial and Operating Highlights for the Quarter Ended September 30, 2025 ⁽¹⁾

• Net investment income of $0.57 per share, compared to $0.62 per share for the quarter ended June 30, 2025
  • Adjusted net investment income⁽²⁾ of $0.57 per share, compared to $0.60 per share for the quarter ended June 30, 2025
• Net asset value of $21.99 per share, compared to $21.93 per share as of June 30, 2025
• Total net realized and unrealized gain of $0.19 per share, compared to a total net realized and unrealized loss of $1.36 per share for the quarter ended June 30, 2025
  • Adjusted net realized and unrealized gain⁽²⁾ of $0.21 per share, compared to adjusted net realized and unrealized loss of $1.34 per share for the quarter ended June 30, 2025
• Earnings (Loss) per Share of $0.76, compared to Earnings (Loss) per Share of $(0.75) for the quarter ended June 30, 2025
• Total purchases of $1,142 million versus $1,483 million of sales and repayments, including $450 million of sales to the Company's joint venture, Credit Opportunities Partners JV, LLC
• Net debt to equity ratio⁽³⁾ as of September 30, 2025 was 116%, compared to 120% as of June 30, 2025
• Paid distributions to stockholders totaling $0.70 per share⁽⁴⁾

"During the third quarter FSK generated $0.57 per share of Adjusted Net Investment Income, and our Net Asset Value per share increased to $21.99," said Michael C. Forman, Chief Executive Officer and Chairman. "We are pleased to announce our 2026 quarterly distribution strategy which we currently believe will result in an annualized yield of approximately 10% on our Net Asset Value, consistent with the BDC industry's long term yield of 9.0% to 10.0%. We believe this distribution will be attractive on both a relative and absolute basis."

Distribution for Fourth Quarter 2025

As previously announced, on October 8, 2025, FSK's board of directors declared a distribution for the fourth quarter of $0.70 per share, consisting of a base distribution of $0.64 per share and a supplemental distribution of $0.06 per share, which will be paid on or about December 17, 2025 to stockholders of record as of the close of business on December 3, 2025.

Portfolio Highlights as of September 30, 2025

• Total fair value of investments was $13.4 billion of which 63.2% was invested in senior secured securities.
• Weighted average annual yield on accruing debt investments⁽⁵⁾ was 10.6%, compared to 10.8% as of June 30, 2025. Excluding the impact of merger accounting, weighted average annual yield on accruing debt investments was 10.5%, compared to 10.6% as of June 30, 2025.
• Weighted average annual yield on all debt investments⁽⁵⁾ was 9.8%, compared to 9.9% as of June 30, 2025. Excluding the impact of merger accounting, weighted average annual yield on all debt investments was 9.7%, compared to 9.7% as of June 30, 2025.
• Exposure to the top ten largest portfolio companies by fair value was 20%, compared to 19% as of June 30, 2025.
• As of September 30, 2025, investments on non-accrual status represented 2.9% and 5.0% of the total investment portfolio at fair value and amortized cost, respectively, compared to 3.0% and 5.3% as of June 30, 2025. 

Portfolio Data	As of September 30, 2025	As of June 30, 2025
Total fair value of investments (in millions)	$13,415	$13,648
Asset Class (based on fair value)
Senior Secured Loans — First Lien	58.0 %	59.0 %
Senior Secured Loans — Second Lien	4.8 %	4.9 %
Other Senior Secured Debt	0.4 %	0.2 %
Subordinated Debt	1.6 %	1.6 %
Asset Based Finance	14.4 %	14.7 %
Credit Opportunities Partners JV, LLC	13.3 %	12.0 %
Equity/Other	7.5 %	7.6 %
Interest Rate Type (based on fair value)
% Variable Rate Debt Investments	63.8 %	66.0 %
% Fixed Rate Debt Investments	8.8.%	8.1 %
% Other Income Producing Investments	18.3 %	17.5 %
% Non-Income Producing Investments(7)	6.2 %	5.4 %
% of Investments on Non-Accrual(6)	2.9 %	3.0 %

Leverage and Liquidity as of September 30, 2025

• Net debt to equity ratio⁽³⁾ of 116%, based on $7.4 billion in total debt outstanding, $155 million of cash, cash equivalents and foreign currency and $46 million of net receivable for investments sold and repaid and stockholders' equity of $6.2 billion. FSK's weighted average effective interest rate (including the effect of non-usage fees) was 5.29%.
• Cash, cash equivalents and foreign currency of $155 million and availability under the Company's financing arrangements of $3.5 billion, subject to borrowing base and other limitations.
• As of September 30, 2025, 64% of the Company's $7.4 billion of total debt outstanding was in unsecured debt and 36% in secured debt.

Conference Call Information
FSK will host its third quarter 2025 results conference call via live webcast on Thursday, November 6, 2025 at 9:00 a.m. (Eastern Time). All interested parties are welcome to participate and can access the live webcast from the For Investors section of FSK's website at www.fskkrcapitalcorp.com under Events & Presentations or through the following URL: https://edge.media-server.com/mmc/p/bfej9rbd. 

Research analysts who wish to participate in the conference call are requested to register a day in advance or at a minimum 15 minutes before the start of the call using the following URL: https://register.vevent.com/register/BId48596b4c82440e48cc3c575f06d7b1a. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN number that can be used to access the call.

An investor presentation of financial information will be available by visiting the For Investors section of FSK's website at www.fskkrcapitalcorp.com, under Events & Presentations, after the market close on Wednesday, November 5, 2025.

A replay of the call will be available beginning shortly after the end of the call by visiting the For Investors section of FSK's website, under Events & Presentations.

About FS KKR Capital Corp.

FSK is a leading publicly traded business development company (BDC) focused on providing customized credit solutions to private middle market U.S. companies. FSK seeks to invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market companies. FSK is advised by FS/KKR Advisor, LLC. For more information, please visit www.fskkrcapitalcorp.com. 

About FS/KKR Advisor, LLC

FS/KKR Advisor, LLC (FS/KKR) is a partnership between Future Standard, formerly FS Investments, and KKR Credit that serves as the investment adviser to FSK and other business development companies.

Future Standard is a global alternative asset manager serving institutional and private wealth clients, investing across private equity, credit and real estate. With a 30+ year track record of value creation and over $86 billion in assets under management⁽⁸⁾, we back the business owners and financial sponsors that drive growth and innovation across the middle market, transforming untapped potential into durable value.

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group's website at www.globalatlantic.com. 

Forward-Looking Statements and Important Disclosure Notice

This announcement may contain certain forward-looking statements, including statements with regard to future events or future performance or operations of FSK. Words such as "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements. Factors that could cause actual results to differ materially include changes in the economy, risks associated with possible disruption in FSK's operations or the economy generally due to terrorism, geo-political risks, natural disasters or pandemics, future changes in laws or regulations and conditions in FSK's operating area and the price at which shares of FSK's common stock trade on the New York Stock Exchange. Some of these factors are enumerated in the filings FSK makes with the SEC. FSK undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The press release above contains summaries of certain financial and statistical information about FSK. The information contained in this press release is summary information that is intended to be considered in the context of FSK's SEC filings and other public announcements that FSK may make, by press release or otherwise, from time to time. FSK undertakes no duty or obligation to update or revise the information contained in this press release. In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. Investors should not view the past performance of FSK, or information about the market, as indicative of FSK's future results.

Other Information

The information in this press release is summary information only and should be read in conjunction with FSK's quarterly report on Form 10-Q for the quarter ended September 30, 2025, which FSK filed with the U.S. Securities and Exchange Commission (the SEC) on November 5, 2025, as well as FSK's other reports filed with the SEC. A copy of FSK's quarterly report on Form 10-Q for the quarter ended September 30, 2025 and FSK's other reports filed with the SEC can be found on FSK's website at www.fskkrcapitalcorp.com and the SEC's website at www.sec.gov. 

Certain Information About Distributions

The determination of the tax attributes of FSK's distributions is made annually as of the end of its fiscal year based upon its taxable income and distributions paid, in each case, for the full year. Therefore, a determination as to the tax attributes of the distributions made on a quarterly basis may not be representative of the actual tax attributes for a full year. FSK intends to update stockholders quarterly with an estimated percentage of its distributions that resulted from taxable ordinary income. The actual tax characteristics of distributions to stockholders will be reported to stockholders annually on Form 1099-DIV.

The timing and amount of any future distributions on FSK's shares of common stock are subject to applicable legal restrictions and the sole discretion of its board of directors. There can be no assurance as to the amount or timing of any such future distributions.

FSK may fund its distributions to stockholders from any sources of funds legally available to it, including net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, dividends or other distributions paid to it on account of preferred and common equity investments in portfolio companies, proceeds from the sale of shares of FSK's common stock and borrowings. FSK has not established limits on the amount of funds it may use from available sources to make distributions. There can be no assurance that FSK will be able to pay distributions at a specific rate or at all.

Unaudited Consolidated Statements  of Operations (in millions, except share and per share amounts)
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2025		2024		2025		2024
Investment income
From non-controlled/unaffiliated investments:
Interest income		$              217		$              274		$              658		$              838
Paid-in-kind interest income		24		19		55		53
Fee income		4		20		27		46
Dividend and other income		6		7		30		20
From non-controlled/affiliated investments:
Interest income		7		6		23		19
Paid-in-kind interest income		15		11		51		31
Fee income		—		1		3		1
Dividend and other income		5		3		20		12
From controlled/affiliated investments:
Interest income		7		10		35		58
Paid-in-kind interest income		15		36		63		60
Fee income		—		—		—		9
Dividend and other income		73		54		206		167
Total investment income		373		441		1,171		1,314
Operating expenses
Management fees		51		54		156		163
Subordinated income incentive fees		33		44		108		132
Administrative services expenses		3		2		8		7
Accounting and administrative fees		1		1		3		3
Interest expense		116		118		354		349
Other general and administrative expenses		6		7		19		18
Total operating expenses		210		226		648		672
Net investment income before taxes		163		215		523		642
Excise taxes		4		—		4		—
Net investment income		159		215		519		642
Realized and unrealized gain/loss
Net realized gain (loss) on investments:
Non-controlled/unaffiliated investments		(25)		(24)		(131)		(314)
Non-controlled/affiliated investments		(10)		(26)		(2)		(34)
Controlled/affiliated investments		(18)		7		(73)		(2)
Net realized gain (loss) on foreign currency forward contracts		—		1		(3)		20
Net realized gain (loss) on foreign currency		(20)		(2)		(25)		(5)
Net change in unrealized appreciation (depreciation) on investments:
Non-controlled/unaffiliated investments		(47)		(3)		69		164
Non-controlled/affiliated investments		6		78		(76)		98
Controlled/affiliated investments		141		(53)		(62)		(102)
Net change in unrealized appreciation (depreciation) on foreign currency forward contracts		3		(6)		(17)		(19)
Net change in unrealized gain (loss) on foreign currency		25		(27)		(60)		(10)
Total net realized and unrealized gain (loss)		55		(55)		(380)		(204)
Provision for taxes on investments		—		—		(11)		—
Realized loss on extinguishment of debt		—		—		(3)		—
Net increase (decrease) in net assets resulting from operations		$              214		$              160		$              125		$              438
Per share information—basic and diluted
Net increase (decrease) in net assets resulting from operations (Earnings (Losses)        per Share)		$             0.76		$             0.57		$             0.45		$             1.56
Weighted average shares outstanding		280,066,433		280,066,433		280,066,433		280,066,433

 

Consolidated Balance Sheets (in millions, except share and per share amounts)
		September 30, 2025		December 31, 2024
		(Unaudited)
Assets
Investments, at fair value
Non-controlled/unaffiliated investments (amortized cost—$9,075 and $8,830, respectively)		$                        8,888		$                    8,573
Non-controlled/affiliated investments (amortized cost—$1,149 and $1,128, respectively)		1,085		1,140
Controlled/affiliated investments (amortized cost—$3,814 and $4,086, respectively)		3,442		3,777
Total investments, at fair value (amortized cost—$14,038 and $14,044, respectively)		$                      13,415		$                  13,490
Cash and cash equivalents		119		278
Foreign currency, at fair value (cost—$36 and $17, respectively)		36		18
Receivable for investments sold and repaid		48		186
Income receivable		209		187
Unrealized appreciation on foreign currency forward contracts		—		3
Deferred financing costs		36		26
Prepaid expenses and other assets		46		31
Total assets		$                      13,909		$                  14,219
Liabilities
Payable for investments purchased		$                               2		$                           2
Debt (net of deferred financing costs and discount of $50 and $49, respectively)		7,356		7,351
Unrealized depreciation on foreign currency forward contracts		15		1
Stockholder distributions payable		196		—
Management fees payable		51		53
Subordinated income incentive fees payable		33		35
Administrative services expense payable		7		3
Interest payable		70		108
Other accrued expenses and liabilities		20		44
Total liabilities		7,750		7,597
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued and outstanding		—		—
Common stock, $0.001 par value, 750,000,000 shares authorized, 280,066,433 and 280,066,433 shares           issued and outstanding, respectively		0		0
Capital in excess of par value		9,284		9,284
Retained earnings (accumulated deficit)		(3,125)		(2,662)
Total stockholders' equity		6,159		6,622
Total liabilities and stockholders' equity		$                      13,909		$                  14,219
Net asset value per share of common stock at period end		$                        21.99		$                    23.64

Non-GAAP Financial Measures

This press release contains certain financial measures that have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). FSK uses these non-GAAP financial measures internally in analyzing financial results and believes that the use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing results and trends and in comparing FSK's financial results with other BDCs.

Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with FSK's consolidated financial statements prepared in accordance with GAAP. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures has been provided in this press release, and investors are encouraged to review the reconciliation.

Reconciliation of Non-GAAP Financial Measures(1)
	Three Months Ended
	30-Sep-25		30-Jun-25
GAAP net investment income per share	$0.57		$0.62
Accretion resulting from merger accounting	($0.01)		($0.02)
Excise tax	$0.01		$0.00
Adjusted net investment income per share(2)	$0.57		$0.60
GAAP net realized and unrealized gain (loss) per share	$0.19		($1.36)
Unrealized appreciation from merger accounting	$0.01		$0.02
Adjusted net realized and unrealized gain (loss)(2)	$0.21		($1.34)

1)	Per share data was derived by using the weighted average shares of FSK's common stock outstanding during the applicable period. Per share numbers may not sum due to rounding.
2)	Adjusted net investment income is a non-GAAP financial measure. Adjusted net investment income is presented for all periods as GAAP net investment income excluding (i) the accrual for the capital gains incentive fee for realized and unrealized gains; (ii) excise taxes (iii) the impact of accretion resulting from merger accounting; and (iv) certain non-recurring operating expenses that are one-time in nature and are not representative of ongoing operating expenses incurred during FSK's normal course of business. FSK uses this non-GAAP financial measure internally in analyzing financial results and believes that the use of this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends and in comparing its financial results with other business development companies. Adjusted net realized and unrealized gain is a non-GAAP financial measure. Adjusted net realized and unrealized gain is presented for all periods as GAAP realized and unrealized gains to exclude the impact of the merger accounting. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. A reconciliation of GAAP net investment income to adjusted net investment income and GAAP net realized and unrealized gain to adjusted net realized and unrealized gain can be found above.
3)	Net debt to equity ratio is debt outstanding, net of cash and foreign currency and net payable/receivable for investments purchased/sold and repaid, divided by net assets.
4)	The per share data for distributions reflects the amount of distributions paid per share of our common stock to stockholders of record during each applicable period.
5)	See FSK's quarterly report on Form 10-Q for the quarter ended September 30, 2025 for important information, including information related to the calculation and definition of weighted average annual yield on accruing debt investments, weighted average annual yield on all debt investments, variable rate debt investments, fixed rate debt investments, other income producing investments and non-income producing investments.
6)	Interest income is recorded on an accrual basis. See FSK's quarterly report on Form 10-Q for the quarter ended September 30, 2025 for a description of FSK's revenue recognition policy.
7)	Does not include investments on non-accrual status.
8)	Total AUM estimated as of June 30, 2025. References to "assets under management" or "AUM" represent the assets managed by Future Standard or its strategic partners as to which Future Standard is entitled to receive a fee or carried interest (either currently or upon deployment of capital) and general partner capital. Future Standard calculates the amount of AUM as of any date as the sum of: (i) the fair value of the investments of Future Standards' investment funds; (ii) uncalled investor capital commitments to these funds, including uncalled investor capital commitments from which Future Standard is currently not earning management fees or carried interest; (iii) the value of outstanding CLOs (excluding CLOs wholly-owned by Future Standard); (iv) the fair value of FS KKR Capital Corp. joint venture (JV) assets and (v) the fair value of other assets managed by Future Standard. Future Standards' calculation of AUM may differ from the calculations of other asset managers and, as a result, Future Standards' measurements of its AUM may not be comparable to similar measures presented by other asset managers. Future Standards' definition of AUM is not based on any definition of AUM that may be set forth in agreements governing the investment funds, vehicles or accounts that it manages and is not calculated pursuant to any regulatory definitions.

Contact Information:

Investor Relations Contact

Anna Kleinhenn
Anna.Kleinhenn@futurestandard.com

Future Standard Media Team

Marc Hazelton
Marc.Hazelton@futurestandard.com 

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SOURCE Future Standard

FAQ

What distribution did FS KKR Capital (FSK) declare for Q4 2025 and when is it payable?

FSK declared a $0.70 per share distribution for Q4 2025, payable on or about December 17, 2025 to holders of record as of December 3, 2025.

What were FS KKR Capital's net investment income and EPS for Q3 2025 (FSK)?

FSK reported net investment income of $0.57 per share and earnings per share of $0.76 for the quarter ended September 30, 2025.

What was FS KKR Capital's net asset value per share (NAV) as of September 30, 2025?

FSK's reported NAV was $21.99 per share as of September 30, 2025, up from $21.93 at June 30, 2025.

How leveraged is FS KKR Capital (FSK) and what is its liquidity as of Sept 30, 2025?

FSK had a net debt-to-equity ratio of 116%, $7.4B total debt, $155M cash and $3.5B available under financing arrangements as of Sept 30, 2025.

What is the size and composition of FSK's investment portfolio as of Sept 30, 2025?

FSK's portfolio fair value was $13.4B; 63.2% in senior secured securities, 13.3% in the Credit Opportunities JV, and 7.5% equity/other.

What yield did FS KKR Capital report on its debt investments in Q3 2025?

Weighted average annual yield on accruing debt investments was 10.6%, and weighted average yield on all debt investments was 9.8% as of Sept 30, 2025.