Nuveen Churchill Direct Lending Corp. Announces Fourth Quarter 2025 Results

Key Terms

net investment income financial

Net investment income is the money an investor or fund actually keeps from its investments after subtracting the costs of running those investments (like management fees, interest, and losses). Think of it as your paycheck from owning assets: gross returns minus the bills needed to earn them. Investors watch it because it shows how profitable the investment activities are, influences dividend payouts and cash available for growth, and helps compare true performance across funds or companies.

net asset value financial

Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.

first-lien debt financial

Debt that is backed by specific company assets and has the highest legal claim on those assets if the borrower defaults. Think of it like a mortgage lender who gets paid first from a house sale before other creditors; because first-lien holders are first in line, their loans are generally safer and may carry lower interest, making them important for investors who want priority protection in a distress or bankruptcy scenario.

subordinated debt financial

Subordinated debt is a type of loan that is paid back after other debts have been settled if a company encounters financial trouble. It is considered riskier for lenders because they have lower priority in getting repaid, similar to being last in line during a payout. For investors, this means higher potential returns in exchange for taking on more risk.

non-accrual status financial

A loan or credit account is placed in non-accrual status when the lender stops recording expected interest income because the borrower is not making scheduled payments or repayment is doubtful. Think of it like a landlord who stops counting unpaid rent as future income once a tenant stops paying; it signals rising credit problems and potential losses. For investors, non-accrual levels indicate loan quality and can foreshadow write-downs, lower earnings, and increased risk to a lender’s balance sheet.

weighted average yield financial

Weighted average yield is the combined income rate of a group of securities or holdings, calculated by averaging each holding’s yield while giving larger positions more influence. Investors use it to see the portfolio’s true expected income and to compare funds or bond mixes, because it shows how big holdings drive overall returns—like averaging the gas mileage of a fleet where bigger vehicles count more, revealing the real performance.

debt to equity ratio financial

Debt to equity ratio measures how much a company has borrowed compared to the money provided by its owners or shareholders. Investors use it to judge financial risk and stability—much like comparing a household’s mortgage to its savings, a higher ratio means the business relies more on borrowed money and may be more vulnerable if earnings fall, while a lower ratio suggests more conservative funding from owners.

10b5-1 plan regulatory

A 10b5-1 plan is a pre-arranged strategy that allows company insiders to buy or sell their shares at predetermined times and prices, even while they are aware of confidential information. It acts like a scheduled appointment for trading, helping ensure transactions happen transparently and legally, which can reassure investors that trades are not based on insider knowledge.

Reports Fourth Quarter Net Investment Income of $0.44 per Share

Declares First Quarter Distribution of $0.40 per Share, Consisting of a Regular Distribution of $0.36 per Share and a Supplemental Distribution of $0.04 per Share

NEW YORK--(BUSINESS WIRE)-- Nuveen Churchill Direct Lending Corp. (NYSE: NCDL) (“NCDL” or the “Company”), a business development company externally managed by its investment adviser, Churchill DLC Advisor LLC (the “Adviser”), and by its sub-adviser, Churchill Asset Management LLC (“Churchill”), today reported financial results for the full year and fourth quarter ended December 31, 2025.

Financial Highlights for the Quarter Ended December 31, 2025

• Net investment income of $0.44 per share
• Net realized and unrealized loss on investments of $(0.12) per share
• Net increase in net assets resulting from operations of $0.32 per share
• Net asset value ("NAV") per share of $17.72, compared to $17.85 per share as of September 30, 2025
• Paid fourth quarter regular distribution of $0.45 per share on January 27, 2026, which represents a 10.1% total annualized distribution yield based on the fourth quarter NAV per share
• Declares first quarter distribution of $0.40 per share, consisting of a regular distribution of $0.36 per share and a supplemental distribution of $0.04 per share
• Board authorized a $50 million share repurchase program

“We are pleased to conclude 2025 with a strong quarter of financial results,” said Ken Kencel, President and Chief Executive Officer of NCDL. “Our investment portfolio continues to demonstrate strength and stability, as we ended the year with only 0.5% of the total portfolio at fair value on non-accrual status. We are encouraged by the positive momentum in deal activity we experienced in the second half of last year, and we remain intensely focused on generating attractive risk adjusted returns for our shareholders.”

“In 2025, NCDL delivered a return on equity of nearly 11% and paid $1.90 per share of distributions, reflecting ongoing, strong operating performance,” said Shai Vichness, Chief Financial Officer and Treasurer of NCDL. “We have reset our regular quarterly distribution to a level that considers the current interest rate and spread environment. In conjunction with the reset of our dividend, we are announcing a new $50 million share repurchase program, which demonstrates our confidence in the overall strength of our portfolio.”

Distribution Declaration and Share Repurchase Program

The Company’s Board of Directors (the “Board“) has declared a regular distribution of $0.36 per share and a supplemental distribution of $0.04 per share, payable on or around April 28, 2026 to shareholders of record as of March 31, 2026.

On February 12, 2026, the Board approved a share repurchase program (the "Company 10b5-1 Plan") authorizing the Company to purchase up to $50 million in the aggregate of its outstanding common stock in the open market at prices below NAV per share.

PORTFOLIO COMPOSITION

As of December 31, 2025, the fair value of the Company's portfolio investments was $2.0 billion across 227 portfolio companies in 26 industries compared to $2.0 billion as of September 30, 2025 across 213 portfolio companies in 26 industries.

As of December 31, 2025, the Company’s portfolio based on fair value consisted of approximately 89.5% first-lien debt investments, 8.2% subordinated debt investments, and 2.3% equity investments. As of September 30, 2025, the Company’s portfolio based on fair value consisted of 89.8% first-lien debt investments, 8.1% subordinated debt investments, and 2.1% equity investments.

As of December 31, 2025 and September 30, 2025, the weighted average Internal Risk Rating of the portfolio at fair value was 4.2 and 4.2 (4.0 being the initial rating assigned at origination), respectively. As of December 31, 2025, there were investments in four portfolio companies on non-accrual status representing 0.5% of total investments at fair value (or 1.2% of total investments at cost). As of September 30, 2025, there were investments in three portfolio companies on non-accrual status representing 0.4% of total investments at fair value (or 0.9% of total investments at cost).

PORTFOLIO AND INVESTMENT ACTIVITY

Full Year

For the year ended December 31, 2025, the Company funded $350.7 million of portfolio investments and received $456.2 million of proceeds from principal repayments and sales, compared to $863.6 million and $430.0 million, respectively, for the year ended December 31, 2024.

Fourth Quarter

For the three months ended December 31, 2025, the Company funded $80.4 million of portfolio investments and received $84.3 million of proceeds from principal repayments and sales, compared to $36.3 million and $61.3 million, respectively, for the three months ended September 30, 2025.

RESULTS OF OPERATIONS FOR THE FULL YEAR AND FOURTH QUARTER ENDED DECEMBER 31, 2025

Investment Income

Full Year

Investment income decreased to $207.9 million for the year ended December 31, 2025 from $224.0 million for the year ended December 31, 2024. As of December 31, 2025, the size of our portfolio decreased to $2.0 billion from $2.1 billion as of December 31, 2024, at cost. As of December 31, 2025, the weighted average yield of our debt and income producing investments decreased to 9.48% from 10.33% as of December 31, 2024, at cost, primarily due to overall tightening of spreads in newly originated investments, the refinancing or repricing of existing portfolio companies, and the decline in base interest rates.

Fourth Quarter

Investment income for the three months ended December 31, 2025 was $50.0 million compared to $57.1 million for the three months ended December 31, 2024.

Net Expenses

Full Year

Net expenses before excise taxes increased to $114.3 million for the year ended December 31, 2025 from $101.1 million for the year ended December 31, 2024, primarily due to an increase in management fees and income-based incentive fees. The increase in management fees was primarily attributable to the increase in the management fee base rate from 0.75% to 1.00%, effective March 31, 2025, pursuant to the terms of the Advisory Agreement. Additionally, effective March 31, 2025, the Adviser's waiver of incentive fees on income and on capital gains expired pursuant to the terms of the Advisory Agreement. For the year ended December 31, 2025, income-based incentive fees totaled $11.2 million, of which $2.3 million was waived during the first quarter of 2025 when the fee waiver was in effect. Interest and debt financing expenses decreased primarily due to a lower average interest rate, partially offset by higher average daily borrowings and one-time costs associated with debt facility refinancings completed during the first quarter of 2025.

Fourth Quarter

Net expenses before excise taxes increased to $28.2 million for the three months ended December 31, 2025 from $26.4 million for the three months ended December 31, 2024.

Net Realized Gain (Loss) and Net Change in Unrealized Gain (Loss) on Investments

For the year ended December 31, 2025, the Company recorded a net realized loss on investments of $(6.0) million, compared to a net realized loss of $(13.2) million for the year ended December 31, 2024. The net realized loss for the year ended December 31, 2025 was primarily driven by the restructuring of an underperforming debt position, partially offset by realized gains from full or partial repayments and sales of investments in portfolio companies. The Company recorded a net change in unrealized loss of $(21.6) million for the year ended December 31, 2025, compared to a net change in unrealized gain of $7.3 million for the year ended December 31, 2024. The increase in total net change in unrealized loss for the year ended December 31, 2025, compared to the total net change in unrealized gain for the year ended December 31, 2024, primarily resulted from decreases in fair value of certain underperforming portfolio companies, partially offset by the reversal of unrealized loss on a debt position that was restructured during the year.

For the three months ended December 31, 2025, the Company recorded a net realized gain on investments of $2.1 million compared to a net realized loss of $(11.7) million for the three months ended December 31, 2024. The Company recorded a net change in unrealized loss of $(7.5) million for the three months ended December 31, 2025 compared to a net change in unrealized gain of $11.3 million for the three months ended December 31, 2024.

Financial Condition, Liquidity and Capital Resources

As of December 31, 2025, the Company had $62.5 million in cash and cash equivalents and $1.1 billion in total aggregate principal amount of debt outstanding. Subject to borrowing base and other conditions, the Company had approximately $259.0 million available for additional borrowings under its revolving credit facility as of December 31, 2025. At December 31, 2025, the Company's debt to equity ratio was 1.27x (1.20x net debt to equity ratio) compared to 1.25x (1.20x net debt to equity ratio) at September 30, 2025.

CONFERENCE CALL AND WEBCAST INFORMATION

Nuveen Churchill Direct Lending Corp. will hold a conference call to discuss its full year and fourth quarter 2025 financial results today at 10:00 AM Eastern Time. All interested parties may participate in the conference call by dialing (866) 605-1826 approximately 10-15 minutes prior to the call; international callers should dial +1 (215) 268-9877. Participants should reference Nuveen Churchill Direct Lending Corp. when prompted.

A live webcast of the conference call will also be available on the Events section of the Company's website at https://www.ncdl.com/news/events. A replay will be available under the same link following the conclusion of the conference call.

About Nuveen Churchill Direct Lending Corp.

Nuveen Churchill Direct Lending Corp. (“NCDL”) is a specialty finance company focused primarily on investing in senior secured loans to private equity-owned U.S. middle market companies. NCDL has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. NCDL is externally managed by its investment adviser, Churchill DLC Advisor LLC, and by its sub-adviser, Churchill Asset Management LLC (“Churchill”). Both the investment adviser and sub-adviser are affiliates and subsidiaries of Nuveen, LLC (“Nuveen”), the investment management division of Teachers Insurance and Annuity Association of America (“TIAA”) and one of the largest asset managers globally. Churchill is a leading capital provider for private equity-backed middle market companies and operates as the exclusive U.S. middle market direct lending and private capital business of Nuveen and TIAA. Churchill is a registered investment advisor and majority-owned, indirect subsidiary of TIAA.

Forward-Looking Statements

This press release contains historical information and “forward-looking statements” with respect to the business and investments of NCDL, including, but not limited to, statements about NCDL’s future financial performance and financial condition, which involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current and prospective portfolio investments, our industry, our beliefs, and our assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” “outlook,” “potential,” “predicts” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond NCDL’s control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors identified in NCDL’s filings with the Securities and Exchange Commission, including changes in the financial, capital, and lending markets; changes in the interest rate environment and its impact on NCDL's business, its financial condition and its portfolio companies; the uncertainty associated with the imposition of tariffs and trade barriers and changes in trade policy, and its impact on NCDL's portfolio companies and the general economy; general economic, political and industry trends and other external factors; the dependence of NCDL’s future success on the general economy and its impact on the industries in which it invests; and other risks, uncertainties and other factors we identify in the section entitled “Risk Factors” in NCDL’s most recent Annual Report on Form 10-K, which is accessible on the SEC’s website at www.sec.gov. Investors should not place undue reliance on these forward-looking statements, which apply only as of the date on which NCDL makes them. NCDL does not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law.

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CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (dollars in thousands, except share and per share data)
	December 31, 2025				December 31, 2024
Assets
Investments
Non-controlled/non-affiliated company investments, at fair value (cost of $2,001,207 and $2,098,575, respectively)	$	1,962,449			$	2,081,379
Cash		8,554				2,412
Cash equivalents		53,927				40,842
Restricted cash		—				50
Interest receivable		13,729				17,971
Derivative asset, at fair value (Note 4)		14,965				—
Receivable for investments sold		518				1,024
Other assets		327				47
Total assets	$	2,054,469			$	2,143,725
Liabilities
Debt (net of $8,511 and $6,668 deferred financing costs, respectively, and net of unamortized discount of $471 and $0, respectively) (See Note 7)	$	1,115,052			$	1,108,261
Payable for investments purchased		—				14,973
Interest payable		15,350				12,967
Incentive fees payable		2,809				—
Management fees payable		5,048				3,956
Collateral due to broker		14,750				—
Distributions payable		22,224				29,468
Directors’ fees payable		156				128
Accounts payable and accrued expenses		3,900				3,652
Total liabilities		1,179,289				1,173,405
Commitments and contingencies (See Note 8)
Net Assets: (See Note 9)
Common shares, $0.01 par value, 500,000,000 and 500,000,000 shares authorized, 49,387,065 and 53,387,277 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively		494				534
Paid-in-capital in excess of par value		930,393				996,286
Total distributable earnings (loss)		(55,707	)			(26,500	)
Total net assets		875,180				970,320
Total liabilities and net assets	$	2,054,469			$	2,143,725
Net asset value per share (See Note 11)	$	17.72			$	18.18
See Notes to Consolidated Financial Statements

CONSOLIDATED STATEMENTS OF OPERATIONS (dollars in thousands, except share and per share data)
	Three Months Ended December 31,								For the Years Ended December 31,
	2025				2024				2025				2024
Investment income:
Non-controlled/non-affiliated company investments:
Interest income	$	46,611			$	53,683			$	195,896			$	213,096
Payment-in-kind interest income		2,870				2,275				9,868				8,299
Dividend income		—				257				402				614
Other income		554				861				1,692				2,031
Total investment income		50,035				57,076				207,858				224,040
Expenses:
Interest and debt financing expenses		17,947				21,019				77,901				79,879
Management fees (See Note 6).		5,048				3,956				19,269				14,683
Incentive fees on net investment income (See Note 6)		2,809				4,417				11,182				17,447
Professional fees		836				785				3,146				3,100
Directors' fees		156				127				624				510
Administration fees (See Note 6)		606				300				2,341				1,861
Other general and administrative expenses		802				180				2,124				1,068
Total expenses before expense support and incentive fees waived		28,204				30,784				116,587				118,548
Expense support (See Note 6)		—				—				—				—
Incentive fees waived (See Note 6)		—				(4,417	)			(2,253	)			(17,447	)
Net expenses after expense support and incentive fees waived		28,204				26,367				114,334				101,101
Net investment income before excise taxes		21,831				30,709				93,524				122,939
Excise taxes		186				551				186				551
Net investment income		21,645				30,158				93,338				122,388
Realized and unrealized gain (loss) on investments:
Net realized gain (loss) on non-controlled/non-affiliated company investments		2,065				(11,676	)			(6,013	)			(13,198	)
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated company investments		(7,514	)			11,282				(21,562	)			7,287
Income tax (provision) benefit		(276	)			(313	)			(149	)			(154	)
Total net change in unrealized appreciation (depreciation)		(7,790	)			10,969				(21,711	)			7,133
Total net realized and unrealized gain (loss) on investments		(5,725	)			(707	)			(27,724	)			(6,065	)
Net increase (decrease) in net assets resulting from operations	$	15,920			$	29,451			$	65,614			$	116,323
Per share data:
Net investment income per share - basic and diluted	$	0.44			$	0.56			$	1.86			$	2.26
Net increase (decrease) in net assets resulting from operations per share - basic and diluted	$	0.32			$	0.54			$	1.30			$	2.15
Weighted average common shares outstanding - basic and diluted		49,387,055				54,229,767				50,286,270				54,118,379
See Notes to Consolidated Financial Statements

PORTFOLIO AND INVESTMENT ACTIVITY (dollars in thousands)
	For the Years Ended December 31,
	2025				2024
Net funded investment activity
New gross commitments at par 1	$	302,546			$	955,309
Net investments funded		350,739				863,570
Investments sold or repaid		(456,201	)			(429,953	)
Net funded investment activity	$	(105,462	)		$	433,617
Gross commitments at par 1
First-lien debt	$	266,857			$	924,776
Subordinated debt		22,270				26,088
Equity investments		13,419				4,445
Total gross commitments	$	302,546			$	955,309
Portfolio company activity
Portfolio companies, beginning of period		210				179
Number of new portfolio companies		58				68
Number of exited portfolio companies		(41	)			(37	)
Portfolio companies, end of period		227				210
Count of investments		528				475
Count of industries		26				27
New investment activity
Weighted average annual interest rate on new debt investments at par		9.21	%			10.11	%
Weighted average annual interest rate on new floating rate debt investments at par		8.92	%			10.02	%
Weighted average spread on new floating rate debt investments at par		4.78	%			5.05	%
Weighted average annual coupon on new fixed rate debt investments at par		12.73	%			13.53	%
__________________
1 Gross commitments at par includes unfunded investment commitments.
See Notes to Consolidated Financial Statements

PORTFOLIO AND INVESTMENT ACTIVITY (dollars in thousands)
	Three Months Ended December 31,
	2025				2024
Net funded investment activity
New gross commitments at par 1	$	59,372			$	162,663
Net investments funded		80,383				151,106
Investments sold or repaid		(84,325	)			(119,464	)
Net funded investment activity	$	(3,942	)		$	31,642
						—
Gross commitments at par 1
First-lien debt	$	47,538			$	159,436
Subordinated debt		5,867				3,127
Equity investments		5,967				100
Total gross commitments	$	59,372			$	162,663
Portfolio company activity
Portfolio companies, beginning of period		213				202
Number of new portfolio companies		21				16
Number of exited portfolio companies		(7	)			(8	)
Portfolio companies, end of period		227				210
Count of investments		528				475
Count of industries		26				27
New investment activity
Weighted average annual interest rate on new debt investments at par		8.81	%			8.96	%
Weighted average annual interest rate on new floating rate debt investments at par		8.37	%			8.90	%
Weighted average spread on new floating rate debt investments at par		4.72	%			4.59	%
Weighted average annual coupon on new fixed rate debt investments at par		13.00	%			12.00	%
__________________
1 Gross commitments at par includes unfunded investment commitments.
See Notes to Consolidated Financial Statements

 

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Source: Nuveen Churchill Direct Lending Corp.