Pearl Diver Credit Company Inc. Announces First Quarter 2026 Financial Results
Rhea-AI Summary
Pearl Diver Credit Company (NYSE: PDCC) reported first quarter 2026 results for the period ended March 31, 2026.
Key data: net asset value per common share fell to $10.48 from $14.42; GAAP net loss was $22.5 million ($3.28/share); net investment income was $2.6 million ($0.39/share).
Recurring CLO cash flows were $10.4 million ($1.53/share), and the CLO portfolio’s weighted average effective yield was 11.27%. Leverage totaled $39.5 million, or 35.0% of total assets. The company declared $0.13 monthly dividends for June–August 2026.
Positive
- Recurring CLO cash flows rose to $10.4 million, or $1.53 per share
- Quarterly expenses declined to $2.1 million, or $0.31 per share
- CLO portfolio weighted average effective yield reported at 11.27%
- High diversification: 1,382 obligors and over 1,700 loans totaling $27.2 billion
- Declared monthly common dividends of $0.13 for June, July, and August 2026
- Second-quarter-to-date CLO cash flows of $8.4 million through May 15, 2026
Negative
- GAAP net loss widened to $22.5 million, or $3.28 per share
- Net asset value per share declined from $14.42 to $10.48 in the quarter
- Net investment income decreased to $2.6 million, or $0.39 per share
- Net unrealized depreciation on investments reached $25.1 million, or $3.67 per share
- Portfolio effective yield decreased to 11.27% from 12.99% at year-end 2025
- Leverage rose to 35.0% of total assets from 28.7%
News Market Reaction – PDCC
In the May 19 session, PDCC declined 5.65%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 17 | Q4 2025 earnings | Negative | -5.0% | NAV drop and widened GAAP net loss with solid CLO cash flows. |
| Nov 18 | Q3 2025 earnings | Neutral | +1.1% | Lower NAV and GAAP loss offset by strong recurring CLO cash flows. |
| Aug 26 | Q2 2025 earnings | Positive | +3.8% | Positive GAAP net income and steady NII despite modest NAV slippage. |
| Apr 29 | Q1 2025 earnings | Neutral | +0.8% | Mixed quarter with NAV decline driven by unrealized CLO losses. |
| Jan 28 | Q4 2024 earnings | Positive | +0.9% | Stable NAV near $19.89 and solid NII with modest unrealized gains. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings reports have generally produced modest moves (average 0.32%), with one sharper selloff when NAV declines and losses accelerated.
Over the past five earnings cycles from Q4 2024 through Q4 2025, PDCC’s NAV per share has trended lower, while CLO cash flows and net investment income stayed relatively resilient. Weighted average effective yields and leverage have been managed within a narrow band. Price reactions around these earnings were usually small, except a -4.97% move on Q4 2025 results. Today’s Q1 2026 release continues the narrative of NAV pressure and portfolio de-risking alongside solid recurring CLO cash flows.
Key Terms
collateralized loan obligation financial
CLO financial
at-the-market offering financial
effective yield financial
reinvestment end dates financial
look-through basis financial
obligors financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Company to Host Conference Call and Webcast at 11:00 AM ET Today -
"We remained focused in the quarter on proactively managing our CLO portfolio to deliver long-term value for shareholders as we continue to navigate through the significantly challenging environment for CLO equity," said Indranil Basu, Chief Executive Officer of Pearl Diver Credit Company. "While spreads remain relatively tight and net asset value continued to compress, our portfolio's recurring cash flows remained solid, and we continued to opportunistically add positions that we believe offered attractive risk-adjusted returns. For June, July and August, we have declared monthly dividends of
First Quarter 2026 Highlights
- Net asset value per share of common stock was
$10.48 $14.42 - GAAP net loss for the quarter was
$22.5 million $3.28 $12.4 million $1.81 - Net investment income for the quarter was
$2.6 million $0.39 $3.4 million $0.49 - Investment income for the quarter was
$4.8 million $0.70 $5.7 million $0.86 - Expenses for the quarter were
$2.1 million $0.31 $2.5 million $0.37 - Net change in unrealized depreciation on investments was
$25.1 million $3.67 $15.7 million $2.30 - Recurring cash flows from CLO investments were
$10.4 million $1.53 $9.8 million $1.44 - Issued 34,970 shares of common stock via our at-the-market offering, for net proceeds of approximately
$0.5 million - The Company had leverage of
$39.5 million 35.0% of total assets, as of March 31, 2026, compared to leverage of$40.5 million 28.7% of total assets, as of December 31, 2025. - As of March 31, 2026:
- The weighted average effective yield of the Company's collateralized loan obligation ("CLO") portfolio, based on amortized cost, was
11.27% , compared to12.99% as of December 31, 2025. 99.9% of CLOs in the portfolio have reinvestment end dates from 2026 through 2030, resulting in upside potential as CLO managers can take advantage of market volatility to reinvest in loans at favorable prices.
- The weighted average effective yield of the Company's collateralized loan obligation ("CLO") portfolio, based on amortized cost, was
- As of March 31, 2026, on a look-through basis, and based on the most recent trustee reports received by such date:
- The Company, through its CLO investments, had indirect exposure to 1,382 unique corporate obligors and over 1,700 underlying loans, totaling
$27.2 billion - The largest look-through obligor represented
0.7% of the loans underlying the Company's CLO equity portfolio. - The top ten largest look-through obligors together represented
4.2% of the loans underlying the Company's CLO portfolio.
- The Company, through its CLO investments, had indirect exposure to 1,382 unique corporate obligors and over 1,700 underlying loans, totaling
Second Quarter 2026 Update
- Net asset value per share of common stock was
$11.17 - Recurring cash flows from CLO investments through May 15, 2026 were
$8.4 million $1.21 - Declared monthly dividends of
$0.13 - Through May 15, 2026, issued 65,658 shares of common stock via our at-the-market offering, for net proceeds of approximately
$0.7 million
Conference Call
As previously announced, Pearl Diver Credit Company Inc. will host a conference call to discuss its first quarter 2026 results today, May 19, 2026 at 11:00 a.m. Eastern Time / 4:00pm
A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed online on the website.
About Pearl Diver Credit Company Inc.
Pearl Diver Credit Company Inc. (NYSE: PDCC, PDPA) is an externally managed, non-diversified, closed-end management investment company. Its primary investment objective is to maximize its portfolio's total return, with a secondary objective of generating high current income. The Company seeks to achieve these objectives by investing primarily in equity and junior debt tranches of CLOs collateralized by portfolios of sub-investment grade, senior secured floating-rate debt issued by a large number of distinct US companies across several industry sectors. The Company is externally managed by Pearl Diver Capital LLP. For more information, visit www.pearldivercreditcompany.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the prospectus and the Company's other filings with the SEC. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Investor Contact:
PR.IR@Pearldivercap.com
US: +1 617 872 0945
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SOURCE Pearl Diver Credit Company Inc.