Pearl Diver Credit Company Inc. Announces Fourth Quarter 2025 Financial Results

Rhea-AI Summary

Pearl Diver Credit Company (NYSE: PDCC) reported fourth-quarter 2025 results on Feb 17, 2026. NAV per share was $14.42 at Dec 31, 2025, down from $16.89 at Sept 30. GAAP net loss was $12.4M ($1.81/share); net investment income was $3.4M ($0.49/share).

Recurring CLO cash flows rose sequentially to $9.8M ($1.44/share). Leverage was $40.5M (28.7% of assets). Company declared monthly dividends of $0.22 for Feb–May 2026 and held an earnings call Feb 17, 2026.

Positive

• Recurring CLO cash flows increased to $9.8M in Q4 2025
• Net investment income improved sequentially to $3.4M
• Declared monthly dividends of $0.22 for Feb–May 2026

Negative

• Net asset value per share declined to $14.42 from $16.89
• GAAP net loss of $12.4M in Q4 2025
• Net unrealized depreciation increased by $15.7M in Q4 2025

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-  Company to Host Conference Call and Webcast at 11:00 AM ET Today -

NEW YORK and LONDON, Feb. 17, 2026 /PRNewswire/ -- Pearl Diver Credit Company Inc. (NYSE: PDCC, PDPA) (the "Company") today announced financial results for the fourth quarter ended December 31, 2025.

"While the macro environment and our net asset value remain challenged due to the further tightening of loan spreads, we were pleased to once again deliver increased sequential recurring cash flows in excess of distributions and expenses, as well as improved sequential net investment income," said Indranil Basu, Chief Executive Officer of Pearl Diver Credit Company. "Through our differentiated machine learning and data science-driven approach to CLO equity investing, we continued to be opportunistic in the quarter with respect to adding select positions that offered attractive risk-adjusted returns. As we progress through 2026, we believe we remain well positioned to continue executing on our CLO equity investment strategy in order to create additional value for our shareholders."

Fourth Quarter 2025 Highlights

• Net asset value per share of common stock was $14.42 as of December 31, 2025, compared to $16.89 per share as of September 30, 2025.
• GAAP net loss for the quarter was $12.4 million, or $1.81 per share, compared to $4.3 million, or $0.64 per share in the preceding quarter.
• Net investment income for the quarter was $3.4 million, or $0.49 per share, compared to $3.0 million, or $0.44 per share in the preceding quarter.
• Investment income for the quarter was $5.7 million, or $0.86 per share, compared to $5.4 million, or $0.80 per share in the prior quarter.
• Expenses for the quarter were $2.5 million, or $0.37 per share, compared to $2.4 million, or $0.35 per share in the preceding quarter.
• Net change in unrealized depreciation on investments was $15.7 million, or $2.30 per share, compared to $6.9 million, or $1.02 per share, in the preceding quarter.
• Recurring cash flows from CLO investments for the quarter ended December 31, 2025 were $9.8 million, or $1.44 per share, compared to $8.7 million, or $1.28 per share in the preceding quarter.
• Issued 30,680 shares of common stock via our at-the-market offering, for net proceeds of approximately $0.5 million.
• The Company had leverage of $40.5 million, or 28.7% of total assets as of December 31, 2025. As of September 30, 2025, leverage was $40.4 million, or 25.7% of total assets.
• As of December 31, 2025:
  • The weighted average effective yield of the Company's collateralized loan obligation ("CLO") portfolio, based on amortized cost, was 12.99%, compared to 13.07% as of September 30, 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.
• As of December 31, 2025, 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 approximately 1,279 unique corporate obligors and over 1,600 underlying loans, totaling $27.3 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 4.5% of the loans underlying the Company's CLO portfolio.

First Quarter 2026 Update

• Recurring cash flows from CLO investments through February 13, 2026 were $9.5 million, or $1.39 per share.
• Declared monthly dividends of $0.22 per share of common stock for February, March, April, and May 2026.
• Through February 13, 2026, issued 31,655 shares of common stock via our at-the-market offering, for net proceeds of approximately $0.4 million.

Conference Call
As previously announced, Pearl Diver Credit Company Inc. will host a conference call to discuss its fourth quarter 2025 results today, February 17, 2026 at 11:00 a.m. Eastern Time / 4:00pm UK time. The conference call can be accessed by dialing 1-877-407-9208 (US callers) or 1-201-493-6784 (international callers) and asking for the Pearl Diver Credit Company Inc. Fourth Quarter 2025 Earnings Call. A live audio webcast of the conference call will be available on the website at https://pearldivercreditcompany.com/.

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
UK: +44 (0)20 3967 8032
US: +1 617 872 0945

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SOURCE Pearl Diver Credit Company Inc.

FAQ

What was Pearl Diver Credit Company (PDCC) net asset value per share at December 31, 2025?

The NAV per share was $14.42 as of Dec 31, 2025. According to the company, this compares to $16.89 at Sept 30, 2025, reflecting mark-to-market declines tied to loan spread tightening and unrealized depreciation.

How did PDCC perform on GAAP earnings in the fourth quarter of 2025?

PDCC reported a GAAP net loss of $12.4 million in Q4 2025. According to the company, the loss equates to $1.81 per share and was driven by increased unrealized depreciation versus the prior quarter.

What were PDCC's recurring cash flows from CLO investments in Q4 2025 and early 2026?

Recurring CLO cash flows were $9.8 million for Q4 2025 and $9.5 million through Feb 13, 2026. According to the company, flows increased sequentially and supported distributions and expenses.

Did PDCC declare dividends for 2026 and what are the amounts and timing?

PDCC declared monthly dividends of $0.22 per share for February, March, April, and May 2026. According to the company, these dividends were announced alongside the Q4 2025 results and Q1 2026 update.

What is PDCC's leverage and CLO yield profile as of December 31, 2025?

Leverage was reported at $40.5 million, equal to 28.7% of total assets, and the weighted average effective CLO yield was 12.99%. According to the company, most CLOs have reinvestment periods through 2026–2030.