PhenixFIN Corporation Announces Fiscal Third Quarter 2025 Financial Results

Rhea-AI Summary

PhenixFIN Corporation (NASDAQ: PFX), a business development company, reported its fiscal Q3 2025 results with total investment income of $6.2 million and net investment income of $1.2 million. The company's NAV stood at $157 million ($78.20 per share) as of June 30, 2025.

The company amended its credit facility to $100 million with a $50 million accordion, reducing pricing to SOFR+2.50% and extending maturity to April 2030. The investment portfolio, valued at $294.4 million, comprised 34 portfolio companies with a weighted average yield of 12.66% on debt investments.

Positive

• Credit facility amended with improved terms: $100M facility, reduced pricing, and extended maturity to 2030
• Strong weighted average yield of 12.66% on debt investments
• Portfolio diversification across 34 companies
• Successful monetization of legacy investments

Negative

• Net realized loss of $12.0 million in Q3
• High debt levels with $59.2M in unsecured notes and $87.0M credit facility outstanding
• Total expenses of $5.0M against $6.2M investment income indicating high cost structure

Insights

Financial Analyst

PhenixFIN reported mixed Q3 results with solid $6.2M income but concerning $12M realized loss despite management's positive outlook.

PhenixFIN delivered total investment income of $6.2 million for Q3 2025, with net investment income of $1.2 million. The company maintains a Net Asset Value (NAV) of $157 million, translating to $78.20 per share as of June 30. While these figures demonstrate stable income generation, the substantial net realized loss of $12 million partially offset by a net unrealized gain of $9.3 million warrants closer examination.

The business development company's portfolio yield stands at 12.66% on debt and income-producing investments, indicating relatively high-yield assets in their portfolio. This above-market yield reflects the higher risk profile typical of BDC lending. Their investment portfolio is valued at $294.4 million across 34 portfolio companies, showing moderate diversification.

On the liability side, PhenixFIN has strategically improved its debt structure by amending its credit facility to $100 million with a $50 million accordion feature while reducing pricing to SOFR+2.50% and extending maturity to April 2030. This provides significant operational flexibility while lowering borrowing costs. Currently, they've drawn $87 million of this facility alongside $59.2 million in unsecured notes due 2028, with only $7.3 million in cash and equivalents. The high utilization of available debt coupled with minimal cash reserves suggests limited near-term investment capacity without raising additional capital.

Management's comments about "solid performance" despite "volatile macro environment" seem somewhat disconnected from the $12 million realized loss, though they did note the successful monetization of a legacy investment, suggesting potential portfolio cleanup activities.

NEW YORK, Aug. 06, 2025 (GLOBE NEWSWIRE) -- PhenixFIN Corporation (NASDAQ: PFX, PFXNZ) (the “Company”), a publicly traded business development company, today announced its financial results for the fiscal third quarter for its year ending September 30, 2025.

Highlights:

• Third quarter total investment income of $6.2 million; net investment income of $1.2 million
• Net asset value (NAV) of $157 million, or $78.20 per share as of June 30, 2025
• On April 17, 2025, amended the credit facility to $100mm with a $50mm accordion, reduction in pricing to SOFR+2.50% and extended maturity to April 17, 2030
• Weighted average yield was 12.66% on debt and other income producing investments

“We continue to see solid performance from the portfolio despite a more volatile macro environment.” commented David Lorber, Chief Executive Officer, “We had a strong origination quarter as we continue to source attractive investment opportunities, we also had multiple portfolio companies repay and monetized one of our last remaining legacy investments.”

Selected Third Quarter 2025 Financial Results for the Quarter Ended June 30, 2025:

Total investment income was $6.2 million of which $5.5 million was attributable to portfolio interest and dividend income, and $0.7 million was attributable to fee and other income.

Total net expenses were $5.0 million and total net investment income was $1.2 million.

The Company recorded a net realized loss of $12.0 million and a net unrealized gain of $9.3 million.

Portfolio and Investment Activities for the Quarter Ended June 30, 2025:

The fair value of the Company's investment portfolio totaled $294.4 million and consisted of 34 portfolio companies.

Liquidity and Capital Resources:

As of June 30, 2025, the Company had $7.3 million in cash and cash equivalents, $59.2 million in aggregate principal amount of its 5.25% unsecured notes due 2028 and $87.0 million outstanding under the Credit Facility.

ABOUT PHENIXFIN CORPORATION

PhenixFIN Corporation is a non-diversified, internally managed closed-end management investment company incorporated in Delaware that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. We completed our initial public offering and commenced operations on January 20, 2011. The Company has elected, and intends to qualify annually, to be treated, for U.S. federal income tax purposes, as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Effective January 1, 2021, the Company operates under an internalized management structure.

 SAFE HARBOR STATEMENT AND OTHER DISCLOSURES

This press release contains “forward-looking” statements. Such forward-looking statements reflect current views with respect to future events and financial performance, and the Company may make related oral forward-looking statements on or following the date hereof. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, including among other things, PhenixFIN’s ability to execute on its strategic initiatives, deliver value to shareholders, increase investment activity, increase net investment income, reduce interest expenses, implement its investment strategy and achieve its investment objective, source and capitalize on investment opportunities, grow its net asset value per share and perform well in the prevailing market environment, the ability of our portfolio companies, including National Security Group, Inc. to perform well and generate income and other factors that are enumerated in the Company’s periodic filings with the Securities and Exchange Commission. PhenixFIN Corporation disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release.

Past performance is not a guarantee of future results. The press release contains unaudited financial results. For ease of review, we have excluded the word "approximately" when rounding the results. This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to sell shares of PhenixFIN Corporation’s common stock. There can be no assurance that PhenixFIN Corporation will achieve its investment objective. 

For PhenixFIN investor relations, please call 212-859-0390. For media inquiries, please contact info@phenixfc.com.

PHENIXFIN CORPORATION Consolidated Statements of Assets and Liabilities
		June 30, 2025 (Unaudited)				September 30, 2024
Assets:
Investments at fair value
Non-controlled, non-affiliated investments (amortized cost of $158,364,341 and $143,179,354 respectively)		$	159,391,606			$	142,233,426
Affiliated investments (amortized cost of $10,008,289 and $20,564,242, respectively)			11,592,334				14,750,785
Controlled investments (amortized cost of $150,432,462 and $97,016,429, respectively)			123,454,891				70,931,647
Total Investments at fair value			294,438,831				227,915,858
Cash and cash equivalents			7,270,519				67,571,559
Receivables:
Interest receivable			1,135,646				1,313,598
Other receivable			16,640				65,838
Dividends receivable			-				23,468
Deferred financing costs			1,458,777				760,680
Due from Affiliate			1,101,599				90,500
Deferred tax asset, net			953,505				887,099
Other assets			298,155				1,066,323
Prepaid share repurchase			101,115				101,115
Receivable for investments sold			35,445				2,955,775
Total Assets		$	306,810,232			$	302,751,813
Liabilities:
Credit facility and notes payable (net of debt issuance costs of $1,234,485 and $1,510,815, respectively)		$	144,918,632			$	135,723,636
Accounts payable and accrued expenses			3,300,818				5,570,150
Interest and fees payable			1,213,024				768,043
Other liabilities			190,743				294,063
Deferred tax liability, net			340,531				-
Due to Affiliate			152,365				88,148
Total Liabilities			150,116,113				142,444,040
Commitments and Contingencies (see Note 8)
Net Assets:
Common Shares, $0.001 par value; 5,000,000 shares authorized; 2,723,709 shares issued; 2,003,869 and 2,019,778 common shares outstanding, respectively			2,004				2,020
Capital in excess of par value			704,113,672				704,909,588
Total distributable earnings (loss)			(547,421,557	)			(544,603,835	)
Total Net Assets			156,694,119				160,307,773
Total Liabilities and Net Assets		$	306,810,232			$	302,751,813
Net Asset Value Per Common Share		$	78.20			$	79.37

PHENIXFIN CORPORATION Consolidated Statements of Operations (Unaudited)
		For the Three Months Ended June 30,								For the Nine Months Ended June 30,
		2025				2024				2025				2024
Interest Income:
Interest from investments
Non-controlled, non-affiliated investments:
Cash		$	3,758,928			$	2,971,965			$	9,708,993			$	7,605,006
Payment in-kind			213,590				231,113				832,055				412,317
Affiliated investments:
Cash			-				10,682				-				742,858
Controlled investments:
Cash			607,929				650,244				1,822,914				1,230,510
Payment in-kind			-				334,398				-				603,229
Total interest income			4,580,447				4,198,402				12,363,962				10,593,920
Dividend income
Non-controlled, non-affiliated investments			247,322				531,151				1,221,852				1,963,744
Affiliated investments			-				-				254,231				-
Controlled investments			617,056				982,903				3,597,022				3,216,298
Total dividend income			864,378				1,514,054				5,073,105				5,180,042
Interest from cash and cash equivalents			27,804				147,127				132,557				387,501
Fee income (see Note 9)			684,330				375,363				822,841				453,988
Other income			-				-				-				22
Total Investment Income			6,156,959				6,234,946				18,392,465				16,615,473
Expenses:
Interest and financing expenses			2,660,472				1,721,767				7,785,246				4,831,180
Salaries and benefits			1,237,767				1,514,872				3,451,438				4,464,372
Professional fees, net			304,540				432,416				1,300,518				1,133,120
General and administrative expenses			398,494				226,903				928,026				862,740
Directors fees			204,000				187,500				612,000				562,500
Administrator expenses (see Note 6)			106,740				75,351				303,924				210,753
Insurance expenses			87,460				95,983				262,379				290,433
Total expenses			4,999,473				4,254,792				14,643,531				12,355,098
Net Investment Income			1,157,486				1,980,154				3,748,934				4,260,375
Realized and unrealized gains (losses) on investments
Net realized gains (losses):
Non-controlled, non-affiliated investments			(1,665,458	)			155,419				(1,561,801	)			585,977
Affiliated investments			(10,320,353	)			-				(10,320,353	)			(1,991,456	)
Controlled investments			-				8,542,831				-				8,542,831
Total net realized gains (losses)			(11,985,811	)			8,698,250				(11,882,154	)			7,137,352
Net change in unrealized gains (losses):
Non-controlled, non-affiliated investments			(18,517	)			1,823,185				1,973,193				4,984,195
Affiliated investments			8,379,055				73,960				7,397,502				4,787,878
Controlled investments			914,813				(9,966,938	)			(892,789	)			(8,655,048	)
Total net change in unrealized gains (losses)			9,275,351				(8,069,793	)			8,477,906				1,117,025
Deferred tax benefit (expense)			55,511				-				(274,125	)			-
Total realized and unrealized gains (losses)			(2,654,949	)			628,457				(3,678,373	)			8,254,377
Net Increase (Decrease) in Net Assets Resulting from Operations		$	(1,497,463	)		$	2,608,611			$	70,561			$	12,514,752
Weighted average basic and diluted earnings per common share		$	(0.74	)		$	1.29			$	0.03			$	6.11
Weighted average common shares outstanding - basic and diluted (see Note 11)			2,017,330				2,019,786				2,018,962				2,047,127

FAQ

What was PhenixFIN's (PFX) net investment income for Q3 2025?

PhenixFIN reported net investment income of $1.2 million for the fiscal third quarter 2025.

What is PhenixFIN's (PFX) current NAV per share?

PhenixFIN's NAV per share was $78.20 as of June 30, 2025.

How many portfolio companies does PhenixFIN (PFX) currently have?

PhenixFIN's investment portfolio consisted of 34 portfolio companies with a total fair value of $294.4 million.

What are the terms of PhenixFIN's (PFX) amended credit facility?

The amended credit facility includes $100 million with a $50 million accordion, pricing at SOFR+2.50%, and maturity extended to April 17, 2030.

What is PhenixFIN's (PFX) weighted average yield on investments?

PhenixFIN reported a weighted average yield of 12.66% on debt and other income producing investments.