SLR Investment Corp. Announces Quarter Ended June 30, 2025 Financial Results
Rhea-AI Summary
SLR Investment Corp. (NASDAQ: SLRC) reported Q2 2025 financial results with net investment income of $21.6 million ($0.40 per share). The company declared a quarterly distribution of $0.41 per share payable September 26, 2025. Net asset value increased to $18.19 per share from $18.16 in the previous quarter.
The company's comprehensive investment portfolio reached $3.2 billion in fair value, with 98.3% in senior secured loans and 95.9% in first lien positions. Portfolio quality remained strong with only 0.3% non-accruals at fair value. SLRC maintained a net debt-to-equity ratio of 1.17x and had over $650 million in available capital.
Notable achievements include record ABL originations and strategic portfolio shift with over 80% in specialty finance investments. The company also completed a $50 million private offering of unsecured notes due 2028 at 5.96% interest rate.
Positive
- Net asset value increased to $18.19 per share from $18.16
- Strong portfolio quality with only 0.3% non-accruals at fair value
- Record ABL originations with over 80% of portfolio in specialty finance investments
- 98.3% of portfolio in senior secured loans, providing strong downside protection
- Over $650 million in available capital for new investments
Negative
- Net investment income decreased to $0.40 per share from $0.45 year-over-year
- Gross investment income declined to $53.9 million from $59.0 million year-over-year
- Net debt-to-equity ratio increased to 1.17x from 1.04x in previous quarter
News Market Reaction – SLRC
In the Aug 6 session, SLRC gained 3.27%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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Net Investment Income of
Stable NAV/Strong Credit Quality;
Declared Quarterly Distribution of
NEW YORK, Aug. 05, 2025 (GLOBE NEWSWIRE) -- SLR Investment Corp. (NASDAQ: SLRC) (the “Company”, “SLRC”, “we”, “us”, or “our”) today reported net investment income (“NII”) of
As of June 30, 2025, net asset value (“NAV”) was
“We are pleased to report that our specialty finance businesses have continued to expand their pipelines in what has been a challenging investment environment for private credit more broadly. Our record ABL originations for the second quarter furthered our strategic goal of shifting the portfolio mix to predominantly specialty finance investments. Today, over
“As a result of our focus on first lien senior secured specialty finance and non-cyclical sponsor finance industries, the credit quality of SLRC’s portfolio remains solid,” said Michael Gross, Co-CEO of SLR Investment Corp. “Our non-accrual rate, PIK from amendments, and watchlist percent of fair value are all low on an absolute and relative-to-our-peer-group basis. We believe our stable portfolio provides us with the foundation to continue to support our expansion in specialty finance and provides our investors with differentiated private credit exposure.”
FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED JUNE 30, 2025:
At June 30, 2025:
Investment Portfolio fair value:
Non-accruals:
Net assets:
Leverage: 1.17x net debt-to-equity
Operating Results for the Quarter Ended June 30, 2025:
Net investment income:
Net realized and unrealized gains:
Net increase in net assets from operations:
Comprehensive Investment Portfolio Activity(2) for the Quarter Ended June 30, 2025:
Investments made:
Investments prepaid and sold:
(1) The Comprehensive Investment Portfolio for the quarter ended June 30, 2025 is comprised of SLRC’s investment portfolio and SLR Credit Solutions’ (“SLR-CS”) portfolio, SLR Equipment Finance’s (“SLR-EF”) portfolio, Kingsbridge Holdings, LLC’s (“KBH”) portfolio, SLR Business Credit’s (“SLR-BC”) portfolio, SLR Healthcare ABL’s (“SLR-HC ABL”) portfolio owned by the Company (collectively, the Company’s “Commercial Finance Portfolio Companies”), and the senior secured loans held by the SLR Senior Lending Program LLC (“SSLP”) attributable to the Company, and excludes the Company’s fair value of the equity interests in SSLP and the Commercial Finance Portfolio Companies and also excludes SLRC’s loans to KBH, SLR-EF, and SLR HC ABL.
(2) Comprehensive Investment Portfolio activity for the quarter ended June 30, 2025, includes investment activity of the Commercial Finance Portfolio Companies and SSLP attributable to the Company.
Comprehensive Investment Portfolio
Portfolio Activity
During the three months ended June 30, 2025, SLRC had Comprehensive Investment Portfolio originations of
| For the Quarter Ended June 30, 2025 ($mm) | |||||
| Asset Class | Sponsor Finance(1) | Asset-based Lending(2) | Equipment Finance(3) | Life Science Finance | Total Comprehensive Investment Portfolio Activity |
| Originations | |||||
| Repayments / Amortization | |||||
| Net Portfolio Activity | ($44.7) | $225.6 | ($28.6) | $27.8 | $180.1 |
(1) Sponsor Finance refers to cash flow loans to sponsor-owned companies including cash flow loans held in SSLP attributable to the Company.
(2) Includes SLR-CS, SLR-BC and SLR-HC ABL’s portfolios, as well as asset-based loans on the Company’s balance sheet.
(3) Includes SLR-EF’s portfolio and equipment financings on the Company’s balance sheet and Kingsbridge Holdings’ (KBH) portfolio.
Comprehensive Investment Portfolio Composition
The Comprehensive Investment Portfolio is diversified across approximately 940 unique issuers, operating in over 110 industries, and resulting in an average exposure of
SLRC’s Comprehensive Investment Portfolio composition by asset class as of June 30, 2025 was as follows:
| Comprehensive Investment Portfolio Composition (at fair value) | Amount | Weighted Average Asset Yield(5) | |
| ($mm) | % | ||
| Senior Secured Investments | |||
| Cash Flow Loans (Sponsor Finance)(1) | |||
| Asset-Based Loans(2) | |||
| Equipment Financings(3) | |||
| Life Science Loans | |||
| Total Senior Secured Investments | $3,184.6 | 98.3% | 12.2% |
| Equity and Equity-like Securities | |||
| Total Comprehensive Investment Portfolio | $3,239.4 | 100.0% | |
| Floating Rate Investments(4) | |||
| First Lien Senior Secured Loans | |||
| Second Lien Senior Secured Asset-Based Loans | |||
| Second Lien Senior Secured Cash Flow Loans | |||
(1) Includes cash flow loans held in the SSLP attributable to the Company and excludes the Company’s equity investment in SSLP.
(2) Includes SLR-CS, SLR-BC, and SLR-HC ABL’s portfolios, as well as asset-based loans on the Company’s balance sheet, and excludes the Company’s equity investments in each of SLR-CS, SLR-BC, and SLR-HC ABL.
(3) Includes SLR-EF’s portfolio and equipment financings on the Company’s balance sheet and Kingsbridge Holdings’ (KBH) portfolio. Excludes the Company’s equity and debt investments in each of SLR-EF and KBH.
(4) Floating rate investments are calculated as a percent of the Company’s income-producing Comprehensive Investment Portfolio. The majority of fixed rate loans are associated with SLR-EF and leases held by KBH. Additionally, SLR-EF and KBH seek to match-fund their fixed rate assets with fixed rate liabilities.
(5) The weighted average asset yield for income producing cash flow, asset-based and life science loans on balance sheet is based on a yield to maturity calculation. The weighted average asset yield calculation for Life Science loans includes the amortization of expected exit/success fees. The weighted average yield for on-balance sheet equipment financings is calculated based on the expected average life of the investments. The weighted average asset yield for SLR-CS asset-based loans is an Internal Rate of Return (IRR) calculated using actual cash flows received and the expected terminal value. The weighted average asset yield for SLR-BC and SLR-HC ABL represents total interest and fee income for the three-month period ended on June 30, 2025 against the average portfolio over the same fiscal period, annualized. The weighted average asset yield for SLR-EF represents total interest and fee income for the three-month period ended on June 30, 2025, annualized. The weighted average yield for the KBH equipment leasing portfolio represents the blended yield from the company’s 1st lien loan on par value and the annualized dividend yield on the cost basis of the company’s equity investment as of June 30, 2025.
SLR Investment Corp. Portfolio
Asset Quality
As of June 30, 2025,
The Company puts its largest emphasis on risk control and credit performance. On a quarterly basis, or more frequently if deemed necessary, the Company formally rates each portfolio investment on a scale of one to four, with one representing the least amount of risk.
As of June 30, 2025, the composition of our investment portfolio, on a risk ratings basis, was as follows:
| Internal Investment Rating | Investments at Fair Value ($mm) | % of Total Portfolio |
| 1 | ||
| 2 | ||
| 3 | ||
| 4 | ||
Investment Income Contribution by Asset Class
| Investment Income Contribution by Asset Class(1) ($mm) | |||||
| For the Quarter Ended: | Sponsor Finance | Asset-based Lending | Equipment Finance | Life Science Finance | Total |
| 6/30/2025 | $53.9 | ||||
| % Contribution | 100.0% | ||||
(1) Investment Income Contribution by Asset Class includes: interest income/fees from Sponsor Finance (cash flow) loans on balance sheet and distributions from SSLP; income/fees from asset-based loans on balance sheet and distributions from SLR-CS, SLR-BC, SLR-HC ABL; income/fees from equipment financings and distributions from SLR-EF and distributions from KBH; and income/fees from life science loans on balance sheet.
SLR Senior Lending Program LLC (SSLP)
As of June 30, 2025, the Company and its
SLR Investment Corp.’s Results of Operations Quarter Over Quarter
Investment Income
For the fiscal quarters ended June 30, 2025, and 2024, gross investment income totaled
Expenses
SLRC’s net expenses totaled
For the fiscal quarters ended June 30, 2025 and 2024,
Net Investment Income
SLRC’s net investment income totaled
Net Realized and Unrealized Gain (Loss)
Net realized and unrealized gain (loss) for the fiscal quarters ended June 30, 2025 and 2024 totaled
Net Increase in Net Assets Resulting from Operations
For the fiscal quarters ended June 30, 2025, and 2024, the Company had a net increase in net assets resulting from operations of
Capital and Liquidity
Credit Facilities
As of June 30, 2025, the Company had
Unsecured Debt
As of June 30, 2025, the Company had
The Company does not have any near-term refinancing obligations, with the next unsecured notes maturity occurring in December 2026.
Leverage
As of June 30, 2025, the Company’s net debt-to-equity ratio was 1.17x compared to 1.03x at December 31, 2024 and 1.04x at March 31, 2025. The Company’s target range is 0.9x to 1.25x net debt-to-equity.
Available Capital
As of June 30, 2025, including anticipated available borrowing capacity at the SSLP and our specialty finance portfolio companies, subject to borrowing base limits, SLRC, SSLP and our specialty finance portfolio companies had over
Unfunded Commitments
As of June 30, 2025, excluding commitments of
Subsequent Events
On July 30, 2025, the Company closed a private offering of
On August 5, 2025, the Board declared a quarterly distribution of
Conference Call and Webcast Information
The Company will host an earnings conference call and audio webcast at 10:00 a.m. (Eastern Time) on Wednesday, August 6, 2025. All interested parties may participate in the conference call by dialing (800) 245-3047 approximately 5-10 minutes prior to the call, international callers should dial (203) 518-9765. Participants should reference SLR Investment Corp. and Conference ID: SLRC2Q25. A telephone replay will be available until August 20, 2025 and can be accessed by dialing (800) 839-8389. International callers should dial (402) 271-9156.
This conference call will also be broadcast live over the Internet and can be accessed by all interested parties from the Event Calendar within the “Investors” tab of SLR Investment Corp.’s website at https://slrinvestmentcorp.com/Investors/Event-Calendar. Please register online prior to the start of the call. For those who are not able to listen to the broadcast live, a replay of the webcast will be available soon after the call.
| SLR INVESTMENT CORP. | |||||||
| CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES | |||||||
| (in thousands, except share and per share amounts) | |||||||
| June 30, 2025 (unaudited) | December 31, 2024 | ||||||
| Assets | |||||||
| Investments at fair value: | |||||||
| Companies less than | $ | 1,146,050 | $ | 1,027,457 | |||
| Companies | 91,015 | 89,945 | |||||
| Companies more than | 897,873 | 888,232 | |||||
| Cash | 23,877 | 16,761 | |||||
| Cash equivalents (cost: | 348,904 | 397,510 | |||||
| Dividends receivable | 17,800 | 15,375 | |||||
| Interest receivable | 10,463 | 11,993 | |||||
| Receivable for investments sold | 101 | 1,573 | |||||
| Prepaid expenses and other assets | 1,189 | 571 | |||||
| Total assets | $ | 2,537,272 | $ | 2,449,417 | |||
| Liabilities | |||||||
| Debt ( | $ | 1,173,149 | $ | 1,031,694 | |||
| Payable for cash equivalents purchased | 348,904 | 397,510 | |||||
| Management fee payable | 7,760 | 7,739 | |||||
| Performance-based incentive fee payable | 5,377 | 5,920 | |||||
| Interest payable | 6,502 | 7,836 | |||||
| Administrative services payable | 301 | 3,332 | |||||
| Other liabilities and accrued expenses | 2,930 | 2,460 | |||||
| Total liabilities | $ | 1,544,923 | $ | 1,456,491 | |||
| Commitments and contingencies | |||||||
| Net Assets | |||||||
| Common stock, par value | $ | 546 | $ | 546 | |||
| Paid-in capital in excess of par | 1,117,606 | 1,117,606 | |||||
| Accumulated distributable net loss | (125,803 | ) | (125,226 | ) | |||
| Total net assets | $ | 992,349 | $ | 992,926 | |||
| Net Asset Value Per Share | $ | 18.19 | $ | 18.20 | |||
| SLR INVESTMENT CORP. | |||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| (in thousands, except per share amounts) | |||||||
| Three months ended | |||||||
| June 30, 2025 | June 30, 2024 | ||||||
| INVESTMENT INCOME: | |||||||
| Interest: | |||||||
| Companies less than | $ | 29,162 | $ | 40,015 | |||
| Companies | 1,243 | 856 | |||||
| Companies more than | 3,187 | 3,306 | |||||
| Dividends: | |||||||
| Companies | 786 | — | |||||
| Companies more than | 17,800 | 12,482 | |||||
| Other income: | |||||||
| Companies less than | 1,626 | 2,184 | |||||
| Companies more than | 109 | 135 | |||||
| Total investment income | 53,913 | 58,978 | |||||
| EXPENSES: | |||||||
| Management fees | 7,760 | 7,875 | |||||
| Performance-based incentive fees | 5,397 | 6,068 | |||||
| Interest and other credit facility expenses | 16,742 | 18,179 | |||||
| Administrative services expense | 1,503 | 1,376 | |||||
| Other general and administrative expenses | 922 | 1,206 | |||||
| Total expenses | 32,324 | 34,704 | |||||
| Performance-based incentive fees waived | (20 | ) | (44 | ) | |||
| Net expenses | 32,304 | 34,660 | |||||
| Net investment income | $ | 21,609 | $ | 24,318 | |||
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND CASH EQUIVALENTS: | |||||||
| Net realized gain on investments and cash equivalents (companies less than | $ | 235 | $ | 105 | |||
| Net change in unrealized gain (loss) on investments and cash equivalents: | |||||||
| Companies less than | 1,401 | 63 | |||||
| Companies | 83 | — | |||||
| Companies more than | 904 | (1,258 | ) | ||||
| Net change in unrealized gain (loss) on investments and cash equivalents | 2,388 | (1,195 | ) | ||||
| Net realized and unrealized gain (loss) on investments and cash equivalents | 2,623 | (1,090 | ) | ||||
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 24,232 | $ | 23,228 | |||
| EARNINGS PER SHARE | $ | 0.44 | $ | 0.43 | |||
About SLR Investment Corp.
SLR Investment Corp. is a closed-end investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. A specialty finance company with expertise in several niche markets, the Company primarily invests in leveraged, U.S. upper middle market companies in the form of cash flow, asset-based, and life sciences senior secured loans.
Forward-Looking Statements
Some of the statements in this press release constitute forward-looking statements because they relate to future events, future performance or financial condition. The forward-looking statements may include statements as to: the Company’s access to deal flow and its ability to take advantage of attractive investment opportunities; the market environment and its impact on the business prospects of SLRC and the prospects of SLRC’s portfolio companies; prospects for growth of SLRC’s investment pipeline; the quality of, and the impact on the performance of SLRC from the investments that SLRC has made and expects to make; and the anticipated availability of capital. In addition, words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this press release involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with: (i) changes or potential disruptions in SLRC’s operations, the economy, financial markets and political environment, including those caused by tariffs and trade disputes with other countries, inflation and changing interest rates; (ii) risks associated with possible disruption in the operations of SLRC or the economy generally due to terrorism, war or other geopolitical conflicts, natural disasters, pandemics or cybersecurity incidents; (iii) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); (iv) conditions in SLRC’s operating areas, particularly with respect to business development companies or regulated investment companies; and (v) other considerations that may be disclosed from time to time in SLRC’s publicly disseminated documents and filings. SLRC has based the forward-looking statements included in this press release on information available to it on the date of this press release, and SLRC assumes no obligation to update any such forward-looking statements. Although SLRC undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that it may make directly to you or through reports that SLRC in the future may file with the Securities and Exchange Commission, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
Contact
SLR Investment Corp.
Investor Relations
slrinvestorrelations@slrcp.com | (646) 308-8770
