Fidus Investment Q3 net investment income rises 21.7%
Fourth-quarter dividends total $0.54 per share, payable December 29 to stockholders of record December 18.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Fidus Investment Corporation reported third-quarter 2026 total investment income of $45.9 million, up 23.2% year over year, and net investment income of $21.1 million, up 21.7%. Adjusted net investment income was $21.0 million, or $0.54 per share, compared with $17.7 million, or $0.50 per share, a year earlier. Net realized losses on investments were $10.9 million, versus $0.9 million.
As of September 30, 2026, the investment portfolio had a fair value of $1.4 billion; $909.8 million, or 71.3% of debt investments by fair value, bore variable rates. Cash and cash equivalents were $31.2 million, and unused SPV Credit Facility capacity was $132.8 million. The weighted average yield on debt investments was 12.6%.
The board declared fourth-quarter dividends of $0.54 per share: $0.43 base and $0.11 supplemental, payable December 29, 2026, to holders of record December 18. After quarter-end, Fidus invested $25.0 million in first-lien debt and $1.0 million in common equity in CasePoint Solutions on October 30, and $17.6 million in first-lien debt in SnugZ/USA on November 4; it received $22.5 million upon repayment of Green Cubes first-lien debt on November 2.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet investment income rose 21.7% to $21.1 million in third-quarter 2026.
Negative
- None.
Filing Explained
The higher share count reduces unchanged holders’ ownership percentages; Fidus also issued eight million dollars of SBA debentures after quarter-end.
For the third quarter, Fidus reports
For the declared fourth-quarter dividend, dividends are automatically reinvested in additional common shares for holders who have not opted out at least two days before payment; holders using a broker or intermediary must notify it to receive cash.
After quarter-end, Fidus issued
8-K Event Classification
Key Figures
Key Terms
Adjusted net investment income financial
Payment-in-kind interest income financial
Spillover income financial
Weighted average yield financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much net investment income did FDUS report for the third quarter of 2026?
What dividend did FDUS declare for the fourth quarter of 2026?
How much of FDUS's debt investment portfolio had variable rates?
What investments and repayment did FDUS report after September 30, 2026?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): |
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(Exact name of registrant as specified in its charter)
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______________ |
of incorporation) |
File Number) |
Identification No.) |
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_________________________________ |
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___________ |
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Registrant’s telephone number, including area code: |
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Not Applicable
______________________________________________
Former name or former address, if changed since last report
________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On November 5, 2026, Fidus Investment Corporation (the "Company") issued a press release announcing its financial results for the quarter ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information disclosed under this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any filing made by the Company under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 7.01. |
Regulation FD Disclosure. |
The Company issued a press release, filed herewith as Exhibit 99.1, on November 5, 2026 announcing the declaration of a base dividend of $0.43 per share and a supplemental dividend of $0.11 per share, which are payable on December 29, 2026, to stockholders of record as of December 18, 2026.
The information disclosed under this Item 7.01, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any filing made under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
The following Exhibit 99.1 is being furnished herewith to this Current Report on Form 8-K:
Exhibit
No. Description
99.1 Press Release dated November 5, 2026 of Fidus Investment Corporation
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: November 5, 2026 Fidus Investment Corporation
By: /s/ Shelby E. Sherard
Shelby E. Sherard
Chief Financial Officer and Secretary
Exhibit 99.1
FIDUS INVESTMENT CORPORATION ANNOUNCES
Third QUARTER 2026 FINANCIAL RESULTS
Board of Directors Declared Total Dividends of $0.54 per Share for Fourth Quarter 2026
Base Dividend of $0.43 and Supplemental Dividend of $0.11 Per Share
EVANSTON, Ill., November 5, 2026 – Fidus Investment Corporation (NASDAQ:FDUS) (“Fidus” or the “Company”), a provider of customized debt and equity financing solutions, primarily to lower middle-market companies based in the United States, today announced its financial results for the third quarter ended September 30, 2026.
Third Quarter 2026 Financial Highlights
Management Commentary
“In the third quarter, our high performing debt portfolio generated adjusted net investment income of $0.54, which represented 18% year over year growth driven by a 27% increase in interest income, and continued to amply cover our base dividend. With originations roughly equal to repayments and realizations, our portfolio remains well diversified and healthy from a credit quality perspective,” said Edward Ross, Chairman and CEO of Fidus Investment Corporation. “Looking ahead, we intend to continue to carefully select high quality companies that possess both defensive characteristics and positive outlooks for growth. Our proven investment strategy has served us well and positions Fidus to continue to deliver attractive risk-adjusted returns for our shareholders.”
On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The management agreement with our investment adviser provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Reconciliations of net investment income to adjusted net investment income are set forth in Schedule 1.
Third Quarter 2026 Financial Results
The following table provides a summary of our operating results for the three months ended September 30, 2026, as compared to the same period in 2025 (dollars in thousands, except per share data):
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Three Months Ended September 30, |
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2026 |
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2025 |
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$ Change |
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% Change |
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||||
Interest income |
|
$ |
39,103 |
|
|
$ |
30,815 |
|
|
$ |
8,288 |
|
|
|
26.9 |
% |
Payment-in-kind interest income |
|
|
3,126 |
|
|
|
3,185 |
|
|
|
(59 |
) |
|
|
(1.9 |
%) |
Dividend income |
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|
(78 |
) |
|
|
989 |
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|
|
(1,067 |
) |
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|
(107.9 |
%) |
Fee income |
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2,986 |
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|
|
1,322 |
|
|
|
1,664 |
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|
|
125.9 |
% |
Interest on idle funds |
|
|
776 |
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|
|
942 |
|
|
|
(166 |
) |
|
|
(17.6 |
%) |
Total investment income |
|
$ |
45,913 |
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$ |
37,253 |
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$ |
8,660 |
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23.2 |
% |
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Net investment income |
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$ |
21,139 |
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$ |
17,369 |
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$ |
3,770 |
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21.7 |
% |
Net investment income per share |
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$ |
0.54 |
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$ |
0.49 |
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$ |
0.05 |
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|
10.2 |
% |
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|
|
|
|
|
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|
|
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||||
Adjusted net investment income (1) |
|
$ |
20,977 |
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$ |
17,723 |
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$ |
3,254 |
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|
|
18.4 |
% |
Adjusted net investment income per share (1) |
|
$ |
0.54 |
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|
$ |
0.50 |
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|
$ |
0.04 |
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|
|
8.0 |
% |
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|
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Net increase (decrease) in net assets resulting from operations |
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$ |
20,327 |
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$ |
19,138 |
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$ |
1,189 |
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|
6.2 |
% |
Net increase (decrease) in net assets resulting from operations per share |
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$ |
0.52 |
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$ |
0.54 |
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$ |
(0.02 |
) |
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(3.7 |
%) |
The $8.7 million increase in total investment income for the three months ended September 30, 2026, as compared to the same period in 2025, was primarily attributable to (i) a $8.2 million increase in total interest income (which includes payment-in-kind interest income) resulting from an increase in average debt investment balances outstanding, partially offset by a decrease in weighted average yield on debt investment balances outstanding, (ii) a $1.1 million decrease in dividend income due to a decrease in distributions received from equity investments, (iii) a $1.7 million increase in fee income due to an increase in prepayment and management services fees, and (iv) a $0.2 million decrease in interest on idle funds resulting from a decrease in average cash balances outstanding.
For the three months ended September 30, 2026, total expenses, including the base management fee waiver and income tax provision, were $24.8 million, an increase of $4.9 million, or 24.6% from the $19.9 million of total expenses, including the base management fee waiver and income tax provision, for the three months ended September 30, 2025. The increase was primarily attributable to (i) a $4.0 million increase in interest and financing expenses due to an increase in weighted average borrowings outstanding and weighted average interest rates of our debt outstanding, (ii) a $1.2 million net increase in the base management fee, including the base management fee waiver, due to higher average total assets, (iii) a $0.7 million increase in the income incentive fee due to an increase in pre-incentive fee net investment income during 2026 as compared to the same period in 2025, and (iv) a $0.6 million decrease in the accrued capital gains incentive fee due to a net $2.6 million decrease in net gain on investments and realized losses on extinguishment of debt.
Net investment income increased compared with the prior period as a result of the $8.7 million increase in total investment income, offset by a $4.9 million increase in total expenses, including the base management fee waiver and income tax provision. Adjusted net investment income,(1) which excludes the capital gains incentive fee accrual, was $0.54 per share compared to $0.50 per share in the prior year.
For the three months ended September 30, 2026, the total net realized gain/(loss) on investments, net of income tax (provision)/benefit on realized gains, was $(10.9) million, as compared to total net realized gain/(loss) on investments, net of income tax (provision)/benefit on realized gains, of $(1.4) million for the same period in 2025.
Portfolio and Investment Activities
As of September 30, 2026, the fair value of our investment portfolio totaled $1.4 billion and consisted of 99 active portfolio companies and eight portfolio companies that have sold their underlying operations. Our total portfolio investments at fair value were approximately 102.8% of the related cost basis as of September 30, 2026. As of September 30, 2026, the debt investments of 57 portfolio companies bore interest at a variable rate, which represented $909.8 million, or 71.3%, of our debt investment portfolio on a fair value basis, and the remainder of our debt investment portfolio was comprised of fixed rate investments. As of September 30, 2026, our average active portfolio company investment at amortized cost was $14.1 million, which excludes investments in eight portfolio companies that have sold their underlying operations. The weighted average yield on debt investments was 12.6% as of September 30, 2026. The weighted average yield was computed using the effective interest rates for debt investments at cost as of September 30, 2026, including the accretion of original issue discounts and loan origination fees, but excluding investments on non-accrual status and investments recorded as a secured borrowing.
Liquidity and Capital Resources
As of September 30, 2026, we had $31.2 million in cash and cash equivalents, $1.5 million in restricted cash, and $132.8 million of unused capacity under our special purpose vehicle credit facility (the “SPV Credit Facility”). For the three months ended September 30, 2026, we received net proceeds of approximately $35.5 million from the at-the-market program, we received proceeds from the issuance of SBA debentures of $10.5 million, and redeemed $17.0 million of SBA debentures. As of September 30, 2026, we had SBA debentures outstanding of $289.5 million, $120.0 million outstanding of our 6.625% Senior Unsecured Notes due June 2029 (the “June 2029 Notes”), and $200.0 million outstanding of our 6.75% Notes due March 2030 (the “March 2030 Notes” and together with the June 2029 Notes, the “Notes”). As of September 30, 2026, the weighted average interest rate on total debt outstanding was 5.8%.
Fourth Quarter 2026 Dividends Totaling $0.54 Per Share Declared
On November 2, 2026, our board of directors declared a base dividend of $0.43 per share and a supplemental dividend of $0.11 per share for the fourth quarter. The dividends will be payable on December 29, 2026, to stockholders of record as of December 18, 2026.
When declaring dividends, our board of directors reviews estimates of taxable income available for distribution, which differs from consolidated income under GAAP due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of undistributed taxable income carried over from a given year for distribution in the following year. The final determination of 2026 taxable income, as well as the tax attributes for 2026 dividends, will be made after the close of the 2026 tax year. The final tax attributes for 2026 dividends will generally include ordinary taxable income but may also include capital gains, qualified dividends and return of capital.
Fidus has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of dividends on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when we declare a cash dividend, stockholders who have not “opted out” of the DRIP at least two days prior to the dividend payment date will have their cash dividends automatically reinvested in additional shares of our common stock. Those stockholders whose shares are held by a broker or other financial intermediary may receive dividends in cash by notifying their broker or other financial intermediary of their election.
Subsequent Events
As previously disclosed, on May 29, 2026, the Company issued the June 2029 Notes in a transaction not requiring registration under the Securities Act of 1933, as amended (the “Securities Act”). The June 2029 Notes were originally issued pursuant to a Note Purchase Agreement, dated May 29, 2026, by and between the Company and the initial purchasers. In connection with the issuance and sale of the June 2029 Notes, and pursuant to the registration rights agreement dated as of May 29, 2026, by and among the Company and the purchasers, the Company filed with the SEC a registration statement, and, on September 16, 2026, commenced an offer to exchange the June 2029 Notes initially issued in the private placement for a like principal amount of the June 2029 Notes registered under the Securities Act. The offer to exchange the June 2029 Notes expired on October 16, 2026 and closed on October 20, 2026.
In connection with the closing of the offer to exchange the June 2029 Notes, on October 20, 2026, the Company and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee (the “Trustee”),
entered into the Seventh Supplemental Indenture (the “Seventh Supplemental Indenture”) to the Base Indenture, dated February 2, 2018, by and between the Company and the Trustee (the “Base Indenture” and together with the Seventh Supplemental Indenture, the “Indenture”). Under the Indenture, the terms of the June 2029 Notes registered under the Securities Act are substantially identical to those of the June 2029 Notes initially issued in the private placement (except for provisions related to transfer restrictions and payment of additional interest). The June 2029 Notes mature on June 1, 2029, unless previously redeemed or repurchased in accordance with their terms. The June 2029 Notes bear interest at a rate of 6.625% per year payable semi-annually in arrears on June 1 and December 1 of each year, beginning December 1, 2026.
On October 23, 2026, we issued an additional $8.0 million in SBA debentures, which will bear interest at a fixed interim interest rate of 4.987% until the pooling date in December 2026.
On October 30, 2026, we invested $25.0 million in first lien debt and $1.0 million in common equity in CasePoint Solutions, LLC, a leading provider of outsourced court appearance services.
On November 2, 2026, we exited our first lien debt investment in Green Cubes Technology, LLC. We received payment in full of $22.5 million on our first lien debt.
On November 4, 2026, we invested $17.6 million in first lien debt in SnugZ/USA, LLC, a full-service designer, manufacturer, and decorator of promotional products.
Third Quarter 2026 Financial Results Conference Call
Management will host a conference call to discuss the operating and financial results at 9:00am ET on Friday, November 6, 2026. To participate in the conference call, please dial (844) 808-7136 approximately 10 minutes prior to the call. International callers should dial (412) 317-0534. Please ask to be joined into the Fidus Investment Corporation call.
A live webcast of the conference call will be available at http://investor.fdus.com/news-events/events-presentations. Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived replay of the conference call will also be available in the investor relations section of the Company’s website.
ABOUT FIDUS INVESTMENT CORPORATION
Fidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies, which management generally defines as U.S. based companies with revenues between $10 million and $150 million. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from debt investments and capital appreciation from equity related investments. Fidus seeks to partner with business owners, management teams and financial sponsors by providing customized financing for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.
Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. In addition, for tax purposes, Fidus has elected to be treated as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Fidus was formed in February 2011 to continue and expand the business of Fidus Mezzanine Capital, L.P., which commenced operations in May 2007 and was licensed by the U.S. Small Business Administration as a Small Business Investment Company (SBIC).
FORWARD-LOOKING STATEMENTS
This press release may contain certain forward-looking statements which are based upon current expectations and are inherently uncertain, including, but not limited to, statements about the future performance and financial condition of the Company, the prospects of our existing and prospective portfolio companies, the financial condition and ability of our existing and prospective portfolio companies to achieve their objectives, the timing, form and amount of any distributions or supplemental dividends in the future, and the level of deal activity and investment opportunities available to the Company. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control, such as changes in the financial and lending markets, the impact of the general economy (including an economic downturn or recession), the impact of current geopolitical conditions, the impact of interest rate volatility, the uncertainty associated with the imposition of tariffs and trade barriers and changes in trade policy and its impact on our portfolio companies and our financial condition, and the impact of elevated levels of inflation on the Company’s business and its portfolio companies; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future as a result of a number of factors related to changes in the markets in which the Company invests, changes in the financial, capital, and lending markets, and other factors described from time to time in the Company’s filings with the Securities and Exchange Commission. Such statements speak only as of the time when made, and are based on information available to the Company as of the date hereof and are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to update any such statement now or in the future, except as required by applicable law.
FIDUS INVESTMENT CORPORATION
Consolidated Statements of Assets and Liabilities
(in thousands, except shares and per share data)
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September 30, |
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December 31, |
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2026 |
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2025 |
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ASSETS |
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Investments, at fair value: |
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|
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||
Control investments (cost: $1,610 and $1,610, respectively) |
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$ |
|
— |
|
|
$ |
|
— |
|
Affiliate investments (cost: $95,572 and $75,208, respectively) |
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|
|
146,178 |
|
|
|
|
119,015 |
|
Non-control/non-affiliate investments (cost: $1,299,176 and $1,222,476, respectively) |
|
|
|
1,288,997 |
|
|
|
|
1,205,738 |
|
Total investments, at fair value (cost: $1,396,358 and $1,299,294, respectively) |
|
|
|
1,435,175 |
|
|
|
|
1,324,753 |
|
Cash and cash equivalents |
|
|
|
31,246 |
|
|
|
|
69,995 |
|
Restricted cash |
|
|
|
1,458 |
|
|
|
|
9,611 |
|
Interest receivable |
|
|
|
24,839 |
|
|
|
|
21,414 |
|
Proceeds receivable from investments sold |
|
|
|
11,272 |
|
|
|
|
— |
|
Prepaid expenses and other assets |
|
|
|
1,277 |
|
|
|
|
766 |
|
Total assets |
|
$ |
|
1,505,267 |
|
|
$ |
|
1,426,539 |
|
LIABILITIES |
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|
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||
SBA debentures, net of deferred financing costs |
|
$ |
|
281,849 |
|
|
$ |
|
230,557 |
|
Notes, net of deferred financing costs |
|
|
|
314,774 |
|
|
|
|
320,891 |
|
SPV Credit Facility, net of deferred financing costs |
|
|
|
89,525 |
|
|
|
|
80,627 |
|
Secured borrowings |
|
|
|
10,460 |
|
|
|
|
12,000 |
|
Accrued interest and fees payable |
|
|
|
4,597 |
|
|
|
|
7,449 |
|
Base management fee payable, net of base management fee waiver – due to affiliate |
|
|
|
6,399 |
|
|
|
|
5,596 |
|
Income incentive fee payable – due to affiliate |
|
|
|
5,027 |
|
|
|
|
4,721 |
|
Capital gains incentive fee payable – due to affiliate |
|
|
|
15,554 |
|
|
|
|
16,414 |
|
Administration fee payable and other, net – due to affiliate |
|
|
|
884 |
|
|
|
|
988 |
|
Taxes payable |
|
|
|
602 |
|
|
|
|
3,568 |
|
Accounts payable and other liabilities |
|
|
|
1,186 |
|
|
|
|
1,829 |
|
Total liabilities |
|
$ |
|
730,857 |
|
|
$ |
|
684,640 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
||
NET ASSETS |
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|
|
|
|
|
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|
||
Common stock, $0.001 par value (100,000,000 shares authorized, 39,770,605 and 37,954,364 shares |
|
|
|
|
|
|
|
|
||
issued and outstanding at September 30, 2026 and December 31, 2025, respectively) |
|
$ |
|
40 |
|
|
$ |
|
38 |
|
Additional paid-in capital |
|
|
|
676,864 |
|
|
|
|
641,376 |
|
Total distributable earnings |
|
|
|
97,506 |
|
|
|
|
100,485 |
|
Total net assets |
|
|
|
774,410 |
|
|
|
|
741,899 |
|
Total liabilities and net assets |
|
$ |
|
1,505,267 |
|
|
$ |
|
1,426,539 |
|
Net asset value per common share |
|
$ |
|
19.47 |
|
|
$ |
|
19.55 |
|
FIDUS INVESTMENT CORPORATION
Consolidated Statements of Operations (unaudited)
(in thousands, except shares and per share data)
|
|
Three Months Ended |
|
|
Nine Months Ended |
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||||||||||
|
|
September 30, |
|
|
September 30, |
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||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Control investments |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Affiliate investments |
|
|
1,931 |
|
|
|
1,090 |
|
|
|
5,081 |
|
|
|
3,258 |
|
Non-control/non-affiliate investments |
|
|
37,172 |
|
|
|
29,725 |
|
|
|
104,812 |
|
|
|
90,087 |
|
Total interest income |
|
|
39,103 |
|
|
|
30,815 |
|
|
|
109,893 |
|
|
|
93,345 |
|
Payment-in-kind interest income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Control investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Affiliate investments |
|
|
182 |
|
|
|
— |
|
|
|
182 |
|
|
|
— |
|
Non-control/non-affiliate investments |
|
|
2,944 |
|
|
|
3,185 |
|
|
|
9,495 |
|
|
|
7,884 |
|
Total payment-in-kind interest income |
|
|
3,126 |
|
|
|
3,185 |
|
|
|
9,677 |
|
|
|
7,884 |
|
Dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Control investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Affiliate investments |
|
|
— |
|
|
|
329 |
|
|
|
557 |
|
|
|
1,381 |
|
Non-control/non-affiliate investments |
|
|
(78 |
) |
|
|
660 |
|
|
|
510 |
|
|
|
1,470 |
|
Total dividend income |
|
|
(78 |
) |
|
|
989 |
|
|
|
1,067 |
|
|
|
2,851 |
|
Fee income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Control investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Affiliate investments |
|
|
32 |
|
|
|
8 |
|
|
|
56 |
|
|
|
24 |
|
Non-control/non-affiliate investments |
|
|
2,954 |
|
|
|
1,314 |
|
|
|
13,969 |
|
|
|
7,309 |
|
Total fee income |
|
|
2,986 |
|
|
|
1,322 |
|
|
|
14,025 |
|
|
|
7,333 |
|
Interest on idle funds |
|
|
776 |
|
|
|
942 |
|
|
|
2,277 |
|
|
|
2,306 |
|
Total investment income |
|
|
45,913 |
|
|
|
37,253 |
|
|
|
136,939 |
|
|
|
113,719 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and financing expenses |
|
|
11,639 |
|
|
|
7,649 |
|
|
|
32,371 |
|
|
|
22,191 |
|
Base management fee |
|
|
6,447 |
|
|
|
5,253 |
|
|
|
18,590 |
|
|
|
15,281 |
|
Incentive fee - income |
|
|
5,027 |
|
|
|
4,371 |
|
|
|
15,508 |
|
|
|
13,819 |
|
Incentive fee (reversal) - capital gains |
|
|
(162 |
) |
|
|
354 |
|
|
|
(860 |
) |
|
|
1,972 |
|
Administrative service expenses |
|
|
775 |
|
|
|
708 |
|
|
|
2,324 |
|
|
|
2,064 |
|
Professional fees |
|
|
707 |
|
|
|
713 |
|
|
|
3,684 |
|
|
|
2,959 |
|
Other general and administrative expenses |
|
|
291 |
|
|
|
494 |
|
|
|
825 |
|
|
|
921 |
|
Total expenses before base management fee waiver |
|
|
24,724 |
|
|
|
19,542 |
|
|
|
72,442 |
|
|
|
59,207 |
|
Base management fee waiver |
|
|
(48 |
) |
|
|
(57 |
) |
|
|
(149 |
) |
|
|
(175 |
) |
Total expenses, net of base management fee waiver |
|
|
24,676 |
|
|
|
19,485 |
|
|
|
72,293 |
|
|
|
59,032 |
|
Net investment income before income taxes |
|
|
21,237 |
|
|
|
17,768 |
|
|
|
64,646 |
|
|
|
54,687 |
|
Income tax provision (benefit) |
|
|
98 |
|
|
|
399 |
|
|
|
174 |
|
|
|
468 |
|
Net investment income |
|
|
21,139 |
|
|
|
17,369 |
|
|
|
64,472 |
|
|
|
54,219 |
|
Net realized and unrealized gains (losses) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net realized gains (losses): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Control investments |
|
|
— |
|
|
|
— |
|
|
|
(120 |
) |
|
|
— |
|
Affiliate investments |
|
|
— |
|
|
|
897 |
|
|
|
1,189 |
|
|
|
10,963 |
|
Non-control/non-affiliate investments |
|
|
(10,881 |
) |
|
|
(1,827 |
) |
|
|
(17,730 |
) |
|
|
(6,131 |
) |
Total net realized gain (loss) on investments |
|
|
(10,881 |
) |
|
|
(930 |
) |
|
|
(16,661 |
) |
|
|
4,832 |
|
Income tax (provision) benefit from realized gains on investments |
|
|
— |
|
|
|
(421 |
) |
|
|
(416 |
) |
|
|
(2,350 |
) |
Net change in unrealized appreciation (depreciation): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Control investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Affiliate investments |
|
|
2,363 |
|
|
|
1,634 |
|
|
|
6,799 |
|
|
|
(1,758 |
) |
Non-control/non-affiliate investments |
|
|
7,974 |
|
|
|
1,790 |
|
|
|
6,559 |
|
|
|
9,767 |
|
Total net change in unrealized appreciation (depreciation) on investments |
|
|
10,337 |
|
|
|
3,424 |
|
|
|
13,358 |
|
|
|
8,009 |
|
Net gain (loss) on investments |
|
|
(544 |
) |
|
|
2,073 |
|
|
|
(3,719 |
) |
|
|
10,491 |
|
Realized losses on extinguishment of debt |
|
|
(268 |
) |
|
|
(304 |
) |
|
|
(579 |
) |
|
|
(630 |
) |
Net increase (decrease) in net assets resulting from operations |
|
$ |
20,327 |
|
|
$ |
19,138 |
|
|
$ |
60,174 |
|
|
$ |
64,080 |
|
Per common share data: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net investment income per share-basic and diluted |
|
$ |
0.54 |
|
|
$ |
0.49 |
|
|
$ |
1.68 |
|
|
$ |
1.55 |
|
Net increase in net assets resulting from operations per share — basic and diluted |
|
$ |
0.52 |
|
|
$ |
0.54 |
|
|
$ |
1.57 |
|
|
$ |
1.83 |
|
Dividends declared per share |
|
$ |
0.50 |
|
|
$ |
0.57 |
|
|
$ |
1.64 |
|
|
$ |
1.65 |
|
Weighted average number of shares outstanding — basic and diluted |
|
|
38,903,423 |
|
|
|
35,721,635 |
|
|
|
38,274,193 |
|
|
|
34,991,361 |
|
Schedule 1
Supplemental Information Regarding Adjusted Net Investment Income
On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The management agreement with our investment advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses for such year, less the aggregate amount of any capital gains incentive fees paid in all prior years. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. The following table provides a reconciliation of net investment income to adjusted net investment income for the three and nine months ended September 30, 2026 and 2025.
|
|
|
|
|
($ in thousands) |
|
|
($ in thousands) |
|
||||||||||
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
|
|
September 30, |
|
|
September 30, |
|
||||||||||
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|||||||||||
|
|
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Net investment income |
|
|
|
|
$ |
21,139 |
|
|
$ |
17,369 |
|
|
$ |
64,472 |
|
|
$ |
54,219 |
|
Capital gains incentive fee expense (reversal) |
|
|
|
|
|
(162 |
) |
|
|
354 |
|
|
|
(860 |
) |
|
|
1,972 |
|
Adjusted net investment income (1) |
|
|
|
|
$ |
20,977 |
|
|
$ |
17,723 |
|
|
$ |
63,612 |
|
|
$ |
56,191 |
|
|
|
|
|
|
(Per share) |
|
|
(Per share) |
|
||||||||||
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
|
|
|
September 30, |
|
|
September 30, |
|
||||||||||
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|||||||||||
|
|
|
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Net investment income |
|
|
|
|
$ |
0.54 |
|
|
$ |
0.49 |
|
|
$ |
1.68 |
|
|
$ |
1.55 |
|
Capital gains incentive fee expense (reversal) |
|
|
|
|
|
- |
|
|
|
0.01 |
|
|
|
(0.02 |
) |
|
|
0.06 |
|
Adjusted net investment income (1) |
|
|
|
|
$ |
0.54 |
|
|
$ |
0.50 |
|
|
$ |
1.66 |
|
|
$ |
1.61 |
|
(1) |
Adjusted net investment income per share amounts are calculated as adjusted net investment income divided by weighted average shares outstanding for the period. Due to rounding, the sum of net investment income per share and capital gains incentive fee expense (reversal) amounts may not equal the adjusted net investment income per share amount presented here.
|
Company Contact: |
Investor Relations Contact: |
Shelby E. Sherard |
Jody Burfening |
Chief Financial Officer |
Alliance Advisors IR |
(847) 859-3940 |
(212) 838-3777 |
ssherard@fidusinv.com |
jburfening@allianceadvisors.com |