MSC Income Fund (NYSE: MSIF) lifts 2025 ROE and NAV with gains

Rhea-AI Filing Summary

MSC Income Fund, Inc. reported solid fourth-quarter and full-year 2025 results, with Q4 net investment income of $13.1 million, or $0.28 per share, and adjusted net investment income of $0.34 per share. Net asset value reached $15.85 per share, up 2.0% from September 30, 2025.

For 2025, net investment income was $61.8 million, or $1.33 per share, and adjusted net investment income before taxes was $1.47 per share, supporting total dividends of $1.44 per share. Return on equity was 12.5%, net assets rose to $738.7 million, and the portfolio remained primarily senior secured loans with low non-accruals and a debt-to-equity ratio of 0.82x.

Positive

• Robust 2025 profitability and ROE: Net increase in net assets resulting from operations rose to $88.7 million from $56.6 million, with full‑year return on equity of 12.5% and NAV per share increasing to $15.85.
• Strong Q4 realized gains and portfolio performance: Fourth quarter realized gains of $16.6 million and net fair value gains of $17.2 million drove a 16.3% annualized return on equity and higher NAV.
• Solid balance sheet and credit quality: Debt‑to‑equity of 0.82x, investment‑grade BBB‑ rating reaffirmed, liquidity of $112.0 million, and non‑accruals at only 1.0% of the portfolio at fair value.

Negative

• None.

Insights

BDC and Credit Analyst

Strong 2025 results with higher ROE, NAV growth and solid credit profile.

MSC Income Fund delivered a full-year net increase in net assets of $88.7 million, up from $56.6 million in 2024, driven by realized gains and fair value appreciation. Return on equity reached 12.5%, while 2025 adjusted net investment income before taxes was $68.3 million, or $1.47 per share.

Q4 results showed total investment income of $34.9 million and net investment income of $13.1 million, with a capital gains incentive fee of $2.8 million depressing reported NII relative to adjusted figures. Net asset value per share increased to $15.85, supported by $17.2 million of net fair value gains in the quarter.

From a balance sheet perspective, the fund ended December 31, 2025 with aggregate liquidity of $112.0 million and a debt-to-equity ratio of 0.82x, below its targeted range. Non‑accrual investments were just 1.0% of the portfolio at fair value, and portfolio yields remained double‑digit, suggesting stable credit performance heading into 2026.

0001535778false00015357782026-02-262026-02-26

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________________________________________________________

FORM 8-K

__________________________________________________________________________

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) February 26, 2026

__________________________________________________________________________

MSC Income Fund, Inc.

(Exact name of registrant as specified in its charter)

Maryland	814-00939	45-3999996
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1300 Post Oak Boulevard, 8th Floor, Houston, Texas	77056
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (713) 350-6000

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:

o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol		Name of each exchange on which registered
Common Stock, par value $0.001 per share		MSIF		New York Stock Exchange NYSE Texas

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 o

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. o

Item 2.02Results of Operations and Financial Condition.

On February 26, 2026, the Registrant issued a press release. A copy of such press release is attached hereto as Exhibit 99.1

and is incorporated herein by reference.

The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed

“filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by

reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such

filing.

Item 9.01Financial Statements and Exhibits.

(d) Exhibits

99.1	Press release dated February 26, 2026
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.

	MSC Income Fund, Inc.
Date: February 26, 2026	By:	/s/ Cory E. Gilbert
		Name:           Cory E. Gilbert
		Title:             Chief Financial Officer

1

Exhibit 99.1

	NEWS RELEASE
	Contacts: MSC Income Fund, Inc. Dwayne L. Hyzak, CEO, dhyzak@mainstcapital.com Cory E. Gilbert, CFO, cgilbert@mainstcapital.com 713-350-6000 Dennard Lascar Investor Relations Ken Dennard / ken@dennardlascar.com Zach Vaughan / zvaughan@dennardlascar.com 713-529-6600

MSC INCOME FUND ANNOUNCES

2025 FOURTH QUARTER AND ANNUAL RESULTS

Fourth Quarter 2025 Net Investment Income of $0.28 Per Share

Fourth Quarter 2025 Adjusted Net Investment Income(1) of $0.34 Per Share

Fourth Quarter 2025 Adjusted Net Investment Income Before Taxes(2) of $0.37 Per Share

Net Asset Value of $15.85 Per Share

HOUSTON, February 26, 2026 – MSC Income Fund, Inc. (NYSE: MSIF) (“MSC Income” or the “Fund”) is

pleased to announce its financial results for the fourth quarter and full year ended December 31, 2025.

Fourth Quarter 2025 Highlights

•Net investment income (“NII”) of $13.1 million, or $0.28 per share, including the impact of the capital gains

incentive fee(3) of $2.8 million, or $0.06 per share, and excise tax and NII related income taxes of $1.3

million, or $0.03 per share

•NII excluding the impact of the capital gains incentive fee,(3) or adjusted net investment income (“ANII”),(1)

of $15.9 million, or $0.34 per share

•ANII excluding the impact of excise tax and NII related income taxes, or ANII before taxes,(2) of $17.2

million, or $0.37 per share

•Total investment income of $34.9 million

•Net increase in net assets resulting from operations of $30.0 million, or $0.64 per share

•Return on equity(4) of 16.3% on an annualized basis

•Net asset value of $15.85 per share as of December 31, 2025, representing an increase of $0.31 per share, or

2.0%, compared to $15.54 per share as of September 30, 2025

•Declared a regular quarterly dividend of $0.35 per share and a supplemental dividend of $0.01 per share,

both payable in the first quarter of 2026, resulting in total dividends declared in the fourth quarter of 2025 of

$0.36 per share

•Completed $100.9 million in total private loan portfolio investments, which after aggregate repayments,

return of invested equity capital and a decrease in cost basis due to realized losses resulted in a net increase

of $57.1 million in the total cost basis of the private loan investment portfolio

•Completed $23.0 million in total lower middle market (“LMM”) portfolio follow-on investments, which after

aggregate repayments, return of invested equity capital and a decrease in cost basis due to realized losses

resulted in a net increase of $14.9 million in the total cost basis of the LMM investment portfolio

2

Full Year 2025 Highlights

•NII of $61.8 million, or $1.33 per share, including the impact of the capital gains incentive fee(3) of $2.8

million, or $0.06 per share, and excise tax and NII related income taxes of $3.8 million, or $0.08 per share

•NII excluding the impact of the capital gains incentive fee,(3) or ANII,(1) of $64.5 million, or $1.39 per share

•ANII excluding the impact of excise tax and NII related income taxes, or ANII before taxes,(2) of $68.3

million, or $1.47 per share

•Total investment income of $139.2 million

•Net increase in net assets resulting from operations of $88.7 million, or $1.91 per share

•Return on equity(4) of 12.5%

•Net asset value of $15.85 per share as of December 31, 2025, representing an increase of $0.32 per share, or

2.1%, compared to $15.53 per share as of December 31, 2024

•Declared regular quarterly dividends totaling $1.40 per share and supplemental dividends totaling $0.04 per

share, resulting in total dividends declared of $1.44 per share

•Completed $357.1 million in total private loan portfolio investments, which after aggregate repayments and

sales of debt investments, return of invested equity capital and a decrease in cost basis due to realized losses

resulted in a net increase of $109.6 million in the total cost basis of the private loan investment portfolio

•Completed $53.5 million in total LMM portfolio follow-on investments, which after aggregate repayments,

return of invested equity capital and a decrease in cost basis due to realized losses resulted in a net increase

of $27.1 million in the total cost basis of the LMM investment portfolio

•Further diversified the Fund’s capital structure and enhanced its liquidity position by (i) amending the

Corporate Facility to increase total commitments to $245.0 million (from $165.0 million), increase the

accordion feature to up to a total of $300.0 million and expand and diversify the lender group to seven

participants and (ii) amending the SPV Facility to decrease the interest rate to the applicable Secured

Overnight Financing Rate (“SOFR”) plus 2.20% (from 3.00%), extend the revolving period through February

2029 and extend the final maturity date to February 2030, with the Corporate Facility and SPV Facility each

defined in the Liquidity and Capital Resources section below

•Entered into an amended advisory agreement effective upon the listing of the Fund’s common stock on the

New York Stock Exchange (“NYSE”) in January 2025 (the “MSC Income Listing”) to, among other things,

(i) reduce the annual base management fee payable by the Fund to 1.5% of its average total assets (with

additional future contractual reductions based upon changes to the composition of the Fund’s investment

portfolio), (ii) reduce to 17.5% the subordinated incentive fee on income payable by the Fund, subject to a

50% / 50% catch-up feature, (iii) reduce to 17.5% and reset the incentive fee on cumulative net realized

capital gains payable by the Fund and (iv) establish a cap on the amount of expenses payable by the Fund

relating to certain internal administrative services, which varies based on the value of the Fund’s total assets

In commenting on the Fund’s operating results for the fourth quarter and full year of 2025, Dwayne L. Hyzak,

MSC Income’s Chief Executive Officer, stated, “We are very pleased with the Fund’s performance in the fourth

quarter, which resulted in an annualized return on equity of 16.3%, favorable adjusted net investment income

per share and a significant net increase in the fair value of the Fund’s investments, including the benefits of net

realized gains in both the Fund’s private loan and lower middle market investments, which resulted in a

significant increase in net asset value per share. The Fund also produced favorable investment activity in the

fourth quarter which generated meaningful growth of the Fund’s investment portfolio.”

Mr. Hyzak continued, “After the Fund’s positive performance in the first three quarters of 2025, the Fund’s

strong performance in the fourth quarter resulted in a return on equity of 12.5% for the full year. Based upon the

quality of the Fund’s existing investment portfolio, combined with the Fund’s existing liquidity and expanded

regulatory leverage capacity which became effective for the Fund at the end of January 2026, we remain excited

about our future expectations for the Fund.”

3

Fourth Quarter 2025 Operating Results

The following table provides a summary of the Fund’s operating results for the fourth quarter of 2025:

	Three Months Ended December 31,
	2025		2024		Change ($)		Change (%)
	(dollars in thousands, except per share amounts)
Interest income	$ 28,860		$ 29,662		$ (802)		(3)%
Dividend income	5,308		2,731		2,577		94 %
Fee income	748		1,062		(314)		(30)%
Total investment income	$ 34,916		$ 33,455		$ 1,461		4 %
Net investment income (5)	$ 13,122		$ 13,557		$ (435)		(3)%
Net investment income per share (5)	$ 0.28		$ 0.34		$ (0.06)		(18)%
Adjusted net investment income (1)	$ 15,885		$ 13,557		$ 2,328		17 %
Adjusted net investment income per share (1)	$ 0.34		$ 0.34		$ —		— %
Adjusted net investment income before taxes (2)	$ 17,162		$ 14,227		$ 2,935		21 %
Adjusted net investment income before taxes per share (2)	$ 0.37		$ 0.35		$ 0.02		6 %
Net increase in net assets resulting from operations	$ 30,035		$ 20,462		$ 9,573		47 %
Net increase in net assets resulting from operations per share	$ 0.64		$ 0.51		$ 0.13		25 %

The $1.5 million increase in total investment income in the fourth quarter of 2025 from the comparable period

of the prior year was principally attributable to a $2.6 million increase in dividend income, primarily due to a

$2.5 million increase in dividend income from the Fund’s LMM portfolio companies. The increase was partially

offset by (i) a $0.8 million decrease in interest income, principally attributable to a decrease in interest rates,

primarily resulting from decreases in benchmark index rates on floating rate debt investments, and a larger

negative impact from investments on non-accrual status, partially offset by higher average levels of income

producing investment portfolio debt investments and (ii) a $0.3 million decrease in fee income, principally

attributable to a decrease in fee income from the refinancing and prepayment of debt investments. The $1.5

million increase in total investment income in the fourth quarter of 2025 includes the impact of an increase of

$1.1 million in certain income considered less consistent or non-recurring, primarily related to increases of (i)

$1.2 million in such dividend income and (ii) $0.1 million in such interest income from accelerated prepayment,

repricing and other activity related to certain investment portfolio debt investments, partially offset by a $0.3

million decrease in such fee income, in each case when compared to the same period in 2024.

Total expenses, net of waivers, increased by $1.3 million, or 6.7%, to $20.5 million in the fourth quarter of 2025

from $19.2 million for the same period in 2024. This increase was principally attributable to a $2.8 million

capital gains incentive fee(3) accrued in the fourth quarter of 2025, partially offset by (i) a $1.2 million decrease

in interest expense and (ii) a $0.4 million decrease in base management fees. The capital gains incentive fee(3) is

primarily the result of the significant net fair value appreciation of the Fund’s investments recognized during the

fourth quarter of 2025. The decrease in interest expense is primarily related to a decreased weighted-average

interest rate on the Credit Facilities due to a decrease to the applicable spreads resulting from amendments of

the Credit Facilities since the fourth quarter of 2024 and decreases in benchmark index rates.

The Fund’s ratio of total non-interest operating expenses, excluding incentive fees, as a percentage of quarterly

average total assets, or the Operating Expenses to Assets Ratio, decreased to 1.8% on an annualized basis for

the fourth quarter of 2025, from 2.1% for the fourth quarter of 2024, primarily as a result of the decreased base

4

management fee percentage under the amended advisory agreement effective upon the MSC Income Listing in

January 2025.

NII related federal and state income and other tax expenses increased $0.6 million in the fourth quarter of 2025

from the comparable period of the prior year, primarily driven by an increase in taxable NII between the

relevant periods.

The $0.4 million decrease in NII in the fourth quarter of 2025 from the comparable period of the prior year was

principally attributable to increases in (i) total expenses, net of waivers, and (ii) NII related federal and state

income and other tax expenses, partially offset by an increase in total investment income, each as discussed

above. NII on a per share basis decreased by $0.06 per share for the fourth quarter of 2025 as compared to the

fourth quarter of 2024, to $0.28 per share, reflecting the impact of the $0.06 per share capital gains incentive fee

accrual in the fourth quarter of 2025.

The $2.3 million increase in ANII(1) in the fourth quarter of 2025 from the comparable period of the prior year

was principally attributable to the same factors noted above for the change in NII, which include (i) an increase

in total investment income, (ii) a decrease in interest expense and (iii) a decrease in base management fees,

partially offset by an increase in NII related federal and state income and other tax expenses, each as discussed

above, but excluding the impact of the capital gains incentive fee accrual in 2025. ANII(1) on a per share basis

for the fourth quarter of 2025 was consistent with the fourth quarter of 2024 at $0.34 per share.

The per share changes in NII and ANII(1) in the fourth quarter of 2025 from the comparable period of the prior

year include the impact of a 16.6% increase in the weighted-average shares outstanding, primarily due to new

shares issued through the MSC Income Listing and the dividend reinvestment plan, partially offset by shares

repurchased by the Fund. NII and ANII(1) on a per share basis in the fourth quarter of 2025 each include a net

increase of $0.02 per share resulting from an increase in investment income considered less consistent or non-

recurring in nature compared to the fourth quarter of 2024, as discussed above.

The $30.0 million net increase in net assets resulting from operations in the fourth quarter of 2025 represents a

$9.6 million increase from the fourth quarter of 2024. This increase was primarily the result of a $16.0 million

increase in the net fair value change of the Fund’s portfolio investments resulting from the net impact of net

realized gains/losses and net unrealized appreciation/depreciation, with the increase resulting from a net fair

value increase of $17.2 million in the fourth quarter of 2025 compared to a net fair value increase of $1.2

million in the comparable period of the prior year, partially offset by (i) a $6.0 million increase in net tax

provision on the net fair value change of the portfolio investments resulting from a net tax provision of $0.3

million in the fourth quarter of 2025 compared to a net tax benefit of $5.7 million in the comparable period of

the prior year and (ii) a $0.4 million decrease in NII as discussed above. The $17.2 million net fair value

increase in the fourth quarter of 2025 was the result of a net realized gain of $16.6 million and net unrealized

appreciation (including the reversal of net fair value appreciation recognized in prior periods due to the net

realized gain in the quarter) of $0.5 million. The $1.2 million net fair value increase in the fourth quarter of

2024 was the result of net unrealized appreciation of $9.2 million, partially offset by a net realized loss of $8.0

million. The $16.6 million net realized gain from investments for the fourth quarter of 2025 was primarily the

result of (i) $16.1 million of realized gains on the full exits of two private loan portfolio investments and (ii) a

$6.0 million realized gain on the full exit of a LMM portfolio investment, partially offset by (i) a $5.2 million

realized loss on the restructure of a private loan portfolio investment and (ii) a $0.3 million realized loss on the

full exit of a private loan portfolio investment.

5

The following table provides a summary of the total net unrealized appreciation of $0.5 million for the fourth

quarter of 2025:

	Three Months Ended December 31, 2025
	Private Loan		LMM (a)		Middle Market		Other		Total
	(in millions)
Accounting reversals of net unrealized (appreciation) depreciation recognized in prior periods due to net realized (gains / income) losses recognized during the current period	$ (11.0)		$ (6.2)		$ —		$ —		$ (17.2)
Net unrealized appreciation (depreciation) relating to portfolio investments	8.4		12.2		(3.1)		0.2		17.7
Total net unrealized appreciation (depreciation) relating to portfolio investments	$ (2.6)		$ 6.0		$ (3.1)		$ 0.2		$ 0.5

(a)Includes unrealized appreciation on 34 LMM portfolio investments and unrealized depreciation on 11 LMM

portfolio investments.

Liquidity and Capital Resources

As of December 31, 2025, the Fund had aggregate liquidity of $112.0 million, including (i) $20.6 million in

cash and cash equivalents and (ii) $91.4 million of aggregate unused capacity under the Fund’s corporate

revolving credit facility (the “Corporate Facility”) and the Fund’s special purpose vehicle revolving credit

facility (the “SPV Facility” and, together with the Corporate Facility, the “Credit Facilities”), which the Fund

maintains to support its investment and operating activities.

Several details regarding the Fund’s capital structure as of December 31, 2025 are as follows:

•The SPV Facility included $300.0 million in total commitments plus an accordion feature that allows the

Fund to request an increase in the total commitments under the facility to up to $450.0 million.

•$244.0 million in outstanding borrowings under the SPV Facility, with an interest rate of 5.9% based on the

applicable SOFR effective for the contractual reset date of January 1, 2026.

•The Corporate Facility included $245.0 million in total commitments from a diversified group of seven

participating lenders, plus an accordion feature that allows the Fund to request an increase in the total

commitments under the facility to up to $300.0 million.

•$209.0 million in outstanding borrowings under the Corporate Facility, with an interest rate of 5.8% based

on the applicable SOFR effective for the contractual reset date of January 1, 2026.

•$150.0 million of unsecured notes outstanding that bear interest at a rate of 4.04% per year (the “Series A

Notes”). The Series A Notes mature on October 30, 2026.

•The Fund maintains an investment grade rating from Kroll Bond Rating Agency, LLC of BBB- with a stable

outlook. Kroll Bond Rating Agency, LLC reaffirmed its rating in October 2025.

•The Fund’s net asset value totaled $738.7 million, or $15.85 per share.

•The Fund’s debt-to-equity ratio was 0.82x as of December 31, 2025, below the Fund’s targeted leverage

range.

•Effective on January 29, 2026, the Fund’s minimum regulatory asset coverage requirement decreased from

200% to 150%.

6

Investment Portfolio Information as of December 31, 2025(6)

The following table provides a summary of the investments in the Fund’s private loan portfolio and LMM

portfolio as of December 31, 2025:

		December 31, 2025
		Private Loan		LMM (a)
		(dollars in millions)
Number of portfolio companies		81		55
Fair value		$ 809.0		$ 487.6
Cost		$ 821.7		$ 384.8
Debt investments as a % of portfolio (at cost)		92.1 %		70.6 %
Equity investments as a % of portfolio (at cost)		7.9 %		29.4 %
% of debt investments at cost secured by first priority lien		99.9 %		99.9 %
Weighted-average annual effective yield (b)		10.7 %		12.4 %
Average EBITDA (c)		$ 30.0		$ 11.7

(a)The Fund had equity ownership in all of its LMM portfolio companies, and the Fund’s average fully diluted

equity ownership in those portfolio companies was 8%.

(b)The weighted-average annual effective yields were computed using the effective interest rates for all debt

investments as of December 31, 2025, including amortization of deferred debt origination fees and accretion

of original issue discount but excluding fees payable upon repayment of the debt instruments and any debt

investments on non-accrual status, and are weighted based upon the principal amount of each applicable

debt investment as of December 31, 2025.

(c)The average EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is calculated using

a weighted-average for private loan portfolio companies and a simple average for LMM portfolio

companies. These calculations exclude certain portfolio companies, including four private loan portfolio

companies and three LMM portfolio companies, as EBITDA is not a meaningful valuation metric for the

Fund’s investments in these portfolio companies, and those portfolio companies whose primary purpose is

to own real estate and those portfolio companies whose primary operations have ceased and only residual

value remains.

The Fund’s total investment portfolio at fair value consists of approximately 61% private loan, 36% LMM, 2%

middle market and 1% other portfolio investments.

The fair value of the Fund’s LMM portfolio company equity investments was 201% of the related cost basis of

such equity investments, and the Fund’s LMM portfolio companies had a median net senior debt (senior

interest-bearing debt through the Fund’s debt position less cash and cash equivalents) to EBITDA ratio of 2.5 to

1.0 and a median total EBITDA to senior interest expense ratio of 2.9 to 1.0. Including all debt that is junior in

priority to the Fund’s debt position, these median ratios were 2.7 to 1.0 and 2.8 to 1.0, respectively.(6)(7)

As of December 31, 2025, the Fund’s investment portfolio also included:

•Middle market portfolio investments in eight portfolio companies, collectively totaling $23.3 million in fair

value and $39.8 million in cost basis, which comprised 1.7% and 3.2% of the Fund’s investment portfolio at

fair value and cost, respectively; and

•Other portfolio investments in six entities, spread across four investment managers, collectively totaling

$15.5 million in fair value and $13.7 million in cost basis, which comprised 1.2% and 1.1% of the Fund’s

investment portfolio at fair value and cost, respectively.

7

As of December 31, 2025, investments on non-accrual status comprised 1.0% of the total investment portfolio at

fair value and 3.9% at cost, and the Fund’s total portfolio investments at fair value were 106% of the related

cost basis.

Fourth Quarter and Full Year 2025 Financial Results Conference Call / Webcast

MSC Income has scheduled a conference call for Friday, February 27, 2026 at 11:00 a.m. Eastern time to

discuss the fourth quarter and full year 2025 financial results.(8)

You may access the conference call by dialing 412-902-0030 at least 10 minutes prior to the start time. The

conference call can also be accessed via a simultaneous webcast by logging into the investor relations section of

the Fund’s website at https://www.mscincomefund.com.

A telephonic replay of the conference call will be available through Friday, March 6, 2026 and may be accessed

by dialing 201-612-7415 and using the passcode 13758250#. An audio archive of the conference call will also

be available on the investor relations section of the Fund’s website at https://www.mscincomefund.com shortly

after the call and will be accessible until the date of MSC Income’s earnings release for the next quarter.

For a more detailed discussion of the financial and other information included in this press release, please refer

to the MSC Income Annual Report on Form 10-K for the fiscal year ended December 31, 2025 to be filed with

the U.S. Securities and Exchange Commission (the “SEC”) (www.sec.gov) and MSC Income’s Fourth Quarter

2025 Investor Presentation to be posted on the investor relations section of the MSC Income website at https://

www.mscincomefund.com.

ABOUT MSC INCOME FUND, INC.

The Fund (www.mscincomefund.com) is a principal investment firm that primarily provides debt capital to

private companies owned by or in the process of being acquired by a private equity fund. The Fund’s portfolio

investments are typically made to support leveraged buyouts, recapitalizations, growth financings, refinancings

and acquisitions of companies that operate in diverse industry sectors. The Fund seeks to partner with private

equity fund sponsors and primarily invests in secured debt investments within its private loan investment

strategy. The Fund also maintains a portfolio of customized long-term debt and equity investments in lower

middle market companies, and through those investments, the Fund has partnered with entrepreneurs, business

owners and management teams in co-investments with Main Street Capital Corporation (NYSE: MAIN) (“Main

Street”) utilizing the customized “one-stop” debt and equity financing solutions provided in Main Street’s lower

middle market investment strategy. The Fund’s private loan portfolio companies generally have annual

revenues between $25 million and $500 million. The Fund’s lower middle market portfolio companies generally

have annual revenues between $10 million and $150 million.

ABOUT MSC ADVISER I, LLC

MSC Adviser I, LLC (“MSCA”) is a wholly-owned subsidiary of Main Street that is registered as an investment

adviser under the Investment Advisers Act of 1940, as amended. MSCA serves as the investment adviser and

administrator of the Fund in addition to several other advisory clients.

8

FORWARD-LOOKING STATEMENTS

MSC Income cautions that statements in this press release which are forward‑looking and provide other than

historical information, including but not limited to MSC Income’s ability to successfully source and execute on

new portfolio investments and deliver future financial performance and results, are based on current conditions

and information available to MSC Income as of the date hereof and include statements regarding MSC

Income’s goals, beliefs, strategies and future operating results and cash flows. Although its management

believes that the expectations reflected in those forward‑looking statements are reasonable, MSC Income can

give no assurance that those expectations will prove to be correct. Those forward-looking statements are made

based on various underlying assumptions and are subject to numerous uncertainties and risks, including, without

limitation: MSC Income’s continued effectiveness in raising, investing and managing capital; adverse changes

in the economy generally or in the industries in which MSC Income’s portfolio companies operate; the impacts

of macroeconomic factors on MSC Income and its portfolio companies’ businesses and operations, liquidity and

access to capital, and on the U.S. and global economies, including impacts related to pandemics and other

public health crises, global conflicts, risk of recession, tariffs and trade disputes, inflation, supply chain

constraints or disruptions and changes in market index interest rates; changes in laws and regulations or

business, political and/or regulatory conditions that may adversely impact MSC Income’s operations or the

operations of its portfolio companies; the operating and financial performance of MSC Income’s portfolio

companies and their access to capital; retention of key investment personnel by MSCA; competitive factors; and

such other factors described under the captions “Cautionary Statement Concerning Forward-Looking

Statements” and “Risk Factors” included in MSC Income’s filings with the SEC (www.sec.gov). MSC Income

undertakes no obligation to update the information contained herein to reflect subsequently occurring events or

circumstances, except as required by applicable securities laws and regulations.

9

MSC INCOME FUND, INC.

Consolidated Statements of Operations

(in thousands, except shares and per share amounts)

	Three Months Ended December 31,				Year Ended December 31,
	2025		2024		2025		2024
INVESTMENT INCOME:
Interest, dividend and fee income:
Control investments	$ 1,234		$ 799		$ 5,483		$ 3,441
Affiliate investments	10,629		8,331		38,849		31,222
Non‑Control/Non‑Affiliate investments	23,053		24,325		94,821		100,165
Total investment income	34,916		33,455		139,153		134,828
EXPENSES:
Interest	(8,357)		(9,565)		(33,927)		(39,035)
Base management fee	(5,018)		(5,377)		(19,757)		(20,922)
Incentive fee on income	(3,370)		(3,131)		(12,145)		(12,494)
Incentive fee on capital gains	(2,763)		—		(2,763)		—
General and administrative	(827)		(992)		(4,337)		(4,416)
Internal administrative services expenses	(182)		(2,935)		(701)		(10,089)
Total expenses before expense waivers	(20,517)		(22,000)		(73,630)		(86,956)
Waiver of internal administrative services expenses	—		2,772		—		9,450
Total expenses, net of expense waivers	(20,517)		(19,228)		(73,630)		(77,506)
NET INVESTMENT INCOME BEFORE TAXES	14,399		14,227		65,523		57,322
Excise tax expense	(270)		(281)		(510)		(851)
Federal and state income and other tax expenses	(1,007)		(389)		(3,260)		(2,590)
NET INVESTMENT INCOME (5)	13,122		13,557		61,753		53,881
NET REALIZED GAIN (LOSS):
Control investments	—		90		5,305		147
Affiliate investments	8,639		(3,560)		6,320		(3,560)
Non‑Control/Non‑Affiliate investments	7,999		(4,556)		(21,128)		19,189
Total net realized gain (loss)	16,638		(8,026)		(9,503)		15,776
NET UNREALIZED APPRECIATION (DEPRECIATION):
Control investments	(2,481)		202		(9,495)		4,833
Affiliate investments	5,088		6,625		17,548		7,791
Non‑Control/Non‑Affiliate investments	(2,065)		2,390		28,375		(28,063)
Total net unrealized appreciation (depreciation)	542		9,217		36,428		(15,439)
Income tax benefit (provision) on net realized gain (loss) and net unrealized appreciation (depreciation)	(267)		5,714		50		2,335
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$ 30,035		$ 20,462		$ 88,728		$ 56,553
NET INVESTMENT INCOME BEFORE TAXES PER SHARE—BASIC AND DILUTED	$ 0.31		$ 0.35		$ 1.41		$ 1.43
NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED (5)	$ 0.28		$ 0.34		$ 1.33		$ 1.34
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE—BASIC AND DILUTED	$ 0.64		$ 0.51		$ 1.91		$ 1.41
WEIGHTED-AVERAGE SHARES OUTSTANDING—BASIC AND DILUTED	46,923,388		40,232,637		46,497,019		40,174,311

10

MSC INCOME FUND, INC.

Consolidated Balance Sheets

(in thousands, except per share amounts)

		December 31, 2025		December 31, 2024
ASSETS
Investments at fair value:
Control investments		$ 58,372		$ 69,878
Affiliate investments		406,771		351,360
Non‑Control/Non‑Affiliate investments		870,244		756,269
Total investments		1,335,387		1,177,507
Cash and cash equivalents		20,635		28,375
Interest and dividend receivable		12,273		11,925
Deferred financing costs		3,190		1,985
Prepaids and other assets		9,546		4,254
Deferred tax asset, net		—		625
Total assets		$ 1,381,031		$ 1,224,671
LIABILITIES
Credit Facilities		$ 453,000		$ 415,688
Series A Notes due 2026 (par: $150,000 as of both December 31, 2025 and 2024)		149,751		149,453
Accounts payable and other liabilities		3,549		4,723
Interest payable		5,946		6,909
Dividend payable		16,772		14,487
Base management and incentive fees payable		8,388		8,508
Deferred tax liability, net		4,966		—
Total liabilities		642,372		599,768
NET ASSETS
Common stock		47		40
Additional paid‑in capital		782,007		689,580
Total overdistributed earnings		(43,395)		(64,717)
Total net assets		738,659		624,903
Total liabilities and net assets		$ 1,381,031		$ 1,224,671
NET ASSET VALUE PER SHARE		$ 15.85		$ 15.53

11

MSC INCOME FUND, INC.

Reconciliation of Adjusted Net Investment Income and Adjusted Net Investment Income Before Taxes

(in thousands, except per share amounts)

	Three Months Ended				Year Ended
	December 31,				December 31,
	2025		2024		2025		2024
Net investment income (5)	$ 13,122		$ 13,557		$ 61,753		$ 53,881
Incentive fee on capital gains (3)	2,763		—		2,763		—
Adjusted net investment income (1)	15,885		13,557		64,516		53,881
Excise tax expense	270		281		510		851
Federal and state income and other tax expenses	1,007		389		3,260		2,590
Adjusted net investment income before taxes (2)	$ 17,162		$ 14,227		$ 68,286		$ 57,322
Per share amounts:
Net investment income per share -
Basic and diluted (5)	$ 0.28		$ 0.34		$ 1.33		$ 1.34
Adjusted net investment income per share -
Basic and diluted (1)	$ 0.34		$ 0.34		$ 1.39		$ 1.34
Adjusted net investment income before taxes per share -
Basic and diluted (2)	$ 0.37		$ 0.35		$ 1.47		$ 1.43

12

MSC INCOME FUND, INC.

Endnotes

(1) ANII is NII as determined in accordance with U.S. Generally Accepted Accounting Principles, or U.S.

GAAP, excluding the impact of the capital gains incentive fee(3). MSC Income believes presenting ANII and

the related per share amount is useful and appropriate supplemental disclosure for analyzing the Fund’s

financial performance since the calculation of the capital gains incentive fee is based on realized gains and

losses and unrealized fair value appreciation and depreciation, none of which are included in NII. However,

ANII is a non-U.S. GAAP measure and should not be considered as a replacement for NII or other earnings

measures presented in accordance with U.S. GAAP and should be reviewed only in connection with such

U.S. GAAP measures in analyzing MSC Income’s financial performance. A reconciliation of NII in

accordance with U.S. GAAP to ANII is detailed in the financial tables included with this press release.

(2) ANII before taxes is NII as determined in accordance with U.S. GAAP, excluding the impact of any tax

expenses included in NII and the capital gains incentive fee(3). MSC Income believes presenting ANII before

taxes and the related per share amount is useful and appropriate supplemental disclosure for analyzing the

Fund’s financial performance since (i) the calculation of the capital gains incentive fee is based on realized

gains and losses and unrealized fair value appreciation and depreciation, none of which are included in NII,

and (ii) tax expenses included in NII may include (a) excise tax expense, which is not solely attributable to

NII, and (b) deferred taxes, which are not payable in the current period. However, ANII before taxes is a

non-U.S. GAAP measure and should not be considered as a replacement for NII, NII before taxes or other

earnings measures presented in accordance with U.S. GAAP and should be reviewed only in connection

with such U.S. GAAP measures in analyzing MSC Income’s financial performance. A reconciliation of NII

in accordance with U.S. GAAP to ANII before taxes is detailed in the financial tables included with this

press release.

(3) Pursuant to the amended advisory agreement effective upon the MSC Income Listing, the incentive fee on

capital gains is determined and payable to the Fund’s investment adviser (the “Adviser”) in arrears, if any,

as of the end of each calendar year. This fee equals (a) 17.5% of the Fund’s incentive fee capital gain, which

is calculated as the Fund’s (i) cumulative net realized gains (net of any related net income tax expense),

minus (ii) cumulative unrealized depreciation (net of any related income tax benefit, and excluding any

unrealized appreciation), minus (b) the aggregate amount of any previously paid capital gains incentive fee,

in each case from the MSC Income Listing date through the applicable calendar year ended. In accordance

with U.S. GAAP, at the end of each reporting period, the Fund estimates the capital gains incentive fee and

accrues the fee based upon a hypothetical liquidation of its investment portfolio at the then current fair

value. Therefore, the calculation of the accrual equals (a) the Fund’s cumulative change in net fair value,

including both (i) the cumulative net realized gain/loss and (ii) the cumulative net unrealized appreciation/

depreciation (in both cases, net of any related cumulative net income tax expense or benefit), minus (b) the

aggregate amount of any previously paid capital gains incentive fee, in each case from the MSC Income

Listing date through the applicable period ended. However, any capital gains incentive fee accrued related to

the unrealized appreciation is neither earned nor payable to the Adviser until such time that it is realized,

and assuming at the end of a calendar year such incentive fee capital gain exists excluding any cumulative

unrealized appreciation (in each case, net of any related net income tax expense or benefits). For the fourth

quarter of 2025, the Fund accrued a capital gains incentive fee of $2.8 million. For further discussion, see

Note J Related Party Transactions and Arrangements in the notes to the consolidated financial statements

included in Item 8. Consolidated Financial Statements and Supplementary Data of the Fund's Annual

Report on Form 10-K filed with the SEC on February 27, 2026.

(4) Return on equity equals the net increase in net assets resulting from operations divided by the average

quarterly total net assets.

13

(5) NII for each period in 2024 and the first quarter of 2025 necessary to present the comparable amounts for

the year ended December 31, 2025 have been revised to include the impact of excise tax and NII related

federal and state income and other tax expenses previously included within the total income tax provision.

This correction was determined to be immaterial to any impacted prior periods and had no impact on net

increases in net assets resulting from operations or the related per share amounts.

(6) Portfolio company financial information has not been independently verified by MSC Income.

(7) These credit statistics exclude portfolio companies on non-accrual status and portfolio companies for which

EBITDA is not a meaningful metric.

(8) No information contained on the Fund’s website or disclosed on the February 27, 2026 conference call,

including the webcast and the archived versions, is incorporated by reference in this press release or any of

the Fund’s filings with the SEC, and you should not consider that information to be part of this press release

or any other such filing.

FAQ

How did MSC Income Fund (MSIF) perform in Q4 2025?

MSC Income Fund generated Q4 2025 net investment income of $13.1 million, or $0.28 per share. Adjusted net investment income was $15.9 million, or $0.34 per share, and total investment income reached $34.9 million, supported by higher dividend income and strong realized gains.

What were MSC Income Fund (MSIF)’s full-year 2025 financial results?

For 2025, MSC Income Fund reported net investment income of $61.8 million, or $1.33 per share. Adjusted net investment income before taxes was $68.3 million, or $1.47 per share, with a net increase in net assets from operations of $88.7 million, or $1.91 per share.

What dividends did MSC Income Fund (MSIF) declare for 2025?

In 2025, MSC Income Fund declared regular quarterly dividends totaling $1.40 per share and supplemental dividends of $0.04 per share. This resulted in total declared dividends of $1.44 per share, supported by adjusted net investment income and portfolio gains during the year.

How did MSC Income Fund (MSIF)’s net asset value change in 2025?

MSC Income Fund’s net asset value increased to $15.85 per share at December 31, 2025. This compares with $15.53 per share a year earlier, a 2.1% rise, driven by realized gains, fair value appreciation and strong net investment income generation.

What is MSC Income Fund (MSIF)’s leverage and liquidity position?

At December 31, 2025, MSC Income Fund had a debt-to-equity ratio of 0.82x and aggregate liquidity of $112.0 million. Liquidity included $20.6 million in cash and $91.4 million of unused capacity under its corporate and SPV revolving credit facilities.

What does MSC Income Fund (MSIF)’s investment portfolio look like?

As of December 31, 2025, MSC Income Fund’s portfolio was about 61% private loans and 36% lower middle market investments by fair value. Private loan and LMM debt were 99.9% first‑lien at cost, with weighted‑average effective yields of 10.7% and 12.4%, respectively.

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