Palmer Square Capital BDC (NYSE: PSBD) Q2 income, NAV and CLO reset

Rhea-AI Filing Summary

Palmer Square Capital BDC Inc. reported Q2 2026 total investment income of $27.3 million, down from $31.7 million a year earlier. Net investment income was $12.0 million, or $0.39 per share, versus $13.8 million, or $0.43 per share, in Q2 2025. Net realized and unrealized losses were $3.6 million compared with $6.7 million of losses in the prior-year quarter. Net asset value was $13.21 per share as of June 30, 2026, versus $13.30 as of March 31, 2026. For the first half of 2026, total return was (4.33)% and NAV declined from $14.85 to $13.21 per share.

The investment portfolio had $1.1 billion of fair value across 206 companies, 96% in senior secured loans and 98% at floating rates, with an 11.95% weighted average yield and 0.29% of investments on non-accrual. Debt-to-equity was 1.71x, total net assets were $406.2 million, and available liquidity was about $331.0 million against $21.5 million of unfunded commitments. Net investment income per share of $0.39 matched dividends earned per share of $0.39; a third-quarter base dividend of $0.36 per share was declared, payable October 13, 2026, to shareholders of record on September 25, 2026, with a supplemental dividend expected to be announced in September. Management stated that it increased and extended its share repurchase program and took proactive steps to improve its liability structure and lower its cost of capital.

After quarter-end, the company completed the CLO Reset Transaction, refinancing a $300 million term debt securitization by issuing $228.00 million of Class A-R notes at Term SOFR plus 1.27% and $72.00 million of Class B-R notes at Term SOFR plus 1.75%. On July 1, 2026, it reduced aggregate commitments under its Bank of America credit facility to $350 million from $525 million.

Filing Explained

The August 5 8-K furnishes results rather than filing them, so it does not itself create a Section 18 liability or incorporation effect.

On August 5, 2026, Palmer Square Capital BDC reported second-quarter results under Item 2.02 and made a supplemental investor presentation available under Item 7.01. The information was furnished rather than treated as filed for Section 18 liability or incorporated by reference into other Exchange Act or Securities Act filings.

Form 8-K reports specified material events and uses item numbers to identify the event category. Here, Item 2.02 covers results of operations and financial condition, while Item 7.01 covers Regulation FD disclosure.

As of June 30, 2026, the company reported $2.4 million of cash and cash equivalents and approximately $331.0 million of available liquidity, subject to borrowing-base and other restrictions. It also had $21.5 million of unfunded investment commitments; the filing says no portfolio company had made a capital call or draw request against those commitments by that date.

8-K Event Classification

3 items: 2.02, 7.01, 9.01

3 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Total investment income: $27.3 million Net investment income: $12.0 million Net investment income per share: $0.39 per share +5 more

8 metrics

Total investment income $27.3 million For the quarter ended June 30, 2026

Net investment income $12.0 million For the quarter ended June 30, 2026

Net investment income per share $0.39 per share For the quarter ended June 30, 2026

NAV per share $13.21 per share As of June 30, 2026

Total assets $1.1 billion As of June 30, 2026

Debt-to-equity ratio 1.71x As of June 30, 2026

Portfolio yield 11.95% Weighted average total yield to maturity at fair value as of June 30, 2026

Q3 2026 base dividend $0.36 per share Declared for payment on October 13, 2026 to shareholders of record on September 25, 2026

Key Terms

payment-in-kind interest income, non-accrual status, CLO Reset Transaction, first lien senior secured debt investments, +2 more

6 terms

payment-in-kind interest income financial

"we had only $373.7 thousand of recurring payment-in-kind interest income"

Payment-in-kind (PIK) interest income is interest a lender or investor earns when the borrower pays by increasing the loan balance or issuing more debt instead of sending cash. It matters because it boosts reported income without improving immediate cash flow, can hide rising borrower stress or leverage, and affects valuation and risk assessment much like interest that gets added to a credit-card balance instead of being paid down.

non-accrual status financial

"there were two portfolio companies on non-accrual status, which represented approximately 0.29%"

A loan or credit account is placed in non-accrual status when the lender stops recording expected interest income because the borrower is not making scheduled payments or repayment is doubtful. Think of it like a landlord who stops counting unpaid rent as future income once a tenant stops paying; it signals rising credit problems and potential losses. For investors, non-accrual levels indicate loan quality and can foreshadow write-downs, lower earnings, and increased risk to a lender’s balance sheet.

CLO Reset Transaction financial

"completed the refinancing of a $300 million term debt securitization ... (the CLO Reset Transaction)"

first lien senior secured debt investments financial

"the portfolio consisted of approximately 87.3% first lien senior secured debt investments"

Term SOFR financial

"Class A-R Notes due 2039, which bear interest at Term SOFR plus 1.27%"

Term SOFR is a benchmark interest rate that reflects the cost of borrowing money over a specific period, based on actual transactions in the financial markets. It is used by lenders and borrowers to set the interest rates on loans and financial contracts, helping to ensure rates are fair and transparent. For investors, understanding term SOFR helps gauge borrowing costs and the overall direction of interest rates in the economy.

business development company financial

"has elected to be regulated as a business development company under the Investment Company Act of 1940"

A business development company is a publicly traded investment vehicle that lends to and buys stakes in smaller or privately held companies, acting like a combination of a lender, investor, and business partner. It matters to investors because BDCs offer the potential for higher regular income through dividends and diversified exposure to growing businesses, but they can also carry greater credit and liquidity risk than typical stocks or bonds—think higher-yielding but riskier income instruments.

Earnings Snapshot

Total investment income: $27.3 million · Guidance included

quarter ended June 30, 2026

Total investment income $27.3 million Compared to $31.7 million in the prior-year quarter.

Net investment income $12.0 million Compared to $13.8 million in the prior-year quarter.

Net investment income per share $0.39 Compared to $0.43 in the prior-year quarter and $0.35 in Q1 2026.

NAV per share $13.21 Down from $14.85 at December 31, 2025 and $15.68 at June 30, 2025.

Total return (six months) (4.33)% Compared to 0.78% for the six months ended June 30, 2025.

Guidance

The company expects to announce a supplemental dividend distribution for the third quarter of 2026 in September.

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FAQ

What were Palmer Square Capital BDC (PSBD)'s key Q2 2026 financial results?

PSBD generated $27.3 million in total investment income and $12.0 million in net investment income for Q2 2026, equal to $0.39 per share. In Q2 2025, total investment income was $31.7 million and net investment income was $13.8 million, or $0.43 per share.

What dividend did PSBD declare for the third quarter of 2026?

PSBD declared a Q3 2026 base dividend of $0.36 per share, payable on October 13, 2026, to shareholders of record as of September 25, 2026. The company also expects to announce a supplemental dividend for the quarter in September 2026, consistent with its stated dividend policy.

How did PSBD's NAV per share and total return change by June 30, 2026?

NAV per share was $13.21 as of June 30, 2026, down from $14.85 at December 31, 2025 and $15.68 at June 30, 2025. For the six months ended June 30, 2026, PSBD reported a total return of (4.33)%, compared with 0.78% for the prior-year period.

What is the composition and yield of PSBD's portfolio as of June 30, 2026?

PSBD’s portfolio had $1.1 billion in fair value across 206 companies, with about 87.3% in first lien senior secured debt and 96% in senior secured loans. The weighted average total yield was 11.95%, and only 0.29% of investments (by fair value) were on non-accrual.

What is PSBD's leverage and liquidity position at June 30, 2026?

As of June 30, 2026, PSBD had $696.5 million of total debt outstanding and a debt-to-equity ratio of 1.71x. Cash and cash equivalents were $2.4 million, and available liquidity, including undrawn credit capacity, was about $331.0 million versus $21.5 million of unfunded investment commitments.

What is the CLO Reset Transaction mentioned in PSBD's Q2 2026 disclosure?

On July 15, 2026, PSBD completed a $300 million CLO Reset Transaction for Palmer Square BDC CLO 1, Ltd., issuing $228.00 million of AAA Class A-R notes at Term SOFR plus 1.27% and $72.00 million of AA Class B-R2 notes at Term SOFR plus 1.75%, refinancing its term debt securitization.

false000179477600017947762026-08-052026-08-05

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): August 05, 2026

Palmer Square Capital BDC Inc.

(Exact name of Registrant as Specified in Its Charter)

Maryland			814-01334	84-3665200
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
1900 Shawnee Mission Parkway, Suite 315
Mission Woods, Kansas				66205
(Address of Principal Executive Offices)				(Zip Code)

Registrant’s Telephone Number, Including Area Code: 816 994-3200

(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:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐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(s)		Name of each exchange on which registered
Common Stock, par value $0.001 per share		PSBD		New York Stock Exchange

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 August 5, 2026, Palmer Square Capital BDC Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 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 in this Item 2.02 of this Current Report on Form 8-K, and Exhibit 99.1 attached hereto, is being furnished by the Company in satisfaction of the public disclosure requirements of Item 2.02 of Form 8-K.

In accordance with General Instruction B.2 of Form 8-K, the information included in this Item 2.02 and Exhibit 99.1 attached hereto shall not be deemed to be “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, nor shall such information be deemed incorporated by reference into any filing made by the Company under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”).

Item 7.01 Regulation FD Disclosure.

Additionally, on August 5, 2026, the Company made available on its website, www.palmersquarebdc.com, a supplemental investor presentation with respect to the second quarter 2026 earnings release. The information furnished in this Item 7.01 shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act or the Exchange Act.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1		Press Release, dated August 5, 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, Palmer Square Capital BDC Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			PALMER SQUARE CAPITAL BDC INC.
Date:	August 5, 2026	By:	/s/ Jeffrey D. Fox
			Jeffrey D. Fox, Chief Financial Officer

Exhibit 99.1

Palmer Square Capital BDC Inc. Announces Second Quarter 2026 Financial Results

Declares Third Quarter 2026 Base Dividend of $0.36 Per Share with Supplemental Dividend

Expected to be Announced in September

MISSION WOODS, Kansas, August 5, 2026 — Palmer Square Capital BDC Inc. (NYSE: PSBD) (“PSBD” or the “Company”), an externally managed business development company, today announced its financial results for the second quarter ended June 30, 2026.

Financial and Operating Highlights

•Total investment income of $27.3 million for the second quarter of 2026, compared to $31.7 million for the prior year period

•Net investment income of $12.0 million or $0.39 per share for the second quarter of 2026, compared to $13.8 million or $0.43 per share for the prior year period

•Net asset value of $13.21 per share as of June 30, 2026, compared to $13.30 per share as of March 31, 2026

•Total net realized and unrealized losses of $3.6 million for the second quarter of 2026, compared to losses of $6.7 million for the second quarter of 2025

•As of June 30, 2026, total assets were $1.1 billion and total net assets were $406.2 million

•Debt-to-equity as of June 30, 2026 was 1.71x, compared to 1.70x as of March 31, 2026

•Paid cash distributions to stockholders totaling $0.39 per share for the second quarter of 2026

•Declared a third quarter regular base dividend distribution of $0.36 per share, payable on October 13, 2026, to stockholders of record as of September 25, 2026. In accordance with our dividend policy, we expect to announce a supplemental dividend in September

•In the second quarter, we had only $373.7 thousand of recurring payment-in-kind interest income, or 1.37% of total investment income

“Palmer Square Capital BDC increased and extended our share repurchase program during the second quarter and took proactive steps to improve our liability structure and lower our cost of capital, which we believe will position PSBD to generate greater earnings power beginning in the fourth quarter and continuing into 2027,” said Christopher D. Long, Chairman and Chief Executive Officer of PSBD. “Despite a complex operating environment, we have continued to selectively deploy capital across both the broadly syndicated loan market and private credit, leveraging the breadth of our platform's capabilities across credit markets. Supported by disciplined underwriting, a differentiated investment strategy, and thoughtful capital allocation, we believe PSBD remains well positioned to deliver long-term value for shareholders."

1

$ in thousands, except per share data			For the Quarter Ended
		6/30/26			3/31/26			6/30/25
Financial Highlights
Net Investment Income Per Share1		$	0.39		$	0.35		$	0.43
Net Investment Income		$	12,041		$	11,037		$	13,842
NAV Per Share		$	13.21		$	13.30		$	15.68
Dividends Earned Per Share2		$	0.39		$	0.37		$	0.42
			6/30/26			3/31/26			6/30/25
Portfolio Highlights
Total Fair Value of Investments		$	1,113,377		$	1,154,637		$	1,279,793
Number of Industries			45			44			39
Number of Portfolio Companies			206			214			206
Portfolio Yield3			11.95%			11.73%			10.10%
Senior Secured Loan4			96%			96%			96%
Investments on Non-Accrual5			0.29%			0.00%			0.19%
Total Return6			3.11%			(7.22)%			1.85%
Debt-to-Equity			1.71x			1.70x			1.51x

1.Net investment income for the period divided by the weighted average share count for the period.

2.Dividend amount reflects dividend earned in period.

3.Weighted average total yield of debt and income producing securities at fair value.

4.As a percentage of long-term investments, at fair value.

5.As a percentage of total investments, at fair value. As of June 30, 2026, there were two portfolio companies on non-accrual status, which
represented approximately 0.29% of the total investments at fair value.

6.Total return is calculated as the change in net asset value (“NAV”) per share during the period, plus distributions per share (if any), divided by the beginning NAV per share. Total return is not annualized. Assumes reinvestment of distributions.

Portfolio and Investment Activity

As of June 30, 2026, we had 282 investments in 206 portfolio companies with an aggregate fair value of approximately $1.1 billion. Based on a total fair value of $1.1 billion, including short term investments, the portfolio consisted of approximately 87.3% first lien senior secured debt investments, 5.3% second lien senior secured debt investments, 3.6% short-term investments, 2.5% collateralized loan obligation structured credit funds (“CLOs”) mezzanine and equity investments, 0.6% corporate bond investments, and 0.7% equity investments.

As of June 30, 2026, 98% of the long-term investments based on fair value in our portfolio were at floating rates. At the end of the second quarter, approximately 99.7% of the portfolio at fair value was income producing. There were two portfolio companies on non-accrual status. As of June 30, 2026, the weighted average total yield to maturity of debt and income producing securities at fair value was 11.95%, and weighted average total yield to maturity of debt and income producing securities at amortized cost was 8.43%. For the second quarter of 2026, the principal amount of new investments funded was $72.4 million which included 21 investments at an average value of approximately $3.3 million. For this period, the Company had $109.8 million aggregate principal amount in sales and repayments.

Liquidity and Capital Resources

As of June 30, 2026, the Company had $2.4 million in cash and cash equivalents and approximately $696.5 million in total aggregate principal amount of debt outstanding. Subject to borrowing base and other restrictions, the Company had available liquidity, consisting of cash and undrawn capacity on credit facilities of approximately $331.0 million compared to $21.5 million of unfunded investment commitments as of June 30, 2026.

Recent Developments

On July 15, 2026, the Company completed the refinancing of a $300 million term debt securitization of Palmer Square BDC CLO 1, Ltd. (the “Issuer”), a wholly owned indirect subsidiary of the Company (the “CLO Reset Transaction”). The notes offered in the CLO Reset Transaction were issued by the Issuer, and consist of (i) $228.00 million of AAA Class A-R Notes due 2039, which bear interest at the forward-looking term rate based on the secured overnight financing rate plus 1.27%; and (ii) $72.00 million of AA Class B-R

2

Notes due 2039, which bear interest at Term SOFR plus 1.75%. See Note 13 “Subsequent Events” to the consolidated financial statements for a full description of the CLO Reset Transaction.

On July 1, 2026, PSBD reduced the amount of aggregate commitments to $350 million from $525 million under its Bank of America credit facility.

On August 5, 2026, PSBD’s Board of Directors announced that it had declared a third quarter regular base dividend distribution of $0.36 per share, payable on October 13, 2026, to stockholders of record as of September 25, 2026. We expect to announce an additional quarterly supplemental dividend distribution for the third quarter of 2026 in September.

3

Earnings Conference Call

The Company will host a conference call on Wednesday, August 5, 2026, at 1:00 pm ET to review its financial performance and conduct a question-and-answer session. To participate in the earnings call, participants should register online at the Palmer Square Investor Relations website. To avoid potential delays, please join at least 10 minutes prior to the start of the call. The conference call can be accessed through the following links:

•United States: +1 (888) 596-4144

•International: +1 (646) 968-2525

•Event Plus Entry Passcode: 1949101#

•Live Audio Webcast

A replay of the live conference call will be available shortly after the conclusion of the event and accessible on the events and presentations section of the Palmer Square Investor Relations website.

About Palmer Square Capital BDC Inc.

Palmer Square Capital BDC Inc. (NYSE: PSBD) is an externally managed, non-diversified closed-end management investment company that primarily lends to and invests in corporate debt loans, including but not limited to large private U.S. companies in the broadly syndicated loan market, as well as the direct large cap private credit market. PSBD has elected to be regulated as a business development company under the Investment Company Act of 1940. PSBD’s investment objective is to maximize total return, comprised of current income and capital appreciation. PSBD’s current investment focus is guided by two strategies that facilitate its investment opportunities and core competencies: (1) investing in corporate debt loans and, to a lesser extent, (2) investing in other debt securities which may include collateralized loan obligation debt and equity. PSBD’s investment activities are managed by its investment adviser, Palmer Square BDC Advisor LLC, an affiliate of Palmer Square Capital Management LLC.

Forward-Looking Statements

Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. The forward-looking statements may include statements as to our future base and supplemental dividend distributions and the prospects of our portfolio companies. These and other forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “seek,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue,” “target,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in PSBD’s filings with the SEC. PSBD undertakes no duty to update any forward-looking statement made herein unless required by law. All forward-looking statements speak only as of the date of this press release. Although PSBD 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 PSBD may make directly to you or through reports that in the future may be filed with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

Contacts

Investors

Matt Bloomfield and Jeremy Goff
Palmer Square Capital BDC Inc.
Investors@palmersquarebdc.com

Media

Josh Clarkson

Prosek Partners

PSBD@prosek.com

4

Financial Highlights

		For the Six Months Ended June 30,
		2026		2025
Per Common Share Operating Performance
Net Asset Value, Beginning of Period		$14.85		$16.50
Results of Operations:
Net Investment Income(1)		0.74		0.82
Net Realized and Unrealized Gain (Loss) on Investments(4)		(1.62)		(0.83)
Net Increase (Decrease) in Net Assets Resulting from Operations		(0.88)		(0.01)
Distributions to Common Stockholders
Distributions from Net Investment Income		(0.76)		(0.81)
Net Decrease in Net Assets Resulting from Distributions		(0.76)		(0.81)
Net Asset Value, End of Period		$13.21		$15.68
Shares Outstanding, End of Period		30,743,081		32,218,966
Ratio/Supplemental Data
Net assets, end of period		$406,153,530		$505,213,440
Weighted-average shares outstanding		31,093,997		32,475,330
Total Return(3)		(4.33)%		0.78%
Portfolio turnover		16%		15%
Ratio of operating expenses to average net assets without waiver(2)		14.17%		13.85%
Ratio of operating expenses to average net assets with waiver(2)		14.17%		13.85%
Ratio of net investment income (loss) to average net assets without waiver(2)		10.74%		10.25%
Ratio of net investment income (loss) to average net assets with waiver(2)		10.74%		10.25%

(1)The per common share data was derived by using weighted average shares outstanding.

(2)The ratios reflect an annualized amount.

(3)Total return is calculated as the change in net asset value (“NAV”) per share during the period, plus distributions per share (if any), divided by the beginning NAV per share. Total return is not annualized. Assumes reinvestment of distributions.

(4)Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Consolidated Statements of Operations due to share transactions during the period.

5

Palmer Square Capital BDC Inc.

Consolidated Statement of Assets and Liabilities

		June 30, 2026				December 31, 2025
Assets:		(Unaudited)
Non-controlled, non-affiliated investments, at fair value (amortized cost of $1,242,154,553 and $1,294,556,070, respectively)		$	1,113,377,240			$	1,203,640,318
Cash and cash equivalents			2,448,931				3,217,449
Receivables:
Receivable for sales of investments			3,427,539				2,821,628
Receivable for paydowns of investments			4,175,599				233,930
Due from investment adviser			616,715				616,715
Dividend receivable			127,702				195,710
Interest receivable			8,072,629				8,608,563
Prepaid expenses and other assets			333,323				41,446
Total Assets		$	1,132,579,678			$	1,219,375,759
Liabilities:
Credit facilities (net of deferred financing costs of $4,214,139 and $5,030,068, respectively) (Note 6)		$	394,543,192			$	414,438,758
Notes (net of deferred financing costs of $1,540,292 and $1,609,420, respectively) (Note 6)			301,949,233				302,075,353
Payables:
Payable for investments purchased			12,972,955				20,366,967
Distributions payable			11,994,008				13,442,214
Management fee payable			1,826,659				2,129,141
Incentive fee payable			1,719,824				1,866,531
Accrued other general and administrative expenses			1,420,277				933,623
Total Liabilities		$	726,426,148			$	755,252,587
Commitments and contingencies (Note 9)
Net Assets:
Common Shares, $0.001 par value; 450,000,000 shares authorized; 30,743,081 and 31,260,963 as of June 30, 2026 and December 31, 2025, respectively issued and outstanding		$	30,743			$	31,261
Additional paid-in capital			587,969,410				593,643,044
Total distributable earnings (accumulated deficit)			(181,846,623	)			(129,551,133	)
Total Net Assets		$	406,153,530			$	464,123,172
Total Liabilities and Net Assets		$	1,132,579,678			$	1,219,375,759
Net Asset Value Per Common Share		$	13.21			$	14.85

The accompanying notes are an integral part of these consolidated financial statements.

(Note 6)		See Note 6 to the consolidated financial statements for a description of the Company’s borrowings, including its revolving credit facility with Bank of America, N.A., its credit facility with Wells Fargo Bank, National Association, and its term debt securitization (CLO transaction).
(Note 9)		As of June 30, 2026 and December 31, 2025, the Company had an aggregate of $21.5 million and $21.5 million, respectively, of unfunded commitments to provide debt financing to its portfolio companies. As of each of June 30, 2026 and December 31, 2025, there were no capital calls or draw requests made by the portfolio companies to fund these commitments. Such commitments are generally up to the Company’s discretion to approve or are subject to the satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Company’s consolidated statements of assets and liabilities and are not reflected in the Company’s consolidated statements of assets and liabilities.

6

Palmer Square Capital BDC Inc.

Consolidated Statement of Operations

(unaudited)

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
		2026				2025				2026				2025
Income:
Investment income from non-controlled, non-affiliated investments:
Interest income		$	25,816,102			$	30,023,842			$	50,915,028			$	59,843,505
Dividend income			358,221				481,501				779,355				1,055,837
Payment-in-kind interest income			373,693				801,918				804,654				1,309,768
Other income			748,261				369,659				1,013,954				682,089
Total investment income from non-controlled, non-affiliated investments			27,296,277				31,676,920				53,512,991				62,891,199
Total Investment Income			27,296,277				31,676,920				53,512,991				62,891,199
Expenses:
Incentive fees			1,719,824				1,940,079				3,295,972				3,782,785
Interest expense			10,643,607				12,576,374				21,226,424				25,546,131
Management fees			1,826,658				2,233,077				3,759,546				4,566,752
Professional fees			283,305				251,376				596,908				564,108
Directors fees			37,397				37,397				74,383				74,384
Other general and administrative expenses			744,236				797,088				1,481,858				1,602,359
Total Expenses			15,255,027				17,835,391				30,435,091				36,136,519
Less: Management fee waiver (Note 3)			—				—				—				—
Net expenses			15,255,027				17,835,391				30,435,091				36,136,519
Net Investment Income (Loss)			12,041,250				13,841,529				23,077,900				26,754,680
Realized and unrealized gains (losses) on investments and foreign currency transactions
Net realized gains (losses):
Non-controlled, non-affiliated investments			(3,328,686	)			(5,745,139	)			(14,003,112	)			(11,639,632	)
Total net realized gains (losses)			(3,328,686	)			(5,745,139	)			(14,003,112	)			(11,639,632	)
Net change in unrealized gains (losses):
Non-controlled, non-affiliated investments			(262,380	)			(926,414	)			(37,861,570	)			(16,334,283	)
Total net change in unrealized gains (losses)			(262,380	)			(926,414	)			(37,861,570	)			(16,334,283	)
Total realized and unrealized gains (losses)			(3,591,066	)			(6,671,553	)			(51,864,682	)			(27,973,915	)
Net Increase (Decrease) in Net Assets Resulting from Operations		$	8,450,184			$	7,169,976			$	(28,786,782	)		$	(1,219,235	)
Per Common Share Data:
Basic and diluted net increase (decrease) in net assets resulting from operations		$	0.27			$	0.22			$	(0.93	)		$	(0.04	)
Weighted Average Common Shares Outstanding - Basic and Diluted			31,001,278				32,349,999				31,093,997				32,475,330

The accompanying notes are an integral part of these consolidated financial statements.

(Note 3) On January 22, 2024, PSBD completed its initial public offering (the "IPO"). Prior to the IPO, the base management fee was 2.00% of the average value of the weighted average (based on the number of shares outstanding each day in the quarter) of the Company’s total net assets at the end of the two most recently completed calendar quarters. Palmer Square BDC Advisor LLC (the "Investment Advisor"), however, during any period prior to the IPO, agreed to waive its right to receive management fees in excess of an annual rate of 1.75% of the average value of the weighted average total net assets at the end of each of our two most recently completed calendar quarters. The Investment Advisor will not be permitted to recoup any base management fees waived for any period of time prior to the IPO.

7

Palmer Square Capital BDC Inc.

Portfolio and Investment Activity

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
		2026				2025				2026				2025
New investments:
Gross investments		$	72,369,299			$	92,361,724			$	181,731,937			$	196,684,831
Less: sold investments			(109,836,385	)			(133,281,726	)			(189,776,072	)			(277,651,090	)
Total new investments			(37,467,086	)			(40,920,002	)			(8,044,135	)			(80,966,259	)
Principal amount of investments funded:
First-lien senior secured debt investments		$	66,369,299			$	84,724,520			$	169,659,493			$	182,160,770
Second-lien senior secured debt investments			6,000,000				4,990,000				8,500,000				4,990,000
Corporate bonds			—				1,998,573				1,000,000				1,998,573
Collateralized securities and structured products - debt			—				—				1,406,500				—
Common stock			—				50,158				1,165,944				6,937,015
Preferred Stock			—				598,473				—				598,473
Total principal amount of investments funded			72,369,299				92,361,724				181,731,937				196,684,831
Principal amount of investments sold or repaid:
First-lien senior secured debt investments		$	100,883,564			$	125,479,304			$	168,641,466			$	263,482,677
Second-lien senior secured debt investments			3,211,746				5,032,501				8,796,380				8,236,495
Corporate bonds			728,826				2,005,000				1,740,076				2,005,000
Collateralized securities and structured products - debt			4,614,100				—				9,807,265				2,900,000
CLO Equity			398,149				764,921				790,885				1,026,918
Total principal amount of investments sold or repaid		$	109,836,385			$	133,281,726			$	189,776,072			$	277,651,090

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
		2026				2025				2026				2025
Number of new investment commitments			21				23				62				46
Average new investment commitment amount		$	3,252,928			$	3,145,736			$	2,438,895			$	3,513,716
Weighted average maturity for new investment commitments		5.31 years				5.16 years				5.48 years				5.27 years
Percentage of new debt investment commitments at floating rates			98.90	%			100.00	%			99.50	%			100.00	%
Percentage of new debt investment commitments at fixed rates			1.10	%			0.00	%			0.50	%			0.00	%
Weighted average interest rate of new investment commitments(1)			8.26	%			8.93	%			7.82	%			8.75	%
Weighted average spread over reference rate of new floating rate investment commitments(2)			4.65	%			4.56	%			4.27	%			4.38	%
Weighted average interest rate on long-term investments sold or paid down			8.17	%			8.65	%			8.12	%			8.47	%

(1)New CLO equity investments do not have an ascribed interest rate and are therefore excluded from the calculation.

(2)Variable rate loans bear interest at a rate determined by reference to the CME Term Secured Overnight Financing Rate (“SOFR” or “S”) (which can include one-, three-, or six-month SOFR), which resets periodically based on the terms of the loan agreement. At the borrower’s option, loans may instead reference an alternate base rate (which can include the Federal Funds Effective Rate or the Prime Rate), which also resets periodically based on the terms of the loan agreements. Loans that reference SOFR may include a Credit Spread Adjustment (“CSA”), where the CSA is a defined additional spread amount based on the tenor of SOFR the borrower selects (making the reference rate S+CSA).

8

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