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iREIT+HOYA Capital is the premier income-focused investing service on Seeking Alpha. Our focus is on income-producing asset classes that offer the opportunity for sustainable portfolio income , diversification , and inflation hedging . Get started with a Free Two-Week Trial and take a look at our top ideas across our exclusive income-focused portfolios.Rewards and risks go hand in hand, and that goes for virtually all investments. For example, a quality asset is only a good investment if bought at a good pr ...

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Financial Data and Key Metrics Changes - The company reported net investment income (NII) of $0.46 per share, unchanged from the prior quarter, resulting in an annualized NII yield of 9.5% [5][20] - Net asset value (NAV) decreased to $19.28 per share as of September 30, down from $19.55 per share as of June 30, primarily due to unrealized and realized losses from certain portfolio companies affected by tariffs [5][20] Business Line Data and Key Metrics Changes - The investment portfolio totaled approximately $1.6 billion at fair value, with 187 companies, and an average investment size of about 0.6% of the total portfolio [7] - The portfolio consists primarily of first-lien loans, representing 90% of the portfolio at fair value [7] - The weighted average yield of income-producing securities at cost remained stable at 10.4% [14] Market Data and Key Metrics Changes - The macroeconomic environment in the U.S. remains resilient, with expectations of near-term growth in loan activity due to recent Federal Reserve rate cuts and clarity on tariff policies [6] - The company has no exposure to recent bankruptcies, indicating a focus on governance by working with established private equity sponsors [6][8] Company Strategy and Development Direction - The company is focused on strong cash flow generation, tight EBITDA definitions, and enhanced monitoring rights to proactively manage the portfolio [6] - The board declared a regular dividend of $0.42 per share for the fourth quarter, representing a 9% and 12% annualized dividend yield based on NAV and stock price, respectively [8][24] - The company anticipates that a lower base rate environment may gradually reduce portfolio yields and pressure net investment income, but believes it is well-positioned to address these challenges [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term prospects of the company, citing a strong capital structure and diversified portfolio [25] - The company noted that while tariff impacts have been identified, the overall portfolio remains resilient, with most borrowers experiencing steady revenue and EBITDA growth [17][18] Other Important Information - The company ended the quarter with a net debt to equity ratio of 1.20 times, providing flexibility for portfolio growth [10] - The weighted average interest coverage of the companies in the investment portfolio was stable at 2.1 times, indicating strong earnings durability [14] Q&A Session Summary Question: What is the probability of maintaining NII coverage of the dividend at 100% or more? - Management believes that available levers will allow them to cover the base dividend with NII in the near term, with potential for increased non-interest-related income [27][28] Question: Has the ability of exposed companies to handle tariffs deteriorated? - Management indicated that overall, companies have responded well to tariff pressures, although two specific companies have shown a need for a longer recovery period [30][32] Question: What is the state of competition in the lower-middle market? - Management acknowledged spread compression in the market but emphasized that they are still able to secure high-quality transactions with appropriate risk-adjusted returns [34][36] Question: What drove the increase in spreads on new investments? - The company has maintained new origination spreads around 500 over SOFR, driven by a mix of incremental activity from existing portfolio companies and opportunities in specific market segments [41][42] Question: Are there any non-recurring items in earnings this quarter? - Management confirmed that there were no significant non-recurring items, with core interest income representing the majority of total revenue [51]

Crescent Capital BDC, Inc. Quarterly Earnings Presentation September 30, 2025 Disclaimer and Forward-Looking Statement This presentation (the "Presentation") has been prepared by Crescent Capital BDC, Inc. (together with its consolidated subsidiaries, "CCAP," "Crescent BDC" or the "Company") and may be used for informational purposes only. This Presentation contains summaries of certain financial and statistical information about the Company and should be viewed in conjunction with the Company's most recent ...

分组1 - Crescent Capital BDC reported quarterly earnings of $0.46 per share, missing the Zacks Consensus Estimate of $0.47 per share, and down from $0.64 per share a year ago, representing an earnings surprise of -2.13% [1] - The company posted revenues of $41.35 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 2.52%, and down from $51.63 million year-over-year [2] - Crescent Capital BDC shares have declined approximately 25.9% since the beginning of the year, contrasting with the S&P 500's gain of 16.4% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $41.56 million, and for the current fiscal year, it is $1.83 on revenues of $169.11 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is currently in the bottom 11% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Financial Performance - Crescent Capital BDC reported net investment income of $0.46 per share and net income of $0.19 per share for Q3 2025, with a net asset value (NAV) per share of $19.28[2] - Investment income for Q3 2025 was $41.4 million, a decrease from $43.0 million in Q2 2025, primarily due to a decline in interest income[6] - Total investment income for the three months ended September 30, 2025, was $41.352 million, a decrease of 20% from $51.632 million in the same period of 2024[15] - Net investment income for the three months ended September 30, 2025, was $16.929 million, down 28% from $23.540 million in the prior year[15] - Net investment income per share (basic and diluted) for the three months ended September 30, 2025, was $0.46, down from $0.64 in the same period of 2024[15] Dividends - The company declared a fourth quarter 2025 regular cash dividend of $0.42 per share, payable on January 15, 2026[3] Investments - Total investments at fair value decreased to $1,580.7 million as of September 30, 2025, down from $1,600.7 million as of June 30, 2025[4] - The company invested $73.9 million across 7 new portfolio companies during Q3 2025, compared to $57.5 million across 3 new portfolio companies in Q2 2025[5] - The weighted average yield on income-producing securities at cost was 10.4% for Q3 2025, unchanged from Q2 2025[4] - Net realized and unrealized losses on investments for the three months ended September 30, 2025, amounted to $9.827 million, compared to losses of $8.216 million in the same period of 2024[15] Expenses - Total net expenses for Q3 2025 were $24.5 million, down from $26.1 million in Q2 2025[7] - Total expenses for the three months ended September 30, 2025, were $24.165 million, a decrease of 12% from $27.544 million in the same period of 2024[15] Assets and Liabilities - As of September 30, 2025, the company had $27.8 million in cash and cash equivalents and $239.8 million of undrawn capacity on its credit facilities[8] - The debt to equity ratio was 1.23x as of September 30, 2025[8] Net Assets - The company had a net increase in net assets resulting from operations of $7.1 million for Q3 2025[4] - The net increase in net assets resulting from operations for the three months ended September 30, 2025, was $7.102 million, compared to $15.268 million in the same period of 2024[15] Company Overview - Crescent BDC manages over $48 billion in assets, focusing on below investment grade credit through various debt securities[17] - Crescent BDC aims to maximize total return for stockholders through capital solutions for middle market companies with strong growth prospects[16] - The company is externally managed by Crescent Cap Advisors, LLC, a subsidiary of Crescent[16] - Crescent BDC has elected to be regulated as a business development company under the Investment Company Act of 1940[16]

Core Insights - Crescent Capital BDC reported net investment income of $0.46 per share and net income of $0.19 per share for the quarter ended September 30, 2025, with a net asset value (NAV) per share of $19.28 [1][3] Financial Performance - Total investments at fair value decreased to $1,580.7 million as of September 30, 2025, from $1,600.7 million in June 2025 and $1,591.4 million in September 2024 [3] - Total assets were $1,627.6 million, down from $1,654.4 million in June 2025 and $1,645.0 million in September 2024 [3] - Total net assets decreased to $714.1 million from $724.7 million in June 2025 and $748.8 million in September 2024 [3] - Investment income fell to $41.4 million from $43.0 million in the previous quarter, with interest income decreasing to $38.8 million [3][4] - Net realized losses were $5.0 million, compared to losses of $2.9 million in the previous quarter [3][4] Dividend Declarations - The Board declared a fourth quarter 2025 regular cash dividend of $0.42 per share, payable on January 15, 2026, to stockholders of record as of December 31, 2025 [2] Portfolio & Investment Activity - As of September 30, 2025, the company had investments in 187 portfolio companies, with an aggregate fair value of $1,580.7 million [4] - The company invested $73.9 million across 7 new portfolio companies during the quarter, with $86.0 million in exits, sales, and repayments [5][4] Liquidity and Capital Resources - As of September 30, 2025, the company had $27.8 million in cash and cash equivalents and $239.8 million of undrawn capacity on its credit facilities [7] - The weighted average cost of debt was 5.99%, with a debt to equity ratio of 1.23x [7] Conference Call - A conference call is scheduled for November 13, 2025, to discuss the financial results for the quarter ended September 30, 2025 [8]

Investment Performance - As of September 30, 2025, the total investments at fair value amounted to $1,580.7 million, a slight decrease from $1,598.9 million as of December 31, 2024[349]. - The weighted average yield on income-producing securities (at cost) was 10.4% as of September 30, 2025, compared to 10.9% as of December 31, 2024[350]. - The company made new investments totaling $73.9 million for the three months ended September 30, 2025, compared to $72.7 million for the same period in 2024[350]. - Proceeds from investments sold or repaid totaled $86.0 million for the three months ended September 30, 2025, compared to $92.3 million for the same period in 2024[350]. - The portfolio comprised 187 companies as of September 30, 2025, an increase from 185 companies as of December 31, 2024[350]. - Total investment income for the three months ended September 30, 2025, was $41.4 million, a decrease from $51.6 million in the same period of 2024[357]. - Net investment income for the nine months ended September 30, 2025, was $50.4 million, compared to $68.5 million in 2024[357]. - For the three months ended September 30, 2025, net investment income was $16.9 million or $0.46 per share, a decrease from $23.5 million or $0.64 per share in the same period of 2024[370]. - For the nine months ended September 30, 2025, net investment income was $50.4 million or $1.36 per share, down from $68.5 million or $1.85 per share in 2024[370]. Debt and Financing - 97.4% of the debt in the portfolio bore a floating rate at fair value as of September 30, 2025[350]. - The company utilizes leverage to enhance yield, with an asset coverage ratio requirement of at least 150% after borrowing[347]. - As of September 30, 2025, total performing debt investments amounted to $1,443.9 million, representing 96.7% of the amortized cost, with a fair value of $1,433.3 million, or 98.4% of fair value[351]. - Non-accrual debt investments increased to 3.3% of total debt investments at cost and 1.6% at fair value as of September 30, 2025, compared to 2.2% and 0.9% respectively as of December 31, 2024[352]. - Interest income decreased from $47.8 million for the three months ended September 30, 2024, to $38.8 million for the same period in 2025, primarily due to a decline in benchmark rates[358]. - Total net expenses for the three months ended September 30, 2025, were $24.5 million, down from $28.1 million in 2024[362]. - Interest and other debt financing costs decreased to $13.9 million for the three months ended September 30, 2025, from $16.1 million in 2024, due to lower benchmark rates[363]. - The combined weighted average interest rate of aggregate borrowings for the nine months ended September 30, 2025, was 6.52%, down from 7.23% in 2024[379]. - Total debt as of September 30, 2025, was $1,121.6 million, an increase from $881.8 million in December 2024[377]. - The asset coverage ratio was 180% as of September 30, 2025, down from 183% as of December 31, 2024[397]. - The company had notional exposure to foreign currency forward contracts totaling £16.9 million, CHF 18.7 million, AUD $44.8 million, and SEK 11.6 million as of September 30, 2025[409]. Regulatory Compliance - The company is required to invest at least 70% of its assets in qualifying assets as per the 1940 Act[337]. - The company was in compliance with asset coverage requirements under the 1940 Act as of September 30, 2025[376]. Management and Fees - The management fees and incentive fees paid to the Adviser are significant components of the company's operating expenses[343]. - Management fees for the nine months ended September 30, 2025, were $15.3 million, slightly up from $15.0 million in the same period of 2024[364]. Losses and Dividends - The company recorded a net realized loss on investments of $5.0 million for the three months ended September 30, 2025[357]. - Net realized losses on investments for the three months ended September 30, 2025, were $(5.0) million, compared to realized gains of $3.8 million in 2024[371]. - A regular fourth quarter cash dividend of $0.42 per share was declared, payable on January 15, 2026[400]. Cash and Commitments - As of September 30, 2025, the company had $27.8 million in cash and cash equivalents and $239.8 million of undrawn capacity on credit facilities[375]. - Aggregate unfunded commitments totaled $212.5 million as of September 30, 2025, unchanged from December 31, 2024[398].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Crescent Capital BDC (CCAP) due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected on November 12, with a consensus EPS estimate of $0.47, reflecting a year-over-year decrease of 26.6%. Revenues are projected at $42.42 million, down 17.8% from the previous year [3][4]. - The consensus EPS estimate has been revised down by 4.17% over the last 30 days, indicating a bearish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a negative Earnings ESP of -1.43% for Crescent Capital BDC, suggesting analysts have become more pessimistic about the company's earnings prospects [12]. - The stock currently holds a Zacks Rank of 4, making it challenging to predict an earnings beat [12]. Historical Performance - In the last reported quarter, Crescent Capital BDC met the expected EPS of $0.46, resulting in no surprise. Over the past four quarters, the company has only beaten consensus EPS estimates once [13][14]. Comparison with Industry Peers - Blackstone Secured Lending Fund (BXSL), another player in the same industry, is expected to report an EPS of $0.8, indicating a year-over-year decline of 12.1%. Its revenues are projected to be $351.28 million, up 2.4% from the previous year [18][19]. - Blackstone Secured Lending Fund has a positive Earnings ESP of +4.18% and a Zacks Rank of 3, suggesting a higher likelihood of beating the consensus EPS estimate [19][20].