Group 1 - The article emphasizes that it is a favorable time for income investors despite recent market rallies, as some stocks have been significantly undervalued and may take time to recover to previous valuations [2] - The focus is on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] Group 2 - The service mentioned is iREIT+HOYA Capital, which specializes in income-focused investing and offers a free two-week trial for potential investors [1]

Group 1 - Crescent Capital BDC, Inc. (CCAP) is experiencing significant activity in the options market, particularly with the Sept 19, 2025 $10.00 Call showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Analysts have a mixed outlook on Crescent Capital, with a Zacks Rank of 3 (Hold) and the company positioned in the bottom 20% of the Zacks Industry Rank; however, there has been a slight upward revision in earnings estimates for the current quarter from 46 cents to 48 cents per share [3] Group 2 - The high implied volatility surrounding Crescent Capital may indicate a trading opportunity, as options traders often seek to sell premium on such options, hoping the stock does not move as much as expected by expiration [4]

Core Insights - The article discusses the author's transition from a career in publishing to finance, emphasizing the importance of building an income portfolio using ETFs and CEFs [1]. Group 1 - The author graduated in Languages in 1988 and worked as an editor for 25 years before shifting focus to finance in 2005 [1]. - After losing a job in 2013, the author dedicated efforts to creating an income portfolio, highlighting the use of ETFs and CEFs as investment vehicles [1].

Group 1 - The article discusses two Business Development Companies (BDCs) and their deviation from prudent investment strategies prior to the Q2 2025 earnings season [1] - Roberts Berzins has over a decade of experience in financial management, focusing on corporate financial strategies and large-scale financings [1] - Berzins has contributed to institutionalizing the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [1] Group 2 - The article highlights Berzins' involvement in developing national SOE financing guidelines and frameworks for private capital in affordable housing [1] - Berzins holds a CFA Charter and an ESG investing certificate, and has experience with the Chicago Board of Trade [1] - The article emphasizes Berzins' active participation in thought-leadership activities to support the development of capital markets in the Baltic region [1]

Financial Data and Key Metrics Changes - The company reported net investment income (NII) of $0.46 per share for Q2 2025, an increase from $0.45 per share in Q1 2025. Excluding one-time accelerated amortization, NII was $0.48 per share [5][21] - NAV per share decreased by approximately 0.4% to $19.55, down from $19.62 at the end of Q1 2025, primarily due to a special dividend of $0.05 per share paid during the quarter [6][22] - The company maintained a 110% base dividend coverage for the quarter [6] Business Line Data and Key Metrics Changes - The investment portfolio totaled over $1.6 billion at fair value, consisting of 187 companies with an average investment size of approximately 0.6% of the total portfolio [9] - First lien loans represented 91% of the portfolio at fair value, indicating a strong focus on senior secured debt [11] Market Data and Key Metrics Changes - Deal activity remained constrained in Q2 2025 due to ongoing tariff discussions and regulatory uncertainty, impacting M&A volume [6] - The weighted average yield of income-producing securities remained stable at 10.4% [18] Company Strategy and Development Direction - The company focuses on disciplined credit underwriting, capital preservation, and strong free cash flow generation, particularly in the lower middle market [26] - A $20 million stock repurchase program was approved to opportunistically repurchase shares, reflecting confidence in the company's valuation [15] Management's Comments on Operating Environment and Future Outlook - Management expressed that the current discount to NAV is unwarranted and highlighted the company's long-term performance track record, which has outperformed public BDC averages [14][15] - The company remains optimistic about its ability to navigate market volatility and maintain a stable NAV profile [26] Other Important Information - The company declared a regular dividend of $0.42 per share for Q3 2025, payable on October 15, 2025 [12][24] - The company will not pay a Q3 supplemental dividend as the measurement test cap exceeded 50% of this quarter's excess available earnings [25] Q&A Session Summary Question: Credit quality concerns regarding the watch list - Management acknowledged a slight increase in the watch list to 14% but emphasized a proactive approach to monitoring investments and maintaining transparency about portfolio health [29][30][31] Question: Impact of tariffs on portfolio companies - Management indicated that the direct impact of tariffs on the portfolio remains low and that companies are proactively managing tariff exposure through pricing power and alternative sourcing strategies [36][38][40] Question: Future portfolio growth and repositioning - Management stated that while they do not expect significant net portfolio growth, they are focused on rotating acquired assets into Crescent-originated opportunities without sacrificing diversification [42][46][49] Question: Evaluation of unitranche investments - Management noted that unitranche investments remain a small part of the portfolio, and they are opportunistic in pursuing such opportunities, ensuring control over the capital structure [52][54] Question: Operating leverage from declining energy prices - Management clarified that fuel input costs are not a significant component of the cost structure for most borrowers, and while some benefits may arise, they do not expect it to materially impact portfolio performance [57][58] Question: Second lien loan strategy - Management confirmed that second lien loans will not become a large component of the portfolio, maintaining a focus on first lien investments due to risk considerations [61][62]

Financial Performance - Net investment income (NII) per share for Q2 2025 was $0.46, compared to $0.45 in the previous quarter[19] - Net realized and unrealized losses on investments per share for Q2 2025 were ($0.05), compared to ($0.34) for the prior quarter[19] - Net income per share for Q2 2025 was $0.41, compared to $0.11 for the prior quarter[19] - NAV per share as of June 30, 2025, was $19.55[19] - A regular dividend of $0.42 per share was declared for Q3 2025[19] - Total net assets were $725 million as of Q2 2025[11, 21] Portfolio Composition - Total portfolio investments were valued at $1,601 million as of June 30, 2025, consisting of 187 portfolio companies across 20 industries[11, 19, 35] - 91% of the portfolio comprised of senior secured first lien and unitranche first lien investments by fair value[19, 35] - 97% of debt investments are floating rate[22, 35, 44] Capital Structure and Liquidity - The company has a strong liquidity profile with $26.1 million in cash and cash equivalents and restricted cash[19, 24] - Undrawn debt capacity was $227.2 million as of June 30, 2025[19, 63, 65] - The debt-to-equity ratio was 1.23x[11, 21, 24]

Group 1: Earnings Performance - Crescent Capital BDC reported quarterly earnings of $0.46 per share, matching the Zacks Consensus Estimate, but down from $0.59 per share a year ago [1] - The company had a revenue of $42.99 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 2.02%, but down from $48.95 million year-over-year [2] - Over the last four quarters, Crescent Capital BDC has surpassed consensus EPS estimates only once [1] Group 2: Stock Performance and Outlook - Crescent Capital BDC shares have declined approximately 24% since the beginning of the year, contrasting with the S&P 500's gain of 9.6% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.46 for the coming quarter and $1.81 for the current fiscal year [4][7] - The Zacks Rank for Crescent Capital BDC is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Financial - SBIC & Commercial Industry, to which Crescent Capital BDC belongs, is currently in the bottom 20% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly affect stock performance [5][8]

Core Viewpoint - Crescent Capital BDC, Inc. reported its financial results for the quarter ended June 30, 2025, highlighting a net investment income of $0.46 per share and a net income of $0.41 per share, with a net asset value (NAV) per share of $19.55 [1][4]. Financial Performance - Net investment income for the second quarter was impacted by a one-time accelerated amortization of $0.02 per share related to deferred financing costs [1]. - Investment income increased to $43.0 million from $42.1 million in the previous quarter, with interest income rising to $40.1 million [6]. - Total net expenses for the quarter were $26.1 million, compared to $25.5 million in the previous quarter [7]. Dividend Declarations - The Board declared a regular cash dividend of $0.42 per share for the third quarter of 2025, payable on October 15, 2025 [2]. - A special dividend of $0.05 per share will be paid on September 15, 2025 [2]. Share Repurchase Program - The Board authorized a stock repurchase program to buy back up to $20.0 million of common stock in the open market [3]. Investment Portfolio - As of June 30, 2025, the company had investments in 187 portfolio companies with a fair value of $1,600.7 million [5]. - The portfolio comprised various asset types, with the largest being unitranche first lien loans at $1,043.6 million, representing 65.2% of the total investments [5]. Liquidity and Capital Resources - As of June 30, 2025, the company had $26.1 million in cash and cash equivalents and $227.2 million of undrawn capacity on its credit facilities [8]. - The weighted average cost of debt was 6.09%, and the debt to equity ratio stood at 1.23x [8].

Core Insights - Crescent Capital BDC reported net investment income of $0.46 per share and net income of $0.41 per share for the quarter ended June 30, 2025, with a net asset value (NAV) per share of $19.55 [1][4] Financial Performance - Total investment income increased to $43.0 million for the quarter ended June 30, 2025, compared to $42.1 million for the previous quarter [6] - Net investment income for the quarter was $16.9 million, slightly up from $16.6 million in the prior quarter [4][6] - The company experienced net realized losses of $2.9 million and a net change in unrealized gains of $1.0 million for the quarter [4][6] Dividend Declarations - The Board declared a regular cash dividend of $0.42 per share for the third quarter of 2025, payable on October 15, 2025 [2] - A special dividend of $0.05 per share will be paid on September 15, 2025 [2] Share Repurchase Program - The Board authorized a stock repurchase program to buy back up to $20.0 million of common stock in the open market [3] Investment Portfolio - As of June 30, 2025, the company had investments in 187 portfolio companies with a fair value of $1,600.7 million [5] - The portfolio consisted primarily of unitranche first lien loans, making up 65.2% of the total investments [5] Liquidity and Capital Resources - The company had $26.1 million in cash and cash equivalents and $227.2 million of undrawn capacity on its credit facilities as of June 30, 2025 [8] - The weighted average cost of debt was 6.09%, with a debt to equity ratio of 1.23x [8] Upcoming Events - A conference call to discuss the financial results for the quarter ended June 30, 2025, is scheduled for August 14, 2025 [9]

[Crescent Capital BDC, Inc. Q2 2025 Earnings Release](index=1&type=section&id=Crescent%20Capital%20BDC%2C%20Inc.%20Q2%202025%20Earnings%20Release) [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) Crescent BDC reported Q2 2025 net investment income of **$0.46 per share** and **NAV of $19.55 per share**, declared a **$0.42 dividend**, and authorized a **$20 million stock repurchase program** Q2 2025 Key Per-Share Metrics | Metric | Value ($ per Share) | | :--- | :--- | | Net Investment Income | $0.46 | | Net Income | $0.41 | | Net Asset Value (NAV) | $19.55 | - The Board of Directors declared a third-quarter 2025 regular cash dividend of **$0.42 per share**[3](index=3&type=chunk) - A new stock repurchase program was authorized to buy back up to **$20.0 million** of common stock when trading below NAV[4](index=4&type=chunk) Quarterly Financial Trends | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Net asset value per share | $19.55 | $19.62 | $20.30 | | Net investment income per share | $0.46 | $0.45 | $0.59 | | Investments, at fair value | $1,600.7M | $1,620.7M | $1,610.8M | [Portfolio and Investment Activity](index=1&type=section&id=Portfolio%20and%20Investment%20Activity) The company's Q2 2025 portfolio fair value was **$1.6 billion**, primarily first lien debt, with net investment outflows Portfolio Composition by Asset Type (June 30, 2025) | Investment Type | Fair Value ($M) | Percentage | | :--- | :--- | :--- | | Senior secured first lien | $381.3 | 23.8% | | Unitranche first lien | $1,043.6 | 65.2% | | Unitranche first lien - last out | $26.2 | 1.6% | | Senior secured second lien | $23.4 | 1.5% | | Other (Unsecured, Equity, etc.) | $126.2 | 7.9% | | **Total investments** | **$1,600.7** | **100.0%** | Q2 2025 Investment Activity | Activity | Amount ($M) | | :--- | :--- | | New Investments & Fundings | $57.5 | | Exits, Sales & Repayments | $92.7 | [Results of Operations](index=2&type=section&id=Results%20of%20Operations) Q2 2025 total investment income increased to **$43.0 million** sequentially, driven by higher dividend income, with total net expenses also rising Investment Income Comparison (QoQ) | Income Type | Q2 2025 ($M) | Q1 2025 ($M) | | :--- | :--- | :--- | | Interest Income | $40.1 | $39.7 | | Dividend Income | $1.8 | $1.5 | | Other Income | $1.0 | $0.9 | | **Total Investment Income** | **$43.0** | **$42.1** | - Total net expenses for the three months ended June 30, 2025, were **$26.1 million**, compared to **$25.5 million** for the quarter ended March 31, 2025[9](index=9&type=chunk) [Liquidity and Capital Resources](index=2&type=section&id=Liquidity%20and%20Capital%20Resources) Crescent BDC maintained **$26.1 million** in cash and **$227.2 million** undrawn credit capacity, with a stable **1.23x** debt-to-equity ratio Liquidity and Leverage (June 30, 2025) | Metric | Value | | :--- | :--- | | Cash and Cash Equivalents | $26.1 million | | Undrawn Credit Facility Capacity | $227.2 million | | Weighted Average Cost of Debt | 6.09% | | Debt to Equity Ratio | 1.23x | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show total net assets of **$724.7 million** and Q2 net investment income of **$16.9 million** [Consolidated Statements of Assets and Liabilities](index=6&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) The balance sheet shows total assets of **$1.65 billion** and total liabilities of **$929.7 million**, with total net assets at **$724.7 million** Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $1,654,444 | $1,656,274 | | Total Liabilities | $929,728 | $915,637 | | **Total Net Assets** | **$724,716** | **$740,637** | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 operations generated **$43.0 million** in total investment income and **$16.9 million** in net investment income, with a **$15.0 million** net increase in net assets Income Statement Summary (Three Months Ended June 30, in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Total Investment Income | $42,992 | $48,951 | | Net Expenses | $25,705 | $26,815 | | **Net Investment Income** | **$16,887** | **$21,703** | | Net Realized/Unrealized Losses | $(1,874) | $(1,499) | | **Net Increase in Net Assets** | **$15,013** | **$20,385** | [Corporate Information and Events](index=2&type=section&id=Corporate%20Information%20and%20Events) Crescent BDC will host a conference call on August 14, 2025, to discuss Q2 results, managed by Crescent Capital Group with **$47 billion** in AUM - The company will host a conference call and webcast on Thursday, August 14, 2025, at 12:00 p.m. (Eastern Time) to discuss the quarterly results[11](index=11&type=chunk) - Crescent BDC is externally managed by Crescent Cap Advisors, LLC, a subsidiary of Crescent Capital Group, which has **$47 billion** of assets under management[18](index=18&type=chunk)[19](index=19&type=chunk)