Overview - Fidus Investment Corporation has a diversified investment portfolio totaling $1.1 billion as of June 30, 2025, invested in 92 companies[12] - The company targets firms with annual revenues between $10 million and $150 million[20] - Fidus' senior investment professionals have an average of over 25 years of relevant experience[31] Investment Strategy & Performance - Fidus targets investments between $5 million and $35 million per portfolio company[18] - The company's cumulative realized net capital gains from equity investments since IPO is $175.2 million[37] - The adjusted NAV per share at June 30, 2025, was $19.57, a 35.3% premium to the IPO level of $14.46[37] - Fidus has a historical annual median GAAP ROE of 12.5% since its initial IPO[41] Portfolio & Financial Review - The weighted average debt yield of the investment portfolio is 13.1%[47] - Secured debt investments constitute 82.5% of the portfolio[49] - Equity represents 12.0% of portfolio fair value versus cost of 8.0%[58] - The company maintains an attractive 11.2% dividend yield based on total LTM dividends of $2.26 per share as of June 30, 2025[68]

Group 1: Earnings Performance - Fidus Investment reported quarterly earnings of $0.57 per share, exceeding the Zacks Consensus Estimate of $0.53 per share, with an earnings surprise of +7.55% [1] - The company posted revenues of $39.97 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.35%, compared to year-ago revenues of $35.66 million [2] - Over the last four quarters, Fidus Investment has consistently surpassed consensus EPS estimates [2] Group 2: Stock Performance and Outlook - Fidus Investment shares have declined approximately 1.3% since the beginning of the year, while the S&P 500 has gained 7.9% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.53 for the coming quarter and $2.10 for the current fiscal year [4][7] - The estimate revisions trend for Fidus Investment was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 3: Industry Context - The Financial - SBIC & Commercial Industry, to which Fidus Investment belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, which may impact stock performance [8]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Fidus reported strong Q2 2025 results, with adjusted net investment income at $20.0 million and Q3 dividends of $0.57 per share | Metric | Q2 2025 Value | | :-------------------------------- | :------------ | | Total investment income | $40.0 million | | Net investment income | $18.6 million | | Adjusted net investment income | $20.0 million | | Adjusted net investment income per share | $0.57 | | Investments made | $94.5 million | | Proceeds from repayments/realizations | $109.3 million | | Total dividends paid (Q2 2025) | $0.54 per share | | NAV as of June 30, 2025 | $692.3 million | | NAV per share as of June 30, 2025 | $19.57 | | Estimated spillover income | $49.0 million | | Estimated spillover income per share | $1.39 | - Management highlighted the portfolio's continued strong performance and sound credit quality, with ample liquidity to build the portfolio and generate attractive risk-adjusted returns[3](index=3&type=chunk) [Second Quarter 2025 Operating Results](index=2&type=section&id=Second%20Quarter%202025%20Operating%20Results) Fidus's Q2 2025 total investment income increased 12.1% to $39.97 million, driving net investment income up 9.9% to $18.6 million | Metric | Q2 2025 ($M) | Q2 2024 ($M) | $ Change | % Change | | :-------------------------------- | :----------- | :----------- | :------- | :------- | | Interest income | 32.211 | 31.507 | 0.704 | 2.2% | | Payment-in-kind interest income | 2.451 | 1.845 | 0.606 | 32.8% | | Dividend income | 0.631 | 0.357 | 0.274 | 76.8% | | Fee income | 3.884 | 1.522 | 2.362 | 155.2% | | Interest on idle funds | 0.793 | 0.433 | 0.360 | 83.1% | | **Total investment income** | **39.970** | **35.664** | **4.306** | **12.1%** | | **Net investment income** | **18.628** | **16.950** | **1.678** | **9.9%** | | Net investment income per share | 0.53 | 0.53 | - | 0.0% | | **Adjusted net investment income** | **19.959** | **18.380** | **1.579** | **8.6%** | | Adjusted net investment income per share | 0.57 | 0.57 | - | 0.0% | | Net increase in net assets from operations | 25.284 | 24.099 | 1.185 | 4.9% | | Net increase in net assets from operations per share | 0.72 | 0.75 | (0.03) | (4.0%) | - The **$4.3 million** increase in total investment income was primarily driven by a **$2.4 million** increase in fee income (prepayment and origination fees), a **$1.3 million** increase in total interest income, and a **$0.3 million** increase in dividend income[6](index=6&type=chunk) - Total expenses increased by **$2.6 million (14.0%)** to **$21.3 million**, mainly due to a **$1.7 million** increase in interest and financing expenses, a **$0.4 million** net increase in base management fee, and a **$0.3 million** increase in income incentive fee[7](index=7&type=chunk) - Net realized loss on investments, net of income tax, was **$(7.6) million** for Q2 2025, compared to a gain of **$9.2 million** in Q2 2024[9](index=9&type=chunk) [Portfolio and Investment Activities](index=3&type=section&id=Portfolio%20and%20Investment%20Activities) Fidus's $1.1 billion portfolio (92 companies) as of June 30, 2025, featured 71.1% variable rate debt (13.1% yield) and four new investments | Metric | Value as of June 30, 2025 | | :-------------------------------- | :------------------------ | | Fair value of investment portfolio | $1.1 billion | | Number of active portfolio companies | 92 | | Portfolio investments as % of cost basis | 101.8% | | Variable rate debt investments | $718.6 million (71.1% of debt portfolio) | | Weighted average yield on debt investments | 13.1% | | Average active portfolio company investment (amortized cost) | $12.3 million | - New portfolio company investments in Q2 2025 included: * E-PlanSoft Buyer, LLC: **$8.0 million** first lien debt and **$1.5 million** preferred equity * Laboratory Testing, LLC: **$5.0 million** first lien debt, **$0.4 million** preferred equity, **$0.4 million** common equity, and additional commitments * Pronto Plumbing & Drain, Inc.: **$1.5 million** first lien debt, **$0.6 million** common equity, and additional commitments * True Environmental Inc.: **$20.0 million** first lien debt, **$0.5 million** common equity, and additional commitments[14](index=14&type=chunk) [Liquidity and Capital Resources](index=3&type=section&id=Liquidity%20and%20Capital%20Resources) Fidus maintained strong liquidity with $91.2 million in cash and $140.0 million of unused credit capacity as of June 30, 2025 | Metric | Value as of June 30, 2025 | | :-------------------------------- | :------------------------ | | Cash and cash equivalents | $91.2 million | | Unused capacity under Credit Facility | $140.0 million | | SBA debentures outstanding | $202.0 million | | January 2026 Notes outstanding | $100.0 million | | November 2026 Notes outstanding | $125.0 million | | March 2030 Notes outstanding | $100.0 million | | Weighted average interest rate on total debt | 4.8% | - During Q2 2025, Fidus received **$7.5 million** from its ATM Program, **$20.0 million** from SBA debentures, and redeemed **$25.0 million** of its January 2026 Notes[11](index=11&type=chunk) [Dividends](index=3&type=section&id=Dividends) The Board declared a total dividend of $0.57 per share for Q3 2025, comprising a $0.43 base and $0.14 supplemental dividend | Dividend Type | Amount Per Share (Q3 2025) | | :-------------------- | :------------------------- | | Base Dividend | $0.43 | | Supplemental Dividend | $0.14 | | **Total Dividend** | **$0.57** | - Dividends are payable on September 25, 2025, to stockholders of record as of September 18, 2025[12](index=12&type=chunk) - Fidus has a dividend reinvestment plan (DRIP) where stockholders automatically reinvest dividends into additional common stock unless they opt out[15](index=15&type=chunk) [Subsequent Events](index=4&type=section&id=Subsequent%20Events) After quarter-end, Fidus made a new investment in Sogno Toscano, LLC, realized a gain from PowerGrid Services, and exited Choice Technology Solutions - On July 2, 2025, Fidus invested **$8.5 million** in first lien debt and **$4.3 million** in preferred equity in Sogno Toscano, LLC[16](index=16&type=chunk) - On July 2, 2025, Fidus received a distribution from PowerGrid Services Acquisition, LLC, resulting in a realized gain of **$0.9 million**[16](index=16&type=chunk) - On July 30, 2025, Fidus exited its first lien debt investment in Choice Technology Solutions, LLC, receiving **$10.6 million** payment in full, but recognized a **$0.5 million** loss on its preferred equity investment[17](index=17&type=chunk) [Company Overview](index=4&type=section&id=Company%20Overview) Fidus Investment Corporation is a BDC and RIC providing customized debt and equity financing to lower middle-market U.S. companies - Fidus provides customized debt and equity financing solutions to lower middle-market companies (revenues between **$10 million** and **$150 million**) based in the U.S[20](index=20&type=chunk) - The company's investment objective is to provide attractive risk-adjusted returns by generating current income from debt investments and capital appreciation from equity-related investments[20](index=20&type=chunk) - Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a Business Development Company (BDC) and a Regulated Investment Company (RIC) for tax purposes[21](index=21&type=chunk) [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) Management will host a conference call on August 8, 2025, at 9:00 AM ET to discuss Q2 2025 financial results - A conference call to discuss Q2 2025 financial results will be held on Friday, August 8, 2025, at 9:00 AM ET[18](index=18&type=chunk) - Participants can dial (844) 808-7136 (domestic) or (412) 317-0534 (international), or access a live webcast at http://investor.fdus.com/news-events

Core Viewpoint - Fidus Investment Corporation reported strong financial results for the second quarter of 2025, highlighting growth in adjusted net investment income and a healthy portfolio despite a challenging M&A environment [3][6][9]. Financial Highlights - Total investment income for Q2 2025 was $40.0 million, an increase of 12.1% from $35.7 million in Q2 2024 [6][7]. - Net investment income rose to $18.6 million, or $0.53 per share, reflecting a 9.9% increase from $17.0 million in the same period last year [6][9]. - Adjusted net investment income reached $20.0 million, or $0.57 per share, up 8.6% from $18.4 million in Q2 2024 [6][9]. - The company declared total dividends of $0.54 per share, consisting of a regular quarterly dividend of $0.43 and a supplemental dividend of $0.11 [6][13]. Portfolio and Investment Activities - As of June 30, 2025, the fair value of the investment portfolio was $1.1 billion, comprising 92 active portfolio companies [11]. - The company invested $94.5 million in debt and equity securities during the quarter, including four new portfolio companies [6][11]. - The weighted average yield on debt investments was 13.1% as of June 30, 2025 [11]. Liquidity and Capital Resources - Fidus had $91.2 million in cash and cash equivalents and $140.0 million of unused capacity under its senior secured revolving credit facility as of June 30, 2025 [12]. - The weighted average interest rate on total debt outstanding was 4.8% [12]. Subsequent Events - On July 2, 2025, Fidus made several investments totaling $34.3 million in various companies, including Sogno Toscano, LLC and e-PlanSoft Buyer, LLC [16][17].

EVANSTON, Ill., July 31, 2025 (GLOBE NEWSWIRE) -- Fidus Investment Corporation (NASDAQ: FDUS) ("Fidus" or the "Company") today announced that it will report its second quarter 2025 financial results on Thursday, August 7, 2025 after the close of the financial markets. Shelby E. Sherard Alliance Advisors IR Chief Financial Officer Jody Burfening Fidus Investment Corporation (212) 838-3777 Management will host a conference call to discuss the operating and financial results at 9:00am ET on Friday, August 8, 2 ...

Group 1 - The private credit and business development company (BDC) segments have faced significant volatility in 2023, with a relatively stable outlook for 2025, lacking clear growth catalysts or impediments [1] - A major tariff announcement has impacted the overall sentiment in the private credit and BDC sectors, indicating potential challenges ahead [1] - Roberts Berzins has extensive experience in financial management and has contributed to the development of financial strategies and frameworks in Latvia, particularly in enhancing the liquidity of pan-Baltic capital markets [1]

Group 1 - Fidus Investment (NASDAQ: FDUS) was identified as trading slightly below its net asset value (NAV) in March 2024, indicating a potential investment opportunity due to forthcoming high-probability equity sales [1] - The capital structure of FDUS was noted to be among the least leveraged in the entire sector, suggesting a lower risk profile compared to peers [1] Group 2 - The analyst has a beneficial long position in FDUS shares, indicating confidence in the company's future performance [2] - The article reflects the analyst's personal opinions and is not influenced by external compensation, ensuring an independent perspective on the investment [2]

Group 1 - Business Development Companies (BDCs) generate revenue by borrowing at low interest rates and lending to higher-risk companies at elevated yields, creating a profit spread [1] - The role of Roberts Berzins includes enhancing the liquidity of pan-Baltic capital markets and developing financing guidelines for state-owned enterprises and affordable housing [1] Group 2 - No relevant content available for this section [2][3]

Group 1 - The Business Development Company (BDC) sector has faced challenges over the past year due to lower base rates leading to reduced portfolio yields and interest income [1] - Some BDC performances have been negatively impacted as a result of these economic conditions [1] Group 2 - The article emphasizes the importance of quality dividend-paying companies for building investment portfolios, particularly for lower and middle-class workers [1]

Financial Data and Key Metrics Changes - Total investment income for Q1 2025 was $36.5 million, a decrease of $1 million from Q4 2024, primarily due to a decline in interest income [13] - Adjusted net investment income (NII) for Q1 2025 was $18.5 million, compared to $18.1 million in Q1 2024, with adjusted NII per share at $0.54, down from $0.59 year-over-year [9] - Net asset value at quarter end was $677.9 million, or $19.39 per share, compared to $655.7 million, or $19.33 per share as of 12/31/2024 [9] Business Line Data and Key Metrics Changes - Originations totaled $115.6 million for Q1 2025, with $102.1 million invested in seven new portfolio companies [10] - Debt investments amounted to $111.6 million, with first lien securities accounting for approximately 94% of the total [10] - The debt portfolio was valued at approximately $1 billion, with 79% consisting of first lien investments [11] Market Data and Key Metrics Changes - Deal activity in the lower middle market was described as modest, continuing the trend of lackluster M&A activity [7] - The company expects continued activity in the lower middle market, albeit at lower levels than before [30] Company Strategy and Development Direction - The company focuses on investing in high-quality companies with resilient business models and strong cash flow generation [7] - The management believes the current economic environment may present interesting investment opportunities, particularly in periods of high volatility [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's resilience against macroeconomic challenges, noting that most portfolio companies are domestic with limited tariff exposure [11] - The outlook for originations in Q2 2025 is positive, supported by a strong investment pipeline [12] Other Important Information - The company declared a total dividend of $0.54 per share for Q2 2025, consistent with the previous quarter [9] - The company ended Q1 2025 with $545.6 million of debt outstanding, with a net debt to equity ratio of 0.7 times [15] Q&A Session Summary Question: Impact of tariffs on portfolio companies - Management indicated that direct exposure to tariffs is limited to just over 5% of the portfolio, and plans are in place to manage risks effectively [24][25] Question: Conditions for M&A market rebound - Management believes that uncertainty is the primary factor affecting the M&A market, and stability rather than the removal of tariffs is needed for a rebound [28][29] Question: Prepayment risk among top-performing companies - Management acknowledged prepayment risk but noted that it is a common aspect of the business, with some companies expected to be refinanced [47][49] Question: Update on distressed investment in Quest software - Management expressed confidence in the long-term outlook for Quest, despite current challenges, and noted that the risk profile is reflected in the investment's valuation [51][52]