Group 1 - Fidus Investment (NASDAQ: FDUS) has consistently ranked among the top three Business Development Companies (BDCs) for several quarters [1] - The company is led by Roberts Berzins, who has over a decade of experience in financial management and has contributed to the development of financial strategies for top-tier corporates [1] - Berzins has played a significant role in institutionalizing the REIT framework in Latvia, aiming to enhance the liquidity of pan-Baltic capital markets [1] Group 2 - Berzins has been involved in policy-level initiatives, including the creation of national SOE financing guidelines and frameworks to channel private capital into affordable housing [1] - He holds a CFA Charter and an ESG investing certificate, and has experience from an internship at the Chicago Board of Trade [1] - Berzins is actively engaged in thought-leadership activities to support the development of capital markets in the Baltic region [1]

Financial Data and Key Metrics Changes - For Q2 2025, adjusted net investment income (NII) was $20 million, an increase from $18.4 million in Q2 2024, with fee income accounting for about half of the $1.6 million increase [6] - Adjusted NII per share was $0.57 for both periods, reflecting an increase in average shares outstanding due to the equity ATM program [7] - Total investment income for Q2 was $40 million, a $3.5 million increase from Q1 2025, driven by higher interest income and fee income [12] - Total expenses for Q2 were $21.3 million, a $3.1 million increase over Q1, primarily due to higher capital gains incentive fees and interest expenses [12] Business Line Data and Key Metrics Changes - The debt portfolio totaled $1 billion on a fair value basis, with 81% consisting of first lien investments, while the equity portfolio stood at $138.8 million, or 12% of the total portfolio [10] - The weighted average effective yield on debt investments was 13.1% as of June 30, slightly down from 13.2% at the end of Q1 [15] Market Data and Key Metrics Changes - The company noted that M&A activity was dampened in Q2 due to economic and tariff policy uncertainty but showed signs of improvement in late Q2 and into Q3 [6][20] - The company’s portfolio remains diversified by industry, with non-accrual companies under 1% of the total portfolio on a fair value basis [10] Company Strategy and Development Direction - The company aims to grow net asset value over time by carefully selecting high-quality companies with defensive characteristics and positive growth outlooks [11] - The investment strategy focuses on generating attractive risk-adjusted returns while preserving capital in the fragmented lower middle market [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the increase in deal flow, indicating a better environment for investment activity in the latter half of Q3 and into Q4 [20][23] - The company is well-positioned to grow its portfolio, although repayment activity is expected to be episodic and not as high as in the previous quarter [22][23] Other Important Information - The net asset value grew slightly to $692.3 million at quarter end compared to $677.9 million as of March 31, 2025 [8] - The board declared a total dividend of $0.57 per share for 2025, which includes a supplemental dividend of $0.14 per share [7] Q&A Session Summary Question: What is the outlook for M&A activity in the second half of the year? - Management noted that while Q1 had decent deal flow, Q2 saw a drop due to uncertainty, but activity has improved in late Q2 and continues into Q3, with expectations for a decent market in the latter half of the year [20][23] Question: Are there any changes in the competitive environment? - Management indicated that while the market remains competitive, there has been an increase in competition over the past few years, particularly in the lower middle market [25][26] Question: Can we expect the prepayment fees to decrease in Q3? - Management agreed that the prepayment fees and accelerated amortization seen in Q2 are not expected to repeat at the same levels in Q3 [28] Question: Can you provide insights on Quest Software's performance? - Management described Quest as a cybersecurity solutions provider with a solid long-term outlook, although it has faced challenges due to being over-leveraged and higher interest rates [34] Question: What is the priority for financial sponsors regarding capital structure? - Management noted that financial sponsors are looking for ways to return capital to LPs, but the level of dividend income may not be recurring and is often episodic [38]

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]