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]

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 $1.1 million decrease in interest income [13][14] - 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][15] - 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][11] - The debt portfolio was valued at approximately $1 billion, with 79% consisting of first lien investments [11] Market Data and Key Metrics Changes - The lower middle market experienced modest deal activity, continuing the trend of lackluster M&A activity [7][12] - The portfolio remains healthy, with nonaccrual companies under 1% of the total portfolio on a fair value basis [11] 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 outlook for originations in Q2 2025 is positive, based on a new investment pipeline [12] - The company is well-positioned for potential economic downturns due to the resilient cash flow of its portfolio companies [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the current macroeconomic environment is characterized by uncertainty, impacting M&A activity [12] - The company believes that stability, rather than the elimination of tariffs, is necessary for a rebound in the M&A market [30] - Management expressed confidence in the long-term outlook of the portfolio despite current challenges [52] Other Important Information - The company declared a total dividend of $0.54 per share for Q2 2025, consistent with the previous quarter [9] - The weighted average interest rate on outstanding debt was 4.8% as of March 31 [16] 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 [24][25] Question: Conditions for M&A market rebound - Management stated that uncertainty is the primary factor affecting the M&A market, and stability is needed for recovery [30] Question: Prepayment risk among top-performing companies - Management acknowledged prepayment risk but noted that it is a typical aspect of the business [48][50] Question: Update on Quantum IR investment - Management reported no material updates on Quantum IR, emphasizing ongoing efforts to manage the situation [61][63] Question: Challenges with Quest software investment - Management expressed confidence in the long-term outlook for Quest, despite current over-leverage and market concerns [51][52]

Financial Data and Key Metrics Changes - Adjusted net investment income for Q1 2025 was $18,500,000, an increase from $18,100,000 in Q1 2024, while adjusted NII per share decreased to $0.54 from $0.59 due to incremental shares issued [7][12] - Net asset value at the end of Q1 2025 was $677,900,000 or $19.39 per share, compared to $655,700,000 or $19.33 per share as of December 31, 2024 [7] - Total investment income for Q1 2025 was $36,500,000, a decrease of $1,000,000 from Q4 2024, primarily due to a decline in interest income [12] Business Line Data and Key Metrics Changes - Originations totaled $115,600,000 in Q1 2025, with $111,600,000 invested in debt and $4,000,000 in equity across seven new portfolio companies [9] - Debt investments accounted for approximately 94% of the total, with first lien securities making up the majority [9] - The debt portfolio was valued at approximately $1,000,000,000, with 79% consisting of first lien investments [10] Market Data and Key Metrics Changes - Deal activity in the lower middle market remained modest, continuing the trend of lackluster M&A activity [6] - 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 [6] - Management believes the current economic environment may present interesting investment opportunities, particularly in periods of high volatility [11] Management 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 [10] - The outlook for originations in Q2 2025 is positive, supported by a strong investment pipeline [11] Other Important Information - The company declared a total dividend of $0.54 per share for Q2 2025, consistent with the previous quarter [8] - The company ended Q1 2025 with $545,600,000 of debt outstanding and 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: Factors needed for M&A market rebound - Management believes that stability, rather than the elimination of tariffs, is necessary for the M&A market to recover [29] Question: Spread stability in private credit - Management noted that while spreads are stable for high-quality credits, there may be opportunities for spread widening in more complex situations [42] Question: Prepayment risk among top-performing companies - Management acknowledged prepayment risk but indicated that it is a manageable aspect of the business [46] Question: Update on distressed investments - Management provided updates on specific investments, indicating ongoing monitoring and management of portfolio companies facing challenges [58]

Core Viewpoint - Fidus Investment (FDUS) reported quarterly earnings of $0.54 per share, exceeding the Zacks Consensus Estimate of $0.53 per share, but down from $0.59 per share a year ago, indicating a slight earnings surprise of 1.89% [1][2] Financial Performance - The company achieved revenues of $36.5 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.04% and showing an increase from $34.65 million year-over-year [2] - Over the last four quarters, Fidus Investment has exceeded consensus EPS estimates three times and topped revenue estimates four times [2] Stock Performance - Fidus Investment shares have declined approximately 10.6% since the beginning of the year, compared to a decline of 4.3% for the S&P 500 [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for it to outperform the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.53 on revenues of $36.03 million, while for the current fiscal year, the estimate is $2.14 on revenues of $147.18 million [7] - The trend of estimate revisions for Fidus Investment has been favorable leading up to the earnings release [6] Industry Context - The Financial - SBIC & Commercial Industry, to which Fidus Investment belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Fidus Investment may be influenced by the overall outlook for the industry [8]