Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG inves ...

FS KKR Capital (FSK) Q2 2025 Earnings Call August 07, 2025 09:00 AM ET Company ParticipantsAnna Kleinhenn - SVP & Head - IRMichael Forman - Chairman & CEODaniel Pietrzak - President & Chief Investment OfficerSteven Lilly - Chief Financial OfficerFinian O'shea - Director, WFS ResearchRobert Dodd - Director - FinancePaul Johnson - Vice PresidentMelissa Wedel - VP - U.S. Equities ResearchConference Call ParticipantsArren Cyganovich - Senior Analyst - Specialty FinanceSean-Paul Adams - Equity Research AnalystCa ...

FS KKR Capital (FSK) Q2 2025 Earnings Call August 07, 2025 09:00 AM ET Speaker0Good morning, ladies and gentlemen. Welcome to the FS KKR Capital Corp's Second Quarter twenty twenty five Earnings Conference Call. Your lines will be in a listen only mode during remarks by FSK's management. At the conclusion of the company's remarks, we will begin the question and answer session, at which time I will give you instructions on entering the queue. Please note that this conference is being recorded.At this time, A ...

FS KKR Capital Corp. F i n a n c i a l I n f o r m a t i o n Quarter Ended June 30, 2025 2 Financial Results | (Dollar amounts in millions, except per share data) | 6/30/24 | 9/30/24 | 12/31/24 | 3/31/25 | 6/30/25 | | --- | --- | --- | --- | --- | --- | | NII per share | $0.77 | $0.77 | $0.61 | $0.67 | $0.62 | | Adjusted NII per share(1) | $0.75 | $0.74 | $0.66 | $0.65 | $0.60 | | Net realized and unrealized gains (losses) per share | ($0.39) | ($0.20) | ($0.09) | ($0.24) | ($1.36) | | Adjusted net realized ...

Core Insights - FS KKR Capital reported revenue of $398 million for the quarter ended June 2025, a decrease of 9.3% year-over-year [1] - The company's EPS was -$0.60, down from $0.75 in the same quarter last year, indicating a significant decline [1] - Revenue fell short of the Zacks Consensus Estimate of $401.13 million, resulting in a surprise of -0.78% [1] - The EPS surprise was -195.24%, with the consensus estimate being $0.63 [1] Financial Performance Metrics - Investment income from fee income was $9 million, below the average estimate of $15.41 million from four analysts [4] - Dividend and other income amounted to $91 million, exceeding the average estimate of $81.05 million based on four analysts [4] - Paid-in-kind interest income was reported at $53 million, lower than the estimated $61.66 million, but showed a year-over-year increase of 23.3% [4] - Interest income reached $245 million, slightly above the average estimate of $241.38 million from three analysts [4] Stock Performance - FS KKR Capital's shares have returned -5% over the past month, contrasting with the Zacks S&P 500 composite's +0.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - FS KKR Capital reported a quarterly loss of $0.6 per share, missing the Zacks Consensus Estimate of $0.63, and a decline from earnings of $0.75 per share a year ago, indicating a significant earnings surprise of -195.24% [1] Financial Performance - The company posted revenues of $398 million for the quarter ended June 2025, which was below the Zacks Consensus Estimate by 0.78% and a decrease from $439 million in the same quarter last year [2] - Over the last four quarters, FS KKR Capital has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] Stock Performance - FS KKR Capital shares have declined approximately 7.3% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The current status of estimate revisions has resulted in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.63 on revenues of $402.16 million, while for the current fiscal year, the estimate is $2.54 on revenues of $1.6 billion [7] - The outlook for the industry, specifically the Financial - SBIC & Commercial Industry, is currently in the top 41% of Zacks industries, indicating a favorable environment for stock performance [8] Industry Comparison - Main Street Capital, another company in the same industry, is expected to report quarterly earnings of $0.99 per share, reflecting a year-over-year change of -2%, with revenues anticipated to be $137.23 million, up 3.8% from the previous year [9][10]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q _________________________________________________ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2025 (Exact name of registrant as specified in its charter) _________________________________________________ 201 Rouse Boulevard Philadelphia, Pennsylvania 19112 (Address of principal executive offices) (Zip Code) Maryland 26-1630040 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 10, 2025 FS KKR Capital Corp. (Exact name of Registrant as specified in its charter) Maryland 814-00757 26-1630040 (State or other jurisdiction of incorporation) 201 Rouse Boulevard Philadelphia, Pennsylvania 19112 (Address of principal executive offices) (Zip Code) (Commission File Number ...

Group 1 - FS KKR Capital Corp. plans to release its second quarter 2025 results after the close of trading on August 6, 2025 [1] - A conference call to discuss the second quarter 2025 results will be held on August 7, 2025, at 9:00 a.m. Eastern Time, accessible via live webcast [2] - An investor presentation of financial information will be available on the company's website after the market close on August 6, 2025 [4] Group 2 - FS KKR Capital Corp. is a publicly traded business development company focused on providing customized credit solutions to private middle market U.S. companies [5] - The company primarily invests in senior secured debt and, to a lesser extent, subordinated debt of private middle market companies [5] - FS KKR is advised by FS/KKR Advisor, LLC, a partnership between FS Investments and KKR Credit [6] Group 3 - FS Investments manages over $85 billion in assets and provides access to a broad suite of alternative asset classes and strategies [7] - The firm has more than 500 employees across offices in the U.S., Europe, and Asia, and is headquartered in Philadelphia [7] - KKR Credit, a subsidiary of KKR & Co. Inc., aims to generate attractive investment returns through a disciplined investment approach [8]

Financial Data and Key Metrics Changes - For Q1 2025, the company generated net investment income of $0.67 per share and adjusted net investment income of $0.65 per share, compared to public guidance of approximately $0.66 and $0.64 per share respectively [11] - The company ended the quarter with approximately $3.2 billion of available liquidity [11] - The net asset value per share decreased from $23.64 at the end of Q4 2024 to $23.37 at the end of Q1 2025 [30] Business Line Data and Key Metrics Changes - The company originated approximately $2 billion of new investments during the first quarter, with 45% focused on add-on financings to existing portfolio companies [18] - New investments included approximately 63% in first lien loans, 19% in asset-based finance, and 15% in capital calls to the joint venture [19] - The weighted average yield on accruing debt investments decreased to 10.8% as of March 31, down from 11% at the end of Q4 2024 [28] Market Data and Key Metrics Changes - Approximately 8% of the portfolio could have direct exposure to tariff policies, while low to mid single-digit exposure to DOGE is estimated [15] - Non-accruals represented 3.5% of the portfolio on a cost basis and 2.1% on a fair value basis, showing slight improvement from 3.7% and 2.2% respectively at the end of Q4 2024 [21] Company Strategy and Development Direction - The company aims to maintain a stable income for investors by keeping a consistent distribution strategy, with a declared second quarter distribution of $0.70 per share [11] - The focus remains on upper middle market companies with EBITDA between $50 million and $150 million, which are believed to have more resilience during challenging periods [20] - The company is actively managing exposure to tariffs and has exited two portfolio companies deemed to have higher risks related to tariffs [16] Management's Comments on Operating Environment and Future Outlook - The management expressed concerns about the worsening economic outlook and increased volatility in debt and equity markets [8] - The expectation is that the macroeconomic environment will stabilize by early next year, providing clearer insights into interest rates and other economic drivers [10] - The management remains cautious about the potential for a recession but believes that the company is well-positioned to navigate the current uncertainties [49] Other Important Information - The company closed on its second middle market CLO, raising $380 million of low-cost secured debt [33] - The management team has amended the Morgan Stanley funding facility, reducing the spread and extending the maturity date [33] Q&A Session Summary Question: Timing of deployments and rate changes impact - Management noted that the origination number was satisfactory and that the decline in rates has mostly flowed through as of the end of Q1 [38][40] Question: Market share and competitive environment - Management indicated that they are gaining market share through diversified origination sources and strong sponsor relationships, although M&A activity has slowed [41][43] Question: Macro group insights on recession odds - The macro group sees a higher likelihood of a recession, albeit potentially muted, and is actively monitoring economic indicators [48] Question: Yield compression expectations - Management acknowledged the potential for additional yield compression as the portfolio churns, with new money yields expected to be lower than previous repayments [50][52] Question: Asset-based financing risks - Management highlighted that consumer-related risks in the asset-based finance portfolio are being monitored, with a focus on secured, high FICO score borrowers [62] Question: Interest coverage trends - Management explained that the lag effect in interest coverage metrics is due to the timing of rate changes and portfolio adjustments [84]