PART I FINANCIAL INFORMATION This section presents Main Street Capital Corporation's unaudited financial statements, management's discussion, and market risk disclosures [Item 1. Consolidated Financial Statements](index=2&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents Main Street Capital Corporation's unaudited consolidated financial statements and comprehensive notes for the periods ended June 30, 2025, and December 31, 2024 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets%E2%80%94June%2030%2C%202025%20(unaudited)%20and%20December%2031%2C%202024) These statements present Main Street's financial position as of June 30, 2025, and December 31, 2024 Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | |:---|:---|:---| | **ASSETS** ||| | Total investments at fair value | $5,093,070 | $4,932,669 | | Cash and cash equivalents | $86,984 | $78,251 | | Total assets | $5,287,766 | $5,121,341 | | **LIABILITIES** ||| | Credit Facilities | $477,000 | $384,000 | | Total liabilities | $2,403,549 | $2,323,503 | | **NET ASSETS** ||| | Total net assets | $2,884,217 | $2,797,838 | | NET ASSET VALUE PER SHARE | $32.30 | $31.65 | - Total assets increased by **$166,425 thousand (3.25%)** from December 31, 2024, to June 30, 2025, primarily due to growth in investments at fair value[11](index=11&type=chunk) - Net Asset Value (NAV) per share increased from **$31.65** at December 31, 2024, to **$32.30** at June 30, 2025[11](index=11&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20(unaudited)%E2%80%94Three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) These statements detail Main Street's financial performance for the three and six months ended June 30, 2025, and 2024 Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---|:---|:---| | Total investment income | $143,973 | $132,154 | $281,019 | $263,759 | | Total expenses | $(50,639) | $(44,854) | $(97,875) | $(86,653) | | Net investment income | $88,183 | $83,899 | $174,080 | $170,330 | | Net realized gain (loss) | $52,420 | $3,414 | $22,875 | $(8,954) | | Net unrealized appreciation (depreciation) | $(18,951) | $23,044 | $44,239 | $63,693 | | Net increase in net assets from operations | $122,534 | $102,688 | $238,616 | $209,835 | | Net investment income per share | $0.99 | $0.97 | $1.96 | $1.99 | | Net increase in net assets from operations per share | $1.37 | $1.19 | $2.68 | $2.45 | - Total investment income increased by **9%** for the three months ended June 30, 2025, and by **7%** for the six months ended June 30, 2025, compared to the prior year periods[13](index=13&type=chunk) - Net realized gain significantly increased to **$52,420 thousand** for the three months ended June 30, 2025, from $3,414 thousand in the prior year, and shifted from a loss to a gain for the six-month period[13](index=13&type=chunk) - Net unrealized appreciation shifted to a depreciation of **$(18,951) thousand** for the three months ended June 30, 2025, from an appreciation of $23,044 thousand in the prior year, but remained positive for the six-month period[13](index=13&type=chunk) [Consolidated Statements of Changes in Net Assets](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets%20(unaudited)%E2%80%94Three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) These statements illustrate changes in Main Street's net assets from operations, capital raises, and dividends for the periods ended June 30, 2025 Changes in Net Assets (in thousands, except shares) | Metric | Balances as of December 31, 2024 | Balances as of June 30, 2025 | |:---|:---|:---| | Common stock (shares) | 88,400,391 | 89,282,595 | | Common stock (par value) | $884 | $893 | | Additional paid-in capital | $2,394,492 | $2,429,817 | | Total undistributed earnings | $402,462 | $453,507 | | Total net assets | $2,797,838 | $2,884,217 | | Net increase in net assets resulting from operations (6 months) | N/A | $238,616 | | Dividends to stockholders (6 months) | N/A | $(187,571) | - Total net assets increased by **$86,379 thousand** from December 31, 2024, to June 30, 2025, primarily driven by net increase in net assets from operations and capital raises[15](index=15&type=chunk) - Public offerings of common stock generated **$16,031 thousand** in net proceeds for the six months ended June 30, 2025[15](index=15&type=chunk) - Dividends to stockholders totaled **$(187,571) thousand** for the six months ended June 30, 2025[15](index=15&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(unaudited)%E2%80%94Six%20months%20ended%20June%2030%2C%202025%20and%202024) These statements outline Main Street's cash sources and uses for the six months ended June 30, 2025, and 2024 Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---| | Net cash provided by (used in) operating activities | $82,125 | $(304,551) | | Net cash provided by (used in) financing activities | $(73,392) | $274,940 | | Net increase (decrease) in cash and cash equivalents | $8,733 | $(29,611) | | Cash and cash equivalents as of end of period | $86,984 | $30,472 | | Dividends paid | $(168,050) | $(157,212) | | Proceeds from Credit Facilities | $607,000 | $1,395,000 | | Repayments on Credit Facilities | $(514,000) | $(1,130,000) | - Net cash provided by operating activities significantly improved to **$82,125 thousand** for the six months ended June 30, 2025, compared to a net cash outflow of $(304,551) thousand in the prior year[18](index=18&type=chunk) - Net cash used in financing activities was **$(73,392) thousand** for the six months ended June 30, 2025, primarily due to dividends paid and net repayments on credit facilities, a reversal from the $274,940 thousand provided in the prior year[18](index=18&type=chunk) - Cash and cash equivalents increased by **$8,733 thousand**, reaching **$86,984 thousand** at June 30, 2025[18](index=18&type=chunk) [Consolidated Schedule of Investments – June 30, 2025](index=8&type=section&id=Consolidated%20Schedule%20of%20Investments%20(unaudited)%E2%80%94June%2030%2C%202025) This schedule details Main Street's investment portfolio as of June 30, 2025, categorized by control level and providing specifics on individual portfolio companies Investment Portfolio Summary (in thousands) | Category | Cost | Fair Value | |:---|:---|:---| | Control Investments | $1,561,120 | $2,295,565 | | Affiliate Investments | $790,583 | $856,226 | | Non-Control/Non-Affiliate Investments | $2,001,002 | $1,941,279 | | Total Portfolio Company investments | $4,352,705 | $5,093,070 | | Money market funds | $19,041 | $19,041 | - Control investments represent **79.6%** of net assets at fair value, while Affiliate investments represent **29.7%** and Non-Control/Non-Affiliate investments represent **67.3%**[36](index=36&type=chunk) - A significant portion of debt investments (**96%** based on par amount) have Term Secured Overnight Financing Rate ("SOFR") floors ranging from 0.75% to 5.25%, with a weighted-average floor of **1.30%**[79](index=79&type=chunk) - Debt investments are generally income-producing, while equity and warrants are non-income producing unless otherwise noted[79](index=79&type=chunk) [Consolidated Schedule of Investments – December 31, 2024](index=38&type=section&id=Consolidated%20Schedule%20of%20Investments%E2%80%94December%2031%2C%202024) This schedule details Main Street's investment portfolio as of December 31, 2024, categorized by control level and investment type Investment Portfolio Summary (in thousands) | Category | Cost | Fair Value | |:---|:---|:---| | Control Investments | $1,415,970 | $2,087,890 | | Affiliate Investments | $743,441 | $846,798 | | Non-Control/Non-Affiliate Investments | $2,077,901 | $1,997,981 | | Total Portfolio Company investments | $4,237,312 | $4,932,669 | | Money market funds | $6,474 | $6,474 | - Control investments constituted **74.6%** of net assets at fair value, Affiliate investments **30.3%**, and Non-Control/Non-Affiliate investments **71.4%** as of December 31, 2024[99](index=99&type=chunk)[100](index=100&type=chunk)[135](index=135&type=chunk) - **95%** of debt investments (based on par amount) had Term SOFR floors ranging from 0.50% to 5.25%, with a weighted-average floor of **1.32%** as of December 31, 2024[138](index=138&type=chunk) [Notes to Consolidated Financial Statements](index=65&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(unaudited)) These notes provide essential context for Main Street's financial statements, detailing accounting policies, fair value, and debt [NOTE A — ORGANIZATION AND BASIS OF PRESENTATION](index=68&type=section&id=NOTE%20A%20%E2%80%94%20ORGANIZATION%20AND%20BASIS%20OF%20PRESENTATION) This note describes Main Street Capital Corporation's structure as an internally managed BDC and its tax treatment as a RIC - MSCC is an internally managed BDC, primarily focused on LMM and Private Loan investment strategies, providing customized long-term debt and equity capital solutions[143](index=143&type=chunk)[403](index=403&type=chunk) - The company maintains a legacy portfolio of Middle Market investments and other portfolio investments, with Middle Market investments expected to decline[144](index=144&type=chunk)[404](index=404&type=chunk) - MSCC has elected to be treated as a Regulated Investment Company (RIC) for U.S. federal income tax purposes, generally avoiding corporate-level taxes on distributed income[149](index=149&type=chunk)[410](index=410&type=chunk) - The External Investment Manager, a wholly-owned subsidiary, provides services to external parties and is accounted for as a portfolio investment, not a consolidated subsidiary[148](index=148&type=chunk)[154](index=154&type=chunk)[409](index=409&type=chunk) [NOTE B — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=71&type=section&id=NOTE%20B%20%E2%80%94%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note details Main Street's significant accounting policies, including fair value valuation, revenue recognition, and compensation - Main Street accounts for its Investment Portfolio at fair value, following ASC 820, with valuation processes approved by its Board of Directors[160](index=160&type=chunk)[162](index=162&type=chunk)[443](index=443&type=chunk) - Valuation methods include the Waterfall methodology for LMM equity, Yield-to-Maturity for LMM/Private Loan/Middle Market debt, and NAV for Other Portfolio equity investments[164](index=164&type=chunk)[166](index=166&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk) - External Financial Advisory Firms are consulted for fair value determinations of LMM and Private Loan portfolio companies, with **92%** of LMM and **91%** of Private Loan portfolios reviewed in the trailing twelve months ended June 30, 2025[170](index=170&type=chunk)[173](index=173&type=chunk) - Investments on non-accrual status comprised **2.1%** of the total Investment Portfolio at fair value and **5.0%** at cost as of June 30, 2025[186](index=186&type=chunk)[452](index=452&type=chunk) Investment Income Composition (in thousands) | Income Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---|:---|:---| | Interest income | $100,857 | $100,031 | $198,874 | $200,136 | | Dividend income | $37,845 | $26,688 | $73,871 | $49,479 | | Fee income | $5,271 | $5,435 | $8,274 | $14,144 | | Total investment income | $143,973 | $132,154 | $281,019 | $263,759 | - PIK interest and cumulative dividends constituted **2.3%** and **0.9%** of total investment income, respectively, for the three months ended June 30, 2025, and **2.6%** and **0.7%** for the six months ended June 30, 2025[187](index=187&type=chunk)[448](index=448&type=chunk) [NOTE C — FAIR VALUE HIERARCHY FOR INVESTMENTS — PORTFOLIO COMPOSITION](index=81&type=section&id=NOTE%20C%20%E2%80%94%20FAIR%20VALUE%20HIERARCHY%20FOR%20INVESTMENTS%20%E2%80%94%20PORTFOLIO%20COMPOSITION) This note explains Main Street's fair value hierarchy for investments, detailing valuation inputs and providing a comprehensive breakdown of the portfolio's composition by type and industry - All LMM and Private Loan portfolio investments, and most Middle Market investments, are categorized as **Level 3** due to reliance on unobservable inputs for fair value determination[220](index=220&type=chunk)[221](index=221&type=chunk)[223](index=223&type=chunk) - Key unobservable inputs for equity valuations include WACC (**9.7% - 22.7%** range, **14.5%** weighted-average) and EBITDA multiples (**5.0x - 9.0x** range, **7.2x** weighted-average)[226](index=226&type=chunk)[227](index=227&type=chunk) - Key unobservable inputs for debt valuations include risk-adjusted discount rates (**8.3% - 18.6%** range, **12.3%** weighted-average) and expected principal recovery percentages (**0.0% - 500.0%** range, **98.8%** weighted-average)[226](index=226&type=chunk)[227](index=227&type=chunk) Investment Portfolio Composition by Type (at cost) | Investment Type | June 30, 2025 | December 31, 2024 | |:---|:---|:---| | First lien debt | 81.5 % | 82.9 % | | Equity | 17.9 % | 16.4 % | | Second lien debt | 0.1 % | 0.2 % | | Equity warrants | 0.3 % | 0.3 % | | Other | 0.2 % | 0.2 % | | **Total** | **100.0 %** | **100.0 %** | Investment Portfolio Composition by Type (at fair value) | Investment Type | June 30, 2025 | December 31, 2024 | |:---|:---|:---| | First lien debt | 70.5 % | 71.4 % | | Equity | 28.7 % | 27.8 % | | Second lien debt | 0.1 % | 0.2 % | | Equity warrants | 0.5 % | 0.4 % | | Other | 0.2 % | 0.2 % | | **Total** | **100.0 %** | **100.0 %** | - The LMM portfolio had **88 companies** with an average EBITDA of **$10.4 million** and a weighted-average annual effective yield of **12.8%** (12.1% including non-accrual)[248](index=248&type=chunk)[249](index=249&type=chunk) - The Private Loan portfolio had **87 companies** with an average EBITDA of **$32.5 million** and a weighted-average annual effective yield of **11.4%** (10.0% including non-accrual)[248](index=248&type=chunk)[249](index=249&type=chunk) - Middle Market investments decreased from **15 companies ($155.3 million fair value)** to **12 companies ($108.7 million fair value)** from December 31, 2024, to June 30, 2025[252](index=252&type=chunk)[437](index=437&type=chunk) - The investment in the External Investment Manager had a fair value of **$272.6 million (5.4% of total portfolio)** as of June 30, 2025, up from $246.0 million (5.0%) at December 31, 2024[254](index=254&type=chunk)[440](index=440&type=chunk) [NOTE D — EXTERNAL INVESTMENT MANAGER](index=93&type=section&id=NOTE%20D%20%E2%80%94%20EXTERNAL%20INVESTMENT%20MANAGER) This note describes the operations and financial contribution of Main Street's External Investment Manager - The External Investment Manager provides investment advisory and administrative services to external clients, including MSC Income Fund, Private Loan Fund I, and Private Loan Fund II[268](index=268&type=chunk)[269](index=269&type=chunk) - The External Investment Manager's total contribution to Main Street's net investment income was **$8.7 million** for the three months ended June 30, 2025 (down from $9.2 million in 2024), and **$16.6 million** for the six months ended June 30, 2025 (down from $17.8 million in 2024)[272](index=272&type=chunk)[428](index=428&type=chunk) External Investment Manager Summarized Financial Information (in thousands) | Metric | June 30, 2025 | December 31, 2024 | |:---|:---|:---| | Accounts receivable - advisory clients | $10,688 | $10,183 | | Intangible asset | $29,500 | $29,500 | | Total assets | $40,188 | $39,683 | | Accounts payable to MSCC and its subsidiaries | $7,839 | $7,785 | | Dividend payable to MSCC and its subsidiaries | $2,849 | $2,398 | | Equity | $29,500 | $29,500 | | Total liabilities and equity | $40,188 | $39,683 | External Investment Manager Statements of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---|:---|:---| | Total revenues | $9,600 | $10,162 | $18,216 | $19,901 | | Total expenses | $(5,903) | $(5,902) | $(11,277) | $(11,470) | | Net income | $2,849 | $3,312 | $5,343 | $6,313 | [NOTE E — DEBT](index=95&type=section&id=NOTE%20E%20%E2%80%94%20DEBT) This note summarizes Main Street's debt obligations, including Credit Facilities and unsecured notes, with details on rates and amendments Summary of Debt (in thousands) | Debt Instrument | June 30, 2025 Outstanding Balance | December 31, 2024 Outstanding Balance | |:---|:---|:---| | Corporate Facility | $301,000 | $208,000 | | SPV Facility | $176,000 | $176,000 | | July 2026 Notes | $500,000 | $500,000 | | June 2027 Notes | $400,000 | $400,000 | | March 2029 Notes | $350,000 | $350,000 | | SBIC debentures | $350,000 | $350,000 | | December 2025 Notes | $150,000 | $150,000 | | Total Debt | $2,227,000 | $2,134,000 | Summarized Interest Expense (in thousands) | Debt Instrument | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---|:---|:---| | Corporate Facility | $5,867 | $7,240 | $10,324 | $11,522 | | SPV Facility | $3,771 | $3,096 | $7,587 | $4,774 | | July 2026 Notes | $3,882 | $3,882 | $7,763 | $7,763 | | June 2027 Notes | $6,572 | $1,473 | $13,144 | $1,473 | | March 2029 Notes | $6,261 | $6,261 | $12,522 | $11,747 | | SBIC debentures | $3,135 | $2,273 | $6,286 | $4,979 | | December 2025 Notes | $3,031 | $3,031 | $6,061 | $6,061 | | May 2024 Notes | $0 | $1,905 | $0 | $7,618 | | Total Interest Expense | $32,519 | $29,161 | $63,687 | $55,937 | - Corporate Facility commitments increased to **$1.145 billion**, with an accordion feature up to **$1.718 billion**, and maturity extended to April 2030, with interest rate decreased to SOFR + 0.10% + 1.775% (or 1.65%)[284](index=284&type=chunk)[285](index=285&type=chunk)[286](index=286&type=chunk)[497](index=497&type=chunk) - SPV Facility revolving period extended to September 2028 and final maturity to September 2030, with interest rate decreased to SOFR + 1.95% (during revolving period)[288](index=288&type=chunk)[289](index=289&type=chunk)[498](index=498&type=chunk) - Weighted-average effective interest rate on total borrowings was **5.8%** for the three and six months ended June 30, 2025, compared to 5.8% and 5.6% for the corresponding periods in 2024[282](index=282&type=chunk) [NOTE F — FINANCIAL HIGHLIGHTS](index=102&type=section&id=NOTE%20F%20%E2%80%94%20FINANCIAL%20HIGHLIGHTS) This note presents Main Street's key financial highlights, including per share data, NAV ratios, and investment returns Per Share Data | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---| | NAV as of the beginning of the period | $31.65 | $29.20 | | Net investment income | $1.96 | $1.99 | | Net realized gain (loss) | $0.26 | $(0.10) | | Net unrealized appreciation | $0.49 | $0.74 | | Net increase in net assets resulting from operations | $2.68 | $2.45 | | Dividends paid | $(2.10) | $(2.04) | | NAV as of the end of the period | $32.30 | $29.80 | | Market value as of the end of the period | $59.10 | $50.49 | | Shares outstanding as of the end of the period | 89,282,595 | 86,552,506 | Ratios to Average NAV | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---| | Ratio of total expenses, including income tax expense, to average NAV | 3.86 % | 4.31 % | | Ratio of operating expenses to average NAV | 3.45 % | 3.43 % | | Ratio of net investment income to average NAV | 6.13 % | 6.75 % | | Portfolio turnover ratio | 11.40 % | 8.62 % | | Total investment return | 4.67 % | 21.97 % | | Total return based on change in NAV | 8.53 % | 8.47 % | - Net increase in net assets resulting from operations per share increased to **$2.68** for the six months ended June 30, 2025, from $2.45 in the prior year[309](index=309&type=chunk) - Total investment return was **4.67%** for the six months ended June 30, 2025, compared to 21.97% in the prior year, while total return based on change in NAV remained strong at **8.53%** (2025) vs. 8.47% (2024)[316](index=316&type=chunk) [NOTE G — DIVIDENDS, DISTRIBUTIONS AND TAXABLE INCOME](index=104&type=section&id=NOTE%20G%20%E2%80%94%20DIVIDENDS%2C%20DISTRIBUTIONS%20AND%20TAXABLE%20INCOME) This note details Main Street's dividend policy, RIC tax treatment, and reconciliation of net assets to taxable income Summarized Dividend Information | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---|:---|:---| | Regular monthly dividends per share | $0.75 | $0.72 | $1.50 | $1.44 | | Supplemental quarterly dividends per share | $0.30 | $0.30 | $0.60 | $0.60 | | Total dividends per share | $1.05 | $1.02 | $2.10 | $2.04 | | Total dividends paid (in thousands) | $93,726 | $87,954 | $186,873 | $174,789 | - Main Street declared total dividends of **$1.05 per share** for the three months ended June 30, 2025, and **$2.10 per share** for the six months ended June 30, 2025[319](index=319&type=chunk) Reconciliation of Net Increase in Net Assets to Taxable Income (in thousands) | Metric | Six Months Ended June 30, 2025 (estimated) | Six Months Ended June 30, 2024 (estimated) | |:---|:---|:---| | Net increase in net assets resulting from operations | $238,616 | $209,835 | | Estimated taxable income | $157,812 | $153,911 | | Total distributions accrued or paid to common stockholders | $187,571 | $175,625 | Income Tax Provision (in thousands) | Tax Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---|:---|:---| | Total net investment income tax provision | $5,151 | $3,401 | $9,064 | $6,776 | | Total investment valuation related income tax provision (benefit) | $(882) | $7,669 | $2,578 | $15,234 | | Total income tax provision | $4,269 | $11,070 | $11,642 | $22,010 | [NOTE H — COMMON STOCK](index=107&type=section&id=NOTE%20H%20%E2%80%94%20COMMON%20STOCK) This note describes Main Street's At-The-Market (ATM) Program for common stock sales and remaining share availability - Main Street sold **280,730 shares** of common stock under its ATM Program for **$16.1 million** in gross proceeds during the six months ended June 30, 2025[328](index=328&type=chunk)[506](index=506&type=chunk) - New distribution agreements in March 2025 allow for the sale of up to **20,000,000 shares** through the ATM Program, with **19,790,632 shares** remaining available as of June 30, 2025[328](index=328&type=chunk)[506](index=506&type=chunk) [NOTE I — DIVIDEND REINVESTMENT PLAN](index=107&type=section&id=NOTE%20I%20%E2%80%94%20DIVIDEND%20REINVESTMENT%20PLAN) This note outlines Main Street's Dividend Reinvestment Plan (DRIP), detailing participation and shares issued DRIP Information (in thousands, except shares) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---| | DRIP participation | $18,466 | $17,229 | | Shares issued for DRIP | 324,454 | 366,496 | - DRIP participation for the six months ended June 30, 2025, was **$18,466 thousand**, leading to the issuance of **324,454 shares**[331](index=331&type=chunk) [NOTE J — SHARE-BASED COMPENSATION](index=108&type=section&id=NOTE%20J%20%E2%80%94%20SHARE-BASED%20COMPENSATION) This note details Main Street's share-based compensation plans, including restricted stock awards and unrecognized expense - Total share-based compensation expense was **$10.3 million** for the six months ended June 30, 2025, an increase from $9.0 million in the prior year[335](index=335&type=chunk) - As of June 30, 2025, there was **$46.0 million** of total unrecognized compensation expense related to non-vested restricted shares, expected to be recognized over a weighted-average period of **2.8 years**[339](index=339&type=chunk) Restricted Stock Awards (RSAs) Activity (shares) | Metric | Six Months Ended June 30, 2025 | |:---|:---| | Non-vested, December 31, 2024 | 1,039,417 | | Granted | 455,810 | | Vested | (455,608) | | Forfeited | (13,231) | | Non-vested, June 30, 2025 | 1,026,388 | | Restricted stock available for issuance (Equity and Incentive Plan) | 3,511,962 | | Restricted stock available for issuance (Non-Employee Director Plan) | 285,545 | [NOTE K — COMMITMENTS AND CONTINGENCIES](index=109&type=section&id=NOTE%20K%20%E2%80%94%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines Main Street's outstanding commitments and confirms no material impact from current legal proceedings - Total outstanding commitments were **$307.5 million** as of June 30, 2025, comprising **$28.9 million** in equity capital commitments and **$278.6 million** in loan commitments[340](index=340&type=chunk)[342](index=342&type=chunk)[516](index=516&type=chunk) - The largest loan commitments include Mission Critical Group (**$39.0 million**), ZRG Partners, LLC (**$20.8 million**), and TEC Services, LLC (**$16.2 million**)[340](index=340&type=chunk)[342](index=342&type=chunk) - Main Street expects to fund unfunded commitments through existing cash, operating cash flows, and available borrowings under Credit Facilities[344](index=344&type=chunk)[508](index=508&type=chunk) - The company does not expect any current legal proceedings to materially affect its financial condition or results of operations[345](index=345&type=chunk)[534](index=534&type=chunk) [NOTE L — RELATED PARTY TRANSACTIONS](index=113&type=section&id=NOTE%20L%20%E2%80%94%20RELATED%20PARTY%20TRANSACTIONS) This note describes Main Street's transactions and agreements with related parties, including investment activities and compensation - Main Street had a **$10.7 million** receivable from the External Investment Manager as of June 30, 2025, including operating expenses and declared but unpaid dividends[347](index=347&type=chunk) - Main Street has a share purchase plan to buy up to **$20.0 million** of MSC Income common stock in the open market when its price is below NAV, with **$19.955 million** remaining available as of June 30, 2025[349](index=349&type=chunk)[351](index=351&type=chunk) - Main Street committed **$15.0 million** to Private Loan Fund I, with **$14.2 million** funded and **$0.8 million** unfunded as of June 30, 2025, and provided a **$15.0 million** revolving line of credit to the fund, with **$4.0 million** outstanding[353](index=353&type=chunk)[354](index=354&type=chunk) - Main Street committed **$15.0 million** to Private Loan Fund II, with **$9.0 million** funded and **$6.0 million** unfunded as of June 30, 2025[355](index=355&type=chunk) - As of June 30, 2025, **$30.1 million** was deferred under the Deferred Compensation Plan, with **$11.4 million** in phantom Main Street stock units and **$18.7 million** in funded investments in trust, including **$2.1 million** in Private Loan Fund I and **$4.5 million** in Private Loan Fund II[358](index=358&type=chunk) [NOTE M — SUBSEQUENT EVENTS](index=115&type=section&id=NOTE%20M%20%E2%80%94%20SUBSEQUENT%20EVENTS) This note reports subsequent events, including the declaration of supplemental and regular monthly dividends for 2025 - Main Street declared a supplemental dividend of **$0.30 per share** payable in September 2025[359](index=359&type=chunk)[522](index=522&type=chunk) - Regular monthly dividends of **$0.255 per share** were declared for October, November, and December 2025, totaling **$0.765 per share** for Q4 2025, a **4.1% increase** from Q4 2024[360](index=360&type=chunk)[523](index=523&type=chunk) - Cumulative dividends paid since the October 2007 IPO will reach **$46.855 per share**, including Q3 and Q4 2025 declarations[360](index=360&type=chunk)[523](index=523&type=chunk) [Consolidated Schedules of Investments in and Advances to Affiliates](index=116&type=section&id=Consolidated%20Schedules%20of%20Investments%20in%20and%20Advances%20to%20Affiliates%20(unaudited)%E2%80%94Six%20months%20ended%20June%2030%2C%202025%20and%202024) These schedules detail Main Street's investments in and advances to affiliates for the six months ended June 30, 2025, and 2024 - Total Control investments as of June 30, 2025, were **$2,295,565 thousand**, with net realized gain of **$(2,976) thousand** and net unrealized appreciation of **$33,555 thousand** for the six months[379](index=379&type=chunk) - Total Affiliate investments as of June 30, 2025, were **$856,226 thousand**, with net realized gain of **$57,711 thousand** and net unrealized depreciation of **$(8,742) thousand** for the six months[379](index=379&type=chunk) - Geographically, Control investments were concentrated in the Southwest region (**$990,024 thousand fair value**) and Midwest region (**$586,104 thousand fair value**) as of June 30, 2025[379](index=379&type=chunk) - Affiliate investments were primarily in the Southeast region (**$202,564 thousand fair value**) and Southwest region (**$224,323 thousand fair value**) as of June 30, 2025[379](index=379&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=135&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Main Street's financial condition, operating results, investment strategies, and liquidity for the three and six months ended June 30, 2025 - Main Street's LMM investment strategy targets companies with annual revenues between **$10 million and $150 million** and EBITDA between **$3 million and $20 million**[413](index=413&type=chunk) - The Private Loan investment strategy focuses on companies with annual revenues between **$25 million and $500 million** and EBITDA between **$7.5 million and $50 million**[413](index=413&type=chunk) - The company's internally managed structure provides a beneficial operating expense structure, with total operating expenses (excluding interest) as a percentage of quarterly average total assets at **1.3%** for the trailing twelve months ended June 30, 2025[423](index=423&type=chunk) Comparison of Results of Operations (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | |:---|:---|:---|:---|:---| | Total investment income | $143,973 | $132,154 | $281,019 | $263,759 | | Total expenses | $(50,639) | $(44,854) | $(97,875) | $(86,653) | | Net investment income | $88,183 | $83,899 | $174,080 | $170,330 | | Net realized gain (loss) | $52,420 | $3,414 | $22,875 | $(8,954) | | Net unrealized appreciation (depreciation) | $(18,951) | $23,044 | $44,239 | $63,693 | | Net increase in net assets from operations | $122,534 | $102,688 | $238,616 | $209,835 | | Distributable net investment income | $94,344 | $88,885 | $185,263 | $179,881 | - Net cash provided by operating activities was **$82.1 million** for the six months ended June 30, 2025, a significant improvement from a net use of $304.5 million in the prior year[493](index=493&type=chunk) - As of June 30, 2025, Main Street had **$87.0 million** in cash and cash equivalents and **$1.264 billion** of unused capacity under its Credit Facilities[495](index=495&type=chunk) - The BDC asset coverage ratio was **253%** as of June 30, 2025, well above the 150% regulatory requirement[512](index=512&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=156&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details Main Street's exposure to financial market risks, particularly interest rate fluctuations, and provides a sensitivity analysis of net investment income - Main Street is subject to financial market risks, particularly changes in interest rates (SOFR and Prime rates), affecting both investment income and debt expense[525](index=525&type=chunk) - As of June 30, 2025, **66%** of the debt Investment Portfolio (at cost) bore floating interest rates, with **96%** of these subject to contractual minimums[526](index=526&type=chunk) - As of June 30, 2025, **79%** of debt obligations bore fixed interest rates[526](index=526&type=chunk) - The company has not entered into any interest rate hedging arrangements[526](index=526&type=chunk) Sensitivity of Annualized Net Investment Income to Hypothetical Base Rate Changes (in thousands, except per share amounts) | Basis Point Change | Increase (Decrease) in Interest Income | (Increase) Decrease in Interest Expense | Increase (Decrease) in Net Investment Income from the External Investment Manager | Increase (Decrease) in Net Investment Income | Increase (Decrease) in Net Investment Income per Share | |:---|:---|:---|:---|:---|:---| | (200) | $(42,342) | $9,540 | $(855) | $(33,657) | $(0.38) | | (100) | $(20,823) | $4,770 | $(384) | $(16,437) | $(0.18) | | 100 | $20,590 | $(4,770) | $665 | $16,485 | $0.18 | | 200 | $41,199 | $(9,540) | $1,119 | $32,778 | $0.37 | [Item 4. Controls and Procedures](index=157&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirms the effectiveness of disclosure controls and procedures as of June 30, 2025, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of June 30, 2025[531](index=531&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended June 30, 2025[531](index=531&type=chunk) PART II OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, and exhibits, providing additional context [Item 1. Legal Proceedings](index=158&type=section&id=Item%201.%20Legal%20Proceedings) The company does not anticipate any current legal proceedings to materially impact its financial condition or results of operations - The company does not expect any current legal proceedings to materially affect its financial condition or results of operations[534](index=534&type=chunk) [Item 1A. Risk Factors](index=158&type=section&id=Item%201A.%20Risk%20Factors) This section refers to previously disclosed risk factors, confirming no material changes since the last annual and quarterly reports - No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for December 31, 2024, and the Quarterly Report on Form 10-Q for March 31, 2025[537](index=537&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=158&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Main Street issued common stock through its dividend reinvestment plan and may withhold shares for employee tax purposes during the quarter - **167,705 shares** of common stock were issued under the dividend reinvestment plan during the three months ended June 30, 2025, with an aggregate value of **$9.4 million**[538](index=538&type=chunk) - Shares may be withheld upon vesting of restricted stock for employee payroll tax withholding, treated as common stock purchases by the company[539](index=539&type=chunk) [Item 5. Other Information](index=158&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading plans or other trading arrangements during the quarter ended June 30, 2025 - No directors or officers adopted or terminated any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended June 30, 2025[540](index=540&type=chunk) [Item 6. Exhibits](index=159&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including credit agreement amendments, officer certifications, and iXBRL financial information - Exhibits include the Seventh Amendment to Third Amended and Restated Credit Agreement (April 30, 2025) and the Third Amendment to Credit Agreement (April 24, 2025)[541](index=541&type=chunk) - Certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) and Section 906 of the Sarbanes-Oxley Act of 2002 are filed/furnished[541](index=541&type=chunk) - Financial information from the Quarterly Report is provided in Inline Extensible Business Reporting Language (iXBRL) format[541](index=541&type=chunk) [Signatures](index=160&type=section&id=Signatures) This section contains the required signatures of Main Street Capital Corporation's authorized officers, certifying the report's submission - The report is signed by Dwayne L. Hyzak (Chief Executive Officer), Ryan R. Nelson (Chief Financial Officer), and Ryan H. McHugh (Chief Accounting Officer) on August 8, 2025[546](index=546&type=chunk)

Financial Data and Key Metrics Changes - The company reported total investment income of $144 million for the second quarter, an increase of $11.8 million or 8.9% year-over-year and $6.9 million or 5.1% from the previous quarter [25] - Annualized return on equity was 17.1%, and distributable net investment income (DNII) per share exceeded dividends paid to shareholders [9][30] - Net asset value (NAV) per share reached a record of $32.3, increasing by $0.27 from the previous quarter and by $2.5 or 8.4% year-over-year [30] Business Line Data and Key Metrics Changes - The lower middle market portfolio saw a net increase in investments of $108 million, while private loan investments decreased by $35 million due to lower overall private equity activity [11][24] - The company achieved significant realized gains of $109 million from equity investments in two lower middle market portfolio companies [20][21] - Dividend income increased by $11.2 million year-over-year, driven by the positive performance of lower middle market portfolio companies [26] Market Data and Key Metrics Changes - The private loan investment pipeline was characterized as slightly below average, attributed to a slowdown in overall private equity industry activity [16][18] - The company maintained a diversified portfolio with investments in 187 companies across various industries, with no single investment representing more than 3.9% of total investment income [24] Company Strategy and Development Direction - The company focuses on a differentiated investment strategy in the lower middle market, providing flexible financing solutions and maintaining a long-term investment horizon [16][19] - Plans to grow the asset management business and continue executing investment strategies in the lower middle market were highlighted [12][14] - The company remains optimistic about future investment opportunities, particularly in the lower middle market, despite current economic uncertainties [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability of portfolio companies to navigate economic uncertainties, with a focus on avoiding new investments in companies with significant consumer exposure [38][40] - The company anticipates continued favorable performance in the third quarter, with expectations for additional supplemental dividends if DNII significantly exceeds regular dividends [15][30] Other Important Information - The company declared a supplemental dividend of $0.30 per share, marking the sixteenth consecutive quarterly supplemental dividend [14] - The total investment portfolio at fair value was 17% above the related cost basis at quarter-end [24] Q&A Session Summary Question: Insights on the reduction in private loan investments - Management indicated that the reduction was due to a combination of lower investment activity and higher-than-expected repayments, with the overall private equity industry still slow [34][35] Question: Themes in underperformance within the portfolio - Management noted that underperformance was primarily in consumer businesses, particularly at the lower end of the market, and indicated a cautious approach to new investments in this sector [39][40] Question: Future exit opportunities and realized gains - Management believes there are potential exit opportunities in the near term, with a mature portfolio that could lead to additional realized gains [44][46] Question: Relationship between spread tightening and deal activity - Management explained that softer deal activity is linked to a decrease in M&A activity in the private equity sector, with expectations for improvement in the future [50][52] Question: Funding options for upcoming debt maturities - Management highlighted strong liquidity and a conservative capital structure, allowing flexibility in addressing upcoming debt maturities [53][55]

Core Insights - Main Street Capital Corporation (MAIN) reported an adjusted net investment income of 99 cents per share for Q2 2025, matching the Zacks Consensus Estimate but down from $1.01 per share in the same quarter last year [1] - The increase in total investment income was a positive factor, while rising expenses negatively impacted the results [1] - Distributable net investment income on a GAAP basis was $94.3 million, reflecting a 6% increase year-over-year [1] Total Investment Income & Expenses - Total investment income for Q2 was $143.9 million, a 9% increase year-over-year, primarily driven by higher dividend income, although it fell short of the Zacks Consensus Estimate by 4.9% [2] - Total expenses rose to $50.6 million, up 12.9% year-over-year, with increases across all expense categories [2] Portfolio Activities - In Q2, the company invested $209.3 million in its lower middle market (LMM) portfolio, with $110.3 million allocated to new portfolio companies, compared to $154.5 million in the same quarter last year [3] - Total private loan portfolio investments amounted to $188.6 million, down from $323.8 million in the prior-year quarter [3] Balance Sheet Position - As of June 30, 2025, cash and cash equivalents were $86.9 million, down from $109.2 million as of March 31, 2025 [5] - The company has an unused capacity of $1.26 billion under its corporate revolving credit facility, a 5.9% increase from the previous quarter [5] - Total assets were $5.3 billion, slightly up from the previous quarter, and net asset value per share increased to $32.30 from $32.03 [5] Future Outlook - Growth in total investment income is expected to continue, driven by increased demand for customized financing and higher investment commitments, although rising expenses present a near-term concern [6]

Company Overview and Strategy - Main Street Capital Corporation (MAIN) focuses on Lower Middle Market (LMM) debt and equity investments and has an asset management business[7] - The company manages over $8.4 billion in capital, with over $6.5 billion managed internally and approximately $1.9 billion managed for external parties[8] - MAIN aims to provide sustainable growth in recurring monthly dividends, supplemental dividends, and long-term capital appreciation to shareholders[9] Dividend and NAV Growth - Monthly dividends have increased by 132% from $0.33 per share in Q4 2007 to $0.765 per share for Q4 2025[12, 16] - Supplemental dividends of $1.20 per share were paid or declared during the last twelve months[12] - Net Asset Value (NAV) has grown by $19.45 per share (or 151%) since 2007[14, 16] Investment Portfolio - The total investment portfolio is diversified, with approximately 52% in LMM investments and 38% in Private Loan investments[50] - The LMM portfolio has 88 companies with $2.7 billion in fair value, with debt yielding 12.8% and an average equity ownership of 38%[62, 63] - The Private Loan portfolio consists of 87 investments with $1.9 billion in fair value, yielding 11.4%[81, 82] Financial Performance - Total investment income for the year-to-date 2025 is $541 million[93] - Distributable Net Investment Income (DNII) for the year-to-date 2025 is $281 million[93] - DNII per share for Q2 2025 is $1.06[104] Capital Structure and Liquidity - The company has total SBIC debentures regulatory financing capacity of $350 million[12, 35] - Total liquidity is $1.351 billion, including cash and availability under credit facilities[108] - 79% of MAIN's outstanding debt obligations have fixed interest rates[118]

Core Insights - Main Street Capital Corporation reported strong financial results for the second quarter of 2025, with a net investment income of $0.99 per share and a distributable net investment income of $1.06 per share, reflecting a 2% and 3% increase respectively compared to the same period in 2024 [1][5][10] - The company achieved an annualized return on equity of 17.1% and a net asset value of $32.30 per share, marking a 0.8% increase from the previous quarter [3][5][11] - The company declared a supplemental dividend of $0.30 per share, continuing a trend of increasing dividends over the past few years [3][5] Financial Performance - Total investment income for the second quarter of 2025 was $144.0 million, an increase of 9% from $132.2 million in the same quarter of 2024, driven primarily by a $11.2 million increase in dividend income [4][6][10] - Net investment income increased by $4.3 million, or 5%, to $88.2 million, while distributable net investment income rose by $5.5 million, or 6%, to $94.3 million [5][10] - The company reported a net increase in net assets resulting from operations of $122.5 million, a 19% increase from the prior year [11][29] Investment Portfolio - As of June 30, 2025, Main Street's investment portfolio included 88 lower middle market (LMM) companies with a fair value of $2.67 billion and 87 private loan companies with a fair value of $1.92 billion [15][30] - The weighted-average annual effective yield for the LMM portfolio was 12.8%, while the private loan portfolio had a yield of 11.4% [15][16] - The company completed $209.3 million in total LMM portfolio investments and $188.6 million in private loan portfolio investments during the quarter [5][11] Capital Structure and Liquidity - Main Street had aggregate liquidity of $1.351 billion as of June 30, 2025, including $87.0 million in cash and cash equivalents [14][17] - The company maintains a diversified capital structure with total liabilities of $2.40 billion and total net assets of $2.88 billion [30][31] - Main Street has investment grade credit ratings of BBB- from both Fitch Ratings and S&P Global Ratings, reaffirmed in 2025 [17][18] Dividend Policy - The company declared regular monthly dividends totaling $0.765 per share for the third quarter of 2025, representing a 4.1% increase from the previous year [5][10] - Total dividends paid in the second quarter of 2025 amounted to $1.05 per share, a 2.9% increase from the same quarter in 2024 [5][10]

Core Viewpoint - The article discusses the potential for a divergence between the Federal Reserve's interest rates and the 10-year Treasury rates, suggesting that this could create investment opportunities, particularly in a specific business development company (BDC) called Main Street Capital (MAIN) [3][4][8]. Economic Context - The Atlanta Fed's GDPNow model indicates a solid economic growth rate of 2.9%, which may lead to increased stimulus as the election cycle approaches [5]. - Option traders anticipate that the Fed will cut rates by at least 50 basis points by the end of the year, coinciding with the potential replacement of Fed Chair Jerome Powell in May [6]. Company Overview: Main Street Capital (MAIN) - MAIN is identified as a BDC that lends to small- and mid-sized businesses, focusing on firms with revenues between $25 million and $500 million [9]. - The company has a balanced debt structure, with 77% of its outstanding debt obligations being fixed rate and 68% of its debt investments being floating-rate, providing insulation against interest rate fluctuations [12]. Dividend Insights - MAIN's dividend yield is reported at approximately 4.7%, but the trailing-12-month yield, which accounts for supplemental dividends, is significantly higher at 5.7% [13][14]. - The company has a strong track record of maintaining its dividend payouts, having never cut or suspended them in its 18-year history [14]. Portfolio Diversification - MAIN's investment portfolio is diversified across 189 companies, with no single investment exceeding 3.2% of investment income, thereby spreading risk effectively [15]. Performance Metrics - Since the recommendation to buy in May 2025, MAIN has outperformed the BDC index fund, achieving a 22% increase, which translates to a 91% annualized return [16].

Industry Overview - The Zacks SBIC & Commercial Finance industry provides financing to small and mid-sized privately held firms, often underserved by traditional banks, focusing on customized financing solutions such as senior debt and equity capital [3] - The industry is currently facing challenges due to persistent high interest rates and tariff impacts, which are expected to reduce financing demand and slow investment income growth [1][5] Current Economic Environment - The Federal Reserve has maintained interest rates at 4.25–4.5%, with a cautious approach to potential rate cuts due to economic uncertainties [4] - Elevated rates and tariff effects are likely to dampen demand for financing solutions, limiting transaction activity and growth in total investment income [5] Asset Quality Concerns - Following the COVID-19 pandemic, asset quality concerns arose as borrowers struggled to repay debts, although government stimulus and economic recovery helped mitigate delinquency rates [6] - Prolonged high interest rates may lead to further asset quality deterioration as portfolio companies face challenges in servicing their debt [7] Regulatory Changes - The 2018 SBCAA relaxed leverage limits for SBIC companies, allowing a debt-to-equity ratio increase from 1:1 to 2:1, providing funding flexibility and growth opportunities [8] Industry Performance Metrics - The Zacks SBIC & Commercial Finance industry ranks 144 out of over 250 Zacks industries, indicating underperformance in the near term [9][10] - The industry's earnings estimates for 2025 have been revised down by 10% over the past year, reflecting a declining confidence in growth potential [11] Stock Market Performance - Over the past year, the industry has gained only 3.9%, significantly underperforming the S&P 500 composite and the Zacks Finance sector, which increased by 20.8% and 21.8%, respectively [13] Valuation Analysis - The industry has a trailing 12-month price-to-tangible book (P/TB) ratio of 0.94X, significantly lower than the S&P 500's 12.86X, indicating a substantial discount compared to the broader market [16][18] Key Companies to Watch - **Ares Capital Corporation (ARCC)**: A specialty finance firm focusing on U.S. middle-market companies, with a market cap of $15.8 billion and a debt of $14.1 billion as of June 30, 2025 [22][21] - **Main Street Capital Corporation (MAIN)**: A private equity firm with a market cap of $5.7 billion, specializing in lower-middle-market companies, holding total investments valued at $5.1 billion [25][27] - **Hercules Capital, Inc. (HTGC)**: A specialty finance company providing venture capital, with a market cap of $3.4 billion and a total investment portfolio valued at $4.2 billion as of June 30, 2025 [31][32]

| | DeclaredEx-Dividend DateRecord Date | | Payment Date | Amount Per Share | | --- | --- | --- | --- | --- | | 8/4/2025 | 10/8/2025 | 10/8/2025 | 10/15/2025 | $0.255 | | 8/4/2025 | 11/7/2025 | 11/7/2025 | 11/14/2025 | $0.255 | | 8/4/2025 | 12/8/2025 | 12/8/2025 | 12/15/2025 | $0.255 | | | | | Total for Fourth Quarter 2025: | $0.765 | In addition to the regular monthly dividends for the fourth quarter of 2025, the Board of Directors declared a supplemental cash dividend of $0.30 per share payable in Septemb ...

Core Insights - Roberts Berzins has over a decade of experience in financial management, focusing on helping top-tier corporates shape financial strategies and execute large-scale financings [1] - Significant efforts have been made to institutionalize the REIT framework in Latvia to enhance the liquidity of pan-Baltic capital markets [1] - Development of national SOE financing guidelines and frameworks for channeling private capital into affordable housing stock has been a key policy-level initiative [1] - Roberts is a CFA Charterholder and holds an ESG investing certificate, indicating a strong background in finance and sustainable investing [1] - Active involvement in "thought-leadership" activities supports the development of pan-Baltic capital markets [1]

Core Viewpoint - Main Street Capital (MAIN) is highlighted as a strong investment opportunity due to its reliable and attractive dividend income, distinguishing itself from other business development companies (BDCs) [1]. Dividend Policy - BDCs are required to distribute 90% of their taxable income to shareholders, leading to lucrative dividends [3]. - Main Street Capital differentiates itself by paying monthly dividends instead of the typical quarterly payments, ensuring consistent income for investors [4]. - The company has a strong track record, having never cut or suspended its dividend, and has increased its monthly payout by 132% since 2007 [4]. - Over the past year, Main Street has raised its monthly dividend twice, totaling a 4.1% increase [4]. Supplemental Dividends - Main Street Capital also pays supplemental dividends on a quarterly basis, which helps meet the 90% distribution requirement and provides additional income to investors [5]. - Since the end of 2021, the company has consistently paid supplemental dividends every quarter [5]. Dividend Yield - For the third quarter, Main Street Capital declared a total of $1.065 per share in dividends, consisting of $0.765 in monthly payments and a $0.30 supplemental payment [6]. - This results in an annualized dividend yield of around 8%, significantly higher than the S&P 500's sub-1.5% yield, making it an attractive option for passive income seekers [6].