UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Table of Contents (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 814-00866 MONROE CAPITAL CORPORATION (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorporation or Organiz ...

CHICAGO, Aug. 11, 2025 (GLOBE NEWSWIRE) -- Monroe Capital Corporation (NASDAQ: MRCC) today announced its financial results for the second quarter ended June 30, 2025. In a separate joint release issued on August 7, 2025, MRCC and Horizon Technology Finance Corporation ("HRZN") announced that they have entered into a definitive merger agreement (the "Merger Agreement"), under which MRCC would merge with and into HRZN (the "Merger"), subject to the receipt of certain shareholder approvals and the satisfaction ...

Company Overview - Monroe Capital Corporation is a publicly-traded specialty finance company that primarily invests in senior, unitranche, and junior secured debt, as well as unsecured debt and equity investments in middle-market companies [2] - The company's investment objective is to maximize total return to stockholders through current income and capital appreciation [2] - Investment activities are managed by Monroe Capital BDC Advisors, LLC, an investment adviser registered under the Investment Advisers Act of 1940 [2] Recent Developments - Monroe Capital Corporation will report its second quarter financial results for the period ended June 30, 2025, on August 11, 2025, after the close of financial markets [1] Awards and Recognition - Monroe has received multiple awards, including Private Debt Investor's 2024 Lower Mid-Market Lender of the Year and 2023 Lower Mid-Market Lender of the Decade [4] - Other accolades include recognition from Global M&A Network and Creditflux for excellence in private debt and direct lending [4] Investment Strategy - Monroe Capital LLC specializes in private credit markets, offering various strategies such as direct lending, technology finance, and alternative credit solutions [3] - The firm aims to provide high-quality "alpha" returns regardless of business or economic cycles [3]

Horizon Finance (HRZN) Q2 2025 Earnings Call August 07, 2025 05:00 PM ET Speaker0Greetings, and welcome to the Horizon Technology Finance Corporation Second Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce Megan Bacon, Director of Investor Relations and Marketing.Please go ahead.Speaker1Thank you, and welcom ...

E x p e r i e n c e | S e c u r i t y | C o n s i s t e n c y Overview of Merger Between Horizon Technology Finance Corporation (HRZN) and Monroe Capital Corporation (MRCC) August 7, 2025 1 Forward-Looking Statements and Disclaimers Unless otherwise stated, all financial information and other data presented in this presentation is as of June 30, 2025. Forward-Looking Statements Some of the statements in this presentation constitute forward-looking statements because they relate to future events, future perf ...

Exhibit 99.1 Monroe Capital Corporation and Horizon Technology Finance Corporation Enter into Definitive Merger Agreement Monroe Capital Corporation Additionally Signs Definitive Asset Purchase Agreement to Sell its Investment Assets to Monroe Capital Income Plus Corporation Immediately Preceding Merger Transaction to Drive Scale and Shareholder Value Across Monroe Capital BDC Platforms Chicago, IL – August 7, 2025 – Monroe Capital LLC ("Monroe Capital") today announced that Monroe Capital Corporation ("MRC ...

Financial Data and Key Metrics Changes - The meeting confirmed that a quorum was present with 11,252,209 shares represented, approximately 51.93% of all shares entitled to vote [11] - The preliminary report indicated that Thomas J. Allison and Robert S. Rubin were elected as Class One Directors, each receiving at least 8,906,506 affirmative votes [26] - Approval was granted for the company to sell shares below net asset value during the next twelve months, with at least 8,793,304 affirmative votes [26] Business Line Data and Key Metrics Changes - No specific business line data or key metrics were discussed during the meeting Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting Company Strategy and Development Direction and Industry Competition - The company proposed to sell shares of common stock at a price below the current net asset value, indicating a strategy to enhance liquidity and flexibility in capital management [19] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting Other Important Information - The meeting included the election of directors and a proposal for share sales, which were both approved by stockholders [26][27] Summary of Q&A Session Question: Were there any questions from shareholders? - There were no questions from shareholders during the Q&A session [25]

Financial Data and Key Metrics Changes - The company declared and paid a $0.25 per share dividend in Q1 2025, representing an annualized dividend yield of 14.3% based on the closing share price on 05/06/2025 [4] - Adjusted net investment income was $4.2 million or $0.19 per share, down from $6.2 million or $0.29 per share in the previous quarter [16][17] - NAV decreased to $186.9 million or $8.63 per share from $191.8 million or $8.85 per share at the end of Q4 2024 [18] Business Line Data and Key Metrics Changes - The investment portfolio totaled $430.6 million, a decrease of $26.4 million from $457 million at the end of Q4 2024, consisting of debt and equity investments in 85 portfolio companies [12] - Investment income totaled $11.6 million in Q1 2025, down from $14 million in Q4 2024, primarily due to lower effective yield and a decrease in average invested assets [20] Market Data and Key Metrics Changes - Middle market direct lending volume in Q1 2025 was down 22% from Q4 2024 but up 16% year-over-year [12] - The weighted average effective yield on the portfolio's debt and equity investments was 9.2% at 03/31/2025, compared to 10.2% at 12/31/2024 [17] Company Strategy and Development Direction - The company focuses on maintaining asset quality and positioning the portfolio for long-term performance amid market volatility [4][8] - The strategy includes supporting existing portfolio companies and selectively deploying capital into recession-resistant industries [9][10] - The partnership with Wendell Group aims to drive value for shareholders while maintaining operational independence [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the portfolio and the ability to navigate near-term income volatility [27] - The company anticipates that net investment income will be shy of current dividend levels in the short run, relying on accumulated spillover income to support dividends [30] Other Important Information - The company ended the quarter with reduced balance sheet leverage, with a leverage ratio of 1.45 times debt to equity compared to 1.53 times at the end of 2024 [16] - Total expenses for Q1 2025 were $7.6 million, down from $8 million in Q4 2024, primarily due to a decline in interest expense [24] Q&A Session Summary Question: Sustainability of the dividend - Management is evaluating the dividend in light of current earnings and anticipates that net investment income will be shy of current dividend levels in the short run, using spillover income to support the dividend [29][30] Question: Stock buybacks - The company has historically not supported stock buybacks, focusing instead on maintaining leverage and supporting portfolio companies [31] Question: Fee waivers - Management clarified that they continue to support MRCC and have waived incentive fees in the current and prior quarters, indicating ongoing support [35][36] Question: SLF structure and future - Management is evaluating whether to continue allowing the SLF portfolio to run off or to deleverage it, expressing a lack of constructive outlook on this end of the market [38][39] Question: Strategic evolution post-partnership - The company will continue to evolve strategically to create value for shareholders, with ongoing evaluations of strategic opportunities [42][43]

Financial Data and Key Metrics Changes - The company declared and paid a $0.25 per share dividend in Q1 2025, representing an annualized dividend yield of 14.3% based on the closing share price on 05/06/2025 [4] - Adjusted net investment income was $4.2 million or $0.19 per share, down from $6.2 million or $0.29 per share in the previous quarter [16] - NAV decreased to $186.9 million or $8.63 per share from $191.8 million or $8.85 per share at the end of Q4 2024 [18] - The weighted average effective yield on the portfolio's debt and equity investments was 9.2%, down from 10.2% in the previous quarter [18] Business Line Data and Key Metrics Changes - The investment portfolio totaled $430.6 million, a decrease of $26.4 million from $457 million at the end of Q4 2024 [12] - The company invested $7.6 million in one new portfolio company and $8.8 million in delayed draw fundings and add-ons to existing portfolio companies during the quarter [14] - The company rotated out of seven legacy assets amounting to $37.6 million in payoffs during the quarter [14] Market Data and Key Metrics Changes - Middle market direct lending volume in Q1 2025 was down 22% from Q4 2024 but up 16% year-over-year [12] - The average mark on the portfolio decreased from 92.2% of costs at 12/31/2024 to 91.1% of costs at 03/31/2025 [24] - The average mark on the SLF portfolio decreased from 86.8% of amortized costs to 82.8% of amortized costs during the same period [25] Company Strategy and Development Direction - The company focuses on maintaining asset quality and positioning the portfolio for long-term performance amid market volatility [4] - The strategy includes utilizing proceeds from portfolio exits to redeploy into attractive investment opportunities as credit conditions tighten [6] - The company aims to support existing portfolio companies, particularly in recession-resistant industries, to navigate a slower M&A environment [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the portfolio and the ability to navigate near-term income volatility [26] - The company anticipates that net investment income will fall short of current dividend levels in the short run, relying on accumulated spillover income to support dividends [28] - Management noted that credit quality remains stable, with no new investments placed on nonaccrual status [21] Other Important Information - The company completed a partnership with Wendell Group, enhancing its strategic position while maintaining operational independence [10] - The company has approximately $11.5 million or $0.53 per share of undistributed spillover income available for future distributions [18] Q&A Session Summary Question: Sustainability of the dividend - Management is evaluating the dividend in light of current earnings and anticipates that net investment income will be shy of current dividend levels, using spillover income to support the dividend [28][29] Question: Stock buybacks - Management has historically not supported stock buybacks, focusing instead on maintaining leverage and supporting portfolio companies, but is aware of strategic options [30][31] Question: Fee waivers - Management clarified that while they have waived fees in the past, they are currently using spillover income to support dividends, but will continue to support MRCC [34][35] Question: SLF portfolio status - Management indicated that the SLF portfolio has been declining and they are evaluating whether to continue allowing it to run off or to deleverage it [36][37] Question: Future strategy post-partnership - Management stated that the company will continue to evolve strategically to create value for shareholders, including MRCC [41][42]

Group 1 - The article highlights that when a stock is trading near its 5-year lows and is in a long-term downtrend, it indicates underlying issues with the company or market conditions [1] Group 2 - Mr. Mavroudis is a professional portfolio manager with expertise in risk management and financial market analysis, focusing on various financial instruments globally [2] - He has successfully navigated major crises, including the COVID-19 pandemic, and is actively involved in financial media and educational seminars [2] - Mr. Mavroudis holds multiple degrees and certifications, enhancing his credibility in the investment field [2]