Monroe Capital (MRCC) came out with quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -40.00%. A quarter ago, it was expected that this business development company would post earnings of $0.21 per share when it actually produced earnings of $0.15, delivering a surprise of -28.57%.Over the last four ...

Investment Portfolio Composition - As of September 30, 2025, the portfolio included approximately 73.4% senior secured loans, 0.6% unitranche secured loans, 8.7% junior secured loans, and 17.3% equity investments, compared to December 31, 2024, when the portfolio included approximately 78.3% senior secured loans, 0.8% unitranche secured loans, 6.5% junior secured loans, and 14.4% equity investments [268]. - The investment objective is to maximize total return to stockholders through investment in senior secured, unitranche secured, and junior secured debt, with investments generally ranging between $2.0 million and $35.0 million each [268]. - As of September 30, 2025, the weighted average annualized contractual coupon yield for senior secured loans was 10.4%, while the total yield was 9.9% [280]. - The fair value of senior secured loans decreased to $264.7 million, representing 73.4% of total investments, down from $358.0 million or 78.3% as of December 31, 2024 [282]. - As of September 30, 2025, 79.5% of investments were rated Grade 2, indicating an acceptable level of risk, while 15.6% were rated Grade 3, indicating below-expectation performance [287]. - Investments on non-accrual status totaled $12.5 million at fair value, representing 3.5% of total investments as of September 30, 2025 [287]. Investment Activity - During the three months ended September 30, 2025, the company invested $9.0 million in 17 existing portfolio companies and had $15.2 million in aggregate sales and principal repayments, resulting in a net decrease in investments of $6.2 million for the period [277]. - For the nine months ended September 30, 2025, the company invested $7.6 million in one new portfolio company and $21.3 million in 59 existing portfolio companies, with $120.2 million in aggregate sales and principal repayments, resulting in a net decrease in investments of $91.3 million for the period [278]. - The company has not made investments in any new portfolio companies during the three months ended September 30, 2025 [277]. - During the nine months ended September 30, 2024, the company invested $27.6 million in six new portfolio companies and $44.1 million in 51 existing portfolio companies, resulting in a net decrease in investments of $14.6 million [280]. Financial Performance - The company's total investment income for the three months ended September 30, 2025, was $8.2 million, a decrease from $15.7 million in the same period of 2024 [288]. - For the nine months ended September 30, 2025, total investment income was $29.7 million, down from $46.5 million in 2024 [289]. - The net investment income before income taxes for the three months ended September 30, 2025, was $1.9 million, compared to $6.6 million in 2024 [288]. - The company reported a net realized loss on investments of $2.4 million for the three months ended September 30, 2025 [288]. - Total investment income decreased by $7.5 million (47.8%) and $16.8 million (36.2%) for the three and nine months ended September 30, 2025, compared to the same periods in 2024, primarily due to lower interest income, PIK interest income, and dividend income [291]. - For the three months ended September 30, 2025, the net increase (decrease) in net assets resulting from operations was $(1.1) million, compared to a net increase of $5.0 million in 2024 [303]. - For the nine months ended September 30, 2025, the net increase (decrease) in net assets resulting from operations was $(2.5) million, compared to a net increase of $11.4 million in 2024 [304]. Operating Expenses - The primary operating expenses include management and incentive fees to MC Advisors and other operating costs, including interest expense on indebtedness [275]. - Total operating expenses decreased by $2.8 million (30.9%) and $7.3 million (26.4%) during the three and nine months ended September 30, 2025, compared to the same periods in 2024, mainly due to lower interest and other debt financing expenses [294]. Debt and Liquidity - As of September 30, 2025, the company had $3.5 million in cash and cash equivalents, $82.8 million of total debt outstanding on the revolving credit facility, and $130.0 million on the 2026 Notes [305]. - The asset coverage ratio based on aggregate borrowings outstanding was 181% as of September 30, 2025, compared to 165% as of December 31, 2024 [306]. - For the nine months ended September 30, 2025, the company experienced a net decrease in cash and cash equivalents of $5.5 million, with operating activities providing $92.7 million [307]. - The company reduced its commitment of the Revolving Credit Facility from $255.0 million to $175.0 million on August 20, 2025 [313]. - The outstanding borrowings under the Revolving Credit Facility were accruing at a weighted average interest rate of 6.9% as of September 30, 2025, compared to 7.1% as of December 31, 2024 [317]. Market Conditions and Risks - Increased competition in the middle-market lending space has resulted in lower yields and weaker financial covenants for new assets [351]. - Middle market direct lending has historically outperformed U.S. high yield bonds and U.S. traded loans, generating considerable yield premiums during various economic cycles [1]. - Interest coverage ratios have increased above 2024 levels, indicating borrowers' earnings power sufficiently satisfies debt service obligations [1]. - U.S. inflation rates remain above historical levels, increasing costs for labor, energy, and raw materials, which could adversely affect portfolio companies' profit margins [380]. Valuation and Accounting - The Valuation Designee uses a multi-step valuation process for investments lacking readily available market quotations, including independent appraisals [2]. - As of September 30, 2025, the fair value of the investment portfolio was determined in accordance with GAAP and the company's valuation procedures [2]. - The company is currently evaluating the impact of new accounting standards but does not expect a material impact on its consolidated financial statements [2]. - The company is subject to financial market risks, including interest rate risk and inflation, which may affect the prices of securities held [2].

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Financial Performance - Net Investment Income (NII) for Q3 2025 was $1.8 million, or $0.08 per share, down from $3.3 million, or $0.15 per share in Q2 2025[3][8] - Adjusted Net Investment Income for Q3 2025 was $1.9 million, or $0.09 per share, compared to $3.3 million, or $0.15 per share in the previous quarter[4][8] - Total investment income for Q3 2025 was $8.2 million, down from $9.9 million in Q2 2025, primarily due to declines in dividend income and interest income[9] - Total investment income decreased to $8,206,000 for the quarter ended September 30, 2025, down 16.9% from $9,873,000 in the previous quarter[23] - Net investment income before income taxes was $1,883,000, a decline of 42.2% compared to $3,255,000 in the prior quarter[23] - Net increase in net assets resulting from operations was a loss of $1,137,000, compared to a loss of $1,869,000 in the previous quarter[23] - The company reported a net realized loss of $2,378,000 from non-controlled/non-affiliate company investments for the quarter[23] Asset and Liability Management - Net Asset Value (NAV) decreased to $173.0 million, or $7.99 per share, from $179.6 million, or $8.29 per share in Q2 2025[4][6] - Total assets decreased to $388,952,000 as of September 30, 2025, down from $394,617,000 at the end of the previous quarter[21] - Total liabilities increased slightly to $215,914,000 from $215,025,000 in the previous quarter[21] - Net asset value per share decreased to $7.99 from $8.29 in the previous quarter[21] Investment and Portfolio Management - The number of portfolio company investments decreased to 79 from 80 in the previous quarter[7] - The percentage of portfolio company investments on non-accrual status was 3.5%, slightly down from 3.6% in Q2 2025[7] - Interest income from non-controlled/non-affiliate company investments was $5,463,000, down from $6,757,000 in the previous quarter[23] Expenses and Cost Management - Total expenses for Q3 2025 were $6.4 million, a decrease from $6.6 million in Q2 2025, mainly due to lower professional fees and management fees[10] - Total operating expenses were $6,323,000, a decrease from $6,618,000 in the prior quarter[23] Future Outlook - The company anticipates closing its merger with Horizon Technology Finance Corporation in Q1 2026, which is expected to unlock value for shareholders[2] - The company continues to focus on maximizing total return to stockholders through current income and capital appreciation[25] Debt Management - The company's debt-to-equity leverage increased to 1.23 times as of September 30, 2025, from 1.17 times at the end of Q2 2025[5] - As of September 30, 2025, the company had $3.5 million in cash and cash equivalents and $82.8 million of debt outstanding on its revolving credit facility[13]

CHICAGO, Nov. 05, 2025 (GLOBE NEWSWIRE) -- Monroe Capital Corporation (NASDAQ: MRCC) today announced its financial results for the third quarter ended September 30, 2025. Except where the context suggests otherwise, the terms “Company,” “we,” “us,” and “our” refer to Monroe Capital Corporation (together with its subsidiaries). Third Quarter 2025 Financial Highlights Net Investment Income ("NII") of $1.8 million, or $0.08 per shareAdjusted Net Investment Income (a non-GAAP measure described below) of $1.9 mi ...

Core Viewpoint - Monroe Capital Corporation will report its third quarter financial results for the period ending September 30, 2025, on November 5, 2025, after market close [1] Company Overview - Monroe Capital Corporation is a publicly-traded specialty finance company focused on investing 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 for stockholders through current income and capital appreciation [2] - Investment activities are managed by Monroe Capital BDC Advisors, LLC, which is registered under the Investment Advisers Act of 1940 [2] Asset Management Firm - Monroe Capital LLC specializes in private credit markets, offering various strategies including direct lending, technology finance, venture debt, and structured credit [3] - The firm has been providing capital solutions since 2004 and operates in the U.S. and Canada [3] - Monroe Capital LLC aims to generate high-quality "alpha" returns for institutional and high net worth investors, regardless of economic cycles [3] Awards and Recognition - Monroe has received multiple awards, including being named in Inc.'s 2025 Founder-Friendly Investors List and recognized as the 2025 Most Innovative Private Credit CLO Manager of the Year by DealCatalyst [4] - The firm has also been acknowledged as the 2024 Lower Mid-Market Lender of the Year by Private Debt Investor and the 2024 Lower Mid-Markets Lender of the Year by Global M&A Network [4]

Core Insights - Monroe Capital LLC has officially opened its office in Abu Dhabi, marking a significant milestone for the company in the private credit markets [1] Company Developments - The new office was established following the receipt of Financial Services Permission (FSP) from the Financial Services Regulatory Authority of ADGM [1] - This expansion into Abu Dhabi positions Monroe Capital to leverage the opportunities within the international financial center of the UAE [1]

Core Insights - Monroe Capital LLC's Chairman and CEO Ted Koenig discussed inflation risk, interest-rate cuts, AI infrastructure, and the outlook for mergers and acquisitions in late 2025 [1] Inflation Risk - The discussion highlighted concerns regarding inflation risk and its potential impact on the market [1] Interest-Rate Cuts - Koenig provided insights on the anticipated interest-rate cuts and their implications for investment strategies [1] AI Infrastructure - The role of AI infrastructure in shaping future investment opportunities was emphasized, indicating a growing trend in the industry [1] Mergers and Acquisitions - The outlook for mergers and acquisitions in late 2025 was addressed, suggesting a dynamic environment for corporate consolidation [1]

Core Insights - Monroe Capital LLC has successfully exited its strategic investment in Superior Waste Industries, which was sold to GFL Environmental Inc. [1] - Superior Waste Industries, founded in 2022 and based in Shawnee, OK, achieved rapid growth through strategic acquisitions [1]. Company Overview - Superior Waste Industries was established in 2022 and is headquartered in Shawnee, Oklahoma [1]. - The company expanded its operations by acquiring several firms, including Central Disposal, Harley Hollan, Sue's Recycling and Sanitation, and SDS Roll-off Dumpsters [1]. Transaction Details - The exit from the investment was executed through the sale of Superior Waste Industries to GFL Environmental Inc. [1].

Group 1 - Halper Sadeh LLC is investigating BankFinancial Corporation's sale to First Financial Bancorp, which involves an exchange of 0.48 shares of First Financial common stock for each share of BankFinancial [1] - The firm is also looking into Monroe Capital Corporation's merger with Horizon Technology Finance Corporation [2] - Halper Sadeh LLC may seek increased consideration for shareholders and additional disclosures regarding the proposed transactions [3] Group 2 - Shareholders are encouraged to contact Halper Sadeh LLC to discuss their legal rights and options at no charge [4] - The firm represents investors globally who have experienced securities fraud and corporate misconduct, recovering millions for defrauded investors [4]