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]

Monroe Capital (MRCC) came out with quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -29.63%. A quarter ago, it was expected that this business development company would post earnings of $0.28 per share when it actually produced earnings of $0.29, delivering a surprise of 3.57%.Over the last four qu ...

Except where the context suggests otherwise, the terms "Company," "we," "us," and "our" refer to Monroe Capital Corporation (together with its subsidiaries). First Quarter 2025 Financial Highlights Exhibit 99.1 Monroe Capital Corporation BDC Announces First Quarter 2025 Results CHICAGO, IL, May 7, 2025 – Monroe Capital Corporation (NASDAQ: MRCC) today announced its financial results for the first quarter ended March 31, 2025. Chief Executive Officer Theodore L. Koenig commented, "We are pleased to announce ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 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) Maryland 27-4895840 (State or Other Jurisdiction of Inc ...

Core Viewpoint - Monroe Capital Corporation reported its financial results for the first quarter of 2025, highlighting a decrease in net investment income and net asset value, while maintaining a strong dividend yield supported by prior performance [1][3][5]. Financial Highlights - The company paid a dividend of $0.25 per share, reflecting an annualized yield of approximately 14.3% [3][4]. - Adjusted Net Investment Income (NII) for Q1 2025 was $4.2 million, or $0.19 per share, down from $6.2 million, or $0.29 per share in Q4 2024 [5][12]. - Net Asset Value (NAV) decreased by 2.5% to $186.9 million, or $8.63 per share, compared to $191.8 million, or $8.85 per share at the end of 2024 [5][8]. Portfolio and Investment Performance - Total investments at fair value were $430.6 million as of March 31, 2025, down from $457.0 million at the end of 2024 [7][10]. - The number of portfolio company investments decreased from 91 to 85, with 3.4% of these investments on non-accrual status [10][12]. - The weighted average contractual yield was 10.1%, while the effective yield dropped to 9.2% [10]. Debt and Leverage - The company's debt-to-equity leverage decreased from 1.53 times to 1.45 times due to paydowns of the revolving credit facility [6][17]. - As of March 31, 2025, the company had $141.2 million in debt outstanding on its revolving credit facility and $130.0 million on its 2026 Notes [17]. Income and Expenses - Total investment income for Q1 2025 was $11.6 million, down from $14.0 million in Q4 2024, primarily due to lower effective yields and a decrease in average invested assets [13][14]. - Total expenses decreased to $7.6 million from $8.0 million in the previous quarter, attributed to a lower interest rate environment [14][30]. Net Gains and Losses - The net loss for Q1 2025 was $(3.6) million, an improvement from $(7.7) million in Q4 2024, driven by unrealized losses from specific portfolio companies [15][16]. - The net increase in net assets resulting from operations was $0.5 million, or $0.03 per share, compared to a decrease of $(1.7) million, or $(0.08) per share in the previous quarter [16][28].

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 [3] - The investment objective of the company is to maximize total return to stockholders through current income and capital appreciation [3] - The investment activities are managed by Monroe Capital BDC Advisors, LLC, which is registered under the Investment Advisers Act of 1940 [3] Upcoming Financial Results - The company will report its first quarter financial results for the period ended March 31, 2025, on May 7, 2025, after the close of financial markets [1] - A webcast and conference call to discuss these results will be held on May 8, 2025, at 11:00 a.m. Eastern Time [2] Awards and Recognition - Monroe Capital LLC 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 [5] - The firm has been recognized for its performance in private debt and direct lending across various categories [5] Investment Strategy - Monroe Capital LLC specializes in private credit markets with strategies including direct lending, technology finance, venture debt, and structured credit [4] - The firm aims to provide capital solutions to clients in the U.S. and Canada, focusing on generating high-quality "alpha" returns regardless of economic cycles [4]

Financial Data and Key Metrics Changes - Adjusted net investment income for Q4 2024 was $6.2 million or $0.29 per share, a slight decrease from $6.6 million or $0.31 per share in the previous quarter [5][24] - NAV as of December 31, 2024, was $191.8 million or $8.85 per share, down from $198.9 million or $9.18 per share as of September 30, 2024, representing a 3.6% decline [6][26] - The weighted average effective yield on the portfolio's debt and preferred equity investments decreased to 10.2% from 11% in the prior quarter [25] Business Line Data and Key Metrics Changes - The investment portfolio totaled $457 million at year-end, a decrease of $17.3 million from $474.3 million at the end of the last quarter, consisting of debt and equity investments in 91 portfolio companies, down from 94 [17] - In 2024, the company invested $30.4 million in seven new portfolio companies and $57.6 million in existing portfolio companies, with $2.2 million in one new portfolio company and $14.2 million in existing companies during Q4 [21] Market Data and Key Metrics Changes - Middle market direct lending M&A volumes in Q4 2024 saw an 85% year-over-year increase, marking the strongest quarterly results since Q4 2021 [18] - Delayed draw term loan fundings were 2.4 times greater in 2024 than in 2023, indicating a new annual record [19] Company Strategy and Development Direction - The company plans to focus on growing the portfolio and addressing legacy portfolio issues, with expectations to step on the accelerator in 2025 [45] - The strategic partnership with Wendel Group involves a $1 billion commitment to support new and existing investment strategies, with no changes to the investment process or fee structure [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the favorable market outlook, citing lower interest rates and improved economic conditions as supportive of a sustainable deal environment in 2025 [12] - The company aims to leverage its in-house originations platform and rigorous underwriting standards to capitalize on private credit and middle market lending opportunities [12] Other Important Information - Total borrowings as of December 31, 2024, were $293.9 million, with leverage increasing slightly to 1.53 times debt to equity [23] - The company reported a net loss on the portfolio of $7.7 million for the quarter, primarily due to unrealized mark-to-market losses [34] Q&A Session Summary Question: Strategy to grow earnings and portfolio - Management acknowledged the need to clean up legacy portfolio issues and indicated plans to grow the portfolio in 2025 [45] Question: Resolution of non-accrual investments - Management confirmed active efforts to resolve non-accrual investments, including litigation matters, with expectations for progress in 2025 [48] Question: Consideration of swapping bank credit facilities - Management noted that there is significant interest from financial institutions in providing capital for diversified middle market portfolios, and they are always evaluating options for optimizing capital structure [51][55]

Company Overview - Monroe Capital is a diversified private credit solutions provider with $19.4 billion in AUM as of October 1, 2024[2] - The firm has invested $46 billion in capital since its founding in 2004[3] - Monroe Capital has a large team, including over 250 total employees and 110+ investment professionals across 10 offices[3] Portfolio Highlights - The total investments of Monroe Capital Corporation are $474.3 million[14] - Approximately 80% of the portfolio assets are in first lien loans[13, 14] - The portfolio consists of 94 unique issuers[14] - The average effective yield of the portfolio is 11%[14] - The portfolio mark is 93.9%[14] Financial Performance - The Net Asset Value per Share (NAVPS) is $9.18[14] - The NAV Yield is 10.9%[14] - The Annualized Dividend Yield is 12.3%[14]

Financial Data and Key Metrics Changes - Adjusted net investment income for Q4 2024 was $6,200,000 or $0.29 per share, a slight decrease from $6,600,000 or $0.31 per share in the previous quarter [4][17] - NAV as of 12/31/2024 was $191,800,000 or $8.85 per share, down from $198,900,000 or $9.18 per share as of 09/30/2024, representing a 3.6% decline [4][18] - The weighted average effective yield on the portfolio's debt and preferred equity was 10.2%, down from 11% in the previous quarter [18] Business Line Data and Key Metrics Changes - The investment portfolio totaled $457,000,000 at year-end, a decrease from $474,300,000 at the end of the previous quarter, consisting of debt and equity investments in 91 portfolio companies, down from 94 [12] - In 2024, the company invested $30,400,000 in seven new portfolio companies and $57,600,000 in existing portfolio companies [14] - Total investment income for Q4 2024 was $14,000,000, down from $15,700,000 in Q3 2024, primarily due to a decline in interest rates [20] Market Data and Key Metrics Changes - Middle market direct lending M&A volumes in Q4 2024 were the strongest since Q4 2021, leading to an 85% year-over-year increase in sponsored direct lending volumes for 2024 [12][13] - Private credit middle market deal issuance was 2.9 times greater than syndicated deal lending in 2024, with delayed draw term loan fundings 2.4 times greater than in 2023 [13] Company Strategy and Development Direction - The company plans to focus on growing the portfolio and addressing legacy portfolio issues, indicating a shift towards more offensive strategies in 2025 [30][31] - The strategic partnership with the Wendell Group is expected to close in Q1 2025, with Wendell committing $1,000,000,000 of new seed capital to support investment strategies [9][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the favorable market outlook and the potential for a sustainable deal environment throughout 2025, driven by lower interest rates and increased M&A activity [8][9] - The company is committed to maintaining a predominantly first lien portfolio and leveraging its credit experience and rigorous underwriting standards [26] Other Important Information - The company reported a net loss on the portfolio for Q4 2024 of $7,700,000, primarily due to unrealized mark-to-market losses [23] - Total expenses for Q4 2024 were $8,000,000, down from $9,200,000 in Q3 2024, mainly due to lower interest and debt financing expenses [22] Q&A Session Summary Question: Strategy to grow earnings and portfolio given recent contractions - Management indicated plans to clean up legacy portfolio issues and is hopeful for growth in 2025 [30][31] Question: Resolution of long-standing non-accrual investments - Management is actively working on non-accrual investments and hopes to make progress in 2025 [33][34] Question: Consideration of swapping bank credit facilities for other debt structures - Management acknowledged the consideration but emphasized strong interest from financial institutions in providing capital for diversified middle market portfolios [36][40]