Company Performance - PhenixFIN reported quarterly earnings of $0.48 per share, missing the Zacks Consensus Estimate of $0.82 per share, representing an earnings surprise of -41.46% [1] - The company posted revenues of $6.02 million for the quarter, missing the Zacks Consensus Estimate by 7.68%, compared to revenues of $4.66 million a year ago [2] - Over the last four quarters, PhenixFIN has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Market Comparison - PhenixFIN shares have lost about 3.2% since the beginning of the year, while the S&P 500 has declined by 3.9% [3] - The current consensus EPS estimate for the coming quarter is $0.83 on revenues of $6.46 million, and for the current fiscal year, it is $3.71 on revenues of $25.65 million [7] Industry Outlook - The Financial - SBIC & Commercial Industry, to which PhenixFIN belongs, is currently in the bottom 45% of the Zacks industry rankings, indicating potential challenges ahead [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact PhenixFIN's stock performance [5]

Company Overview - The company operates as a non-diversified closed-end management investment company regulated as a BDC under the 1940 Act, with a focus on generating current income and capital appreciation through investments primarily in privately-held companies valued between $25 million and $250 million[202][204]. - The company invests primarily in senior secured first lien term loans, senior secured second lien term loans, and other debt investments, with expected investment sizes ranging from $10 million to $50 million[206]. - The company is required to invest at least 70% of its total assets in qualifying assets, including securities of private or thinly traded public U.S. companies[205]. Financial Performance - As of March 31, 2025, the company's portfolio had a fair market value of approximately $286.8 million, up from $227.9 million as of September 30, 2024, representing a 25.8% increase[216]. - For the three months ended March 31, 2025, total investment income was $6.0 million, a 28.9% increase from $4.7 million for the same period in 2024[221][222]. - Net investment income for the six months ended March 31, 2025, was $2.6 million, compared to $2.3 million for the same period in 2024, reflecting an increase of 13.7%[221]. - The company recorded a net decrease in net assets resulting from operations of $(0.9) million for the three months ended March 31, 2025, compared to a net increase of $5.4 million for the same period in 2024, resulting in a per share net decrease of $(0.44)[237]. - For the six months ended March 31, 2025, the company reported a net increase in net assets from operations of $1.6 million, down from $9.9 million for the same period in 2024, leading to a per share net increase of $0.78[238]. Investment Income and Expenses - The company generates revenue primarily from interest income on debt investments and may also earn fees for managerial assistance and investment management services[206]. - Total operating expenses for the three months ended March 31, 2025, increased by $1.0 million, or 23.6%, compared to the same period in 2024[224]. - Interest and financing expenses for the three months ended March 31, 2025, increased by $1.0 million, or 64.6%, compared to the same period in 2024[225]. - The weighted average yield on debt and other income-producing investments was 11.8% as of March 31, 2025, down from 12.3% as of September 30, 2024[219]. Market Conditions and Risks - Rising interest rates may adversely affect the company's performance by increasing borrowing costs and potentially leading to defaults among portfolio companies with floating rate securities[199][200]. - The company has faced market volatility due to global events, including the invasion of Ukraine, which has led to declines in stock markets and increased risks in credit markets[195][196]. - The company is subject to financial market risks, including changes in interest rates, which may affect both funding costs and interest income from portfolio investments[277]. - A rise in interest rates may increase the likelihood of defaults on loans by portfolio companies[278]. Portfolio Valuation and Performance - As of March 31, 2025, 90.3% of the investments were rated '2', indicating they are performing within expectations[220]. - The company recognized $1.1 million of realized losses on portfolio investments during the three months ended March 31, 2025[229]. - For the three months ended March 31, 2025, the company recorded a net unrealized depreciation on investments of $(0.5) million, primarily due to unrealized losses on JFL-NGS-WCS Partners, LLC and NVTN LLC, offset by a reversal of unrealized loss on Point.360 for $2.1 million[232]. - For the six months ended March 31, 2025, the company had a net unrealized depreciation on investments of $(0.8) million, with significant unrealized losses on NVTN LLC and Black Angus Steakhouses, LLC, again offset by the reversal of unrealized loss on Point.360 for $2.1 million[233]. Cash and Financing - As of March 31, 2025, the company had $8.7 million in cash and cash equivalents, a significant decrease from $67.6 million as of September 30, 2024[241]. - The company has commitments under loan and financing agreements to fund up to $3.6 million to four portfolio companies as of March 31, 2025, compared to $1.6 million to two portfolio companies as of September 30, 2024[250]. - As of March 31, 2025, the company had outstanding borrowings of $79.6 million under a $50 million revolving credit facility, which was increased to $87.5 million through amendments in 2024[244][247]. - The Credit Facility was amended on April 17, 2025, increasing the principal amount by $12.5 million to $100.0 million, with a potential additional access of up to $50 million[276]. Dividends and Shareholder Returns - The company must distribute at least 90% of its net ordinary income to maintain its RIC tax treatment, which is essential for its operational strategy[205]. - The Board of Directors declared a special dividend of $2,645,925 on May 9, 2024, payable on June 10, 2024, and a subsequent special dividend of $2,888,283 on February 6, 2025, payable on February 19, 2025[258]. - The company intends to distribute substantially all of its taxable income to stockholders to maintain its RIC tax treatment, which requires distributing at least 90% of its investment company taxable income[253]. - The company has a share repurchase program, having repurchased 703,931 shares at a total cost of $28.1 million, representing 25.8% of shares outstanding as of the program's inception[243]. Employee Compensation - The company has adopted a Long-Term Cash Incentive Plan that provides performance-based cash awards to key employees based on the achievement of pre-established financial goals[208]. - For the performance period ending September 30, 2024, key employees received cash awards of $1,403,530 and $599,260 based on the achievement of performance goals[209]. - The target performance award for the 2025 LTIP Plan is set at $1,000,000 for the CEO and $425,000 for the CFO[214]. Related Party Transactions - The Company entered into a related party transaction with NVTN LLC, transferring $11.9 million of equity from Maritime Wireless Holdings LLC[259]. Investment Strategy and Valuation - The Company follows ASC 820 for measuring the fair value of portfolio investments, categorizing them based on the level of judgment associated with the inputs used[264]. - The Company did not engage in hedging activities for the six months ended March 31, 2025, and the year ended September 30, 2024[277]. - The Company has adopted an "opt out" dividend reinvestment plan for common stockholders, allowing dividends to be automatically reinvested in additional shares[257]. - The Pledge and Security Agreement was amended multiple times to adjust security interests and collateral arrangements for the Company's assets[261][262].

Investment Income - Total investment income for Q2 2025 was $6.0 million, with $5.9 million from portfolio interest and dividend income [4]. - Net investment income for the quarter was $1.0 million, with total net expenses of $5.0 million [5]. - The weighted average yield on debt and other income-producing investments was 11.82% [10]. Investment Portfolio - The fair value of the investment portfolio was $286.8 million, consisting of 36 portfolio companies [7]. - The company recorded a net realized loss of $1.1 million and a net unrealized loss of $0.5 million [6]. - The company had two portfolio companies on non-accrual status with a fair market value of $1.4 million [8]. Financial Position - As of March 31, 2025, the company had $8.7 million in cash and cash equivalents and $79.6 million outstanding under the credit facility [9]. - The net asset value (NAV) was $159 million, or $78.72 per share, as of March 31, 2025 [10]. Dividends - A special dividend of $1.43 per share was declared and paid on February 19, 2025 [10]. Credit Facility - The company successfully extended and upsized its credit facility to $100 million, reducing funding costs from SOFR+290 to SOFR+250 [3].

NAV per share of $78.72 taking into account special dividend of $1.43 per share paid February 19, 2025NEW YORK, May 06, 2025 (GLOBE NEWSWIRE) -- PhenixFIN Corporation (NASDAQ: PFX, PFXNZ) (the “Company”), a publicly traded business development company, today announced its financial results for the fiscal second quarter for its year ending September 30, 2025. Highlights: Second quarter total investment income of $6.0 million; net investment income of $1.0 millionNet asset value (NAV) of $159 million, or $78. ...

Market Overview - The three major U.S. indexes, Nasdaq Composite, S&P 500, and Dow Jones Industrial Average, experienced significant declines of 9.89%, 9.58%, and 8.78% respectively last week due to President Trump's reciprocal tariff policies implemented on April 2, 2025, raising fears of a near-term recession [1] - Analysts predict a slowdown in economic growth and a rise in short-term inflation, with the core personal consumption expenditure (PCE) inflation marking a monthly gain of 0.4% in February 2025, the largest since January 2024 [2] Economic Indicators - The Institute of Supply Management (ISM) reported that manufacturing PMI contracted to 49% and services PMI to 50.8% in March, indicating a contraction in manufacturing activities [3] - Job openings fell by 194,000 to 7.568 million in February, marking the lowest level since September 2024, with the employment index declining to 46.2% in March from 53.9% in February [3] Investment Performance - PhenixFIN Corporation (PFX) shares gained 6.2% since being upgraded to Zacks Rank 1 on February 12, while United Fire Group, Inc. (UFCS) returned 5.2% since its upgrade on February 13, both outperforming the S&P 500's significant declines [4][5] - A hypothetical portfolio of Zacks Rank 1 stocks returned -3.48% in January 2025, compared to -0.60% for the S&P 500, but had a strong performance in 2024 with a return of +22.3% [5][6] Zacks Recommendations - EZCORP, Inc. (EZPW) and Palomar Holdings, Inc. (PLMR) saw share increases of 13.4% and 5% respectively since their Zacks Recommendation upgrades to Outperform [8] - The Zacks Focus List portfolio, which includes HCA Healthcare, Inc. (HCA) and Palantir Technologies Inc. (PLTR), returned +0.87% this year through February 2025, outperforming the S&P 500's -14.2% decline over the same period [11][12] Long-term Performance - The Zacks Top 10 portfolio has produced a cumulative return of +1948.35% since 2012, significantly outperforming the S&P 500's +469.98% return in the same timeframe [24]

Core Viewpoint - PhenixFIN (PFX) is positioned as a strong investment opportunity due to its improving earnings outlook and analysts' increasing earnings estimates [1][2]. Earnings Estimates - Analysts are optimistic about PhenixFIN's earnings prospects, leading to higher estimates that are expected to positively impact the stock price [2]. - The consensus earnings estimate for the current quarter is $0.82 per share, reflecting a significant increase of +192.86% year-over-year, with a 28.13% rise in estimates over the last 30 days [4]. - For the full year, the expected earnings are $3.71 per share, indicating a year-over-year change of +59.91%, with a 47.81% increase in consensus estimates over the past month [5]. Zacks Rank - PhenixFIN currently holds a Zacks Rank 1 (Strong Buy), which is based on favorable estimate revisions and has historically shown strong performance, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][6]. - The Zacks Rank system is designed to help investors leverage earnings estimate revisions for better investment decisions [6]. Stock Performance - PhenixFIN shares have increased by 7.8% over the past four weeks, indicating investor confidence in the company's earnings growth potential [7].

Core Viewpoint - PhenixFIN (PFX) has received a Zacks Rank 1 (Strong Buy) upgrade due to an upward trend in earnings estimates, indicating a positive earnings outlook that may lead to increased stock price [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is a significant factor influencing stock price movements [2][4]. - An increase in earnings estimates typically correlates with higher stock prices, as institutional investors adjust their valuations based on these estimates [4]. Recent Performance and Projections - PhenixFIN is projected to earn $3.71 per share for the fiscal year ending September 2025, reflecting a year-over-year increase of 59.9% [8]. - Over the past three months, the Zacks Consensus Estimate for PhenixFIN has risen by 5.1%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - PhenixFIN's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting strong potential for market-beating returns in the near term [10].

分组1 - PhenixFIN (PFX) reported quarterly earnings of $0.80 per share, exceeding the Zacks Consensus Estimate of $0.51 per share, but down from $0.83 per share a year ago, representing an earnings surprise of 56.86% [1] - The company posted revenues of $6.22 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 7.92%, compared to $5.72 million in the same quarter last year [2] - PhenixFIN shares have declined approximately 5.2% year-to-date, while the S&P 500 has gained 3.4% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.64 on revenues of $5.77 million, and for the current fiscal year, it is $2.51 on revenues of $22.97 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is in the top 22% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Estimate revisions for PhenixFIN have been unfavorable, resulting in a Zacks Rank 5 (Strong Sell), suggesting expected underperformance in the near future [6]

Company Overview - The company operates as a non-diversified closed-end management investment company regulated as a BDC under the 1940 Act, with a focus on generating current income and capital appreciation through investments primarily in privately-held companies valued between $25 million and $250 million[220][222]. - The company has a portfolio consisting mainly of senior secured first lien term loans, senior secured second lien term loans, senior secured bonds, preferred equity, and common equity, with a focus on investment sizes between $10 million and $50 million[222][224]. - The company is required to invest at least 70% of its total assets in qualifying assets, including securities of private or thinly traded public U.S. companies[223]. Financial Performance - For the three months ended December 31, 2024, total investment income was $6.2 million, an increase from $5.7 million in the same period of 2023, representing an 8.7% growth[238][240]. - Net investment income for the three months ended December 31, 2024 was $1.6 million, compared to $1.7 million for the same period in 2023, indicating a slight decrease of 4.9%[238]. - The company recognized $1.2 million in net realized gains on investments during the three months ended December 31, 2024, compared to $0.2 million in the same period of 2023[245]. - Operating expenses increased by $0.6 million, or 14.4%, to $4.6 million for the three months ended December 31, 2024, compared to $4.0 million in 2023[241]. - Interest and financing expenses rose by $1.0 million, or 65.2%, to $2.5 million for the three months ended December 31, 2024, primarily due to increased borrowings[242]. - The company recorded a net increase in net assets resulting from operations of $2.5 million for the three months ended December 31, 2024, down from $4.5 million in the same period of 2023[250]. Portfolio Valuation - As of December 31, 2024, the company valued its portfolio investments in accordance with U.S. GAAP, but market volatility may lead to lower fair value assessments in the future[216]. - The fair market value of the company's portfolio increased to approximately $300.1 million as of December 31, 2024, up from $227.9 million as of September 30, 2024[233]. - The distribution of investments rated '2' (performing within expectations) was 90.6% of the fair value of the portfolio as of December 31, 2024[237]. - As of December 31, 2024, approximately $1.5 million, or 0.5% of the fair value of the portfolio, was in non-accrual status[285]. - At September 30, 2024, certain investments in three portfolio companies were on non-accrual status with a combined fair value of approximately $2.4 million, or 1.1% of the fair value of the portfolio[285]. Investment Strategy and Risks - The company generates revenue primarily from interest income on debt investments and dividends from equity investments, with interest typically payable monthly or quarterly[224]. - Rising interest rates may adversely affect the company's performance by increasing borrowing costs and potentially leading to defaults among portfolio companies with floating rate securities[218][219]. - The company faces risks from market volatility due to global events, including geopolitical conflicts and economic conditions, which could impact its portfolio investments[213][214]. - Changes in interest rates may significantly affect the company's investment income and the likelihood of portfolio company defaults[290]. - 56.6% of the income-bearing investment portfolio bore interest based on floating rates as of December 31, 2024[291]. - The total fair value of floating rate debt investments as of December 31, 2024, was $125,175,000[291]. Capital Management - The company has repurchased a total of 703,931 shares, representing 25.8% of shares outstanding, at a total cost of $28.1 million, with $6.9 million remaining under the share repurchase program as of December 31, 2024[255]. - As of December 31, 2024, the company had $84.0 million in outstanding borrowings under a $50 million revolving credit facility, which was later increased to $87.5 million[256][259]. - The company issued $57.5 million in 5.25% Notes due 2028, which began trading on NASDAQ on November 16, 2021[260]. - The company is subject to a coverage ratio requirement of at least 200% for total assets to total senior securities, limiting its borrowing capacity[254]. - The company has a commitment fee of 0.25% on the undrawn portion of the revolving credit facility[257]. Dividends and Taxation - The company must distribute at least 90% of its net ordinary income and realized net short-term capital gains to maintain its RIC tax treatment[223]. - The company intends to distribute substantially all of its taxable income to avoid U.S. federal income tax on investment company taxable income[266]. - The company declared a special dividend of $2,645,925 on May 9, 2024, and another special dividend of $2,895,785 on February 6, 2025[270]. - The company declared a special dividend of $2,895,785 on February 6, 2025, payable on February 18, 2025[289]. - The company is subject to a 4% excise tax on undistributed income if it does not distribute at least 98% of its net ordinary income for any calendar year[286]. Incentive Plans - The company has adopted a Long-Term Cash Incentive Plan, with performance-based cash awards based on the achievement of pre-established financial goals, including net asset value and market price changes[226][227]. - For the 2022 LTIP Plan, Mr. Lorber received $1,403,530 and Ms. McMillan received $599,260 based on performance goals achieved[227]. Valuation Process - The valuation process for investments without readily available market quotations involves a multi-step approach overseen by the board and the Valuation Designee[281]. - The company’s fair value analysis includes unfunded loan commitments and is categorized into three levels based on the transparency of inputs[276]. - The company’s revenue recognition policies include accounting for investment transactions on a trade-date basis and recognizing fees upon transaction closure[284].

[Financial Highlights](index=1&type=section&id=Highlights) PhenixFIN Corporation reported strong fiscal Q1 2025 results, with increased investment income, higher NAV per share, and a special dividend - CEO David Lorber stated the company had a great start to fiscal year 2025, focusing on strategic priorities like growing platforms, pursuing compelling investment opportunities, and increasing NAV per share[3](index=3&type=chunk) Selected First Quarter 2025 Financial Results (Quarter Ended Dec 31, 2024) | Metric | Value ($) | | :--- | :--- | | Total Investment Income | 6.2 million | | Net Investment Income | 1.6 million | | Net Realized Gain | 1.2 million | | Net Unrealized Loss | 0.3 million | | Net Asset Value (NAV) | 162.8 million | | NAV per Share | 80.59 | - On October 1, 2024, the company completed the merger and reorganization of The National Security Group, Inc. (NSG)[8](index=8&type=chunk) - On February 6, 2025, the Board declared a special dividend of $1.43 per share, payable on February 18, 2025, to stockholders of record as of February 17, 2025[8](index=8&type=chunk) [Portfolio and Investment Activities](index=1&type=section&id=Portfolio%20and%20Investment%20Activities%20for%20the%20Quarter%20Ended%20December%2031%2C%202024%3A) The company's investment portfolio as of December 31, 2024, comprised **$300.1 million** across 43 companies, with a **13.3%** weighted average yield Portfolio Summary as of December 31, 2024 | Metric | Value ($) | | :--- | :--- | | Fair Value of Investment Portfolio | 300.1 million | | Number of Portfolio Companies | 43 | | Weighted Average Yield (Debt & Income Investments) | 13.3% | | Investments on Non-Accrual (Fair Value) | 1.5 million | | Investments on Non-Accrual (Companies) | 3 | [Liquidity and Capital Resources](index=1&type=section&id=Liquidity%20and%20Capital%20Resources) PhenixFIN maintained **$7.2 million** in cash and equivalents, with **$59.2 million** in unsecured notes and **$84.0 million** drawn from its credit facility Liquidity and Capital Position as of December 31, 2024 | Item | Amount ($) | | :--- | :--- | | Cash and Cash Equivalents | 7.2 million | | 5.25% Unsecured Notes due 2028 (Principal) | 59.2 million | | Outstanding under Credit Facility | 84.0 million | [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail the company's financial position as of December 31, 2024, with total assets increasing to **$311.9 million** and net assets growing to **$162.8 million** [Consolidated Statements of Assets and Liabilities](index=3&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) As of December 31, 2024, total assets were **$311.9 million**, total liabilities **$149.2 million**, and net assets **$162.8 million**, with NAV per share at **$80.59** Balance Sheet Comparison | Metric | Dec 31, 2024 (Unaudited) ($) | Sep 30, 2024 ($) | | :--- | :--- | :--- | | Total Investments at fair value | 300,094,394 | 227,915,858 | | Cash and cash equivalents | 7,187,110 | 67,571,559 | | Total Assets | 311,928,044 | 302,751,813 | | Total Liabilities | 149,156,114 | 142,444,040 | | Total Net Assets | 162,771,930 | 160,307,773 | | Net Asset Value Per Common Share | 80.59 | 79.37 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended December 31, 2024, the company reported **$6.2 million** total investment income, **$1.6 million** net investment income, and a **$2.5 million** net increase in net assets Statement of Operations Summary (YoY) | Metric | Three Months Ended Dec 31, 2024 ($) | Three Months Ended Dec 31, 2023 ($) | | :--- | :--- | :--- | | Total Investment Income | 6,216,483 | 5,721,678 | | Total Expenses | 4,591,010 | 4,012,776 | | Net Investment Income | 1,625,473 | 1,708,902 | | Net Increase in Net Assets | 2,464,157 | 4,533,839 | | Weighted Average EPS (basic and diluted) | 1.22 | 2.19 |