Investment Income - Total investment income for Q3 2025 was $31.7 million, down from $37.3 million in Q3 2024, representing a decrease of approximately 15.1%[4] - Net investment income for Q3 2025 was $13.6 million, or $0.43 per share, compared to $15.7 million, or $0.48 per share in the same period last year, reflecting a decline of 13.4% in income per share[4] - Net investment income for the three months ended September 30, 2025, was $13,641,070, compared to $15,728,731 for the same period in 2024, a decrease of approximately 13.3%[25] Asset and Liability Overview - As of September 30, 2025, total assets were $1.3 billion, with total net assets of $490.4 million[4] - Total assets as of September 30, 2025, were $1,281,521,793, a decrease from $1,431,042,759 as of December 31, 2024, representing a decline of approximately 10.5%[21] - Total liabilities decreased to $791,076,580 from $893,197,790, reflecting a reduction of about 11.4%[21] - The debt-to-equity ratio as of September 30, 2025, was 1.53x, slightly up from 1.51x as of June 30, 2025[4] Investment Performance - Total net realized and unrealized losses for Q3 2025 were $10.3 million, compared to losses of $8.2 million in Q3 2024, marking an increase in losses of approximately 25.6%[4] - The company reported a net increase in net assets resulting from operations of $3,353,424 for the three months ended September 30, 2025, down from $7,555,185 in 2024, a decline of about 55.7%[25] - Gross investments for the three months ended September 30, 2025, totaled $138,665,631, significantly higher than $66,239,961 in the same period of 2024, an increase of approximately 109.4%[28] - Total new investments were negative at $(17,361,796) for the three months ended September 30, 2025, compared to $(16,582,259) in 2024, indicating a continued trend of divestment[28] Dividend Information - The company declared a fourth quarter regular base dividend of $0.36 per share, payable on January 14, 2026, to shareholders of record as of December 29, 2025[9] Portfolio Composition - The portfolio consisted of 86.10% first lien senior secured debt investments, with a total fair value of investments at approximately $1.2 billion[6] - The weighted average total yield to maturity of debt and income-producing securities at fair value was 10.07% as of September 30, 2025[7] - The principal amount of new investments funded in Q3 2025 was $138.7 million, with $156.0 million in aggregate principal amount in sales and repayments[7] Commitment and Interest Rates - The company had an aggregate of $16.4 million in unfunded commitments to provide debt financing to its portfolio companies as of September 30, 2025, down from $21.6 million as of December 31, 2024[23] - The weighted average interest rate of new investment commitments was 8.48% for the three months ended September 30, 2025, down from 9.07% in 2024[28] - The average new investment commitment amount increased to $4,760,375 for the three months ended September 30, 2025, compared to $2,717,288 in 2024, an increase of approximately 75.5%[28] Net Asset Value - Net asset value (NAV) per share decreased to $15.39 as of September 30, 2025, from $15.68 as of June 30, 2025, indicating a decline of 1.85%[4] - The net asset value per common share decreased to $15.39 as of September 30, 2025, from $16.50 as of December 31, 2024, a decline of approximately 6.7%[21]

Core Insights - Palmer Square Capital BDC reported a net investment income of $13.6 million or $0.43 per share for Q3 2025, exceeding the base dividend of $0.36 per share and total dividend of $0.42 per share, which includes a supplemental distribution of $0.06 [5][26] - The company deployed $138.7 million in capital during the third quarter and generated total investment income of $31.7 million, down 15.1% from the previous year [26][18] - The NAV per share as of September 30, 2025, was $15.39, a decrease from $15.68 at the end of 2025 [27] Financial Performance - Total investment income for Q3 2025 was $31.7 million, down from $37.3 million in the same period last year [26] - Total net expenses decreased to $18 million from $21.6 million year-over-year [26] - The company experienced total net realized and unrealized losses of $10.3 million, compared to $8.2 million in the prior year [26] Investment Strategy - The company focuses on a distribution strategy that maximizes cash returns to investors, paying out nearly all excess earnings as supplemental dividends [5] - The investment portfolio had a fair value of approximately $1.26 billion across 42 industries, with a weighted average total yield to maturity of 10.07% [18][19] - The portfolio is 95% senior secured, with an average hold size of approximately $5 million, contributing to a strong credit profile [20] Market Outlook - The company noted early signs of improvement in deal activity, with a healthier mix of opportunities in both syndicated and private credit markets [11][12] - The recent $55 billion take-private of Electronic Arts and the $18 billion take-private of Hologic indicate a strong market appetite for high-quality transactions [12] - The company remains cautiously optimistic about the environment, anticipating continued refinancing activity and potential M&A growth [15][16] Shareholder Alignment - The Board approved an additional $5 million for open market share repurchases, complementing the existing stock repurchase plan [25] - The management fee structure is based on net asset value rather than gross assets, aligning the interests of the management team with those of shareholders [24] - The company emphasizes transparency by disclosing NAV on a monthly basis, providing shareholders with regular insights into performance [6]

Company Performance - Palmer Square Capital BDC Inc. reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of $0.41 per share, but down from $0.48 per share a year ago, representing an earnings surprise of +4.88% [1] - The company posted revenues of $31.69 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 5.63%, but down from $37.31 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Palmer Square Capital BDC Inc. shares have declined approximately 20.1% since the beginning of the year, contrasting with the S&P 500's gain of 15.1% [3] - The current Zacks Rank for the stock is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $30.1 million, and for the current fiscal year, it is $1.64 on revenues of $122.99 million [7] - The estimate revisions trend for Palmer Square Capital BDC Inc. was mixed ahead of the earnings release, and future estimates may change following the recent earnings report [6] Industry Context - The Financial - SBIC & Commercial Industry, to which Palmer Square Capital BDC Inc. belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Investment Portfolio - As of September 30, 2025, the company had 262 debt and equity investments in 209 portfolio companies with an aggregate fair value of approximately $1.2 billion[204] - As of December 31, 2024, the company had 262 debt and equity investments in 207 portfolio companies with an aggregate fair value of approximately $1.3 billion[204] - The investment portfolio primarily consisted of floating rate loans in a falling rate environment, contributing to lower total investment income[214] - The company’s investment portfolio at fair value decreased from $1.3 billion as of December 31, 2024 to $1.2 billion as of September 30, 2025[214] - For the nine months ended September 30, 2025, the company experienced a net unrealized depreciation of $42.9 million related to existing portfolio investments[221] Financial Performance - For the three months ended September 30, 2025, gross investments amounted to $138.67 million, while sold investments totaled $156.03 million, resulting in a total new investment of $(17.36) million[206] - Total investment income for the three months ended September 30, 2025 was $31.69 million, down from $37.31 million in the same period of 2024, reflecting a decrease in interest income[213] - Net investment income for the nine months ended September 30, 2025 was $40.40 million, compared to $47.80 million for the same period in 2024[213] - Interest expense for the nine months ended September 30, 2025 was $38.30 million, down from $43.85 million in the same period of 2024[215] - Net unrealized losses on investments for the three months ended September 30, 2025 were $(9.04) million, compared to $(1.05) million for the same period in 2024[220] Debt and Financing - The principal amount of first-lien senior secured debt investments funded for the three months ended September 30, 2025, was $121.39 million[206] - As of September 30, 2025, total investments amounted to $1.33 billion, a decrease from $1.45 billion as of December 31, 2024[209] - The company has total contractual obligations of $752.35 million due by September 30, 2025, including $294.64 million from the BoA Credit Facility and $155.42 million from the WF Credit Facility[267] - As of September 30, 2025, the principal outstanding under the BoA Credit Facility was $297.1 million[239] - The WF Credit Facility was amended to increase the borrowing amount from $150 million to $175 million and extend the maturity date to December 18, 2028[241] Investment Commitments - The average new investment commitment amount for the three months ended September 30, 2025, was $4.76 million, an increase from $2.72 million in the same period of 2024[207] - The percentage of new debt investment commitments at floating rates was 97.75% for the three months ended September 30, 2025[207] - The weighted average interest rate of new investment commitments for the three months ended September 30, 2025, was 8.48%[207] - As of September 30, 2025, the company had 24 unfunded commitments totaling $16.4 million, down from 26 commitments totaling $21.6 million as of December 31, 2024[268] Dividends and Tax Treatment - The company intends to distribute quarterly dividends to stockholders, contingent on available income[250] - To maintain RIC tax treatment, the company must distribute at least 90% of its net ordinary income and net short-term capital gains[251] - The company has adopted a dividend reinvestment plan, allowing stockholders to reinvest dividends unless they opt for cash[254] - The company may retain capital gains for investment, incurring corporate-level tax, and treat them as deemed distributions to stockholders[253] Management and Advisory - The company is externally managed by an Investment Advisor registered with the SEC, which oversees day-to-day operations and investment management[199] - The Investment Advisor, which is majority-owned by PSCM, has an indirect pecuniary interest in the company, as several executive officers are involved[265] - The company has entered into an Advisory Agreement with an annual base management fee of 1.75% of the average value of total net assets, with an incentive fee based on performance[266] Risk Factors - The company is subject to interest rate sensitivity, with potential impacts on net investment income due to changes in interest rates, which could materially affect earnings[270] - A hypothetical increase of 200 basis points in interest rates could result in a net increase of $10.30 million in net investment income, while a decrease of 200 basis points could lead to a decrease of $10.38 million[272] - The company’s investments denominated in foreign currencies are subject to risks associated with currency exchange rate fluctuations[273] - The company may hedge against interest rate and currency exchange rate fluctuations using standard hedging instruments, subject to regulatory requirements[274] Liquidity and Cash Position - The company generated net cash provided by operating activities of $104.9 million during the nine months ended September 30, 2025, primarily from proceeds of $433.7 million from the sale of investments[223] - As of September 30, 2025, the company had cash and cash equivalents of $4.2 million and $227.9 million in undrawn capacity under the BoA Credit Facility[225] - The company maintains sufficient liquidity to fund unfunded commitments, supported by cash, receivables, and borrowing capacity[268] - The company does not have any off-balance sheet financings or liabilities other than contractual commitments and legal contingencies[269] Shareholder Activities - The company completed its IPO on January 22, 2024, issuing 5,450,000 shares at a public offering price of $16.45 per share[198] - During the nine months ended September 30, 2025, the company issued and sold 32,662 shares at an aggregate purchase price of $0.5 million[227] - The company repurchased 756,508 shares of its common stock under the Company Rule 10b5-1 Repurchase Plan and Extended Company Rule 10b5-1 Stock Repurchase Plan[230] - The company purchased 38,119 shares of its common stock under the PSCM Rule 10b5-1 Stock Purchase Plan and Extended PSCM Rule 10b5-1 Stock Purchase Plan[233] Asset Coverage - The asset coverage ratio as of September 30, 2025, was 165%, exceeding the required minimum of 150%[226]

Investment Income and Performance - Total investment income for Q2 2025 was $31.7 million, down from $36.5 million in Q2 2024, representing a decrease of approximately 13.1% year-over-year[4] - Net investment income for Q2 2025 was $13.8 million or $0.43 per share, compared to $15.8 million or $0.48 per share in the same period last year, reflecting a decline of 12.7% in income per share[4] - Total investment income for the six months ended June 30, 2025, was $62,891,199, down from $71,334,439 in the same period of 2024, a decline of about 11.8%[26] - Net investment income for the three months ended June 30, 2025, was $13,841,529, compared to $15,757,851 for the same period in 2024, reflecting a decrease of approximately 12.2%[26] - Basic and diluted net investment income per common share for the three months ended June 30, 2025, was $0.43, down from $0.48 in the same period of 2024[26] Asset and Liability Management - The total fair value of investments was approximately $1.28 billion, down from $1.43 billion year-over-year, a decrease of about 10.6%[4] - Total assets decreased from $1,431,042,759 as of December 31, 2024, to $1,314,814,526 as of June 30, 2025, representing a decline of approximately 8.1%[22] - Total liabilities decreased from $893,197,790 as of December 31, 2024, to $809,601,086 as of June 30, 2025, a reduction of about 9.4%[22] - The debt-to-equity ratio as of June 30, 2025, was 1.51x, slightly up from 1.50x as of March 31, 2025[4] Investment Activity - The principal amount of new investments funded in Q2 2025 was $92.4 million, with $133.3 million in sales and repayments during the same period[6] - For the three months ended June 30, 2025, total new investments amounted to $(40,920,002), compared to $49,274,391 for the same period in 2024, indicating a significant decrease[30] - The principal amount of first-lien senior secured debt investments for the six months ended June 30, 2025, was $182,160,770, down from $464,632,921 in 2024, reflecting a decline in investment activity[30] - The number of new investment commitments for the six months ended June 30, 2025, was 46, down from 59 in the same period of 2024, indicating a slowdown in new investment activity[30] Investment Returns and Distributions - Cash distributions to stockholders totaled $0.42 per share for Q2 2025, with a declared base dividend of $0.36 per share for Q3 2025[4][8] - The portfolio yield was 10.10% for Q2 2025, compared to 9.82% in Q2 2024, showing an increase of 2.9%[3] Losses and Commitments - Total net realized and unrealized losses for Q2 2025 were $6.7 million, an improvement from losses of $10.4 million in Q2 2024[4] - The company had $15.7 million of unfunded commitments to provide debt financing to its portfolio companies as of June 30, 2025[24] - Net realized losses on non-controlled, non-affiliated investments for the three months ended June 30, 2025, were $(5,745,139), compared to $(9,411,924) for the same period in 2024[26] Investment Terms and Conditions - The average new investment commitment amount decreased to $3,145,736 in Q2 2025 from $5,575,295 in Q2 2024, showing a reduction in the size of new commitments[30] - The percentage of new debt investment commitments at floating rates increased to 100.00% in Q2 2025, compared to 97.01% in Q2 2024, indicating a shift towards variable rate loans[30] - The weighted average interest rate of new investment commitments decreased to 8.93% in Q2 2025 from 9.96% in Q2 2024, suggesting a reduction in borrowing costs[30] - The weighted average maturity for new investment commitments was 5.16 years in Q2 2025, down from 6.05 years in Q2 2024, indicating shorter investment horizons[30] - The weighted average spread over the reference rate of new floating rate investment commitments was 4.56% in Q2 2025, slightly down from 4.68% in Q2 2024[30] - The weighted average interest rate on long-term investments sold or paid down was 8.65% in Q2 2025, compared to 10.69% in Q2 2024, reflecting improved terms on sold investments[30] Net Asset Value - Net asset value (NAV) per share decreased to $15.68 as of June 30, 2025, from $15.85 as of March 31, 2025, indicating a decline of 1.1%[4] - The net asset value per common share decreased from $16.50 as of December 31, 2024, to $15.68 as of June 30, 2025, a decline of approximately 5.0%[22] Operational Performance - The company reported a net increase in net assets resulting from operations of $7,169,976 for the three months ended June 30, 2025, compared to $5,312,813 for the same period in 2024, an increase of about 35.0%[26] - Total expenses for the six months ended June 30, 2025, were $36,136,519, compared to $39,308,870 for the same period in 2024, a decrease of approximately 8.3%[26]

Company Performance - Palmer Square Capital BDC Inc. reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of $0.41 per share, but down from $0.48 per share a year ago, representing an earnings surprise of +4.88% [1] - The company posted revenues of $31.68 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.79%, but down from $36.55 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Stock Performance - Palmer Square Capital BDC Inc. shares have declined approximately 7.7% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $30.29 million, and for the current fiscal year, it is $1.62 on revenues of $121.86 million [7] Industry Outlook - The Financial - SBIC & Commercial Industry, to which Palmer Square Capital BDC Inc. belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]

Core Insights - Palmer Square Capital Management celebrates the 10-year anniversary of its CLO indices, which were first introduced on May 29, 2015, providing daily performance benchmarks for the CLO market [1][2] Company Overview - Palmer Square Capital Management was founded in 2009 and manages over $34.2 billion in fixed income and credit investments as of March 31, 2025 [7] - The firm focuses on Opportunistic Credit, Income Strategies, Private Credit, and CLOs, offering various investment products including mutual funds and private partnerships [7] Industry Insights - The CLO market has grown significantly from approximately $400 million a decade ago to over $1 trillion in market value, highlighting the rapid expansion of this asset class [4] - Palmer Square's daily performance indices have contributed to the transparency and growth of the CLO market, allowing investors to benchmark performance effectively [4] Performance Data - The Palmer Square CLO Senior Debt Index (CLOSE) has shown varied performance over the years, with a year-to-date return of 1.57% in 2025 and a peak return of 9.01% in 2023 [3] - The Palmer Square CLO Debt Index (CLODI) has also demonstrated strong performance, achieving a return of 13.22% in 2024 and 17.40% in 2023 [3]

[First Quarter 2025 Financial Results Announcement](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results%20Announcement) [Overview and Key Highlights](index=1&type=section&id=Overview%20and%20Key%20Highlights) Q1 2025 results show decreased investment income and NAV per share, with a declared Q2 base dividend and expected supplemental dividend - Palmer Square Capital BDC Inc. announced its financial results for the first quarter ended March 31, 2025, and declared a second quarter 2025 base dividend of **$0.36 per share**[1](index=1&type=chunk) Key Financial Highlights | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Total Investment Income | $31.2M | $34.8M | -$3.6M | | Net Investment Income | $12.9M | $16.3M | -$3.4M | | Net Investment Income Per Share | $0.40 | $0.52 | -$0.12 | | Net Asset Value Per Share (as of period end) | $15.85 (Mar 31, 2025) | $16.50 (Dec 31, 2024) | -$0.65 (QoQ) | | Total Net Realized & Unrealized | -$21.3M | $6.6M | -$27.9M | | Total Assets (as of period end) | $1.4B | N/A | N/A | | Total Net Assets (as of period end) | $515.8M | N/A | N/A | | Debt-to-Equity (as of period end) | 1.50x | 1.50x (Dec 31, 2024) | Unchanged | | Cash Distributions Paid (Q1 2025) | $0.39/share | N/A | N/A | | Declared Q2 Base Dividend | $0.36/share | N/A | N/A | | PIK Income (% of Total Inv. Income) | 1.63% | N/A | N/A | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Christopher D. Long highlighted the company's flexible investment strategy and shareholder alignment, seeing value in the current NAV discount - CEO Christopher D. Long stated that Palmer Square Capital BDC's investment strategy, rooted in liquid credit opportunities and senior-secured private credit, demonstrated strength and flexibility in Q1 2025, particularly during macro uncertainty[3](index=3&type=chunk) - The company was established with a focus on shareholder alignment, offering a differentiated fee structure and prioritizing transparency in monthly NAV and quarterly portfolio disclosure[3](index=3&type=chunk) - The CEO believes the current discount to NAV provides great value and that the investment team continues to find opportunities that preserve credit quality, deliver attractive yield, and create long-term shareholder value[3](index=3&type=chunk) [Detailed Financial Performance](index=2&type=section&id=Detailed%20Financial%20Performance) [Per Common Share Operating Performance](index=2&type=section&id=Per%20Common%20Share%20Operating%20Performance) Q1 2025 saw declines in Net Investment Income and NAV per share, with negative total return and decreased net assets Per Common Share Operating Metrics | Metric | Q1 2025 | Q4 2024 | Q1 2024 | Change (QoQ) | Change (YoY) | | :------------------------------------ | :-------- | :-------- | :-------- | :----------- | :----------- | | Net Investment Income Per Share | $0.40 | $0.45 | $0.52 | -$0.05 | -$0.12 | | NAV Per Share (End of Period) | $15.85 | $16.50 | $17.16 | -$0.65 | -$1.31 | | Dividends Earned Per Share | $0.39 | $0.48 | $0.49 | -$0.09 | -$0.10 | | Net Realized & Unrealized Gain (Loss) per Share | -$0.66 | N/A | $0.09 | N/A | -$0.75 | | Net Increase (Decrease) in Net Assets from Operations per Share | -$0.26 | N/A | $0.61 | N/A | -$0.87 | | Distributions to Common Stockholders per Share | -$0.39 | N/A | -$0.49 | N/A | $0.10 | | Total Return (%) | (1.05)% | 2.36% | 3.70% | -3.41% | -4.75% | | Shares Outstanding (End of Period) (count) | 32,534,040 | 32,600,193 | 32,552,794 | -66,153 | -18,754 | | Net Assets (End of Period) | $515,807,254 | $537,844,969 | $558,537,164 | -$22,037,715 | -$42,729,910 | - The ratio of operating expenses to average net assets with waiver remained stable at **13.72%** in Q1 2025 compared to **13.66%** in Q1 2024[16](index=16&type=chunk) - The ratio of net investment income to average net assets with waiver decreased to **9.68%** in Q1 2025 from **12.07%** in Q1 2024[16](index=16&type=chunk) [Consolidated Statement of Assets and Liabilities](index=6&type=section&id=Consolidated%20Statement%20of%20Assets%20and%20Liabilities) Total assets and liabilities decreased in Q1 2025, primarily due to reduced non-affiliated investments, leading to lower net assets Consolidated Assets and Liabilities | Asset/Liability | March 31, 2025 | December 31, 2024 | Change (QoQ) | | :------------------------------------------------ | :------------- | :---------------- | :----------- | | Non-controlled, non-affiliated investments (fair value) | $1,334,314,263 | $1,407,130,945 | -$72,816,682 | | Cash and cash equivalents | $2,872,420 | $2,766,409 | $106,011 | | Total Assets | $1,362,929,722 | $1,431,042,759 | -$68,113,037 | | Credit facilities (net) | $472,325,212 | $501,650,602 | -$29,325,390 | | Notes (net) | $302,126,552 | $302,505,057 | -$378,505 | | Payable for investments purchased | $54,828,596 | $67,460,523 | -$12,631,927 | | Distributions payable | $12,691,089 | $15,649,925 | -$2,958,836 | | Total Liabilities | $847,122,468 | $893,197,790 | -$46,075,322 | | Total Net Assets | $515,807,254 | $537,844,969 | -$22,037,715 | | Net Asset Value Per Common Share | $15.85 | $16.50 | -$0.65 | - The company had **$20.2 million** in unfunded commitments to portfolio companies as of March 31, 2025, a slight decrease from **$21.6 million** at December 31, 2024[22](index=22&type=chunk) [Consolidated Statement of Operations](index=7&type=section&id=Consolidated%20Statement%20of%20Operations) Q1 2025 total investment income and net investment income declined, with significant net realized and unrealized losses impacting net assets Consolidated Statement of Operations Summary | Income/Expense Item | Q1 2025 | Q1 2024 | Change (YoY) | | :------------------------------------ | :----------- | :----------- | :----------- | | Interest income | $29,819,663 | $33,259,959 | -$3,440,296 | | Dividend income | $574,336 | $1,254,696 | -$680,360 | | Payment-in-kind interest income | $507,850 | $0 | $507,850 | | Total Investment Income | $31,214,279 | $34,784,943 | -$3,570,664 | | Incentive fees | $1,842,706 | $1,924,752 | -$82,046 | | Interest expense | $12,969,757 | $13,178,830 | -$209,073 | | Management fees | $2,333,675 | $2,416,239 | -$82,564 | | Total Expenses | $18,301,128 | $18,517,225 | -$216,097 | | Net Investment Income (Loss) | $12,913,151 | $16,318,229 | -$3,405,078 | | Net realized gains (losses) | -$5,894,493 | -$1,736,331 | -$4,158,162 | | Net change in unrealized gains (losses) | -$15,407,869 | $8,298,242 | -$23,706,111 | | Total realized and unrealized gains (losses) | -$21,302,362 | $6,561,911 | -$27,864,273 | | Net Increase (Decrease) in Net Assets from Operations | -$8,389,211 | $22,880,140 | -$31,269,351 | | Basic and diluted net investment income per common share | $0.40 | $0.52 | -$0.12 | - The company recorded **$507,850** in Payment-in-kind (PIK) interest income in Q1 2025, compared to none in Q1 2024[24](index=24&type=chunk) [Portfolio and Investment Activity](index=2&type=section&id=Portfolio%20and%20Investment%20Activity) [Portfolio Composition and Characteristics](index=2&type=section&id=Portfolio%20Composition%20and%20Characteristics) The Q1 2025 portfolio, valued at $1.3 billion, comprised 260 investments, mostly floating-rate senior secured debt across 209 companies Portfolio Composition and Key Characteristics | Metric | As of March 31, 2025 | As of December 31, 2024 | As of March 31, 2024 | | :------------------------------------ | :------------------- | :-------------------- | :------------------- | | Total Fair Value of Investments | $1,334,314,000 | $1,407,131,000 | $1,393,192,000 | | Number of Industries | 39 | 38 | 39 | | Number of Portfolio Companies | 209 | 207 | 211 | | Portfolio Yield (%) | 10.37% | 10.65% | 10.11% | | Senior Secured Loan % (%) | 96% | 96% | 96% | | Investments on Non-Accrual % (%) | 0.24% | 0.08% | 0.00% | - As of March 31, 2025, the portfolio's fair value composition included **86.2%** first lien senior secured debt, **5.4%** second lien senior secured debt, **4.3%** short-term investments, **3.3%** CLOs mezzanine and equity, **0.3%** corporate bonds, and **0.5%** equity investments[6](index=6&type=chunk) - **98%** of long-term investments were at floating rates, and **99.76%** of the portfolio at fair value was income producing. The weighted average total yield to maturity of debt and income producing securities at fair value was **10.37%**, and at amortized cost was **8.48%**[7](index=7&type=chunk) [Investment Transaction Details](index=8&type=section&id=Investment%20Transaction%20Details) Q1 2025 saw $104.3 million in new investments, offset by $144.4 million in sales/repayments, resulting in a net decrease in total investments Investment Transaction Summary | Investment Activity | Q1 2025 | Q1 2024 | Change (YoY) | | :------------------------------------ | :----------- | :----------- | :----------- | | Gross investments funded | $104,323,107 | $346,482,823 | -$242,159,716 | | Investments sold/repaid | $144,369,364 | $69,556,336 | $74,813,028 | | Total new investments (net) | -$40,046,257 | $276,926,487 | -$316,972,744 | | Number of new investment commitments (count) | 23 | 36 | -13 | | Average new investment commitment amount (USD) | $3,855,336 | $4,052,057 | -$196,721 | | Weighted average maturity for new commitments (years) | 5.59 years | 6.18 years | -0.59 years | | % of new debt investments at floating rates (%) | 100.00% | 100.00% | 0.00% | | Weighted average interest rate of new commitments (%) | 8.52% | 10.19% | -1.67% | | Weighted average spread over reference rate of new floating rate commitments (%) | 4.21% | 4.81% | -0.60% | | Weighted average interest rate on long-term investments sold/paid down (%) | 8.33% | 7.99% | 0.34% | - New investments funded in Q1 2025 primarily consisted of **$97.4 million** in first-lien senior secured debt investments and **$6.9 million** in common stock[29](index=29&type=chunk) - Sales and repayments in Q1 2025 were predominantly from first-lien senior secured debt investments (**$138.0 million**)[29](index=29&type=chunk) [Liquidity and Capital Resources](index=2&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company held $2.9 million in cash and $229.5 million in available liquidity against $20.2 million in undrawn investment commitments Liquidity and Capital Resources Overview | Metric | As of March 31, 2025 | As of December 31, 2024 | | :------------------------------------ | :------------------- | :-------------------- | | Cash and cash equivalents | $2.9 million | $2.8 million | | Total aggregate principal debt outstanding | $774.5 million | N/A | | Available liquidity (cash + undrawn credit) | $229.5 million | N/A | | Undrawn investment commitments | $20.2 million | $21.6 million | [Recent Developments](index=2&type=section&id=Recent%20Developments) The Board declared a Q2 2025 base dividend of $0.36 per share, payable July 14, 2025, with an additional supplemental dividend expected - On May 07, 2025, PSBD's Board of Directors declared a Q2 2025 regular base dividend of **$0.36 per share**, payable on July 14, 2025, to shareholders of record as of June 27, 2025[9](index=9&type=chunk) - The company expects to announce an additional quarterly supplemental dividend distribution for the second quarter of 2025 in June[9](index=9&type=chunk) [Additional Information](index=4&type=section&id=Additional%20Information) [About Palmer Square Capital BDC Inc.](index=4&type=section&id=About%20Palmer%20Capital%20BDC%20Inc.) PSBD is an externally managed BDC aiming to maximize total return through corporate debt loans in syndicated and direct large-cap private credit - PSBD is an externally managed, non-diversified closed-end management investment company regulated as a BDC[12](index=12&type=chunk) - The company's investment objective is to maximize total return, comprising current income and capital appreciation[12](index=12&type=chunk) - PSBD primarily invests in corporate debt loans, including large private U.S. companies in the broadly syndicated loan market and direct large-cap private credit market, and to a lesser extent, other debt securities like CLO debt and equity[12](index=12&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements on future performance and dividends, subject to risks, not guarantees, and not updated unless legally required - The press release includes forward-looking statements about future base and supplemental dividend distributions and the prospects of portfolio companies[13](index=13&type=chunk) - These statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially[13](index=13&type=chunk) - PSBD undertakes no duty to update any forward-looking statement unless required by law[13](index=13&type=chunk) [Earnings Conference Call & Contacts](index=4&type=section&id=Earnings%20Conference%20Call%20%26%20Contacts) An earnings conference call is scheduled for May 07, 2025, at 1:00 pm ET, with online registration and contact details provided - A conference call to review financial performance and conduct a Q&A session will be held on Wednesday, May 07, 2025, at 1:00 pm ET[11](index=11&type=chunk) - Participants can register online via the Palmer Square Investor Relations website, and a replay will be available after the event[11](index=11&type=chunk) - Contact details for investor relations (Matt Bloomfield and Jeremy Goff) and media (Josh Clarkson of Prosek Partners) are provided[14](index=14&type=chunk)

Core Insights - Palmer Square Capital BDC Inc. reported a revenue of $31.21 million for the quarter ended March 2025, reflecting a year-over-year decline of 10.3% and an EPS of $0.40, down from $0.52 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $32.5 million by 3.95%, while the EPS also missed the consensus estimate of $0.44 by 9.09% [1] Financial Performance - Investment income from non-controlled, non-affiliated investments showed varied results: Other income was $0.31 million against an estimate of $0.41 million, Dividend income was $0.57 million compared to an estimate of $0.58 million, and Interest income was $29.82 million versus an estimate of $30.83 million [4] - Over the past month, shares of Palmer Square Capital BDC Inc. returned +4%, while the Zacks S&P 500 composite increased by +10.6% [3]

Financial Performance - Palmer Square Capital BDC Inc. reported quarterly earnings of $0.40 per share, missing the Zacks Consensus Estimate of $0.44 per share, and down from $0.52 per share a year ago, representing an earnings surprise of -9.09% [1] - The company posted revenues of $31.21 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 3.95%, and down from $34.79 million year-over-year [2] - Over the last four quarters, the company has not surpassed consensus EPS estimates and has topped consensus revenue estimates only twice [2] Stock Performance - Shares of Palmer Square Capital BDC Inc. have lost about 16.4% since the beginning of the year, compared to a decline of -4.7% for the S&P 500 [3] - The current consensus EPS estimate for the coming quarter is $0.43 on revenues of $32.01 million, and for the current fiscal year, it is $1.75 on revenues of $128.35 million [7] Industry Outlook - The Financial - SBIC & Commercial Industry, to which Palmer Square Capital BDC Inc. belongs, is currently in the bottom 37% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the company's stock performance may be influenced by these revisions [5]