Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The company advocates for a balanced approach to investing, suggesting that a solid base of dividend growth stocks can be effectively supplemented with other asset types to maximize income potential [1]. - The strategy aims to achieve a total return that aligns with the performance of the S&P index, indicating a focus on both growth and income [1].

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]