Core Viewpoint - SLR Investment Corporation (NASDAQ: SLRC) is identified as a business development company (BDC) that is particularly appealing to dividend investors seeking to maximize their dividend payouts [1] Company Overview - SLR Investment Corporation operates as a yield-oriented stock, making it suitable for investors focused on dividend income [1] Investment Strategy - The investment approach highlighted involves a combination of value and growth strategies, with a recent emphasis on microcap companies [1]

Core Insights - SLR Capital Partners is expanding its Specialty Finance platform by appointing Mac Fowle as President of Asset-Based Lending, responding to rising demand for flexible financing solutions [1][3] Company Overview - SLR Capital Partners, founded in 2006, operates as a diversified middle market private credit solutions platform, primarily investing in U.S. middle market companies through various forms of secured loans [5] - The firm manages public and private business development companies, private credit funds, and separately managed accounts, including SLR Investment Corp. [5] Leadership and Expertise - Mac Fowle brings over 20 years of experience in the Asset-Based Lending industry, previously serving as Global Head of ABL at J.P. Morgan Commercial Banking [2][3] - Fowle's role will focus on expanding SLR's ABL capabilities, complementing the existing leadership team of industry veterans [2][4] Strategic Goals - The appointment of Fowle is seen as a significant milestone in SLR's growth, aimed at enhancing offerings to borrowers and sponsors while ensuring attractive risk-adjusted returns for investors [4] - SLR's existing ABL franchise provides a strong foundation for future expansion in the asset-based lending market [4]

Core Points - SLR Investment Corp. will release its financial results for Q3 2025 on November 4, 2025, after market close [1] - An earnings conference call is scheduled for November 5, 2025, at 10:00 a.m. Eastern Time [1] - The company is a closed-end investment firm that operates as a business development company, focusing on U.S. middle market companies [4] Company Information - SLR Investment Corp. specializes in niche markets and primarily invests in leveraged U.S. middle market companies [4] - The company invests through cash flow senior secured loans, including first lien and second lien debt instruments, as well as asset-based loans [4] - The loans are primarily collateralized by current assets on a first lien basis [4]

Core Insights - The article promotes a portfolio strategy that generates income without the need for selling assets, aiming to simplify retirement investing [1] - It emphasizes the importance of community and education in investment decisions, suggesting that investors should not navigate the market alone [2] Group 1: Investment Strategy - The Income Method is highlighted as a way to achieve strong returns, making retirement investing less stressful and more straightforward [1] - Features of the service include a model portfolio with buy/sell alerts, preferred and baby bond portfolios for conservative investors, and regular market updates [2] Group 2: Community and Support - The service philosophy focuses on building a community and providing educational resources to investors [2] - Active chat access to service leaders is mentioned as a feature that enhances investor engagement and support [2]

Core Viewpoint - SLR Investment (NASDAQ: SLRC) demonstrated slight outperformance in Q2 2025, with a stable dividend expected to remain unchanged in the near future, indicating consistent performance compared to peers [1][7]. NAV Performance - SLRC reported a fractional quarterly NAV increase, contrary to expectations of a minor decrease, with a combined net realized gain and unrealized appreciation of $2.6 million during Q2 2025 [1][9]. - The company maintained a consistent number of portfolio companies, with no notable surprises in FMV fluctuations for the seventh consecutive quarter [1][14]. NII Analysis - The company experienced a very minor decrease in NII, aligning with expectations, and reported a weighted average annualized yield of 12.24% for Q2 2025, a slight increase from Q1 2025 [2][4]. - SLRC's investment portfolio size increased by $180 million during Q2 2025, benefiting NII results, primarily due to a notable rise in loan originations [3][5]. Dividend Information - SLRC declared an unchanged dividend of $0.41 per share for Q3 2025, with expectations for stability in dividends through at least Q4 2025 [16][19]. Credit Risk Management - As of June 30, 2025, SLRC had only one portfolio company on non-accrual status, accounting for 0.5% of the investment portfolio based on amortized cost, indicating effective credit risk management [15][14]. Valuation Metrics - SLRC is currently deemed slightly undervalued with a BUY recommendation, reflecting a stable outlook compared to previous years [19]. - The projected NAV per share was adjusted up by $0.15, with a current price of $16.11 and a dividend yield of 10.18% [10][13].

Core Viewpoint - SLR Investment (NASDAQ: SLRC) demonstrated slight outperformance in Q2 2025, with a stable dividend expected to remain unchanged in the near future, indicating consistent performance compared to peers [1][7]. NAV Performance - SLRC reported a fractional quarterly NAV increase, contrary to expectations of a minor decrease, with a combined net realized gain and unrealized appreciation of $2.6 million during Q2 2025 [1][9]. - The company maintained a stable number of portfolio companies, with no notable surprises in FMV fluctuations for the 115 companies as of June 30, 2025 [1][14]. NII Analysis - The company experienced a very minor decrease in NII, aligning with expectations, and reported a weighted average annualized yield of 12.24% for Q2 2025, a slight increase from Q1 2025 [2][4]. - SLRC's investment portfolio size increased by $180 million during Q2 2025, benefiting NII results, primarily due to increased loan originations [3][5]. Dividend Information - SLRC declared an unchanged dividend of $0.41 per share for Q3 2025, with expectations for stability in dividends through at least Q4 2025 [16][19]. Credit Risk Management - As of June 30, 2025, SLRC had only one portfolio company on non-accrual status, accounting for 0.5% of the investment portfolio based on amortized cost, indicating effective credit risk management [15][14]. Valuation Metrics - SLRC's current price is $16.11, with a projected NAV of $18.15, resulting in a price to NAV ratio of 0.89, suggesting the company is slightly undervalued [13][19]. - The dividend yield stands at 10.18%, with a payout ratio of 100%, reflecting a stable income generation strategy [13].

Core Viewpoint - The article discusses upcoming ex-dividend dates and dividend payments for Slr Investment Corp, Hanover Insurance Group Inc, and Community Financial System Inc, highlighting the expected price adjustments in their stock prices due to these dividends [1]. Dividend Payments - Slr Investment Corp (SLRC) will pay a quarterly dividend of $0.41 on 9/26/25, with an expected yield of approximately 2.46% based on its recent stock price of $16.69 [1]. - Hanover Insurance Group Inc (THG) will pay a quarterly dividend of $0.90 on 9/26/25, with an expected price drop of 0.50% [1]. - Community Financial System Inc (CBU) will pay a quarterly dividend of $0.47 on 10/10/25, with an expected price drop of 0.79% [1]. Historical Dividend Analysis - Historical dividend data is provided for SLRC, THG, and CBU, which can help assess the stability of their dividends over time [2]. - The estimated annualized yields based on recent dividends are 9.83% for Slr Investment Corp, 2.01% for Hanover Insurance Group Inc, and 3.18% for Community Financial System Inc [8]. Stock Performance - In recent trading, Slr Investment Corp shares are down about 0.7%, Hanover Insurance Group Inc shares are up about 0.9%, and Community Financial System Inc shares are down about 1.8% [9].

Financial Data and Key Metrics Changes - SLR Investment Corporation reported net investment income of $0.40 per share and net income of $0.44 per share for Q2 2025, with NAV per share increasing slightly to $18.19 from $18.16 in Q1 2025 [5][12] - The annualized net investment income returned 10% equity in the quarter, although net investment income per share was $0.01 below the base dividend of $0.41 per share [6] - Gross investment income totaled $53.9 million, up from $53.2 million in the previous quarter, while net expenses increased to $32.3 million from $31.1 million [16] Business Line Data and Key Metrics Changes - The asset-based lending (ABL) portfolio grew to over $1.3 billion, representing approximately 42% of the comprehensive portfolio, with a record $373 million in new ABL originations during the quarter [20][21] - The equipment finance portfolio totaled just over $1 billion, accounting for nearly 33% of the comprehensive portfolio, with a stable credit profile and a weighted average asset level yield of 11.6% [25] - The life sciences portfolio amounted to approximately $215 million, contributing 12% of gross investment income for the quarter, with 75% of the portfolio invested in companies with over twelve months of cash runway [26][27] Market Data and Key Metrics Changes - Approximately 96% of Q2 originations were in specialty finance, reflecting favorable market conditions that provide greater risk-adjusted returns [9] - The company has over $650 million available capital to deploy, positioning it to take advantage of stable or softening economic conditions [11] Company Strategy and Development Direction - The company continues to shift its portfolio towards specialty finance strategies due to their attractive risk-adjusted returns and downside protection [34] - SLR has expanded its origination funnel and broadened sourcing relationships, contributing to increased deal flow and recognition in the market [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the diversified and predominantly asset-backed portfolio's ability to deliver attractive results across economic cycles, despite looming economic uncertainties [34] - The company remains opportunistic and prudent in capital deployment, with a focus on maintaining a diversified investment portfolio [35] Other Important Information - The company declared a Q3 2025 quarterly base distribution of $0.41 per share, payable on September 26, 2025 [17] - SLR's investment grade rating by Fitch, Moody's, and DBRS supports its strong credit quality metrics [13] Q&A Session Summary Question: Impact of new originations on Q2 results - New originations had limited impact on Q2 results due to timing, with average yield on new investments at 11.8% compared to exits at just over 10% [40] Question: Pipeline entering Q3 - The pipeline is geared towards new opportunities, expected to align with traditional activity levels despite seasonal slowdowns [41] Question: Competition in ABL market - No significant new entrants are observed in the ABL market due to the complexity and infrastructure required [42][43] Question: Concerns in sectors or economy - No significant concerns noted, with focus on non-cyclical sectors providing protection against economic headwinds [45] Question: SSLP income and future distributions - The SSLP income is expected to normalize as the portfolio rebuilds, with distributions anticipated to grow accordingly [60][61] Question: Equipment finance portfolio valuation - The decline in fair value is attributed to a strategic pullback on risk, with plans to rebuild the portfolio in the coming quarters [67]

Company Performance - SLR Investment (SLRC) reported quarterly earnings of $0.4 per share, missing the Zacks Consensus Estimate of $0.41 per share, and down from $0.45 per share a year ago, representing an earnings surprise of -2.44% [1] - The company posted revenues of $53.91 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.79%, but down from $58.98 million year-over-year [2] - Over the last four quarters, SLR Investment has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - SLR Investment shares have lost about 2.4% since the beginning of the year, while the S&P 500 has gained 7.6% [3] - The current status of estimate revisions translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.41 on revenues of $53.8 million, and for the current fiscal year, it is $1.64 on revenues of $214.49 million [7] - The estimate revisions trend for SLR Investment was mixed ahead of the earnings release, and future changes in estimates will be monitored closely [6][7] Industry Context - The Financial - SBIC & Commercial Industry, to which SLR Investment belongs, is currently in the bottom 42% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can materially impact stock performance [5][8]

[Q2 2025 Financial Results Overview](index=1&type=section&id=Q2%202025%20Financial%20Results%20Overview) SLR Investment Corp. reported Q2 2025 NII of $0.40 per share, net assets up $0.44 per share, NAV at $18.19, and a $0.41 quarterly distribution [Financial Highlights & Key Announcements](index=1&type=section&id=Financial%20Highlights%20%26%20Key%20Announcements) SLR Investment Corp. reported Q2 2025 NII of $0.40 per share, a net increase in net assets of $0.44 per share, and a quarterly distribution of $0.41 per share Financial Metrics | Metric | Value | | :--- | :--- | | Net Investment Income (NII) | $21.6 million | | NII per Share | $0.40 | | Net Asset Value (NAV) per Share | $18.19 | | Quarterly Distribution per Share | $0.41 | | Net Increase in Net Assets from Operations | $24.2 million | | Net Increase in Net Assets per Share | $0.44 | Portfolio and Leverage Metrics (as of June 30, 2025) | Metric (as of June 30, 2025) | Value | | :--- | :--- | | Investment Portfolio Fair Value | $2.1 billion | | Comprehensive Investment Portfolio Fair Value | $3.2 billion | | Non-accruals (at fair value) | 0.3% | | Net Debt-to-Equity | 1.17x | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted a successful strategic shift to specialty finance, comprising over 80% of the portfolio, with solid credit quality and low non-accruals - The company is strategically shifting its portfolio mix to predominantly specialty finance investments, which now account for over **80% of the portfolio's fair value**[4](index=4&type=chunk) - Credit quality is reported as solid, attributed to a focus on first lien senior secured specialty finance and non-cyclical sponsor finance, with **low non-accrual rates**[4](index=4&type=chunk) [Investment Portfolio Analysis](index=2&type=section&id=Investment%20Portfolio%20Analysis) The $3.2 billion Comprehensive Investment Portfolio is diversified across 940 issuers, 98.3% senior secured, with Asset-Based Loans as the largest segment [Comprehensive Investment Portfolio Activity](index=2&type=section&id=Comprehensive%20Investment%20Portfolio%20Activity) Q2 2025 originations of $567.1 million and repayments of $387.0 million led to $180.1 million net portfolio growth, driven by ABL Q2 2025 Investment Activity | Asset Class | Originations ($mm) | Repayments ($mm) | Net Activity ($mm) | | :--- | :--- | :--- | :--- | | Sponsor Finance | $23.9 | $68.6 | ($44.7) | | Asset-based Lending | $373.3 | $147.7 | $225.6 | | Equipment Finance | $141.2 | $169.8 | ($28.6) | | Life Science Finance | $28.7 | $0.9 | $27.8 | | **Total** | **$567.1** | **$387.0** | **$180.1** | [Comprehensive Investment Portfolio Composition](index=2&type=section&id=Comprehensive%20Investment%20Portfolio%20Composition) As of June 30, 2025, the $3.2 billion Comprehensive Investment Portfolio was diversified across 940 issuers, 98.3% senior secured, and 41.6% Asset-Based Loans - The portfolio is diversified across approximately **940 unique issuers** in over **110 industries**, with an average exposure of **$3.5 million (0.1%) per issuer**[9](index=9&type=chunk) Portfolio Composition (at fair value) | Composition (at fair value) | Amount ($mm) | % of Portfolio | Weighted Avg. Asset Yield | | :--- | :--- | :--- | :--- | | Cash Flow Loans (Sponsor Finance) | $546.6 | 16.9% | 10.3% | | Asset-Based Loans | $1,349.0 | 41.6% | 13.4% | | Equipment Financings | $1,074.1 | 33.2% | 11.6% | | Life Science Loans | $214.9 | 6.6% | 13.1% | | **Total Senior Secured Investments** | **$3,184.6** | **98.3%** | **12.2%** | | Equity and Equity-like Securities | $54.8 | 1.7% | N/A | | **Total Comprehensive Portfolio** | **$3,239.4** | **100.0%** | N/A | - The portfolio is heavily weighted towards senior secured debt, with **95.9% in first lien loans** and **2.4% in second lien loans** (2.2% ABL, 0.2% Cash Flow)[9](index=9&type=chunk)[10](index=10&type=chunk) [SLR Investment Corp. Portfolio Asset Quality](index=3&type=section&id=SLR%20Investment%20Corp.%20Portfolio%20Asset%20Quality) SLRC's on-balance sheet portfolio maintains high asset quality, with 99.7% performing at fair value and 97.8% rated in the top two risk categories - As of June 30, 2025, **99.7% of the portfolio was performing** on a fair value basis, with only **one investment on non-accrual**[14](index=14&type=chunk) Internal Investment Risk Ratings | Internal Investment Rating | Investments at Fair Value ($mm) | % of Total Portfolio | | :--- | :--- | :--- | | 1 (Least Risk) | $680.7 | 31.9% | | 2 | $1,407.3 | 65.9% | | 3 | $41.1 | 1.9% | | 4 (Most Risk) | $5.8 | 0.3% | [Investment Income Contribution by Asset Class](index=3&type=section&id=Investment%20Income%20Contribution%20by%20Asset%20Class) For Q2 2025, Asset-based Lending was the largest contributor to total investment income, generating $23.1 million (42.9%), followed by Sponsor Finance Q2 2025 Investment Income by Asset Class | For the Quarter Ended 6/30/2025 | Sponsor Finance | Asset-based Lending | Equipment Finance | Life Science Finance | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Investment Income ($mm) | $14.7 | $23.1 | $9.6 | $6.5 | $53.9 | | % Contribution | 27.3% | 42.9% | 17.8% | 12.0% | 100.0% | [SLR Senior Lending Program LLC (SSLP)](index=3&type=section&id=SLR%20Senior%20Lending%20Program%20LLC%20(SSLP)) The SSLP joint venture had a $184.1 million funded portfolio across 29 borrowers, with $32.3 million in investments and $13.9 million in repayments - The SSLP's portfolio consisted of **$184.1 million in floating rate senior secured loans** to **29 borrowers**, with an average investment size of **$6.3 million**[17](index=17&type=chunk) [Financial Performance (Results of Operations)](index=3&type=section&id=Financial%20Performance%20(Results%20of%20Operations)) Q2 2025 saw decreased gross and net investment income compared to Q2 2024, but a net unrealized gain resulted in a higher net increase in net assets [Year-over-Year Comparison](index=4&type=section&id=Year-over-Year%20Comparison) Q2 2025 gross investment income decreased to $53.9 million and net investment income to $21.6 million compared to Q2 2024, with net assets increasing to $24.2 million Q2 Financial Performance Comparison | Metric ($ in millions) | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Investment Income | $53.9 | $59.0 | ($5.1) | | Net Expenses | $32.3 | $34.7 | ($2.4) | | Net Investment Income | $21.6 | $24.3 | ($2.7) | | Net Realized/Unrealized Gain (Loss) | $2.6 | ($1.1) | $3.7 | | Net Increase in Net Assets | $24.2 | $23.2 | $1.0 | Q2 Per Share Data Comparison | Per Share Data | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Investment Income per Share | $0.40 | $0.45 | | Earnings per Share | $0.44 | $0.43 | [Capital Structure and Liquidity](index=4&type=section&id=Capital%20Structure%20and%20Liquidity) As of June 30, 2025, SLRC's net debt-to-equity ratio was 1.17x, within target, with $359 million in unsecured notes and no near-term refinancing obligations [Debt and Leverage](index=4&type=section&id=Debt%20and%20Leverage) SLRC's net debt-to-equity ratio was 1.17x as of June 30, 2025, within target, with $359 million in unsecured notes and no near-term refinancing needs - The company's net debt-to-equity ratio was **1.17x** as of June 30, 2025, up from 1.04x at March 31, 2025, but within the target range of **0.9x to 1.25x**[28](index=28&type=chunk) - At quarter-end, the company had drawn **$682.3 million** on its **$970 million revolving credit facilities** and had **$359 million of unsecured notes outstanding**[25](index=25&type=chunk)[26](index=26&type=chunk) - The company has **no near-term refinancing needs**, with the next unsecured notes maturity scheduled for **December 2026**[27](index=27&type=chunk) [Available Capital and Commitments](index=4&type=section&id=Available%20Capital%20and%20Commitments) As of June 30, 2025, SLRC and its specialty finance portfolio companies had over $650 million in available capital and $332.6 million in non-discretionary unfunded commitments - Total available capital, including borrowing capacity at SSLP and specialty finance portfolio companies, was **over $650 million**[29](index=29&type=chunk) - The company had unfunded commitments of approximately **$332.6 million**, excluding discretionary commitments to its portfolio companies[30](index=30&type=chunk) [Subsequent Events and Shareholder Information](index=5&type=section&id=Subsequent%20Events%20and%20Shareholder%20Information) Following quarter-end, SLRC closed a $50.0 million private offering of unsecured notes due 2028 and declared a quarterly distribution of $0.41 per share [Subsequent Events](index=5&type=section&id=Subsequent%20Events) After quarter-end, SLRC issued $50.0 million in unsecured notes due 2028 at 5.96% and declared a quarterly distribution of $0.41 per share - On July 30, 2025, the company issued **$50.0 million of unsecured notes due 2028** with a fixed interest rate of **5.96%**[31](index=31&type=chunk) - On August 5, 2025, the Board declared a quarterly distribution of **$0.41 per share**, payable on September 26, 2025[32](index=32&type=chunk) [Conference Call Information](index=5&type=section&id=Conference%20Call%20Information) SLR Investment Corp. will host an earnings conference call and webcast on Wednesday, August 6, 2025, at 10:00 a.m. ET to discuss Q2 2025 financial results - An earnings conference call is scheduled for **10:00 a.m. ET on Wednesday, August 6, 2025**[33](index=33&type=chunk) - The call will be accessible via telephone and a live webcast on the company's investor relations website[33](index=33&type=chunk)[34](index=34&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) SLR Investment Corp.'s consolidated financial statements provide a detailed overview of its assets, liabilities, and operational performance for Q2 2025 [Consolidated Statements of Assets and Liabilities](index=5&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) As of June 30, 2025, SLR Investment Corp. reported total assets of $2.54 billion, liabilities of $1.54 billion, net assets of $992.3 million, and NAV of $18.19 per share Balance Sheet Summary | Balance Sheet ($ in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Investments at Fair Value | $2,134,938 | $2,005,634 | | Total Assets | $2,537,272 | $2,449,417 | | Total Liabilities | $1,544,923 | $1,456,491 | | **Total Net Assets** | **$992,349** | **$992,926** | | **Net Asset Value Per Share** | **$18.19** | **$18.20** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, the company generated $53.9 million in total investment income, resulting in $21.6 million net investment income and a $24.2 million net increase in net assets Income Statement Summary (Three months ended June 30, 2025) | Income Statement (Three months ended June 30, 2025) | Amount ($ in thousands) | | :--- | :--- | | Total investment income | $53,913 | | Net expenses | $32,304 | | **Net investment income** | **$21,609** | | Net realized and unrealized gain | $2,623 | | **Net increase in net assets from operations** | **$24,232** | | **Earnings per share** | **$0.44** |