Fidus Investment (FDUS) - 2025 Q2 - Quarterly Results

Executive Summary Fidus reported strong Q2 2025 results, with adjusted net investment income at $20.0 million and Q3 dividends of $0.57 per share | Metric | Q2 2025 Value | | :-------------------------------- | :------------ | | Total investment income | $40.0 million | | Net investment income | $18.6 million | | Adjusted net investment income | $20.0 million | | Adjusted net investment income per share | $0.57 | | Investments made | $94.5 million | | Proceeds from repayments/realizations | $109.3 million | | Total dividends paid (Q2 2025) | $0.54 per share | | NAV as of June 30, 2025 | $692.3 million | | NAV per share as of June 30, 2025 | $19.57 | | Estimated spillover income | $49.0 million | | Estimated spillover income per share | $1.39 | - Management highlighted the portfolio's continued strong performance and sound credit quality, with ample liquidity to build the portfolio and generate attractive risk-adjusted returns[3] Second Quarter 2025 Operating Results Fidus's Q2 2025 total investment income increased 12.1% to $39.97 million, driving net investment income up 9.9% to $18.6 million | Metric | Q2 2025 ($M) | Q2 2024 ($M) | $ Change | % Change | | :-------------------------------- | :----------- | :----------- | :------- | :------- | | Interest income | 32.211 | 31.507 | 0.704 | 2.2% | | Payment-in-kind interest income | 2.451 | 1.845 | 0.606 | 32.8% | | Dividend income | 0.631 | 0.357 | 0.274 | 76.8% | | Fee income | 3.884 | 1.522 | 2.362 | 155.2% | | Interest on idle funds | 0.793 | 0.433 | 0.360 | 83.1% | | Total investment income | 39.970 | 35.664 | 4.306 | 12.1% | | Net investment income | 18.628 | 16.950 | 1.678 | 9.9% | | Net investment income per share | 0.53 | 0.53 | - | 0.0% | | Adjusted net investment income | 19.959 | 18.380 | 1.579 | 8.6% | | Adjusted net investment income per share | 0.57 | 0.57 | - | 0.0% | | Net increase in net assets from operations | 25.284 | 24.099 | 1.185 | 4.9% | | Net increase in net assets from operations per share | 0.72 | 0.75 | (0.03) | (4.0%) | - The $4.3 million increase in total investment income was primarily driven by a $2.4 million increase in fee income (prepayment and origination fees), a $1.3 million increase in total interest income, and a $0.3 million increase in dividend income[6] - Total expenses increased by $2.6 million (14.0%) to $21.3 million, mainly due to a $1.7 million increase in interest and financing expenses, a $0.4 million net increase in base management fee, and a $0.3 million increase in income incentive fee[7] - Net realized loss on investments, net of income tax, was $(7.6) million for Q2 2025, compared to a gain of $9.2 million in Q2 2024[9] Portfolio and Investment Activities Fidus's $1.1 billion portfolio (92 companies) as of June 30, 2025, featured 71.1% variable rate debt (13.1% yield) and four new investments | Metric | Value as of June 30, 2025 | | :-------------------------------- | :------------------------ | | Fair value of investment portfolio | $1.1 billion | | Number of active portfolio companies | 92 | | Portfolio investments as % of cost basis | 101.8% | | Variable rate debt investments | $718.6 million (71.1% of debt portfolio) | | Weighted average yield on debt investments | 13.1% | | Average active portfolio company investment (amortized cost) | $12.3 million | - New portfolio company investments in Q2 2025 included: * E-PlanSoft Buyer, LLC: $8.0 million first lien debt and $1.5 million preferred equity * Laboratory Testing, LLC: $5.0 million first lien debt, $0.4 million preferred equity, $0.4 million common equity, and additional commitments * Pronto Plumbing & Drain, Inc.: $1.5 million first lien debt, $0.6 million common equity, and additional commitments * True Environmental Inc.: $20.0 million first lien debt, $0.5 million common equity, and additional commitments[14] Liquidity and Capital Resources Fidus maintained strong liquidity with $91.2 million in cash and $140.0 million of unused credit capacity as of June 30, 2025 | Metric | Value as of June 30, 2025 | | :-------------------------------- | :------------------------ | | Cash and cash equivalents | $91.2 million | | Unused capacity under Credit Facility | $140.0 million | | SBA debentures outstanding | $202.0 million | | January 2026 Notes outstanding | $100.0 million | | November 2026 Notes outstanding | $125.0 million | | March 2030 Notes outstanding | $100.0 million | | Weighted average interest rate on total debt | 4.8% | - During Q2 2025, Fidus received $7.5 million from its ATM Program, $20.0 million from SBA debentures, and redeemed $25.0 million of its January 2026 Notes[11] Dividends The Board declared a total dividend of $0.57 per share for Q3 2025, comprising a $0.43 base and $0.14 supplemental dividend | Dividend Type | Amount Per Share (Q3 2025) | | :-------------------- | :------------------------- | | Base Dividend | $0.43 | | Supplemental Dividend | $0.14 | | Total Dividend | $0.57 | - Dividends are payable on September 25, 2025, to stockholders of record as of September 18, 2025[12] - Fidus has a dividend reinvestment plan (DRIP) where stockholders automatically reinvest dividends into additional common stock unless they opt out[15] Subsequent Events After quarter-end, Fidus made a new investment in Sogno Toscano, LLC, realized a gain from PowerGrid Services, and exited Choice Technology Solutions - On July 2, 2025, Fidus invested $8.5 million in first lien debt and $4.3 million in preferred equity in Sogno Toscano, LLC[16] - On July 2, 2025, Fidus received a distribution from PowerGrid Services Acquisition, LLC, resulting in a realized gain of $0.9 million[16] - On July 30, 2025, Fidus exited its first lien debt investment in Choice Technology Solutions, LLC, receiving $10.6 million payment in full, but recognized a $0.5 million loss on its preferred equity investment[17] Company Overview Fidus Investment Corporation is a BDC and RIC providing customized debt and equity financing to lower middle-market U.S. companies - Fidus provides customized debt and equity financing solutions to lower middle-market companies (revenues between $10 million and $150 million) based in the U.S[20] - The company's investment objective is to provide attractive risk-adjusted returns by generating current income from debt investments and capital appreciation from equity-related investments[20] - Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a Business Development Company (BDC) and a Regulated Investment Company (RIC) for tax purposes[21] Conference Call Information Management will host a conference call on August 8, 2025, at 9:00 AM ET to discuss Q2 2025 financial results - A conference call to discuss Q2 2025 financial results will be held on Friday, August 8, 2025, at 9:00 AM ET[18] - Participants can dial (844) 808-7136 (domestic) or (412) 317-0534 (international), or access a live webcast at http://investor.fdus.com/news-events