Monroe Capital(MRCC) - 2025 Q3 - Quarterly Results

Financial Performance - Net Investment Income (NII) for Q3 2025 was $1.8 million, or $0.08 per share, down from $3.3 million, or $0.15 per share in Q2 2025[3][8] - Adjusted Net Investment Income for Q3 2025 was $1.9 million, or $0.09 per share, compared to $3.3 million, or $0.15 per share in the previous quarter[4][8] - Total investment income for Q3 2025 was $8.2 million, down from $9.9 million in Q2 2025, primarily due to declines in dividend income and interest income[9] - Total investment income decreased to $8,206,000 for the quarter ended September 30, 2025, down 16.9% from $9,873,000 in the previous quarter[23] - Net investment income before income taxes was $1,883,000, a decline of 42.2% compared to $3,255,000 in the prior quarter[23] - Net increase in net assets resulting from operations was a loss of $1,137,000, compared to a loss of $1,869,000 in the previous quarter[23] - The company reported a net realized loss of $2,378,000 from non-controlled/non-affiliate company investments for the quarter[23] Asset and Liability Management - Net Asset Value (NAV) decreased to $173.0 million, or $7.99 per share, from $179.6 million, or $8.29 per share in Q2 2025[4][6] - Total assets decreased to $388,952,000 as of September 30, 2025, down from $394,617,000 at the end of the previous quarter[21] - Total liabilities increased slightly to $215,914,000 from $215,025,000 in the previous quarter[21] - Net asset value per share decreased to $7.99 from $8.29 in the previous quarter[21] Investment and Portfolio Management - The number of portfolio company investments decreased to 79 from 80 in the previous quarter[7] - The percentage of portfolio company investments on non-accrual status was 3.5%, slightly down from 3.6% in Q2 2025[7] - Interest income from non-controlled/non-affiliate company investments was $5,463,000, down from $6,757,000 in the previous quarter[23] Expenses and Cost Management - Total expenses for Q3 2025 were $6.4 million, a decrease from $6.6 million in Q2 2025, mainly due to lower professional fees and management fees[10] - Total operating expenses were $6,323,000, a decrease from $6,618,000 in the prior quarter[23] Future Outlook - The company anticipates closing its merger with Horizon Technology Finance Corporation in Q1 2026, which is expected to unlock value for shareholders[2] - The company continues to focus on maximizing total return to stockholders through current income and capital appreciation[25] Debt Management - The company's debt-to-equity leverage increased to 1.23 times as of September 30, 2025, from 1.17 times at the end of Q2 2025[5] - As of September 30, 2025, the company had $3.5 million in cash and cash equivalents and $82.8 million of debt outstanding on its revolving credit facility[13]