CION Investment (CION) - 2025 Q3 - Quarterly Results

Financial Performance - For the third quarter ended September 30, 2025, net investment income was $0.74 per share, and earnings per share were $0.69[5] - Total investment income for the quarter was $78.7 million, up from $52.2 million in the previous quarter, driven by higher interest income and transaction fees[7] - Net investment income after taxes for the three months ended September 30, 2025, was $38.57 million, compared to $21.62 million for the same period in 2024, representing an increase of 78.5%[24] - Total investment income for the three months ended September 30, 2025, was $78.71 million, a 31.9% increase from $59.63 million in the prior year[24] - Net realized losses on non-controlled, non-affiliated investments for the three months ended September 30, 2025, were $9.61 million, compared to gains of $3.94 million in the same period last year[24] Asset and Investment Overview - The company had total investments at fair value of $1.74 billion across 91 portfolio companies, with 80% in senior secured first lien investments[5] - Total investments at fair value amounted to $1.84 billion, up from $1.82 billion in the previous quarter[22] - Investments on non-accrual status increased to 1.75% of the total investment portfolio at fair value, up from 1.37% as of June 30, 2025[11] - The net asset value per share increased to $14.86, reflecting a 2.5% increase from $14.50 as of June 30, 2025, primarily due to out-earning distributions by $0.38 per share[5] - The net asset value per share of common stock increased to $14.86 at the end of the period, up from $14.50[22] Debt and Liabilities - The net debt-to-equity ratio improved to 1.28x from 1.39x as of June 30, 2025, with total debt outstanding at $1.09 billion[5] - Total liabilities decreased to $1.11 billion from $1.12 billion in the previous quarter[22] Shareholder Actions - The company repurchased 330,324 shares at an average price of $9.86 per share, totaling $3.3 million during the quarter[5] - Management fees for the three months ended September 30, 2025, were $6.53 million, slightly down from $6.85 million in the prior year[24] - The weighted average shares of common stock outstanding were 52,065,707 for the three months ended September 30, 2025[24] Operational Metrics - Operating expenses for the quarter were $40.1 million, an increase from $35.3 million in the previous quarter, primarily due to higher advisory fees[8] - The weighted average interest coverage ratio was 1.94x, slightly improved from 1.93x in the previous quarter[11] - Total assets as of September 30, 2025, were approximately $1.9 billion, reflecting a slight increase from $1.88 billion as of June 30, 2025[25] Future Outlook - The company will shift to monthly base distributions starting January 2026, with a fourth quarter 2025 distribution declared at $0.36 per share[2] - CION Investment Corporation focuses primarily on senior secured loans to U.S. middle-market companies, aiming to generate current income and capital appreciation[25]