Portman Ridge(PTMN) - 2025 Q3 - Quarterly Results

Financial Performance - Total investment income for Q3 2025 increased by 50.0% to $18.9 million, compared to $12.6 million in Q2 2025[4] - Net investment income for Q3 2025 rose by 94.2% to $8.8 million ($0.71 per share), up from $4.6 million ($0.50 per share) in Q2 2025[4] - For the three months ended September 30, 2025, the total investment income was $18,940,000, an increase from $15,177,000 in the same period of 2024, representing a growth of 18.3%[15] - Core investment income for the nine months ended September 30, 2025, was $43,688,000, down from $47,830,000 in 2024, reflecting a decrease of 8.9%[15] - Net investment income for the three months ended September 30, 2025, was $8,848,000, an increase from $5,802,000 in the same period of 2024, reflecting a growth of 52.4%[38] - Total investment income for the nine months ended September 30, 2025, was $43,688,000, down from $48,040,000 in 2024, indicating a decrease of 9.3%[38] Asset and Investment Portfolio - Net asset value (NAV) as of September 30, 2025, increased by 40.4% to $231.3 million ($17.55 per share) from $164.7 million ($17.89 per share) as of June 30, 2025[4] - The investment portfolio at fair value as of September 30, 2025, was $539.7 million, comprising 116 different portfolio companies[13] - As of September 30, 2025, the fair value of total investments was $557,147,000, compared to $444,974,000 as of December 31, 2024, indicating an increase of 25.1%[18] - Total investments at fair value rose to $539,701,000, compared to $405,021,000 in the previous period, marking a 33.2% increase[36] - The investment portfolio as of September 30, 2025, included 71.6% in first lien debt, maintaining the same percentage as of December 31, 2024[16] Debt and Liabilities - The company had approximately $324.6 million in outstanding borrowings with a weighted average interest rate of 6.1% as of September 30, 2025[17] - Total liabilities increased to $336,540,000 as of September 30, 2025, compared to $275,141,000 at December 31, 2024, reflecting a rise of 22.3%[36] - Debt investments on non-accrual as of September 30, 2025, were ten, representing 3.8% of the investment portfolio at fair value[13] - Approximately 85.2% of the debt securities portfolio at par value were floating rate, with 84.1% of these loans containing interest rate floors between 0.50% and 5.25%[19] - The company expects that a 1% increase in interest rates would result in a $2,161,000 increase in net investment income[22] Corporate Actions and Future Plans - The company completed a merger with Logan Ridge Finance Corporation on July 15, 2025, enhancing scale and portfolio diversification[3] - The company plans to initiate a modified Dutch Auction tender offer to repurchase up to $9.0 million of its common stock[9] - Between October 1, 2025, and November 4, 2025, the company repurchased 103,690 shares for approximately $1.2 million at an average price of $11.62 per share[8] - The company issued $75 million of 7.75% notes due October 2030 and $35 million of 7.50% notes due October 2028 to diversify funding and enhance financial flexibility[11] - The company expects total repurchases, including management and affiliates' ownership, to approximate 10% of outstanding common stock by year-end[5] Cash and Management - As of September 30, 2025, unrestricted cash was $2.8 million, down from $11.2 million as of June 30, 2025[18] - Management fees for the three months ended September 30, 2025, were $1,808,000, up from $1,611,000 in 2024, representing an increase of 12.2%[38] - The company plans to hold a conference call on November 7, 2025, to discuss third quarter 2025 financial results[23] Shareholder Information - The net asset value per common share decreased to $17.55 from $19.41, a decline of 9.6%[36] - The weighted average common stock outstanding for basic shares increased to 12,549,643 from 9,244,033 year-over-year[38] - The net increase in net assets resulting from operations for the three months ended September 30, 2025, was $23,630,000, compared to a loss of $1,509,000 in the same period of 2024[38] - The company reported net realized losses on investments of $2,678,000 for the three months ended September 30, 2025, compared to losses of $11,419,000 in the same period of 2024[38]