Palmer Square Capital BDC(PSBD) - 2025 Q4 - Annual Results

Investment Income - Total investment income for Q4 2025 was $29.8 million, down from $34.9 million in Q4 2024, representing a decrease of approximately 14.7%[4] - Net investment income for Q4 2025 was $13.1 million or $0.41 per share, compared to $14.8 million or $0.45 per share in the same period last year, reflecting a decline of 11.5% in income per share[4] - Total investment income from non-controlled, non-affiliated investments decreased from $143,513,299 in 2024 to $124,394,762 in 2025, a reduction of about 13.3%[24] - Net investment income decreased from $62,600,382 in 2024 to $53,463,580 in 2025, representing a decline of approximately 14.6%[24] Asset Value - Net asset value (NAV) per share decreased to $14.85 as of December 31, 2025, from $15.39 as of September 30, 2025, indicating a decline of 3.5%[4] - The net asset value per common share decreased from $16.50 in 2024 to $14.85 in 2025, a decline of approximately 10%[20] - As of December 31, 2025, total assets were $1.2 billion, and total net assets were $464.1 million[4] - Total assets decreased from $1,431,042,759 in 2024 to $1,219,375,759 in 2025, a decline of approximately 14.8%[20] Losses and Investments - Total net realized and unrealized losses for Q4 2025 were $18.4 million, significantly higher than losses of $2.9 million in Q4 2024[4] - Gross investments in 2025 were $426,717,344, down from $773,809,544 in 2024, a decrease of approximately 44.9%[27] - Total principal amount of investments sold or repaid increased from $468,762,595 in 2024 to $581,986,420 in 2025, an increase of about 24.2%[27] - The number of new investment commitments decreased from 94 in 2024 to 90 in 2025[27] Debt and Financing - The debt-to-equity ratio as of December 31, 2025, was 1.54x, slightly up from 1.53x as of September 30, 2025[4] - The company had $21.5 million in unfunded commitments to provide debt financing to its portfolio companies as of December 31, 2025[22] - The weighted average interest rate of new investment commitments was 8.25% in 2025, down from 9.12% in 2024[27] Dividends - The company declared a first quarter regular base dividend of $0.36 per share, payable on April 9, 2026, with an additional supplemental dividend expected to be announced in March[9] Portfolio Overview - The portfolio consisted of 264 investments in 205 companies with a total fair value of approximately $1.2 billion, with 84.3% in first lien senior secured debt[6] - The weighted average total yield to maturity of debt and income-producing securities at fair value was 11.30% as of December 31, 2025[7] - The principal amount of new investments funded in Q4 2025 was $91.4 million, with $148.3 million in aggregate principal amount in sales and repayments[7]