MSCC(US:MAIN) ZACKS·2025-05-09 17:11Core Insights - Main Street Capital Corporation (MAIN) reported an adjusted net investment income of $1.01 per share for Q1 2025, exceeding the Zacks Consensus Estimate of $1 per share but down from $1.05 per share in the same quarter last year [1] - The increase in total investment income was a positive factor, while rising expenses negatively impacted the results [1] Total Investment Income & Expenses - Total investment income for Q1 was $137.05 million, reflecting a 4.1% year-over-year increase, primarily driven by higher dividend income, although it fell short of the Zacks Consensus Estimate by 0.2% [2] - Total expenses rose to $47.2 million, a 13% increase year-over-year, attributed to higher costs across all expense components except for compensation [2] Portfolio Activities - In Q1, the company invested $86.2 million in its lower middle market (LMM) portfolio, with $61.9 million allocated to new portfolio companies, compared to $91.8 million in total LMM portfolio investment in the same quarter last year [3] - Total private loan portfolio investments amounted to $138.2 million, down from $154.5 million in the prior-year quarter [3] Balance Sheet Position - As of March 31, 2025, cash and cash equivalents stood at $109.2 million, an increase from $78.3 million as of December 31, 2024 [5] - The company has an unused capacity of $1.19 billion under its corporate revolving credit facility, a decrease of 10.03% from the previous quarter [5] - Total assets reached $5.3 billion, up 2.9% from the previous quarter, while net asset value increased to $32.03 per share from $31.65 [5] Future Outlook - Growth in total investment income is anticipated to continue, driven by increased demand for customized financing and higher investment commitments, although rising expenses present a near-term concern [6]