Globenewswire·2026-03-05 21:29Core Viewpoint - Monroe Capital Corporation reported its financial results for Q4 and the full year of 2025, highlighting a proposed merger with Horizon Technology Finance Corporation and adjustments to its dividend structure to align with net investment income [1][4]. Financial Highlights Fourth Quarter 2025 Financial Highlights - Adjusted Net Investment Income (NII) for Q4 2025 was $2.3 million, or $0.11 per share, up from $1.9 million, or $0.09 per share in Q3 2025 [6][13]. - Net Asset Value (NAV) decreased to $166.5 million, or $7.68 per share, from $173.0 million, or $7.99 per share in the previous quarter [6][9]. - The company experienced a net loss of $4.9 million for Q4 2025, compared to a loss of $3.0 million in Q3 2025, primarily due to mark-to-market declines in certain portfolio companies [16][18]. Full Year 2025 Financial Highlights - For the full year 2025, NII totaled $11.4 million, or $0.53 per share, down from $24.5 million, or $1.13 per share in 2024 [19][22]. - Total investment income for 2025 was $37.9 million, a decrease of $22.6 million from $60.5 million in 2024, driven by declines in interest and dividend income [20][22]. - Total expenses for 2025 were $26.5 million, down from $36.0 million in 2024, mainly due to lower interest expenses and management fees [21][22]. Portfolio Summary - As of December 31, 2025, investments at fair value were $334.9 million, down from $360.7 million at the end of Q3 2025 [10][34]. - The number of portfolio company investments increased to 87 from 79 in the previous quarter, with 4.0% of these investments on non-accrual status [10][11]. - The weighted average contractual yield decreased to 9.4% from 9.9% in the prior quarter [10]. Merger and Dividend Information - The company anticipates the merger with Horizon Technology Finance Corporation to close by the end of Q1 or early Q2 2026, which is expected to unlock value for stockholders [4][5]. - The Board declared a first-quarter distribution of $0.09 per share, payable on March 31, 2026, to stockholders of record on March 16, 2026 [1][33].