Financial Results for the Fourth Quarter of 2025

Core Viewpoint - Helios Fairfax Partners Corporation reported record net earnings of $41 million for 2025, marking the strongest performance since its establishment in 2020, driven by significant growth in book value and portfolio performance [2][5]. Financial Performance - For the year ended December 31, 2025, the company reported net earnings of $40.5 million, a significant improvement from a net loss of $58.8 million in 2024 [4][19]. - The book value per share increased to $4.22 from $3.84, reflecting a growth of 9.9% [5][19]. - Total portfolio investments rose to $463.7 million from $394.9 million, representing a 17.4% increase [5][19]. - In Q4 2025, net earnings were $18.4 million, compared to a loss of $41.6 million in Q4 2024 [12][19]. Investment Strategy - The company deployed $35.9 million into its portfolio, including investments in Helios Fund IV and loans to HSEG and HDV [5][12]. - HFP realized $25.2 million from Helios Managed Investments, with significant contributions from Seven Rivers and loans with HSEG [5][12]. - The company achieved net gains on investments of $65.2 million, with notable contributions from various investments including Seven Rivers and Helios Fund IV [5][19]. Consolidation and Future Outlook - Starting January 1, 2026, HFP will consolidate its asset management business, which includes TopCo LP and Helios Investment Partners [9][10]. - On a pro forma basis, if the Helios subsidiaries had been consolidated since January 1, 2025, the income would have been approximately $87 million for the year ended December 31, 2025 [10]. - The company has increased its borrowing facilities limit to $85 million, with an option for an additional $15 million to support further investments [12].