Core Insights - OpenAI's valuation has reached $730 billion, which is more than double its valuation from a year ago [1] - Despite the high valuation, OpenAI's financial performance is significantly lower compared to its public peers [1] Financial Comparison - OpenAI's financials are described as "pale" in comparison to those of publicly traded companies in the same sector [1]

L3Harris Technologies, Inc. (NYSE:LHX) is included among the 13 Best Long-Term Dividend Stocks to Invest in Right Now. Baird Lifts L3Harris (LHX) Price Target on Confidence in Long-Term Strategy and Execution Photo by Dan Dennis on Unsplash On February 26, Baird raised its price target on L3Harris Technologies, Inc. (NYSE:LHX) to $420 from $385. It reiterated an Outperform rating on the stock. The firm updated its model after the company’s investor day, where management introduced 2028 targets that came ...

Aristotle Funds, an investment advisor, released its “Core Equity Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets reached new all-time highs in Q4 2025, with the S&P 500 Index rising 2.66% and the Bloomberg U.S. Aggregate Bond Index increasing by 1.10%. Within the Russell 1000 Growth Index, healthcare, communication services, and financials were the top performing sectors, while utilities, real estate, and materials lagged. The U.S. economy showed ...

Aristotle Funds, an investment advisor, released its “Core Equity Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equity markets reached new all-time highs in Q4 2025, with the S&P 500 Index rising 2.66% and the Bloomberg U.S. Aggregate Bond Index increasing by 1.10%. Within the Russell 1000 Growth Index, healthcare, communication services, and financials were the top performing sectors, while utilities, real estate, and materials lagged. The U.S. economy showed ...

Market Indexes Open in the Red Following Inflation SurpriseU.S. stock markets opened sharply lower on Friday, February 27, 2026, as investors reacted to a surprisingly "hot" wholesale inflation report that has reignited concerns over the Federal Reserve's interest rate path. The major indexes faced immediate pressure at the 9:30 AM ET opening bell, with the tech-heavy Nasdaq Composite (COMP) leading the decline, dropping 1.3%. The S&P 500 (SPX) and the Dow Jones Industrial Average (DJI) both opened down 0.9 ...

Nvidia Beats by $2 Billion and Guides Higher but Wall Street Sells Anyway - 24/7 Wall St.[S&P 5006,854.80 -0.61%][Dow Jones48,728.40 -1.22%][Nasdaq 10024,868.20 -0.51%][Russell 20002,619.05 -1.79%][FTSE 10010,882.30 +0.24%][Nikkei 22558,538.70 -0.17%][Stock Market Live February 27, 2026: S&P 500 (SPY) Swimming in Red][Investing]# Nvidia Beats by $2 Billion and Guides Higher but Wall Street Sells Anyway### Quick ReadNvidia (NVDA) beat Q4 estimates with $68.13B revenue and $1.62 EPS. Nvidia stock fell 7% to $ ...

Earnings Report: Pearson plc reported an EPS of $0.52 and revenue of $2.52 billion, with a robust financial health highlighted by a £350 million share buyback.Valuation Ratios: The company's P/E ratio stands at 14.66, with a price-to-sales ratio of 1.74, indicating a reasonable market valuation.Future Growth: Pearson focuses on AI integration and enterprise offerings, projecting mid-single digit sales growth driven by advancements in AI and strategic partnerships.Pearson plc, listed on the NYSE as PSO, is a ...

Investors also cheered the PC maker's plans for a 20% hike to cash ​dividends and an additional $10 billion share repurchase program.Dell's shares surged to a three-month high. Trading at $142.31, it ​was on track to mark its biggest one-day jump in nearly two years.Data center equipment makers such as Dell said it expects AI server revenue to grow ​103% to ​about $50 billion in fiscal 2027.Live EventsAt least seven Wall Street brokerages ⁠raised price targets on the stock, with J.P.Morgan expecting it ​to ...

Financial Data and Key Metrics Changes - In Q4 2025, total investment income was $42.2 million, an increase of $4.9 million from Q3 2025, driven by higher interest income and fee income [16][17] - Adjusted net investment income (NII) grew 5.1% to $19.4 million, with adjusted NII per share at $0.52, compared to $0.50 in Q3 2025 [7][18] - Net asset value increased by 13.2% to $741.9 million at quarter end, with a per-share value of $19.55 [9] Business Line Data and Key Metrics Changes - Originations in Q4 2025 reached $213.7 million, the highest quarterly amount, with total investments for 2025 at $498.2 million [4][5] - The debt portfolio performed well, with first lien investments comprising 86% of the total debt portfolio [11] - The software and tech-enabled services portfolio was valued at $464 million, with 92% in first lien debt [12][13] Market Data and Key Metrics Changes - The company noted a strong M&A environment contributing to increased deal flow, with expectations for continued activity in 2026 [4][15] - The weighted average interest rate on outstanding debt was 5.2% as of December 31, 2025 [19] Company Strategy and Development Direction - The company aims to generate attractive, risk-adjusted returns for shareholders while growing net asset value over time [15] - Focus on investing in niche market leaders with proven business models that generate recurring revenue and cash flow [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the deal flow for 2026, although Q1 is expected to be more modest compared to Q4 2025 [15][28] - The company is confident in the health of its portfolio, with non-accruals accounting for less than 1% of the total portfolio [13] Other Important Information - The company declared a total dividend of $0.52 per share for Q1 2026, consisting of a base dividend and a supplemental dividend [8] - Total liquidity as of December 31, 2025, was approximately $304.8 million, including cash and available credit [21] Q&A Session Summary Question: Is there any spillover of deals from Q4 into Q1? - Management indicated that Q1 2026 deal flow is expected to be more modest, with some growth anticipated as the year progresses [28] Question: Can you elaborate on the software portfolio and AI risks? - Management emphasized the importance of evaluating the durability and value proposition of software companies, noting that nearly all portfolio companies are adding AI features [32][34] Question: What is the focus on ARR loans? - Approximately 22% of the software portfolio consists of ARR loans, with a focus on growth through covenants [40] Question: How comfortable is the company with its largest investment in Fan Steel? - Management expressed strong confidence in the long-term outlook for Fan Steel, viewing it as a leader in its space [42] Question: What is the average floor in the floating rate debt portfolio? - Most recent floors are in the 2% range, which is a market convention for the company [44] Question: How does the company view recovery rates in the lower middle market? - Management indicated that recovery rates for first lien loans typically range from 60% to 85%, and they do not foresee drastic changes in values [67][68]

Financial Data and Key Metrics Changes - The net investment income per share for Q4 2025 was $0.37, with a net asset value (NAV) per share of $12.64, reflecting a decrease of approximately 1% from the previous quarter due to net realized and unrealized losses [20][21] - The adjusted NAV per share for Q4 2025 is $12.61 after accounting for a supplemental dividend of $0.03 per share [20] - The net debt-to-equity ratio increased to 1.27x as of December 31, 2025, compared to 1.17x as of September 30, 2025 [21][29] Business Line Data and Key Metrics Changes - The portfolio's median EBITDA increased by 84% from year-end 2021 to $71.8 million at year-end 2025 [6] - The percentage of first lien investments in the portfolio rose to 97% from 89% during the same period [6] - PIK (Payment-in-Kind) as a percentage of total investment income decreased to 9% in Q4 2025 from 15.3% in Q4 2024 [7] - Investments on non-accrual status decreased slightly to 1.9% of fair value from 2% during the year [7] Market Data and Key Metrics Changes - In the Americas, the company committed approximately $14.6 billion in total for the year, up from $13 billion in 2024 and more than double the activity in 2023 [9] - Total M&A volume globally increased by 44% from 2024, with U.S. private equity deals reaching nearly $1.2 trillion [9] Company Strategy and Development Direction - The company has enhanced its sourcing, underwriting, and portfolio management since its integration into the broader Direct Lending platform in 2022, with 57% of the portfolio benefiting from this integration [4] - The focus remains on high-quality, EBITDA-based investments while actively managing legacy portfolio risks, particularly concerning annualized recurring revenue (ARR) loans [8] - The company aims to leverage its position as part of the number one global investment bank to identify attractive investment opportunities [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the M&A momentum continuing in a potentially falling rate environment, which is expected to stimulate greater demand for credit financing [9] - The company remains vigilant regarding AI's impact on software business models and is prepared to adapt its investment strategies accordingly [12][19] Other Important Information - The company repurchased over 1.5 million shares for $15 million, which is expected to be accretive to NAV by $0.04 per share [27] - The total portfolio investments at fair value were $3.3 billion, with outstanding debt of $1.9 billion and net assets of $1.4 billion as of the end of Q4 2025 [29] Q&A Session Summary Question: Insights on Clearwater and market competitiveness - Management highlighted the advantage of being connected to the number one M&A investment bank, which allows for unique opportunities in take-private transactions [37][39] Question: Strategy regarding spillover and deployment - Management indicated that while there are no current plans for special distributions, they could issue some if necessary, depending on future earnings [52] Question: Changes in deal flow composition - Management noted that the composition of deal flow remains stable, with signs of increased M&A activity in various industries, although software remains cautious due to market volatility [53] Question: AI risk framework application to current portfolio - Management confirmed that while most of the portfolio aligns well with the new AI framework, some legacy assets are being actively managed and exited if they do not meet the criteria [58]