GOLUB CAPITAL BDC, INC. EARNINGS PRESENTATION QUARTER ENDED DECEMBER 31, 2025 Confidential | for discussion purposes only Disclaimer Some of the statements in this presentation constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained in this presentation involve risks and uncertainties, including statements as to: our future operating results; our business prospects and the prospects of our portfolio compa ...

Financial Data and Key Metrics Changes - Fundings for the quarter totaled $99.1 million, with net originations at $46.3 million, reflecting a decline in exits and prepayments to $52.8 million [4] - Interest income rose to $23.9 million, a 1% increase, while net investment income declined to $11.3 million or $0.50 per share [10][12] - Total assets increased to $923 million, with liabilities rising to $445 million, resulting in a net asset decline of $4.7 million to $477 million [11][12] Business Line Data and Key Metrics Changes - The portfolio's investment mix remained stable, with first lien debt and total debt investments at 73% and 91% of the portfolio at cost, respectively [6] - PIK income rose to $2.3 million, accounting for 9.6% of interest income, although the accrued PIK balance declined due to collections [6][10] Market Data and Key Metrics Changes - The current line of credit facility totals $365 million, with over $150 million available for near-term investment activities [9] - The company ended the quarter with a conservative leverage position, with net debt at 93% of NAV [9] Company Strategy and Development Direction - The company is focusing on lower middle-market deal flows and has a robust pipeline of late-stage deals exceeding $100 million [8] - Management emphasized the importance of maintaining a strong balance sheet and leveraging bank lines to support growth and dividends [14] Management's Comments on Operating Environment and Future Outlook - Management noted resilience in the lower middle market and expressed optimism about the investment pipeline despite traditional slowdowns in Q1 [8] - The company is cautious about the sustainability of investments in sectors like AI and data centers, focusing instead on its core competencies [21][22] Other Important Information - Monthly distributions for February and March will be $0.15 per common share, with an annual run rate of $1.80 per share, yielding approximately 8.8% [12][13] - The company is monitoring potential impacts from interest rate changes and has strategies in place to support dividends amid fluctuating rates [63] Q&A Session Summary Question: Inquiry about the use of revolver and interest rate floors - Management confirmed that most variable rate loans have floors and that they intend to rely more on floating rate debt as interest rates decline [18][19] Question: Opportunities in AI and data center investments - Management clarified that they do not directly invest in data centers but are cautious about the sustainability of related investments [21][22] Question: Increase in PIK income - Management explained that the increase in PIK is due to specific credits needing cash flow flexibility and ongoing business scaling [23][24] Question: Changes in diluted share count - Management indicated that the change is primarily due to convertible debt accounting requirements and will continue as long as the debt is outstanding [31][32] Question: Regulatory updates affecting BDCs - Management noted that discussions around the AFFE rule have been ongoing for years, with no immediate changes expected [38] Question: Pipeline activity and spillover from Q4 - Management acknowledged that some deals have spilled over from Q4, with ongoing diligence affecting transaction timelines [42][43] Question: Appetite for government contractor businesses - Management stated that they generally avoid government contractors but addressed a unique situation related to a specific portfolio company [46][50] Question: Status of eegee's equity performance - Management provided insights into the challenges faced by eegee's, including seasonal impacts and external economic factors, while noting ongoing management efforts [51][55]

Core Insights - Ares Capital Corporation (ARCC) shares increased by 2.3% after the announcement of its fourth-quarter and full-year 2025 results, with quarterly core earnings of 50 cents per share meeting the Zacks Consensus Estimate, although this represented a 9.1% decline from the prior-year quarter [1][8] Financial Performance - GAAP net income for the fourth quarter was $293 million or 41 cents per share, down from $357 million or 55 cents per share in the prior-year quarter [2] - For the full year 2025, core earnings per share were $2.01, beating the consensus estimate by a penny but declining 13.7% year over year; GAAP net income was $1.3 billion or $1.86 per share, down from $1.52 billion or $2.44 per share in 2024 [2] Investment Income and Expenses - Quarterly total investment income was $793 million, an increase of 4.5% year over year, driven by higher capital structuring service fees, interest income from investments, and other income; however, it fell short of the Zacks Consensus Estimate of $796 million [3][8] - For 2025, total investment income rose 2.1% to $3.05 billion, missing the Zacks Consensus Estimate of $3.06 billion [3] - Total quarterly expenses were $406 million, up 4.9%, primarily due to higher interest and credit facility fees and base management fees [4] Portfolio Activities - In the fourth quarter, Ares Capital made gross commitments of $5.83 billion to new and existing portfolio companies, an increase from $3.75 billion in the prior-year quarter [5] - The company exited $4.75 billion of investment commitments in the reported quarter compared to $2.75 billion a year ago [5] - The fair value of Ares Capital's portfolio investments was $29.5 billion as of December 31, 2025 [5] Balance Sheet Strength - As of December 31, 2025, cash and cash equivalents totaled $638 million, up from $635 million as of December 31, 2024 [6] - Ares Capital had $5.5 billion available for additional borrowings under existing credit facilities, with total outstanding debt at $16 billion [6] - Total assets were $31.24 billion, and stockholders' equity was $14.32 billion, with a net asset value of $19.94 per share, up from $19.89 as of December 31, 2024 [6] Market Outlook - Growth in total investment income is expected in the near term due to rising demand for customized financing and lower rates; increased investment commitments are likely to support ARCC's financials [9] - However, expansion strategies may lead to rising costs, and regulatory constraints pose a significant challenge [9]

Core Viewpoint - Robbins LLP has initiated a class action lawsuit on behalf of investors who acquired BlackRock TCP Capital Corp. (NASDAQ: TCPC) securities between November 6, 2024, and January 23, 2026, alleging that the company misled investors regarding its business prospects [1][2]. Group 1: Allegations Against BlackRock TCP - The complaint alleges that during the class period, BlackRock TCP failed to disclose that its investments were not being timely or appropriately valued [2]. - It is claimed that the company's portfolio restructuring efforts were ineffective in resolving challenged credits or improving portfolio quality [2]. - The lawsuit asserts that the company's unrealized losses were understated, leading to an overstatement of the company's net asset value (NAV) [2]. - As a result of these issues, the positive statements made by the defendants about the company's business and prospects were materially misleading [2]. Group 2: Financial Disclosure and Impact - On January 23, 2026, BlackRock TCP disclosed that its NAV per share as of December 31, 2025, was between $7.05 and $7.09, which is 19% lower than the previous quarter and 23.4% lower than the previous year [3]. - Following this disclosure, BlackRock TCP's stock price dropped by $0.76, or 12.97%, closing at $5.10 per share on January 26, 2026 [3]. Group 3: Class Action Participation - Shareholders interested in serving as lead plaintiffs in the class action must file their papers with the court by April 6, 2026 [4]. - Participation in the case is not required to be eligible for recovery, allowing shareholders to remain absent class members if they choose [4].

Core Viewpoint - Crescent Capital BDC, Inc. will release its financial results for Q4 and the fiscal year ended December 31, 2025, on February 18, 2026, after market close, followed by a conference call on February 19, 2026, at 12:00 p.m. Eastern Time to discuss these results [1]. Group 1: Financial Results Announcement - Crescent BDC will announce its financial results for the fourth quarter and fiscal year on February 18, 2026 [1]. - A conference call will be held on February 19, 2026, at 12:00 p.m. Eastern Time to discuss the financial results [1]. Group 2: Conference Call Information - The conference call will be accessible via the Investor Relations section of Crescent BDC's website [2]. - Participants can join the call by dialing a toll-free number and using a specific Conference ID [2]. Group 3: Company Overview - Crescent BDC is a business development company focused on maximizing total returns for stockholders through capital solutions for middle market companies [4]. - The company is externally managed by Crescent Cap Advisors, LLC, a subsidiary of Crescent Capital Group LP [4]. - Crescent Capital Group LP manages approximately $50 billion in assets and specializes in below investment grade credit [5].

Core View - Ares Capital Corporation (ARCC) reported strong financial results for 2025, with core earnings per share (EPS) of $2.01 for the full year, fully covering dividends and achieving a return on equity (ROE) exceeding 10% [5][20]. - The company ended 2025 with a net asset value (NAV) per share of $19.94, reflecting a modest increase from the previous year [21]. - ARCC's portfolio remains well-diversified, with over 600 borrowers and a record $29.5 billion in total portfolio at fair value, marking a 10% increase year-over-year [29][30]. Financial Performance - Core EPS for Q4 2025 was $0.50, consistent with the previous quarter but down from $0.55 a year ago, primarily due to declining base rates [19]. - GAAP net income per share for 2025 was $1.86, down from $2.44 in 2024 [19]. - The company generated over $470 million in gross gains from its equity co-investment portfolio during 2025, with an average internal rate of return (IRR) exceeding 25% [12][13]. Investment Activity - ARCC achieved a record $15.8 billion in new investment commitments for 2025, with over $5.8 billion originated in Q4 alone, representing a 50% increase from 2024 [28]. - The majority of new lending activity in 2025 came from incumbent borrowers, with a significant increase in transaction activity in the second half of the year [6][8]. - The company added over 100 new borrowers to its portfolio in 2025, a new record, reflecting its broad market reach and specialized industry verticals [8][9]. Portfolio Quality - The average portfolio leverage decreased by approximately a quarter turn of EBITDA from the prior year, with an average interest coverage ratio improving to 2.2 times [11][31]. - Non-accruals at cost remained stable at 1.8%, well below historical averages, indicating strong credit quality [35]. - The weighted average organic EBITDA growth rate of ARCC's borrowers was over three times that of GDP, demonstrating robust performance relative to the broader market [11]. Market Outlook - The company remains confident in its competitive advantages, including its experienced team and strong market relationships, which are expected to support future performance [6][7]. - ARCC anticipates continued growth opportunities from strategic investments and a healthy credit performance outlook, despite potential headwinds from lower short-term interest rates [17][20]. - The company is well-positioned to capitalize on market opportunities, supported by a diversified capital base and a strong liquidity position of over $6 billion [25][26]. Dividend Outlook - ARCC plans to maintain its dividend level, supported by a strong earnings power and over two quarters of spillover income available for distribution [26][15]. - The first quarter 2026 dividend is set at $0.48 per share, continuing a track record of stable or increasing dividends for 66 consecutive quarters [26]. - The company believes its current dividend level is achievable in the prevailing interest rate environment [15].

Financial Data and Key Metrics Changes - The company reported core earnings per share of $0.50 for Q4 2025 and $2.01 for the full year, fully covering dividends and achieving a return on equity (ROE) exceeding 10% for both periods [6][18] - GAAP net income per share for Q4 2025 was $0.41, down from $0.57 in Q3 2025 and $0.55 in Q4 2024; for the full year, GAAP net income per share was $1.86, compared to $2.44 in 2024 [18] - The total portfolio at fair value increased to $29.5 billion at the end of Q4 2025, up from $28.7 billion in Q3 2025 and $26.7 billion a year ago [20][28] Business Line Data and Key Metrics Changes - The company achieved a record $15.8 billion in new investment commitments for 2025, with Q4 alone contributing over $5.8 billion, marking a 50% increase from Q4 2024 [10][26] - Non-sponsored originations grew by more than 50% during 2025, reflecting the company's focus on specialized industry verticals [10] - The average portfolio leverage decreased approximately a quarter turn of EBITDA from the prior year, while the average interest coverage ratio improved to 2.2 times [12][30] Market Data and Key Metrics Changes - The weighted average organic EBITDA growth rate of portfolio companies was more than three times that of GDP and more than double the growth rate of borrowers in the broadly syndicated loan market [11] - The company added over 100 new borrowers to its portfolio during 2025, a new record, and ended the year with a diversified portfolio of 603 borrowers [9][28] Company Strategy and Development Direction - The company emphasized its long-term competitive advantages, including team experience, market relationships, and rigorous credit standards, which are expected to support future performance [7] - The company plans to maintain its dividend despite market expectations for declines in short-term interest rates, supported by a strong balance sheet and growth opportunities from strategic investments [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted a rebound in transaction activity in the second half of 2025, driven by macroeconomic stability and increased pressure on private equity firms [8] - The company expressed confidence in its ability to capitalize on market opportunities, particularly in the software sector, despite emerging risks from AI [58] Other Important Information - The company has over $6 billion in liquidity, including available cash, and a debt-to-equity ratio of 1.08 times, providing significant capacity for future investments [23][24] - The company has a taxable income spillover estimated at $988 million, or $1.03 per share, available for distribution to stockholders in 2026 [25] Q&A Session Questions and Answers Question: Concerns about AI's impact on software business performance - Management expressed confidence in their software portfolio, highlighting that they focus on foundational infrastructure software resistant to technology risk, including AI [39][41] Question: Characterization of the other half of investment commitments - Management noted that a significant portion of new originations supported add-on acquisitions for existing portfolio companies, with limited resurgence in dividend transactions [51][52] Question: Strategy to take advantage of market weakness - Management indicated excitement about potential opportunities during market dislocations, emphasizing their diversified capital base as a competitive advantage [57][58] Question: Why spreads have not widened despite market dislocation - Management explained that recent volatility was short-lived, and the private market tends to react more slowly to changes in the broadly syndicated market [74][75] Question: Will the company deploy its share repurchase program? - Management confirmed that share repurchases are always on the table and will be considered based on stock trading conditions [80]

Earnings Presentation NASDAQ: OCSL First Quarter 2026 Forward Looking Statements & Legal Disclosures Some of the statements in this presentation constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this presentation may include statements as to: our future operating results and distribution projections; the ability of Oaktree Fund Advisors, LLC (together with its affiliates, "Oaktree") to impl ...

Core Insights - Gladstone Investment reported strong performance in fiscal 2026, with significant portfolio growth and a focus on maintaining monthly distributions while pursuing buyout investments that combine debt and equity [3][6]. Investment Activity - In the first nine months of fiscal 2026, the company invested approximately $163 million across four new portfolio companies, a decrease from about $221 million in fiscal 2025 [1]. - The company completed one new buyout investment during the quarter, bringing the total to 29 operating companies, with a healthy acquisition pipeline [2][6]. Financial Performance - Adjusted net investment income (NII) was reported at $0.21 per share, with total assets rising to approximately $1.2 billion, an increase of about $92 million from the previous quarter [2][6]. - Total investment income was $25.1 million, slightly below the prior quarter's $25.3 million, primarily due to lower dividend and success fee income [7]. Asset Valuation and NAV - The net asset value (NAV) increased to $14.95 per share from $13.53, driven by $1.77 per share of net unrealized appreciation and $0.09 per share of net realized gains [14]. - Portfolio company valuations increased by $70.2 million due to improved performance and higher valuation multiples, partially offset by weaker performance in some areas [13][22]. Debt and Financing Strategy - The company redeemed $74.8 million of 8% notes and issued $60 million of 6.875% notes, reducing interest on approximately $75 million of debt by about 110 basis points [4][15]. - The weighted average yield of the debt portfolio remained robust at 12.9%, with over half of the portfolio at its interest rate floor of 12.1% [5][9]. Distributions and Spillover Income - Gladstone Investment maintained its monthly dividend at $0.08 per share, with an estimated spillover income of approximately $22.9 million, or $0.58 per share, as of Dec. 31 [18]. - Total distributable income was reported at $108.7 million, or $2.73 per share, reflecting net unrealized appreciation and the GAAP-adjusted spillover balance [19]. Credit Quality - The company had three portfolio companies on non-accrual status, unchanged from the prior quarter, representing 3.8% of the total portfolio at cost [20]. - Management expressed improved confidence in the non-accrual investments, noting positive EBITDA generation despite existing structural issues [21].

Core Insights - The article emphasizes the potential of high-quality dividend stocks as a reliable investment strategy for long-term wealth growth, particularly in a challenging economic environment [1][2][3] Dividend Stocks Performance - A study by Hartford Funds and Ned Davis Research indicates that dividend stocks have outperformed non-payers over 51 years, achieving an annualized return of 9.2% compared to 4.31% for non-payers, while also exhibiting lower volatility [3] Investment Opportunities - The article highlights three ultra-high-yield dividend stocks with an average yield of 7.97% that are considered attractive buys in February [5] Sirius XM Holdings - Sirius XM Holdings offers a dividend yield of 5.31%, with its share price depressed, bringing the yield close to its all-time high of 5.5% [6][9] - The company operates as a legal monopoly in satellite radio, providing it with strong subscription pricing power, as over 75% of its revenue comes from subscriptions rather than advertising [7][10] - Sirius XM's shares are currently trading at 6.6 times forward-year earnings, representing a 46% discount to its average forward P/E ratio since 2020 [11] The Campbell's Company - The Campbell's Company has a dividend yield of 5.58%, with shares recently hitting their lowest point since May 2009 [12][16] - The company faces short-term challenges from steel tariffs and weakness in snack products, but these are not expected to impact long-term growth significantly [13][14] - Campbell's is actively transforming its operations and pursuing acquisitions to enhance growth, including a $2.7 billion acquisition of Sovos Brands [15][18] PennantPark Floating Rate Capital - PennantPark Floating Rate Capital boasts a remarkable dividend yield of 13.03%, making it an attractive investment option [19] - The company primarily invests in debt securities of middle-market companies, with 87% of its portfolio in debt [20] - PennantPark's lending portfolio benefits from a weighted-average yield of 10.2% on its debt investments, with 99% of its outstanding debt being variable rate [22][23] - The company has maintained a low delinquency rate of 0.4% in its investment portfolio, with over 99% of its loans being first-lien secured debt [24]