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 remains on investing in niche market leaders with proven business models that generate recurring revenue [7][15] Management's Comments on Operating Environment and Future Outlook - Management indicated that Q1 2026 deal flow is expected to be more modest compared to Q4 2025, influenced by seasonal patterns [27][28] - The company remains optimistic about the long-term 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 while Q4 was strong, Q1 is expected to have more modest deal flow due to seasonal patterns [27][28] Question: Can you elaborate on the software companies in your portfolio? - Management emphasized the importance of long-term barriers to entry and the quality of management in evaluating software investments [32][34] Question: What is the focus on ARR loans in your portfolio? - 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 Fansteel? - Management expressed strong confidence in the long-term outlook for Fansteel, viewing it as a leader in its space [42] Question: What are the average floors in your floating rate debt portfolio? - Most floating rate debt originated in recent years has floors in the 2% range [44]

Fidus Investment (NasdaqGS:FDUS) Q4 2025 Earnings call February 27, 2026 09:00 AM ET Speaker5Good day, welcome to the Fidus Investment Corporation's fourth quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the Star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press Star, then 1 on a touch-tone phone. To withdraw your ques ...