Financial Data and Key Metrics Changes - The company reported a net investment income (NII) of $2.4 million, or $0.20 per share, down from $5.9 million, or $0.51 per share, in the second quarter of 2025 [11][12] - Net asset value (NAV) per share decreased to $10.01 from $12.10, primarily due to losses associated with First Brands [9][12] - The asset coverage ratio was 168.2%, slightly down from 169.5% as of June 30 [12] Business Line Data and Key Metrics Changes - The CLO joint venture (JV) generated $1.5 million in the third quarter, a decline from $4.3 million in the second quarter [7][11] - The company received $4.3 million in distributions from the CLO JV in the fourth quarter to date, with expectations for further distributions [7][28] Market Data and Key Metrics Changes - The company experienced a significant adverse impact on NAV due to First Brands' bankruptcy, which affected NAV by approximately $16.5 million [4][11] - The investment in CW Opportunity 2 LP saw a decline in fair value, with CoreWeave common stock dropping approximately 16% in the quarter [9] Company Strategy and Development Direction - The company plans to focus on increasing allocations to first lien senior secured investments to enhance portfolio quality [13] - A $10 million share repurchase program has been approved by the board, alongside a $0.37 dividend for the fourth quarter [6][12] - The company aims to diversify its portfolio and reduce average position sizing as it deploys capital [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to rebuild income and NAV, emphasizing a strong capital position and focus on risk management [6][10] - The company is taking a measured approach to new originations, prioritizing credit fundamentals and downside protection [17] - Management noted that the exposure to First Brands was too large and highlighted the importance of portfolio diversification moving forward [6][9] Other Important Information - The company has over $25 million in cash to deploy and $50 million available under its revolver, providing significant financial flexibility [17] - The company is actively working to monetize non-yielding equity investments to reinvest in cash-generating opportunities [15][17] Q&A Session Summary Question: Inquiry about CoreWeave capital distributions - Management confirmed that distributions received cover the cost basis of the investment, with future distributions expected to generate additional capital for reinvestment [23][24] Question: Clarification on the $20 million capital from non-yielding assets - Management indicated that the $20 million includes CoreWeave and other identified non-yielding assets expected to be harvested [25][26] Question: Discussion on the current investment pipeline - Management noted that while spreads in public markets are tight, they are focused on secured and income-generating opportunities, with a robust deal pipeline [27]

Financial Performance - Originations reached $3.9 billion, a 5% year-over-year increase[13] - Capital Generation increased to $272 million, up 29% year-over-year[14] - Managed Receivables totaled $25.9 billion, reflecting a 6% year-over-year growth[15] - Consumer & Insurance (C&I) Adjusted Diluted EPS increased significantly to $1.90, a 51% year-over-year increase[17] Portfolio Quality - C&I Net Charge-offs decreased by 51 basis points year-over-year to 70%[17] - Consumer Loan Net Charge-offs decreased by 66 basis points year-over-year to 67%[17] - The company's 30+ delinquency rate was 541%, down 16bps year-over-year[47,50] New Products & Receivables - Credit Card Receivables grew to $834 million[16] - Auto Managed Receivables reached $2.7 billion[15] - BrightWay credit card rollout saw 11% quarter-over-quarter receivables growth[38] Capital Allocation - The company declared a dividend of $105 per share, an increase from $104[17] - The dividend yield is approximately 7% based on the closing share price on October 29, 2025[17] - The board authorized a $1 billion share repurchase program through December 31, 2028[17]

Financial Performance - Originations increased to $3.9 billion, up 9% year-over-year[13] - Capital Generation reached $222 million, a 63% increase year-over-year[14] - Managed Receivables totaled $25.2 billion, up 7% year-over-year[15] - Consumer & Insurance (C&I) Total Revenue was $1.5 billion, a 10% increase year-over-year[15] - C&I Adjusted Earnings Per Share (EPS) increased to $1.45, up 42% year-over-year[19] Credit Quality - C&I Net Charge-offs decreased to 7.6%, down 88 basis points year-over-year[16] - Consumer Loan Net Charge-offs decreased to 7.2%, down 110 basis points year-over-year[18] - 30+ delinquency of 5.07%, down 29bps YoY[50] Balance Sheet and Funding - The company issued $1 billion in Asset-Backed Securities (ABS) and $800 million in unsecured debt[20] - The company repurchased 460 thousand shares for $21 million in 2Q25[78]

Financial Performance - Originations reached $3 billion, a 20% year-over-year increase (13% organic)[13] - Capital Generation was $194 million, with C&I Adjusted EPS at $1.72[14] - C&I Total Revenue increased by 10% year-over-year to $1.5 billion[22] - Adjusted Pretax Income for Consumer & Insurance (C&I) was $275 million[25] Receivables and Portfolio - Managed Receivables totaled $24.6 billion, up 12% year-over-year (6% organic)[15] - Auto Managed Receivables amounted to $2.5 billion, with originations of $342 million[15] - Credit Card Receivables reached $676 million across 836 thousand customer accounts[16] Credit Quality - Consumer Loan net charge-offs decreased by 75bps year-over-year to 7.8%[17] - Consumer Loan 30+ Day Delinquency decreased by 49bps year-over-year to 5.08%[18] - C&I net charge-offs were 8.2%[17] Strategic Priorities - The company expects Managed Receivables Growth of 50%-80% in 2025[83] - The company expects Revenue Growth of 60%-80% in 2025[83] - The company expects an Operating Expense Ratio of ~6.6% in 2025[83]