• Assets Under Management: Approximately $1.2 billion on a fair value basis, up 6% compared to December 31, 2024.

• Adjusted Net Investment Income (NII): $18.5 million for the quarter, $0.54 per share compared to $0.59 per share in Q1 2024.

• Net Asset Value (NAV): $677.9 million or $19.39 per share at quarter end.

• Dividends Paid: Total of $0.54 per share, consisting of a base dividend of $0.43 and a supplemental dividend of $0.11 per share.

• Originations: $115.6 million for the first quarter, with $102.1 million invested in seven new portfolio companies.

• Debt Investments: Totaled $111.6 million, with first lien securities accounting for approximately 94% of the total.

• Proceeds from Repayments and Realizations: $57.3 million for the first quarter.

• Total Investment Income: $36.5 million for the three months ended March 31.

• Total Expenses: $18.3 million for the first quarter.

• Net Investment Income (NII) Per Share: $0.53 per share for the three months ended March 31.

• Net Realized Gains: Approximately $11.5 million net of income tax from the sale of two portfolio companies.

• Debt Issuance: $100 million of five-year unsecured debt with a 6.75% coupon.

• Net Debt-to-Equity Ratio: 0.7 times as of March 31.

• Weighted Average Effective Yield on Debt Investments: 13.2% as of March 31.

• Liquidity and Capital Resources: Total liquidity of approximately $231.5 million as of March 31.

• Warning! GuruFocus has detected 7 Warning Signs with FDUS.

Release Date: May 09, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Fidus Investment Corp (NASDAQ:FDUS) reported a 6% increase in assets under management, reaching approximately $1.2 billion on a fair value basis compared to December 31, 2024.

• Adjusted net investment income for the quarter was $18.5 million, showing an increase from $18.1 million in Q1 2024.

• The company declared a total dividend of $0.54 per share for the second quarter of 2025, maintaining the same level as the first quarter.

• Fidus Investment Corp (NASDAQ:FDUS) successfully originated $115.6 million in the first quarter, with $102.1 million invested in seven new portfolio companies.

• The portfolio remains healthy with companies on nonaccrual accounting for less than 1% of the total portfolio on a fair value basis, indicating strong credit quality.

Negative Points

• Deal activity in the lower middle market remained modest, reflecting lackluster M&A trends.

• Total investment income decreased by $1 million from Q4 2024, primarily due to a decline in interest income and fee income.

• Net investment income per share decreased to $0.53 from $0.55 in Q4 2024.

• The weighted average yield on debt investments slightly decreased to 13.2% from 13.3% at the end of Q4 2024.

• The company faces uncertainty in the M&A market due to macroeconomic challenges and trade policy uncertainties, impacting future deal flow.