Yahoo Finance

• Annualized Return on Equity: 16.5%.

• Net Asset Value (NAV) per Share: Record high for the 11th consecutive quarter.

• Total Investment Income: $137 million, a 4.1% increase over the first quarter of 2024.

• Dividend Income: Increased by $13.2 million compared to a year ago.

• Net Fair Value Appreciation: $33.6 million.

• Investments on Nonaccrual Status: 1.7% of the total investment portfolio at fair value.

• Net Asset Value (NAV) per Share: $32.03, an increase of $0.38 from the previous quarter.

• Regulatory Debt-to-Equity Leverage: 0.67 times.

• Liquidity: In excess of $1.3 billion.

• Net Increase in Lower Middle Market Investments: $57 million.

• Net Increase in Private Loan Investments: $26 million.

• Supplemental Dividend: $0.30 per share payable in June.

• Regular Monthly Dividends for Q4 2025: Increased to $0.255 per share.

• NII per Share: $1.07 for the quarter.

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Release Date: May 09, 2025

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

Positive Points

• Main Street Capital Corp (NYSE:MAIN) reported an annualized return on equity of 16.5% for the first quarter.

• The company achieved a new record for net asset value (NAV) per share for the 11th consecutive quarter.

• Main Street Capital Corp (NYSE:MAIN) declared a supplemental dividend of $0.30 per share, marking the 15th consecutive quarterly supplemental dividend.

• The company successfully exited its investment in Heritage Vet Partners, realizing a gain of over $55 million.

• Main Street Capital Corp (NYSE:MAIN) maintains strong liquidity with over $1.3 billion in cash and credit availability.

Negative Points

• Interest income decreased by $2.1 million from the previous year, primarily due to an increase in investments on nonaccrual status.

• Operating expenses increased by $5.4 million over the first quarter of 2024, driven by higher interest and compensation expenses.

• The company recorded net realized losses of $29.5 million in the quarter, primarily from the exit or restructure of underperforming investments.

• Investments on nonaccrual status comprised 1.7% of the total investment portfolio at fair value.

• Main Street Capital Corp (NYSE:MAIN) anticipates potential headwinds on top-line earnings due to possible decreases in floating market rates and tariff impacts.

Q & A Highlights

Q: Can you provide more details on the tariff exposure within your portfolio companies? A: Dwayne Hyzak, CEO, explained that most lower middle market companies are U.S.-based with limited exposure to tariffs. Approximately a high single-digit percentage of the portfolio has meaningful exposure, primarily from companies importing finished goods. Another 10-20% has some level of exposure due to the global nature of business. In the private loan portfolio, the risk is similar, with a few companies having direct exposure, some of which are already on nonaccrual status. Overall, the exposure is considered manageable, with management teams actively mitigating risks.