SLR Investment Corp. Q4 and Full-Year 2025 Financial Results – Detailed Investor Analysis
SLR Investment Corp. Announces Q4 and Full-Year 2025 Financial Results
Key Highlights for Investors
- Net Investment Income: \$0.40 per share for Q4 2025; \$1.59 per share for the full year 2025
- Stable Net Asset Value (NAV): \$18.26 per share as of December 31, 2025, with net assets totaling \$996 million
- Comprehensive Investment Portfolio: Fair value of \$3.3 billion at year-end
- Leverage: Net debt-to-equity ratio at 1.14x, near the midpoint of target range
- Portfolio Performance: 100% of the portfolio was performing, with no investments on non-accrual
- Minimal Exposure to Software: Only about 2% of portfolio exposure to software companies
- Payment-in-Kind (PIK): Amendments represented only ~2% of total investment income in Q4 2025
- Strong Credit Quality: Company emphasizes risk control; all investments rated between 1 to 3, with no investments in the highest risk category
Detailed Financial Results
Quarter Ended December 31, 2025
- Net Investment Income: \$21.6 million (\$0.40 per share)
- Net Realized and Unrealized Gain: \$3.5 million (\$0.06 per share)
- Net Increase in Net Assets from Operations: \$25.1 million (\$0.46 per share)
Year Ended December 31, 2025
- Net Investment Income: \$86.9 million (\$1.59 per share)
- Net Realized and Unrealized Gain: \$5.6 million (\$0.10 per share)
- Net Increase in Net Assets from Operations: \$92.5 million (\$1.70 per share)
Portfolio Activity and Asset Breakdown
Originations and Net Portfolio Activity
- Total Originations: \$444.7 million for the comprehensive portfolio in Q4 2025
- Net Portfolio Activity: Sponsor Finance (\$7.2 million), Asset-based Lending (\$13.4 million), Equipment Finance (\$30.1 million), Life Science Finance (negative \$33.6 million)
Investment Portfolio Composition
- Senior Secured Investments: \$3,230.9 million (97.8% of portfolio)
- Equity and Equity-like Securities: \$73.7 million (2.2% of portfolio)
- Floating Rate Investments: \$2,121.1 million
Asset Quality and Risk Ratings
- As of December 31, 2025, the portfolio was 100% performing and had no non-accrual investments.
- Internal Investment Ratings breakdown:
- Rating 1 (least risk): \$1,951.2 million (92.6%)
- Rating 2: \$106.3 million (5.0%)
- Rating 3: \$50.6 million (2.4%)
- Rating 4 (highest risk): \$0.0 million (0.0%)
Investment Income Contribution by Asset Class
- Q4 2025: Sponsor Finance (\$8.4 million), Asset-based Lending (\$6.9 million), Equipment Finance (\$7.9 million), Life Science Finance (\$1.9 million) – totals \$25.1 million
- FY 2025: Sponsor Finance (\$31.0 million), Asset-based Lending (\$26.4 million), Equipment Finance (\$29.9 million), Life Science Finance (\$9.6 million) – totals \$96.9 million
Quarter-over-Quarter Supplemental Information
| Operating Result |
Q4 2025 |
Q3 2025 |
| Interest Income |
\$35,366,000 |
\$36,305,000 |
| Dividend Income |
\$16,371,000 |
\$16,980,000 |
| Other Income |
\$1,006,000 |
\$1,019,000 |
| Net Investment Income |
\$21,600,000 |
\$21,626,000 |
| Net Investment Income per Share |
\$0.40 |
\$0.40 |
| Net Realized & Unrealized Gains per Share |
\$0.06 |
\$0.03 |
| Earnings per Share (basic & diluted) |
\$0.46 |
\$0.43 |
Balance Sheet Snapshot (As of December 31, 2025)
- Investments at Fair Value: \$2,449,417,000
- Debt (net of issuance costs): \$1,146,354,000
- Common Stock Outstanding: 54,554,634 shares
- Paid-in Capital in Excess of Par: \$1,115,023,000
- Accumulated Distributable Net Loss: (\$119,576,000)
Forward-Looking Statements and Risks
- SLR expects to be active and opportunistic in 2026 due to its stable portfolio and available capital.
- The company anticipates generating attractive risk-adjusted returns, with strong credit quality and prospects for growth in its investment pipeline.
- Risks: Macroeconomic factors (inflation, interest rates), geopolitical events, regulatory changes, and sector-specific risks may impact future performance and share value.
- SLR cautions that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.
Shareholder Considerations & Potential Price Sensitivity
- Outstanding Financial Performance: Strong net investment income and stable NAV could drive positive sentiment and potential share price appreciation.
- Risk Control: The company’s 100% performing portfolio and minimal exposure to high-risk sectors (such as software and PIK income) may reassure investors about credit quality and downside protection.
- Leverage Position: Leverage at the midpoint of the target range suggests prudent capital management, supporting future growth and activity.
- Forward-Looking Strategy: Management’s intention to be “active and opportunistic” in 2026 highlights a potential for new investments and portfolio expansion, which may affect future earnings and valuation.
- Low Non-accruals: Absence of non-accruals indicates strong credit monitoring and portfolio health.
Contact and Additional Information
Investor Relations: [email protected]
Phone: (646) 308-8770
Disclaimer: This article is for informational purposes only and does not constitute investment advice. All forward-looking statements are subject to risks and uncertainties. Please refer to SLR Investment Corp.’s filings with the SEC for additional disclosures and risk factors. Investors should conduct their own due diligence before making any investment decisions.
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