Board Authorized New $100 Million Stock Repurchase Plan
Results for the Quarter and Fiscal Year Ended December 31, 2025, and Other Recent Highlights:
-- Net investment income per share for the quarter was $0.39, compared to
$0.38 for the quarter ended September 30, 2025
-- Net asset value ("NAV") per share as of the end of the quarter was
$14.18, compared to $14.66 as of September 30, 2025, representing a 3.3%
decline primarily driven by a handful of investments predominantly from
2022 and earlier vintages
-- New investment commitments made during the quarter totaled $141
million(1)
-- Gross fundings, excluding revolver fundings,(2) totaled $156 million for
the quarter
-- Net fundings, including revolvers(2) and Merx, totaled $25 million for
the quarter
-- Merx repaid $7.5 million to the Company (as defined below) in the
December quarter and an additional $22 million in February 2026 for a
total amount of $29.5 million
-- Net leverage(3) was 1.45x as of December 31, 2025
-- Repurchased 1,091,753 shares of common stock at a weighted average price
per share of $11.81, inclusive of commissions, for an aggregate cost of
$12.9 million during the quarter, generating $0.03 per share of NAV
accretion
-- On February 25, 2026, the Company's Board of Directors (the "Board")
declared a dividend of $0.31 per share payable on March 26, 2026, to
stockholders of record as of March 10, 2026(4)
-- The Board authorized a new $100 million stock repurchase plan (the
"Repurchase Plan")
NEW YORK, Feb. 26, 2026 (GLOBE NEWSWIRE) -- MidCap Financial Investment Corporation $(MFIC)$ or the "Company," today announced financial results for the quarter and fiscal year ended December 31, 2025. The Company's net investment income was $0.39 per share for the quarter and fiscal year ended December 31, 2025, compared to $0.38 per share for the quarter ended September 30, 2025. The Company's NAV was $14.18 per share as of December 31, 2025, compared to $14.66 as of September 30, 2025.
On February 25, 2026, the Board declared a quarterly dividend of $0.31 per share payable on March 26, 2026, to stockholders of record as of March 10, 2026.
Commenting on the Company's results for the fourth quarter of 2025, Mr. Tanner Powell, Chief Executive Officer, stated, "We delivered solid net investment income in the fourth quarter. The overall portfolio continues to show resilience as evidenced by our relatively steady credit metrics. In light of changes in base rates and other factors, we have re-assessed the long-term earnings power of the Company, and the Board has concluded that it was prudent to adjust the dividend at this time. Accordingly, the Board has declared a quarterly dividend of $0.31 per share."
Mr. Powell continued, "Apollo's longstanding commitment has been to deliver positive outcomes in all instances where we manage investor capital. With respect to the public vehicles we manage across different asset classes, we have been active in evaluating potential strategies and options with the objective of maximizing realizable value for stockholders. During the fourth quarter, the market presented us with what we viewed as an attractive opportunity to repurchase MFIC stock at a significant discount to NAV, generating approximately three cents per share of NAV accretion for stockholders. At these trading levels, we continue to believe allocating capital toward stock repurchases is more accretive than deploying capital into new investments. Accordingly, the Board has authorized a new $100 million stock repurchase plan, which we expect to utilize aggressively in combination with a Rule 10b5-1 trading plan to capitalize on what we believe is a compelling opportunity for our stockholders. If the current discount continues, and trading volumes remain in their current range, we anticipate fully utilizing our current authorization by late May."
Mr. Ted McNulty, the Company's President and Chief Investment Officer, commented, "With respect to software, our exposure is meaningfully lower than the broader BDC industry. As of December 31, 2025, software represented only 11.4% of MFIC's portfolio at fair value. We have constructed a portfolio that we believe is relatively resilient to AI-related risks, with an emphasis on businesses that have long-standing, entrenched customer relationships."
___________________
(1) Commitments made for the direct origination portfolio.
(2) During the quarter ended December 31, 2025, direct origination revolver fundings totaled $37 million, direct origination revolver repayments totaled $26 million and Merx Aviation Finance, LLC repaid $7.5 million.
(3) The Company's net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.
(4) There can be no assurances that the Board will continue to declare a base dividend of $0.31 per share.
FINANCIAL HIGHLIGHTS
($ in billions, June March
except per share December September 30, 31, December
data) 31, 2025 30, 2025 2025 2025 31, 2024
--------- ---------- ------ ------ ---------
Total assets $ 3.32 $ 3.31 $ 3.46 $ 3.36 $ 3.19
Investment
portfolio (fair
value) $ 3.17 $ 3.18 $ 3.33 $ 3.19 $ 3.01
Debt outstanding $ 2.00 $ 1.92 $ 2.05 $ 1.94 $ 1.75
Net assets $ 1.31 $ 1.37 $ 1.38 $ 1.39 $ 1.40
Net asset value
per share $ 14.18 $ 14.66 $14.75 $14.93 $ 14.98
Debt-to-equity 1.53 x 1.40 x 1.49 1.39 1.25 x
ratio x x
Net leverage 1.45 x 1.35 x 1.44 1.31 1.16 x
ratio (1) x x
___________________
(1) The Company's net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.
PORTFOLIO AND INVESTMENT ACTIVITY
Three Months Ended Year Ended
December 31, December 31,
------------------ -------------------
(in millions)* 2025 2024 2025 2024
------- -------- -------- --------
Investments made
in portfolio
companies $ 193.6 $ 303.5 $1,274.6 $1,613.6
Investments sold (14.7) (82.9) (111.1) (271.5)
------ ------- ------- -------
Net activity
before repaid
investments 178.9 220.6 1,163.6 1,342.1
Investments
repaid (154.3) (226.9) (972.6) (657.5)
------ ------- ------- -------
Net investment
activity $ 24.6 $ (6.4) $ 191.0 $ 684.6
------ ------- ------- -------
Portfolio
companies, at
beginning of
period 246 250 233 152
Number of
investments in
new portfolio
companies 11 11 54 167
Number of exited
companies (10) (28) (40) (86)
------ ------- ------- -------
Portfolio
companies at end
of period 247 233 247 233
------ ------- ------- -------
Number of
investments in
existing
portfolio
companies 92 83 156 130
------ ------- ------- -------
___________________
(*) Totals may not foot due to rounding.
OPERATING RESULTS
Three Months Twelve Months
Ended December Ended December
31, 31,
---------------- -----------------
(in millions)* 2025 2024 2025 2024
------ ------- ------ --------
Net investment
income $ 36.0 $ 37.1 $142.0 $ 133.3
----- ------ ----- -------
Net realized and
change in
unrealized
gains (losses) (48.7) (13.0) (78.8) (34.5)
----- ------ ----- -------
Net increase in
net assets
resulting from
operations $(12.7) $ 24.1 $ 63.2 $ 98.8
----- ------ ----- -------
(per share)*
(1)
----- ------ ----- -------
Net investment
income on per
average share
basis $ 0.39 $ 0.40 $ 1.52 $ 1.71
----- ------ ----- -------
Net realized and
change in
unrealized gain
(loss) per
share (0.53) (0.14) (0.84) (0.44)
----- ------ ----- -------
Earnings per
share -- basic $(0.14) $ 0.26 $ 0.68 $ 1.27
----- ------ ----- -------
___________________
* Totals may not foot due to rounding.
(1) Based on the weighted average number of shares outstanding for the period presented.
SHARE REPURCHASE PROGRAM*
During the three months ended December 31, 2025, the Company repurchased 1,091,753 shares at a weighted average price per share of $11.81, inclusive of commissions, for a total cost of $12.9 million. This represents a discount of approximately 18% of the average net asset value per share for the three months ended December 31, 2025.
The Company has not repurchased any shares from January 1, 2026, through February 25, 2026.
Since the inception of the share repurchase program and through February 25, 2026, the Company repurchased 17,161,559 shares at a weighted average price per share of $15.56, inclusive of commissions, for a total cost of $267.1 million.
The Company also announced today that the Board has approved the Repurchase Plan to acquire up to $100 million of the Company's common stock. The new Repurchase Plan is in addition to the Company's existing share repurchase authorization, of which approximately $7.9 million of repurchase capacity remains. Accordingly, the Company now has approximately $107.9 million available for stock repurchases under its repurchase program.
Since the inception of the share repurchase program in August 2015, the Board has approved seven stock repurchase plans, inclusive of the newly authorized Repurchase Plan, for a total share repurchase authorization of $375 million.
Since the inception of the share repurchase program and through December 31, 2025, the Company has repurchased $267.1 million of common stock, inclusive of commissions. Under the Repurchase Plan, the Company may, but is not obligated to, repurchase its outstanding common stock in the open market from time to time provided that the Company complies with the prohibitions under its insider trading policies and the requirements of Rule 10b-18 of the Exchange Act, including certain price, market volume and timing constraints. The Company intends to allocate a portion of the authorized amount under the Repurchase Plan to be repurchased in accordance with Rule 10b5-1 (the "10b5-1 Plan") of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Repurchase Plan and the 10b5-1 Plan are designed to allow the Company to repurchase its shares both during its open window periods and at times when it otherwise might be prevented from doing so under applicable insider trading laws or because of self-imposed trading blackout periods. The Repurchase Plan does not have an expiration date and may continue to be modified or discontinued at any time.
* Share figures have been adjusted for the 1-for-3 reverse stock split which was completed after market close on November 30, 2018.
LIQUIDITY
As of December 31, 2025, the Company's outstanding debt obligations, excluding deferred financing cost and debt discount of $5.8 million, totaled $2.0 billion, which was comprised of $125 million of Senior Unsecured Notes, which will mature on July 16, 2026, $80 million of Senior Unsecured Notes, which will mature on December 15, 2028, $456 million outstanding secured debt in MFIC Bethesda CLO 1 LLC, $399 million outstanding secured debt in MFIC Bethesda CLO 2 LLC, and $941 million outstanding under the Facility (as defined below). As of December 31, 2025, there were no standby letters of credit were issued through the Facility. The available remaining capacity under the Facility was $669 million as of December 31, 2025, which is subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company's portfolio.
On October 1, 2025, the Company amended and extended the senior secured, multi-currency, revolving credit facility (the "Facility" and as amended, the "Amended Senior Secured Facility"). Lender commitments under the Amended Senior Secured Facility decreased from $1.660 billion to $1.610 billion. The Amended Senior Secured Facility includes an "accordion" feature that allows the Company to increase the size of the Facility to $2.415 billion.
The final maturity date under the Amended Senior Secured Facility was extended from October 17, 2029 to October 1, 2030. In connection with the amendment, the interest rate on funded borrowings decreased 10 bps, and the unused commitment fee was reduced from 0.375% to 0.325%. The remaining material business terms and conditions of the Amended Senior Secured Facility remain substantially the same. The Amended Senior Secured Facility continues to include usual and customary events of default for senior secured revolving credit facilities of this type.
Borrowings under the Amended Senior Secured Facility (and the incurrence of certain other permitted debt) continue to be subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company's portfolio. The advance rate applicable to any specific type of asset in the Company's portfolio depends on the relevant asset coverage ratio as of the date of determination. Borrowings under the Amended Senior Secured Facility continue to be subject to the leverage restrictions contained in the Investment Company Act of 1940, as amended (the "1940 Act"). Terms used in this disclosure have the meanings set forth in the Amended Senior Secured Facility.
On October 23, 2025, the Company upsized, extended the maturity, and reduced the pricing on Bethesda CLO 1. The size of Bethesda CLO 1 increased from $402.4 million to $646.4 million. The notes offered by Bethesda CLO 1 increased from $248 million to $492 million. The notes sold by Bethesda CLO 1 increased from $232 million to $456 million. The notes offered by the Bethesda CLO 1 Issuer in connection with the Bethesda CLO 1 Upsize consisted of $348 million of AAA(sf) Class A-1 Senior Secured Floating Rate Notes due 2037, which bear interest at the three-month SOFR plus 1.49%, $24 million of AAA(sf) Class A-2 Senior Secured Floating Rate Notes due 2037 which bear interest at three-month SOFR plus 1.65%, $36 million of AA(sf) Class B Senior Secured Floating Rate Notes due 2037, which bear interest at three-month SOFR plus 1.85%, $48 million of A(sf) Class C Senior Secured Floating Rate Notes due 2037, which bear interest at three-month SOFR plus 2.30%, $36 million of BBB-(sf) Class D Senior Secured Floating Rate Notes due 2037, which bear interest at three-month SOFR plus 3.30% and $154.36 million of Subordinated notes due 2123, which do not bear interest. The Bethesda CLO 1 Upsize is backed by a diversified portfolio of middle-market commercial loans, which the Bethesda CLO 1 Issuer purchased from the Company pursuant to a loan sale agreement entered into on the closing date of the Bethesda CLO 1 Upsize using the proceeds of the Bethesda CLO 1 Upsize. The Company retained all Class D Notes and all Subordinated Notes and the proceeds from the Bethesda CLO 1 Upsize were used to repay borrowings under the Company's Facility. The Company serves as collateral manager to the Bethesda CLO 1 Issuer, Sumitomo Mitsui Banking Corporation acted as initial purchaser and Apollo Global Securities, LLC acted as placement agent.
CONFERENCE CALL / WEBCAST AT 8:30 AM EST ON FEBRUARY 27, 2026
The Company will host a conference call on Friday, February 27, 2026, at 8:30 a.m. Eastern Time. All interested parties are welcome to participate in the conference call by dialing (800) 225-9448 approximately 5-10 minutes prior to the call; international callers should dial (203) 518-9708. Participants should reference either MidCap Financial Investment Corporation Earnings or Conference ID: MFIC0227 when prompted. A simultaneous webcast of the conference call will be available to the public on a listen-only basis and can be accessed through the Events Calendar in the Shareholders section of our website at www.midcapfinancialic.com. Following the call, you may access a replay of the event either telephonically or via audio webcast. The telephonic replay will be available approximately two hours after the live call and through March 20, 2026, by dialing (800) 695-2122; international callers should dial (402) 530-9027. A replay of the audio webcast will also be available later that same day. To access the audio webcast please visit the Events Calendar in the Shareholders section of our website at www.midcapfinancialic.com.
SUPPLEMENTAL INFORMATION
The Company provides a supplemental information package to offer more transparency into its financial results and make its reporting more informative and easier to follow. The supplemental package is available in the Shareholders section of the Company's website under Presentations at www.midcapfinancialic.com.
Our portfolio composition and weighted average yields as of December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025 and December 31, 2024 were as follows:
December 31, September 30, June 30, March 31, December 31,
2025 2025 2025 2025 2024
Portfolio
composition, at
fair value:
First lien secured
debt 95% 95% 93% 93% 92%
Second lien
secured debt 0% 0% 0% 0% 1%
------------- ------------- ------------- ------------- -------------
Total secured debt 95% 95% 93% 93% 93%
Unsecured debt 0% 0% 0% 0% 0%
Structured
products and
other 0% 1% 1% 1% 1%
Preferred equity 1% 1% 1% 1% 1%
Common
equity/interests
and warrants 4% 3% 5% 5% 5%
Weighted average
yields, at
amortized cost
(1) :
First lien secured
debt (2) 9.7% 10.2% 10.4% 10.5% 10.8%
Second lien
secured debt (2) 13.0% 13.5% 13.7% 13.8% 14.4%
Total secured debt
(2) 9.7% 10.2% 10.4% 10.5% 10.8%
Unsecured debt
portfolio (2) 11.1% 11.1% 9.5% 9.5% 9.5%
Total debt
portfolio (2) 9.7% 10.2% 10.4% 10.5% 10.8%
Total portfolio
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