Press Release: SLR Investment Corp. Announces Quarter and Year Ended December 31, 2025 Financial Results

Dow Jones02-25 05:01

Net Investment Income of $0.40 Per Share for Q4 2025;

Stable NAV/Strong Credit Quality

NEW YORK, Feb. 24, 2026 (GLOBE NEWSWIRE) -- SLR Investment Corp. (NASDAQ: SLRC) (the "Company", "SLRC", "we", "us", or "our") today reported net investment income ("NII") of $21.6 million, or $0.40 per share, for the fourth quarter of 2025. On February 24, 2026, the Board declared a quarterly distribution of $0.41 per share payable on March 27, 2026, to holders of record as of March 13, 2026.

As of December 31, 2025, net asset value ("NAV") was $18.26 per share, up modestly from both the prior quarter ended September 30, 2025 and the prior year ended December 31, 2024.

"SLRC's fourth-quarter results solidified a strong year for the Company despite challenging conditions in the private credit industry. The stability in both NII and NAV per share in the fourth quarter generated a 10.1% return on equity and showcased another quarter of broad resilience in our portfolio, steady portfolio growth, and a continuation of a shift to direct asset based-lending investments that are supported primarily by high quality current assets as collateral and an expectation for attractive risk-adjusted returns," said Michael Gross Co-CEO of SLR Investment Corp. "SLRC's diversity of private credit investment strategies provides investors with a differentiated and uncorrelated pool of assets that is unique and can be viewed as a more attractive alternative relative to increasing investor concerns about private market industry exposure to software companies."

"NAV increased to $18.26 from $18.20 per share a year ago, reflecting solid credit performance across our multi-strategy portfolio and our deliberate decision to remain disciplined during an environment of tighter interest coverage and an abundance of capital," said Bruce Spohler, Co-CEO of SLR Investment Corp. "With credit quality top-of-mind today, we are pleased with the fundamentals of the portfolio which sits near the midpoint of our target leverage and is 100% performing. Importantly, at year end, our portfolio has only 2% exposure to software companies and payment-in-kind from amendments represented only 2% of the Company's total investment income in Q4, 2025. Our stable portfolio and available capital positions the company to be active and opportunistic in 2026."

FINANCIAL HIGHLIGHTS FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2025:

At December 31, 2025:

Investment portfolio fair value: $2.1 billion | Comprehensive Investment Portfolio fair value:(1) $3.3 billion

Net assets: $996.0 million or $18.26 per share

Leverage: 1.14x net debt-to-equity

Operating Results for the Quarter Ended December 31, 2025:

Net investment income: $21.6 million or $0.40 per share

Net realized and unrealized gain: $3.5 million or $0.06 per share

Net increase in net assets from operations: $25.1 million or $0.46 per share

Operating Results for the Year Ended December 31, 2025:

Net investment income: $86.9 million or $1.59 per share

Net realized and unrealized gain: $5.6 million or $0.10 per share

Net increase in net assets from operations: $92.5 million or $1.70 per share

Comprehensive Investment Portfolio Activity(2) for the Quarter and Year Ended December 31, 2025:

Investments made during the quarter: $461.8 million

Investments prepaid and sold during the quarter: $444.7 million

------------------------------------------------------------------------------------------------------

Investments made during the year: $1,837.2 million

Investments prepaid and sold during the year: $1,641.3 million

(1) The Comprehensive Investment Portfolio for the quarter ended December 31, 2025 is comprised of SLRC's investment portfolio and SLR Credit Solutions' ("SLR-CS") portfolio, SLR Equipment Finance's ("SLR-EF") portfolio, Kingsbridge Holdings, LLC's ("KBH") portfolio, SLR Business Credit's ("SLR-BC") portfolio, SLR Healthcare ABL's ("SLR-HC ABL") portfolio owned by the Company (collectively, the Company's "Commercial Finance Portfolio Companies"), and the senior secured loans held by the SLR Senior Lending Program LLC ("SSLP") attributable to the Company, and excludes the Company's fair value of the equity interests in SSLP and the Commercial Finance Portfolio Companies and also excludes SLRC's loans to KBH, SLR-EF, and SLR HC ABL.

(2) Comprehensive Investment Portfolio activity for the quarter and year ended December 31, 2025, includes investment activity of the Commercial Finance Portfolio Companies and SSLP attributable to the Company.

Comprehensive Investment Portfolio

Portfolio Activity

During the three months ended December 31, 2025, SLRC had Comprehensive Investment Portfolio originations of $461.8 million and repayments of $444.7 million across the Company's four investment strategies:

 
                 For the Quarter Ended December 31, 2025 
                                   ($mm) 
 
                                                                 Total 
                                                             Comprehensive 
                                                     Life     Investment 
                Sponsor    Asset-based  Equipment   Science    Portfolio 
 Asset Class   Finance(1)  Lending(2)   Finance(3)  Finance    Activity 
Originations     $36.6       $247.1       $152.2     $25.9      $461.8 
Repayments / 
 Amortization    $29.4       $233.7       $122.1     $59.5      $444.7 
Net Portfolio 
   Activity       $7.2        $13.4       $30.1     ($33.6)      $17.1 
=============  ==========  ===========  ==========  =======  ============= 
 

During the year ended December 31, 2025, SLRC had Comprehensive Investment Portfolio originations of $1,837.2 million and repayments of $1,641.3 million across the Company's four investment strategies:

 
                   For the Year Ended December 31, 2025 
                                   ($mm) 
 
                                                                 Total 
                                                             Comprehensive 
                                                     Life     Investment 
                Sponsor    Asset-based  Equipment   Science    Portfolio 
 Asset Class   Finance(1)  Lending(2)   Finance(3)  Finance    Activity 
Originations     $136.7     $1,085.8      $533.7     $81.0     $1,837.2 
Repayments / 
 Amortization    $212.0      $724.5       $598.2    $106.6     $1,641.3 
Net Portfolio 
   Activity     ($75.3)      $361.3      ($64.5)    ($25.6)     $195.9 
=============  ==========  ===========  ==========  =======  ============= 
 

(1) Sponsor Finance refers to cash flow loans to sponsor-owned companies including cash flow loans held in SSLP attributable to the Company.

(2) Includes SLR-CS, SLR-BC and SLR-HC ABL's portfolios, as well as asset-based loans on the Company's balance sheet.

(3) Includes SLR-EF's portfolio and equipment financings on the Company's balance sheet and Kingsbridge Holdings' $(KBH)$ portfolio.

Comprehensive Investment Portfolio Composition

The Comprehensive Investment Portfolio is diversified across approximately 880 unique issuers, operating in 110 industries, and resulting in an average exposure of $3.8 million or 0.1% per issuer. As of December 31, 2025, 97.8% of the Company's Comprehensive Investment Portfolio was invested in senior secured loans of which 94.8% was held in first lien senior secured loans. Second lien cash flow exposure was 0.0% and second lien ABL exposure was 3.0% of the Comprehensive Investment Portfolio as of December 31, 2025.

SLRC's Comprehensive Investment Portfolio composition by asset class as of December 31, 2025 was as follows:

 
        Comprehensive Investment                            Weighted Average 
          Portfolio Composition                                   Asset 
             (at fair value)                   Amount         Yield((5) () 
----------------------------------------                    ---------------- 
                                           ($mm)      % 
----------------------------------------  --------  ------  ---------------- 
Senior Secured Investments 
----------------------------------------  --------  ------  ---------------- 
Cash Flow Loans (Sponsor Finance)(1)       $477.8    14.5%              9.8% 
Asset-Based Loans(2)                      $1,484.2   44.9%             12.6% 
Equipment Financings(3)                   $1,086.7   32.9%             10.9% 
Life Science Loans                         $182.2     5.5%             12.3% 
Total Senior Secured Investments          $3,230.9   97.8%             11.6% 
Equity and Equity-like Securities          $73.7      2.2% 
----------------------------------------  --------  ------ 
Total Comprehensive Investment Portfolio  $3,304.6  100.0% 
========================================  ========  ====== 
Floating Rate Investments(4)              $2,121.1   65.0% 
========================================  ========  ====== 
First Lien Senior Secured Loans           $3,131.6   94.8% 
========================================  ========  ====== 
Second Lien Senior Secured 
 Asset-Based Loans                         $99.3      3.0% 
========================================  ========  ====== 
Second Lien Senior Secured 
 Cash Flow Loans                            $0.0      0.0% 
========================================  ========  ====== 
 

(1) Includes cash flow loans held in the SSLP attributable to the Company and excludes the Company's equity investment in SSLP.

(2) Includes SLR-CS, SLR-BC, and SLR-HC ABL's portfolios, as well as asset-based loans on the Company's balance sheet, and excludes the Company's equity investments in each of SLR-CS, SLR-BC, and SLR-HC ABL.

(3) Includes SLR-EF's portfolio and equipment financings on the Company's balance sheet and Kingsbridge Holdings' (KBH) portfolio. Excludes the Company's equity and debt investments in each of SLR-EF and KBH.

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