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Eagle Point Credit Company (ECC) investor relations material
Eagle Point Credit Company Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
CLO equity faced challenging market conditions in 2025, with spread compression and negative sentiment impacting returns, but portfolio management and active resets/refinancings helped mitigate headwinds.
GAAP return on common equity was -14.6% for 2025, outperforming the market median CLO equity return of -15% as estimated by Nomura.
Increased exposure to non-CLO credit assets, deploying $184 million in Q4 and raising non-CLO credit assets to 26% of the portfolio.
Strategic initiatives included supporting U.S. and European CLO platforms, launching a joint venture for regulatory capital relief, and announcing a $100 million common stock repurchase program.
Financial highlights
NAV per share declined to $5.70 as of December 31, down from $7.00 on September 30.
Q4 net investment income (NII) was $0.23 per share; NII less realized losses was -$0.26 per share, with realized losses of $0.49 per share.
Q4 GAAP net loss attributable to common stock was $110 million ($0.84 per share), with a full-year net loss of $134.4 million.
Recurring cash flows increased to $80 million ($0.61 per share) in Q4, with $322.3 million received for the full year.
Total cash distributions paid in 2025 were $1.68 per common share.
Outlook and guidance
Attractive capital deployment opportunities are expected in both CLO equity and other credit asset classes in 2026.
Management estimates NAV per share between $5.44 and $5.54 as of January 31, 2026.
Resetting the distribution rate is intended to retain more capital for investments and support a stable or growing NAV, with Q2 2026 monthly distributions set at $0.06 per share.
Credit quality and expense trends are expected to be similar to 2025, with continued spread compression and a stable default environment.
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