Main Street Capital (MAIN) investor relations material

Executive summary

• Achieved strong Q2 2026 operating results with annualized ROE of 18.9%, net investment income of $90.3M ($0.97/share), distributable net investment income of $97.4M ($1.04/share), and a significant increase in NAV per share to $33.92, reflecting platform and portfolio strength.

• Focuses on lower middle market (LMM) and private loan investments, targeting companies with $10M–$150M in revenue and $3M–$20M in EBITDA, and maintains an internally managed structure for cost efficiency.

• Realized a $46M gain from the exit of Centre Technologies, highlighting the success of the LMM strategy.

• Declared regular monthly dividends totaling $0.795/share for Q3 2026 and a supplemental dividend of $0.30/share, with a 3.9% year-over-year increase in regular monthly dividends for Q4 2026.

• Strengthened capital structure and liquidity, positioning for continued portfolio growth and positive outlook.

Financial highlights

• Total investment income for Q2 2026 was $149.6M, up 4% year-over-year, driven by higher interest and fee income, partially offset by lower dividend income.

• Interest income rose by $11.8M (12% year-over-year), while dividend income decreased by $10.4M (28% year-over-year), and fee income increased by $4.3M (81% year-over-year).

• Net realized gains of $33M, primarily from the Centre Technologies exit, and net unrealized appreciation of $32.2M.

• Operating expenses rose by $5.1M year-over-year, mainly due to higher interest and compensation expenses; operating expense ratio improved to 1.3%.

• Net increase in net assets from operations was $147.6M ($1.58/share), up 20% year-over-year.

Outlook and guidance

• Management expects Q3 2026 DNII before taxes of at least $0.97/share, with continued favorable performance and potential for additional supplemental dividends in December 2026.

• Dividend policy aims for consistent annual growth in monthly dividends, with supplemental dividends as DNII exceeds regular payouts.

• AMB expected to drive further growth, especially through private loan strategies, and recent legislation increases SBIC debenture capacity by $125M.

• Investment pipelines for both LMM and private loans are average, with confidence in future opportunities.

• The company expects to continue funding investments through cash, operating cash flows, credit facilities, and future debt/equity issuances.