MidCap Financial Investment (MFIC) investor relations material

Executive summary

• Net investment income for Q2 2026 was $32.8 million ($0.40 per share), up from $0.38 in Q1 2026, despite portfolio losses from credit weakness in select positions.

• Net asset value (NAV) per share declined 3.2% to $13.37 from $13.82 at March 31, 2026, mainly due to a $50.3 million net loss concentrated in a few positions and share repurchases.

• Share repurchases totaled 2.76 million shares at an average price of $11.58, fully utilizing the buyback program and generating $0.07 per share of NAV accretion.

• Board declared a $0.31 per share dividend payable September 24, 2026.

• Portfolio fair value at quarter end was $2.77 billion, invested across 229 companies in 45 industries.

Financial highlights

• Total investment income for Q2 2026 was $68.2 million, down from $81.2 million in Q2 2025, due to a smaller portfolio and lower yields.

• Net expenses declined 5.6% to $35.5 million, mainly from lower interest and management fees.

• Net loss of $50.3 million ($(0.61) per share) eliminated the incentive fee for the quarter.

• Net leverage ratio was 1.54x, with a target to reduce to the low 1.4x range.

• Debt-to-equity ratio was 1.58x as of June 30, 2026.

Outlook and guidance

• Capital allocation will prioritize deleveraging over stock repurchases, with leverage targeted in the low 1.4x range.

• Management expects continued pressure on yields and portfolio valuations due to market-wide spread widening and credit issues in select positions.

• Liquidity expected to improve as leverage is reduced, and current liquidity and borrowing capacity are sufficient for operational needs.

• No assurance was given that the $0.31 per share dividend will be maintained in future quarters.

• Management remains cautious on M&A activity but sees a healthy pipeline for potential repayments and portfolio adjustments.