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Monroe Capital (MRCC) investor relations material
Monroe Capital Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Net asset value per share declined to $8.29 at June 30, 2025, from $8.85 at December 31, 2024, reflecting net losses and distributions.
Announced definitive merger agreement with Horizon Technology Finance Corporation and asset sale to Monroe Capital Income Plus Corporation, both expected to close in Q4 2025, subject to approvals.
Management expects the merger to unlock value for shareholders via a NAV-for-NAV structure and provide long-term upside through participation in a larger, more scaled entity.
Financial highlights
Total investment income for Q2 2025 was $9.9M, down from $15.6M in Q2 2024; six-month income was $21.5M, down from $30.8M year-over-year.
Net investment income for Q2 2025 was $3.3M, or $0.15 per share, down from $6.6M in Q2 2024 and $4.1M in Q1 2025; six-month net investment income was $7.4M, down from $12.0M.
Net decrease in net assets from operations was $1.9M for Q2 2025 and $1.3M for the six months, compared to increases of $3.3M and $6.5M in 2024.
Net asset value declined to $179.6M, or $8.29 per share, from $186.9M, or $8.63 per share, sequentially.
Paid a quarterly dividend of $0.25 per share, representing an annualized yield of 14.6%, with distributions totaling $10.8M for the first half of 2025.
Outlook and guidance
The merger and asset sale are expected to close in Q4 2025, subject to stockholder and regulatory approvals.
Management anticipates meaningful synergies and operating leverage from the merger, with expectations of enhanced shareholder value and long-term growth.
Management expects continued competitive pressure in middle-market lending, with potential for increased default rates if macroeconomic conditions soften.
Forward-looking statements highlight risks related to transaction completion, synergies, and market conditions.
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