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Monroe Capital (MRCC) investor relations material
Monroe Capital Q3 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 $7.99 as of September 30, 2025, from $8.85 at December 31, 2024, reflecting lower investment income and realized/unrealized losses.
Net Investment Income for Q3 2025 was $1.8 million ($0.08 per share), with Adjusted NII at $1.9 million ($0.09 per share), both down from the previous quarter.
A merger agreement with Horizon Technology Finance Corporation and an asset sale to Monroe Capital Income Plus Corporation were announced, with closing anticipated in Q1 2026.
The investment portfolio shifted toward higher equity exposure and lower senior secured loan allocation compared to the prior year.
Quarterly dividend of $0.25 per share was paid, supported by accumulated spillover income.
Financial highlights
Total investment income for Q3 2025 was $8.2 million, down from $15.7 million in Q3 2024 and $9.9 million in Q2 2025.
Net investment income for Q3 2025 was $1.8 million ($0.08 per share), compared to $6.5 million ($0.30 per share) in Q3 2024.
Net decrease in net assets from operations was $1.1 million for Q3 2025 and $2.5 million for the nine months ended September 30, 2025.
Distributions to stockholders totaled $0.75 per share for the nine months ended September 30, 2025.
Portfolio's average mark decreased to 88.3% of amortized cost from 88.6% in the prior quarter.
Outlook and guidance
The merger and asset sale are expected to close in the first quarter of 2026, subject to regulatory and stockholder approvals.
Management expects continued competitive pressure in middle-market lending, with potential for increased default rates if macroeconomic conditions soften.
The quarterly dividend is expected to be maintained through the use of spillover income until the merger closes.
Management expects the merger with HRZN to unlock value and provide long-term upside through increased scale and synergies.
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