Palmer Square Capital BDC (PSBD) investor relations material

Executive summary

• Deployed $72.4 million of capital in Q2 2026, generating $27.3 million in total investment income and $12 million in net investment income, or $0.39 per share.

• Paid a $0.39 per share total dividend for Q2 2026, including a $0.03 supplemental, and declared a $0.36 per share regular distribution for Q3 2026.

• Portfolio comprised 282 investments across 206 companies, with a fair value of $1.1 billion as of June 30, 2026.

• Expanded share repurchase program to $30 million, with $4 million utilized in Q2 and $517,882 shares repurchased in the first half of 2026.

• Maintained a disciplined capital allocation strategy, focusing on long-term shareholder value and risk-adjusted returns.

Financial highlights

• Total investment income for Q2 2026 was $27.3 million, down from $31.7 million in Q2 2025.

• Net investment income was $12 million ($0.39 per share), compared to $13.8 million ($0.43 per share) in Q2 2025.

• NAV per share at June 30, 2026, was $13.21, down from $13.30 at March 31, 2026, and $15.68 at June 30, 2025.

• Total assets were $1.1 billion; total net assets $406.2 million as of June 30, 2026.

• Debt-to-equity ratio was 1.71x at quarter-end, up slightly from 1.70x in Q1.

Outlook and guidance

• Board declared a Q3 2026 base dividend of $0.36 per share; supplemental dividend to be determined.

• Management expects greater earnings power beginning in Q4 2026 and into 2027 due to improved liability structure.

• Management remains constructive on portfolio outlook, expecting improved refinancing activity and pricing transparency.

• Focus remains on prudent underwriting and identifying attractive opportunities as market activity recovers.

• Recent reset of CLO notes and reduction in credit facility size are expected to lower future interest expenses.