Pearl Diver Credit Company (PDCC) investor relations material

Executive summary

• Q1 2026 results were impacted by $25.1 million in unrealized losses, resulting in a net loss of $22.5 million ($3.28/share), while recurring cash flows and investment income remained strong at $4.8 million ($0.70/share).

• The portfolio is highly diversified, with 60 CLO equity positions managed by 33 managers and exposure to over 1,400 obligors across 30+ sectors.

• Nearly all investments remain in their reinvestment periods, providing flexibility to manage exposures and sector risks.

• Dividend policy was realigned to near-term net investment income, with monthly dividends reduced from $0.22 to $0.13 per share for June–August 2026.

• Management continues to focus on proactive, relative value-driven CLO portfolio management and capital preservation.

Financial highlights

• Investment income for Q1 2026 was $4.8 million ($0.70/share), down from $5.7 million in the prior quarter.

• Net investment income was $2.6 million ($0.39/share); net loss for the quarter was $22.5 million ($3.28/share), driven by $25.1 million in net unrealized losses.

• Recurring cash flows totaled $10.5 million ($1.53/share), exceeding distributions and expenses by $0.56/share.

• Net asset value per share declined to $10.48 from $14.42 at year-end, with total net assets of $72 million.

• Issued 34,970 shares via ATM program for net proceeds of $0.5 million.

Outlook and guidance

• CLO equity is expected to generate attractive cash flows, supported by active collateral management and disciplined credit selection.

• Dividend per share will be reduced from $0.22 to $0.13 for June–August to align with near-term net investment income and preserve capital for new opportunities.

• Management remains constructive on CLOs and will deploy capital selectively as market conditions evolve.

• Emphasis on capital preservation, opportunistic investing, and agile portfolio adjustments in response to market conditions.

• Portfolio management leverages machine learning-driven analytics and risk management.