Crescent Capital BDC (CCAP) Q1 2025 earnings summary

Executive summary

• Net investment income for Q1 2025 was $16.6 million ($0.45 per share), down from $20.5 million ($0.55 per share) in Q4 2024 and $23.4 million ($0.63 per share) in Q1 2024, mainly due to lower base rates, runoff of one-time items, and reduced dividend income.

• Net income per share for Q1 2025 was $0.11, compared to $0.27 in the previous quarter.

• Net asset value (NAV) per share was $19.62 as of March 31, 2025, down from $19.98 at December 31, 2024.

• Portfolio consisted of 191 companies across 20 industries, valued at $1.62 billion, with 91% in first-lien loans and 99% sponsor-backed.

• Declared a Q2 2025 regular dividend of $0.42 per share and a $0.05 per share special dividend, maintaining a long streak of regular dividend coverage.

Financial highlights

• NII per share declined $0.10 sequentially, primarily from lower base rates ($0.04 impact), runoff of one-time income ($0.03), lower Logan JV dividend ($0.03), and non-accruals ($0.02).

• Net realized and unrealized losses per share were ($0.34) in Q1 2025, compared to ($0.28) in Q4 2024.

• Weighted average yield of income-producing securities at cost decreased to 10.4%.

• Weighted average stated interest rate on borrowings was 6.36% (6.17% pro forma for SBB facility amendment).

• Portfolio net interest margin was 10.0% in Q1 2025.

Outlook and guidance

• Near-term earnings expected to reflect current baseline, with potential tailwinds from SPV facility repricing and full impact of portfolio at target leverage.

• No Q2 supplemental dividend due to measurement test cap exceeding 50% of excess available earnings.

• Special dividends of $0.05 per share scheduled for June and September 2025.

• Management expects general and administrative expenses to remain stable or decline as a percentage of assets during growth.

• Logan JV dividend income expected to decline and become lumpier as the CLO deleverages over the next 24 months.