Fidus Investment (FDUS) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 saw record originations of $213.7 million, driving total 2025 investments to $498.2 million and net originations to $210.2 million, with portfolio fair value reaching $1.3 billion across 97 companies.

• Adjusted net investment income (NII) rose 5.1% year-over-year to $19.4 million in Q4, with per-share adjusted NII at $0.52, exceeding the base dividend.

• Net asset value increased 13.2% to $741.9 million, or $19.55 per share, as of December 31, 2025.

• Focus on stable dividends, capital preservation, and NAV growth, with a diversified portfolio and disciplined asset management.

• Consistent outperformance versus BDC peers, with a historical median GAAP ROE of 12.5% since IPO.

Financial highlights

• Total investment income for Q4 2025 was $42.2 million, up $4.9 million sequentially and 12.5% year-over-year; full year 2025 investment income was $155.9 million.

• Adjusted net investment income for Q4 was $19.4 million ($0.52 per share); for the year, $75.6 million ($2.13 per share).

• Paid total dividends of $2.15 per share in 2025, with $1.72 in regular and $0.43 in supplemental dividends.

• Weighted average effective yield on debt investments was 12.6% at year-end.

• NAV per share at $19.55 at year-end 2025, a 35.2% premium to IPO level.

Outlook and guidance

• Q1 2026 expected to see more modest deal flow and origination growth compared to Q4, with activity anticipated to pick up later in the year.

• Management expects continued deal activity in 2026, leveraging sponsor relationships and industry knowledge to build the portfolio.

• Lower middle market remains attractive due to limited traditional capital access and ongoing need for investment capital.

• Continued focus on capital preservation, disciplined underwriting, and proactive risk management.

• Board declared a Q1 2026 dividend of $0.52 per share, including a $0.09 supplemental dividend.