FS KKR Capital (FSK) Q4 2025 earnings summary

Executive summary

• Net investment income for Q4 2025 was $135 million ($0.48 per share), down from $159 million ($0.57 per share) in Q3 2025; full-year 2025 net investment income was $2.34 per share, down from $2.90 in 2024.

• Net asset value per share declined to $20.89 at year-end 2025 from $21.99 at the end of Q3 2025 and $23.64 at year-end 2024.

• Paid total distributions of $2.80 per share for 2025, with Q4 2025 distribution at $0.70 per share and Q1 2026 declared at $0.48 per share (base $0.45, supplemental $0.03).

• Portfolio comprised 232 companies across 23 industries, with top 10 holdings representing 19% of fair value.

• Focus for 2026 is on addressing underperforming assets, increasing portfolio quality, and maintaining liquidity.

Financial highlights

• Q4 2025 net investment income: $0.48 per share; adjusted NII: $0.52 per share.

• NAV per share fell from $21.99 to $20.89 quarter-over-quarter.

• Q4 total investment income: $348 million, down from $373 million in Q3.

• Net realized and unrealized losses per share were ($0.89) in Q4 2025, compared to $0.19 in Q3 2025.

• Total investments at fair value were $13.0 billion at year-end 2025.

Outlook and guidance

• 2026 dividend yield expected to be around 9% of NAV, down from prior 10% estimate due to higher nonaccruals.

• Q1 2026 GAAP NII guidance: ~$0.45 per share; adjusted NII: ~$0.44 per share.

• Management aims to stabilize challenged investments in 2026 and focus on high-quality new originations, primarily in first lien senior secured structures.

• Management expects a more lender-friendly environment in 2026.

• Dividend yield on NAV per share was 9.2% and on market value was 14.8% as of February 20, 2026.