FS KKR Capital (FSK) Q4 2025 earnings summary

Executive summary

• Originated $5.6 billion in new investments, mainly first lien and asset-based finance, in 2025.

• Net investment income for Q4 2025 was $135 million ($0.48 per share), down from $159 million ($0.57 per share) in Q3 2025.

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

• Paid total distributions of $2.80 per share for 2025; Q1 2026 distribution 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.

Financial highlights

• Q4 2025 total investment income: $348 million, down from $373 million in Q3.

• Adjusted net investment income for Q4 2025 was $0.52 per share, down from $0.57 in Q3.

• Q4 total expenses: $213 million; interest expense: $110 million; management fees: $50 million.

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

• Total investments at fair value were $13.0 billion at year-end 2025, with 62.4% in senior secured securities.

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.

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

• Recurring Q1 2026 interest income expected at $226 million; dividend income from JV at $60 million.