Monroe Capital (MRCC) Q4 2025 earnings summary

Executive summary

• Reported fourth quarter 2025 net investment income (NII) of $2.2 million ($0.10 per share) and adjusted NII of $2.3 million ($0.11 per share), with full year 2025 NII of $11.4 million ($0.53 per share) and adjusted NII of $11.6 million ($0.54 per share).

• Net asset value (NAV) declined to $166.5 million ($7.68 per share) at year-end, down from $173.0 million ($7.99 per share) at September 30, 2025.

• Announced a proposed merger with Horizon Technology Finance Corporation (HRZN), anticipated to close near the end of Q1 or early Q2 2026.

• Quarterly dividend of $0.18 per share paid on December 31, 2025; first quarter 2026 distribution set at $0.09 per share.

Financial highlights

• Total investment income for Q4 2025 was $8.2 million, flat sequentially; full year 2025 investment income was $37.9 million, down from $60.5 million in 2024.

• Total expenses for Q4 2025 were $5.9 million, down from $6.4 million in Q3 2025; full year expenses were $26.5 million, down from $36.0 million in 2024.

• Net loss for Q4 2025 was $4.9 million, compared to $3.0 million in Q3 2025; full year net loss was $16.5 million, compared to $14.8 million in 2024.

• Portfolio fair value at year-end was $334.9 million, down from $360.7 million at September 30, 2025.

Outlook and guidance

• Management expects the merger with HRZN to unlock value, provide scale, and offer access to broader funding solutions and potential for higher dividends.

• Dividend adjusted to align with net investment income due to lower base rates and in anticipation of the merger.