Neostellar (NSLR) Q1 2026 earnings summary

Executive summary

• Net asset value (NAV) per share rose to $14.24 as of March 31, 2026, up from $8.09 at year-end 2025, marking a 76% quarter-over-quarter increase, the largest in company history.

• Net assets totaled $361.6 million at quarter-end, up from $205.3 million at the end of the previous quarter.

• Portfolio strength driven by significant unrealized appreciation in high-growth, venture-backed private companies, especially in AI and technology infrastructure, with major holdings like WHOOP and OpenAI.

• Board approved transition to externally managed structure via Neostellar Advisors LLC, a joint venture with Magnetar, pending shareholder approval.

• Magnetar to invest $20 million in the company as part of the externalization, with management continuity and no incentive fees on pre-existing investments.

Financial highlights

• Net asset value at quarter end was $361.6 million, or $14.24 per share, up from $8.09 per share at Q4 2025.

• Net change in unrealized appreciation was $158.7 million ($6.25 per share) for Q1 2026, mainly due to revaluations of WHOOP, ARK Type One Deep Ventures Fund LLC, and IH10, LLC.

• Net investment loss was $4.0 million ($0.16 per share) for Q1 2026.

• Ended quarter with $46 million in liquid assets, including $43.3 million in cash.

• Sold 440,246 shares of GrabAGun Digital Holdings for $1.4 million in proceeds and $891,000 realized gain.

Outlook and guidance

• Focus remains on disciplined investment in high-growth, venture-backed private companies, especially in AI and technology infrastructure.

• Externalization expected to enhance sourcing, diligence, and platform scale, positioning for future growth and annual expense savings of 0.77% of average total assets.

• Magnetar's $20 million capital commitment is expected to support future investment activity.

• No incentive fees will be paid on realized gains from the existing portfolio under the new advisory agreement.

• Additional $15 million commitment to TensorWave, Inc. pending satisfaction of certain conditions.