Nuveen Churchill Direct Lending (NCDL) Q2 2025 earnings summary

Executive summary

• Net investment income for Q2 2025 was $0.46 per share, down from $0.53 in Q1, with a net increase in net assets from operations of $0.32 per share and NAV per share at $17.92 as of June 30, 2025.

• Paid a regular distribution of $0.45 per share for Q2 2025 and declared the same for Q3 2025.

• Portfolio remains highly diversified with 207 companies across 26 industries, primarily first lien debt, and top 10 holdings representing 13.6% of fair value.

• Non-accrual rate was low at 0.2% of fair value, with no new non-accruals during the quarter.

• Completed a share repurchase program, buying back 5.9 million shares at a discount to NAV for $99.3–$100 million.

Financial highlights

• Total investment income for Q2 2025 was $53.1 million, slightly down from $53.6 million in Q1 and $55.1 million in Q2 2024.

• Net expenses rose to $30.3 million from $24.1 million year-over-year, mainly due to higher interest, management, and incentive fees.

• Net realized and unrealized losses on investments were $(6.8) million for Q2 2025, reflecting restructuring and underperformance in certain portfolio companies.

• Net asset value per share was $17.92 at June 30, 2025, down from $17.96 at March 31 and $18.18 at December 31, 2024.

• Portfolio fair value was $2.0 billion at quarter end.

Outlook and guidance

• Management expects to maintain earnings at current levels, supported by redeployment of repayments into higher-yielding middle market loans.

• Pipeline is robust, with deal flow and quality at multi-year highs; optimism for strong activity into the fall.

• Spreads are expected to remain in the 450–475 basis point range, with little further tightening anticipated.

• Management remains focused on disciplined underwriting and sourcing high-quality investments in resilient, service-oriented sectors.

• Continued focus on disciplined investment in private equity-backed U.S. middle market companies.