Palmer Square Capital BDC (PSBD) Q1 2026 earnings summary

Executive summary

• Total investment income for Q1 2026 was $26.2 million, down from $31.2 million in Q1 2025, with net investment income of $11.0 million ($0.35 per share) and NAV per share declining to $13.30 from $14.85 at year-end 2025.

• Paid a $0.37 per share total dividend for Q1 2026, including supplemental and spillover income, and declared a Q2 2026 base dividend of $0.36 per share with a supplemental expected.

• Portfolio comprised 283 investments across 214 companies, diversified across 44 industries, with 98% in floating rate debt and largest exposures to software, healthcare, and IT services.

• Dividend yield stood at 11.1% on NAV and 13.5% on stock price as of April 30, 2026.

• Portfolio focused on liquid senior secured debt, with transparency through monthly NAV disclosures.

Financial highlights

• Net investment income was $11.0 million ($0.35 per share), compared to $12.9 million ($0.40 per share) in Q1 2025.

• Total net realized and unrealized losses were $48.3 million, up from $21.3 million in Q1 2025.

• NAV per share declined to $13.30 from $14.85 at year-end 2025.

• Debt-to-equity ratio increased to 1.70x from 1.54x at Q4 2025.

• Total assets as of March 31, 2026, were $1.2 billion; net assets were $413.8 million.

Outlook and guidance

• Board confirmed a Q2 2026 base dividend of $0.36 per share, with supplemental distributions expected.

• Management is optimistic about increased activity, improved risk-adjusted spreads, and portfolio stability in Q2 and beyond.

• Cautiously optimistic on market stabilization and more attractive entry points, especially in secondary loans.

• Management expects continued volatility in interest rates and macroeconomic conditions to impact yields and valuations.

• Focus remains on maintaining asset quality and prudent capital deployment.