Palmer Square Capital BDC (PSBD) Q2 2025 earnings summary

Executive summary

• Deployed $92.4 million in Q2 2025, with total investment income of $31.7 million and net investment income of $13.8 million ($0.43 per share), reflecting a year-over-year decline due to lower rates.

• Net asset value per share was $15.68 as of June 30, 2025, down from $15.85 at March 31, 2025, and $16.50 at December 31, 2024.

• Paid a $0.42 per share dividend in Q2, including a $0.06 supplemental; Q3 2025 base dividend of $0.36 per share declared, with a supplemental dividend expected in September.

• Portfolio remains highly diversified, focused on senior secured, floating rate, and liquid credits, with 206 companies across 39 industries.

• Enhanced transparency with monthly NAV disclosures and a fee structure based on net assets.

Financial highlights

• Total investment income for Q2 2025 was $31.7 million, down from $36.5 million year-over-year; net investment income was $13.8 million ($0.43/share) vs. $15.8 million ($0.48/share) last year.

• Net realized and unrealized losses totaled $6.7 million, an improvement from $10.4 million in Q2 2024.

• Total assets as of June 30, 2025, were $1.3 billion; net assets were $505.2 million.

• Portfolio at fair value was $1.28 billion, with 263 investments in 206 companies.

• Debt-to-equity ratio was 1.51x at quarter-end, with available liquidity of $253.5 million.

Outlook and guidance

• Management expects continued pressure on investment income due to lower rates but remains optimistic about the investment pipeline and credit quality.

• Portfolio positioned conservatively amid tight spreads and macro/geopolitical uncertainty, with a focus on relative value and prudent capital allocation.

• Q3 2025 base dividend of $0.36 per share declared; supplemental dividend to be announced in September.