Sound Point Meridian (SPMC) Q1 25/26 earnings summary

Executive summary

• Net investment income for the quarter was $0.53 per share, totaling $10.8 million, with a net realized loss of ($0.01) per share and distributions paid totaling $0.75 per share.

• NAV per share stood at $18.50 as of June 30, 2025, with total portfolio fair value (excluding cash) at $522.3 million.

• GAAP net income totaled $9.7 million ($0.47 per share) for the quarter.

• The portfolio comprised 86 CLOs, 1,577 unique senior secured loans, and exposure across 26 managers and 30+ industries.

Financial highlights

• Total investment income for the quarter was $19.2 million ($0.94 per share), with total expenses of $8.4 million ($0.41 per share), resulting in net investment income of $10.8 million.

• Realized loss on investments was $0.1 million ($0.01 per share); unrealized loss was $1.0 million ($0.05 per share).

• Distributions of $0.25 per common share were declared for July, August, and September 2025, representing a 16.8% annualized yield based on the June 30 share price.

• Weighted average GAAP yield on CLO equity was 12.9% as of June 30, 2025.

Outlook and guidance

• Actively managed, flexible investment approach focused on relative value and downside protection in the CLO equity space.

• Continued emphasis on deploying capital into new CLO equity investments and refinancing existing liabilities to optimize returns.

• Monthly distribution of $0.25 per share declared for October, November, and December 2025.

• Preferred stock distributions declared for Series A and Series B through December 2025.