Sound Point Meridian (SPMC) Q2 25/26 earnings summary

Executive summary

• Net investment income for the quarter was $0.54 per share, with a net realized loss of ($0.05) per share and distributions paid totaling $0.75 per share.

• Net asset value (NAV) per share was $16.91 as of September 30, 2025, with an unaudited estimate of $16.17 as of October 31, 2025.

• Net investment income reached $11.0 million ($0.54 per share) for the quarter ended September 30, 2025.

• GAAP net loss totaled $17.2 million ($0.84 per share) for the quarter, driven by $27.4 million in unrealized losses.

• The portfolio remains diversified across 94 CLOs managed by 27 managers, with exposure to 1,627 unique senior secured loans across 30+ industries.

Financial highlights

• Total investment income for the quarter was $20.2 million ($0.99 per share), with total expenses of $9.2 million ($0.45 per share), resulting in net investment income of $11.0 million.

• Net income for the quarter was a loss of ($17.2) million, primarily due to unrealized losses of ($27.4) million.

• NAV per share declined from $18.50 in the prior quarter to $16.91.

• Leverage ratio increased to 34.9% as of quarter end.

• Weighted average effective yield of the CLO equity portfolio was 12.0% as of September 30, 2025.

Outlook and guidance

• Declared distributions of $0.25 per common share for October, November, and December 2025, and for January, February, and March 2026.

• Preferred stock distributions declared for Series A ($0.16667) and Series B ($0.1640625) for January, February, and March 2026.

• Dividend yield as of September 30, 2025, was 17.3%.