Sound Point Meridian (SPMC) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 NII was $5.84M, or $0.28/share, versus $0.60/share in distributions; GAAP net loss was $4.11M, or $0.19/share.

• Common NAV fell to $9.09/share at Sep. 30 from $9.88 at June 30, reflecting realized losses and distributions above NII, partly offset by unrealized appreciation.

• Portfolio spanned 113 CLOs, 32 managers and 1,566 underlying senior secured loans.

Financial highlights

• Investment income was $12.84M and net expenses were $7.00M, producing $5.84M of NII; realized losses were $13.51M and unrealized gains were $3.56M.

• Quarter-end total assets were $360.4M, net assets $192.5M and portfolio fair value $355.5M; cash liquidity was ~$4.5M and leverage was 46.2%.

• October month-end NAV was reported at $8.46/share; Oct. 31 estimated NAV was $8.41–$8.51/share.

Outlook and guidance

• Monthly common distributions of $0.13/share were declared for Oct.–Dec. 2026 and Jan.–Mar. 2027, unchanged from Q4 2026.

• NII/share rose from ~$0.08 monthly two quarters earlier to just above $0.09 in Q2 and ~$0.11 in October; management aims to cover the $0.13 monthly distribution through NII.

• Management planned to assess the six-month fee waiver with the board in January; priorities included NII growth and cost efficiency.