Q3 FY2026
Filed Nov 9, 2026Crescent BDC reports Q3 2026 net investment income of $0.37 per share and net increase in net assets of $0.27 per share, NAV at $17.72, and announces a $50 million repurchase program
Quarter-on-quarter investment income and net investment income rose and the quarter returned to a positive net increase in net assets, but NAV per share fell from $17.82 to $17.72 and from $19.28 a year earlier, net investment income is well below the prior-year quarter, and the nine-month net decrease in net assets was $(8,646) thousand against a prior-year nine-month increase of $26,019 thousand.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total investment income (three months ended Sep 30, 2026)GAAP | $36.9M | – | – |
| Interest income, including amortization of fees, OID and prepayment fees (three months ended Sep 30, 2026)GAAP | $35.6M | – | – |
| Dividend income (three months ended Sep 30, 2026)GAAP | $900K | – | – |
| Other income (three months ended Sep 30, 2026)GAAP | $400K | – | – |
| Total expenses including income and excise taxes (three months ended Sep 30, 2026)GAAP | $23.2M | – | – |
| Total expenses (three months ended Sep 30, 2026)GAAP | $22.96M | – | – |
| Interest and other debt financing costs (three months ended Sep 30, 2026)GAAP | $15.05M | – | – |
| Management fees (three months ended Sep 30, 2026)GAAP | $3.99M | – | – |
| Income based incentive fees (three months ended Sep 30, 2026)GAAP | $2.4M | – | – |
| Net expenses (three months ended Sep 30, 2026)GAAP | $22.96M | – | – |
| Provision for income and excise taxes (three months ended Sep 30, 2026)GAAP | $238K | – | – |
| Net investment income (three months ended Sep 30, 2026)GAAP | $13.7M | – | – |
| Net investment income per share (three months ended Sep 30, 2026)GAAP | $0.37 | – | – |
| Net realized gains (losses), net of taxes (three months ended Sep 30, 2026)GAAP | −$2.1M | – | – |
| Net realized gains (losses) per share, net of taxes (three months ended Sep 30, 2026)GAAP | $(0.06) | – | – |
| Net change in unrealized gains (losses), net of taxes (three months ended Sep 30, 2026)GAAP | −$1.5M | – | – |
| Net change in unrealized gains (losses) per share, net of taxes (three months ended Sep 30, 2026)GAAP | $(0.04) | – | – |
| Net realized and unrealized gains (losses) on investments (three months ended Sep 30, 2026)GAAP | −$3.58M | – | – |
| Net increase (decrease) in net assets resulting from operations (three months ended Sep 30, 2026)GAAP | $10.1M | – | – |
| Net increase (decrease) in net assets resulting from operations per share (three months ended Sep 30, 2026)GAAP | $0.27 | – | – |
| Total investment income (nine months ended Sep 30, 2026)GAAP | $111.1M | – | – |
| Total expenses (nine months ended Sep 30, 2026)GAAP | $69.00M | – | – |
| Interest and other debt financing costs (nine months ended Sep 30, 2026)GAAP | $43.66M | – | – |
| Net investment income (nine months ended Sep 30, 2026)GAAP | $42.28M | – | – |
| Net investment income per share (nine months ended Sep 30, 2026)GAAP | $1.15 | – | – |
| Net realized and unrealized gains (losses) on investments (nine months ended Sep 30, 2026)GAAP | −$50.73M | – | – |
| Net increase (decrease) in net assets resulting from operations (nine months ended Sep 30, 2026)GAAP | −$8.65M | – | – |
| Net increase (decrease) in net assets resulting from operations per share (nine months ended Sep 30, 2026)GAAP | $(0.23) | – | – |
| Investments, at fair value (as of Sep 30, 2026)GAAP | $1.56B | – | – |
| Total assets (as of Sep 30, 2026)GAAP | $1.60B | – | – |
| Total net assets (as of Sep 30, 2026)GAAP | $652.9M | – | – |
| Net asset value per share (as of Sep 30, 2026)GAAP | $17.72 | – | – |
| Regular distributions paid per share (three months ended Sep 30, 2026)other | $0.34 | – | – |
| Special distributions paid per share (three months ended Sep 30, 2026)other | $0.03 | – | – |
| Weighted average yield on income producing securities (at cost) (three months ended Sep 30, 2026)other | 9.6% | – | – |
| Percentage of debt investments at floating rates (as of Sep 30, 2026)other | 98.2% | – | – |
Capital returns
- On November 5, 2026, the Board authorized a share repurchase program of up to $50 million of common stock, to be executed by an independent third-party broker under a Rule 10b5-1 trading plan, subject to the plan's parameters and applicable regulatory requirements.
- Sun Life plans to purchase up to an additional $25 million of the Company's common stock in the open market through an independent third-party broker under a Rule 10b5-1 trading plan.
- The Board declared a fourth quarter 2026 regular cash dividend of $0.34 per share, to stockholders of record as of December 31, 2026, payable on January 15, 2027.
- The third and final previously announced $0.03 per share special dividend will be paid on December 15, 2026, to stockholders of record as of November 30, 2026.
- Regular distributions paid per share were $0.34 in the quarter ended September 30, 2026, against $0.42 in the prior quarter and $0.42 in the prior-year quarter, as printed in the Selected Financial Highlights table.
What drove it
- The Company states that the modest increase in total investment income was primarily driven by higher recurring interest income from investments due to higher benchmark rates during the quarter.
- The Company states that the decrease in dividend income, to $0.9 million from $1.2 million, primarily reflected lower distributions from the Company's Logan JV investment.
- Interest income includes accelerated OID amortization of $0.5 million for the quarter ended September 30, 2026 and $0.2 million for the quarter ended June 30, 2026, related to investment repayments, as stated by the Company.
- Net income-based incentive fees were $2,400 thousand in the quarter, against $3,586 thousand in the prior-year quarter, and the nine-month income based incentive fees waiver was $(1,441) thousand, against $(67) thousand in the prior-year nine months, as printed in the Statements of Operations.
- Net realized and unrealized losses on investments were $(3,577) thousand for the quarter and $(50,727) thousand for the nine months, as printed in the Statements of Operations.
Concerns
- Net investment income of $13.7 million is below the prior-year quarter's $16.9 million and the per-share figure of $0.37 is below $0.46, while total investment income of $36.9 million is below $41.4 million.
- NAV per share fell to $17.72 from $17.82 in the prior quarter and $19.10 at December 31, 2025, and total net assets fell to $652.9 million from $714.1 million a year earlier.
- Net realized losses were $(17.7) million in the June quarter and $(2.1) million in the September quarter, and the nine-month realized and unrealized loss on investments was $(50,727) thousand.
- Net increase in net assets from operations was negative for the nine months ($(8,646) thousand), against a positive $26,019 thousand in the prior-year nine months.
- Regular distributions paid per share were $0.34 in the quarter, against $0.42 in both the prior quarter and the prior-year quarter, as printed in the table.
- Unrealized depreciation on interest rate swaps was $6,304 thousand at September 30, 2026, against nil at December 31, 2025, as printed in the balance sheet.
- Debt outstanding rose to $909,275 thousand from $873,761 thousand at December 31, 2025, while net assets declined, and the net debt-to-equity ratio is 1.36x.
What to watch
- Whether the $50 million repurchase program and the additional $25 million Sun Life open-market purchase plan are executed, and at what pace, as disclosed in subsequent filings.
- The trajectory of net investment income per share against the $0.34 regular dividend declared for the fourth quarter of 2026.
- Further net realized losses, given the $(17.7) million realized loss in the June quarter and the nine-month realized losses in the Statements of Operations.
- Net asset value per share against $17.72 at September 30, 2026, and the rate of change in net unrealized depreciation.
- Dividend income trends following the lower Logan JV distributions the Company cites.
- The weighted average yield of 9.6% against 10.4% in the prior-year quarter, and the weighted average cost of debt of 6.26%.
- Debt levels and leverage: net debt-to-equity of 1.36x, with $210.5 million of undrawn capacity subject to borrowing base limitations.
- Movement in unrealized depreciation on interest rate swaps and the foreign currency forward contract balances.
Balance sheet and cash flow
- As of September 30, 2026, the Company had $36.2 million in cash and cash equivalents and restricted cash, and $210.5 million of undrawn capacity on its credit facilities, subject to borrowing base and other limitations.
- The weighted average cost of debt on debt outstanding as of September 30, 2026 was 6.26%.
- The net debt-to-equity ratio was 1.36x as of September 30, 2026, defined by the Company as principal debt outstanding, less cash and cash equivalents, divided by equity.
- Debt (net of deferred financing costs of $8,809 thousand) was $909,275 thousand as of September 30, 2026, against $873,761 thousand as of December 31, 2025.
- Total net assets were $652,932 thousand as of September 30, 2026, against $706,038 thousand as of December 31, 2025. Net asset value per share was $17.72 against $19.10 at December 31, 2025.
- Accumulated earnings (loss) was $(302,468) thousand as of September 30, 2026, against $(251,029) thousand as of December 31, 2025.
- Unrealized depreciation on interest rate swaps was $6,304 thousand as of September 30, 2026, against nil as of December 31, 2025.
- The Company had investments in 190 portfolio companies as of September 30, 2026, against 184 as of December 31, 2025, with aggregate fair value of $1,555.2 million and $1,569.4 million, respectively.
- Unitranche first lien investments were $1,015.8 million, or 65.3% of the portfolio at fair value, as of September 30, 2026, against $1,047.8 million, or 66.7%, as of December 31, 2025.
- Investment activity: the Company invested $23.5 million across three new portfolio companies and follow-on fundings in the quarter ended September 30, 2026, against $57.0 million in the quarter ended June 30, 2026. Aggregate exits, sales and repayments were $38.7 million against $36.1 million.
Analysis
Crescent Capital BDC reported third quarter 2026 net investment income of $13.7 million, or $0.37 per share, against $13.1 million, or $0.36 per share, in the June quarter and $16.9 million, or $0.46 per share, a year earlier. Total investment income was $36.9 million, up from $36.3 million sequentially and down from $41.4 million year on year. The Company attributes the sequential increase primarily to higher recurring interest income from higher benchmark rates, and the decline in dividend income to lower distributions from the Logan JV investment. Interest income was $35.6 million, including $0.5 million of accelerated OID amortization tied to repayments. The year-on-year comparison is weaker because total expenses and fees were lower, but the income line fell more in proportion for the nine months: investment income was $111,121 thousand against $126,473 thousand and net investment income was $42,281 thousand against $50,437 thousand.
Net increase in net assets from operations was $10.1 million, or $0.27 per share, in the quarter, against a loss of $(3.3) million in the June quarter and $7.1 million a year earlier. Realized losses were smaller this quarter at $(2.1) million, against $(17.7) million in the June quarter, and unrealized losses were $(1.5) million. For the nine months, the company reported a net decrease of $(8,646) thousand, or $(0.23) per share, against a net increase of $26,019 thousand, or $0.70 per share, in the prior-year nine months, driven by realized and unrealized losses on investments of $(50,727) thousand.
The balance sheet shows a smaller portfolio and lower equity. Investments at fair value were $1,555.2 million at September 30, 2026, against $1,569.4 million at December 31, 2025, across 190 portfolio companies, up from 184. Total net assets were $652.9 million and NAV per share was $17.72, against $19.10 at year-end 2025 and $19.28 a year earlier. Debt rose to $909,275 thousand from $873,761 thousand at December 31, 2025, the net debt-to-equity ratio was 1.36x, and the weighted average cost of debt was 6.26%. Floating-rate debt investments were 98.2% of the portfolio, and the weighted average yield at cost was 9.6%, against 10.4% a year earlier.
On capital allocation, the Board declared a fourth quarter regular dividend of $0.34 per share, payable January 15, 2027, and a final $0.03 special dividend will be paid December 15, 2026. The Board authorized a repurchase program of up to $50 million, and Sun Life plans to buy up to a further $25 million of common stock in the open market under a 10b5-1 plan. The release contains no full-year or next-quarter guidance, so the outlook must be read from the dividend declaration and the buyback authorizations. The press release also states the call date of November 10, 2026, which will be the place for management commentary beyond the filed text.
Not in the filing
stated, not guessed- No forward guidance or outlook was provided in the filing and no previous outlook was supplied, so guidance and vs_prior_guidance are empty.
- No year-over-year or quarter-over-quarter percentage changes are printed for the metrics; yoy_change and qoq_change are null throughout.
- Prior-year quarter values for total expenses (as a net expenses line with taxes), interest income, dividend income, other income and the net expenses figure of $23.2 million are not printed; prior-year values for interest income, dividend income and other income are null.
- Prior-quarter (June 30, 2026) values for three-month statement lines such as total investment income by category, interest and debt financing costs, management fees and incentive fees are not printed in the Statements of Operations; those fields are null.
- Nine-month prior-quarter values are not applicable and are null.
- Net debt-to-equity ratio and weighted average cost of debt have no prior-period comparison printed.
- Cash and cash equivalents plus restricted cash ($36.2 million) has no prior-period comparison printed in the release text; the balance sheet shows separate cash and restricted cash lines at September 30, 2026 and December 31, 2025, which are not combined in the release and are not reproduced as a single metric.
- No segment or geographic revenue breakdown is provided beyond the investment income line items; portfolio asset types are not revenue segments and are described in balance_sheet_cash_flow.
- No executive quotes are included in the filing text; the conference call is scheduled for November 10, 2026.
- Share price reaction, consensus estimates and analyst expectations are not in the filing and are not included.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.