Main Street Capital Corporation (NYSE:MAIN) ("Main Street" or the "Company") is pleased to announce its preliminary operating results for the third quarter of 2025 and its third quarter 2025 earnings release and conference call schedule.
In commenting on the Company's preliminary operating results for the third quarter of 2025, Dwayne L. Hyzak, Main Street's Chief Executive Officer, stated, "We are pleased with our performance in the third quarter, which resulted in another quarter of strong operating results, including favorable distributable net investment income per share and a new record for net asset value per share for the thirteenth consecutive quarter, primarily driven by a significant net fair value increase of our existing lower middle market investment portfolio. Our third quarter results continued our positive performance over the last few years and resulted in an estimated return on equity of over 16% for the quarter. We look forward to sharing the full details of our results in a few weeks."
Preliminary Estimates of Third Quarter 2025 Results
Main Street's preliminary estimate of third quarter 2025 net investment income ("NII") is $0.95 to $0.99 per share, distributable net investment income ("DNII")(1) is $1.01 to $1.05 per share and DNII before taxes(2) is $1.05 to $1.09 per share.
Main Street's preliminary estimate of net asset value ("NAV") per share as of September 30, 2025 is $32.74 to $32.82, representing an increase of $0.44 to $0.52 per share, or 1.3% to 1.6%, from the NAV per share of $32.30 as of June 30, 2025, with this increase after the impact of the supplemental dividend paid in September 2025 of $0.30 per share. The estimated NAV per share increase is primarily due to the net fair value increase of the existing investment portfolio and the accretive impact of equity issuances, partially offset by the net tax provision for the quarter. The net fair value increase of the existing investment portfolio is the result of net fair value increases of the existing lower middle market ("LMM") and private loan investment portfolios, partially offset by net fair value decreases of the wholly-owned asset manager and the middle market investment portfolio.
As a result of Main Street's preliminary estimates of NII, the net changes in the fair value of its investment portfolio and the net tax provision as noted above, Main Street estimates that it generated a quarterly annualized return on equity of over 16% for the third quarter of 2025.(3)
Main Street preliminarily estimates that investments on non-accrual status comprised 1.2% of the total investment portfolio at fair value and 3.6% at cost as of September 30, 2025.
Investment Portfolio Activity
The Company's third quarter 2025 operating activities include the following investment activity in the LMM and private loan investment strategies:
- $106.2 million in total LMM portfolio investments, which after aggregate repayments, return of invested equity capital and a decrease in cost basis due to realized losses on LMM portfolio investments resulted in a net increase of $61.3 million in the total cost basis of the LMM investment portfolio; and
- $113.3 million in total private loan portfolio investments, which after aggregate repayments and a decrease in cost basis due to realized losses on private loan portfolio investments resulted in a net decrease of $68.8 million in the total cost basis of the private loan investment portfolio.