Net investment income per share for the quarter was $0.38, compared to $0.39 for the quarter ended December 31, 2025
Net asset value ("NAV") per share as of the end of the quarter was $13.82, compared to $14.18 as of December 31, 2025, representing a 2.5% decrease. The decline was driven by a net loss on the portfolio, primarily reflecting the impact of broader credit spread widening and credit weakness on certain positions partially offset by the accretive impact of stock buybacks below NAV and net investment income in excess of the dividend
New investment commitments made during the quarter totaled $50 million(1)
Gross fundings, excluding revolver fundings,(2) totaled $68 million for the quarter
Net repayments, including revolvers(2) totaled $142 million for the quarter, including a $22 million repayment from Merx reducing the position to 2.7% of the total portfolio, as of quarter-end
Net leverage(3) was 1.55x as of March 31, 2026
Repurchased 7,084,020 shares of common stock at a weighted average price per share of $10.73, inclusive of commissions, for an aggregate cost of $76.0 million during the quarter, generating $0.24 per share of NAV accretion
From April 1, 2026, through April 13, 2026, the Company (as defined below) repurchased 2,755,221 shares of common stock at a weighted average price per share of $11.58, inclusive of commissions, for a total cost of $31.9 million, which fully utilized the existing capacity under the share repurchase program
On May 5, 2026, the Company's Board of Directors (the "Board") declared a dividend of $0.31 per share payable on June 25, 2026, to stockholders of record as of June 9, 2026(4)
NEW YORK, May 06, 2026 (GLOBE NEWSWIRE) -- MidCap Financial Investment Corporation (NASDAQ:MFIC) or the "Company," today announced financial results for the quarter ended March 31, 2026. The Company's net investment income was $0.38 per share for the quarter ended March 31, 2026, compared to $0.39 per share for the quarter ended December 31, 2025. The Company's NAV was $13.82 per share as of March 31, 2026, compared to $14.18 as of December 31, 2025.
On May 5, 2026, the Board declared a quarterly dividend of $0.31 per share payable on June 25, 2026, to stockholders of record as of June 9, 2026.
Commenting on the Company's results for the first quarter of 2026, Mr. Tanner Powell, Chief Executive Officer, stated, "As discussed last quarter, given the size of the stock's discount to NAV, we prioritized allocating capital toward stock repurchases rather than deploying capital into new investments during the quarter. While NAV per share declined due to portfolio losses, the impact was partially offset by the accretive impact of stock buybacks executed below NAV and net investment income in excess of the dividend. Our net loss for the quarter was driven by a combination of unrealized valuation adjustments reflecting broader credit spread widening, as well as credit weakness in certain positions. We believe that the Company's fee structure is one of the most attractive fee structures among listed BDCs that is meaningfully aligned with stockholders and helps mitigate the impact of losses."
___________________
(1) Commitments made for the direct origination portfolio. (2) During the quarter ended March 31, 2026, direct origination revolver fundings totaled $33 million, direct origination revolver repayments totaled $32 million and Merx Aviation Finance, LLC repaid $22.0 million.(3) The Company's net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.(4) There can be no assurances that the Board will continue to declare a base dividend of $0.31 per share.
FINANCIAL HIGHLIGHTS
($ in billions, except per share data)
March 31,2026
December 31,2025
September 30,2025
June 30,2025
March 31,2025
Total assets
$
3.07
$
3.32
$
3.31
$
3.46
$
3.36
Investment portfolio (fair value)
$
2.97
$
3.17
$
3.18
$
3.33
$
3.19
Debt outstanding
$
1.87
$
2.00
$
1.92
$
2.05
$
1.94
Net assets
$
1.18
$
1.31
$
1.37
$
1.38
$
1.39
Net asset value per share
$
13.82
$
14.18
$
14.66
$
14.75
$
14.93
Debt-to-equity ratio
1.59 x
1.53 x
1.40 x
1.49 x
1.39 x
Net leverage ratio (1)
1.55 x
1.45 x
1.35 x
1.44 x
1.31 x
____________________
(1) The Company's net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.
PORTFOLIO AND INVESTMENT ACTIVITY
Three Months Ended March 31,
(in millions)*
2026
2025
Investments made in portfolio companies
$
102.5
$
391.9
Investments sold
(24.0
)
(43.9
)
Net activity before repaid investments
78.5
348.0
Investments repaid
(220.1
)
(177.6
)
Net investment activity
$
(141.7
)
$
170.4
Portfolio companies, at beginning of period
247
233
Number of investments in new portfolio companies
2
20
Number of exited companies
(13
)
(13
)
Portfolio companies at end of period
236
240
Number of investments in existing portfolio companies
83
78
____________________
* Totals may not foot due to rounding.
OPERATING RESULTS
Three Months Ended March 31,
(in millions)*
2026
2025
Net investment income
$
34.3
$
34.3
Net realized and change in unrealized gains (losses)
(61.1
)
(4.0
)
Net increase (decrease) in net assets resulting from operations
$
(26.9
)
$
30.3
(per share)* (1)
Net investment income on per average share basis
$
0.38
$
0.37
Net realized and change in unrealized gain (loss) per share
(0.67
)
(0.05
)
Earnings per share, basic
$
(0.30
)
$
0.32
____________________
* Totals may not foot due to rounding.
(1) Based on the weighted average number of shares outstanding for the period presented.
SHARE REPURCHASE PROGRAM*
During the three months ended March 31, 2026, the Company repurchased 7,084,020 shares at a weighted average price per share of $10.73, inclusive of commissions, for a total cost of $76.0 million. This represents a discount of approximately 23% of the average net asset value per share for the three months ended March 31, 2026.
From April 1, 2026, through April 13, 2026, the Company repurchased 2,755,221 shares of common stock at a weighted average price per share of $11.58, inclusive of commissions, for a total cost of $31.9 million which fully utilized the existing capacity under the share repurchase program.
Since the inception of the share repurchase program in August 2015 and through May 6, 2026, the Company has approved seven stock repurchase plans, and repurchased 27.0 million shares of common stock for a total cost of $375.0 million, inclusive of commissions.
* Share figures have been adjusted for the 1-for-3 reverse stock split which was completed after market close on November 30, 2018.
LIQUIDITY
As of March 31, 2026, the Company's outstanding debt obligations, excluding deferred financing cost and debt discount of $5.6 million, totaled $1.9 billion, which was comprised of $125 million of Senior Unsecured Notes, which will mature on July 16, 2026, $80 million of Senior Unsecured Notes, which will mature on December 15, 2028, $456 million outstanding secured debt in MFIC Bethesda CLO 1 LLC, $399 million outstanding secured debt in MFIC Bethesda CLO 2 LLC, and $816 million outstanding under the Company's senior secured, multi-currency, revolving credit facility (the "Facility" and as amended, the "Amended Senior Secured Facility"). As of March 31, 2026, no standby letters of credit were issued through the Facility. The available remaining capacity under the Facility was $794 million as of March 31, 2026, which is subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company's portfolio.
Borrowings under the Amended Senior Secured Facility (and the incurrence of certain other permitted debt) continue to be subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company's portfolio. The advance rate applicable to any specific type of asset in the Company's portfolio depends on the relevant asset coverage ratio as of the date of determination. Borrowings under the Amended Senior Secured Facility continue to be subject to the leverage restrictions contained in the Investment Company Act of 1940, as amended (the "1940 Act"). Terms used in this disclosure have the meanings set forth in the Amended Senior Secured Facility.
CONFERENCE CALL / WEBCAST AT 8:30 AM EDT ON MAY 7, 2026
The Company will host a conference call on Thursday, May 7, 2026, at 8:30 a.m. Eastern Time. All interested parties are welcome to participate in the conference call by dialing (800) 343-4849 approximately 5-10 minutes prior to the call; international callers should dial (203) 518-9848. Participants should reference either MidCap Financial Investment Corporation Earnings or Conference ID: MFIC0507 when prompted. A simultaneous webcast of the conference call will be available to the public on a listen-only basis and can be accessed through the Events Calendar in the Shareholders section of our website at www.midcapfinancialic.com. Following the call, you may access a replay of the event either telephonically or via audio webcast. The telephonic replay will be available approximately two hours after the live call and through May 28, 2026, by dialing (800) 839-9815; international callers should dial (402) 220-2190. A replay of the audio webcast will also be available later that same day. To access the audio webcast please visit the Events Calendar in the Shareholders section of our website at www.midcapfinancialic.com.
SUPPLEMENTAL INFORMATION
The Company provides a supplemental information package to offer more transparency into its financial results and make its reporting more informative and easier to follow. The supplemental package is available in the Shareholders section of the Company's website under Presentations at www.midcapfinancialic.com.
Our portfolio composition and weighted average yields as of March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025 and March 31, 2025 were as follows:
March 31,2026
December 31,2025
September 30,2025
June 30,2025
March 31,2025
Portfolio composition, at fair value:
