MidCap Financial Investment (MFIC) investor relations material

Executive summary

• Net investment income per share was $0.38 for Q1 2026, with NAV per share declining 2.5% to $13.82 due to realized and unrealized losses from credit spread widening and credit weakness, partially offset by accretive stock buybacks.

• Net investment income totaled $34.3 million, flat year-over-year, while net assets from operations decreased by $26.9 million due to significant realized and unrealized losses.

• Stock repurchases totaled $76 million in Q1 2026, with an additional 2.8 million shares repurchased post-quarter, fully utilizing the $107.9 million authorization and generating $0.24 per share of NAV accretion.

• Quarterly dividend of $0.31 per share declared for Q2 2026, payable June 25, 2026.

Financial highlights

• Total investment income was $71.8 million, down from $78.7 million in Q1 2025, due to lower base rates, fewer accrual days, portfolio size reduction, increased non-accruals, and lower fee income.

• Net realized and unrealized losses were $61.1 million ($0.67 per share), reflecting credit spread widening and portfolio credit weakness.

• Net expenses declined 11.3% to $37.6 million, mainly from lower interest and administrative expenses.

• Net leverage ratio increased to 1.55x at quarter end, up from 1.45x in the prior quarter.

• Total assets at quarter-end were $3.07 billion; total debt was $1.87 billion.

Outlook and guidance

• Focus remains on reducing net leverage to the lower end of the target range before considering new share buybacks or portfolio growth.

• Dividend of $0.31 per share declared for Q2 2026, with no assurance of future dividends at this level.

• Management expects current liquidity, borrowing capacity, and cash flows to be adequate for operational needs over the next twelve months.

• Interest rate sensitivity analysis shows a 50 bps increase could add $4.4 million to annual net investment income; a 100 bps increase would add $8.9 million.

• Management remains cautious on M&A activity due to macroeconomic and geopolitical uncertainties.