Crescent Capital BDC (CCAP) Q1 2026 earnings summary

Executive summary

• Net investment income per share was $0.42 for Q1 2026, down from $0.45 in the prior quarter, primarily due to lower interest income and higher non-accruals.

• Net asset value (NAV) per share declined to $18.27 from $19.10 quarter-over-quarter.

• Net realized and unrealized losses on investments per share were ($0.84), compared to ($0.21) in the previous quarter.

• Portfolio fair value at March 31, 2026 was approximately $1.56 billion, diversified across 192 companies and 18 industries, with 99.2% of debt investments at floating rates.

• Management and incentive fees were permanently reduced, and Sun Life completed its acquisition of Crescent Capital, strengthening institutional alignment.

Financial highlights

• Total investment income was $37.9 million in Q1 2026, down from $42.1 million year-over-year.

• Net investment income was $15.5 million ($0.42 per share), with net realized and unrealized losses totaling $31.0 million.

• Net assets were $674 million as of March 31, 2026, with total assets at $1.62 billion.

• Net leverage ended at 1.32x, slightly above the target range, and debt-to-equity ratio increased to 1.36x.

• Portfolio net interest margin was 6.1% for Q1 2026, with a weighted average cost of debt at 6.09%.

Outlook and guidance

• Base management fee reduced from 1.25% to 1.00% and incentive fee from 17.5% to 15.0%, effective April 1, 2026.

• Quarterly base dividend reset from $0.42 to $0.34 per share, with three special dividends of $0.03 per share each approved for 2026.

• No Q1 supplemental dividend will be paid based on this quarter's NII.

• Management expects general and administrative expenses to remain stable or decline as a percentage of assets during periods of asset growth.

• Not expecting significant net portfolio growth in the near term; focus remains on portfolio rotation and selective deployment.