Nuveen Churchill Direct Lending (NCDL) Q3 2025 earnings summary

Executive summary

• Net investment income was $0.43 per share for Q3 2025, down from $0.46 in Q2, with net asset value per share declining to $17.85 from $17.92, mainly due to lower interest income and new non-accruals.

• Portfolio fair value remained stable at $2.0 billion, diversified across 213 companies in 26 industries, with 89.8% in first-lien debt and strong credit quality.

• Annualized ROE on net investment income was 9.6%, and on net income was 8.4% for the quarter.

• Management remains optimistic about long-term prospects, citing strong sponsor relationships, a robust deal pipeline, and positive momentum into 2026.

• Completed $99.3 million share repurchase program, repurchasing approximately 5.94 million shares.

Financial highlights

• Net investment income for Q3 2025 was $21.4 million, down from $31.5 million in Q3 2024 and $22.9 million in Q2 2025.

• Total investment income was $51.1 million, a decrease from $60.3 million in Q3 2024 and $53.1 million in Q2 2025.

• Net increase in net assets from operations was $18.7 million for Q3 2025, up from $16.0 million in Q2 2025 but down year-over-year.

• Net asset value per share decreased to $17.85 at September 30, 2025, from $18.18 at December 31, 2024.

• Paid and declared regular distributions of $0.45 per share for Q3 and Q4 2025, maintaining a 10.0% yield.

Outlook and guidance

• Management expects continued strong deal flow and M&A activity, supported by lower interest rates and increased sponsor confidence.

• Management anticipates continued positive momentum and increased transaction activity into 2026, with a focus on high-quality assets and risk-adjusted returns.

• Repayment rates are expected to return to the long-term average as deal activity remains robust.

• The Board declared a regular dividend of $0.45 per share payable in January 2026.

• Management continues to emphasize disciplined investment and proactive portfolio monitoring.