Nuveen Churchill Direct Lending (NCDL) Q4 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in 2025, with Q4 net investment income of $0.44 per share and annualized ROE on net investment income of nearly 11%.

• Net asset value per share declined to $17.72 at year-end from $17.85 at September 30, 2025.

• Portfolio focused on U.S. middle market companies, with $2.0 billion invested across 227 companies, 89.5% in first lien debt.

• Only 0.5% of portfolio at fair value on non-accrual status at year-end, representing four companies.

• Board authorized a $50 million share repurchase program.

Financial highlights

• Q4 2025 net investment income was $0.44 per share, with net realized and unrealized loss of $(0.12) per share.

• Net asset value per share was $17.72 at December 31, 2025, down from $17.85 at September 30, 2025.

• Q4 regular distribution paid was $0.45 per share, representing a 10.1% annualized yield on NAV.

• Full year 2025 investment income was $207.9 million, down from $224.0 million in 2024.

• Total assets at $2.1 billion and net assets at $875 million as of December 31, 2025.

Outlook and guidance

• Declared Q1 2026 distribution of $0.40 per share (base $0.36, supplemental $0.04), annualized yield of 9% on year-end NAV.

• Expect continued strong deal flow and investment opportunities in 2026, supported by interest rate cuts and increased M&A activity.

• Regular quarterly distribution of $0.36 per share expected to be sustainable for the medium to long term.

• Focus remains on disciplined investment in core U.S. middle market companies and proactive portfolio monitoring.

• Management remains focused on generating attractive risk-adjusted returns and confident in portfolio strength.