Sound Point Meridian (SPMC) Q4 25/26 earnings summary

Executive summary

• Net investment income for the quarter was $0.34 per share, with a net realized loss of ($0.20) per share and NAV per share at $9.63 as of March 31, 2026; unaudited NAV estimate was $10.57 as of April 30, 2026.

• GAAP net loss for the quarter was $74.7 million, or ($3.63) per share, driven by significant unrealized losses.

• Distributions paid during the quarter totaled $0.75 per share, with declared monthly distributions of $0.20 per share for the next quarter, representing a 26.8% annualized yield.

• Portfolio comprised 98 CLOs, 1,540 unique senior secured loans, and $198.7 million in net assets, diversified across 29 managers and 30+ industries.

Financial highlights

• Total investment income for the quarter was $15.1 million, with total expenses of $8.2 million, resulting in net investment income of $7.0 million.

• Realized loss on investments was $4.1 million, or ($0.20) per share; unrealized loss reached $77.6 million, or ($3.77) per share.

• Total investments at fair value were $368.2 million, with total assets of $374.5 million and net assets of $198.7 million.

• Received $23.4 million in cash distributions from the investment portfolio.

• Leverage ratio stood at 46.8% as of quarter end.

Outlook and guidance

• Declared monthly distributions of $0.20 per share for April, May, June, July, August, and September 2026 for common stock, and for Series A and Series B Term Preferred Stock.

• Actively managed, flexible investment approach with a focus on relative value and downside protection in the CLO equity space.