Main Street Announces Preliminary Estimate of Second Quarter 2025 Operating Results
Announces Second Quarter 2025 Earnings Release and Conference Call Schedule
HOUSTON, July 17, 2025 /PRNewswire/ -- Main Street Capital Corporation (NYSE:MAIN) ("Main Street" or the "Company") is pleased to announce its preliminary operating results for the second quarter of 2025 and its second quarter 2025 earnings release and conference call schedule.
In commenting on the Company's preliminary operating results for the second quarter of 2025, Dwayne L. Hyzak, Main Street's Chief Executive Officer, stated, "We are pleased with our performance in the second quarter, which resulted in another quarter of strong operating results, including favorable distributable net investment income per share and a new record for net asset value per share for the twelfth consecutive quarter, primarily driven by a significant net fair value increase and including the benefits of the largest realized gain in Main Street's history. Our second quarter results continued our positive performance over the last few quarters and resulted in an estimated return on equity of over 17% for the quarter. We look forward to sharing the full details of our results in a few weeks."
Preliminary Estimates of Second Quarter 2025 Results
Main Street's preliminary estimate of second quarter 2025 net investment income ("NII") is $0.98 to $1.00 per share and distributable net investment income ("DNII") is $1.05 to $1.07 per share.(1) The preliminary estimates of NII and DNII include $0.05 to $0.06 per share of NII related federal and state income, excise and other tax expenses.(2)
Main Street's preliminary estimate of net asset value ("NAV") per share as of June 30, 2025 is $32.27 to $32.33, representing an increase of $0.24 to $0.30 per share, or 0.7% to 0.9%, from the NAV per share of $32.03 as of March 31, 2025, with this increase after the impact of the supplemental dividend paid in June 2025 of $0.30 per share. The estimated increase in NAV per share is primarily due to the net fair value increase on the investment portfolio and the accretive impact of equity issuances, partially offset by a decrease due to the issuance of restricted stock. The net fair value increase on the investment portfolio is the result of net fair value increases on the wholly-owned asset manager and the lower middle market ("LMM") investment portfolio, partially offset by net fair value decreases on the private loan and middle market investment portfolios.
As a result of Main Street's preliminary estimates of NII and the net changes in the fair value of its investment portfolio as noted above, Main Street estimates that it generated a quarterly annualized return on equity of over 17% for the second quarter of 2025.(3)
Main Street preliminarily estimates that investments on non-accrual status comprised 2.1% of the total investment portfolio at fair value and 5.0% at cost as of June 30, 2025.
Investment Portfolio Activity
The Company's second quarter 2025 operating activities include the following investment activity in the LMM, private loan and middle market investment strategies:
$209.3 million in total LMM portfolio investments, which after aggregate repayments of debt investments and return of invested equity capital resulted in a net increase of $108.4 million in the total cost basis of the LMM investment portfolio;
$188.6 million in total private loan portfolio investments, which after aggregate repayments and sales of debt investments, return of invested equity capital and a decrease in cost basis due to realized losses on private loan portfolio investments resulted in a net decrease of $34.9 million in the total cost basis of the private loan ...
