BOSTON--(BUSINESS WIRE)--February 26, 2026--
Bain Capital Specialty Finance, Inc. (NYSE: BCSF, the "Company", "our" or "we") today announced financial results for the fourth quarter and fiscal year ended December 31, 2025, and that its Board of Directors (the "Board") has declared a dividend of $0.42 per share for the first quarter of 2026.
"BCSF delivered strong fourth quarter and full year 2025 results driven by attractive levels of net investment income that continued to cover our dividend," said Michael Ewald, Chief Executive Officer of BCSF. "Credit fundamentals remained strong across our highly diversified portfolio with stable credit metrics and low non-accruals. We believe the Company is well-positioned to navigate the current market environment given our longstanding, disciplined investment approach in the core middle market."
QUARTERLY HIGHLIGHTS
-- Net investment income (NII) per share was $0.46, equating to an
annualized NII yield on book value of 10.6%(1);
-- Net income per share was $0.43, equating to an annualized return on
book value of 9.9%(1);
-- Net asset value per share as of December 31, 2025 was $17.23, an
increase of 0.1% compared to September 30, 2025, excluding the impact of
the special distributions totaling $0.18 per share during the fourth
quarter;
-- Gross and net investment fundings were $167.9 million and $(25.3)
million, respectively; ending net debt-to-equity was 1.24x, as compared
to 1.23x as of September 30, 2025(2);
-- Investments on non-accrual were relatively unchanged
quarter-over-quarter and represented 1.5% and 0.8% of the total
investment portfolio at amortized cost and fair value, respectively, as
of December 31, 2025;
-- On December 22, 2025, the Company's Board of Directors declared a
special dividend of $0.15 per share to stockholders of record as of
December 31, 2025. This special dividend was in addition to the Company's
previously declared special dividend of $0.03 per share for the fourth
quarter;(3)
-- Subsequent to quarter-end, the Company's Board of Directors declared a
dividend of $0.42 per share for the first quarter of 2026 payable to
stockholders of record as of March 16, 2026(4); and
-- On January 29, 2026, the Company closed an offering of $350.0 million
aggregate principal amount of 5.950% unsecured notes due 2031. The net
proceeds of the offering were primarily used to repay outstanding secured
indebtedness under its financing arrangements and for general corporate
purposes.
SELECTED FINANCIAL HIGHLIGHTS
($ in millions, unless otherwise noted) Q4 2025 Q3 2025
-------------------------------------------------- --------- ---------
Net investment income per share $ 0.46 $ 0.45
Net investment income $ 29.7 $ 29.2
Earnings per share $ 0.43 $ 0.29
Regular dividends per share declared and payable $ 0.42 $ 0.42
Special dividends per share declared and payable $ 0.18 $ 0.03
As of As of
($ in millions, unless
otherwise noted) December 31, 2025 September 30, 2025
----------------------------- -------------------- ---------------------
Total fair value of
investments $ 2,508.4 $ 2,534.1
Total assets $ 2,662.6 $ 2,716.0
Total net assets $ 1,117.4 $ 1,128.5
Net asset value per share $ 17.23 $ 17.40
PORTFOLIO AND INVESTMENT ACTIVITY
For the three months ended December 31, 2025, the Company invested $167.9 million in 93 portfolio companies, including $68.3 million in 11 new companies and $99.6 million in 82 existing companies. The Company had $193.2 million of principal repayments and sales in the quarter, resulting in net investment fundings of $(25.3) million.
Investment Activity for the Quarter Ended December 31, 2025:
($ in millions) Q4 2025 Q3 2025 ------------------------- --------- --------- Investment Fundings $ 167.9 $ 340.1 Sales and Repayments $ 193.2 $ 296.1 ------------------------- ----- ----- Net Investment Activity $ (25.3) $ 44.0
As of December 31, 2025, the Company's investment portfolio had a fair value of $2,508.4 million, comprised of investments in 203 portfolio companies operating across 30 different industries.
Investment Portfolio at Fair Value as of December 31, 2025:
Investment Type $ in Millions % of Total
----------------------------------------- --------------- ----------
First Lien Senior Secured Loan $ 1,598.7 63.8%
Second Lien Senior Secured Loan 30.0 1.2
Subordinated Debt 95.7 3.8
Preferred Equity 157.2 6.3
Equity Interest 226.7 9.0
Warrants 1.0 0.0
Investment Vehicles 399.1 15.9
Subordinated Note in ISLP 190.7 7.6
Equity Interest in ISLP 43.6 1.9
Subordinated Note in SLP 157.9 6.3
Preferred and Equity Interest in
SLP 6.9 0.1
----------------------------------------- ----------- ----------
Total $ 2,508.4 100.0%
As of December 31, 2025, the weighted average yield on the investment portfolio at amortized cost and fair value were 10.8% and 10.9%, respectively, as compared to 11.1% and 11.2%, respectively, as of September 30, 2025(5)(6) . 92.2% of the Company's debt investments at fair value were in floating rate securities.
As of December 31, 2025, six portfolio companies were on non-accrual status, representing 1.5% and 0.8% of the total investment portfolio at amortized cost and fair value, respectively.
As of December 31, 2025, ISLP's investment portfolio had an aggregate fair value of $733.1 million, comprised of investments in 40 portfolio companies operating across 17 different industries. The investment portfolio on a fair value basis was comprised of 94.3% first lien senior secured loans, 0.7% second lien senior secured loans and 5.0% equity interests. 100% of ISLP's debt investments at fair value were in floating rate securities.
As of December 31, 2025, SLP's investment portfolio had an aggregate fair value of $1,536.3 million, comprised of investments in 99 portfolio companies operating across 26 different industries. The investment portfolio on a fair value basis was comprised of 99.7% first lien senior secured loans and 0.3% second lien senior secured loans. 100.0% of SLP's debt investments at fair value were in floating rate securities.
RESULTS OF OPERATIONS
For the three months ended December 31, 2025 and September 30, 2025, total investment income was $68.2 million and $67.2 million, respectively.
Total expenses (before taxes) for the three months ended December 31, 2025 and September 30, 2025 were $37.7 million and $37.2 million, respectively.
Net investment income for the three months ended December 31, 2025 and September 30, 2025 was $29.7 million or $0.46 per share and $29.2 million or $0.45 per share, respectively.
During the three months ended December 31, 2025, the Company had net realized and unrealized losses of $1.9 million.
Net increase in net assets resulting from operations for the three months ended December 31, 2025 was $27.8 million, or $0.43 per share.
CAPITAL AND LIQUIDITY
As of December 31, 2025, the Company had total principal debt outstanding of $1,473.0 million, including $251.0 million outstanding in the Company's Sumitomo Credit Facility, $272.0 million outstanding of the debt issued through BCC Middle Market CLO 2019-1 LLC, $300.0 million outstanding in the Company's senior unsecured notes due March 2026, $300.0 million outstanding in the Company's senior unsecured notes due October 2026, and $350.0 million outstanding in the Company's senior unsecured notes due March 2030.
For the three months ended December 31, 2025, the weighted average interest rate on debt outstanding was 4.6%, as compared to 4.8% for the three months ended September 30, 2025.
As of December 31, 2025, the Company had cash and cash equivalents (including foreign cash) of $26.2 million, restricted cash and cash equivalents of $32.7 million, $26.7 million of unsettled trades, net of receivables and payables of investments, and $604.0 million of capacity under its Sumitomo Credit Facility. As of December 31, 2025, the Company had $464.8 million of undrawn investment commitments.
As of December 31, 2025, the Company's debt-to-equity and net debt-to-equity ratios were 1.32x and 1.24x, respectively, as compared to 1.33x and 1.23x, respectively, as of September 30, 2025(3) .
Endnotes
(1) Net investment income yields and net income returns are calculated on
average net assets, or book value, for the respective periods shown.
(2) Net debt-to-equity represents principal debt outstanding less cash
and cash equivalents and unsettled trades, net of receivables and
payables of investments.
(3) The fourth quarter $0.15 per share special dividend was paid on
January 26, 2026 to stockholders of record as of December 31, 2025.
The fourth quarter $0.03 per share special dividend that was
previously announced was paid on December 30, 2025 to stockholders of
record as of December 16, 2025.
(4) The first quarter dividend is payable on March 30, 2026 to
stockholders of record as of March 16, 2026.
(5) The weighted average yield is computed as (a) the annual stated
interest rate or yield earned on the relevant accruing debt and other
income producing securities plus amortization of fees and discounts
on the performing debt and other income producing investments,
divided by (b) the total relevant investments at amortized cost or
fair value. The weighted average yield does not represent the total
return to our stockholders.
(6) For non-stated rate income producing investments, computed based on
(a) the dividend or interest income earned for the respective
trailing twelve months ended on the measurement date, divided by (b)
the ending amortized cost or fair value, as applicable. In instances
where historical dividend or interest income data is not available or
not representative for the trailing twelve months ended, the dividend
or interest income is annualized.
CONFERENCE CALL INFORMATION
A conference call to discuss the Company's financial results will be held live at 8:00 a.m. Eastern Time on February 27, 2026. Please visit BCSF's webcast link located on the Events & Presentations page of the Investor Resources section of BCSF's website at http://www.baincapitalspecialtyfinance.com for a slide presentation that complements the Earnings Conference Call.
Participants are also invited to access the conference call by dialing one of the following numbers:
-- Domestic: 1-800-343-4136 -- International: 1-203-518-9843 -- Conference ID: BAIN
All participants will need to reference "Bain Capital Specialty Finance - Fourth Quarter and Fiscal Year Ended December 31, 2025 Earnings Conference Call" once connected with the operator. All participants are asked to dial in 10-15 minutes prior to the call.
Replay Information:
An archived replay will be available approximately three hours after the conference call concludes through March 13, 2026 via a webcast link located on the Investor Resources section of BCSF's website, and via the dial-in numbers listed below:
-- Domestic: 1-844-512-2921 -- International: 1-412-317-6671 -- Conference ID: 11161100
Bain Capital Specialty Finance, Inc.
Consolidated Statements of Assets and Liabilities
(in thousands, except share and per share data)
As of As of
---------- ----------
December December
31, 2025 31, 2024
---------- ----------
Assets
Investments at fair value:
Non-controlled/non-affiliate
investments (amortized cost
of $1,891,513 and $1,784,019,
respectively) $1,905,297 $1,773,742
Non-controlled/affiliate
investments (amortized cost
of $7,504 and $77,269,
respectively) 18,674 75,733
Controlled affiliate
investments (amortized cost
of $603,650 and $585,702,
respectively) 584,470 581,714
Cash and cash equivalents 23,092 51,562
Foreign cash (cost of $2,477 and
$2,640, respectively) 3,151 1,963
Restricted cash and cash
equivalents 32,667 45,541
Collateral on derivatives 10,993 9,755
Deferred financing costs 3,543 4,591
Interest receivable on
investments 38,023 39,164
Interest rate swap 7,976 --
Receivable for sales and paydowns
of investments 28,856 37,760
Prepaid insurance 489 197
Unrealized appreciation on
forward currency exchange
contracts -- 4,690
Dividend receivable 5,354 5,745
--------- ---------
Total Assets $2,662,585 $2,632,157
========= =========
Liabilities
Debt (net of unamortized debt
issuance costs of $10,110 and
$4,929, respectively) $1,470,796 $1,390,270
Interest payable 12,376 13,860
Payable for investments purchased 2,110 29,490
Collateral payable on
derivatives 12,907 --
Unrealized depreciation on
forward currency exchange
contracts 9,061 1,185
Base management fee payable 9,408 9,160
Incentive fee payable 5,877 4,696
Accounts payable and accrued
expenses 12,910 14,771
Distributions payable 9,730 29,053
--------- ---------
Total Liabilities 1,545,175 1,492,485
--------- ---------
Commitments and Contingencies (See
Note 11)
Net Assets
Common stock, par value $0.001
per share, 100,000,000,000 and
100,000,000,000 shares
authorized, 64,868,507 and
64,562,265 shares issued and
outstanding as of December 31,
2025 and December 31, 2024,
respectively 65 65
Paid in capital in excess of par
value 1,161,110 1,159,493
Total distributable loss (43,765) (19,886)
--------- ---------
Total Net Assets 1,117,410 1,139,672
--------- ---------
Total Liabilities and Total Net
Assets $2,662,585 $2,632,157
========= =========
Net asset value per share $ 17.23 $ 17.65
========= =========
See Notes to Consolidated Financial Statements
Bain Capital Specialty Finance, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share data)
(Unaudited)
For the Year Ended December 31,
---------------------------------------
2025 2024 2023
---------- ---------- ----------
Income
Investment income from
non-controlled/non-affiliate
investments:
Interest from investments $ 172,277 $ 179,956 $ 184,921
Dividend income 6,093 1,958 62
PIK income 29,234 22,680 20,536
Other income 9,760 18,597 10,561
---------- ---------- ----------
Total investment income from
non-controlled/non-affiliate
investments 217,364 223,191 216,080
Investment income from
non-controlled/affiliate
investments:
Interest from investments 135 3,140 9,890
Dividend income -- 920 4,815
PIK income 30 461 2,308
Other income 118 -- --
---------- ---------- ----------
Total investment income from
non-controlled/affiliate
investments 283 4,521 17,013
Investment income from controlled
affiliate investments:
Interest from investments 39,420 39,145 33,739
Dividend income 16,163 25,796 30,957
PIK income 10 -- --
---------- ---------- ----------
Total investment income from
controlled affiliate
investments 55,593 64,941 64,696
---------- ---------- ----------
Total investment income 273,240 292,653 297,789
---------- ---------- ----------
Expenses
Interest and debt financing
expenses 80,585 74,688 80,008
Base management fee 37,163 35,644 36,095
Incentive fee 18,144 28,872 25,456
Professional fees 2,855 3,494 2,561
Directors fees 720 695 716
Other general and administrative
expenses 8,424 10,108 7,981
---------- ---------- ----------
Total expenses, net of fee
waivers 147,891 153,501 152,817
---------- ---------- ----------
Net investment income before
taxes 125,349 139,152 144,972
Income tax expense, including
excise tax 3,753 4,475 3,357
---------- ---------- ----------
Net investment income 121,596 134,677 141,615
---------- ---------- ----------
Net realized and unrealized gains
(losses)
Net realized loss on
non-controlled/non-affiliate
investments (13,469) (18,174) (62,903)
Net realized gain (loss) on
non-controlled/affiliate
investments (14,759) 7,727 19,006
Net realized gain (loss) on
foreign currency transactions 761 (320) (5,134)
Net realized gain (loss) on
forward currency exchange
contracts (5,817) 2,304 (407)
Net change in unrealized
appreciation on foreign currency
translation 1,435 (251) 4,050
Net change in unrealized
appreciation on forward currency
exchange contracts (12,566) 5,765 (2,322)
Net change in unrealized
appreciation on
non-controlled/non-affiliate
investments 24,061 11,424 49,524
Net change in unrealized
appreciation on
non-controlled/affiliate
investments 12,706 (16,857) (24,271)
Net change in unrealized
appreciation on controlled
affiliate investments (15,192) (6,877) 4,217
---------- ---------- ----------
Total net loss (22,840) (15,259) (18,240)
---------- ---------- ----------
Net increase in net assets resulting
from operations $ 98,756 $ 119,418 $ 123,375
========== ========== ==========
Basic and diluted net investment
income per share of common stock $ 1.88 $ 2.09 $ 2.19
Basic and diluted increase in net
assets resulting from operations per
share of common stock $ 1.53 $ 1.85 $ 1.91
Basic and diluted weighted average
common stock outstanding 64,821,087 64,562,265 64,562,265
See Notes to Consolidated Financial Statements
About Bain Capital Specialty Finance, Inc.
Bain Capital Specialty Finance, Inc. is an externally managed specialty finance company focused on lending to middle market companies. BCSF is managed by BCSF Advisors, LP, an SEC-registered investment adviser and a subsidiary of Bain Capital Credit, LP. Since commencing investment operations on October 13, 2016, and through December 31, 2025, BCSF has invested approximately $9,809.3 million in aggregate principal amount of debt and equity investments prior to any subsequent exits or repayments. BCSF's investment objective is to generate current income and, to a lesser extent, capital appreciation through direct originations of secured debt, including first lien, first lien/last out, unitranche and second lien debt, investments in strategic joint ventures, equity investments and, to a lesser extent, corporate bonds. BCSF has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended.
Forward-Looking Statements
This letter may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this letter may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the U.S. Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this letter.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260226356621/en/
CONTACT: Investor Contact:
Katherine Schneider
Tel. (212) 803-9613
investors@baincapitalbdc.com
Media Contact:
Scott Lessne
Tel. +1 (212) 300-1800
slessne@apcoworldwide.com
(END) Dow Jones Newswires
February 26, 2026 18:08 ET (23:08 GMT)