BlackRock TCP Capital Corp. (NASDAQ: TCPC) saw its stock price plummet 5.14% in pre-market trading on Thursday following the release of its second-quarter 2025 financial results. The business development company's earnings and key financial metrics fell short of analyst expectations, triggering the sharp decline.
The company reported adjusted earnings per share of $0.31, missing the analyst consensus estimate of $0.33 by 5.49%. This represents an 18.42% decrease from the $0.38 per share earned in the same period last year. Additionally, quarterly sales came in at $51.465 million, falling 8.36% below the analyst consensus estimate of $56.162 million and marking a significant 28.05% decrease from the $71.526 million reported in the second quarter of 2024.
A major concern for investors was the decline in net asset value (NAV) per share, which fell to $8.71 as of June 30, 2025, down from $9.18 on March 31, 2025. This decrease was largely attributed to markdowns on previously restructured portfolio companies. However, the company did report some positive developments, including a reduction in non-accrual investments to 3.7% of the portfolio's fair market value, down from 4.4% in the previous quarter. Despite these challenges, BlackRock TCP Capital declared a third-quarter regular dividend of $0.25 per share and a special dividend of $0.04 per share, which may provide some reassurance to income-focused investors.
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