Main Street Announces Second Quarter 2026 Results

Second Quarter 2026 Net Investment Income of $0.97 Per Share

Second Quarter 2026 Distributable Net Investment Income⁽¹⁾ of $1.04 Per Share

Second Quarter 2026 Distributable Net Investment Income Before Taxes⁽²⁾ of $1.08 Per Share

Net Asset Value of $33.92 Per Share

HOUSTON, Aug. 6, 2026 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce its financial results for the second quarter ended June 30, 2026. Unless otherwise noted or the context otherwise indicates, the terms "we," "us," "our" and the "Company" refer to Main Street and its consolidated subsidiaries.

Second Quarter 2026 Highlights

• Net investment income ("NII") of $90.3 million, or $0.97 per share
• Distributable net investment income ("DNII")⁽¹⁾ of $97.4 million, or $1.04 per share
• DNII before taxes⁽²⁾ of $100.9 million, or $1.08 per share
• Total investment income of $149.6 million
• An industry leading position in cost efficiency, with a ratio of total non-interest operating expenses as a percentage of quarterly average total assets ("Operating Expenses to Assets Ratio") of 1.3% on both an annualized basis for the quarter and for the trailing twelve-month ("TTM") period ended June 30, 2026
• Net increase in net assets resulting from operations of $147.6 million, or $1.58 per share
• Return on equity⁽³⁾ of 18.9% on an annualized basis for the quarter and 15.0% for the TTM period ended June 30, 2026
• Net asset value of $33.92 per share as of June 30, 2026, representing an increase of $0.46 per share, or 1.4%, compared to $33.46 per share as of March 31, 2026 and $0.59 per share, or 1.8%, compared to $33.33 per share as of December 31, 2025
• Declared regular monthly dividends totaling $0.795 per share for the third quarter of 2026, or $0.265 per share for each of July, August and September 2026, representing a 3.9% increase from the regular monthly dividends paid in the third quarter of 2025
• Declared and paid a supplemental dividend of $0.30 per share, resulting in total dividends paid in the second quarter of 2026 of $1.08 per share and representing a 2.9% increase from the total dividends paid in the second quarter of 2025
• Completed $99.7 million in total lower middle market ("LMM") portfolio investments, including investments totaling $45.8 million in two new portfolio companies, which after aggregate repayments and return of invested equity capital resulted in a net decrease of $30.6 million in the total cost basis of the LMM investment portfolio
• Completed $238.9 million in total private loan portfolio investments, which after aggregate repayments, return of invested equity capital and a decrease in cost basis due to a realized loss resulted in a net increase of $60.2 million in the total cost basis of the private loan investment portfolio
• Fully exited investments in Centre Technologies Holdings, LLC, realizing a gain of $46.4 million, which in addition to the total dividends received over the life of the equity investment, resulted in an annual internal rate of return and times money invested return of 40.1% and 8.8 times, respectively, on the equity investment, and 23.2% and 2.4 times, respectively, including all debt and equity investments in the company on a cumulative basis since Main Street's initial investment in 2019
• Further enhanced our liquidity position and strengthened our capital structure by (i) amending the Corporate Facility to increase the total commitments by $65.0 million to $1.240 billion and extend the maturity date to June 2031 and (ii) issuing a principal amount of $150.0 million of the April 2031 Notes (with the Corporate Facility and the April 2031 Notes each as defined in the Liquidity and Capital Resources section below)

In commenting on the Company's operating results for the second quarter of 2026, Dwayne L. Hyzak, Main Street's Chief Executive Officer, stated, "We are very pleased with our performance in the second quarter, which resulted in strong quarterly operating results highlighted by an annualized return on equity of 18.9%. The results included favorable levels of net investment income per share and distributable net investment income before taxes per share and a significant increase in net asset value per share, primarily driven by significant net fair value appreciation on our lower middle market and private loan investment portfolios, including the benefit of another material realized gain in our lower middle market investment portfolio. We believe that these results continue to demonstrate the sustainable strength of our overall platform, the benefits of our differentiated and diversified investment strategies and the continued underlying strength and quality of our portfolio companies."

Mr. Hyzak continued, "Our strong second quarter results and continued positive outlook for the future resulted in the declaration of another $0.30 per share supplemental dividend to be paid in September 2026, representing our twentieth consecutive quarterly supplemental dividend, to go with the 12 increases to our regular monthly dividends declared since the fourth quarter of 2021. Additionally, with the continued support from our long-term lender relationships as evidenced by the recent expansion and extension of our Corporate Facility and our recent investment grade notes offering in April 2026, we continue to maintain strong liquidity and a conservative leverage profile, which we believe is important in the current economic environment. We remain confident that our diversified lower middle market and private loan investment strategies, together with the benefits of our asset management business, cost efficient operating structure and conservative capital structure, will allow us to continue to deliver superior results for our shareholders."

Second Quarter 2026 Operating Results

The following table provides a summary of our operating results for the second quarter of 2026:

The $5.6 million increase in total investment income in the second quarter of 2026 from the comparable period of the prior year was principally attributable to (i) an $11.8 million increase in interest income, primarily due to higher average levels of income producing investment portfolio debt investments, partially offset by a decrease in interest rates, primarily resulting from decreases in benchmark index rates on floating rate investment portfolio debt investments, and the negative impact from investment portfolio debt investments on non-accrual status and (ii) a $4.3 million increase in fee income, primarily due to a $2.8 million increase in fee income from the refinancing and prepayment of investment portfolio debt investments and a $1.5 million increase in fee income related to increased investment activity. These increases were partially offset by a $10.4 million decrease in dividend income, primarily due to an $8.8 million decrease in dividend income from our LMM portfolio companies, a $0.8 million decrease in dividend income from our External Investment Manager (as defined in the External Investment Manager section below) and a $0.5 million decrease in dividend income from our other portfolio investments. The $5.6 million increase in total investment income in the second quarter of 2026 includes the impact of an increase of $1.4 million in certain income considered less consistent or non-recurring, primarily related to increases of (i) $3.1 million in such fee income and (ii) $0.8 million in such interest income from accelerated prepayment, repricing and other activity related to certain investment portfolio debt investments, partially offset by a decrease of $2.5 million in such dividend income, in each case when compared to the same period in 2025.

Total cash expenses⁽⁴⁾ increased $4.2 million, or 9.5%, to $48.7 million in the second quarter of 2026 from $44.5 million for the same period in 2025. This increase in total cash expenses was principally attributable to (i) a $4.1 million increase in interest expense and (ii) a $1.0 million increase in cash compensation expenses,⁽⁴⁾ partially offset by a $0.7 million increase in expenses allocated to our External Investment Manager. The increase in interest expense was primarily related to an increase in average borrowings outstanding used to fund a portion of the growth of our investment portfolio, partially offset by a decreased weighted-average interest rate on our Credit Facilities due to decreases in benchmark index rates. The increase in cash compensation expenses⁽⁴⁾ is primarily related to increases in employee headcount to support our growing investment portfolio and asset management activities, base compensation rates and other compensation related accruals. The increase in expenses allocated to the External Investment Manager was primarily driven by the increased compensation expenses.

Non-cash compensation expenses⁽⁴⁾ increased $0.9 million in the second quarter of 2026 from the comparable period of the prior year, primarily driven by a $0.5 million increase in deferred compensation expense.

Our Operating Expenses to Assets Ratio (which includes non-cash compensation expenses⁽⁴⁾) on an annualized basis was 1.3% for the second quarter of 2026, a decrease from 1.4% for the second quarter of 2025.

Excise tax expense decreased $0.2 million and NII related federal and state income and other tax expenses decreased $1.5 million in the second quarter of 2026 compared to the same period in 2025, resulting in a decrease in tax expenses included in NII of $1.7 million. The decrease in excise tax was due to a decrease in undistributed taxable income as of June 30, 2026 and the decrease in NII related federal and state income and other tax expenses was due to a decrease in taxable NII between the comparable periods.

The $2.1 million increase in NII and the $3.0 million increase in DNII⁽¹⁾ in the second quarter of 2026 from the comparable period of the prior year were both principally attributable to (i) the increase in total investment income and (ii) the decrease in NII related tax expenses, partially offset by an increase in total cash expenses, each as discussed above. NII and DNII⁽¹⁾ on a per share basis each decreased by $0.02 per share for the second quarter of 2026 as compared to the second quarter of 2025, to $0.97 per share and $1.04 per share, respectively. These decreases include the impact of a 4.5% increase in the weighted-average shares outstanding compared to the second quarter of 2025, primarily due to shares issued since the beginning of the comparable period of the prior year through our (i) at-the-market ("ATM") equity issuance program, (ii) dividend reinvestment plan and (iii) equity incentive compensation plans. The decreases in NII and DNII⁽¹⁾ on a per share basis in the second quarter of 2026 are after a net increase of $0.01 per share resulting from an increase in investment income considered less consistent or non-recurring in nature compared to the second quarter of 2025, as discussed above.

The $147.6 million net increase in net assets resulting from operations in the second quarter of 2026 represents a $25.0 million increase from the second quarter of 2025. This increase was primarily the result of (i) a $31.6 million increase in the net fair value change of our portfolio investments resulting from the net impact of net realized gains/losses and net unrealized appreciation/depreciation, with the increase resulting from a net fair value increase of $65.0 million in the second quarter of 2026 compared to a net fair value increase of $33.5 million in the prior year and (ii) a $2.1 million increase in NII as discussed above, with these increases partially offset by an $8.7 million increase in the net tax provision on the net fair value change of our portfolio investments, resulting from a net tax provision of $7.8 million in the second quarter of 2026 compared to a net tax benefit of $0.9 million in the comparable period of the prior year. The $65.0 million net fair value increase in the second quarter of 2026 was the result of a net realized gain of $32.8 million and net unrealized appreciation (including the reversal of net fair value appreciation recognized in prior periods due to the net realized gain in the quarter) of $32.2 million. The $33.5 million net fair value increase in the second quarter of 2025 was the result of a net realized gain of $52.4 million, partially offset by net unrealized depreciation of $19.0 million. The $32.8 million net realized gain from investments for the second quarter of 2026 was primarily the result of a $46.4 million realized gain on the full exit of a LMM portfolio investment, partially offset by a $13.3 million realized loss on the restructure of a private loan portfolio investment.

The following table provides a summary of the total net unrealized appreciation of $32.2 million for the second quarter of 2026:

Liquidity and Capital Resources

As of June 30, 2026, we had aggregate liquidity of $1.153 billion, including (i) $58.3 million in cash and cash equivalents and (ii) $1.095 billion of aggregate unused capacity, which is after a reduction of $500.0 million to provide for the scheduled repayment of the July 2026 Notes (as defined below) at maturity, under our corporate revolving credit facility (the "Corporate Facility") and our special purpose vehicle revolving credit facility (the "SPV Facility" and, together with the Corporate Facility, the "Credit Facilities"), which we maintain to support our investment and operating activities.

Several details regarding our capital structure as of June 30, 2026 are as follows:

• The Corporate Facility included $1.240 billion in total commitments from a diversified group of 18 participating lenders, plus an accordion feature that allows us to request an increase in the total commitments under the facility to up to $1.860 billion.
• $26.0 million in outstanding borrowings under the Corporate Facility, with an interest rate of 5.5% based on the applicable Secured Overnight Financing Rate ("SOFR") effective for the contractual reset date of July 1, 2026.
• The SPV Facility included $600.0 million in total commitments from a diversified group of six participating lenders, plus an accordion feature that allows us to request an increase in the total commitments under the facility to up to $800.0 million.
• $215.0 million in outstanding borrowings under the SPV Facility, with an interest rate of 5.6% based on the applicable SOFR effective for the contractual reset date of July 1, 2026.
• $550.0 million of unsecured notes outstanding that bear interest at a rate of 6.95% per year (the "March 2029 Notes") with a yield-to-maturity of 6.68%. The March 2029 Notes mature on March 1, 2029 and may be redeemed in whole or in part at any time at our option subject to certain make-whole provisions.
• $500.0 million of unsecured notes outstanding that bear interest at a rate of 3.00% per year (the "July 2026 Notes"). The July 2026 Notes mature on July 14, 2026 and may be redeemed in whole or in part at any time at our option subject to certain make-whole provisions.
• $400.0 million of unsecured notes outstanding that bear interest at a rate of 6.50% per year with a yield-to-maturity of 6.34% (the "June 2027 Notes"). The June 2027 Notes mature on June 4, 2027 and may be redeemed in whole or in part at any time at our option subject to certain make-whole provisions.
• $350.0 million of unsecured notes outstanding that bear interest at a rate of 5.40% per year (the "August 2028 Notes"). The August 2028 Notes mature on August 15, 2028 and may be redeemed in whole or in part at any time at our option subject to certain make-whole provisions.
• $350.0 million of outstanding Small Business Investment Company ("SBIC") debentures through our wholly-owned SBIC subsidiaries. These debentures, which are guaranteed by the U.S. Small Business Administration (the "SBA"), had a weighted-average annual fixed interest rate of 3.26% and mature ten years from original issuance. The first maturity related to our existing SBIC debentures occurs in the first quarter of 2027, and the weighted-average remaining duration was 4.1 years.
• $150.0 million of unsecured notes outstanding that bear interest at a rate of 6.93% per year (the "April 2031 Notes"). The April 2031 Notes mature on April 15, 2031 and may be redeemed in whole or in part at any time at our option subject to certain make-whole provisions.
• We maintain investment grade credit ratings from each of Fitch Ratings and S&P Global Ratings, both of which have assigned us investment grade credit ratings of BBB- with a stable outlook.
• Our net asset value totaled $3.2 billion, or $33.92 per share.

Investment Portfolio Information as of June 30, 2026⁽⁵⁾

The following table provides a summary of the investments in our LMM portfolio and private loan portfolio as of June 30, 2026:

The fair value of our LMM portfolio company equity investments was 196% of the related cost basis of such equity investments, and our LMM portfolio companies had a median net senior debt (senior interest-bearing debt through our debt position less cash and cash equivalents) to EBITDA ratio of 2.7 to 1.0 and a median total EBITDA to senior interest expense ratio of 2.9 to 1.0. Including all debt that is junior in priority to our debt position, these median ratios were 2.7 to 1.0 and 2.8 to 1.0, respectively.⁽⁵⁾⁽⁶⁾

As of June 30, 2026, our investment portfolio also included:

• Other portfolio investments in 34 entities, spread across 13 investment managers, collectively totaling $141.3 million in fair value and $150.8 million in cost basis, which comprised 2.5% and 3.0% of our investment portfolio at fair value and cost, respectively;
• Middle market portfolio investments in 11 portfolio companies, collectively totaling $83.1 million in fair value and $123.1 million in cost basis, which comprised 1.4% and 2.5% of our investment portfolio at fair value and cost, respectively; and
• Our investment in the External Investment Manager, with a fair value of $225.2 million and a cost basis of $29.5 million, which comprised 3.9% and 0.6% of our investment portfolio at fair value and cost, respectively.

As of June 30, 2026, investments on non-accrual status comprised 1.1% of the total investment portfolio at fair value and 4.0% at cost, and our total portfolio investments at fair value were 116% of the related cost basis.

External Investment Manager

MSC Adviser I, LLC is our wholly-owned portfolio company and registered investment adviser that provides investment management services to external parties (the "External Investment Manager"). We share employees with the External Investment Manager and allocate costs related to such shared employees and other operating expenses to the External Investment Manager. The total contribution of the External Investment Manager to our NII consists of the combination of the expenses we allocate to the External Investment Manager and the dividend income we earn from the External Investment Manager. During the second quarter of 2026, the External Investment Manager earned $9.6 million of total fee income, and waived $0.3 million of incentive fees, resulting in total fee income, net of waivers, of $9.4 million, a decrease of $0.2 million from the second quarter of 2025. The fee income earned by the External Investment Manager in the second quarter of 2026 included (i) $6.2 million of management fee income, an increase of $0.5 million from the second quarter of 2025, and (ii) incentive fees, net of waivers, of $3.0 million, a decrease of $0.7 million from the second quarter of 2025. As discussed above, we allocated $6.6 million of total expenses to the External Investment Manager during the second quarter of 2026, an increase of $0.7 million from the second quarter of 2025. The increase in management fee income was primarily attributable to an increase in total assets managed for clients. The decrease in incentive fees, net of waivers, is the result of (i) a decrease in gross incentive fees of $0.5 million and (ii) the $0.3 million incentive fee waiver. The decrease in gross incentive fees was attributable to changes in the performance and operating results from the assets managed for clients in the second quarter of 2026 relative to the second quarter of 2025. The combination of the dividend income we earned from the External Investment Manager and expenses we allocated to it resulted in a total contribution to our NII of $8.7 million, which is consistent with the total contribution to our NII from the second quarter of 2025.

The External Investment Manager ended the second quarter of 2026 with total assets under management of $1.8 billion.

Second Quarter 2026 Financial Results Conference Call / Webcast

Main Street has scheduled a conference call for Friday, August 7, 2026 at 10:00 a.m. Eastern time to discuss the second quarter 2026 financial results.⁽⁷⁾

You may access the conference call by dialing 412-902-0030 at least 10 minutes prior to the start time. The conference call can also be accessed via a simultaneous webcast by logging into the investor relations section of the Main Street website at https://www.mainstcapital.com.

A telephonic replay of the conference call will be available through Friday, August 14, 2026 and may be accessed by dialing 201-612-7415 and using the passcode 13761583#. An audio archive of the conference call will also be available on the investor relations section of the Company's website at https://www.mainstcapital.com shortly after the call and will be accessible until the date of Main Street's earnings release for the next quarter.

For a more detailed discussion of the financial and other information included in this press release, please refer to the Main Street Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2026 to be filed with the U.S. Securities and Exchange Commission (the "SEC") (www.sec.gov) and Main Street's Second Quarter 2026 Investor Presentation to be posted on the investor relations section of the Main Street website at https://www.mainstcapital.com.

ABOUT MAIN STREET CAPITAL CORPORATION

Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides customized long-term debt and equity capital solutions to lower middle market companies and debt capital to private companies owned by or in the process of being acquired by a private equity fund. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides customized "one-stop" debt and equity financing solutions within its lower middle market investment strategy. Main Street seeks to partner with private equity fund sponsors and primarily invests in secured debt investments in its private loan investment strategy. Main Street's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million. Main Street's private loan portfolio companies generally have annual revenues between $25 million and $500 million.

Main Street, through its wholly-owned portfolio company MSC Adviser I, LLC ("MSC Adviser"), also maintains an asset management business through which it manages investments for external parties. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended.

FORWARD-LOOKING STATEMENTS

Main Street cautions that statements in this press release which are forward‑looking and provide other than historical information, including but not limited to Main Street's ability to successfully source and execute on new portfolio investments and deliver future financial performance and results, are based on current conditions and information available to Main Street as of the date hereof and include statements regarding Main Street's goals, beliefs, strategies and future operating results and cash flows. Although its management believes that the expectations reflected in those forward‑looking statements are reasonable, Main Street can give no assurance that those expectations will prove to be correct. Those forward-looking statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including, without limitation: Main Street's continued effectiveness in raising, investing and managing capital; adverse changes in the economy generally or in the industries in which Main Street's portfolio companies operate; the impacts of macroeconomic factors on Main Street and its portfolio companies' businesses and operations, liquidity and access to capital, and on the U.S. and global economies, including impacts related to pandemics and other public health crises, global conflicts, risk of recession, tariffs and trade disputes, inflation, supply chain constraints or disruptions and changes in market index interest rates; changes in laws and regulations or business, political and/or regulatory conditions that may adversely impact Main Street's operations or the operations of its portfolio companies; the operating and financial performance of Main Street's portfolio companies and their access to capital; retention of key investment personnel; competitive factors; and such other factors described under the captions "Cautionary Statement Concerning Forward-Looking Statements" and "Risk Factors" included in Main Street's filings with the SEC (www.sec.gov). Main Street undertakes no obligation to update the information contained herein to reflect subsequently occurring events or circumstances, except as required by applicable securities laws and regulations.

MAIN STREET CAPITAL CORPORATION
Endnotes

Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, dhyzak@mainstcapital.com
Ryan R. Nelson, CFO, rnelson@mainstcapital.com
713-350-6000

Dennard Lascar Investor Relations
Ken Dennard / ken@dennardlascar.com
Zach Vaughan / zvaughan@dennardlascar.com
713-529-6600

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SOURCE Main Street Capital Corporation