1
Exhibit 99.1
 | NEWS RELEASE |
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 |
MAIN STREET ANNOUNCES
SECOND QUARTER 2025 RESULTS
Second Quarter 2025 Net Investment Income of $0.99 Per Share
Second Quarter 2025 Distributable Net Investment Income(1) of $1.06 Per Share
Net Asset Value of $32.30 Per Share
HOUSTON, August 7, 2025 – Main Street Capital Corporation (NYSE: MAIN) (“Main Street”) is pleased to
announce its financial results for the second quarter ended June 30, 2025. 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 2025 Highlights
•Net investment income of $88.2 million (or $0.99 per share), including excise tax and net investment
income related income taxes of $5.2 million (or $0.06 per share)
•Distributable net investment income(1) of $94.3 million (or $1.06 per share), including excise tax and net
investment income related income taxes of $5.2 million (or $0.06 per share)
•Total investment income of $144.0 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 1.4% on an
annualized basis for the quarter and 1.3% for the trailing twelve-month (“TTM”) period ended June 30,
2025
•Net increase in net assets resulting from operations of $122.5 million (or $1.37 per share)
•Return on equity(2) of 17.1% on an annualized basis for the quarter and 19.5% for the TTM period ended
June 30, 2025
•Net asset value of $32.30 per share as of June 30, 2025, representing an increase of $0.27 per share, or
0.8%, compared to $32.03 per share as of March 31, 2025 and $0.65 per share, or 2.1%, compared to $31.65
per share as of December 31, 2024
•Declared regular monthly dividends totaling $0.765 per share for the third quarter of 2025, or $0.255 per
share for each of July, August and September 2025, representing a 4.1% increase from the regular monthly
dividends paid in the third quarter of 2024
•Declared and paid a supplemental dividend of $0.30 per share, resulting in total dividends paid in the second
quarter of 2025 of $1.05 per share and representing a 2.9% increase from the total dividends paid in the
second quarter of 2024
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•Completed $209.3 million in total lower middle market (“LMM”) portfolio investments, including
investments totaling $110.3 million in three new LMM portfolio companies, 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
•Completed $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
resulted in a net decrease of $34.9 million in the total cost basis of the private loan investment portfolio
•Net decrease of $17.6 million in the total cost basis of the middle market investment portfolio
In commenting on the Company’s 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 highlighted by an annualized return on equity of 17.1%,
favorable levels of net investment income per share and distributable net investment income per share and
another record for net asset value per share primarily driven by a significant net fair value increase, which
includes the benefits of the largest realized gain in Main Street’s history. We believe that these continued strong
results demonstrate the sustainable strength of our overall platform, the benefits of our differentiated and
diversified investment strategies, the unique contributions of our asset management business and the continued
underlying strength and quality of our portfolio companies, particularly those in our highly unique lower middle
market investment strategy.”
Mr. Hyzak continued, “Our continued positive performance allowed us to increase the total dividends paid to
our shareholders in the second quarter by 2.9% over the prior year, continuing our trend of increasing the
dividends paid to our shareholders over the past few years, while also continuing to generate distributable net
investment income per share which exceeds the total dividends paid to our shareholders in the second quarter.
Our strong second quarter performance resulted in the declaration of another $0.30 per share supplemental
dividend to be paid in September 2025, representing our sixteenth consecutive quarterly supplemental dividend,
to go with the ten increases to our regular monthly dividends declared since the fourth quarter of 2021. We
remain confident that our diversified lower middle market and private loan investment strategies, together with
the benefits of our asset management business, our cost efficient operating structure and conservative capital
structure, will allow us to continue to deliver superior results for our shareholders.”
Second Quarter 2025 Operating Results
The following table provides a summary of our operating results for the second quarter of 2025:
Three Months Ended June 30, | |||||||
2025 | 2024 | Change ($) | Change (%) | ||||
(in thousands, except per share amounts) | |||||||
Interest income | $100,857 | $100,031 | $826 | 1% | |||
Dividend income | 37,845 | 26,688 | 11,157 | 42% | |||
Fee income | 5,271 | 5,435 | (164) | (3)% | |||
Total investment income | $143,973 | $132,154 | $11,819 | 9% | |||
Net investment income (3) | $88,183 | $83,899 | $4,284 | 5% | |||
Net investment income per share (3) | $0.99 | $0.97 | $0.02 | 2% | |||
Distributable net investment income (1)(3) | $94,344 | $88,885 | $5,459 | 6% | |||
Distributable net investment income per share (1)(3) | $1.06 | $1.03 | $0.03 | 3% | |||
Net increase in net assets resulting from operations | $122,534 | $102,688 | $19,846 | 19% | |||
Net increase in net assets resulting from operations per share | $1.37 | $1.19 | $0.18 | 15% | |||
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The $11.8 million increase in total investment income in the second quarter of 2025 from the comparable period
of the prior year was principally attributable to (i) an $11.2 million increase in dividend income, primarily due
to an $11.5 million increase in dividend income from our LMM portfolio companies and a $0.6 million increase
in dividend income from our private loan portfolio companies, partially offset by a $0.5 million decrease in
dividend income from our External Investment Manager (as defined in the External Investment Manager
section below) and (ii) a $0.8 million increase in interest income, primarily due to higher average levels of
income producing investment portfolio debt investments, partially offset by an increase in investments on non-
accrual status and a decrease in interest rates on floating rate investment portfolio debt investments, primarily
resulting from decreases in benchmark index rates. The $11.8 million increase in total investment income in the
second quarter of 2025 is after the impact of an increase of $3.0 million in certain income considered less
consistent or non-recurring, primarily related to (i) a $3.0 million increase in such dividend income and (ii) a
$0.7 million increase in such interest income from accelerated prepayment, repricing and other activity related
to certain investment portfolio debt investments, partially offset by a $0.7 million decrease in such fee income,
in each case when compared to the same period in 2024.
Total cash expenses(4) increased $4.6 million, or 11.6%, to $44.5 million in the second quarter of 2025 from
$39.9 million for the same period in 2024. This increase in total cash expenses was principally attributable to (i)
a $3.4 million increase in interest expense, (ii) a $0.7 million increase in cash compensation expenses(4) and (iii)
a $0.5 million increase in general and administrative expense. The increase in interest expense is primarily
related to (i) an increase in average borrowings outstanding used to fund a portion of the growth of our
investment portfolio and (ii) an increased weighted-average interest rate on our debt obligations resulting from
the issuance of the June 2027 Notes (as defined in the Liquidity and Capital Resources section below) and the
repayment of certain notes at maturity in May 2024, partially offset by a decreased weighted-average interest
rate on our Credit Facilities (as defined in the Liquidity and Capital Resources section below) due to decreases
in benchmark index rates and decreases to the applicable margin rates related to the amendments of our Credit
Facilities in April 2025.
Non-cash compensation expenses(4) increased $1.2 million in the second quarter of 2025 from the comparable
period of the prior year, primarily driven by (i) a $0.6 million increase in deferred compensation expense and
(ii) a $0.5 million increase in share-based compensation.
Our Operating Expenses to Assets Ratio (which includes non-cash compensation expenses(4)) on an annualized
basis was 1.4% for the second quarter of 2025, an increase from 1.3% for the second quarter of 2024.
Excise tax expense increased $0.5 million and net investment income related federal and state income and other
tax expenses increased $1.2 million in the second quarter of 2025 compared to the same period in 2024. The
increase in excise tax is due to the increase in undistributed taxable income as of June 30, 2025 and the increase
in net investment income related federal and state income and other tax expenses is due to an increase in taxable
net investment income between the relevant periods.
The $4.3 million increase in net investment income and the $5.5 million increase in distributable net investment
income(1) in the second quarter of 2025 from the comparable period of the prior year were both principally
attributable to the increase in total investment income, partially offset by increased expenses and excise tax and
net investment income related taxes, each as discussed above. Net investment income per share increased by
$0.02 per share and distributable net investment income(1) per share increased by $0.03 per share for the second
quarter of 2025 as compared to the second quarter of 2024, to $0.99 per share and $1.06 per share, respectively.
These increases include the impact of a 3.6% increase in the weighted-average shares outstanding compared to
the second quarter of 2024, 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 plans. Net investment income and distributable net investment income(1) on a per share
basis in the second quarter of 2025 include a net increase of $0.02 per share and $0.03 per share, respectively,
resulting from an increase in investment income and an increase in non-cash deferred compensation expenses,
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in both cases considered less consistent or non-recurring in nature compared to the second quarter of 2024, as
discussed above.
The $122.5 million net increase in net assets resulting from operations in the second quarter of 2025 represents
a $19.8 million increase from the second quarter of 2024. This increase was primarily the result of (i) a $7.0
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 $33.5 million in the second quarter of 2025 compared to a net fair value increase of $26.5
million in the prior year, (ii) an $8.6 million benefit from the change in the net tax provision/benefit on the net
fair value change of our portfolio investments resulting from a net tax benefit of $0.9 million in the second
quarter of 2025 compared to a net tax provision of $7.7 million in the prior year and (iii) a $4.3 million increase
in net investment income as discussed above. 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
(including the reversal of net fair value appreciation in prior periods on the net realized gain) of $19.0 million.
The $26.5 million net fair value increase in the second quarter of 2024 was the result of a net realized gain of
$3.4 million and net unrealized appreciation of $23.0 million. The $52.4 million net realized gain from
investments for the second quarter of 2025 was primarily the result of (i) a $55.6 million realized gain on the
full exit of a LMM portfolio investment, (ii) $6.2 million of realized gains on the partial exits of two other
portfolio investments and (iii) a $5.2 million realized gain on the full exit of a private loan portfolio investment,
partially offset by (i) an $8.5 million realized loss on the full exit of a private loan portfolio investment and (ii) a
$6.2 million realized loss on the restructure of a private loan portfolio investment.
The following table provides a summary of the total net unrealized depreciation of $19.0 million for the second
quarter of 2025:
Three Months Ended June 30, 2025 | |||||||||
LMM (a) | Private Loan | Middle Market | Other | Total | |||||
(in millions) | |||||||||
Accounting reversals of net unrealized (appreciation) depreciation recognized in prior periods due to net realized (gains / income) losses recognized during the current period | $(56.7) | $7.8 | $(0.2) | $(6.6) | $(55.7) | ||||
Net unrealized appreciation (depreciation) relating to portfolio investments | 5.8 | (3.4) | (2.2) | 36.5 | (b) | 36.7 | |||
Total net unrealized appreciation (depreciation) relating to portfolio investments | $(50.9) | $4.4 | $(2.4) | $29.9 | $(19.0) | ||||
___________________________
(a)LMM includes unrealized appreciation on 36 LMM portfolio investments and unrealized depreciation on 26
LMM portfolio investments.
(b)Primarily consists of $34.4 million of unrealized appreciation related to the External Investment Manager.
Liquidity and Capital Resources
As of June 30, 2025, we had aggregate liquidity of $1.351 billion, including (i) $87.0 million in cash and cash
equivalents and (ii) $1.264 billion of aggregate unused capacity 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, 2025 are as follows:
•The Corporate Facility included $1.145 billion in total commitments from a diversified group of 19
participating lenders, plus an accordion feature that allows us to request an increase in the total
commitments under the facility to up to $1.718 billion.
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•$301.0 million in outstanding borrowings under the Corporate Facility, with an interest rate of 6.2% based
on the applicable Secured Overnight Financing Rate (“SOFR”) effective for the contractual reset date of
July 1, 2025.
•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.
•$176.0 million in outstanding borrowings under the SPV Facility, with an interest rate of 6.3% based on the
applicable SOFR effective for the contractual reset date of July 1, 2025.
•$500.0 million of 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 June 2027 Notes outstanding that bear interest at a rate of 6.50% per year with a yield-to-
maturity of approximately 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 notes outstanding that bear interest at a rate of 6.95% per year (the “March 2029 Notes”).
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.
•$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 5.1 years.
•$150.0 million of notes outstanding that bear interest at a weighted-average rate of 7.74% per year (the
“December 2025 Notes”). The December 2025 Notes mature on December 23, 2025 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. Fitch Ratings
reaffirmed its rating during the second quarter of 2025 and S&P Global Ratings reaffirmed its rating during
the third quarter of 2025.
•Our net asset value totaled $2.9 billion, or $32.30 per share.
Investment Portfolio Information as of June 30, 2025(5)
The following table provides a summary of the investments in our LMM portfolio and private loan portfolio as
of June 30, 2025:
As of June 30, 2025 | ||||
LMM (a) | Private Loan | |||
(dollars in millions) | ||||
Number of portfolio companies | 88 | 87 | ||
Fair value | $2,668.8 | $1,920.3 | ||
Cost | $2,105.0 | $1,958.0 | ||
Debt investments as a % of portfolio (at cost) | 70.1% | 94.7% | ||
Equity investments as a % of portfolio (at cost) | 29.9% | 5.3% | ||
% of debt investments at cost secured by first priority lien | 99.3% | 99.9% | ||
Weighted-average annual effective yield (b) | 12.8% | 11.4% | ||
Average EBITDA (c) | $10.4 | $32.5 | ||
___________________________
(a)We had equity ownership in all of our LMM portfolio companies, and our average fully diluted equity
ownership in those portfolio companies was 38%.
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(b)The weighted-average annual effective yields were computed using the effective interest rates for all debt
investments as of June 30, 2025, including amortization of deferred debt origination fees and accretion of
original issue discount but excluding fees payable upon repayment of the debt instruments and any debt
investments on non-accrual status, and are weighted based upon the principal amount of each applicable
debt investment as of June 30, 2025.
(c)The average EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is calculated using
a simple average for the LMM portfolio and a weighted-average for the private loan portfolio. These
calculations exclude certain portfolio companies, including six LMM portfolio companies and six private
loan portfolio companies, as EBITDA is not a meaningful valuation metric for our investments in these
portfolio companies, and those portfolio companies whose primary purpose is to own real estate and those
portfolio companies whose primary operations have ceased and only residual value remains.
The fair value of our LMM portfolio company equity investments was 197% of the cost 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, 2025, our investment portfolio also included:
•Middle market portfolio investments in 12 portfolio companies, collectively totaling $108.7 million in fair
value and $134.2 million in cost basis, which comprised 2.1% and 3.1% of our investment portfolio,
respectively;
•Other portfolio investments in 32 entities, spread across 12 investment managers, collectively totaling
$122.7 million in fair value and $126.0 million in cost basis, which comprised 2.4% and 2.9% of our
investment portfolio at fair value and cost, respectively; and
•Our investment in the External Investment Manager, with a fair value of $272.6 million and a cost basis of
$29.5 million, which comprised 5.4% and 0.7% of our investment portfolio at fair value and cost,
respectively.
As of June 30, 2025, investments on non-accrual status comprised 2.1% of the total investment portfolio at fair
value and 5.0% at cost, and our total portfolio investments at fair value were 117% 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
net investment income 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
2025, the External Investment Manager earned $5.7 million of management fee income, a decrease of $0.2
million from the second quarter of 2024, and incentive fees of $3.7 million, a decrease of $0.4 million from the
second quarter of 2024. In addition, we allocated $5.9 million of total expenses to the External Investment
Manager, consistent with the second quarter of 2024. 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 net
investment income of $8.7 million, representing a decrease of $0.5 million from the second quarter of 2024.
The External Investment Manager ended the second quarter of 2025 with total assets under management of $1.6
billion.
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Second Quarter 2025 Financial Results Conference Call / Webcast
Main Street has scheduled a conference call for Friday, August 8, 2025 at 10:00 a.m. Eastern Time to discuss
the second quarter 2025 financial results.
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 15, 2025 and may be
accessed by dialing 201-612-7415 and using the passcode 13752813#. 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, 2025 to be filed with
the U.S. Securities and Exchange Commission (www.sec.gov) and Main Street’s Second Quarter 2025 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.
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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 U.S. Securities and Exchange Commission
(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.
9
MAIN STREET CAPITAL CORPORATION
Consolidated Statements of Operations
(in thousands, except shares and per share amounts)
(Unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
INVESTMENT INCOME: | |||||||
Interest, fee and dividend income: | |||||||
Control investments | $60,212 | $51,318 | $116,454 | $102,437 | |||
Affiliate investments | 25,767 | 23,201 | 49,501 | 40,928 | |||
Non‑Control/Non‑Affiliate investments | 57,994 | 57,635 | 115,064 | 120,394 | |||
Total investment income | 143,973 | 132,154 | 281,019 | 263,759 | |||
EXPENSES: | |||||||
Interest | (32,519) | (29,161) | (63,687) | (55,937) | |||
Compensation | (12,677) | (11,322) | (24,153) | (23,581) | |||
General and administrative | (5,919) | (5,375) | (11,005) | (9,595) | |||
Share‑based compensation | (5,416) | (4,883) | (10,258) | (8,986) | |||
Expenses allocated to the External Investment Manager | 5,892 | 5,887 | 11,228 | 11,446 | |||
Total expenses | (50,639) | (44,854) | (97,875) | (86,653) | |||
NET INVESTMENT INCOME BEFORE TAXES | 93,334 | 87,300 | 183,144 | 177,106 | |||
Excise tax expense | (818) | (272) | (2,159) | (1,193) | |||
Federal and state income and other tax expenses | (4,333) | (3,129) | (6,905) | (5,583) | |||
NET INVESTMENT INCOME (3) | 88,183 | 83,899 | 174,080 | 170,330 | |||
NET REALIZED GAIN (LOSS): | |||||||
Control investments | (2,998) | (361) | (2,976) | (352) | |||
Affiliate investments | 55,647 | 7,863 | 57,711 | 753 | |||
Non‑Control/Non‑Affiliate investments | (229) | (4,088) | (31,860) | (9,355) | |||
Total net realized gain (loss) | 52,420 | 3,414 | 22,875 | (8,954) | |||
NET UNREALIZED APPRECIATION (DEPRECIATION): | |||||||
Control investments | 33,154 | 5,589 | 33,555 | 37,659 | |||
Affiliate investments | (47,745) | 9,502 | (8,742) | 15,428 | |||
Non‑Control/Non‑Affiliate investments | (4,360) | 7,953 | 19,426 | 10,606 | |||
Total net unrealized appreciation (depreciation) | (18,951) | 23,044 | 44,239 | 63,693 | |||
Income tax benefit (provision) on net realized gain (loss) and net unrealized appreciation (depreciation) | 882 | (7,669) | (2,578) | (15,234) | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $122,534 | $102,688 | $238,616 | $209,835 | |||
NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED (3) | $0.99 | $0.97 | $1.96 | $1.99 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE—BASIC AND DILUTED | $1.37 | $1.19 | $2.68 | $2.45 | |||
WEIGHTED-AVERAGE SHARES OUTSTANDING—BASIC AND DILUTED | 89,258,390 | 86,194,092 | 88,986,215 | 85,666,311 | |||
10
MAIN STREET CAPITAL CORPORATION
Consolidated Balance Sheets
(in thousands, except per share amounts)
June 30, | December 31, | |||
2025 | 2024 | |||
(Unaudited) | ||||
ASSETS | ||||
Investments at fair value: | ||||
Control investments | $2,295,565 | $2,087,890 | ||
Affiliate investments | 856,226 | 846,798 | ||
Non‑Control/Non‑Affiliate investments | 1,941,279 | 1,997,981 | ||
Total investments | 5,093,070 | 4,932,669 | ||
Cash and cash equivalents | 86,984 | 78,251 | ||
Interest and dividend receivable and other assets | 92,509 | 98,084 | ||
Deferred financing costs, net | 15,203 | 12,337 | ||
Total assets | $5,287,766 | $5,121,341 | ||
LIABILITIES | ||||
Credit Facilities | $477,000 | $384,000 | ||
July 2026 Notes (par: $500,000 as of both June 30, 2025 and December 31, 2024) | 499,452 | 499,188 | ||
June 2027 Notes (par: $400,000 as of both June 30, 2025 and December 31, 2024) | 399,425 | 399,282 | ||
March 2029 Notes (par: $350,000 as of both June 30, 2025 and December 31, 2024) | 347,361 | 347,002 | ||
SBIC debentures (par: $350,000 as of both June 30, 2025 and December 31, 2024) | 344,005 | 343,417 | ||
December 2025 Notes (par: $150,000 as of both June 30, 2025 and December 31, 2024) | 149,741 | 149,482 | ||
Accounts payable and other liabilities | 50,025 | 69,631 | ||
Interest payable | 23,717 | 23,290 | ||
Dividend payable | 22,767 | 22,100 | ||
Deferred tax liability, net | 90,056 | 86,111 | ||
Total liabilities | 2,403,549 | 2,323,503 | ||
NET ASSETS | ||||
Common stock | 893 | 884 | ||
Additional paid‑in capital | 2,429,817 | 2,394,492 | ||
Total undistributed earnings | 453,507 | 402,462 | ||
Total net assets | 2,884,217 | 2,797,838 | ||
Total liabilities and net assets | $5,287,766 | $5,121,341 | ||
NET ASSET VALUE PER SHARE | $32.30 | $31.65 |
11
MAIN STREET CAPITAL CORPORATION
Reconciliation of Distributable Net Investment Income,
Total Cash Expenses, Non-Cash Compensation Expenses
and Cash Compensation Expenses
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Net investment income (3) | $88,183 | $83,899 | $174,080 | $170,330 | |||
Non-cash compensation expenses (4) | 6,161 | 4,986 | 11,183 | 9,551 | |||
Distributable net investment income (1)(3) | $94,344 | $88,885 | $185,263 | $179,881 | |||
Per share amounts: | |||||||
Net investment income per share - | |||||||
Basic and diluted (3) | $0.99 | $0.97 | $1.96 | $1.99 | |||
Distributable net investment income per share - | |||||||
Basic and diluted (1)(3) | $1.06 | $1.03 | $2.08 | $2.10 | |||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Share‑based compensation | $(5,416) | $(4,883) | $(10,258) | $(8,986) | |||
Deferred compensation expense | (745) | (103) | (925) | (565) | |||
Total non-cash compensation expenses (4) | (6,161) | (4,986) | (11,183) | (9,551) | |||
Total expenses | (50,639) | (44,854) | (97,875) | (86,653) | |||
Less non-cash compensation expenses (4) | 6,161 | 4,986 | 11,183 | 9,551 | |||
Total cash expenses (4) | $(44,478) | $(39,868) | $(86,692) | $(77,102) | |||
Compensation | $(12,677) | $(11,322) | $(24,153) | $(23,581) | |||
Share-based compensation | (5,416) | (4,883) | (10,258) | (8,986) | |||
Total compensation expenses | (18,093) | (16,205) | (34,411) | (32,567) | |||
Non-cash compensation expenses (4) | 6,161 | 4,986 | 11,183 | 9,551 | |||
Total cash compensation expenses (4) | $(11,932) | $(11,219) | $(23,228) | $(23,016) | |||
12
MAIN STREET CAPITAL CORPORATION
Endnotes
(1)Distributable net investment income is net investment income as determined in accordance with U.S.
Generally Accepted Accounting Principles, or U.S. GAAP, excluding the impact of non-cash compensation
expenses.(4) Main Street believes presenting distributable net investment income and the related per share
amount is useful and appropriate supplemental disclosure for analyzing its financial performance since non-
cash compensation expenses(4) do not result in a net cash impact to Main Street upon settlement. However,
distributable net investment income is a non-U.S. GAAP measure and should not be considered as a
replacement for net investment income or other earnings measures presented in accordance with U.S. GAAP
and should be reviewed only in connection with such U.S. GAAP measures in analyzing Main Street’s
financial performance. A reconciliation of net investment income in accordance with U.S. GAAP to
distributable net investment income is detailed in the financial tables included with this press release.
(2)Return on equity equals the net increase in net assets resulting from operations divided by the average
quarterly total net assets.
(3)Net investment income and distributable net investment income for 2024 and the first quarter of 2025
necessary to present the comparable year-to-date amounts for the six months ended June 30, 2025 have been
revised to include the impact of excise tax and net investment income related federal and state income and
other tax expenses previously included within the total income tax provision. This correction was
determined to be immaterial to any impacted prior periods and had no impact on net increases in or net
assets resulting from operations or the related per share amounts.
(4)Non-cash compensation expenses consist of (i) share-based compensation and (ii) deferred compensation
expense or benefit, both of which are non-cash in nature. Share-based compensation does not require
settlement in cash. Deferred compensation expense or benefit does not result in a net cash impact to Main
Street upon settlement. The appreciation (depreciation) in the fair value of deferred compensation plan
assets is reflected in Main Street’s Consolidated Statements of Operations as unrealized appreciation
(depreciation) and an increase (decrease) in compensation expenses, respectively. Cash compensation
expenses are total compensation expenses as determined in accordance with U.S. GAAP, less non-cash
compensation expenses. Total cash expenses are total expenses, as determined in accordance with U.S.
GAAP, excluding non-cash compensation expenses. Main Street believes presenting cash compensation
expenses, non-cash compensation expenses and total cash expenses is useful and appropriate supplemental
disclosure for analyzing its financial performance since non-cash compensation expenses do not result in a
net cash impact to Main Street upon settlement. However, cash compensation expenses, non-cash
compensation expenses and total cash expenses are non-U.S. GAAP measures and should not be considered
as a replacement for compensation expenses, total expenses or other earnings measures presented in
accordance with U.S. GAAP and should be reviewed only in connection with such U.S. GAAP measures in
analyzing Main Street’s financial performance. A reconciliation of compensation expenses and total
expenses in accordance with U.S. GAAP to cash compensation expenses, non-cash compensation expenses
and total cash expenses is detailed in the financial tables included with this press release.
(5)Portfolio company financial information has not been independently verified by Main Street.
(6)These credit statistics exclude portfolio companies on non-accrual status and portfolio companies for which
EBITDA is not a meaningful metric.