Annual report [Section 13 and 15(d), not S-K Item 405]

DIVIDENDS, DISTRIBUTIONS AND TAXABLE INCOME (Tables)

v3.25.4
DIVIDENDS, DISTRIBUTIONS AND TAXABLE INCOME (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Dividends Declared
A summary of dividends paid for the years ended December 31, 2025, 2024 and 2023 is as follows:
Year Ended December 31,
2025 2024 2023
(in thousands, except per share amounts)
Regular monthly dividends per share $ 3.03  $ 2.91  $ 2.745 
Supplemental dividends per share
 1.20  1.20  0.95 
Total dividends per share $ 4.23  $ 4.11  $ 3.695 
Total regular monthly dividends
 $ 270,657  $ 252,331  $ 224,279 
Total supplemental dividends
 107,353  104,513  78,608 
Total dividends
 $ 378,010  $ 356,844  $ 302,887 
Schedule of Distribution to Shareholder The tax character of distributions paid for the years ended December 31, 2025, 2024 and 2023 was as follows:
Year Ended December 31,
2025 2024 2023
(in thousands)
Ordinary income (1) $ 346,754  $ 245,845  $ 278,165 
Qualified dividends 30,449  110,281  24,100 
Distributions on tax basis $ 377,203  $ 356,126  $ 302,265 
___________________________
(1)The years ended December 31, 2025, 2024 and 2023 include $4.3 million, $4.2 million and $3.3 million, respectively, that was reported for tax purposes as compensation for services in accordance with Section 83 of the Code.
Schedule of Distributable Earnings on Tax Basis
As of December 31, 2025, 2024 and 2023, the components of distributable earnings on a tax basis, or “Undistributed ordinary income,” differ from the amount of “Total undistributed earnings” reflected in the Consolidated Balance Sheets by the temporary book or tax differences shown below:
December 31,
2025 2024 2023
(in thousands)
Undistributed ordinary income $ 103,416  $ 142,588  $ 76,510 
Net unrealized appreciation, net of tax 684,023  583,720  454,792 
Cumulative book-tax differences on realized gain/loss, including capital loss carryforward (212,730) (189,782) (187,218)
Accumulated net impact of Taxable Subsidiaries (1) 24,833  (83,246) (72,442)
Other temporary differences (2) (64,207) (50,818) (65,640)
Components of Total undistributed earnings $ 535,335  $ 402,462  $ 206,002 
___________________________
(1)Accumulated net impact of earnings, intercompany dividends and book-tax differences of the Taxable Subsidiaries.
(2)Book income and tax income differences, including dividends, equity and deferred compensation, debt origination, structuring fees and changes in estimates.
Schedule of Taxable Income and to Total Distributions Declared to Common Stock Reconciliation
A reconciliation of “Net increase in net assets resulting from operations” to taxable income and to total distributions declared to common stockholders for the years ended December 31, 2025, 2024 and 2023 is as follows:
Year Ended December 31,
2025 2024 2023
(estimated, in thousands)
Net increase in net assets resulting from operations $ 493,398  $ 508,080  $ 428,447 
Book-tax difference from share-based compensation expense (5,119) (317) 962 
Net unrealized appreciation (98,879) (137,656) (232,577)
Income tax provision 26,801  30,633  22,642 
Pre-tax book income not consolidated for tax purposes (148,072) (105,122) 20,726 
Book income and tax income differences, including debt origination, structuring fees, dividends, realized gains and changes in estimates 70,709  127,304  72,389 
Estimated taxable income (1) 338,838  422,922  312,589 
Taxable income earned in prior year and carried forward for distribution in current year 120,488  56,142  49,216 
Taxable income earned prior to period end and carried forward for distribution next period (103,416) (142,588) (76,510)
Dividend payable as of period end and paid in the following period 23,358  22,100  20,368 
Total distributions accrued or paid to common stockholders $ 379,268  $ 358,576  $ 305,663 
___________________________
(1)MSCC’s taxable income for each period is an estimate and will not be finally determined until MSCC files its tax return for each year. Therefore, the final taxable income, and the taxable income earned in each period and carried forward for distribution in the following period, may be different than this estimate.
Schedule of Components of Income Tax Provision The income tax expense, or benefit, and the related tax assets and liabilities generated by the Taxable Subsidiaries, if any, are reflected in Main Street’s Consolidated Statements of Operations. Main Street’s provision for income taxes was comprised of the following for the years ended December 31, 2025, 2024 and 2023:
Year Ended December 31,
2025 2024 2023
(in thousands)
Net investment income taxes
Current tax expense (benefit):
Federal $ 1,651  $ 540  $ 1,198 
State and other (1,469) 1,989  2,245 
Excise 4,051  5,851  3,190 
Total current tax expense 4,233  8,380  6,633 
Deferred tax expense (benefit):
Federal 8,189  5,142  3,491 
State and other 1,601  136  (1,847)
Total deferred tax expense 9,790  5,278  1,644 
Total net investment income tax provision $ 14,023  $ 13,658  $ 8,277 
Investment valuation related taxes
Current tax benefit:
Federal $ (284) $ —  $ — 
Total current tax benefit (284) —  — 
Deferred tax expense (benefit):
Federal 12,367  20,707  10,690 
State and other 695  (3,732) 3,675 
Total deferred tax expense 13,062  16,975  14,365 
Total investment valuation related income tax provision $ 12,778  $ 16,975  $ 14,365 
Total income tax provision $ 26,801  $ 30,633  $ 22,642 
Schedule of Cash Flow, Supplemental Disclosures
Main Street’s income taxes paid (net of refunds received) was comprised of the following for the years ended December 31, 2025, 2024 and 2023:
Year Ended December 31,
2025 2024 2023
(in thousands)
Taxes Paid:
Federal and excise $ 17,656  $ 5,605  $ 6,459 
State 2,961  2,659  1,985 
Total taxes paid $ 20,617  $ 8,264  $ 8,444 
Schedule of Deferred Tax Assets and Liabilities
The significant components of net deferred tax assets and liabilities as of December 31, 2025 and 2024 are as follows:
December 31,
2025 2024
(in thousands)
Deferred tax assets:
Net operating loss carryforwards $ 3,233  $ 6,336 
Interest expense carryforwards 27,167  19,920 
Other 1,301  261 
Total deferred tax assets 31,701  26,517 
Deferred tax liabilities:
Net unrealized appreciation of portfolio investments (98,284) (99,708)
Net basis differences in portfolio investments (42,380) (12,920)
Total deferred tax liabilities (140,664) (112,628)
Total deferred tax liabilities, net $ (108,963) $ (86,111)