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Get filing alertsBCSF reports Q2 NAV decline to $16.65, non-accruals double to 3.2%; declares $0.42 Q3 dividend
Filed August 10, 2026 · Period ending August 10, 2026 · ~1 min read
Key Changes
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Non-accrual investments more than doubled to 3.2% of portfolio at amortized cost (2.2% at fair value) from 1.4% (0.6% at fair value) prior quarter, with four portfolio companies on non-accrual status.
Exhibit 99.1 view on EDGAR → -
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NAV per share declined from $16.86 to $16.65 quarter-over-quarter, driven by $14.6 million in net realized and unrealized losses despite $0.44 per share NII (10.5% annualized yield on book value).
Exhibit 99.1 view on EDGAR → -
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Board declared Q3 2026 dividend of $0.42 per share (matching Q2 level), payable September 29, 2026 to shareholders of record as of September 15, 2026.
Item 8.01 verify on EDGAR → -
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Portfolio contracted by net $95.2 million as $277.2 million in repayments and sales exceeded $182.0 million in new fundings; net debt-to-equity improved from 1.28x to 1.22x.
Exhibit 99.1 view on EDGAR → -
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Net income of $0.22 per share (5.2% annualized return on book value) reflected the gap between $0.44 NII and unrealized depreciation in the portfolio.
Exhibit 99.1 view on EDGAR →
Summary
Bain Capital Specialty Finance reported Q2 2026 results showing deteriorating credit quality alongside stable income generation. The BDC's non-accrual investments more than doubled during the quarter to 3.2% of the portfolio at amortized cost, with four portfolio companies now on non-accrual status. This credit stress drove $14.6 million in net realized and unrealized losses, pushing NAV per share down from $16.86 to $16.65 despite solid net investment income of $0.44 per share.
The company maintained its quarterly dividend at $0.42 per share for Q3 2026, representing 95% NII coverage based on Q2 earnings. The portfolio contracted by $95.2 million net as repayments outpaced new fundings, reducing leverage from 1.28x to 1.22x debt-to-equity. For BDC investors, the key watch is whether non-accruals stabilize or continue climbing—the doubling in one quarter signals meaningful stress in a subset of the portfolio, and further deterioration would pressure both NAV and the sustainability of the current dividend rate given the already-tight coverage ratio.
Section-by-Section Diff
Event · Item 8.01 — Other Events
Item 8.01 — Other Events filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
the Company issued a press release announcing the declaration of a third fiscal quarter 2026 dividend of $0.42 per share. The third fiscal quarter 2026 dividend of $0.42 per share is for stockholders of record as of September 15, 2026 and payable on September 29, 2026.
Bain Capital Specialty Finance declared a quarterly dividend of $0.42 per share for the third fiscal quarter of 2026. Shareholders who own stock as of the September 15, 2026 record date will receive payment on September 29, 2026.
Event · Exhibit 99.1
BCSF reported Q2 2026 results with NII of $0.44/share, NAV decline to $16.65, non-accruals rising to 3.2% of portfolio, and declared Q3 dividend of $0.42/share.
Added in current filing · view on EDGAR →
Net investment income (NII) per share was $0.44, equating to an annualized NII yield on book value of 10.5%(1); • Net income per share was $0.22, equating to an annualized return on book value of 5.2%(1); • Net asset value per share as of June 30, 2026 was $16.65, as compared to $16.86 as of March 31, 2026;
BCSF generated net investment income of $0.44 per share in Q2 2026, yielding 10.5% annualized on book value. Net income was $0.22 per share, reflecting a 5.2% annualized return. Net asset value per share declined from $16.86 at March 31, 2026 to $16.65 at June 30, 2026, driven by net realized and unrealized losses of $14.6 million during the quarter.
Added in current filing · view on EDGAR →
For the three months ended June 30, 2026 and March 31, 2026, total investment income was $62.3 million and $66.2 million, respectively. Total expenses (before taxes) for the three months ended June 30, 2026 and March 31, 2026 were $33.0 million and $37.9 million, respectively. Net investment income for the three months ended June 30, 2026 and March 31, 2026 was $28.6 million or $0.44 per share and $27.4 million or $0.42 per share, respectively.
Total investment income declined from $66.2 million in Q1 2026 to $62.3 million in Q2 2026, while total expenses decreased from $37.9 million to $33.0 million. Net investment income increased slightly from $27.4 million ($0.42 per share) in Q1 to $28.6 million ($0.44 per share) in Q2, driven by the expense reduction.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 11, 2026 · How we verify