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Get filing alertsMidCap Financial reports Q1 NAV decline of 2.5% to $13.82/share on portfolio losses
Filed May 6, 2026 · Period ending May 6, 2026 · ~2 min read
Key Changes
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high
NAV per share fell 2.5% to $13.82 from $14.18 in Q4 2025, driven by portfolio losses from credit spread widening and weakness in certain positions, partially offset by accretive buybacks and net investment income.
Exhibit 99.1 view on EDGAR → -
high
Company repurchased 7.1M shares at $10.73 average price during Q1 for $76M, generating $0.24/share NAV accretion. An additional 2.8M shares bought April 1-13 at $11.58, fully utilizing repurchase program capacity.
Exhibit 99.1 view on EDGAR → -
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Net investment income of $0.38/share in Q1 2026, down slightly from $0.39 in Q4 2025. Board declared $0.31/share dividend payable June 25, 2026 to shareholders of record June 9, 2026.
Exhibit 99.1 view on EDGAR → -
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Net repayments totaled $142M including $22M from Merx Aviation Finance, reducing that position to 2.7% of portfolio. New commitments of $50M and gross fundings of $68M reflect prioritization of buybacks over new investments.
Exhibit 99.1 view on EDGAR → -
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Net leverage at 1.55x with $1.9B total debt outstanding. $125M senior unsecured notes mature July 16, 2026. Available capacity under revolving credit facility was $794M as of quarter-end.
Exhibit 99.1 view on EDGAR →
Summary
MidCap Financial Investment Corp reported Q1 2026 results showing a 2.5% decline in NAV per share to $13.82, down from $14.18 at year-end 2025. The decline was driven by net losses on the portfolio reflecting broader credit spread widening and credit weakness in certain positions.
These losses were partially offset by the accretive impact of share repurchases below NAV and net investment income exceeding the quarterly dividend. Net investment income came in at $0.38 per share, down modestly from $0.39 in the prior quarter. Management prioritized capital allocation toward share buybacks given the stock's significant discount to NAV.
During Q1, the company repurchased 7.1 million shares at an average price of $10.73 per share for $76 million, generating $0.24 per share of NAV accretion. An additional 2.8 million shares were repurchased in early April at $11.58 per share, fully utilizing the existing repurchase program capacity. New investment activity was modest with $50 million in commitments and $68 million in gross fundings, while net repayments totaled $142 million including a $22 million paydown from Merx Aviation Finance. The Board declared a $0.31 per share dividend payable in June. With $125 million of senior unsecured notes maturing in July 2026 and net leverage at 1.55x, near-term refinancing and the trajectory of portfolio credit quality warrant monitoring.
Section-by-Section Diff
Event · Exhibit 99.1
MFIC reported Q1 2026 results: NII $0.38/share, NAV declined 2.5% to $13.82/share on portfolio losses, repurchased 7.1M shares at $10.73 avg.
Added in current filing · view on EDGAR →
Net investment income per share for the quarter was $0.38, compared to $0.39 for the quarter ended December 31, 2025 ... Net asset value (“NAV”) per share as of the end of the quarter was $13.82, compared to $14.18 as of December 31, 2025, representing a 2.5% decrease. The decline was driven by a net loss on the portfolio, primarily reflecting the impact of broader credit spread widening and credit weakness on certain positions partially offset by the accretive impact of stock buybacks below NAV and net investment income in excess of the dividend
The company reported net investment income of $0.38 per share for Q1 2026, down slightly from $0.39 in Q4 2025. NAV per share declined 2.5% to $13.82 from $14.18, driven by portfolio losses from credit spread widening and credit weakness in certain positions. The decline was partially offset by accretive share buybacks below NAV and net investment income exceeding the dividend.
Added in current filing · view on EDGAR →
On May 5, 2026, the Company’s Board of Directors (the “Board”) declared a dividend of $0.31 per share payable on June 25, 2026, to stockholders of record as of June 9, 2026
The Board declared a quarterly dividend of $0.31 per share, payable June 25, 2026 to shareholders of record as of June 9, 2026. The filing notes there are no assurances the Board will continue to declare this base dividend level.
Added in current filing · view on EDGAR → · paraphrased
Net leverage was 1.55x as of March 31, 2026
As of March 31, 2026, the Company's outstanding debt obligations, excluding deferred financing cost and debt discount of $5.6 million, totaled $1.9 billion, which was comprised of $125 million of Senior Unsecured Notes, which will mature on July 16, 2026, $80 million of Senior Unsecured Notes, which will mature on December 15, 2028, $456 million outstanding secured debt in MFIC Bethesda CLO 1 LLC, $399 million outstanding secured debt in MFIC Bethesda CLO 2 LLC, and $816 million outstanding under the Company's senior secured, multi-currency, revolving credit facility (the "Facility" and as amended, the "Amended Senior Secured Facility"). As of March 31, 2026, no standby letters of credit were issued through the Facility. The available remaining capacity under the Facility was $794 million as of March 31, 2026
Net leverage increased to 1.55x as of March 31, 2026. Total debt outstanding was $1.9 billion, including $125 million of senior unsecured notes maturing July 16, 2026, $80 million maturing December 15, 2028, $456 million in CLO 1, $399 million in CLO 2, and $816 million under the revolving credit facility. Available capacity under the facility was $794 million.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 2, 2026 · How we verify