First Quarter 2026 Net Investment Income of $0.93 Per Share

First Quarter 2026 Distributable Net Investment Income⁽¹⁾ of $1.00 Per Share

First Quarter 2026 Distributable Net Investment Income Before Taxes⁽²⁾ of $1.04 Per Share

Net Asset Value of $33.46 Per Share

HOUSTON , May 7, 2026 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce its financial results for the first quarter ended March 31, 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.

First Quarter 2026 Highlights

• Net investment income ("NII") of $84.6 million, or $0.93 per share
• Distributable net investment income ("DNII")⁽¹⁾ of $90.8 million, or $1.00 per share
• DNII before taxes⁽²⁾ of $94.1 million, or $1.04 per share
• Total investment income of $140.1 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 March 31, 2026
• Net asset value of $33.46 per share as of March 31, 2026, representing an increase of $0.13 per share, or 0.4%, compared to $33.33 per share as of December 31, 2025
• Declared regular monthly dividends totaling $0.78 per share for the second quarter of 2026, or $0.26 per share for each of April, May and June 2026, representing a 4.0% increase from the regular monthly dividends paid in the second quarter of 2025
• Declared and paid a supplemental dividend of $0.30 per share, resulting in total dividends paid in the first quarter of 2026 of $1.08 per share and representing a 2.9% increase from the total dividends paid in the first quarter of 2025
• Completed $205.9 million in total lower middle market ("LMM") portfolio investments, including investments totaling $104.8 million in three new portfolio companies, 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 $157.1 million in the total cost basis of the LMM investment portfolio
• Completed $149.1 million in total private loan portfolio investments, which after aggregate repayments, return of invested equity capital and a decrease in cost basis due to realized losses resulted in a net increase of $36.6 million in the total cost basis of the private loan investment portfolio
• Fully exited investments in KBK Industries, LLC, realizing a gain of $17.3 million, which in addition to the total dividends of $25.1 million received over the life of the equity investment, resulted in annual internal rate of returns and times money invested returns of 127.2% and 62.7 times, respectively, on the equity investment, and 27.7% and 3.5 times, respectively, including all debt and equity investments in the company on a cumulative basis since Main Street's initial investment in 2006
• Further enhanced our liquidity position and strengthened our capital structure by (i) adding a new lender relationship and expanding the total commitments under our Corporate Facility by $30.0 million to a total of $1.175 billion and (ii) issuing an additional $200.0 million of the March 2029 Notes (with our Corporate Facility and the March 2029 Notes each as defined in the Liquidity and Capital Resources section below)

In commenting on the Company's operating results for the first quarter of 2026, Dwayne L. Hyzak, Main Street's Chief Executive Officer, stated, "We are pleased with our performance in the first quarter, particularly given the backdrop of significant economic and geopolitical uncertainty, which resulted in distributable net investment income before taxes in line with our expectations and prior guidance. 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. Consistent with our experience in prior periods of broad economic uncertainty, we believe that our ability to provide highly flexible and customized financing solutions to lower middle market companies and their owners and management teams, together with our differentiated long-term to permanent holding periods, represents an even more attractive solution to the needs of many lower middle market companies, and we are excited about our prospects for continued near-term growth of our lower middle market investment strategy. Similarly, in our private loan investment strategy, we are seeing an improved lending environment and significant opportunities, which we believe positions us well to capitalize on new private loan investment opportunities and to generate attractive returns on those investments."

Mr. Hyzak continued, "We are pleased to have completed significant investments in our lower middle market investment strategy in the first quarter, following our very strong investment activity in the fourth quarter of 2025, resulting in significant growth of our lower middle market investment portfolio over the last two quarters. Our first quarter results and investment activity, continued attractive investment pipeline and favorable outlook for the second quarter resulted in the declaration of another $0.30 per share supplemental dividend to be paid in June 2026, representing our nineteenth 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, and the benefits of our recent follow-on issuance of investment grade notes in March 2026 and private placement issuance of investment grade notes 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, our cost efficient operating structure and conservative capital structure, will allow us to continue to deliver superior results for our shareholders."

First Quarter 2026 Operating Results

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

The $3.1 million increase in total investment income in the first quarter of 2026 from the comparable period of the prior year was principally attributable to (i) a $7.3 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 $3.6 million increase in fee income, primarily due to a $2.6 million increase in fee income related to increased investment activity and a $1.0 million increase in fee income from the refinancing and prepayment of investment portfolio debt investments. These increases were partially offset by a $7.8 million decrease in dividend income, primarily due to an $8.0 million decrease in dividend income from our LMM portfolio companies and a $0.7 million decrease in dividend income from our private loan portfolio companies, partially offset by a $0.6 million increase in dividend income from our other portfolio investments. The $3.1 million increase in total investment income in the first quarter of 2026 includes the impact of an increase of $1.7 million in certain income considered less consistent or non-recurring, primarily related to increases of (i) $1.0 million in such fee income and (ii) $0.7 million in such dividend income, in each case when compared to the same period in 2025.

Total cash expenses⁽⁴⁾ increased $3.8 million, or 9.1%, to $46.1 million in the first quarter of 2026 from $42.2 million for the same period in 2025. This increase in total cash expenses was principally attributable to (i) a $2.9 million increase in interest expense and (ii) a $0.8 million increase in cash compensation expenses.⁽⁴⁾ The increase in interest expense is primarily related to an increase in average borrowings outstanding used to fund a portion of the growth of our investment portfolio, partially offset by (i) a decreased weighted-average interest rate on our Credit Facilities due to decreases in benchmark index rates and decreases to the applicable margin rates resulting from the amendments of our Credit Facilities in April 2025 and (ii) a decreased weighted-average interest rate on our unsecured debt obligations resulting from the repayment in September of 2025 of the $150.0 million of unsecured notes with a maturity date in December of 2025 and the issuance of the August 2028 Notes (as defined in the Liquidity and Capital Resources section below). The increase in cash compensation expenses⁽⁴⁾ is primarily related to increases in base compensation rates and other employee compensation related accruals.

Non-cash compensation expenses⁽⁴⁾ increased $1.2 million in the first quarter of 2026 from the comparable period of the prior year, primarily driven by a $0.9 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 first quarter of 2026, an increase from 1.2% for the first quarter of 2025.

Excise tax expense decreased $1.0 million and NII related federal and state income and other tax expenses increased $0.3 million in the first quarter of 2026 compared to the same period in 2025, resulting in a net decrease in tax expenses included in NII of $0.6 million. The decrease in excise tax is due to a decrease in undistributed taxable income as of March 31, 2026 and the increase in NII related federal and state income and other tax expenses is due to an increase in taxable NII between the relevant periods.

The $1.3 million decrease in NII and the $0.1 million decrease in DNII⁽¹⁾ in the first quarter of 2026 from the comparable period of the prior year were both principally attributable to an increase in total expenses, partially offset by (i) the increase in total investment income and (ii) the decrease in NII related tax expenses, each as discussed above. NII and DNII⁽¹⁾ on a per share basis decreased by $0.04 per share and $0.02 per share, respectively, for the first quarter of 2026 as compared to the first quarter of 2025, to $0.93 per share and $1.00 per share, respectively. These decreases include the impact of a 2.2% increase in the weighted-average shares outstanding compared to the first 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 decrease in NII on a per share basis in the first quarter of 2026 is after a net increase of $0.01 per share resulting from items considered less consistent or non-recurring in nature compared to the first quarter of 2025, including a $0.02 per share increase in such investment income, partially offset by a $0.01 per share increase in deferred compensation expenses, each as discussed above. The decrease in DNII⁽¹⁾ on a per share basis in the first quarter of 2026 is after a $0.02 per share increase in investment income considered less consistent or non-recurring in nature compared to the first quarter of 2025, as discussed above.

The $49.0 million net increase in net assets resulting from operations in the first quarter of 2026 represents a $67.1 million decrease from the first quarter of 2025. This decrease was primarily the result of (i) a $66.3 million decrease 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 decrease resulting from a net fair value decrease of $32.6 million in the first quarter of 2026 compared to a net fair value increase of $33.6 million in the prior year and (ii) a $1.3 million decrease in NII as discussed above, with these decreases partially offset by a $0.5 million decrease in net tax provision on the net fair value change of our portfolio investments resulting from a net tax provision of $3.0 million in the first quarter of 2026 compared to a net tax provision of $3.5 million in the comparable period of the prior year. The $32.6 million net fair value decrease in the first quarter of 2026 was the result of net unrealized depreciation (including the reversal of net fair value appreciation recognized in prior periods due to the net realized gain in the quarter) of $50.6 million, partially offset by a net realized gain of $18.0 million. The $33.6 million net fair value increase in the first quarter of 2025 was the result of net unrealized appreciation of $63.2 million, partially offset by a net realized loss of $29.5 million. The $18.0 million net realized gain from investments for the first quarter of 2026 was primarily the result of (i) a $17.3 million realized gain on the full exit of a LMM portfolio investment, (ii) a $7.8 million realized gain on the full exit of a private loan portfolio investment and (iii) $1.8 million of realized gains on the partial exits of two other portfolio investments, partially offset by (i) $7.8 million of realized losses on the full exits of two private loan portfolio investments and (ii) a $1.6 million realized loss on the full exit of a LMM portfolio investment.

The following table provides a summary of the total net unrealized depreciation of $50.6 million for the first quarter of 2026:

Liquidity and Capital Resources

As of March 31, 2026, we had aggregate liquidity of $1.406 billion, including (i) $20.8 million in cash and cash equivalents and (ii) $1.385 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 March 31, 2026 are as follows:

• The Corporate Facility included $1.175 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 $1.718 billion.
• $119.0 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 April 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.
• $267.0 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 April 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 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 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 4.4 years.
• 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 $3.1 billion, or $33.46 per share.

In April 2026, we issued $150.0 million in aggregate principal amount of 6.93% unsecured notes in a private placement (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.

Investment Portfolio Information as of March 31, 2026 ⁽⁵⁾

The following table provides a summary of the investments in our LMM portfolio and private loan portfolio as of March 31, 2026:

The fair value of our LMM portfolio company equity investments was 197% 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 2.5 to 1.0 and a median total EBITDA to senior interest expense ratio of 3.0 to 1.0. Including all debt that is junior in priority to our debt position, these median ratios were 2.5 to 1.0 and 2.9 to 1.0, respectively.⁽⁵⁾⁽⁶⁾

As of March 31, 2026, our investment portfolio also included:

• Other portfolio investments in 34 entities, spread across 13 investment managers, collectively totaling $138.5 million in fair value and $148.5 million in cost basis, which comprised 2.4% and 3.0% of our investment portfolio at fair value and cost, respectively;
• Middle market portfolio investments in 11 portfolio companies, collectively totaling $81.9 million in fair value and $121.4 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 $233.1 million and a cost basis of $29.5 million, which comprised 4.1% and 0.6% of our investment portfolio at fair value and cost, respectively.

As of March 31, 2026, investments on non-accrual status comprised 1.2% of the total investment portfolio at fair value and 4.0% at cost, and our total portfolio investments at fair value were 115% 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 first quarter of 2026, the External Investment Manager earned $10.3 million of total fee income, and waived $1.0 million of incentive fees, resulting in total fee income, net of waivers of $9.3 million, an increase of $0.7 million from the first quarter of 2025. The fee income earned by the External Investment Manager in the first quarter of 2026 included (i) $6.1 million of management fee income, an increase of $0.3 million from the first quarter of 2025, and (ii) incentive fees, net of waivers of $3.0 million, an increase of $0.3 million from the first quarter of 2025. We allocated $5.5 million of total expenses to the External Investment Manager during the first quarter of 2026, an increase of $0.1 million from the first quarter of 2025. The increase in management fee income was primarily attributable to an increase in total assets managed for clients. The increase in incentive fees, net of waivers, is the result of a an increase in gross incentive fees of $1.3 million, partially offset by the $1.0 million incentive fee waiver. The increase in gross incentive fees was primarily attributable to (i) the amended advisory agreement between the External Investment Manager and its client, MSC Income Fund, Inc., in conjunction with the listing of MSC Income Fund, Inc.'s shares on the New York Stock Exchange in January 2025 and (ii) improved operating results from the assets managed for clients in the first quarter of 2026 relative to the first 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 $8.3 million, representing an increase of $0.5 million from the first quarter of 2025.

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

First Quarter 2026 Financial Results Conference Call / Webcast

Main Street has scheduled a conference call for Friday, May 8, 2026 at 10:00 a.m. Eastern time to discuss the first 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, May 15, 2026 and may be accessed by dialing 201-612-7415 and using the passcode 13759637#. 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 March 31, 2026 to be filed with the U.S. Securities and Exchange Commission (the "SEC") (www.sec.gov) and Main Street's First 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