Fidus Investment Corporation (FIC) reported a total investment income of $47.5 million for the three months ended March 31, 2026, marking a 30.2% increase from $36.5 million in the same period last year. This growth was primarily driven by a $4.8 million rise in interest income, attributed to an increase in average debt investment balances, despite a slight decrease in the weighted average yield on those investments. Additionally, fee income surged by $6.8 million, largely due to a one-time fee from a portfolio company’s debt refinancing. However, dividend income fell by $0.9 million, reflecting reduced distributions from equity investments.
Total expenses for the first quarter of 2026 were $22.9 million, up 25.2% from $18.3 million in the prior year. The increase was largely due to a $3.0 million rise in interest and financing expenses, driven by higher average borrowings and interest rates. The base management fee also increased by $1.0 million, correlating with higher average total assets. Despite these rising costs, net investment income rose to $24.6 million, a 35.2% increase from $18.2 million in the previous year.
FIC's net assets as of March 31, 2026, totaled $742.0 million, with a net asset value per share of $19.55, unchanged from the previous quarter. The company maintained a diversified investment portfolio, with total investments valued at $1.4 billion, comprising 97 active portfolio companies. The weighted average yield on debt investments was reported at 12.5%, slightly down from 12.6% at the end of 2025. The company also experienced a net change in unrealized appreciation of $7.7 million during the quarter, contrasting with a depreciation of $9.8 million in the same period last year.
Operationally, FIC made investments totaling $118.6 million during the first quarter, slightly higher than the $115.6 million invested in the same period of 2025. The company received $73.1 million from sales and repayments of investments, compared to $57.3 million in the prior year. As of March 31, 2026, FIC had cash and cash equivalents of $49.7 million and restricted cash of $0.7 million, providing adequate liquidity to meet its operational needs and commitments.
Looking ahead, FIC plans to continue leveraging its SBIC licenses to access favorable financing options and enhance returns for shareholders. The company has also declared a regular quarterly dividend of $0.43 per share, along with a supplemental dividend of $0.19 per share, payable on June 29, 2026. The management remains optimistic about future investment opportunities, despite potential economic challenges, and is committed to maintaining a diversified portfolio to mitigate risks.
About FIDUS INVESTMENT Corp
Fidus Investment Corporation is a business development company providing debt and equity financing to lower middle-market U.S. companies. It offers customized financing solutions, primarily in the form of senior secured loans and minority equity investments, targeting industries like technology, healthcare, industrials, and business services. The company aims to generate attractive risk-adjusted returns through active portfolio management and strategic partnerships.
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