NexPoint Capital Reports Net Investment Loss of $231,994 for Year Ended December 31, 2025

NexPoint Capital, Inc., an externally managed, non-diversified, closed-end management investment company regulated as a business development company (BDC), reported its financial results for the year ended December 31, 2025. The company's investment objective is to generate current income and capital appreciation through investments in middle-market healthcare and non-healthcare companies, syndicated floating rate debt, and collateralized loan obligations (CLOs). As of December 31, 2025, the fair value of the company's investment portfolio totaled $37.6 million, comprising 14.2% in first lien senior secured loans, 0.7% in corporate bonds, 32.2% in common stock, 30.0% in preferred stock, and 22.9% in LLC interests across 23 portfolio companies.

For the year ended December 31, 2025, NexPoint Capital reported a net investment loss of $(231,994), or $(0.03) per share, compared to a net investment income of $655,661, or $0.07 per share, for the year ended December 31, 2024. The company's total investment income was $1.14 million, a decrease from $2.24 million in the previous year. Operating expenses totaled $1.37 million, which included $785,865 in base management fees and $163,446 in administrative service expenses paid to the Adviser. The company also experienced a net realized loss of $(70,279) and a net change in unrealized depreciation of $(3.56) million on its investments.

Key operational developments included a decrease in the portfolio's estimated gross annual yield to 2.49%, based on amortized cost, compared to 2.45% in the prior year. The company's investment strategy remained focused on middle-market companies, with a significant emphasis on the healthcare sector. As of December 31, 2025, the company's net assets totaled $36.74 million, resulting in a net asset value (NAV) per share of $4.39, a decrease from $5.21 in the previous year. The company's board declared a cash distribution of $0.09 per share, payable on January 23, 2026, to stockholders of record on December 31, 2025.

Significant changes during the year included the expiration of $377,594 of expense reimbursements that were eligible for recoupment by the Adviser. The company's investment activities were managed by the Adviser, NexPoint Advisors, L.P., under the supervision of the Board. The company's investment policy remained consistent, with at least 80% of total assets invested in debt and equity of middle-market companies, with an emphasis on healthcare companies, syndicated floating rate debt, and mezzanine and equity tranches of CLOs. The company's strategy also includes opportunistic investments in distressed companies and other areas where the Adviser has expertise.