NexPoint Capital, Inc. reported a significant decline in its financial performance for the second quarter of 2026 compared to the same period in 2025. The company generated total investment income of $353.98 million for the three months ended June 30, 2026, down from $548.56 million in the prior year. For the first half of 2026, total investment income was $815.07 million, compared to $1.20 billion for the same period in 2025. The decrease in revenue was primarily attributed to lower interest income from non-controlled, non-affiliated investments, which fell to $120.17 million from $267.80 million year-over-year.
The company's net investment income before income taxes also saw a decline, reporting $49.65 million, or $0.01 per share, for the second quarter of 2026, down from $215.81 million, or $0.03 per share, in the same quarter of 2025. For the six months ended June 30, 2026, net investment income was $191.39 million, or $0.02 per share, compared to $484.81 million, or $0.06 per share, in the previous year. The company experienced net realized losses of $46.69 million for the second quarter, contrasting with net realized gains of $103.54 million in the prior year.
Operationally, NexPoint Capital's investment portfolio as of June 30, 2026, had a total fair value of $38.36 million, consisting of 21 interests in portfolio companies. The portfolio was primarily concentrated in healthcare (37.3%), real estate (16.9%), and telecommunication services (19.2%). The company did not make any new long or short investments during the first half of 2026, but it generated proceeds of $1.99 billion from sales and principal repayments of long investments. The weighted average cost of debt investments in the portfolio was 99.6% of par value, with an estimated gross annual portfolio yield of 75.7%.
Looking ahead, NexPoint Capital's management expressed a cautious outlook, emphasizing the need to navigate market conditions and the performance of its portfolio companies. The company continues to focus on generating high current income and long-term capital appreciation through investments in middle-market companies, particularly in the healthcare sector. The management also highlighted the importance of maintaining its status as a regulated investment company (RIC) to avoid corporate-level federal income taxes, which requires distributing at least 90% of its taxable income to shareholders. The company plans to continue its quarterly distribution of $0.09 per share, maintaining a consistent payout to its investors.
About NexPoint Capital, Inc.
NexPoint Capital, Inc. is a non-diversified, closed-end management investment company regulated as a business development company (BDC). It primarily invests in middle-market healthcare and non-healthcare companies, focusing on debt, equity, CLOs, and structured products. The firm seeks to generate current income and capital appreciation through disciplined sourcing, due diligence, and active portfolio management in the U.S. market.
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