Palmer Square Capital BDC Inc. reported its financial results for the third quarter of 2025, revealing a total investment income of $31.7 million, a decrease from $37.3 million in the same period last year. For the nine months ending September 30, 2025, total investment income was $94.6 million, down from $108.6 million in 2024. The company experienced a net investment income of $13.6 million for the quarter, compared to $15.7 million in the prior year, while the nine-month figure fell to $40.4 million from $47.8 million. The net increase in net assets resulting from operations was $3.4 million for the quarter, significantly lower than the $7.6 million reported in the same quarter of 2024.
The company's total assets decreased to $1.28 billion as of September 30, 2025, down from $1.43 billion at the end of 2024. This decline was primarily attributed to a reduction in the fair value of non-controlled, non-affiliated investments, which fell to $1.26 billion from $1.41 billion. The net asset value per common share also decreased to $15.39 from $16.50. The company’s liabilities decreased to $791.1 million, down from $893.2 million, reflecting a reduction in credit facilities and notes payable.
In terms of operational developments, Palmer Square Capital BDC reported a total of 262 debt and equity investments across 209 portfolio companies, with an aggregate fair value of approximately $1.26 billion. The company’s investment strategy continues to focus on corporate debt securities, with a weighted average total yield to maturity of 10.07% as of September 30, 2025. The company also noted a significant increase in cash and cash equivalents, which rose to $4.2 million from $1.8 million at the end of 2024.
Looking ahead, Palmer Square Capital BDC anticipates continued challenges in the investment environment, particularly due to the impact of fluctuating interest rates and market conditions. The company has maintained a strong asset coverage ratio of 165%, allowing it to continue leveraging its credit facilities. The management remains focused on maximizing total return through strategic investments while navigating the complexities of the current economic landscape. The company also plans to continue its dividend reinvestment plan, which allows stockholders to reinvest dividends into additional shares of common stock.
About Palmer Square Capital BDC Inc.
Palmer Square Capital BDC Inc. is a Maryland-based financial services firm specializing in lending to and investing in corporate debt securities of U.S. private and public companies. Its core activities include providing senior secured loans, CLO investments, and structured credit funds. The company focuses on generating total returns through credit analysis, diversified investments, and leveraging structured credit markets, serving institutional investors with a competitive edge in private credit and structured finance.
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