Palmer Square Capital BDC Inc. reported a net decrease in net assets resulting from operations of $3.2 million for the year ended December 31, 2025, compared to a net increase of $47.7 million for the year ended December 31, 2024. Total investment income for 2025 was $124.4 million, a decrease from $143.5 million in 2024. Net expenses also decreased to $70.9 million in 2025 from $80.9 million in the previous year. The company's net asset value per share decreased from $16.50 as of December 31, 2024, to $14.85 as of December 31, 2025.
The decrease in net investment income was primarily due to a decrease in interest income from investments, which totaled $118.3 million in 2025 compared to $137.5 million in 2024. The company also experienced net realized losses on investments of $13.2 million in 2025 and $17.8 million in 2024, as well as a net change in unrealized losses on investments of $43.4 million in 2025, compared to a net change in unrealized gains of $2.8 million in 2024. The weighted average total yield of debt and income-producing securities at fair value was 11.30% as of December 31, 2025, compared to 10.65% as of December 31, 2024.
Key operational developments included a decrease in the size of the investment portfolio at fair value from $1.3 billion as of December 31, 2024, to $1.2 billion as of December 31, 2025. The number of debt and equity investments increased slightly from 262 to 264, while the number of portfolio companies decreased from 207 to 205. The company repurchased 1,371,447 shares of its common stock for $18.0 million during 2025. PSCM purchased 136,255 shares of the Company's common stock pursuant to the PSCM Rule 10b5-1 Stock Purchase Plan and Extended PSCM Rule 10b5-1 Stock Purchase Plan.
In terms of financing arrangements, the company had $262.6 million outstanding under the Bank of America Credit Facility and $154.3 million outstanding under the Wells Fargo Credit Facility as of December 31, 2025. The company also had $300.0 million outstanding under the CLO Transaction. On November 4, 2025, the Company entered into a fifth amendment to the WF Credit Facility to increase the amount available for borrowing, extend the facility maturity date, extend the reinvestment period, update the applicable spread, and update the non-usage fee.
Looking ahead, Palmer Square Capital BDC Inc. intends to continue to focus on maximizing total return through investments in corporate debt securities and CLO structured credit funds. The company will also continue to monitor its portfolio investments and manage its capital resources to maintain compliance with regulatory requirements and financial covenants. The Board authorized the Company to repurchase an additional $5 million of shares of its common stock through its open-market share repurchase program and extended the Company’s open-market share repurchase program to expire on January 22, 2027.
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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