PhenixFIN Reports Q3 Financial Results with Net Decrease in Assets and Increased Investment Income

PhenixFIN Corporation reported its financial results for the third quarter and nine months ended June 30, 2025, revealing a net decrease in net assets resulting from operations of $1.5 million, compared to a net increase of $2.6 million in the same period last year. For the nine months, the company recorded a modest net increase of $71,000, a significant decline from the $12.5 million reported for the same period in 2024. The weighted average basic and diluted earnings per share were $(0.74) for the quarter and $0.03 for the nine months, down from $1.29 and $6.11, respectively, in the prior year.

Total investment income for the quarter was approximately $6.2 million, slightly lower than the $6.2 million reported in the previous year. For the nine-month period, investment income increased to $18.4 million from $16.6 million, driven primarily by higher interest income from investments. However, the company faced net realized losses on investments of $12.0 million for the quarter and $11.9 million for the nine months, largely attributed to significant losses on specific portfolio companies.

PhenixFIN's total assets as of June 30, 2025, stood at $306.8 million, a slight increase from $302.8 million at the end of the previous fiscal year. The company’s investment portfolio, valued at $294.4 million, included a mix of non-controlled, affiliated, and controlled investments. The fair value of investments increased from $227.9 million in September 2024, reflecting strategic investment activities and market conditions. The company reported a net asset value per share of $78.20, down from $79.37 at the end of the previous fiscal year.

Operationally, PhenixFIN has continued to expand its investment activities, with total investments made during the nine months reaching $159.5 million, compared to $85.5 million in the same period last year. The company also reported a significant increase in borrowings under its revolving credit facility, which amounted to $87.0 million as of June 30, 2025, up from $78.1 million in September 2024. This increase in leverage reflects the company's strategy to capitalize on investment opportunities while maintaining compliance with regulatory asset coverage requirements.

Looking ahead, PhenixFIN remains focused on generating current income and capital appreciation through its investment strategies. The company continues to monitor market conditions and adjust its portfolio accordingly, while also managing its debt levels to ensure compliance with regulatory requirements. The management expressed optimism about future performance, contingent on market stability and the successful execution of its investment strategy.