Portman Ridge Finance Corporation Reports Q2 2025 Financial Results with Decreased Net Investment Income

Portman Ridge Finance Corporation reported its financial results for the second quarter of 2025, revealing a net investment income of approximately $4.6 million, or $0.50 per share, compared to $6.5 million, or $0.70 per share, for the same period in 2024. For the six months ended June 30, 2025, net investment income totaled $8.9 million, down from $12.7 million in the prior year. The company’s total investment income for the second quarter was approximately $12.6 million, a decrease from $16.3 million in the same quarter last year. The decline in revenue was attributed to lower interest income from non-controlled/non-affiliated investments, which fell to $8.5 million from $11.9 million year-over-year.

The company’s total assets decreased to $428.0 million as of June 30, 2025, down from $453.6 million at the end of 2024. This decline was primarily driven by a reduction in the fair value of investments, which totaled $395.1 million, compared to $405.0 million at the end of the previous fiscal year. The net asset value per share also fell to $17.89 from $19.41, reflecting a decrease in total net assets to $164.7 million from $178.5 million. The company’s liabilities decreased to $263.3 million, down from $275.1 million, largely due to a reduction in the outstanding balance of its revolving credit facility.

In terms of operational developments, Portman Ridge's investment portfolio consisted of 96 portfolio companies as of June 30, 2025, with a fair value of approximately $395.1 million. The company made approximately $10.9 million in investments during the quarter, while repayments and sales totaled about $17.0 million, resulting in net repayments of approximately $6.1 million. The company’s debt investment portfolio was diversified across 25 different industries, with a weighted average annualized yield of approximately 10.7%. However, six of its debt investments were on non-accrual status, representing 4.8% of the investment portfolio's amortized cost.

Strategically, Portman Ridge announced the completion of its acquisition of Logan Ridge Finance Corporation on July 15, 2025, which is expected to enhance the company's scale and diversify its portfolio. The merger is anticipated to provide cost savings and improve stock trading liquidity, ultimately aiming to deliver better risk-adjusted returns for shareholders. The company also declared a regular quarterly distribution of $0.47 per share and a supplemental cash distribution of $0.02 per share, payable on August 29, 2025.

Looking ahead, Portman Ridge aims to leverage its enhanced scale from the recent acquisition to pursue additional investment opportunities while maintaining compliance with regulatory requirements. The company continues to focus on generating current income and capital appreciation through its investments in middle-market companies, while managing its liquidity and capital resources effectively to meet operational needs and shareholder distributions.