Cion Investment (CION) investor relations material

Executive summary

• Net investment income for Q4 2025 was $18.3 million ($0.35 per share), while earnings per share were $(0.80), reflecting significant unrealized losses.

• Net asset value (NAV) per share declined 7.4% to $13.76 from $14.86, mainly due to unrealized mark-to-market adjustments in select equity positions.

• Portfolio at fair value was $1.70 billion across 89 companies, with 80.8% in first lien debt and a weighted average yield of 10.72%.

• Portfolio companies, primarily serving U.S. middle market B2B sectors, are performing in line with or better than expectations.

• Announced $0.10 per share base distributions for each month of Q1 and Q2 2026, payable monthly.

Financial highlights

• Total investment income for Q4 2025 was $53.8 million, down from $78.7 million in Q3, primarily due to lower interest and transaction fee income.

• Net realized and unrealized losses for the quarter were $(59.4) million, leading to a net decrease in net assets from operations of $(41.1) million.

• Operating expenses decreased to $35.5 million from $40.1 million in Q3, mainly due to lower advisory fees.

• Distributions declared for Q4 2025 were $0.36 per share, with distribution coverage at 0.97x.

• Portfolio at fair value ended the quarter at $1.7 billion; weighted average yield on debt and income-producing investments was 10.7%.

Outlook and guidance

• Management expects continued resilience in the underlying domestic economy and supportive conditions for portfolio companies through 2026.

• Anticipates organic reduction in leverage through scheduled and unscheduled repayments and expects PIK income to decline as certain deals repay over the next 12-18 months.

• Management remains confident in the durability of the first lien-focused strategy, citing strong interest coverage and defensive portfolio construction.