Fidus Investment (FDUS) investor relations material

Executive summary

• Adjusted net investment income (NII) reached $0.62 per share, up 14.8% year-over-year, and net investment income rose 35.2% to $24.6 million, driven by higher interest and fee income, including a significant one-time refinancing fee.

• Portfolio remains healthy and diversified, with strong credit quality, low non-accruals, and a focus on lower middle market companies across 97 active companies and 7 residual investments.

• Emphasis on stable dividends, capital preservation, and NAV growth, supported by a seasoned management team and robust sponsor relationships.

• Deal activity was modest, but the company maintains a robust pipeline and strong liquidity position.

• Board declared Q2 2026 dividends totaling $0.62 per share (base $0.43, supplemental $0.19), reflecting surplus adjusted NII.

Financial highlights

• Total investment income for Q1 2026 was $47.5 million, a 30.2% year-over-year increase, mainly due to a $6.9 million one-time fee from a portfolio company refinancing.

• Net investment income per share was $0.65, up from $0.53 in Q4; adjusted NII was $0.62 per share, up from $0.52.

• Net realized losses totaled $12.2 million, primarily from a $15.8 million loss on City Connector, partially offset by $3.9 million in realized equity gains.

• Net asset value (NAV) held steady at $742 million, or $19.55 per share.

• Portfolio fair value at quarter end was $1.4 billion, equal to 102.5% of cost.

Outlook and guidance

• Management expects originations to be decent in Q2, with repayments likely lighter, and anticipates continued portfolio growth and monetization of mature equity investments.

• M&A activity remains subdued due to macro and geopolitical uncertainties, but pent-up demand and lower middle market fragmentation should provide ongoing opportunities.

• Management expects adequate liquidity for at least the next 12 months, supported by cash, credit facilities, and anticipated investment income.