Main Street Capital (MAIN) investor relations material

Executive summary

• Achieved strong Q2 2026 operating results with annualized ROE of 18.9%, net investment income of $90.3 million ($0.97/share), and distributable net investment income of $97.4 million ($1.04/share), reflecting platform and portfolio strength.

• Net asset value per share reached a record $33.92, up 1.4% sequentially and 5% year-over-year.

• Realized a $46 million gain from the exit of Centre Technologies, highlighting the success of the lower middle market strategy.

• Declared a supplemental dividend of $0.30 per share for September 2026 and increased regular monthly dividends for Q4 2026 by 3.9% year-over-year.

• Strengthened capital structure and maintained conservative leverage, positioning for continued portfolio growth.

Financial highlights

• Total investment income for Q2 2026 was $149.6 million, up 4% year-over-year and 6.8% sequentially.

• Interest income rose by $11.8 million (12% year-over-year), while dividend income decreased by $10.4 million (28% year-over-year); fee income increased by $4.3 million (81% year-over-year).

• Operating expenses rose by $5.1 million year-over-year, mainly due to higher interest and compensation expenses; total expenses for Q2 were $55.8 million, up 10%.

• Net fair value appreciation of $65 million and net realized gains of $33 million, primarily from the Centre Technologies exit.

• Net increase in net assets from operations was $147.6 million ($1.58/share), up 20% year-over-year.

Outlook and guidance

• Expect Q3 2026 DNII before taxes of at least $0.97 per share, reflecting lower non-recurring income and higher capital costs.

• Anticipate continued favorable performance and potential for additional significant supplemental dividends in December 2026.

• Management expressed confidence in sustainability of strong results, citing diversified investment strategy, cost-efficient operations, and conservative capital structure.

• Investment pipelines for both lower middle market and private loans characterized as average, with confidence in future opportunities.

• The company expects to continue funding investments through cash, operating cash flows, credit facilities, and future debt/equity issuances.