Pearl Diver Credit Company (PDCC) investor relations material

Executive summary

• Portfolio NAV reached $98.6 million as of December 31, 2025, with 57 CLOs managed by 33 managers and over 1,600 unique corporate debt exposures.

• Fourth quarter results were impacted by unrealized losses, but recurring cash flows and net investment income improved sequentially.

• Nearly the entire portfolio consists of CLOs with reinvestment periods ending in 2026 or later, providing flexibility for managers.

• The investment approach leverages machine learning, proprietary technology, and a diversified, actively managed CLO equity portfolio.

• Annualized dividend yield stood at 19.0% based on the year-end share price.

Financial highlights

• Investment income for Q4 2025 was $5.9 million ($0.86/share), up from $5.4 million in Q3.

• Net investment income rose to $3.4 million ($0.49/share) from $3.0 million ($0.44/share) in Q3.

• Net unrealized losses on investments totaled $15.7 million ($2.30/share); net realized loss was $35,000.

• Net loss for the quarter was $12.4 million ($1.81/share).

• Recurring cash flows from the CLO portfolio were $9.8 million ($1.44/share), exceeding distributions and expenses.

• Net asset value per share was $14.42 at year-end, down from $16.89 at September 30.

• Total net assets as of December 31 were $98.6 million.

Outlook and guidance

• Optimism for CLOs in 2026, with expectations of reduced spread compression and improved new loan issuance.

• Management remains focused on disciplined portfolio management and opportunistic investing for long-term total return.

• Machine learning and proprietary analytics are expected to continue driving risk management and portfolio construction.

• Declared monthly dividends of $0.22 per share for February through May 2026.

• Cautiously optimistic about increased M&A activity and new loan issuance in select sectors.