BlackRock TCP Capital (TCPC) Q1 2026 earnings summary

Executive summary

• Strategic priorities included improving credit quality, repositioning the portfolio toward senior secured loans, and strengthening the balance sheet, with 91.8% of assets in senior secured debt and a focus on first lien loans.

• Non-accruals declined to 2.8% at fair value, down from 4.4% a year ago, reflecting successful restructurings and asset sales.

• Net asset value (NAV) per share declined 4.9% to $6.72 from $7.07 at year-end 2025, mainly due to $35 million in net portfolio markdowns.

• Adjusted net investment income was $0.21 per share, covering the $0.17 dividend and yielding an annualized ROE of 11.8%.

• The merger with BlackRock Capital Investment Corporation was completed in March 2024, resulting in a purchase discount allocated to acquired assets and no goodwill recognized.

Financial highlights

• Portfolio fair market value at quarter end was $1.4 billion across 139 companies, with 91.8% in debt and 8.2% in equity investments.

• Total investment income for Q1 2026 was $42.6 million ($0.51 per share), down from $55.9 million in Q1 2025.

• Net investment income was $18.5 million ($0.22 per share), compared to $32.2 million in Q1 2025.

• Net realized and unrealized losses totaled $(34.8) million, primarily from restructurings in Alpine, Fishbowl, and Suited Connector.

• Net regulatory leverage was 1.29x, down from 1.41x last quarter.

Outlook and guidance

• Management expects continued volatility in credit markets and interest rates, with a focus on principal protection, disciplined investment selection, and ongoing portfolio repositioning.

• Continued focus on deploying capital into high-quality, less-cyclical businesses and leveraging BlackRock’s PFS platform for sourcing and origination.

• Commitment to maintaining RIC status and distributing at least 90% of taxable income.