Carlyle Credit Income (CCIF) Q4 2025 earnings summary

Executive summary

• Maintained monthly dividend at $0.105 per share (24.14% annualized) through February 2026, fully covered by core net investment income of $0.32 per share in Q4 2025.

• Portfolio optimization included $34.9 million in new CLO investments (13.65% weighted average GAAP yield) and $36.5 million in sales, with ongoing rotation to improve yield.

• Seven CLO refinancings and resets in Q4 reduced liability costs, extended reinvestment periods, and increased equity cash flows.

• Portfolio remains diversified, defensively positioned, and managed by experienced teams, with a focus on high-quality CLO equity investments.

• NAV per share was $6.13 at quarter end, with total portfolio fair value at $192.2 million and 54 CLO holdings.

Financial highlights

• Total investment income for Q4 2025 was $7.7 million (37 cents per share), with total expenses of $4.6 million and net investment income of $3.2 million (15 cents per share).

• Adjusted net investment income was $3.6 million (17 cents per share), and core net investment income was $0.32 per share, covering 102% of the monthly dividend.

• Net realized and unrealized losses were $(4.5) million, leading to a net loss of $(1.4) million for the quarter.

• Recurring cash flows per share were $0.51, supporting the dividend.

• Leverage (preferred shares and debt to total assets) was 0.39x at quarter end.

Outlook and guidance

• Dividend guidance maintained at $0.105 per share monthly through February 2026, supported by core net investment income and recurring cash flows.

• Expect increased loan activity in 2026, driven by declining base rates, regulatory normalization, and economic growth.

• CLOs are positioned to benefit from potential loan spread widening, which could boost equity returns.

• Ongoing focus on portfolio optimization and selective capital deployment for compelling relative value.

• Portfolio considered well positioned as market conditions evolve.