FS KKR Capital (FSK) Q4 2025 earnings summary

Executive summary

• Net investment income for Q4 2025 was $135 million ($0.48 per share), down from $159 million ($0.57 per share) in Q3 2025; full-year 2025 net investment income was $2.34 per share, down from $2.90 in 2024.

• Net asset value per share declined to $20.89 at year-end 2025 from $21.99 at the end of Q3 2025 and $23.64 at year-end 2024.

• Achieved $2.80 per share in total distributions for 2025, supported by increased spillover income.

• Optimized capital structure with $400 million in new unsecured notes, a $400 million lending facility, two new CLOs, and improved revolver terms.

• Portfolio comprised 232 companies across 23 industries, with top 10 holdings representing 19% of fair value.

Financial highlights

• Adjusted net investment income for Q4 2025 was $0.52 per share, down from $0.57 in Q3 2025.

• Total investment income for Q4 2025 was $348 million, down from $373 million in Q3.

• Net realized and unrealized losses per share were ($0.89) in Q4 2025, compared to $0.19 in Q3 2025.

• Q4 distribution was $0.70 per share; Q1 2026 distribution set at $0.48 per share (base $0.45, supplemental $0.03).

• Available liquidity at quarter-end was $3.8 billion.

Outlook and guidance

• 2026 dividend yield expected to be around 9% of NAV, down from prior 10% estimate due to higher nonaccruals.

• Management aims to stabilize challenged investments in 2026 and focus on high-quality new originations, primarily in first lien senior secured structures.

• Q1 2026 GAAP net investment income guidance is $0.45 per share; adjusted NII $0.44 per share.

• Recurring interest income expected at $226 million, with $60 million from JV dividends.

• Dividend yield on NAV per share was 9.2% and on market value was 14.8% as of February 20, 2026.