Investcorp Credit Management BDC (ICMB) Q1 2026 earnings summary

Executive summary

• Net asset value per share declined to $5.04 as of September 30, 2025, from $5.27 last quarter, with net assets down $3.3 million or 4.32% quarter-over-quarter, reflecting fair value adjustments and distributions exceeding NII.

• Investment portfolio at fair value was $196.1 million across 41 companies, with 78.32% in first lien debt and 98.49% of debt portfolio in floating rate instruments.

• Net investment income before taxes was $0.6 million, or $0.04 per share for the quarter, down from $0.06 per share sequentially, mainly due to non-accruals and portfolio repayments.

• Declared a $0.12 per share quarterly distribution and a $0.02 supplemental distribution, with a 20.14% annualized yield based on share price as of September 30, 2025.

• Parent company provided a $65 million backstop commitment to refinance notes maturing April 2026, enhancing balance sheet flexibility.

Financial highlights

• Fair value of the portfolio was $196.1 million, down from $204.1 million at March 31; total assets were $210.6 million.

• Net assets were $72.7 million as of September 30, 2025.

• Weighted average yield on debt investments increased to 10.87% from 10.57% in the prior quarter.

• Net decrease in net assets from operations was $1.3 million, or $0.09 per share, for the quarter.

• Dividends declared per share totaled $0.14, including a $0.12 regular and $0.02 supplemental distribution.

Outlook and guidance

• Expectation for NII to benefit from new fundings; focus remains on disciplined portfolio management, capital protection, and long-term shareholder value.

• Portfolio strategy targets established companies with positive cash flow and seasoned management, with investment sizes from $5 million to $25 million.

• Management remains selective due to compressed spreads and market volatility.