Pearl Diver Credit Company (PDCC) Q3 2025 earnings summary

Executive summary

• Portfolio NAV reached $114.9M as of September 30, 2025, with 53 CLOs managed by 33 managers and over 1,900 unique corporate debt exposures.

• Portfolio generated recurring cash flows exceeding distributions and expenses, despite headwinds in the CLO equity market and the First Brands bankruptcy.

• Technology-driven investment platform, including machine learning and data science, enables rapid assessment, risk management, and portfolio construction.

• Portfolio is actively managed and diversified, with a 16.0% annualized dividend yield and a B+/B average credit rating of underlying loans.

• Nearly all investments remain in reinvestment periods, providing flexibility to manage exposures and sector risks.

Financial highlights

• Investment income for Q3 2025 was $5.4M ($0.80/share); net investment income was $3.0M ($0.44/share).

• Net unrealized losses on investments totaled $6.9M ($1.02/share); net realized loss was $424K.

• Net loss for the quarter was $4.3M ($0.64/share).

• Recurring cash flows from the CLO portfolio were $8.7M ($1.28/share), up from $8M ($1.18/share) in Q2.

• NAV per share at quarter end was $16.89, with total net assets of $114.9M.

Outlook and guidance

• Constructive outlook for CLO equity performance in a gradually easing monetary environment, with rate cuts expected to benefit arbitrage and refinancing conditions.

• Management expects near-term headwinds to abate and remains confident in executing the CLO equity investment strategy.

• Active portfolio management expected to continue, with focus on secondary CLO equity and selective European junior mezzanine debt.

• Monthly dividends of $0.22/share declared for November, December 2025, and January 2026, representing a 16% annualized yield.

• Launched a $15M at-the-market offering of common shares to support future growth.