Bain Capital Specialty Finance, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net investment income (NII) for the quarter ended September 30, 2026, was $27.7 million ($0.43 per share), down from $28.6 million ($0.44 per share) in the second quarter of 2026.
• Net income per share was $0.26, representing an annualized return on book value of 6.2%, compared to $0.22 per share in Q2 2026.
• Net asset value (NAV) per share was $16.49 as of September 30, 2026, a decrease from $16.65 as of June 30, 2026.
• Total investment income was $59.9 million for the quarter, compared to $62.3 million in Q2 2026.
• Total expenses (before taxes) were $31.4 million for the quarter, down from $33.0 million in Q2 2026.
• The company reported net realized and unrealized losses of $11.0 million for the quarter.
• Net increase in net assets resulting from operations was $16.7 million ($0.26 per share).
• Total fair value of investments was $2,270.3 million as of September 30, 2026, compared to $2,363.6 million as of June 30, 2026.
• Total assets were $2,427.4 million as of September 30, 2026, compared to $2,620.1 million as of June 30, 2026.
• Total net assets were $1,069.8 million as of September 30, 2026, compared to $1,080.4 million as of June 30, 2026.
• Annualized NII yield on equity was 10.3%.
• Weighted average yield on the investment portfolio at amortized cost was 11.2% and at fair value was 10.7% as of September 30, 2026, up from 10.8% and 10.4% respectively as of June 30, 2026.
• 94.1% of debt investments at fair value were floating rate securities.

Guidance and Future Outlook:

• Management indicated that yields are beginning to move higher as floating rate loans reset and new deals continue to fund at attractive spreads.
• The company views the current environment as creating compelling opportunities in the core middle market.
• Management stated their longstanding and disciplined strategy positions them well to capitalize on these opportunities.

Business Segments and Product Lines:

• The portfolio consists of investments in 215 portfolio companies across 30 different industries.
• Investment activity included $121.5 million in gross fundings across 120 portfolio companies ($47.9 million in 5 new companies and $73.6 million in 115 existing companies).
• Principal repayments and sales totaled $203.1 million, resulting in net investment fundings of $(81.6) million.
• First Lien Senior Secured Loans comprised 62.3% ($1,412.7 million) of the investment portfolio.
• Investment Vehicles comprised 16.8% ($381.3 million) of the portfolio.
• Equity Interest comprised 8.2% ($185.9 million) of the portfolio.
• Subordinated Debt comprised 4.0% ($90.6 million) of the portfolio.
• Preferred Equity comprised 7.8% ($177.8 million) of the portfolio.
• Subordinated Note in ISLP comprised 8.4% ($190.7 million) of the portfolio.
• Subordinated Note in SLP comprised 7.1% ($162.1 million) of the portfolio.
• ISLP's investment portfolio had a fair value of $696.9 million across 38 companies in 15 industries, with 93.8% in first lien senior secured loans and 100% floating rate debt.
• SLP's investment portfolio had a fair value of $1,617.7 million across 110 companies in 26 industries, with 99.2% in first lien senior secured loans and 100% floating rate debt.
• Investments on non-accrual were 3.3% of the total investment portfolio at amortized cost and 2.2% at fair value as of September 30, 2026.

Market and Competitive Landscape:

• The company focuses on lending to middle market companies.
• The company has invested approximately $10,238.4 million in aggregate principal amount of debt and equity investments since commencing operations in October 2016 through September 2026.
• The company operates as a Business Development Company (BDC) under the Investment Company Act of 1940.

Risks and Challenges:

• The company reported net realized and unrealized losses of $11.0 million for the quarter.
• Four portfolio companies were on non-accrual status as of September 30, 2026.
• Forward-looking statements involve risks and uncertainties, including those described in SEC filings, which could cause actual results to differ materially.

Management Commentary and Tone:

• Michael Ewald, CEO, stated the company delivered "solid third quarter results" with a healthy diversified portfolio of borrowers.
• Management expressed confidence in the environment creating "compelling opportunities" due to rising yields and attractive spreads.

Other Key Points:

• The Board of Directors declared a dividend of $0.42 per share for the fourth quarter of 2026, payable on December 29, 2026, to stockholders of record as of December 15, 2026.
• The company increased commitments under its senior secured revolving credit facility with Sumitomo Mitsui Banking Corporation to $955.0 million from $855.0 million.
• Total principal debt outstanding was $1,340.0 million as of September 30, 2026.
• Debt composition included $68.0 million in the Sumitomo Credit Facility, $272.0 million in BCC Middle Market CLO 2019-1 LLC debt, $300.0 million in senior unsecured notes due October 2026, $350.0 million in senior unsecured notes due March 2030, and $350.0 million in senior unsecured notes due March 2031.
• The weighted average interest rate on debt outstanding was 5.0% for the quarter ended September 30, 2026.
• Net debt-to-equity ratio was 1.18x as of September 30, 2026, down from 1.22x as of June 30, 2026.
• The company had $887.0 million of capacity under its Sumitomo Credit Facility and $435.5 million of undrawn investment commitments as of September 30, 2026.
• Cash and cash equivalents (including foreign cash) were $28.5 million, with restricted cash and cash equivalents of $30.1 million.
• A conference call to discuss results was scheduled for November 10, 2026, at 10:00 a.m. Eastern Time.