BlackRock TCP Capital Corp. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net investment income for the quarter ended September 30, 2026, was $13.4 million ($0.16 per share), a decrease from $27.3 million ($0.32 per share) in the same period in 2025.
• Adjusted net investment income for the quarter was $12.5 million ($0.15 per share), compared to $25.6 million ($0.30 per share) in the prior year period.
• Net decrease in net assets from operations on a GAAP basis was $66.8 million ($0.80 per share), contrasting with a $24.4 million ($0.29 per share) net increase in the prior year period.
• Net realized and unrealized loss on investments and foreign currency was $80.1 million ($0.96 per share), compared to a loss of $2.9 million ($0.03 per share) in the prior year period.
• Net unrealized loss for the quarter was $4.3 million ($0.05 per share).
• Total investment income was $28.5 million ($0.34 per share), down from $50.5 million ($0.59 per share) in the prior year period.
• Total operating expenses were $15.1 million ($0.18 per share), down from $25.1 million ($0.29 per share) in the prior year period.
• Net asset value per share was $5.61 as of September 30, 2026, down from $6.58 as of June 30, 2026.

Guidance and Future Outlook:

• Management stated that strong repayment and realization activity, along with proceeds from a portfolio sale, significantly reduced leverage and enhanced liquidity, placing the company on a strong foundation as the Board conducts an ongoing strategic review focused on achieving the best possible outcome for shareholders.

Business Segments and Product Lines:

• The consolidated investment portfolio consisted of debt and equity positions in 126 portfolio companies with a total fair value of approximately $543.5 million.
• 79.6% of the portfolio was in senior secured debt, with 88.0% of debt investments being floating rate and 89.0% of those having interest rate floors.
• Equity positions represented 20.4% of the portfolio.
• The weighted average annual effective yield of the debt portfolio was 11.1%, compared to 11.2% as of June 30, 2026.
• During the quarter, the company invested approximately $6.2 million across existing portfolio companies; 91.5% were in first lien senior secured loans.
• Sales and repayments totaled approximately $681.4 million, including $457.5 million sold through the Continuation Vehicle transaction.
• Investments on non-accrual status represented 3.4% of the portfolio at fair value and 14.2% at cost, compared to 1.6% and 7.4% respectively as of June 30, 2026.

Market and Competitive Landscape:

• No specific market share data or direct competitor comparisons were provided in the press release.

Risks and Challenges:

• The company reported a significant net realized loss of $63.7 million primarily from the Continuation Vehicle Transaction, alongside losses of $4.2 million and $3.8 million from the disposition of investments in Paramount and Emerald, respectively.
• Net unrealized losses were driven by an $11.5 million loss on the investment in Job and Talent and reversals of previously recognized gains from the disposition of investments in Domo and Thras.io.
• The company noted risks associated with general economic conditions, interest rate changes, and regulatory changes in its forward-looking statements.

Management Commentary and Tone:

• Jason Mehring, Chairman and CEO, highlighted that repayment and realization activity, combined with the portfolio sale, significantly reduced leverage and enhanced liquidity.
• Management indicated the company is on a strong foundation while the Board conducts a strategic review.

Other Key Points:

• On August 4, 2026, the Company completed the sale of 95% of the equity interests in a Continuation Vehicle holding approximately $524 million of investments across 78 portfolio companies to funds sponsored by Pantheon.
• Net leverage decreased to 0.16x as of September 30, 2026, from 1.38x as of June 30, 2026.
• Available liquidity was approximately $511.2 million, comprised of $258.1 million in available capacity under the leverage program and $253.1 million in cash and cash equivalents.
• The Board declared a fourth quarter dividend of $0.17 per share, payable on December 31, 2026.
• The stock repurchase plan was re-approved on April 29, 2026, to acquire up to $50.0 million of common stock, though no shares were repurchased during the quarter.
• Total debt outstanding was $329.8 million, with a combined weighted-average interest rate of 6.90%.
• No incentive compensation was accrued for the quarter as the cumulative total return did not exceed the total return hurdle.