CION Investment Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net investment income per share was $0.25 for the quarter ended September 30, 2026, compared to $0.29 in the prior quarter.
• Earnings per share were $(0.07) for the quarter, compared to $0.62 in the prior quarter.
• Total investment income was $48.3 million for the quarter, down from $49.8 million in the prior quarter.
• Net investment income after taxes was $12.3 million for the quarter, compared to $14.2 million in the prior quarter.
• Net realized losses were $9.2 million for the quarter, compared to $18.0 million in the prior quarter.
• Net unrealized losses were $6.7 million for the quarter, compared to net unrealized gains of $34.8 million in the prior quarter.
• Net decrease in net assets resulting from operations was $3.6 million for the quarter, compared to a net increase of $31.0 million in the prior quarter.
• Total operating expenses were $36.0 million for the quarter, up from $35.6 million in the prior quarter.
• Net asset value per share was $13.20 as of September 30, 2026, a 2.7% decrease from $13.57 as of June 30, 2026.
• Total debt outstanding was $897 million as of September 30, 2026, down from $1.17 billion as of June 30, 2026.
• Net debt-to-equity ratio was 1.30x as of September 30, 2026, compared to 1.52x as of June 30, 2026.
• Total investments at fair value were $1.47 billion as of September 30, 2026, down from $1.65 billion as of June 30, 2026.
• Distributions declared for the quarter ended September 30, 2026, were $0.30 per share, totaling $14.8 million.

Guidance and Future Outlook:

• Management stated the company executed a plan to strengthen its balance sheet, reducing debt to 1.30 times net debt to equity, which is below the target set.
• Management expressed confidence in the portfolio's performance heading into 2027, noting that lower earnings were due to deliberate deleveraging and asset sales rather than fundamental credit quality declines.

Business Segments and Product Lines:

• The investment portfolio consisted of 79 portfolio companies across 23 industries as of September 30, 2026.
• Senior secured first lien investments comprised 71.6% of the portfolio by fair value.
• Equity investments comprised 27.9% of the portfolio by fair value.
• Unsecured debt comprised 0.5% of the portfolio by fair value.
• New investment commitments totaled $72 million, with $11 million funding previously unfunded commitments.
• Sales and repayments totaled $256 million, resulting in a net decrease to the funded portfolio of $173 million.
• The company launched Senior Loan Fund Partners, LLC (SLFP), a joint venture investing in senior secured first lien loans to U.S. middle-market companies, capitalized with $125.0 million in senior secured notes and $59.7 million in LLC interests.
• In connection with SLFP, the company sold 20 first lien loans with an aggregate par value of $180.3 million for $180.0 million.
• The company issued $35 million of 8.00% unsecured notes due 2031 and $2 million of 7.50% unsecured notes due 2029 during the quarter.
• The company repaid in full $114.8 million in aggregate principal amount of Series A Senior Unsecured Notes, which were delisted from the Tel Aviv Stock Exchange.
• The company repaid in full $200 million in borrowings under its senior secured JPM Credit Facility, which was terminated.

Market and Competitive Landscape:

• 88.9% of performing loans bore a floating rate as of September 30, 2026, compared to 87.0% as of June 30, 2026.
• 11.1% of performing loans bore a fixed rate as of September 30, 2026, compared to 13.0% as of June 30, 2026.
• The yield on debt and other income-producing investments at amortized cost was 10.58% as of September 30, 2026, compared to 10.57% as of June 30, 2026.
• The weighted average leverage (net debt/EBITDA) of portfolio companies was 5.17x as of September 30, 2026, compared to 5.07x as of June 30, 2026.
• The weighted average interest coverage of portfolio companies was 1.82x as of September 30, 2026, compared to 1.87x as of June 30, 2026.
• Median EBITDA of portfolio companies was $39.5 million as of September 30, 2026, up from $33.7 million as of June 30, 2026.

Risks and Challenges:

• Investments on non-accrual status increased to 1.63% of the total investment portfolio at fair value and 4.85% at amortized cost as of September 30, 2026, up from 1.44% and 4.41%, respectively, as of June 30, 2026.
• The decrease in total investment income was driven by lower interest income due to portfolio reduction from deleveraging and the sale of loans to SLFP.
• Operating expenses increased due to higher general and administrative expenses, including legal fees for investment restructuring and costs associated with forming SLFP.
• Interest expense increased primarily due to the write-off of unamortized debt issuance costs related to the repayment of the JPM Credit Facility.

Management Commentary and Tone:

• Michael Reisner, co-Chief Executive Officer, stated that the company successfully executed a plan to strengthen its balance sheet in a single quarter.
• Management attributed the quarter's lower earnings to the deliberate decision to de-lever and the sale of assets to the new strategic joint venture, rather than a fundamental decline in credit quality.
• Management expressed pleasure with the portfolio's performance as the company heads into 2027.

Other Key Points:

• Co-CEOs declared base distributions totaling $0.25 per share for the first quarter of 2027, payable in three installments of $0.08, $0.08, and $0.09 per share on January 29, February 26, and March 26, 2027, respectively.
• The number of portfolio companies decreased to 79 as of September 30, 2026, from 82 as of June 30, 2026.
• The company had $51 million in cash and short-term investments and $25 million available under financing arrangements as of September 30, 2026.
• The combined weighted average interest rate on debt outstanding was 7.6% for the quarter ended September 30, 2026.
• The company received full repayment of investments in two portfolio companies and sold all investments in one portfolio company during the quarter.
• New investment commitments were made across 11 existing portfolio companies during the quarter.