Fidus Investment Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total investment income reached $45.9 million for the three months ended September 30, 2026, a 23.2% increase from $37.3 million in the prior year period.
• Net investment income was $21.1 million ($0.54 per share), up 21.7% from $17.4 million ($0.49 per share) in the same period of 2025.
• Adjusted net investment income was $21.0 million ($0.54 per share), representing an 18.4% increase from $17.7 million ($0.50 per share) in the prior year.
• Interest income increased 26.9% to $39.1 million, driven by higher average debt investment balances, partially offset by a decrease in weighted average yield.
• Fee income surged 125.9% to $3.0 million, attributed to increased prepayment and management services fees.
• Dividend income declined 107.9% to a loss of $0.1 million, compared to $1.0 million in the prior year, due to decreased distributions from equity investments.
• Total expenses were $24.8 million, a 24.6% increase from $19.9 million in the prior year, primarily due to higher interest/financing expenses ($4.0 million increase) and higher base management fees ($1.2 million increase).
• Net realized losses on investments, net of tax, were $10.9 million for the quarter, compared to $1.4 million in the prior year.
• Net assets increased to $774.4 million ($19.47 per share) as of September 30, 2026, from $741.9 million ($19.55 per share) as of December 31, 2025.
• Estimated spillover income (taxable income in excess of distributions) was $37.7 million ($0.95 per share) as of September 30, 2026.

Guidance and Future Outlook:

• Management intends to continue carefully selecting high-quality companies with defensive characteristics and positive growth outlooks.
• The company aims to deliver attractive risk-adjusted returns for shareholders through its proven investment strategy.
• No specific quantitative forward guidance for revenue or earnings was provided in the press release.

Business Segments and Product Lines:

• The investment portfolio fair value totaled $1.4 billion as of September 30, 2026, consisting of 99 active portfolio companies and eight companies that have sold their underlying operations.
• Total portfolio investments were approximately 102.8% of the related cost basis.
• 57 portfolio companies held variable rate debt investments totaling $909.8 million (71.3% of the debt portfolio on a fair value basis); the remainder was fixed rate.
• The weighted average yield on debt investments was 12.6% as of September 30, 2026.
• Average active portfolio company investment at amortized cost was $14.1 million.
• New investments in the quarter included $25.0 million in first lien debt and $1.0 million in common equity in CasePoint Solutions, LLC, and $17.6 million in first lien debt in SnugZ/USA, LLC.
• The company exited its first lien debt investment in Green Cubes Technology, LLC, receiving full payment of $22.5 million.

Market and Competitive Landscape:

• Fidus focuses on customized debt and equity financing solutions primarily for lower middle-market U.S. companies with revenues between $10 million and $150 million.
• The company operates as an externally managed, closed-end, non-diversified management investment company elected as a Business Development Company (BDC) and a Regulated Investment Company (RIC).
• The company is licensed by the U.S. Small Business Administration (SBA) as a Small Business Investment Company (SBIC).

Risks and Challenges:

• Forward-looking statements note risks including changes in financial and lending markets, economic downturns, geopolitical conditions, interest rate volatility, and inflation.
• Risks also include the impact of tariffs, trade barriers, and changes in trade policy on portfolio companies.
• The press release highlights the uncertainty associated with future performance, distribution amounts, and deal activity levels.

Management Commentary and Tone:

• Edward Ross, Chairman and CEO, stated that the high-performing debt portfolio generated adjusted net investment income of $0.54 per share, covering the base dividend.
• Ross noted that originations were roughly equal to repayments and realizations, maintaining a well-diversified and healthy credit quality portfolio.
• Management expressed confidence that their strategy positions Fidus to continue delivering attractive risk-adjusted returns.

Other Key Points:

• The Board declared total dividends of $0.54 per share for the fourth quarter 2026, comprising a base dividend of $0.43 and a supplemental dividend of $0.11, payable December 29, 2026.
• Total dividends paid in the third quarter were $0.50 per share ($0.43 regular, $0.07 supplemental).
• Liquidity resources included $31.2 million in cash and cash equivalents, $1.5 million in restricted cash, and $132.8 million of unused capacity under the SPV Credit Facility.
• Debt outstanding included $289.5 million in SBA debentures, $120.0 million in 6.625% Senior Unsecured Notes due June 2029, and $200.0 million in 6.75% Notes due March 2030, with a weighted average interest rate of 5.8%.
• The company received net proceeds of approximately $35.5 million from its at-the-market program and $10.5 million from SBA debenture issuances during the quarter, while redeeming $17.0 million of SBA debentures.
• On October 20, 2026, the company closed an offer to exchange privately placed June 2029 Notes for registered notes.
• On October 23, 2026, the company issued an additional $8.0 million in SBA debentures.
• The company has adopted a Dividend Reinvestment Plan (DRIP) allowing automatic reinvestment of dividends unless stockholders opt out.