MSC Income Fund — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net investment income (NII) was $14.4 million ($0.32 per share), a 13% decrease from $16.6 million ($0.35 per share) in the third quarter of 2025.
• Adjusted net investment income (ANII) was $15.3 million ($0.34 per share), an 8% decrease from $16.6 million ($0.35 per share) in the prior year period.
• ANII before taxes was $16.3 million ($0.36 per share), a 4% decrease from $17.0 million ($0.36 per share) in the prior year period.
• Total investment income was $35.5 million, essentially flat compared to $35.4 million in the prior year.
• Net increase in net assets resulting from operations was $18.1 million ($0.40 per share), a 32% decrease from $26.5 million ($0.56 per share) in the prior year.
• Return on equity was 9.7% on an annualized basis for the quarter, down from 14.6% in the prior year; the trailing twelve-month return on equity was 12.3%.
• Total expenses, net of waivers, increased 9.6% to $20.1 million from $18.3 million in the prior year, driven by a $1.3 million increase in interest expense and a $0.9 million increase in the capital gains incentive fee accrual.
• Net assets totaled $750.0 million ($16.56 per share) as of September 30, 2026, representing a 4.5% increase from $15.85 per share as of December 31, 2025.
• The debt-to-equity ratio was 0.86x as of September 30, 2026.

Guidance and Future Outlook:

• Management expressed excitement about future expectations based on the quality of the existing investment portfolio, favorable liquidity position, and current investment pipeline.
• The Fund announced a share repurchase plan to facilitate the repurchase of up to $20.0 million of shares from September 2026 through February 2027, triggered when the market price trades below net asset value by pre-determined levels.
• The Fund completed the first of two $75.0 million issuances under a $150.0 million private notes offering, with an additional $75.0 million tranche issued in October 2026.

Business Segments and Product Lines:

• The investment portfolio consists of 61.2% private loan, 36.5% lower middle market (LMM), 1.4% middle market, and 0.9% other investments at fair value.
• Private loan portfolio: 81 companies with a fair value of $843.8 million and a weighted-average annual effective yield of 10.5%.
• LMM portfolio: 53 companies with a fair value of $503.0 million and a weighted-average annual effective yield of 12.7%.
• The Fund completed $61.4 million in total private loan portfolio investments.
• Realized a gain of $11.0 million on the exit of investments in Core Transformers.
• Realized a net loss of $3.9 million on investments, primarily driven by a $9.4 million loss on a private loan restructuring and a $6.4 million loss on a full LMM exit, partially offset by the $11.0 million gain on Core Transformers.
• Net unrealized appreciation on portfolio investments was $9.0 million for the quarter.

Market and Competitive Landscape:

• The Fund maintains an investment grade rating from KBRA of BBB- with a stable outlook.
• The Fund's portfolio companies generally have annual revenues between $25 million and $500 million for private loans and $10 million to $150 million for LMM companies.
• The LMM portfolio companies had a median net senior debt to EBITDA ratio of 2.6 to 1.0 and a median total EBITDA to senior interest expense ratio of 2.9 to 1.0.

Risks and Challenges:

• Total expenses increased due to higher interest rates on unsecured debt obligations and increased borrowings.
• Net investment income decreased due to higher total expenses and increased tax expenses, partially offset by a slight increase in total investment income.
• The Fund holds investments on non-accrual status comprising 1.4% of the total investment portfolio at fair value and 5.2% at cost.
• Forward-looking statements are subject to risks including adverse economic changes, macroeconomic factors, interest rate fluctuations, and competitive factors.

Management Commentary and Tone:

• Dwayne L. Hyzak, CEO, stated the Fund is pleased with the 9.7% annualized return on equity and remains excited about future expectations.
• Nick Meserve will transition to CEO effective November 9, 2026, succeeding Hyzak, who will become Executive Chairman.
• Management highlighted the Fund's favorable liquidity position and the quality of the investment portfolio as drivers for future performance.

Other Key Points:

• Declared regular monthly dividends of $0.33 per share for the fourth quarter of 2026 ($0.11 per share monthly).
• Declared a supplemental dividend of $0.03 per share payable in December 2026, bringing total third-quarter dividends to $0.36 per share.
• Issued $75.0 million in aggregate principal amount of 6.83% unsecured notes due September 30, 2029.
• Aggregate liquidity was $224.7 million as of September 30, 2026, including $27.3 million in cash and $197.4 million in unused credit facility capacity.
• The Fund has outstanding borrowings of $248.0 million under the SPV Facility and $24.0 million under the Corporate Facility.
• The Fund has $150.0 million of October 2026 Notes maturing on October 30, 2026, and $150.0 million of May 2029 Notes maturing on May 31, 2029.