SLR Investment Corp. — Q3 2026 Earnings Summary

Financial Performance:

• Net investment income (NII) was $17.8 million ($0.33 per share) for the quarter ended September 30, 2026, compared to $21.6 million ($0.40 per share) in the same period in 2025.
• Net realized and unrealized losses totaled $10.2 million ($0.19 per share) for the quarter, compared to a gain of $1.7 million ($0.03 per share) in the prior year period.
• Net increase in net assets from operations was $7.6 million ($0.14 per share), down from $23.3 million ($0.43 per share) in the prior year period.
• Gross investment income decreased to $49.3 million from $57.0 million year-over-year, primarily due to a decrease in the average size of the income-producing investment portfolio.
• Net expenses decreased to $31.5 million from $35.4 million year-over-year, driven by lower incentive fees on lower net investment income.
• Net asset value (NAV) was $17.83 per share as of September 30, 2026, down from $18.00 per share at June 30, 2026.
• Total investment portfolio fair value was $2.0 billion, while the Comprehensive Investment Portfolio fair value was $3.4 billion.
• Leverage was 1.10x net debt-to-equity as of September 30, 2026, down from 1.14x at December 31, 2025 and 1.16x at June 30, 2026.
• Credit facilities included $627.9 million drawn on $995 million of total commitments, plus $143.3 million in term loans outstanding.
• Unsecured notes outstanding totaled $484 million, with maturities of $75 million in December 2026, $135 million in January 2027, and $50 million in March 2027.

Business Segments and Product Lines:

• Comprehensive Investment Portfolio originations totaled $575.1 million, with 95% in specialty finance.
• Asset-based lending contributed the largest portion of originations at $277.2 million, followed by equipment finance at $263.3 million, sponsor finance at $29.6 million, and life science finance at $5.0 million.
• Comprehensive Investment Portfolio repayments and amortization totaled $429.2 million.
• The portfolio composition included 97.5% senior secured loans, with 96.4% held in first lien senior secured loans.
• Asset class breakdown by fair value: Asset-Based Loans ($1,454.6 million, 43.1%), Equipment Financings ($1,200.4 million, 35.5%), Cash Flow Loans/Sponsor Finance ($463.0 million, 13.7%), and Life Science Loans ($175.7 million, 5.2%).
• Weighted average asset yields ranged from 9.8% for Life Science Loans to 12.6% for Asset-Based Loans.
• SLR Senior Lending Program LLC (SSLP) invested $7.0 million in 6 portfolio companies and repaid $9.8 million during the quarter.
• SSLP generated $1.3 million in income for SLRC in Q3 2026, representing an 11.0% annual yield on cost basis, down from 11.8% in the prior quarter.

Market and Competitive Landscape:

• Management views the diversified specialty finance portfolio as well-suited for the current "higher-for-longer" interest rate environment.
• The portfolio is diversified across over 850 unique issuers operating in 104 sub-industries, with an average exposure of $4.0 million per issuer.
• Watchlist accounts represented only 2% of the fair value of the portfolio, below the long-term average of 2.2%.
• Software exposure remains under 1% of fair value.
• Only 2% of gross income was derived from PIK interest resulting from amendments.
• Two investments were on non-accrual, representing 1.2% of fair value and 2.9% of cost of the Investment Portfolio.
• 98.8% of the portfolio was performing on a fair value basis and 97.1% on a cost basis.
• Internal risk ratings showed 32.6% of investments rated 1 (least risk) and 65.4% rated 2.

Risks and Challenges:

• Forward-looking statements highlight risks including changes in the economy, financial markets, and political environment, including tariffs, trade disputes, inflation, and changing interest rates.
• Risks include potential disruptions from terrorism, war, geopolitical conflicts, natural disasters, pandemics, or cybersecurity incidents.
• Future changes in laws or regulations, particularly regarding business development companies or regulated investment companies, pose potential risks.
• Actual results may differ materially from projections due to uncertainties in the market environment and portfolio company prospects.

Management Commentary and Tone:

• Co-CEO Michael Gross stated the company is "well positioned to support borrowers and sponsors that need liquidity" with over $850 million of capital available to deploy.
• Co-CEO Bruce Spohler expressed "high conviction in the stability and credit quality of our portfolio," noting portfolio companies continue to exhibit healthy fundamentals.
• Management noted that NII of $0.33 per share was flat sequentially and covered the $0.31 quarterly distribution.
• The tone regarding asset quality was positive, citing low watchlist exposure and healthy portfolio company performance.

Other Key Points:

• The Board declared a quarterly distribution of $0.31 per share payable on December 28, 2026, to holders of record as of December 14, 2026.
• On October 28, 2026, the Company committed to a private offering of $135 million of unsecured notes with a fixed interest rate of 6.76% maturing on June 10, 2030.
• Between October 1, 2026, and October 30, 2026, the Company purchased 884,002 shares for $10.0 million through its share repurchase plan.
• Unfunded commitments were approximately $264.0 million as of September 30, 2026, excluding discretionary commitments to portfolio companies.
• Total available capital, including anticipated borrowing capacity at SSLP and specialty finance portfolio companies, exceeded $850 million.
• The Company hosts an earnings conference call on November 4, 2026, at 10:00 a.m. Eastern Time.