Monroe Capital Q2 Adjusted NII Falls Short of Consensus at 15c

Monroe Capital reported Q2 adjusted NII of 15 cents, below consensus of 22 cents. The firm's Q2 Net Asset Value was $179.6 million, or $8.29 per share. Monroe Capital paid a 25-cent per share dividend during the quarter and announced a merger with HRZN, which will unlock value for shareholders and provide long-term upside through participation in a larger, scaled HRZN.

Monroe Capital Corporation (NASDAQ: MRCC) has released its financial results for the second quarter of 2025, reporting a net investment income (NII) of $3.3 million, or $0.15 per share, and a net asset value (NAV) of $179.6 million, or $8.29 per share. The company also announced a definitive merger agreement with Horizon Technology Finance Corporation (HRZN) and an asset sale to Monroe Capital Income Plus Corporation (MCIP) before the merger closes.

The Q2 adjusted NII was 15 cents per share, which fell short of the consensus estimate of 22 cents per share. The company's NAV decreased from $186.9 million to $179.6 million, indicating a reduction in shareholder equity. Monroe Capital paid a 25-cent per share dividend during the quarter, yielding approximately 14.6% annually.

The merger with HRZN is expected to provide long-term value for shareholders through synergies and a larger scale. CEO Theodore L. Koenig expressed optimism about the merger, highlighting the potential for increased shareholder value. The merger agreement and asset sale are subject to shareholder approval and certain closing conditions.

Institutional investors have shown interest in MRCC, with 33 adding shares to their portfolios and 34 decreasing their positions in the most recent quarter. Notable moves include Clearstead Advisors, LLC removing 69,168 shares and Beacon Pointe Advisors, LLC adding 59,406 shares.

For additional information, please refer to the Company's August 7, 2025 announcement and associated Form 8-K filings containing the definitive agreements associated with this transaction [1].

References:
[1] https://www.quiverquant.com/news/Monroe+Capital+Corporation+Reports+Second+Quarter+2025+Financial+Results+and+Announces+Merger+Agreement+with+Horizon+Technology+Finance+Corporation