PEARL DIVER CREDIT COMPANY INC Q2 2025 Earnings Call Highlights: Strong Cash Flows and Diversified Portfolio

Pearl Diver Credit Company Inc. reported strong Q2 2025 earnings with invested income of $5.5 million and total expenses of $2.4 million. Net investment income was $3.1 million, while net unrealized gains on investments were $0.5 million. The company's recurring cash flows totaled $8 million, exceeding distributions and expenses. Total assets were $166.1 million, and net asset value per share increased by 1.6% to $18.48. Available liquidity was $0.2 million, and leverage was 24.3% of total assets. Dividends were $0.22 per common share in April, May, June, and July. The weighted average GAAP yield on the portfolio decreased to 12.75% as of June 30.

Pearl Diver Credit Company Inc. (PDCC) reported robust financial results for the second quarter of 2025, showcasing a resilient performance despite market volatility. The company's net income for the quarter was $3.5 million, or $0.52 per share, with net investment income of $3.1 million, or $0.46 per share. CEO Indranil Basu highlighted the company's ability to maintain a stable net asset value per share while adding select new positions to the portfolio, which are expected to deliver attractive risk-adjusted returns [1].

The company's total expenses for the quarter were $2.4 million, or $0.35 per share, while net unrealized appreciation on investments stood at $0.5 million, or $0.07 per share. Recurring cash flows from CLO investments reached $8.0 million, or $1.18 per share, surpassing distributions and expenses. As of June 30, 2025, the company's total assets were $166.1 million, and the net asset value per share increased by 1.6% to $18.48. Available liquidity was $0.2 million, and leverage was 24.3% of total assets. Dividends were $0.22 per common share in April, May, June, and July. The weighted average GAAP yield on the portfolio decreased to 12.75% as of June 30 [2].

Pearl Diver Credit Company Inc. is an externally managed, non-diversified, closed-end management investment company with a primary investment objective of maximizing its portfolio's total return. The company's strategy focuses on equity and junior debt tranches of CLOs collateralized by portfolios of sub-investment grade, senior secured floating-rate debt issued by a large number of distinct US companies across several industry sectors. The company is managed by Pearl Diver Capital LLP [2].

Reference List:
[1] https://www.nasdaq.com/articles/pearl-diver-credit-company-reports-q2-eps-052
[2] https://finance.yahoo.com/news/pearl-diver-credit-company-inc-120200438.html