Bain Capital Specialty Finance Q2 net investment income up 112% YoY, declares $0.42 per share dividend.

• Bain Capital Specialty Finance announces Q2 2025 financial results. • Board declares $0.42 dividend per share for Q3 2025. • Diversified investment portfolio with low non-accruals. • Solid Q2 results driven by high net investment income. • Q2 results covered regular dividend by 112%.

Bain Capital Specialty Finance, Inc. (NYSE: BCSF) announced its financial results for the second quarter ended June 30, 2025, and declared a dividend of $0.42 per share for the third quarter of 2025. The company reported strong performance, driven by high net investment income and a diversified investment portfolio with low non-accruals.

Key Financial Highlights

- Net Investment Income (NII) per Share: $0.47, equating to an annualized NII yield on book value of 10.7% [1].
- Net Income per Share: $0.37, equating to an annualized return on book value of 8.3% [1].
- Net Asset Value (NAV) per Share: $17.56, as compared to $17.64 as of March 31, 2025 [1].
- Gross and Net Investment Fundings: $529.6 million and $27.3 million, respectively [1].
- Ending Net Debt-to-Equity Ratio: 1.20x, as compared to 1.17x as of March 31, 2025 [1].
- Investments on Non-Accrual: 1.7% and 0.6% of the total investment portfolio at amortized cost and fair value, respectively, as of June 30, 2025 [1].

Portfolio and Investment Activity

For the three months ended June 30, 2025, the company invested $529.6 million in 94 portfolio companies, including $241.8 million in 12 new companies and $272.8 million in 81 existing companies. The company had $502.3 million of principal repayments and sales, resulting in net investment fundings of $27.3 million [1].

Dividend Declaration

The Board of Directors declared a dividend of $0.42 per share for the third quarter of 2025, payable on September 30, 2025 to stockholders of record as of September 16, 2025. This dividend is in addition to the previously announced $0.03 per share dividend [1].

Commentary

Michael Ewald, Chief Executive Officer of BCSF, commented, "BCSF reported solid second quarter results driven by high net investment income that covered our regular dividend by 112%. Our diversified investment portfolio remains healthy with low non-accruals. We also had a strong quarter of new origination activity reflecting our longstanding presence in the core middle market. We believe the Company remains well positioned within this market segment to continue generating attractive risk-adjusted returns for our shareholders."

Conclusion

Bain Capital Specialty Finance's Q2 2025 results demonstrate strong financial performance, with a diversified investment portfolio and low non-accruals. The company's high net investment income and solid earnings per share provide confidence in its ability to generate attractive returns for shareholders. The dividend declaration further underscores the company's commitment to shareholder value.

References

[1] https://www.businesswire.com/news/home/20250805223670/en/Bain-Capital-Specialty-Finance-Inc.-Announces-June-30-2025-Financial-Results-and-Declares-Third-Quarter-2025-Dividend-of-%240.42-per-Share