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- **Portfolio Growth and Stability**: 17.1% annualized portfolio growth since 2020, with 83% of Q3 originations in specialty finance. ABL portfolio at $1.4 billion (44% of assets) with 13.4% yield.
- **Credit Quality Leadership**: 94.8% first lien loans, 99.5% performing assets, outperforming peer BDCs. Avoided high-risk cash flow lending (15.3% of portfolio).
- **Liquidity and Debt Management**: $850 million deployable capital, 1.13x net debt-to-equity ratio. Issued $125M unsecured notes at 5.95%-5.96%.
- **Dividend Sustainability**: NAV growth offset $0.01 dividend shortfall. Leverage capacity (1.13x to 1.25x) provides buffer against rate cuts.
- **Strategic Expansion**: 100+ hires in ABL/equipment finance, including JPMorgan veteran. Life sciences pipeline triple 2024 levels, focusing on late-stage assets.


**【CEO Summary Section】**
- **Portfolio Stability and Growth**: Reported net investment income of $0.40 per share, with a 9.4% annualized return on equity. Comprehensive portfolio grew at a 17.1% annualized rate since 2020, driven by specialty finance strategies.
- **Strategic Shift to ABL**: 83% of third-quarter originations in specialty finance, with ABL portfolio totaling $1.4 billion (44% of total assets). Focused on direct lending with rigorous collateral monitoring.
- **Market Differentiation**: Portfolio credit quality metrics (94.8% first lien loans, 99.5% performing assets) outperform peer BDCs. Avoided high-risk cash flow lending, with only 15.3% of portfolio in sponsor-backed loans.

**【CFO Financial Commentary】**
- **Financial Performance**: Net asset value of $18.21 per share (flat year-over-year). Third-quarter net investment income of $21.6 million ($0.40 per share), matching base dividend. Liquidity of $850 million available for deployment.
- **Debt Management**: Issued $125 million in unsecured notes at 5.95%-5.96%, maintaining investment-grade ratings. Net debt-to-equity ratio of 1.13x, with no near-term refinancing obligations.
- **Portfolio Yield**: Weighted average yield of 12.2%, stable quarter-over-quarter. ABL portfolio yield of 13.4%, offsetting lower cash flow yields (10.2%).

**【Q&A Highlights】**
- **ABL Market Dynamics**: Emphasized infrastructure barriers to entry, with 100+ hires in ABL and equipment finance. Recent ABL originations up 12.7% year-over-year, driven by corporate liquidity needs.
- **Dividend Sustainability**: Despite SOFR sensitivity (7 cents NOI impact per 100bp rate cut), NAV growth offset dividend shortfall. Leverage capacity (1.13x to 1.25x) provides buffer for rate headwinds.
- **Life Sciences Pipeline**: Expanded to triple 2024 levels, focusing on late-stage assets with commercialization milestones. 88% of portfolio companies have >12 months of cash runway.
- **Regulatory Response**: Rejected high-risk ABL investments (e.g., First Brands) due to red flags, highlighting SLR's underwriting discipline.

**【Strategic Initiatives】**
- **Team Expansion**: 100+ hires over two years, including Max Fowell (JPMorgan ABL veteran), to strengthen ABL capabilities. Acquired Webster Bank's factoring business to expand specialty finance.
- **Portfolio Resilience**: 93% of third-quarter originations in specialty finance, with 99.5% of portfolio on cost basis performing. Minimal PIC income (de minimis), reducing earnings volatility.


SLR Investment Corp. (SLRC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SLRC

SLRC fundamentals

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