Bain Capital Specialty Finance, Inc. Announces December 31, 2025 Financial Results and Declares First Quarter 2026 Dividend of $0.42 per Share

FEBRUARY 26, 2026

Media Contacts

  • Title: 

    Investor Contact

    Author Name & Designation: 

    Katherine Schneider

    Contact Number: 

    +1 (212) 803-9613

    Email Address: 

    investors@baincapitalbdc.com

    Headline: 
    Western Digital
    Title: 

    Media Contact

    Author Name & Designation: 

    Scott Lessne

    Contact Number: 

    +1 (212) 300-1800

    Email Address: 

    slessne@apcoworldwide.com

BOSTON--Bain Capital Specialty Finance, Inc. (NYSE: BCSF, the “Company”, “our” or “we”) today announced financial results for the fourth quarter and fiscal year ended December 31, 2025, and that its Board of Directors (the “Board”) has declared a dividend of $0.42 per share for the first quarter of 2026.


“BCSF delivered strong fourth quarter and full year 2025 results driven by attractive levels of net investment income that continued to cover our dividend,” said Michael Ewald, Chief Executive Officer of BCSF. “Credit fundamentals remained strong across our highly diversified portfolio with stable credit metrics and low non-accruals. We believe the Company is well-positioned to navigate the current market environment given our longstanding, disciplined investment approach in the core middle market.”


QUARTERLY HIGHLIGHTS



  • Net investment income (NII) per share was $0.46, equating to an annualized NII yield on book value of 10.6%(1);


  • Net income per share was $0.43, equating to an annualized return on book value of 9.9%(1);


  • Net asset value per share as of December 31, 2025 was $17.23, an increase of 0.1% compared to September 30, 2025, excluding the impact of the special distributions totaling $0.18 per share during the fourth quarter;


  • Gross and net investment fundings were $167.9 million and $(25.3) million, respectively; ending net debt-to-equity was 1.24x, as compared to 1.23x as of September 30, 2025(2);


  • Investments on non-accrual were relatively unchanged quarter-over-quarter and represented 1.5% and 0.8% of the total investment portfolio at amortized cost and fair value, respectively, as of December 31, 2025;


  • On December 22, 2025, the Company’s Board of Directors declared a special dividend of $0.15 per share to stockholders of record as of December 31, 2025. This special dividend was in addition to the Company’s previously declared special dividend of $0.03 per share for the fourth quarter;(3)


  • Subsequent to quarter-end, the Company’s Board of Directors declared a dividend of $0.42 per share for the first quarter of 2026 payable to stockholders of record as of March 16, 2026(4); and


  • On January 29, 2026, the Company closed an offering of $350.0 million aggregate principal amount of 5.950% unsecured notes due 2031. The net proceeds of the offering were primarily used to repay outstanding secured indebtedness under its financing arrangements and for general corporate purposes.


SELECTED FINANCIAL HIGHLIGHTS

























































($ in millions, unless otherwise noted)


Q4 2025


 


Q3 2025


 


Net investment income per share


$


0.46


 


$


0.45


 


Net investment income


$


29.7


 


$


29.2


 


Earnings per share


$


0.43


 


$


0.29


 


Regular dividends per share declared and payable


$


0.42


 


$


0.42


 


Special dividends per share declared and payable


$


0.18


 


$


0.03


 


 


 


 


 


 


 


 









































($ in millions, unless otherwise noted)


As of


December 31, 2025


 


As of


September 30, 2025


 


Total fair value of investments


$


2,508.4


 


$


2,534.1


 


Total assets


$


2,662.6


 


$


2,716.0


 


Total net assets


$


1,117.4


 


$


1,128.5


 


Net asset value per share


$


17.23


 


$


17.40


 


PORTFOLIO AND INVESTMENT ACTIVITY


For the three months ended December 31, 2025, the Company invested $167.9 million in 93 portfolio companies, including $68.3 million in 11 new companies and $99.6 million in 82 existing companies. The Company had $193.2 million of principal repayments and sales in the quarter, resulting in net investment fundings of $(25.3) million.


Investment Activity for the Quarter Ended December 31, 2025:

































($ in millions)


Q4 2025


 


Q3 2025


 


Investment Fundings


$


167.9


 


$


340.1


 


Sales and Repayments


$


193.2


 


$


296.1


 


Net Investment Activity


$


(25.3


)


$


44.0


 


As of December 31, 2025, the Company’s investment portfolio had a fair value of $2,508.4 million, comprised of investments in 203 portfolio companies operating across 30 different industries.


Investment Portfolio at Fair Value as of December 31, 2025:








































































































Investment Type


$ in Millions


 


% of Total


 


First Lien Senior Secured Loan


$


1,598.7


 


 


63.8


%


Second Lien Senior Secured Loan


 


30.0


 


 


1.2


 


Subordinated Debt


 


95.7


 


 


3.8


 


Preferred Equity


 


157.2


 


 


6.3


 


Equity Interest


226.7


 


 


9.0


 


Warrants


 


1.0


 


 


0.0


 


Investment Vehicles


 


399.1


 


 


15.9


 


Subordinated Note in ISLP


 


190.7


 


 


7.6


 


Equity Interest in ISLP


 


43.6


 


 


1.9


 


Subordinated Note in SLP


 


157.9


 


 


6.3


 


Preferred and Equity Interest in SLP


 


6.9


 


 


0.1


 


Total


$


2,508.4


 


 


100.0


%


As of December 31, 2025, the weighted average yield on the investment portfolio at amortized cost and fair value were 10.8% and 10.9%, respectively, as compared to 11.1% and 11.2%, respectively, as of September 30, 2025(5)(6). 92.2% of the Company’s debt investments at fair value were in floating rate securities.


As of December 31, 2025, six portfolio companies were on non-accrual status, representing 1.5% and 0.8% of the total investment portfolio at amortized cost and fair value, respectively.


As of December 31, 2025, ISLP’s investment portfolio had an aggregate fair value of $733.1 million, comprised of investments in 40 portfolio companies operating across 17 different industries. The investment portfolio on a fair value basis was comprised of 94.3% first lien senior secured loans, 0.7% second lien senior secured loans and 5.0% equity interests. 100% of ISLP’s debt investments at fair value were in floating rate securities.


As of December 31, 2025, SLP’s investment portfolio had an aggregate fair value of $1,536.3 million, comprised of investments in 99 portfolio companies operating across 26 different industries. The investment portfolio on a fair value basis was comprised of 99.7% first lien senior secured loans and 0.3% second lien senior secured loans. 100.0% of SLP’s debt investments at fair value were in floating rate securities.


RESULTS OF OPERATIONS


For the three months ended December 31, 2025 and September 30, 2025, total investment income was $68.2 million and $67.2 million, respectively.


Total expenses (before taxes) for the three months ended December 31, 2025 and September 30, 2025 were $37.7 million and $37.2 million, respectively.


Net investment income for the three months ended December 31, 2025 and September 30, 2025 was $29.7 million or $0.46 per share and $29.2 million or $0.45 per share, respectively.


During the three months ended December 31, 2025, the Company had net realized and unrealized losses of $1.9 million.


Net increase in net assets resulting from operations for the three months ended December 31, 2025 was $27.8 million, or $0.43 per share.


CAPITAL AND LIQUIDITY


As of December 31, 2025, the Company had total principal debt outstanding of $1,473.0 million, including $251.0 million outstanding in the Company’s Sumitomo Credit Facility, $272.0 million outstanding of the debt issued through BCC Middle Market CLO 2019-1 LLC, $300.0 million outstanding in the Company’s senior unsecured notes due March 2026, $300.0 million outstanding in the Company’s senior unsecured notes due October 2026, and $350.0 million outstanding in the Company's senior unsecured notes due March 2030.


For the three months ended December 31, 2025, the weighted average interest rate on debt outstanding was 4.6%, as compared to 4.8% for the three months ended September 30, 2025.


As of December 31, 2025, the Company had cash and cash equivalents (including foreign cash) of $26.2 million, restricted cash and cash equivalents of $32.7 million, $26.7 million of unsettled trades, net of receivables and payables of investments, and $604.0 million of capacity under its Sumitomo Credit Facility. As of December 31, 2025, the Company had $464.8 million of undrawn investment commitments.


As of December 31, 2025, the Company’s debt-to-equity and net debt-to-equity ratios were 1.32x and 1.24x, respectively, as compared to 1.33x and 1.23x, respectively, as of September 30, 2025(3).


Endnotes













































(1)


    


Net investment income yields and net income returns are calculated on average net assets, or book value, for the respective periods shown.



 


(2)


    


Net debt-to-equity represents principal debt outstanding less cash and cash equivalents and unsettled trades, net of receivables and payables of investments.



 


(3)


    


The fourth quarter $0.15 per share special dividend was paid on January 26, 2026 to stockholders of record as of December 31, 2025. The fourth quarter $0.03 per share special dividend that was previously announced was paid on December 30, 2025 to stockholders of record as of December 16, 2025.


(4)


    


The first quarter dividend is payable on March 30, 2026 to stockholders of record as of March 16, 2026.



 


(5)


    


The weighted average yield is computed as (a) the annual stated interest rate or yield earned on the relevant accruing debt and other income producing securities plus amortization of fees and discounts on the performing debt and other income producing investments, divided by (b) the total relevant investments at amortized cost or fair value. The weighted average yield does not represent the total return to our stockholders.



 


(6)


    


For non-stated rate income producing investments, computed based on (a) the dividend or interest income earned for the respective trailing twelve months ended on the measurement date, divided by (b) the ending amortized cost or fair value, as applicable. In instances where historical dividend or interest income data is not available or not representative for the trailing twelve months ended, the dividend or interest income is annualized.


CONFERENCE CALL INFORMATION


A conference call to discuss the Company’s financial results will be held live at 8:00 a.m. Eastern Time on February 27, 2026. Please visit BCSF’s webcast link located on the Events & Presentations page of the Investor Resources section of BCSF’s website at https://urldefense.com/v3/__https://cts.businesswire.com/ct/CT?id=smartl...$" shape="rect" target="_blank">http://www.baincapitalspecialtyfinance.com for a slide presentation that complements the Earnings Conference Call.


Participants are also invited to access the conference call by dialing one of the following numbers:



  • Domestic: 1-800-343-4136


  • International: 1-203-518-9843


  • Conference ID: BAIN


All participants will need to reference “Bain Capital Specialty Finance - Fourth Quarter and Fiscal Year Ended December 31, 2025 Earnings Conference Call” once connected with the operator. All participants are asked to dial in 10-15 minutes prior to the call.


Replay Information:


An archived replay will be available approximately three hours after the conference call concludes through March 13, 2026 via a webcast link located on the Investor Resources section of BCSF’s website, and via the dial-in numbers listed below:



  • Domestic: 1-844-512-2921


  • International: 1-412-317-6671


  • Conference ID: 11161100


Bain Capital Specialty Finance, Inc.


Consolidated Statements of Assets and Liabilities

(in thousands, except share and per share data)










































































































































































































































































































































































































































































































 


 


As of


 


 


As of


 


 


 


December 31, 2025


 


 


December 31, 2024


 


 


 


 


 


 


 


 


 


Assets


 


 


 


 


 


 


 


 


Investments at fair value:


 


 


 


 


 


 


 


 


Non-controlled/non-affiliate investments (amortized cost of $1,891,513 and $1,784,019, respectively)


 


$


 


1,905,297


 


 


$


 


1,773,742


 


Non-controlled/affiliate investments (amortized cost of $7,504 and $77,269, respectively)


 


 


 


18,674


 


 


 


 


75,733


 


Controlled affiliate investments (amortized cost of $603,650 and $585,702, respectively)


 


 


 


584,470


 


 


 


 


581,714


 


Cash and cash equivalents


 


 


 


23,092


 


 


 


 


51,562


 


Foreign cash (cost of $2,477 and $2,640, respectively)


 


 


 


3,151


 


 


 


 


1,963


 


Restricted cash and cash equivalents


 


 


 


32,667


 


 


 


 


45,541


 


Collateral on derivatives


 


 


 


10,993


 


 


 


 


9,755


 


Deferred financing costs


 


 


 


3,543


 


 


 


 


4,591


 


Interest receivable on investments


 


 


 


38,023


 


 


 


 


39,164


 


Interest rate swap


 


 


 


7,976


 


 


 


 


—


 


Receivable for sales and paydowns of investments


 


 


 


28,856


 


 


 


 


37,760


 


Prepaid insurance


 


 


 


489


 


 


 


 


197


 


Unrealized appreciation on forward currency exchange contracts


 


 


 


—


 


 


 


 


4,690


 


Dividend receivable


 


 


 


5,354


 


 


 


 


5,745


 


Total Assets


 


$


 


2,662,585


 


 


$


 


2,632,157


 


 


 


 


 


 


 


 


 


 


Liabilities


 


 


 


 


 


 


 


 


Debt (net of unamortized debt issuance costs of $10,110 and $4,929, respectively)


 


$


 


1,470,796


 


 


$


 


1,390,270


 


Interest payable


 


 


 


12,376


 


 


 


 


13,860


 


Payable for investments purchased


 


 


 


2,110


 


 


 


 


29,490


 


Collateral payable on derivatives


 


 


 


12,907


 


 


 


 


—


 


Unrealized depreciation on forward currency exchange contracts


 


 


 


9,061


 


 


 


 


1,185


 


Base management fee payable


 


 


 


9,408


 


 


 


 


9,160


 


Incentive fee payable


 


 


 


5,877


 


 


 


 


4,696


 


Accounts payable and accrued expenses


 


 


 


12,910


 


 


 


 


14,771


 


Distributions payable


 


 


 


9,730


 


 


 


 


29,053


 


Total Liabilities


 


 


 


1,545,175


 


 


 


 


1,492,485


 


 


 


 


 


 


 


 


 


 


Commitments and Contingencies (See Note 11)


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Net Assets


 


 


 


 


 


 


 


 


Common stock, par value $0.001 per share, 100,000,000,000 and 100,000,000,000 shares authorized, 64,868,507 and 64,562,265 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively


 


 


 


65


 


 


 


 


65


 


Paid in capital in excess of par value


 


 


 


1,161,110


 


 


 


 


1,159,493


 


Total distributable loss


 


 


 


(43,765


)


 


 


 


(19,886


)


Total Net Assets


 


 


 


1,117,410


 


 


 


 


1,139,672


 


Total Liabilities and Total Net Assets


 


$


 


2,662,585


 


 


$


 


2,632,157


 


 


 


 


 


 


 


 


 


 


Net asset value per share


 


$


 


17.23


 


 


$


 


17.65


 


See Notes to Consolidated Financial Statements


Bain Capital Specialty Finance, Inc.


Consolidated Statements of Operations

(in thousands, except share and per share data)

(Unaudited)
































































































































































































































































































































































































































































































































































































































































































































































































































 


For the Year Ended December 31,


 


 


 


2025


 


 


 


2024


 


 


 


2023


 


Income


 


 


 


 


 


 


 


 


 


 


 


Investment income from non-controlled/non-affiliate investments:


 


 


 


 


 


 


 


 


 


 


 


Interest from investments


$


 


172,277


 


 


$


 


179,956


 


 


$


 


184,921


 


Dividend income


 


 


6,093


 


 


 


 


1,958


 


 


 


 


62


 


PIK income


 


 


29,234


 


 


 


 


22,680


 


 


 


 


20,536


 


Other income


 


 


9,760


 


 


 


 


18,597


 


 


 


 


10,561


 


Total investment income from non-controlled/non-affiliate investments


 


 


217,364


 


 


 


 


223,191


 


 


 


 


216,080


 


 


 


 


 


 


 


 


 


 


 


 


 


Investment income from non-controlled/affiliate investments:


 


 


 


 


 


 


 


 


 


 


 


Interest from investments


 


 


135


 


 


 


 


3,140


 


 


 


 


9,890


 


Dividend income


 


 


—


 


 


 


 


920


 


 


 


 


4,815


 


PIK income


 


 


30


 


 


 


 


461


 


 


 


 


2,308


 


Other income


 


 


118


 


 


 


 


—


 


 


 


 


—


 


Total investment income from non-controlled/affiliate investments


 


 


283


 


 


 


 


4,521


 


 


 


 


17,013


 


 


 


 


 


 


 


 


 


 


 


 


 


Investment income from controlled affiliate investments:


 


 


 


 


 


 


 


 


 


 


 


Interest from investments


 


 


39,420


 


 


 


 


39,145


 


 


 


 


33,739


 


Dividend income


 


 


16,163


 


 


 


 


25,796


 


 


 


 


30,957


 


PIK income


 


 


10


 


 


 


 


—


 


 


 


 


—


 


Total investment income from controlled affiliate investments


 


 


55,593


 


 


 


 


64,941


 


 


 


 


64,696


 


Total investment income


 


 


273,240


 


 


 


 


292,653


 


 


 


 


297,789


 


 


 


 


 


 


 


 


 


 


 


 


 


Expenses


 


 


 


 


 


 


 


 


 


 


 


Interest and debt financing expenses


 


 


80,585


 


 


 


 


74,688


 


 


 


 


80,008


 


Base management fee


 


 


37,163


 


 


 


 


35,644


 


 


 


 


36,095


 


Incentive fee


 


 


18,144


 


 


 


 


28,872


 


 


 


 


25,456


 


Professional fees


 


 


2,855


 


 


 


 


3,494


 


 


 


 


2,561


 


Directors fees


 


 


720


 


 


 


 


695


 


 


 


 


716


 


Other general and administrative expenses


 


 


8,424


 


 


 


 


10,108


 


 


 


 


7,981


 


Total expenses, net of fee waivers


 


 


147,891


 


 


 


 


153,501


 


 


 


 


152,817


 


Net investment income before taxes


 


 


125,349


 


 


 


 


139,152


 


 


 


 


144,972


 


Income tax expense, including excise tax


 


 


3,753


 


 


 


 


4,475


 


 


 


 


3,357


 


Net investment income


 


 


121,596


 


 


 


 


134,677


 


 


 


 


141,615


 


 


 


 


 


 


 


 


 


 


 


 


 


Net realized and unrealized gains (losses)


 


 


 


 


 


 


 


 


 


 


 


Net realized loss on non-controlled/non-affiliate investments


 


 


(13,469


)


 


 


 


(18,174


)


 


 


 


(62,903


)


Net realized gain (loss) on non-controlled/affiliate investments


 


 


(14,759


)


 


 


 


7,727


 


 


 


 


19,006


 


Net realized gain (loss) on foreign currency transactions


 


 


761


 


 


 


 


(320


)


 


 


 


(5,134


)


Net realized gain (loss) on forward currency exchange contracts


 


 


(5,817


)


 


 


 


2,304


 


 


 


 


(407


)


Net change in unrealized appreciation on foreign currency translation


 


 


1,435


 


 


 


 


(251


)


 


 


 


4,050


 


Net change in unrealized appreciation on forward currency exchange contracts


 


 


(12,566


)


 


 


 


5,765


 


 


 


 


(2,322


)


Net change in unrealized appreciation on non-controlled/non-affiliate investments


 


 


24,061


 


 


 


 


11,424


 


 


 


 


49,524


 


Net change in unrealized appreciation on non-controlled/affiliate investments


 


 


12,706


 


 


 


 


(16,857


)


 


 


 


(24,271


)


Net change in unrealized appreciation on controlled affiliate investments


 


 


(15,192


)


 


 


 


(6,877


)


 


 


 


4,217


 


Total net loss


 


 


(22,840


)


 


 


 


(15,259


)


 


 


 


(18,240


)


 


 


 


 


 


 


 


 


 


 


 


 


Net increase in net assets resulting from operations


$


 


98,756


 


 


$


 


119,418


 


 


$


 


123,375


 


 


 


 


 


 


 


 


 


 


 


 


 


Basic and diluted net investment income per share of common stock


$


 


1.88


 


 


$


 


2.09


 


 


$


 


2.19


 


Basic and diluted increase in net assets resulting from operations per share of common stock


$


 


1.53


 


 


$


 


1.85


 


 


$


 


1.91


 


Basic and diluted weighted average common stock outstanding


 


 


64,821,087


 


 


 


 


64,562,265


 


 


 


 


64,562,265


 


See Notes to Consolidated Financial Statements


About Bain Capital Specialty Finance, Inc.


Bain Capital Specialty Finance, Inc. is an externally managed specialty finance company focused on lending to middle market companies. BCSF is managed by BCSF Advisors, LP, an SEC-registered investment adviser and a subsidiary of Bain Capital Credit, LP. Since commencing investment operations on October 13, 2016, and through December 31, 2025, BCSF has invested approximately $9,809.3 million in aggregate principal amount of debt and equity investments prior to any subsequent exits or repayments. BCSF’s investment objective is to generate current income and, to a lesser extent, capital appreciation through direct originations of secured debt, including first lien, first lien/last out, unitranche and second lien debt, investments in strategic joint ventures, equity investments and, to a lesser extent, corporate bonds. BCSF has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended.


Forward-Looking Statements


This letter may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this letter may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the U.S. Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this letter.


Contacts


Investor Contact:

Katherine Schneider

Tel. (212) 803-9613

investors">mailto:kschneider@baincapitalbdc.com">investors@baincapitalbdc.com


Media Contact:

Scott Lessne

Tel. +1 (212) 300-1800

slessne">mailto:slessne@apcoworldwide.com">slessne@apcoworldwide.com

_