0001534254-26-000003
SEC filingCION Investment Corp. reported a net decrease in net assets resulting from operations of $20.6 million for fiscal year 2025, driven by net realized and unrealized losses of $113.7 million, which offset a net investment income after taxes of $93.0 million. Total investment income was $240.8 million, primarily from interest and fee income, while total operating expenses were $147.9 million, with interest expense being the largest component at $90.5 million. The company's net asset value per share was $14 at year-end, with total assets of $1.85 billion and total liabilities of $1.15 billion, resulting in shareholders' equity of $707.6 million. Operating cash flow was positive at $76.8 million, but financing activities used $76.3 million, primarily for share repurchases and distributions. The company's asset coverage ratio was 162% as of December 31, 2025, above the required 150% minimum.
CION Investment Corp. reported a net decrease in net assets resulting from operations of $20.6 million for fiscal year 2025. This result was driven by net investment income after taxes of $93.0 million being offset by net realized and unrealized losses of $113.7 million. The net investment income was generated from total investment income of $240.8 million, which included fee income of $20.1 million, with the remainder primarily from interest income. Total operating expenses were $147.9 million, consisting of management fees ($26.1 million), administrative services expense ($5.2 million), subordinated incentive fee on income ($19.7 million), general and administrative expenses ($6.3 million), and interest expense ($90.5 million). The company's net asset value per share was $14 at December 31, 2025, with weighted average shares outstanding of 52.3 million.
The company's revenue is derived from investment activities, with total investment income of $240.8 million for FY 2025. This income primarily consists of interest income from the company's debt investments, though the specific breakdown between interest and other investment income components beyond the disclosed $20.1 million in fee income is not detailed in the provided data. The company's investment portfolio at fair value was $1.81 billion as of December 31, 2025. Approximately 5.8% of total investment income was earned from the investment in David's Bridal, LLC, which represented 8.0% of the total portfolio at fair value. The company's revenue generation is affected by interest rate fluctuations and the performance of its portfolio companies.
The company's profitability metrics show a net investment income margin (net investment income/total investment income) of approximately 38.6% for FY 2025. Operating expenses represented 61.4% of total investment income, with interest expense being the largest component at 37.6% of total investment income. The subordinated incentive fee on income was $19.7 million, representing 8.2% of total investment income. The company's ability to generate positive net investment income was offset by significant realized and unrealized losses on investments, resulting in an overall net decrease in net assets. The net realized losses were $39.6 million, while net change in unrealized depreciation on investments was $74.1 million.
Operating activities generated $76.8 million in cash for FY 2025, primarily from net accretion of discount on investments ($25.7 million), proceeds from principal repayment of investments ($349.2 million), and other adjustments. These inflows were partially offset by purchase of investments ($264.0 million) and paid-in-kind interest and dividends capitalized ($52.2 million). Financing activities used $76.3 million, with $17.2 million for repurchase of common stock, $78.0 million for shareholders' distributions paid, $170.0 million for repayments under financing arrangements, partially offset by $192.5 million from borrowings under financing arrangements. The balance sheet shows total assets of $1.85 billion, including investments at fair value of $1.81 billion and cash of $8.2 million. Total liabilities were $1.15 billion, primarily from financing arrangements of $1.13 billion. Shareholders' equity was $707.6 million.
The company faces several risk factors that could impact future performance, including interest rate volatility, inflationary pressures, and geopolitical uncertainties. The company notes that U.S. inflation rates have fluctuated in recent periods and remain close to historic levels, with heightened inflation potentially persisting in the near to medium-term. Market volatility has been exacerbated by geopolitical tensions, trade disputes, and fluctuations in global interest rates. The company's ability to maintain its status as a BDC and RIC is subject to regulatory requirements, including asset coverage ratios and distribution requirements. As of December 31, 2025, the company's asset coverage ratio was 162%, above the required 150% minimum. The company also faces cybersecurity risks and regulatory changes that could impact operations and increase compliance costs.