PSBD · Palmer Square Capital BDC Inc.

Palmer Square Capital BDC Inc. announced first quarter 2026 financial results showing declines in key metrics amid a volatile macroeconomic environment. Total investment income fell to $26.2 million from $31.2 million in the prior year period, driven by lower interest income of $25.1 million compared to $29.8 million, with recurring PIK interest income minimal at $431 thousand or 1.64% of total investment income. Net investment income decreased to $11.0 million or $0.35 per share from $12.9 million or $0.40 per share, reflecting higher expenses relative to income despite a management fee waiver. The quarter saw significant total net realized and unrealized losses of $48.3 million, more than double the $21.3 million from Q1 2025, contributing to a NAV drop to $13.30 per share from $14.85 at year-end 2025. Portfolio composition remained stable with 96% senior secured loans, 283 investments across 214 companies at $1.2 billion fair value, and non-accrual investments at less than 0.01%. Portfolio yield improved to 11.73% from 10.37% year-over-year. New investments funded totaled $109.4 million, offset by $79.9 million in sales and repayments. Debt-to-equity rose to 1.70x from 1.54x, with $702.3 million debt outstanding and $325.3 million liquidity available against $20.3 million unfunded commitments. Management declared a Q2 base dividend of $0.36 per share, consistent with policy, expecting a supplemental dividend announcement in June. CEO Christopher D. Long highlighted portfolio stability and positioning for improved conditions and favorable risk-adjusted spreads.