FDUS · Fidus Investment Corporation

Fidus Investment Corporation delivered robust Q1 2026 results, with total investment income surging 30.2% year-over-year to $47.5 million, propelled by a 13.1% rise in interest income from higher average debt balances, a 320.5% jump in fee income from a one-time portfolio refinancing, and increased payment-in-kind interest. Despite a 77.0% drop in dividend income, these factors more than offset the decline, leading to net investment income of $24.6 million or $0.65 per share, up 35.2% from the prior year. Adjusted NII of $0.62 per share excluded capital gains incentive fees, aligning closely with the company's practice of over-earning its base dividend. Expenses rose 25.2% to $22.9 million, driven by higher interest on borrowings, management fees, and incentive fees, though partially mitigated by a lower capital gains incentive accrual. Portfolio activity was strong, with $118.7 million deployed across two new investments—$7.0 million in OpenBrand and $6.4 million in MRC Drake Buyer—while repayments of $73.1 million supported liquidity. The $1.4 billion portfolio at 102.5% of cost basis featured 72.5% variable-rate debt yielding 12.5% on average. Management highlighted the portfolio's defensive credit quality and cash flow generation, declaring a Q2 total dividend of $0.62 per share ($0.43 base + $0.19 supplemental), payable June 29, backed by $1.14 per share spillover income. Subsequent investments in PureCars and additional SBA debentures underscore ongoing deployment capacity amid $49.7 million cash and $139.9 million credit facility availability.