MSIF · MSC Income Fund, Inc.

MSC Income Fund’s Q1 2026 results reflect operational stability amid economic uncertainty, with net investment income per share holding steady at $0.35 — matching both prior-year and consensus expectations — supported by a $1.96 million increase in interest income from higher average debt investment levels, partially offset by lower benchmark rates, and a $0.51 million rise in fee income from increased investment activity. Dividend income declined sharply ($1.6 million), primarily due to reduced distributions from LMM portfolio companies, underscoring concentration risk in that segment. Total expenses rose 2.5% to $16.8 million, driven by higher interest expense (from increased borrowings), base management fees (on larger average assets), and incentive fees, though partially mitigated by a $0.6 million reduction in the capital gains incentive fee accrual due to net fair value depreciation. The $2.7 million decline in net increase in net assets from operations stemmed largely from a $2.5 million swing in tax treatment — from a $2.4 million tax benefit in Q1 2025 to a $0.1 million tax provision in Q1 2026 — and a modestly larger net fair value decrease ($2.9M vs. $2.3M), driven by $0.2 million in net realized losses and $2.6 million in net unrealized depreciation. Management highlighted improved lending conditions, an expanded regulatory leverage capacity (reducing the asset coverage requirement to 150%), and a robust investment pipeline as key enablers of future returns. The issuance of $150 million in May 2029 Notes and $16.0 million in share repurchases — which lifted NAV per share by $0.08 — signal active capital allocation aligned with valuation discipline and strategic flexibility.