CCAP · Crescent Capital BDC, Inc.

Crescent Capital BDC’s Q1 2026 results reflect a material deterioration in operating performance compared to both the prior quarter and year-ago period, driven primarily by significant net unrealized depreciation ($19.4M) and net realized losses ($11.6M), which collectively reversed $8.5M of net asset growth in Q4 2025 into a $15.5M net decrease in net assets. Investment income declined 7% sequentially to $37.9M, attributed to restructuring of debt investments and lower benchmark rates—interest income fell to $34.5M from $37.7M, though dividend income rose modestly. The fee reduction announced effective April 1, 2026—lowering the base management fee from 1.25% to 1.00% and the incentive fee from 17.5% to 15.0%—signals a strategic response to earnings pressure and aims to enhance long-term sustainability and alignment with shareholders. NAV per share dropped 4.3% to $18.27, consistent with the broader decline in total net assets ($674.0M vs. $706.0M at year-end), underscoring valuation sensitivity in a volatile rate environment. Despite the net loss, the Company maintained its $0.34 quarterly dividend and added $0.09 in special dividends to distribute undistributed taxable income, preserving payout continuity. Portfolio composition remained stable—99.2% floating-rate debt supports interest rate resilience—but the 1.2% yield compression (9.8% vs. 10.0% in Q4) reflects ongoing repricing dynamics. Management cited no forward guidance in the release, limiting visibility on near-term recovery trajectory.