Bain Capital Specialty Finance, Inc. Announces September 30, 2026 Financial Results and Declares Fourth Quarter 2026 Dividend of $0.42 per Share

BOSTON--( BUSINESS WIRE)--Bain Capital Specialty Finance, Inc. (NYSE: BCSF, the “Company”, “our” or “we”) today announced financial results for the third quarter ended September 30, 2026, and that its Board of Directors (the “Board”) has declared a dividend of $0.42 per share for the fourth quarter of 2026.

“We delivered solid third quarter results, including a 10.3% annualized NII yield on equity, and our diversified portfolio of borrowers remains healthy,” said Michael Ewald, Chief Executive Officer of BCSF. “With yields beginning to move higher as floating rate loans reset, and new deals continuing to fund at attractive spreads, we see this environment creating compelling opportunities in the core middle market. Our longstanding and disciplined strategy positions us well to capitalize on them.”

Quarterly Highlights

Selected Financial Highlights

($ in millions, unless otherwise noted)

Q3 2026

Q2 2026

Net investment income per share

0.43

0.44

Net investment income

27.7

28.6

Earnings per share

0.26

0.22

Regular dividends per share declared and payable

0.42

($ in millions, unless otherwise noted)

As of

September 30, 2026

As of

June 30, 2026

Total fair value of investments

2,270.3

2,363.6

Total assets

2,427.4

2,620.1

Total net assets

1,069.8

1,080.4

Net asset value per share

16.49

16.65

Portfolio and Investment Activity

For the three months ended September 30, 2026, the Company invested $121.5 million in 120 portfolio companies, including $47.9 million in 5 new companies and $73.6 million in 115 existing companies. The Company had $203.1 million of principal repayments and sales in the quarter, resulting in net investment fundings of $(81.6) million.

Investment Activity for the Quarter Ended September 30, 2026:

($ in millions)

Q3 2026

Q2 2026

Investment Fundings

121.5

182.0

Sales and Repayments

203.1

277.2

Net Investment Activity

(81.6

)

(95.2

)

As of September 30, 2026, the Company’s investment portfolio had a fair value of $2,270.3 million, comprised of investments in 215 portfolio companies operating across 30 different industries.

Investment Portfolio at Fair Value as of September 30, 2026:

Investment Type

$ in Millions

% of Total

First Lien Senior Secured Loan

1,412.7

62.3

Second Lien Senior Secured Loan

21.3

0.9

Subordinated Debt

90.6

4.0

Preferred Equity

177.8

7.8

Equity Interest

185.9

8.2

Warrants

0.7

0.0

Investment Vehicles

381.3

16.8

Subordinated Note in ISLP

190.7

8.4

Equity Interest in ISLP

26.7

1.2

Subordinated Note in SLP

162.1

7.1

Preferred and Equity Interest in SLP

1.8

0.1

Total

2,270.3

100.0

As of September 30, 2026, the weighted average yield on the investment portfolio at amortized cost and fair value were 11.2% and 10.7%, respectively, as compared to 10.8% and 10.4%, respectively, as of June 30, 2026 (4)(5). 94.1% of the Company’s debt investments at fair value were in floating rate securities.

As of September 30, 2026, four portfolio companies were on non-accrual status, representing 3.3% and 2.2% of the total investment portfolio at amortized cost and fair value, respectively.

As of September 30, 2026, ISLP’s investment portfolio had an aggregate fair value of $696.9 million, comprised of investments in 38 portfolio companies operating across 15 different industries. The investment portfolio on a fair value basis was comprised of 93.8% first lien senior secured loans, 0.7% second lien senior secured loans and 5.5% equity interests. 100% of ISLP’s debt investments at fair value were in floating rate securities.

As of September 30, 2026, SLP’s investment portfolio had an aggregate fair value of $1,617.7 million, comprised of investments in 110 portfolio companies operating across 26 different industries. The investment portfolio on a fair value basis was comprised of 99.2% first lien senior secured loans, 0.3% second lien senior secured loans, and 0.5% equity interests. 100.0% of SLP’s debt investments at fair value were in floating rate securities.

Results of Operations

For the three months ended September 30, 2026 and June 30, 2026, total investment income was $59.9 million and $62.3 million, respectively.

Total expenses (before taxes) for the three months ended September 30, 2026 and June 30, 2026 were $31.4 million and $33.0 million, respectively.

Net investment income for the three months ended September 30, 2026 and June 30, 2026 was $27.7 million or $0.43 per share and $28.6 million or $0.44 per share, respectively.

During the three months ended September 30, 2026, the Company had net realized and unrealized losses of $11.0 million.

Net increase in net assets resulting from operations for the three months ended September 30, 2026 was $16.7 million, or $0.26 per share.

Capital and Liquidity

As of September 30, 2026, the Company had total principal debt outstanding of $1,340.0 million, including $68.0 million outstanding in the Company’s Sumitomo Credit Facility, $272.0 million outstanding of the debt issued through BCC Middle Market CLO 2019-1 LLC, $300.0 million outstanding in the Company’s senior unsecured notes due October 2026, $350.0 million outstanding in the Company's senior unsecured notes due March 2030, and $350.0 million outstanding in the Company's senior unsecured notes due March 2031.

For the three months ended September 30, 2026, the weighted average interest rate on debt outstanding was 5.0%, as compared to 5.0% for the three months ended June 30, 2026.

As of September 30, 2026, the Company had cash and cash equivalents (including foreign cash) of $28.5 million, restricted cash and cash equivalents of $30.1 million, $16.2 million of unsettled trades, net of receivables and payables of investments, and $887.0 million of capacity under its Sumitomo Credit Facility. As of September 30, 2026, the Company had $435.5 million of undrawn investment commitments.

As of September 30, 2026, the Company’s debt-to-equity and net debt-to-equity ratios were 1.25x and 1.18x, respectively, as compared to 1.41x and 1.22x, respectively, as of June 30, 2026 (2).

Endnotes

(1)

Net investment income yields and net income returns are calculated on average net assets, or book value, for the respective periods shown.

(2)

Net debt-to-equity represents principal debt outstanding less cash and cash equivalents and unsettled trades, net of receivables and payables of investments.

(3)

The fourth quarter dividend is payable on December 29, 2026 to stockholders of record as of December 15, 2026.

(4)

The weighted average yield is computed as (a) the annual stated interest rate or yield earned on the relevant accruing debt and other income producing securities plus amortization of fees and discounts on the performing debt and other income producing investments, divided by (b) the total relevant investments at amortized cost or fair value. The weighted average yield does not represent the total return to our stockholders.

(5)

For non-stated rate income producing investments, computed based on (a) the dividend or interest income earned for the respective trailing twelve months ended on the measurement date, divided by (b) the ending amortized cost or fair value, as applicable. In instances where historical dividend or interest income data is not available or not representative for the trailing twelve months ended, the dividend or interest income is annualized.

Conference Call Information

A conference call to discuss the Company’s financial results will be held live at 10:00 a.m. Eastern Time on November 10, 2026. Please visit BCSF’s webcast link located on the Events & Presentations page of the Investor Resources section of BCSF’s website at http://www.baincapitalspecialtyfinance.com for a slide presentation that complements the Earnings Conference Call.

Participants are also invited to access the conference call by dialing one of the following numbers:

All participants will need to reference “Bain Capital Specialty Finance - Third Quarter Ended September 30, 2026 Earnings Conference Call” once connected with the operator. All participants are asked to dial in 10-15 minutes prior to the call.

Replay Information:

An archived replay will be available approximately three hours after the conference call concludes through November 24, 2026 via a webcast link located on the Investor Resources section of BCSF’s website, and via the dial-in numbers listed below:

Bain Capital Specialty Finance, Inc.

Consolidated Statements of Assets and Liabilities

(in thousands, except share and per share data)

As of

September 30,

2026

December 31,

2025

(Unaudited)

Assets

Investments at fair value:

Non-controlled/non-affiliate investments (amortized cost of $1,686,467 and $1,891,513, respectively)

1,682,370

1,905,297

Non-controlled/affiliate investments (amortized cost of $44,550 and $7,504, respectively)

56,832

18,674

Controlled affiliate investments (amortized cost of $553,204 and $603,650, respectively)

531,132

584,470

Cash and cash equivalents

25,690

23,092

Foreign cash (cost of $2,309 and $2,477, respectively)

2,854

3,151

Restricted cash and cash equivalents

30,110

32,667

Collateral on derivatives

31,781

10,993

Deferred financing costs

5,432

3,543

Interest receivable on investments

36,526

38,023

Interest rate swap

—

7,976

Receivable for sales and paydowns of investments

16,878

28,856

Prepaid insurance

438

489

Unrealized appreciation on forward currency exchange contracts

3,462

—

Dividend receivable

3,866

5,354

Total Assets

2,427,371

2,662,585

Liabilities

Debt (net of unamortized debt issuance costs of $14,714 and $10,110, respectively)

1,300,111

1,470,796

Interest rate swap

24,873

—

Interest payable

10,502

12,376

Payable for investments purchased

700

2,110

Collateral payable on derivatives

—

12,907

Unrealized depreciation on forward currency exchange contracts

—

9,061

Base management fee payable

8,779

9,408

Incentive fee payable

—

5,877

Accounts payable and accrued expenses

12,580

12,910

Distributions payable

—

9,730

Total Liabilities

1,357,545

1,545,175

Commitments and Contingencies (See Note 10)

Net Assets

Common stock, par value $0.001 per share, 100,000,000,000 and 100,000,000,000 shares authorized, 64,868,507 and 64,868,507 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively

Paid in capital in excess of par value

1,161,110

Total distributable loss

(91,349

)

(43,765

)

Total Net Assets

1,069,826

1,117,410

Total Liabilities and Total Net Assets

2,427,371

2,662,585

Net asset value per share

16.49

17.23

See Notes to Consolidated Financial Statements

Bain Capital Specialty Finance, Inc.

Consolidated Statements of Operations

(in thousands, except share and per share data)

(Unaudited)

For the Three Months Ended

September 30,

For the Nine Months Ended

September 30,

2026

2025

2026

2025

Income

Investment income from non-controlled/non-affiliate investments:

Interest from investments

34,572

43,677

111,700

129,641

Dividend income

841

600

2,114

5,265

PIK income

7,499

7,462

23,735

21,569

Other income

1,154

1,538

4,397

8,529

Total investment income from non-controlled/non-affiliate investments

44,066

53,277

141,946

165,004

Investment income from non-controlled/affiliate investments:

Interest from investments

166

—

204

135

PIK income

395

—

395

Other income

109

Total investment income from non-controlled/affiliate investments

587

690

274

Investment income from controlled affiliate investments:

Interest from investments

10,270

10,273

27,639

29,228

Dividend income

4,929

3,581

18,097

10,490

PIK income

Total investment income from controlled affiliate investments

15,200

13,856

45,739

39,726

Total investment income

59,853

67,200

188,375

205,004

Expenses

Interest and debt financing expenses

20,140

20,310

61,056

60,986

Base management fee

8,778

9,430

26,856

27,755

Incentive fee

—

4,599

6,419

12,267

Professional fees

608

713

1,920

2,141

Directors fees

180

182

540

538

Other general and administrative expenses

1,707

1,965

5,537

6,464

Total expenses, net of fee waivers

31,413

37,199

102,328

110,151

Net investment income before taxes

28,440

30,001

86,047

94,853

Income tax expense, including excise tax

731

801

2,369

2,953

Net investment income

27,709

29,200

83,678

91,900

Net realized and unrealized gains (losses)

Net realized gain (loss) on non-controlled/non-affiliate investments

(10,004

)

1,345

(13,412

)

(14,780

)

Net realized gain (loss) on non-controlled/affiliate investments

(52

)

(11,081

)

(6,650

)

(14,759

)

Net realized gain (loss) on controlled affiliate investments

(459

)

—

(13,984

)

—

Net realized gain (loss) on foreign currency transactions

831

335

667

Net realized gain (loss) on forward currency exchange contracts

(2,097

)

(1,016

)

(8,222

)

(4,830

)

Net change in unrealized appreciation on foreign currency translation

233

(183

)

(129

)

1,736

Net change in unrealized appreciation on forward currency exchange contracts

2,763

3,023

12,523

(14,124

)

Net change in unrealized appreciation on non-controlled/non-affiliate investments

3,234

(485

)

(27,313

)

31,015

Net change in unrealized appreciation on non-controlled/affiliate investments

1,649

12,459

10,544

9,214

Net change in unrealized appreciation on controlled affiliate investments

(7,101

)

(14,894

)

(2,892

)

(15,067

)

Total net loss

(11,003

)

(10,497

)

(49,527

)

(20,928

)

Net increase in net assets resulting from operations

16,706

18,703

34,151

70,972

Basic and diluted net investment income per share of common stock

0.43

0.45

1.29

1.42

Basic and diluted increase in net assets resulting from operations per share of common stock

0.26

0.29

0.53

1.10

Basic and diluted weighted average common stock outstanding

64,868,507

64,805,106

See Notes to Consolidated Financial Statements

About Bain Capital Specialty Finance, Inc.

Bain Capital Specialty Finance, Inc. is an externally managed specialty finance company focused on lending to middle market companies. BCSF is managed by BCSF Advisors, LP, an SEC-registered investment adviser and a subsidiary of Bain Capital Credit, LP. Since commencing investment operations on October 13, 2016, and through September 30, 2026, BCSF has invested approximately $10,238.4 million in aggregate principal amount of debt and equity investments prior to any subsequent exits or repayments. BCSF’s investment objective is to generate current income and, to a lesser extent, capital appreciation through direct originations of secured debt, including first lien, first lien/last out, unitranche and second lien debt, investments in strategic joint ventures, equity investments and, to a lesser extent, corporate bonds. BCSF has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended.

Forward-Looking Statements

This press release or the webcast/conference call may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the U.S. Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein or on the webcast/conference call. All forward-looking statements speak only as of the date of this press release.