Bain Capital Specialty Finance, Inc. Announces December 31, 2025 Financial Results and Declares First 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 fourth quarter and fiscal year ended December 31, 2025, and that its Board of Directors (the “Board”) has declared a dividend of $0.42 per share for the first quarter of 2026.
“BCSF delivered strong fourth quarter and full year 2025 results driven by attractive levels of net investment income that continued to cover our dividend,” said Michael Ewald, Chief Executive Officer of BCSF. “Credit fundamentals remained strong across our highly diversified portfolio with stable credit metrics and low non-accruals. We believe the Company is well-positioned to navigate the current market environment given our longstanding, disciplined investment approach in the core middle market.”
QUARTERLY HIGHLIGHTS
SELECTED FINANCIAL HIGHLIGHTS
($ in millions, unless otherwise noted)
Q4 2025
Q3 2025
Net investment income per share
$
0.46
$
0.45
Net investment income
$
29.7
$
29.2
Earnings per share
$
0.43
$
0.29
Regular dividends per share declared and payable
$
0.42
$
0.42
Special dividends per share declared and payable
$
0.18
$
0.03
($ in millions, unless otherwise noted)
As of
December 31, 2025
As of
September 30, 2025
Total fair value of investments
$
2,508.4
$
2,534.1
Total assets
$
2,662.6
$
2,716.0
Total net assets
$
1,117.4
$
1,128.5
Net asset value per share
$
17.23
$
17.40
PORTFOLIO AND INVESTMENT ACTIVITY
For the three months ended December 31, 2025, the Company invested $167.9 million in 93 portfolio companies, including $68.3 million in 11 new companies and $99.6 million in 82 existing companies. The Company had $193.2 million of principal repayments and sales in the quarter, resulting in net investment fundings of $(25.3) million.
Investment Activity for the Quarter Ended December 31, 2025:
($ in millions)
Q4 2025
Q3 2025
Investment Fundings
$
167.9
$
340.1
Sales and Repayments
$
193.2
$
296.1
Net Investment Activity
$
(25.3
)
$
44.0
As of December 31, 2025, the Company’s investment portfolio had a fair value of $2,508.4 million, comprised of investments in 203 portfolio companies operating across 30 different industries.
Investment Portfolio at Fair Value as of December 31, 2025:
Investment Type
$ in Millions
% of Total
First Lien Senior Secured Loan
$
1,598.7
63.8
%
Second Lien Senior Secured Loan
30.0
1.2
Subordinated Debt
95.7
3.8
Preferred Equity
157.2
6.3
Equity Interest
226.7
9.0
Warrants
1.0
0.0
Investment Vehicles
399.1
15.9
Subordinated Note in ISLP
190.7
7.6
Equity Interest in ISLP
43.6
1.9
Subordinated Note in SLP
157.9
6.3
Preferred and Equity Interest in SLP
6.9
0.1
Total
$
2,508.4
100.0
%
As of December 31, 2025, the weighted average yield on the investment portfolio at amortized cost and fair value were 10.8% and 10.9%, respectively, as compared to 11.1% and 11.2%, respectively, as of September 30, 2025 (5)(6). 92.2% of the Company’s debt investments at fair value were in floating rate securities.
As of December 31, 2025, six portfolio companies were on non-accrual status, representing 1.5% and 0.8% of the total investment portfolio at amortized cost and fair value, respectively.
As of December 31, 2025, ISLP’s investment portfolio had an aggregate fair value of $733.1 million, comprised of investments in 40 portfolio companies operating across 17 different industries. The investment portfolio on a fair value basis was comprised of 94.3% first lien senior secured loans, 0.7% second lien senior secured loans and 5.0% equity interests. 100% of ISLP’s debt investments at fair value were in floating rate securities.
As of December 31, 2025, SLP’s investment portfolio had an aggregate fair value of $1,536.3 million, comprised of investments in 99 portfolio companies operating across 26 different industries. The investment portfolio on a fair value basis was comprised of 99.7% first lien senior secured loans and 0.3% second lien senior secured loans. 100.0% of SLP’s debt investments at fair value were in floating rate securities.
RESULTS OF OPERATIONS
For the three months ended December 31, 2025 and September 30, 2025, total investment income was $68.2 million and $67.2 million, respectively.
Total expenses (before taxes) for the three months ended December 31, 2025 and September 30, 2025 were $37.7 million and $37.2 million, respectively.
Net investment income for the three months ended December 31, 2025 and September 30, 2025 was $29.7 million or $0.46 per share and $29.2 million or $0.45 per share, respectively.
During the three months ended December 31, 2025, the Company had net realized and unrealized losses of $1.9 million.
Net increase in net assets resulting from operations for the three months ended December 31, 2025 was $27.8 million, or $0.43 per share.
CAPITAL AND LIQUIDITY
As of December 31, 2025, the Company had total principal debt outstanding of $1,473.0 million, including $251.0 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 March 2026, $300.0 million outstanding in the Company’s senior unsecured notes due October 2026, and $350.0 million outstanding in the Company's senior unsecured notes due March 2030.
For the three months ended December 31, 2025, the weighted average interest rate on debt outstanding was 4.6%, as compared to 4.8% for the three months ended September 30, 2025.
As of December 31, 2025, the Company had cash and cash equivalents (including foreign cash) of $26.2 million, restricted cash and cash equivalents of $32.7 million, $26.7 million of unsettled trades, net of receivables and payables of investments, and $604.0 million of capacity under its Sumitomo Credit Facility. As of December 31, 2025, the Company had $464.8 million of undrawn investment commitments.
As of December 31, 2025, the Company’s debt-to-equity and net debt-to-equity ratios were 1.32x and 1.24x, respectively, as compared to 1.33x and 1.23x, respectively, as of September 30, 2025 (3).
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 $0.15 per share special dividend was paid on January 26, 2026 to stockholders of record as of December 31, 2025. The fourth quarter $0.03 per share special dividend that was previously announced was paid on December 30, 2025 to stockholders of record as of December 16, 2025.
(4)
The first quarter dividend is payable on March 30, 2026 to stockholders of record as of March 16, 2026.
(5)
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.
(6)
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 8:00 a.m. Eastern Time on February 27, 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 - Fourth Quarter and Fiscal Year Ended December 31, 2025 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 March 13, 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
As of
December 31, 2025
December 31, 2024
Assets
Investments at fair value:
Non-controlled/non-affiliate investments (amortized cost of $1,891,513 and $1,784,019, respectively)
$
1,905,297
$
1,773,742
Non-controlled/affiliate investments (amortized cost of $7,504 and $77,269, respectively)
18,674
75,733
Controlled affiliate investments (amortized cost of $603,650 and $585,702, respectively)
584,470
581,714
Cash and cash equivalents
23,092
51,562
Foreign cash (cost of $2,477 and $2,640, respectively)
3,151
1,963
Restricted cash and cash equivalents
32,667
45,541
Collateral on derivatives
10,993
9,755
Deferred financing costs
3,543
4,591
Interest receivable on investments
38,023
39,164
Interest rate swap
7,976
—
Receivable for sales and paydowns of investments
28,856
37,760
Prepaid insurance
489
197
Unrealized appreciation on forward currency exchange contracts
—
4,690
Dividend receivable
5,354
5,745
Total Assets
$
2,662,585
$
2,632,157
Liabilities
Debt (net of unamortized debt issuance costs of $10,110 and $4,929, respectively)
$
1,470,796
$
1,390,270
Interest payable
12,376
13,860
Payable for investments purchased
2,110
29,490
Collateral payable on derivatives
12,907
—
Unrealized depreciation on forward currency exchange contracts
9,061
1,185
Base management fee payable
9,408
9,160
Incentive fee payable
5,877
4,696
Accounts payable and accrued expenses
12,910
14,771
Distributions payable
9,730
29,053
Total Liabilities
1,545,175
1,492,485
Commitments and Contingencies (See Note 11)
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 64,562,265 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively
65
65
Paid in capital in excess of par value
1,161,110
1,159,493
Total distributable loss
(43,765
)
(19,886
)
Total Net Assets
1,117,410
1,139,672
Total Liabilities and Total Net Assets
$
2,662,585
$
2,632,157
Net asset value per share
$
17.23
$
17.65
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 Year Ended December 31,
2025
2024
2023
Income
Investment income from non-controlled/non-affiliate investments:
Interest from investments
$
172,277
$
179,956
$
184,921
Dividend income
6,093
1,958
62
PIK income
29,234
22,680
20,536
Other income
9,760
18,597
10,561
Total investment income from non-controlled/non-affiliate investments
217,364
223,191
216,080
Investment income from non-controlled/affiliate investments:
Interest from investments
135
3,140
9,890
Dividend income
—
920
4,815
PIK income
30
461
2,308
Other income
118
—
—
Total investment income from non-controlled/affiliate investments
283
4,521
17,013
Investment income from controlled affiliate investments:
Interest from investments
39,420
39,145
33,739
Dividend income
16,163
25,796
30,957
PIK income
10
—
—
Total investment income from controlled affiliate investments
55,593
64,941
64,696
Total investment income
273,240
292,653
297,789
Expenses
Interest and debt financing expenses
80,585
74,688
80,008
Base management fee
37,163
35,644
36,095
Incentive fee
18,144
28,872
25,456
Professional fees
2,855
3,494
2,561
Directors fees
720
695
716
Other general and administrative expenses
8,424
10,108
7,981
Total expenses, net of fee waivers
147,891
153,501
152,817
Net investment income before taxes
125,349
139,152
144,972
Income tax expense, including excise tax
3,753
4,475
3,357
Net investment income
121,596
134,677
141,615
Net realized and unrealized gains (losses)
Net realized loss on non-controlled/non-affiliate investments
(13,469
)
(18,174
)
(62,903
)
Net realized gain (loss) on non-controlled/affiliate investments
(14,759
)
7,727
19,006
Net realized gain (loss) on foreign currency transactions
761
(320
)
(5,134
)
Net realized gain (loss) on forward currency exchange contracts
(5,817
)
2,304
(407
)
Net change in unrealized appreciation on foreign currency translation
1,435
(251
)
4,050
Net change in unrealized appreciation on forward currency exchange contracts
(12,566
)
5,765
(2,322
)
Net change in unrealized appreciation on non-controlled/non-affiliate investments
24,061
11,424
49,524
Net change in unrealized appreciation on non-controlled/affiliate investments
12,706
(16,857
)
(24,271
)
Net change in unrealized appreciation on controlled affiliate investments
(15,192
)
(6,877
)
4,217
Total net loss
(22,840
)
(15,259
)
(18,240
)
Net increase in net assets resulting from operations
$
98,756
$
119,418
$
123,375
Basic and diluted net investment income per share of common stock
$
1.88
$
2.09
$
2.19
Basic and diluted increase in net assets resulting from operations per share of common stock
$
1.53
$
1.85
$
1.91
Basic and diluted weighted average common stock outstanding
64,821,087
64,562,265
64,562,265
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 December 31, 2025, BCSF has invested approximately $9,809.3 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 letter 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 letter 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. All forward-looking statements speak only as of the date of this letter.