Q1 26 EPS
$0.38
BEAT +9.04%
Est. $0.35
Q1 26 Revenue
$71.8M
MISS 3.57%
Est. $74.5M
vs S&P Since Q1 26
-64.5%
TRAILING MARKET
MFIC -61.3% vs S&P +3.2%
Market Reaction
Did MFIC Beat Earnings? Q1 2026 Results
MidCap Financial Investment Corporation posted a mixed first quarter for fiscal 2026, reporting net investment income per share of $0.38 and total investment income of $71.83 million, while a sharp swing in realized and unrealized losses pushed the c… Read more MidCap Financial Investment Corporation posted a mixed first quarter for fiscal 2026, reporting net investment income per share of $0.38 and total investment income of $71.83 million, while a sharp swing in realized and unrealized losses pushed the company to a net loss per share of $0.30, a stark reversal from earnings of $0.32 in the year-ago quarter. The primary drag came from portfolio markdowns tied to broader credit spread widening and credit weakness on select positions, with net realized and unrealized losses totaling $61.14 million compared to just $3.95 million in Q1 2025. Against that backdrop, management aggressively redirected capital toward share buybacks, repurchasing 7.1 million shares for $76.00 million at a weighted average price of $10.73, generating $0.24 per share of NAV accretion. NAV per share still declined 2.5% sequentially to $13.82, and net leverage edged higher to 1.55x, reflecting a shrinking portfolio as net repayments of $142.00 million far exceeded new commitments of $50.00 million.
Key Takeaways
- • NAV per share decline driven by net realized and unrealized losses of $61.1 million reflecting broader credit spread widening and credit weakness on certain positions
- • Net investment income stable at $0.38 per share supported by lower total expenses including zero performance-based incentive fees
- • Accretive share buybacks at approximately 23% discount to NAV generated $0.24 per share of NAV accretion
- • Net repayments of $142 million including $22 million from Merx Aviation reduced portfolio size
- • Interest income declined as portfolio contracted and weighted average yields compressed to 9.5% from 9.7%
MFIC YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
“As discussed last quarter, given the size of the stock's discount to NAV, we prioritized allocating capital toward stock repurchases rather than deploying capital into new investments during the quarter. While NAV per share declined due to portfolio losses, the impact was partially offset by the accretive impact of stock buybacks executed below NAV and net investment income in excess of the dividend. Our net loss for the quarter was driven by a combination of unrealized valuation adjustments reflecting broader credit spread widening, as well as credit weakness in certain positions. We believe that the Company's fee structure is one of the most attractive fee structures among listed BDCs that is meaningfully aligned with stockholders and helps mitigate the impact of losses.”
— Tanner Powell, Q1 2026 Earnings Press Release
MFIC Earnings Trends
MFIC vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
MFIC EPS Trend
Earnings per share: estimate vs actual
MFIC Revenue Trend
Quarterly revenue: estimate vs actual
MFIC Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $0.35 | $0.38 | +9.04% | $71.8M | -3.57% |
| Q4 25 BEAT FY | $0.37 | $0.39 | +5.86% | $78.4M | -0.65% |
| FY Full Year | $1.50 | $1.52 | +1.23% | $320.9M | -0.21% |
| Q3 25 BEAT | $0.38 | $0.38 | +0.37% | $82.6M | -1.09% |
| Q2 25 BEAT | $0.38 | $0.39 | +3.94% | $81.2M | -0.42% |
| Q1 25 MISS | $0.38 | $0.37 | -3.44% | $78.7M | -4.60% |