S&P 500
7,522.40
+0.04%
Dow Jones
52,444.50
-0.15%
Nasdaq 100
29,348.50
+0.30%
Russell 2000
2,952.01
+0.02%
FTSE 100
10,465.80
-0.43%
Nikkei 225
67,417.20
+0.53%
Monroe Capital

Monroe Capital (MRCC) Q4 2025 Earnings

Reported Mar 5, 2026 at 4:34 PM ET · SEC Source

Q4 25 EPS

$0.11

MISS 20.86%

Est. $0.14

Q4 25 Revenue

$8.2M

MISS 67.10%

Est. $24.8M

vs S&P Since Q4 25

+2.5%

BEATING MARKET

MRCC +13.9% vs S&P +11.4%

Full Year 2025 Results

FY 25 EPS

$0.54

BEAT +5.88%

Est. $0.51

FY 25 Revenue

$37.9M

BEAT +0.73%

Est. $37.6M

Market Reaction

Did MRCC Beat Earnings? Q4 2025 Results

Monroe Capital Corporation (MRCC) delivered a disappointing fourth quarter, missing on both top and bottom lines as declining base rates and a shrinking portfolio weighed heavily on results. The business development company posted adjusted earnings p… Read more Monroe Capital Corporation (MRCC) delivered a disappointing fourth quarter, missing on both top and bottom lines as declining base rates and a shrinking portfolio weighed heavily on results. The business development company posted adjusted earnings per share of $0.11, falling 20.86% short of the $0.14 consensus estimate, while total investment income of $8.16 million trailed analyst expectations of $24.80 million by 67.10%, even as revenue surged 88.8% year over year. The primary culprit was a $4.86 million net loss driven by mark-to-market declines across certain portfolio companies, which pushed net asset value down to $7.68 per share from $7.99 in the prior quarter. Looking ahead, the strategic narrative centers squarely on MRCC's pending NAV-for-NAV merger with Horizon Technology Finance Corporation, with shareholders having already voted to approve the transaction; management sweetened the deal further by raising the special pre-merger closing distribution to $0.75 per share, signaling confidence in the combined entity's ability to deliver enhanced long-term value to stockholders.

Key Takeaways

  • • Lower interest expense from reduced average debt outstanding on revolving credit facility
  • • Additional fee income offset lower interest income from base rate decreases
  • • Decline in weighted average invested assets
  • • Completion of SLF joint venture wind-down and liquidation
  • • Mark-to-market losses on certain portfolio companies

MRCC Forward Guidance & Outlook

MRCC anticipates the closing of its proposed NAV-for-NAV merger with Horizon Technology Finance Corporation (HRZN) near the end of Q1 or early Q2 2026. Management believes the merger will unlock meaningful value for stockholders through participation in a larger, more scaled combined company with access to broader debt funding solutions, synergistic efficiencies, potential lower borrowing costs, and higher dividend potential. The dividend was reduced to $0.09 per share for Q1 2026 to align distributions with net investment income as a standalone entity amid declining base rates. The company has an estimated $0.14 per share in undistributed spillover income that will be distributed in conjunction with the merger.

24/7 Wall St

MRCC YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

24/7 Wall St

MRCC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 25

“We look forward to the closing of MRCC's previously announced proposed merger with Horizon Technology Finance Corporation ("HRZN"), which we now anticipate to occur near the end of the first quarter or early in the second quarter of this year. We continue to strongly believe this merger is in the best interest of MRCC stockholders. We are also adjusting MRCC's dividend to better align distributions with MRCC's net investment income as a stand-alone entity, in part due to the decrease in base rates.”

— Theodore L. Koenig, Q4 2025 Earnings Press Release

Back to MRCC Stock Page