Q1 26 EPS
$0.33
MISS 17.29%
Est. $0.40
Q1 26 Revenue
$49.3M
MISS 8.75%
Est. $54.0M
vs S&P Since Q1 26
-20.0%
TRAILING MARKET
SLRC -17.1% vs S&P +2.9%
Market Reaction
Did SLRC Beat Earnings? Q1 2026 Results
SLR Investment Corp. Delivered a disappointing start to fiscal 2026, missing on both the top and bottom lines as declining index rates weighed heavily on income generation. The business development company posted earnings of $0.33 per share, falling … Read more SLR Investment Corp. Delivered a disappointing start to fiscal 2026, missing on both the top and bottom lines as declining index rates weighed heavily on income generation. The business development company posted earnings of $0.33 per share, falling 17.29% short of the $0.40 consensus estimate, while revenue of $49.29 million trailed the $54.01 million analyst target by 8.75%, even as that figure represented a 29.8% increase year over year. The primary culprit was rate compression, with falling benchmark rates pushing net investment income down to $17.85 million from $22.11 million in the year-ago quarter, more than offsetting any portfolio scale benefits. The comprehensive investment portfolio also contracted, as $360.40 million in repayments exceeded $242.30 million in originations, shrinking the book by $118.10 million to $3.20 billion. Despite the pressure, credit quality remained pristine, with 100% of the portfolio performing. Management guided cautiously, citing geopolitical volatility and muted M&A activity, while pointing to a permanently reduced incentive fee and over $900 million in available capital as tools to rebuild the portfolio opportunistically through the remainder of 2026.
Key Takeaways
- • Decrease in index rates pressured gross investment income lower year-over-year
- • Higher interest expense from increased average borrowings
- • 100% performing portfolio with strong credit quality
- • Net portfolio contraction as repayments ($360.4M) exceeded originations ($242.3M)
- • Asset-Based Lending contributed 44.8% of total investment income, the largest share
- • SSLP yield improved to 12.2% annualized from 9.3% in prior quarter
SLRC Forward Guidance & Outlook
Management expressed a cautious near-term outlook, citing ongoing geopolitical volatility, disruption in software and technology industries, and light M&A activity. Co-CEO Spohler indicated some evidence that investment activity and terms have improved and the company will be patient and opportunistic in rebuilding the comprehensive portfolio over the remainder of 2026. Growth initiatives are being implemented across specialty finance investment strategies that are expected to further support portfolio growth. The permanently reduced incentive fee (from 20% to 17.5%) takes effect in Q2 2026.
SLRC YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
SLRC Revenue by Segment
With YoY comparisons, source: SEC Filings
“The combination of geopolitical volatility, disruption to the software & technology industries, and light M&A transaction activity created a risk-off and wait-and-see stance across our investment pipelines in the first quarter. As credit defaults continue to rise and dispersion manifests in private credit portfolios, we continue to believe the private credit industry is in the middle stages of a credit cycle and investment activity requires an even higher degree of underwriting selectivity than is typical and a heightened focus on capital preservation. While SLRC achieved solid total returns in Q1 from strong credit performance and a 100% performing portfolio, the manager voluntarily elected to permanently reduce the performance-based incentive fee to further align ourselves with our fellow shareholders.”
— Michael Gross, Q1 2026 Earnings Press Release
SLRC Earnings Trends
SLRC vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
SLRC EPS Trend
Earnings per share: estimate vs actual
SLRC Revenue Trend
Quarterly revenue: estimate vs actual
SLRC Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $0.40 | $0.33 | -17.29% | $49.3M | -8.75% |
| Q4 25 MISS FY | $0.40 | $0.40 | -0.10% | $54.5M | -0.93% |
| FY Full Year | $1.60 | $1.59 | -0.50% | $218.5M | -0.10% |
| Q3 25 MISS | $0.41 | $0.40 | -2.91% | $57.0M | +1.22% |
| Q2 25 MISS | $0.40 | $0.40 | -0.77% | $53.9M | +1.29% |
| Q1 25 MISS | $0.41 | $0.41 | -0.12% | $53.2M | -0.47% |