SLR Investment Corp. Q3 2026 Earnings Recap

SLRC shares rose 3.3% after earnings. The positive signal was third-quarter net investment income above the distribution, alongside record originations weighted toward specialty finance, though NAV declined and management warned of rising defaults and losses across private credit.

Key Takeaways

• Net investment income was **$0.33 per share**, versus a **$0.31** distribution.
• NAV was **$17.83 per share**, down about **0.9% quarter over quarter** and **2.1% year over year**; management attributed the quarterly decline to one loan’s lower fair value.
• The watch list fell to **2% of portfolio fair value**. Software exposure was **less than 1%**, and restructured payment-in-kind income was **2% of gross income**.
• SLRC originated **$575 million** of investments, a record for the company, with **95%** weighted to specialty finance; **$429 million** of repayments left about **$146 million** in net originations.
• Management expects defaults and liability-management exercises to rise over the next year, while arguing SLRC’s collateral-focused portfolio is positioned for a typical downturn.