--- title: "MSC Income Fund | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 34.09 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285623936.md" datetime: "2026-05-07T21:28:23.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285623936.md) - [en](https://longbridge.com/en/news/285623936.md) - [zh-HK](https://longbridge.com/zh-HK/news/285623936.md) --- # MSC Income Fund | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 34.09 M Revenue: As of FY2026 Q1, the actual value is USD 34.09 M, missing the estimate of USD 36.24 M. EPS: As of FY2026 Q1, the actual value is USD 0.35, missing the estimate of USD 0.3567. EBIT: As of FY2026 Q1, the actual value is USD -11.14 M. ### First Quarter 2026 Financial Highlights #### Total Investment Income Total investment income for the first quarter of 2026 was $34.1 million, an increase of $0.9 million or 3% compared to the first quarter of 2025 . Interest income increased by $2.0 million to $29.4 million, up 7% from $27.4 million in the first quarter of 2025 . Dividend income decreased by - $1.6 million to $3.5 million, down -31% from $5.1 million in the first quarter of 2025, primarily due to a - $1.5 million decrease from the Fund’s LMM portfolio companies . Fee income increased by $0.5 million to $1.2 million, up 77% from $0.7 million in the first quarter of 2025 . #### Net Investment Income (NII) Net investment income was $16.2 million, or $0.35 per share, for the first quarter of 2026, an increase of $0.5 million or 3% from $15.7 million, or $0.35 per share, in the first quarter of 2025 . #### Adjusted Net Investment Income (ANII) Adjusted net investment income was $15.6 million, or $0.34 per share, for the first quarter of 2026, a decrease of - $0.1 million or -1% from $15.7 million, or $0.35 per share, in the first quarter of 2025 . #### Adjusted Net Investment Income Before Taxes Adjusted net investment income before taxes was $16.6 million, or $0.36 per share, for the first quarter of 2026, a decrease of - $0.2 million or -1% from $16.8 million, or $0.38 per share, in the first quarter of 2025 . #### Net Increase in Net Assets Resulting from Operations Net increase in net assets resulting from operations was $13.2 million, or $0.29 per share, for the first quarter of 2026, a decrease of - $2.7 million or -17% from $15.9 million, or $0.36 per share, in the first quarter of 2025 . This decrease was primarily due to a $2.5 million increase in net tax provision on the net fair value change of portfolio investments and a - $0.6 million decrease in the net fair value change of the Fund’s portfolio investments . #### Return on Equity Return on equity was 7.3% on an annualized basis for the first quarter of 2026, a decrease of -2.2% or -23% from 9.5% in the first quarter of 2025 . #### Expenses Total expenses, net of waivers, increased by $0.4 million, or 2.5%, to $16.8 million in the first quarter of 2026 from $16.4 million in the same period in 2025 . This increase was mainly due to a $0.7 million increase in interest expense, a $0.3 million increase in base management fees, and a $0.1 million increase in incentive fee on income, net of waivers, partially offset by a - $0.6 million decrease in the accrued capital gains incentive fee . The Operating Expenses to Assets Ratio decreased to 1.8% on an annualized basis for the first quarter of 2026, from 1.9% for the first quarter of 2025 . #### Net Realized Gain (Loss) and Net Unrealized Appreciation (Depreciation) Total net realized loss was - $0.2 million for the first quarter of 2026, compared to - $21.1 million in the first quarter of 2025 . This included - $3.7 million of realized losses on two private loan portfolio investments, partially offset by a $3.1 million realized gain on one private loan portfolio investment . Total net unrealized appreciation (depreciation) was - $2.6 million for the first quarter of 2026, compared to $18.8 million in the first quarter of 2025 . #### Net Asset Value Net asset value was $15.87 per share as of March 31, 2026, with total net assets of $719.5 million . #### Dividends and Stock Repurchases MSC Income Fund, Inc. declared a regular quarterly dividend of $0.35 per share and a supplemental dividend of $0.01 per share, totaling $0.36 per share, payable in the second quarter of 2026 . The Fund repurchased $16.0 million of its common stock at prices below net asset value, resulting in an increase in net asset value per share of approximately $0.08 per share . #### Investment Portfolio Activity MSC Income Fund, Inc. completed $54.8 million in total private loan portfolio investments, resulting in a net increase of $17.4 million in the total cost basis of the private loan investment portfolio . The Fund completed $19.4 million in total lower middle market (LMM) portfolio follow-on investments, resulting in a net increase of $15.1 million in the total cost basis of the LMM investment portfolio . #### Liquidity and Capital Resources (as of March 31, 2026) Aggregate liquidity was $210.0 million, comprising $15.6 million in cash and cash equivalents and $194.4 million of unused capacity under the Corporate Facility and SPV Facility . Outstanding borrowings under the SPV Facility were $267.0 million with an interest rate of 5.9% . Outstanding borrowings under the Corporate Facility were $83.0 million with an interest rate of 5.7% . The Fund had $150.0 million of October 2026 Notes outstanding bearing interest at 4.04% per year and $150.0 million of May 2029 Notes outstanding bearing interest at 6.34% per year . The debt-to-equity ratio was 0.90x . #### Investment Portfolio Information (as of March 31, 2026) The total investment portfolio at fair value consisted of approximately 60% private loan, 37% LMM, 2% middle market, and 1% other portfolio investments . The Private Loan Portfolio had 80 portfolio companies, with a fair value of $823.1 million and cost of $843.1 million, and a weighted-average annual effective yield of 10.5% . The LMM Portfolio had 55 portfolio companies, with a fair value of $507.6 million and cost of $399.7 million, and a weighted-average annual effective yield of 12.6% . Investments on non-accrual status comprised 1.1% of the total investment portfolio at fair value and 4.2% at cost . #### Outlook / Guidance MSC Income Fund, Inc. is observing an improved lending environment and significant opportunities within its private loan investment strategy . The Fund is well-positioned to leverage these opportunities and generate attractive returns, supported by its existing investment portfolio, favorable liquidity, expanded regulatory leverage capacity, and current investment pipeline . The Fund maintains positive future expectations . ### Related Stocks - [MSIF.US](https://longbridge.com/en/quote/MSIF.US.md) ## Related News & Research - [MSC Income Fund shifts to monthly dividends; declares $0.11 monthly and $0.03 supplemental](https://longbridge.com/en/news/285572559.md) - [The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance | HD Stock News](https://longbridge.com/en/news/286890512.md) - [Advance Auto Parts Reports First Quarter 2026 Results; Reaffirms Full Year 2026 Guidance | AAP Stock News](https://longbridge.com/en/news/287202242.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md) - [LIONSGATE REPORTS RESULTS FOR FOURTH QUARTER FISCAL 2026 | LION Stock News](https://longbridge.com/en/news/287266184.md)