FS KKR Capital

Q2 FY2026 EarningsQ2 FY26 results showed a significant divergence between core earnings and credit performance: total investment income of $290M slightly beat the $288.0M consensus, while net investment income (NII) of $0.44 per share exceeded the $0.42 expected. However, GAAP net income of -$34M and NAV per share of $18.30 significantly missed consensus estimates of $121.1M and $19.37, respectively. The NAV erosion was primarily driven by $154M in net realized and unrealized losses, largely stemming from marks on the COPJV and Production Resource Group. Management declared a Q3 distribution of $0.44 per share, providing 1.0x coverage based on current NII.