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Crescent Capital BDC, Inc. (CCAP)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered stable investment income of $43.0M and net investment income (NII) of $16.9M ($0.46/share), with GAAP EPS of $0.41/share; the Board declared a Q3 2025 regular dividend of $0.42 and confirmed the third and final $0.05 special dividend on Sep 15, 2025 .
  • Versus estimates: EPS of $0.46 missed consensus by ~$0.01 while revenue of $42.99M beat by ~$$0.48M; results were broadly in line given modest revenue outperformance and essentially flat NII versus Q1 [*S&P Global].
  • The Board authorized a $20.0M share repurchase program, adding an incremental capital allocation lever that can catalyze stock reaction, especially at discounts to NAV ($19.55 at quarter-end) .
  • Liquidity remained solid with $26.1M in cash/restricted cash and $227.2M of undrawn credit capacity; debt-to-equity was 1.23x, and weighted average borrowing cost was 6.09% .
  • Portfolio quality and positioning remained service-heavy and first-lien dominant; management reiterated long-term, disciplined underwriting and buybacks as “an attractive use of excess capital” in Q2 remarks .

What Went Well and What Went Wrong

What Went Well

  • NII held steady quarter-over-quarter ($16.9M; $0.46/share vs $0.45 in Q1), supported by higher dividend income from Logan JV and modestly higher other fee income .
  • Investment income of $43.0M improved sequentially from $42.1M, even as benchmark rates declined earlier in the year; revenue beat consensus by ~$0.48M [*S&P Global].
  • Capital allocation advanced: Board authorized a $20.0M repurchase program; regular dividend maintained at $0.42/share with the final $0.05 special dividend schedule confirmed .
  • Quote: “Our positioning has and always will be for the long term… opportunistically repurchasing shares at certain levels is an attractive use of excess capital.” – management, Q2 call .

What Went Wrong

  • EPS modestly missed consensus (~$0.01), driven by one-time accelerated amortization of $0.02/share related to deferred financing costs and continued macro rate pressure on asset yields [*S&P Global].
  • GAAP net income remained sensitive to realized/unrealized marks (Q2 net realized losses of $(2.9)M offset by $1.0M net change in unrealized gains), underscoring mark-to-market volatility .
  • Logan JV distributions remain lumpy due to CLO overcollateralization tests and timing mismatches; management cautioned on variability as the vehicle deleverages over time (reinforced in prior quarter commentary) .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Investment income ($USD Millions)$48.951 $42.129 $42.992
Net investment income ($USD Millions)$21.703 $16.621 $16.887
NII per share ($USD)$0.59 $0.45 $0.46
GAAP EPS (net income per share) ($USD)$0.55 $0.11 $0.41
Net increase in net assets from operations ($USD Millions)$20.385 $3.904 $15.013
Net Income Margin %—9.27%*34.92%*
Weighted avg yield on income producing securities (at cost)12.2% 10.4% 10.4%
% of debt investments at floating rates96.9% 97.2% 97.2%

Values with * retrieved from S&P Global.

Estimates vs Actuals (Q2 2025)

MetricConsensusActualSurprise
EPS ($USD)$0.4667*$0.46 -$0.0067 (~-$0.01)*
Revenue ($USD)$42.517M*$42.992M +$0.475M*

Values with * retrieved from S&P Global.

Segment/Asset-Type Breakdown (Portfolio at Fair Value)

Investment TypeQ4 2024 Fair Value ($MM)Q4 2024 %Q2 2025 Fair Value ($MM)Q2 2025 %
Senior secured first lien$379.7 23.7% $381.3 23.8%
Unitranche first lien$1,044.1 65.3% $1,043.6 65.2%
Unitranche first lien – last out$14.8 0.9% $26.2 1.6%
Senior secured second lien$38.5 2.4% $23.4 1.5%
Unsecured debt$17.5 1.1% $18.9 1.2%
Equity & other$64.9 4.1% $69.0 4.3%
LLC/LP equity interests$39.4 2.5% $38.3 2.4%
Total investments$1,598.9 100.0% $1,600.7 100.0%

KPIs and Balance Sheet

KPIQ1 2025Q2 2025
Total assets ($USD Millions)$1,666.5 $1,654.4
Total net assets ($USD Millions)$727.1 $724.7
NAV per share ($USD)$19.62 $19.55
Cash + restricted cash ($USD Millions)$30.5 $26.1
Undrawn capacity ($USD Millions)$310.0 $227.2
Debt-to-equity (x)1.25x 1.23x
Weighted avg cost of debt (%)6.36% 6.09%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Regular dividend per shareQ3 2025$0.42 (maintained historically) $0.42 Maintained
Special dividend per shareQ3 20253×$0.05 plan announced Q4 2024 Final $0.05 payable Sep 15, 2025 Maintained
Supplemental dividendQ3 2025Framework in place; prior quarter not paid due to cap No Q3 supplemental payout (measurement cap) Maintained policy; no payout
Share repurchase authorizationOngoingNone$20.0M authorized Raised capital return capacity
SPV asset facility spreadOngoing2.45% pre-amendment 1.95% post-April rightsizing Lowered borrowing cost

Note: No explicit revenue/margin/OpEx/OI&E/tax-rate guidance was provided in Q2 materials .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Tariffs/macroWatch-list prudence; small subsector exposures in logistics/packaging/med-tech; tariff exposure limited and monitored “Low single digits” direct tariff impact; positioning unchanged; focus on service businesses Stable, limited direct impact
Dividend coverageBase dividend coverage strong; not paying supplemental due to measurement cap Regular dividend maintained; no Q3 supplemental payout Consistent policy discipline
Logan JV distributionsEnding reinvestment period; equity tranche distribution timing/OC tests cause lumpiness Continued lumpy distributions expected; reinvestment proceeds redeployed favorably Ongoing wind-down; variable
Buybacks/capital allocationConsidered in Q1/Q4; mindful of leverage and size $20M repurchase program authorized; buybacks attractive at discounts New program; opportunistic
Portfolio credit quality87% rated 1–2 at Q4; proactive watch-listing; Q1 nonaccruals increased modestly “86% at or above expectations”; nonaccruals ~2.4% of FV Stable; low nonaccruals

Management Commentary

  • Capital return: “Opportunistically repurchasing shares at certain levels is an attractive use of excess capital… we will balance our repurchase program with other factors such as our existing investment pipeline and leverage levels.” – Q2 call .
  • Long-term posture: “Our positioning has and always will be for the long term… representative of CCAP’s longer-term track record of delivering a stable NAV profile and an attractive total economic return.” – Q2 call .
  • Dividend discipline (prior quarter context): “We have prioritized consistency and NAV stability over the long term… This marks our 37th consecutive quarter of earning our regular dividend.” – Q1 call .
  • Logan JV: “Residual cash flows… have a timing mismatch… part of the residual cash flows… were retained as part of the overcollateralization tests… distributions likely to be lumpier as the structure delevers.” – Q1 call .

Q&A Highlights

  • Buybacks and capital allocation: Management affirmed buybacks as an attractive use of excess capital when shares trade below NAV, with attention to leverage and pipeline capacity .
  • Dividend framework: No Q3 supplemental dividend due to the measurement cap; base dividend coverage remained strong .
  • Tariff exposure: Management reiterated low direct tariff exposure and limited expected impact due to portfolio composition (service-centric, domestic focus) .
  • Logan JV: Continued distribution variability due to OC tests and re-investment timing; near-term upside from favorable redeployment post “Liberation Day” volatility .

Estimates Context

  • EPS: Q2 EPS was $0.46 versus consensus of $0.4667 (miss ~$$0.01); revenue was $42.99M versus consensus $42.52M (beat ~$0.48M). Investors should expect modest model adjustments (flat-to-slightly lower EPS trajectory given rate dynamics, with revenue near prior run-rate) [*S&P Global].
  • Consensus visibility: S&P Global estimates align closely with reported NII/EPS and investment income; no formal company guidance was provided for revenue/margins .

Values with * retrieved from S&P Global.

Key Takeaways for Investors

  • Operational steadiness: Sequential uptick in investment income and stable NII underscore resilient earnings capacity despite lower base rates; dividend coverage intact .
  • Capital return optionality: New $20.0M buyback authority adds a supportive technical; expect opportunistic repurchases at discounts to NAV ($19.55) .
  • Rate sensitivity: Asset yields flat QoQ at 10.4% while funding cost down to 6.09%; modest tailwinds from April facility repricing should help NII glidepath .
  • Logan JV: Expect lumpy distributions during CLO wind-down; management’s proactive approach and favorable redeployment mitigate volatility .
  • Credit quality: Continued first-lien heavy, sponsor-backed exposure; nonaccruals remain low by sector standards, supporting NAV stability narrative .
  • Trading implications: Near-term—share repurchase program and dividend consistency are positive supports; watch rate path and OC test-driven Logan JV variability. Medium-term—disciplined underwriting and service-heavy portfolio should sustain stable NII and NAV profiles .

Additional Detail: Liquidity and Leverage

  • Cash + restricted cash: $26.1M; undrawn capacity: $227.2M; debt-to-equity 1.23x; WA cost of debt 6.09% .
  • NAV/share: $19.55 (vs $19.62 in Q1) .

Cross-References and Clarifications

  • One-time accelerated amortization reduced NII by $0.02/share this quarter; explains part of the EPS miss versus consensus .
  • Revenue beat versus consensus despite rate headwinds suggests resilient fee/dividend contributions and stable core interest income [*S&P Global].