Executive Summary

Q3 results were steady on earnings but softer on revenue: Net investment income (NII) per share was $0.46, flat QoQ and down YoY, while investment income fell to $41.4M; EPS was $0.19 and NAV/share declined to $19.28 on realized/unrealized losses tied to tariff-impacted portfolio names . Versus consensus, EPS was essentially in-line and revenue was a modest miss (about $1.0M) as fee income softened QoQ .
Dividend support remains solid: management highlighted 110% base dividend coverage and declared a Q4 2025 base dividend of $0.42 per share; leverage remained at 1.23x with improved cost of debt, preserving flexibility .
NAV fell QoQ to $19.28 from $19.55, primarily due to losses in certain portfolio companies with weakened outlooks from tariff headwinds; management expects a more accommodative rate backdrop to support origination going forward .
Watch items into Q4: revenue sensitivity to lower base rates, fee income variability, and any incremental non-accruals; management indicated no material non-recurring items this quarter and emphasized disciplined underwriting and robust origination pipeline .

What Went Well and What Went Wrong

What Went Well

Stable earnings power and dividend coverage: NII/share of $0.46 covered the $0.42 base dividend; management stated coverage was 110% and reiterated confidence in dividend sustainability despite rate cuts .
Balance sheet flexibility improved marginally: weighted avg cost of debt declined to 5.99% from 6.09% QoQ; undrawn revolver capacity rose to $239.8M; leverage at 1.23x remained below the 1.30x upper target range noted on the call .
Portfolio composition stable with high floating-rate exposure: 97.4% of debt investments are floating rate; unitranche first lien remains the core at ~66% of portfolio fair value .

What Went Wrong

Revenue softness and slight miss vs Street: investment income declined to $41.4M from $43.0M QoQ and $51.6M YoY; consensus was ~$42.35M, implying a ~$1.0M miss as fee income moderated .
NAV decline driven by portfolio marks: NAV/share fell to $19.28 from $19.55 QoQ, with realized/unrealized losses tied to tariff-impacted companies; management cited tariff-related headwinds on certain borrowers’ outlooks .
Credit watch items: third-party call coverage highlighted two new non-accruals and cautioned base rate declines could pressure NII; fee income was below historical run rate (management said no material non-recurring items) .

Financial Results

Core P&L and NAV

Metric	Q3 2024	Q2 2025	Q3 2025
Investment income ($M)	$51.60	$43.00	$41.40
Net investment income ($M)	$23.50	$16.90	$16.90
NII per share ($)	$0.64	$0.46	$0.46
Net income per share ($)	$0.41	$0.41	$0.19
NAV per share ($)	$20.20	$19.55	$19.28
Weighted avg yield (at cost)	11.6%	10.4%	10.4%
% of debt at floating rates	97.4%	97.2%	97.4%
Cost of debt (%)	—	6.09%	5.99%
Debt-to-equity (x)	—	1.23x	1.23x

Estimates vs Actuals (S&P Global consensus)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue actual ($M)	$42.13	$42.99	$41.35
Revenue consensus mean ($M)	$45.08*	$42.52*	$42.35*
Primary EPS actual ($)	$0.45	$0.46	$0.46
Primary EPS consensus mean ($)	$0.525*	$0.467*	$0.462*
# of estimates (Revenue / EPS)	5* / 6*	5* / 6*	5* / 6*
* Values retrieved from S&P Global.

Portfolio Asset Mix

Investment Type ($M, %)	Dec 31, 2024	Sep 30, 2025
Senior secured first lien	$379.7 (23.7%)	$352.8 (22.2%)
Unitranche first lien	$1,044.1 (65.3%)	$1,039.8 (65.8%)
Unitranche first lien – last out	$14.8 (0.9%)	$26.2 (1.7%)
Senior secured second lien	$38.5 (2.4%)	$18.6 (1.2%)
Unsecured debt	$17.5 (1.1%)	$19.5 (1.2%)
Equity & other	$64.9 (4.1%)	$84.7 (5.4%)
LLC/LP equity interests	$39.4 (2.5%)	$39.0 (2.5%)
Total investments	$1,598.9 (100%)	$1,580.6 (100%)

KPIs and Balance Sheet

KPI	Q1 2025	Q2 2025	Q3 2025
Portfolio companies (count)	191	187	187
Investments at fair value ($M)	$1,620.7	$1,600.7	$1,580.7
Cash & restricted cash ($M)	$30.5	$26.1	$27.8
Undrawn credit capacity ($M)	$310.0	$227.2	$239.8
Cost of debt (weighted avg)	6.36%	6.09%	5.99%
Debt-to-equity (x)	1.25x	1.23x	1.23x
Net realized gains (losses) ($M)	$(6.5)	$(2.9)	$(5.0)
Net change in unrealized gains (losses) ($M)	$(6.2)	$1.0	$(4.8)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Base dividend per share	Q4 2025	$0.42 (Q3 2025 base)	$0.42	Maintained
Supplemental dividend	Q4 2025	Variable framework in place (prior quarters)	No Q4 supplemental payout (cap exceeded 50% of excess earnings)	Lowered (none)
Financial guidance (revenue, margins, OpEx, taxes)	2025	None provided	None provided	—

Note: CCAP does not issue formal financial guidance; dividend declarations serve as the clearest forward indicator .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2, Q-1)	Current Period (Q3 2025)	Trend
Rate environment & NII sensitivity	Q2: Revenue up slightly QoQ on interest/dividends; cost of debt 6.09% . Q1: Investment income down vs Q4 due to benchmark rate declines; cost of debt 6.36% .	Management cautioned lower base rates may pressure NII; still confident in dividend coverage given liquidity and pipeline .	Slight headwind to NII from rate cuts.
Credit quality / non-accruals	Not detailed in PRs.	Two new non-accruals noted by third-party coverage; tariff headwinds impacting certain names .	Deterioration in a subset; watchlist elevated.
Origination spreads & pipeline	Q2: Active originations; invested $57.5M vs $92.7M exits; unitranche core . Q1: Invested $104.7M vs $78.0M exits .	Spreads around 500 bps over base; robust Crescent platform pipeline highlighted .	Healthy, supportive to earnings.
Leverage & liquidity	Q2: 1.23x leverage; $227.2M undrawn . Q1: 1.25x; $310.0M undrawn .	1.23x; $239.8M undrawn; below 1.30x target upper bound .	Stable/prudent.
Tariffs/macro impact	Limited in prior PRs.	Tariff-driven realized/unrealized losses pressured NAV/share (down to $19.28) .	Newer headwind this quarter.

Management Commentary

“Earnings continue to remain in excess of our dividend, 110% base dividend coverage for the quarter.” — Jason Breaux, CEO .
“Net asset value was $19.28 per share as of September 30th, compared to $19.55 per share as of June 30th. The quarter-over-quarter decline was primarily due to unrealized and realized losses stemming from certain portfolio companies that have demonstrated weakened operating outlooks due to tariffs.” — Management remarks .
“We ended the quarter with net debt to equity of 1.20x, below the upper end of our 1.30x target range… a more accommodative rate environment should serve as a tailwind for new deal activity.” — Management .
“Origination spreads around 500 bps over the baseline… fee income was lower than the historical run rate; no material non-recurring items this quarter.” — Henry Chung (spreads) and Gerhard Lombard (fees/non-recurring) .

Q&A Highlights

Dividend coverage and spillover: Analysts probed coverage durability; management reiterated 110% coverage and confidence in sustainability amid lower base rates .
Tariff impacts and credit: Questions centered on the tariff-driven marks and any spread compression; management emphasized disciplined underwriting and stable spreads (~500 bps over base) .
Supplemental dividend framework: Management indicated no Q4 supplemental under the variable framework given the cap mechanics this quarter .
Balance sheet & pipeline: Discussion highlighted leverage below the 1.30x upper bound and a robust origination pipeline supported by Crescent’s platform .

Estimates Context

EPS came essentially in-line with consensus for Q3 ($0.46 vs $0.462*), while revenue modestly missed ($41.35M vs $42.35M*), mainly on lighter fee income QoQ; prior quarters show similar near-in-line EPS with more variability on revenue .
Given lower base rates and fee-income variability, Street models may edge down near-term revenue while holding NII relatively stable if origination volumes and spreads remain supportive .
* Values retrieved from S&P Global.

Key Takeaways for Investors

Earnings resilient: NII/share held at $0.46 with strong dividend coverage, despite modest top-line softness; focus on the durability of coverage as base rates drift lower .
NAV watch: Tariff-driven realized/unrealized losses lowered NAV/share to $19.28; monitor credit migration and any further macro-sensitive names .
Balance sheet optionality: Lower cost of debt and ample undrawn capacity ($239.8M) support selective growth; leverage at 1.23x affords room vs 1.30x upper bound .
Pipeline and spreads supportive: Origination spreads ~500 bps over base and a robust Crescent platform pipeline should help offset some rate headwinds .
Revenue variability: Fee income was below historical run rate, contributing to the revenue miss; near-term revenue could remain choppy even if core interest income stays consistent .
Dividend signaling: Q4 base dividend maintained at $0.42; no Q4 supplemental under the framework this quarter, an incremental negative vs prior special payments, but coverage remains healthy .
Trading setup: The narrative hinges on credit marks (tariffs), revenue normalization (fees), and sustained dividend coverage; any signs of additional non-accruals or further tariff fallout are potential downside catalysts, while stronger origination volume and stable spreads could be upside drivers .

Sources: Q3 2025 8-K and press release , Q3 press release –, Q2 2025 8-K/press release – –, Q1 2025 press release –, and earnings call coverage .

Crescent Capital BDC, Inc. (CCAP)·Q3 2025 Earnings Summary