Executive Summary

Q4 2025 GAAP net investment income per share was $0.15, versus Wall Street consensus Primary EPS of $0.1925, a miss; total investment income was $7.74M, below the $8.62M Street revenue estimate, reflecting lower cash yields and more payments redirected to resets/refis than in Q3 *.
Core net investment income (non-GAAP) was $0.32 per share, fully covering the $0.315 quarterly common dividend; recurring cash flows were $0.51 per share, supporting dividend sustainability .
Portfolio yield and collateral metrics moderated but remained healthy: weighted-average GAAP yield 14.44% (vs. 15.11% in Q3), and weighted-average junior OC cushion improved to 4.59% (vs. 4.50% Q3) .
Capital structure optimization: new $30M credit facility (SOFR + 3.25%); issued $30M 7.375% Series D Term Preferred (CCID) and $17.5M 7.25% Series E Convertible Preferred; redeemed $52M 8.75% Series A Term Preferred on Nov 3, 2025 (reducing higher-cost capital) .
Near-term catalysts include dividend coverage from CNII/recurring cash flows and continued reset/refinancing activity; monitoring NAV trajectory is prudent (Oct 31 management unaudited NAV per share $5.93 vs. $6.13 at Sep 30) .

What Went Well and What Went Wrong

What Went Well

Dividend coverage: Core NII of $0.32 exceeded the $0.315 quarterly dividend; management reiterated confidence, stating “we maintained the monthly dividend that is covered by core net investment income” .
Portfolio optimization: five resets and two refinancings extended reinvestment periods and enhanced portfolio positioning; new deployments of $34.9M at 13.65% GAAP yield .
Funding cost actions: redeemed $52M Series A Term Preferred (8.75%) and added a $30M facility at SOFR + 3.25%, lowering reliance on higher-cost capital .

What Went Wrong

Street miss: GAAP EPS (Primary EPS) of $0.15 missed $0.1925 consensus; total investment income of $7.74M below $8.62M estimate, weighed by lower cash yield vs. Q3 and payments redirected to resets/refis (7% of portfolio not paying) *.
Sequential moderation: portfolio weighted-average GAAP yield decreased to 14.44% from 15.11% in Q3; recurring cash flows fell to $0.51/share from $0.55/share in Q3 .
NAV trend: NAV per share declined to $6.13 at Sep 30 from $6.51 at Jun 30; management’s unaudited NAV was $5.93 at Oct 31, indicating continued mark-to-market pressure .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025	Q3 2025	Q4 2025
Total investment income ($USD Thousands)	$7,901	$8,269	$8,565	$8,609	$7,736
Net investment income ($USD Thousands)	$4,248	$4,092	$4,028	$3,927	$3,162
Net investment income per share ($USD)	$0.30	$0.26	$0.23	$0.19	$0.15
Adjusted NII per share ($USD)	$0.31	$0.27	$0.26	$0.22	$0.17
Core NII per share ($USD)	$0.46	$0.45	$0.27	$0.35	$0.32
Net income per share ($USD)	$0.24 [inferred: $3,485/14,309k ≈ display not provided]; table shows net income per share where available: $(0.06)	—	$(0.17)	$(0.13)	$(0.06)
Recurring cash flows per share ($USD)	$0.70	$0.70	$0.49	$0.55	$0.51
NAV per share ($USD)	$7.64	$7.44	$6.98	$6.51	$6.13

Consensus vs Actual (Q4 2025):

Metric	Consensus	Actual
Primary EPS ($USD)	0.1925*	0.15
Revenue ($USD)	$8,618,860*	$7,736,000
EBITDA ($USD)	$5,935,000*	N/A (fund reports NII/Net Income) —
Net Income Normalized ($USD)	$4,132,800*	N/A (not disclosed in press/presentation) —

Values marked with * are retrieved from S&P Global.

KPIs and Portfolio Metrics:

KPI	Q2 2025	Q3 2025	Q4 2025
Cash yield on quarterly CLO payments (%)	22.67%	23.11%	21.80%
Portfolio weighted-average GAAP yield (%)	16.48%	15.11%	14.44%
Weighted-average junior OC cushion (%)	4.46%	4.50%	4.59%
Total investments at fair value ($USD Thousands)	$197,902	$200,357	$192,204
# of CLO holdings	61	60	54

Segment/Asset Mix (as of Sep 30, 2025):

Asset Class	Mix (%)
CLO Equity	98.8%
Legacy Real Estate Loan	1.1%
CLO Debt	0.1%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Common dividend per month ($)	Dec 2025–Feb 2026	$0.105/month through Nov 2025	$0.105/month through Feb 2026	Maintained (extended)
Preferred dividend (Series D) per month ($)	Dec 2025–Feb 2026	N/A	$0.1536/month declared	New
Recurring cash flows per share ($)	Q4 2025 (reference)	Approx $0.51 expected in Q4 2025	$0.51 realized in Q4 2025; approx $0.48 expected in Q1 2026	Lower sequential outlook
Credit facility	Effective Jul 11, 2025	New $30M, SOFR + 3.25%, upsizable to $50M	Reiterated $30M, SOFR + 3.25%, upsizable to $50M	Maintained
Capital structure (preferred)	Q4 2025	Series A (8.75%) outstanding	Issued $30M Series D (7.375%) and $17.5M Series E (7.25%); redeemed $52M Series A on Nov 3, 2025	Optimized (lower-cost mix)

Earnings Call Themes & Trends

Note: A Q4 2025 earnings call was held Nov 19, 2025; a transcript was not available in our document catalog. The company indicated a recording would be posted on the website .

Topic	Previous Mentions (Q2 & Q3 2025)	Current Period (Q4 2025)	Trend
Dividend coverage	Maintained $0.105/month; CNII coverage; recurring cash flows Q2: $0.49, Q3: $0.55	CNII $0.32 covered $0.315 dividend; recurring cash flows $0.51; declared through Feb 2026	Stable coverage; cautious into Q1 2026 ($0.48)
Resets/refinancings	13 accretive resets/refis in Q2; 2 opportunistic in Q3	5 resets, 2 refinancings in Q4; total 30 for FY	Active optimization continues
Portfolio yields	W/A GAAP yield: 16.48% (Q2) → 15.11% (Q3)	14.44% (Q4)	Gradual moderation
OC cushion	4.46% (Q2) → 4.50% (Q3)	4.59% (Q4)	Slight improvement
Capital structure	ATM issuance, Series B conversions (Q3); new credit facility (Q3)	Issued Series D & Series E; redeemed Series A	Lower-cost capital, added flexibility

Management Commentary

“Our fourth-quarter results reflect continued focus on positioning CCIF for long-term success… completed five resets and two refinancings… maintained the monthly dividend that is covered by core net investment income, and we believe the portfolio remains well positioned as market conditions continue to evolve.” — Nishil Mehta, Principal Executive Officer and President .
Dividend policy and support: declared $0.105 per month through Feb 2026, backed by CNII and recurring cash flows; Series D preferred dividends also declared .

Q&A Highlights

A full transcript was not available in our catalog. The company scheduled the call for Nov 19, 2025 and indicated a recording would be posted on its website . No Q&A themes can be verified from primary documents at this time.

Estimates Context

EPS and revenue missed consensus: Primary EPS $0.15 vs $0.1925; total investment income $7.74M vs $8.62M, reflecting fewer paying positions (7% redirected to resets/refis and initial distributions outstanding) and lower cash yield vs Q3 *.
We do not observe a formal Street consensus for non-GAAP CNII; however, the coverage of dividends via CNII reduced estimate risk to payout sustainability.
Values marked with * are retrieved from S&P Global.

Key Takeaways for Investors

Dividend remains covered by CNII/recurring cash flows, but sequential moderation in portfolio yields and a lower Q1 2026 recurring cash flow outlook ($0.48/share) warrant close monitoring of coverage buffer .
The Street miss on EPS/revenue stems from portfolio cash dynamics (resets/refis, primary issuances) and lower cash yield; watch timing effects on quarterly receipts vs GAAP yield recognition *.
Capital structure has been materially improved: replacing higher-cost Series A with Series D/E and adding a low-spread credit facility should enhance net income over time and provide liquidity for opportunistic deployments .
NAV trajectory bears scrutiny; the Oct 31 unaudited NAV ($5.93) vs Sep 30 NAV ($6.13) indicates continued market mark-to-market pressure; loan market default rates and CCC bucket trends remain key macro drivers .
Operational execution via resets/refis (30 in FY) and diversified manager lineup supports OC cushions and portfolio resilience; maintain focus on collateral quality metrics (OC cushion, CCC exposure, collateral prices) .
Near-term trading: dividend yield remains a support, but estimate sensitivity and NAV updates can be catalysts; medium-term thesis relies on sustaining cash generation, optimizing funding cost, and stabilizing NAV amidst macro credit cycles .

References: ; ; ; ; . Values marked with * are retrieved from S&P Global.

Carlyle Credit Income Fund (CCIF)·Q4 2025 Earnings Summary