Executive Summary

Q3 2025 was solid and essentially in line with consensus: Adjusted NII per share was $0.50 vs $0.498 consensus, and Total Investment Income (TII) was $37.25m vs $37.29m; QoQ softness was driven by lower prepayment/origination/amendment fees after an episodically strong Q2 . Estimates from S&P Global; values marked with an asterisk are from S&P Global.
Credit quality remained sound with non-accruals <1% of portfolio at fair value (2.8% cost); first-lien exposure continued to dominate, and weighted average debt yield remained ~13% .
Capital stack and liquidity improved post-quarter: issued $100m add-on to 6.75% 2030 notes, fully redeemed $100m 4.75% Jan-2026 notes, replaced the revolver with a new $175m SPV facility (accordion to $250m) .
Dividends: base dividend maintained at $0.43/share; supplemental reduced to $0.07 for Q4 2025 (from $0.14 in Q3), reflecting normalized fee income; spillover income remains meaningful at $39.5m ($1.09/share) .
Catalysts: robust Q4 pipeline and subsequent originations ($40.2m in two new portfolio companies in October), enhanced funding capacity via SPV facility, and steady asset yields; risks include fee income volatility and macro/tariff policy impacts (limited exposure) .

What Went Well and What Went Wrong

What Went Well

Adjusted NII covered the base dividend with “ample cushion” as management continued to emphasize portfolio resilience and disciplined underwriting; CEO: “Adjusted NII… continued to amply cover our base dividend” .
Portfolio credit quality and mix held steady: non-accruals <1% FV (2.8% cost), first-lien continued at ~82% of debt; weighted average debt yield ~13% .
Balance sheet moves de-risked near-term maturities and expanded liquidity: $100m add-on to 2030 notes; full redemption of Jan-2026 notes; new $175m SPV facility with accordion to $250m .

What Went Wrong

Fee income normalized after a strong Q2, driving QoQ declines in TII and adj. NII; CFO cited lower prepayment, origination, and amendment fees in Q3 (Q2 included ~$1.9m episodic items) .
YoY comparisons were lower on income metrics: NII $0.49 vs $0.64; adj. NII $0.50 vs $0.61, reflecting higher interest/financing expenses and capital gains fee accrual YoY .
Supplemental dividend was reduced QoQ to $0.07 (from $0.14), reflecting the quarter’s surplus over the base dividend; management maintained the $0.43 base but dialed back the supplemental .

Financial Results

Headline P&L (BDC metrics)

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Total Investment Income ($, mm)	$38.38	$36.50	$39.97	$37.25
Net Investment Income ($, mm)	$21.41	$18.22	$18.63	$17.37
NII per share ($)	$0.64	$0.53	$0.53	$0.49
Adj. NII ($, mm)	$20.42	$18.51	$19.96	$17.72
Adj. NII per share ($)	$0.61	$0.54	$0.57	$0.50

Notes: Adjusted NII excludes capital gains incentive fee accrual/reversal; see company reconciliation .

Margins (computed)

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
NII Margin (NII/TII, %)	55.8% (21.41/38.38)	49.9% (18.22/36.50)	46.6% (18.63/39.97)	46.6% (17.37/37.25)
Adj. NII Margin (Adj. NII/TII, %)	53.2% (20.42/38.38)	50.7% (18.51/36.50)	49.9% (19.96/39.97)	47.6% (17.72/37.25)

Portfolio and KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Portfolio FV ($, mm)	~$1,200	~$1,100	~$1,200
Weighted Avg Yield on Debt	13.2%	13.1%	13.0%
Non-accrual (% FV / % cost)	<1% / 3.9%	<1% / 2.9%	<1% / 2.8%
Variable-rate share of debt	72.8%	71.1%	72.0%
First-lien share of debt	~79%	~81%	~82%
Equity portfolio ($, mm)	$137.8	$138.8	$143.4
NAV ($, mm) / NAV per share	$677.9 / $19.39	$692.3 / $19.57	$711.0 / $19.56
Net originations ($, mm)	+$58.3	-$14.8 (invested $94.5; repayments $109.3)	+$37.8 (invested $74.5; repayments $36.7)
Liquidity (cash + available)	$231.5m at 3/31	~$252.7m at 6/30	~$203.8m at 9/30; ~unchanged post events
Weighted avg interest rate on debt	4.8%	4.8%	4.9%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Base Dividend per share	Q4 2025	$0.43 (Q3 dividend level)	$0.43	Maintained
Supplemental Dividend per share	Q4 2025	$0.14 (Q3)	$0.07	Lowered
Revenue/TII guidance	FY or Q4	Not provided	Not provided	—
Margin/OpEx/Tax	FY or Q4	Not provided	Not provided	—

Capital actions supporting outlook (not guidance): $100m add-on to 6.75% 2030 notes; full redemption of $100m 4.75% Jan-2026 notes; new $175m SPV facility (accordion to $250m); revolver terminated .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 and Q2)	Current Period (Q3 2025)	Trend
M&A/deal flow	Q1: “lackluster” environment; activity present but not robust . Q2: activity picked up late Q2; repayments episodic .	Healthy pipeline; Q4 originations expected “strong”; $40.2m invested post-quarter in 2 new cos .	Improving into Q4
Pricing/spreads & structures	Q2: Q3 fees/prepayments unlikely to repeat; Q2 had ~$1.9m episodic income .	Lower middle-market pricing “stabilized” over last 6–9 months; two-covenant structures intact .	Stable
Tariffs/macro exposure	Q1: direct tariff exposure “just over 5%” of portfolio; manageable .	~5%–6% exposure; two high-risk names performing well; mitigations underway .	Stable/managed
Government shutdown exposure	Not discussed.	Limited exposure; no issues observed at impacted portfolio cos .	Limited risk
Credit quality/non-accruals	Q1: <1% FV; 3.9% cost . Q2: <1% FV; 2.9% cost .	<1% FV; 2.8% cost .	Stable
Liquidity/leverage	Q1: issued $100m 2030 notes . Q2: liquidity ~$252.7m .	Added $100m 2030 notes; redeemed 2026s; new $175m SPV; liquidity ~ $204m post events .	Strengthened

Management Commentary

Strategy and coverage of dividend: “For the third quarter, Fidus’ portfolio performed well, producing adjusted net investment income that continued to amply cover our base dividend for our shareholders.” – Edward Ross, CEO .
Outlook and pipeline: “As we enter the home stretch for 2025, market activity is shaping up to be relatively decent in the fourth quarter… our expectation… is for [originations] to be strong” .
Pricing/terms: “Pricing’s come down… but that trend has kind of stabilized over the last six to nine months… we have two covenants in almost all of our deals… leverage levels have stayed pretty close to the same.” – CEO .
Liquidity and balance sheet: “We completed a $100 million debt add-on… used to fully redeem the 4.75% notes due January 2026… refinanced our line of credit… upsize to $175 million… liquidity remains approximately $204 million.” – CFO .

Q&A Highlights

Q4 activity outlook: Management expects strong originations in Q4, both new and add-ons; deal flow “healthy” though not “robust” .
Pricing/structures: Spreads stabilized; structures (leverage and fixed charge covenants) consistent; no increased risk-taking to generate yields .
Tariff exposure: Direct exposure limited to ~5%–6% of portfolio; two higher-risk names performing well; mitigations (pricing, negotiations) in place .
Government shutdown: Limited direct exposure; no issues at impacted portfolio companies as of the call .
Fee income normalization: Q2 had ~$1.9m of episodic income (prepayment fees, accelerated OID amortization); Q3 fee income decreased accordingly .

Estimates Context

Metric	Q1 2025 Estimate	Q1 2025 Actual	Q2 2025 Estimate	Q2 2025 Actual	Q3 2025 Estimate	Q3 2025 Actual
EPS (Adj. NII per share proxy)	$0.5375*	$0.54	$0.522*	$0.57	$0.498*	$0.50
TII ($)	$35.696m*	$36.496m	$37.417m*	$39.970m	$37.285m*	$37.253m

Values retrieved from S&P Global.
Context: Q3 EPS was essentially in line (slight beat); TII was in line (slight miss vs. estimates). Q2 delivered clear beats on both EPS and TII, aided by episodic fees that normalized in Q3; forward models should reflect lower assumed prepayment/origination fees absent catalysts, while giving credit for pipeline-driven deployment and added funding capacity .

Key Takeaways for Investors

Core earnings quality: Adjusted NII of $0.50 covered the $0.43 base dividend; supplemental trimmed to $0.07 reflects normalization of fee income after a strong Q2 .
Credit and yield steady: Non-accruals <1% FV; weighted average debt yield ~13%; first-lien share ~82% of debt – supportive of durable NII generation .
Deployment runway: Net originations of $37.8m in Q3 plus $40.2m post-quarter investments; management expects “strong” Q4 originations, a potential positive for TII run-rate if execution holds .
Funding flexibility: New $175m SPV facility (accordion to $250m), $100m note add-on, and redemption of 2026 notes enhance capacity and extend maturities, reducing refinancing risk and supporting growth .
Estimate implications: Expect sell-side to trim fee income assumptions post-Q2 normalization while maintaining deployment and yield assumptions given stable pricing/structures; overall, near-term consensus likely little changed .
Risk monitor: Tariff exposure manageable (~5%–6% of portfolio), but keep watching policy shifts and any spillover to portfolio companies’ margins and pricing power .
Trading lens: Near-term catalysts include Q4 origination updates, incremental equity realizations, and realized gains; dividend sustainability supported by coverage, with supplemental variable to quarterly surplus .

Appendix: Additional Data Points

Q3 2025 TII composition: interest income $30.82m; PIK interest $3.19m; dividend income $0.99m; fee income $1.32m; interest on idle funds $0.94m .
Expenses: $19.5m net of base management fee waiver; interest/financing $7.65m; base mgmt fee $5.25m; income incentive fee $4.37m; capital gains incentive fee accrual $0.35m .
NAV dynamics: NAV up to $711.0m ($19.56/share) on modest portfolio appreciation and accretive ATM issuance .
Spillover income: $39.5m ($1.09/share) at 9/30/25 .

FIDUS INVESTMENT Corp (FDUS)·Q3 2025 Earnings Summary