Executive Summary

FSCO’s Q3 2025 earnings release is scheduled for November 24, 2025 after market close, with the earnings presentation posted concurrently; a recorded call and transcript are slated for November 25. As of today, no Q3 financial results, 8-K Item 2.02, or transcript have been released .
The fund maintained its monthly distribution at $0.0678 per share for October–December 2025; the annualized distribution yield was 11.3% on NAV and 11.8% on market price as of September 30, 2025, and management reiterated distributions have been fully covered by 2025 NII on a tax basis .
Credit risk update: FSCO reported it no longer has exposure to First Brands Group, which filed for bankruptcy on September 29, 2025—removing a potential headline risk heading into Q3 results .
Capital actions: On November 13, FSCO entered into an equity total return swap on FS Specialty Lending Fund (FSSL) shares, enabling economic exposure up to $50 million notional; FSCO receives FSSL dividends while paying OBFR + 250 bps on notional and posting 70% collateral—potentially impacting forward NII and NAV volatility .

What Went Well and What Went Wrong

What Went Well

Distribution durability and visibility: The Board declared $0.0678 per share for Oct/Nov/Dec, highlighting income consistency and planning visibility for shareholders; YTD distributions have been fully covered by NII on a tax basis in 2025 .
Yield and returns improved into Q3: Annualized distribution yields increased vs. prior month (NAV yield 11.3% as of 9/30 vs. 11.0% as of 8/31), and the fund reiterated approx. $2.2B AUM and strategy breadth across event-driven/special-situations credit .
De-risking update: FSCO disclosed it no longer has exposure to First Brands, which filed for bankruptcy, reducing a potential loss event ahead of Q3 disclosure .

What Went Wrong

Lack of reported Q3 financials as of Nov 20: No 8-K 2.02 or transcript yet—limiting visibility into NII, coverage, and realized/unrealized marks until Nov 24–25 .
YTD return variability: Reported YTD total return on NAV declined from 10.7% as of 8/31 to 9.5% as of 9/30, suggesting some late-Q3 market softness in mark-to-market returns despite sustained distribution coverage .
Incremental leverage/complexity: The new equity TRS adds financing costs (OBFR + 250 bps) and collateral requirements (70%) that can modestly increase funding costs/NAV sensitivity alongside dividend capture, requiring monitoring post-Q3 .

Financial Results

Note: FSCO has not yet released Q3 2025 results. The release and presentation are scheduled for Nov 24, with the recorded call and transcript on Nov 25; therefore, revenue/EPS/NII and margin data are not yet available .

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue / NII	TBD	TBD	TBD (to be released Nov 24)
EPS (GAAP)	TBD	TBD	TBD
Net Income	TBD	TBD	TBD
NAV per Share	TBD	TBD	TBD
Distribution per Share	$0.0678	$0.0678	$0.0678 (Oct/Nov/Dec declared)

KPIs and recent disclosed data:

KPI	Aug 2025 (as of 7/31)	Sep 2025 (as of 8/31)	Oct 2025 (as of 9/30)
Monthly Distribution/Share	$0.0678	$0.0678	$0.0678
Annualized Distribution Yield on NAV	11.1%	11.0%	11.3%
Annualized Distribution Yield on Market Price	10.9%	10.8%	11.8%
YTD Total Return on NAV	9.3%	10.7%	9.5%
YTD Total Return on Market Price	16.5%	18.3%	10.1%
AUM	~$2.2B	~$2.2B	~$2.2B

Capital actions (Q4 items relevant to Q3 outlook):

Item	Detail
Equity TRS on FSSL	Up to $50M notional; FSCO receives FSSL dividends; pays OBFR + 250 bps on notional; 70% collateral; 3-year term; adviser does not charge fees on TRS income

Guidance Changes

FSCO does not provide traditional revenue/EPS guidance. Distributions remain the most relevant forward indicator.

Metric	Period	Previous Guidance	Current Guidance	Change
Monthly Distribution/Share	September 2025	$0.0678	N/A	N/A
Monthly Distribution/Share	October 2025	$0.0678 (ongoing)	$0.0678	Maintained
Monthly Distribution/Share	November 2025	$0.0678 (ongoing)	$0.0678	Maintained
Monthly Distribution/Share	December 2025	$0.0678 (ongoing)	$0.0678	Maintained

Upcoming event timing (for positioning): Q3 results Nov 24 after close; call/transcript Nov 25 .

Earnings Call Themes & Trends

Note: Q3 2025 call/transcript will be posted on Nov 25 per company; prior content unavailable in SEC-indexed transcripts. This section will be updated post-release .

Topic	Previous Mentions (Q1–Q2 2025)	Current Period (Q3 2025)	Trend
Distribution coverage/NII	Management emphasized full coverage in 2025 (press updates)	Await Q3 call/transcript	TBD
Credit risk and workout exposure	Bankruptcy of First Brands: no exposure	Await Q3 portfolio detail	Improving (reduced headline risk)
Funding costs and leverage	N/A	Equity TRS adds OBFR+250 bps cost, collateral, dividend capture	Mixed: carry opportunity vs cost
Macro/Rate outlook	Commentary referenced potential Fed cuts, stability focus	Await Q3 macro framing	TBD

Management Commentary

“Announcing our monthly dividends in bulk underscores both the strength of our cash flow and our commitment to transparency… In a market environment where the Federal Reserve is contemplating further interest rate cuts and investors are increasingly seeking stability, providing clarity around current income is a core part of our value proposition to shareholders.” — Andrew Beckman, Head of Global Credit and Portfolio Manager, on Oct 8 distribution declaration .
FSCO will release Q3 results and post the presentation Nov 24; recorded call and transcript to follow Nov 25 .
Risk update: FSCO reported no exposure to First Brands following its bankruptcy filing .
Capital deployment tool: FSCO initiated a three-year equity TRS on FSSL shares up to $50M notional, receiving FSSL dividends while paying OBFR+250 bps, collateralized at 70%; advisory fees do not apply to TRS income .

Q&A Highlights

Not applicable yet; the company will post the recorded call and transcript on Nov 25. Expect discussion on: NII coverage of the distribution, marks/unrealized P&L drivers, credit quality/any non-accruals, impact of the new equity TRS on carry and risk, and outlook for distributions into 2026 .

Estimates Context

Wall Street consensus (S&P Global) for Q3 2025 EPS and revenue/NII is unavailable for FSCO; GetEstimates returned no data for “Primary EPS Consensus Mean” or “Revenue Consensus Mean” for Q3 2025. Values retrieved from S&P Global.*

Key Takeaways for Investors

Near-term catalyst: Q3 results and presentation on Nov 24 (after close) followed by the recorded call/transcript on Nov 25—expect price sensitivity to NII coverage, NAV trajectory, and credit marks .
Income stability: Distribution maintained at $0.0678/month through year-end; annualized yield rose to 11.3% on NAV and 11.8% on market price as of 9/30; management asserts YTD distributions fully covered by NII on a tax basis .
Risk posture: No exposure to First Brands bankruptcy eliminates a potential Q3/Q4 headwind .
Funding/carry dynamics: New equity TRS can add dividend income from FSSL but introduces OBFR+250 bps financing cost and collateral requirements; monitor NII uplift vs. cost and any NAV sensitivity .
Watch list into the print: (1) distribution coverage metrics, (2) net investment income trend vs. prior quarters, (3) any non-accruals/realized losses, (4) leverage and liquidity profile, and (5) commentary on 2026 distribution outlook amid potential Fed cuts .
Trading implications: With no Street consensus and limited pre-release data, positioning likely hinges on Q3 NII vs. the $0.0678 run-rate, NAV directionality, and credit quality disclosures. Ex-date on Nov 20 and payable Nov 28 for the November distribution may also impact near-term flows .

Citations:

Q3 timing, call/transcript plan:
Distribution declarations and yields (Aug/Sep/Oct):
First Brands exposure update:
Equity TRS details (notional, terms, fees):

Footnote: *Values retrieved from S&P Global.

FS Credit Opportunities Corp. (FSCO)·Q3 2025 Earnings Summary