Executive Summary

Q3 2025 was a stabilization quarter: NAV/share rose to $5.42 (+$0.03 QoQ) on modest unrealized gains, while deployment was light and repayments continued; total investment income (revenue) fell 34% YoY to $4.37m and NII before taxes was $0.7m ($0.05/share) .
Dividend maintained at $0.12/share (payable May 16), and board also declared $0.12 for the June quarter on April 15; management does not expect Q3’s dividend to include return of capital .
Credit quality improved: nonaccruals reduced to 2 investments (~1.7% of FV) vs 5 (~3.6%) last quarter; management highlighted limited direct tariff exposure (<20% of portfolio) with active mitigation by companies .
Estimate context (S&P Global): revenue was roughly in line (actual ~$4.37m vs ~~$4.41m est), while EPS (S&P’s “Primary EPS”) missed (~~$0.035 actual vs $0.05 est; 1 estimate); management reported GAAP EPS of $0.15 and NII/share of $0.05 before taxes* . Values retrieved from S&P Global.
Potential stock catalysts: ongoing reduction in nonaccruals and stable dividend/NAV trajectory; offsets include subdued origination, softer NII vs S&P EPS proxy, and one-analyst coverage .

What Went Well and What Went Wrong

What Went Well
- NAV stability and credit cleanup: “We have significantly reduced the number of nonaccruals … to ~1.7% of total portfolio at fair value,” improving from ~3.6% prior quarter .
- Dividend maintained with improving portfolio metrics: base dividend of $0.12/share declared; weighted average yield on debt at cost rose to 10.78% from 10.36% in Dec quarter .
- Portfolio discipline and liquidity: first-lien 77%, 98% floating, and $44m revolver capacity with ~$13m cash (incl. ~$10.7m restricted), supporting select deployment .
What Went Wrong
- Top-line/NII pressure on lower activity and repayments: total investment income fell to $4.37m (from $6.62m YoY); NII before taxes was $0.7m ($0.05/share) as deployment lagged and repayments persisted .
- Estimate miss on S&P EPS proxy: S&P “Primary EPS” actual (~$0.035) below ~0.05 estimate (1 est.) despite reported GAAP EPS of $0.15 and NII/share of $0.05 before taxes* . Values retrieved from S&P Global.
- Expense drag and scale: analyst Q&A flagged overhead and fee allocation; adviser noted fee waivers are considered and platform scaling is expected to absorb overhead over time .

Financial Results

Revenue, EPS and NII – YoY and Sequential (USD unless noted)

Metric	Q3 2024 (Mar 31, 2024)	Q2 2025 (Dec 31, 2024)	Q3 2025 (Mar 31, 2025)
Total Investment Income (“Revenue”) ($mm)	$6.62	N/A	$4.37
NII Before Taxes ($mm)	$2.19	$0.80	$0.68
NII After Taxes ($mm)	$2.08	N/A	$0.60
NII/Share (before taxes)	N/A	$0.06	$0.05
GAAP EPS (Earnings per share)	$0.17	$(0.04) (net decrease in net assets/share)	$0.15
NAV/Share (period-end)	N/A	$5.39	$5.42

Sequential operating/portfolio metrics

KPI	Q1 2025 (Sep 30, 2024)	Q2 2025 (Dec 31, 2024)	Q3 2025 (Mar 31, 2025)
Weighted Avg Yield on Debt (at cost)	10.51%	10.36%	10.78%
Investment Portfolio FV ($mm)	$190.14	$191.6	$192.45
Number of Portfolio Companies	45	43	43
Gross / Net Leverage	N/A	1.57x / 1.42x (prev. qtr)	1.53x / 1.37x

KPI & Portfolio activity (Q3 2025)

KPI	Q3 2025
New + follow-on investments at cost	$5.1m (1 new, 2 existing)
Repayments/sales/amortization proceeds	$7.3m
Net advances on DDTL/revolvers	$0.503m
Weighted avg yield on new debt (origination)	10.22%
Realizations IRR	9.55%
First-lien / Equity & Other mix	77.04% / 22.96%
Floating-rate debt share	98.18%
Cash (restricted)	$13.0m ($10.7m restricted)
Revolver capacity available	$44.0m

Top industry concentrations (FV, Q3 2025): Professional Services 15.5%, Containers & Packaging 9.2%, Trading Companies & Distributors 8.6%, Commercial Services & Suppliers 8.0%, IT Services 7.9% .

Non-GAAP/other notes: Base management fee waiver of ~$74k reduced expenses; incentive fee waiver none this quarter .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Base dividend/share	Q1 2025 (Mar 31, 2025)	$0.12	$0.12 (declared Mar 20; paid May 16)	Maintained
Base dividend/share	Q2 2025 (Jun 30, 2025)	N/A	$0.12 (declared Apr 15; paid Jun 14)	Initiated for period
ROC expectation	Q1 2025 dividend	Not specified	Company does not expect ROC for Q1 2025 dividend	Clarified
Other financial guidance	—	—	No formal revenue/expense/margin guidance provided	—

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
Credit quality / nonaccruals	Q1: resilient portfolio; Q2: improvement vs prior qtr	Nonaccruals down to ~1.7% FV (2 investments) from ~3.6% (5 investments) prior quarter	Improving
Tariffs/macro	Q2: monitoring tariffs; yields ~10.5% steady; spreads not widening	Direct tariff exposure estimated <20% at announcement; portfolio companies mitigating via pricing/suppliers; minimal direct exposure	Managed risk
Deployment/origination	Q2: selective; pipeline cautious	Lower activity; M&A/financing slower; patience and selectivity; new deals yield ~10.2%	Subdued but disciplined
Spreads / rates	Q2: spreads stable; yields ~10.5%	Seeing 25–50 bps spread widening on new opportunities; SOFR curve drifting down; net effect keeps asset yields relatively flat near term	Slightly constructive
Platform scale/costs	Q2: leverage higher gives flexibility; dividend sustainability discussed	Adviser can waive fees; scaling private credit platform to absorb overhead; raising new pools of capital (2H 2025)	Scaling underway
Capital returns	—	Buybacks discussed; “tool we consider” but no program at Q3; later authorized in Aug (post-period)	Under consideration

Management Commentary

“We have significantly reduced the number of nonaccruals and now have just 2 investments in nonaccrual status, representing approximately 1.7% of the total portfolio at fair value… down from 5 investments and 3.6% of fair value in the previous quarter.” — Suhail Shaikh, CEO .
“We estimate that less than 20% of our portfolio may experience moderate direct effects from tariffs… [Companies] are actively implementing mitigation strategies, including passing through price increases, switching to diversifying suppliers and improving supply chain efficiency.” — Suhail Shaikh .
“As that [platform scaling] happens, there will be a natural absorption of overhead and expenses that the adviser is going to bear, which will help the BDC… Now we’re very focused on… expenses and increasing NII every which way possible.” — Suhail Shaikh .
“We are currently in the process of raising another pool of capital… it is a second half 2025 event.” — Suhail Shaikh .
Press release: “This quarter reflects the progress of our disciplined approach—resolving legacy issues, strengthening the portfolio, and positioning ICMB to navigate a more cautious market environment.” — Suhail A. Shaikh .

Q&A Highlights

Expense and fee structure: Management open to fee waivers and emphasized scaling of Investcorp’s private credit platform as a path to absorb overhead and support NII; focus remains on cost discipline and earnings improvement .
Capital raising: Not for the BDC; raising equity for other vehicles to expand the platform and spread overhead; targeted for 2H 2025 .
Share repurchases: Considered as a tool; no active plan at the time of the call; later authorized in August post-period .
NII trajectory: With spread widening of 25–50 bps on new opportunities and a declining SOFR curve, near-term asset yields expected relatively flat; modest NII lift possible from deployment holding other factors constant .

Estimates Context

S&P Global consensus (limited coverage, 1 estimate) versus reported results:

Metric	Q2 2025 (Dec 31, 2024) Estimate	Q2 2025 Actual	Q3 2025 (Mar 31, 2025) Estimate	Q3 2025 Actual
Revenue ($)	5,318,300*	4,545,199*	4,409,600*	4,368,764
EPS (“Primary EPS”)	0.10*	0.0419*	0.05*	0.03523*

ICMB also reported GAAP EPS of $0.15 for Q3 2025 and NII/share of $0.05 (before taxes) .
Takeaway: Revenue roughly in line with S&P consensus for Q3; S&P’s EPS proxy missed. Note definitional differences: S&P “Primary EPS” appears closer to after-tax NII/share than GAAP EPS. Values retrieved from S&P Global.

Key Takeaways for Investors

Credit cleanup is gaining traction: nonaccruals fell meaningfully QoQ with limited direct tariff exposure; this supports NAV stability and dividend sustainability if maintained .
Near-term NII likely range-bound: modest spread widening on new originations vs a lower SOFR path implies relatively flat asset yields; deployment pace is the swing factor .
Dividend held at $0.12/share; management does not expect ROC for Q3’s dividend; monitor future coverage versus NII and platform cost absorption .
Liquidity and balance sheet provide flexibility: ~$44m revolver capacity, ~$13m cash, gross/net leverage 1.53x/1.37x; room to fund select opportunities and manage through repayments .
Watch for 2H 2025 platform developments: adviser capital raises and potential overhead absorption may be catalysts for improved run-rate NII and/or corporate actions (e.g., buybacks) .
Estimate reset risk: one-analyst coverage and definitional gaps (GAAP EPS vs S&P “Primary EPS”) can drive perceived “misses”; focus on NII/share and dividend coverage trends .
Trading implication: Credibility on credit work (nonaccrual reduction) plus stable payouts can support multiple, but low origination/NII softness may cap near-term upside until deployment accelerates .

Citations:

Q3 2025 8-K and EX-99.1 (results, statements of operations, NAV, portfolio metrics, dividend): .
Q3 2025 press release: .
Q3 2025 earnings call: .
Q2 2025 press release (Dec 31, 2024): .
Q1 2025 press release (Sep 30, 2024): .
Post-period Q4 2025 press release (context for subsequent authorization): .

Note: All S&P Global consensus/actual estimates marked with an asterisk (*) are Values retrieved from S&P Global.

Investcorp Credit Management BDC, Inc. (ICMB)·Q3 2025 Earnings Summary