Sign in

You're signed outSign in or to get full access.

PC

PhenixFIN Corp (PFX)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 FY25 total investment income (revenue) was $6.019M, up 29% YoY but down 3% QoQ; net investment income (NII) was $1.0M; GAAP EPS was -$0.44 as realized/unrealized losses and a deferred tax expense outweighed positive NII .
  • Versus S&P Global consensus, revenue missed ($6.019M vs $6.516M*) and EPS materially missed (-$0.44 vs $0.82*); only one estimate was recorded for each metric* .
  • NAV/share declined to $78.72 from $80.59 in Q1 and $79.37 in Q4; portfolio fair value fell to $286.8M from $300.1M QoQ; non‑accruals improved to two investments ($1.4M FV) from three ($1.5M) QoQ .
  • Positive structural catalyst: credit facility upsized to $100M, extended to April 17, 2030, and pricing cut to SOFR+250 (from +290), which should lower funding costs amid a “robust opportunity set,” per management .

What Went Well and What Went Wrong

  • What Went Well

    • Facility renegotiation lowers cost of funds (SOFR+250 from +290), upsizes to $100M, extends to 2030—management frames this as timely given attractive market opportunities .
    • YoY growth solid: TII +29% YoY to $6.019M; NII rose vs the prior-year quarter ($1.0M vs $0.571M) .
    • Credit quality optics improved modestly: non‑accruals reduced to 2 investments with $1.4M FV vs 3 investments with $1.5M in Q1 .

  • What Went Wrong

    • GAAP EPS swung to a loss (-$0.44) due to net realized losses (-$1.065M), net unrealized losses (-$0.467M), and a deferred tax expense (-$0.330M) despite positive NII .
    • Revenue and EPS missed consensus (one estimate each): $6.019M vs $6.516M* and -$0.44 vs $0.82* respectively .
    • External ratings risk around insurance affiliates persists: AM Best maintained under‑review with negative implications for NSIC; ratings for certain subs affirmed at B/B- with stable outlooks, highlighting execution and capitalization needs at NSIC .

Financial Results

Core P&L and Per-Share

MetricQ4 2024 (oldest)Q1 2025Q2 2025 (newest)
Total Investment Income ($)$5,600,000 $6,216,483 $6,019,023
Net Investment Income ($)$500,000 $1,625,473 $965,975
GAAP EPS ($)N/A$1.22 $(0.44)
Net Increase (Decrease) in Net Assets from Operations ($)N/A$2,464,157 $(896,133)

Components of Total Investment Income (TII)

ComponentQ4 2024 (oldest)Q1 2025Q2 2025 (newest)
Interest Income ($)N/A$3,767,470 $3,847,954
Dividend Income ($)N/A$2,138,143 $2,070,584
Interest from Cash & Equivalents ($)N/A$227,032 $45,812
Fee Income ($)N/A$11,064 $29,673
Other Income ($)N/A$72,774 $25,000
Total Investment Income ($)$5,600,000 $6,216,483 $6,019,023

Profitability and Drivers

MetricQ4 2024 (oldest)Q1 2025Q2 2025 (newest)
Total Expenses ($)$5,100,000 $4,591,010 $5,053,048
Interest & Financing Expense ($)N/A$2,545,811 $2,578,963
Net Realized Gains (Losses) ($)N/A$1,168,670 $(1,065,013)
Net Change in Unrealized Gains (Losses) ($)N/A$(329,986) $(467,459)
Deferred Tax Benefit (Expense) ($)N/A$0 $(329,636)

Balance Sheet and NAV

MetricQ4 2024 (oldest)Q1 2025Q2 2025 (newest)
Portfolio Fair Value ($)$227,915,858 $300,094,394 $286,842,937
NAV ($)$160,307,773 $162,771,930 $158,987,514
NAV per Share ($)$79.37 $80.59 $78.72
Cash & Equivalents ($)$67,571,559 $7,187,110 $8,689,461
Debt (Notes Principal) ($)$59,200,000 $59,200,000 $59,200,000
Credit Facility Outstanding ($)$78,100,000 $84,000,000 $79,600,000

Portfolio Quality & KPIs

KPIQ4 2024 (oldest)Q1 2025Q2 2025 (newest)
Non‑Accruals (FV, $)$2.4M; 3 investments $1.5M; 3 investments $1.4M; 2 investments
Weighted Avg Yield (Debt & Income-Producing)12.3% (FY end) 13.3% 11.82%
Portfolio Companies (count)41 43 36

Q2 2025 vs. S&P Global Consensus

MetricActualConsensus*Surprise
Revenue (TII) ($)$6,019,023 $6,516,000*-$497,000 (−7.6%)*
GAAP EPS ($)$(0.44) $0.82*-$1.26 (large miss)*
# of Estimates—1 (both revenue and EPS)*—

Values marked with * retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Financial Guidance (Revenue/Margins/OpEx)FY25N/ANo formal financial guidance providedMaintained: No guidance
Funding Cost (Credit Facility Spread)Effective Apr 17, 2025SOFR + 290 bpsSOFR + 250 bpsLowered funding cost
Credit Facility Size / MaturityEffective Apr 17, 2025Prior facilityUpsized to $100M; extended to 2030Improved capacity/tenor
DividendsQ2 FY25N/ASpecial dividend $1.43 per share paid Feb 19, 2025One-time distribution

Earnings Call Themes & Trends

Note: No Q2 FY25 earnings call transcript found in our dataset.

TopicPrevious Mentions (Q4 FY24 and Q1 FY25)Current Period (Q2 FY25)Trend
Cost of Funds / LiquidityFocused on liquidity; debt outstanding: notes $59.2M, facility $78.1M; strong cash at FY-end . Q1 showed facility draw $84.0M; cash $7.2M .Facility upsized to $100M, pricing to SOFR+250, extended to 2030; cash $8.7M; facility outstanding $79.6M; notes $59.2M .Improving cost structure/capacity
Portfolio Yield & ActivityFY24 yield 12.3% . Q1 yield 13.3% with 43 portfolio companies .Yield 11.82%; 36 portfolio companies (lower count) .Slightly lower yield; portfolio reshaping
Credit QualityNon‑accrual FV $2.4M (3) at FY-end ; Q1 $1.5M (3) .$1.4M (2) non‑accruals .Gradual improvement
NAV TrajectoryFY24 year-end NAV/share $79.37 . Q1 $80.59 .Q2 $78.72 (decline due to realized/unrealized losses, tax expense) .Down QoQ
Insurance Affiliate (NSG)Closed acquisition Oct 1, 2024 .AM Best actions: some subs affirmed with stable outlooks; NSIC still under review negative .Mixed; execution risk persists
Market Opportunity/ToneManagement positive on growth and strategy .“Robust opportunity set” emphasized alongside lower funding costs .Constructive

Management Commentary

  • “In light of the broader market volatility we are pleased with another solid quarter… on April 17th we closed on an extension and successful upsize of our credit facility to April 17, 2030 and $100 million… expecting reduced overall interest expense… funding costs declining to SOFR+250 from SOFR+290. This comes at a great time given the robust opportunity set we see in the current market environment.” — David Lorber, CEO .

Q&A Highlights

  • No Q2 FY25 earnings call transcript was available in our document set; therefore, there were no Q&A disclosures to analyze for this quarter.

Estimates Context

  • Q2 FY25 vs Consensus: Revenue $6.019M vs $6.516M*; GAAP EPS -$0.44 vs $0.82* — both misses, with EPS a significant downside surprise given realized/unrealized losses and deferred tax expense .
  • Q1 FY25 context: Revenue $6.216M vs $5.763M* (beat); EPS $1.22 vs $0.51* (beat), highlighting intra-year volatility around non‑operating investment marks .
  • Estimate depth: only 1 estimate for revenue and EPS in Q1/Q2 FY25, limiting robustness of consensus*.

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Funding tailwind: facility spread cut to SOFR+250, upsized to $100M, and extended to 2030 should ease interest expense and support deployment in what management calls a “robust” market opportunity .
  • Core earning power stable YoY but softer QoQ: TII rose +29% YoY to $6.019M, but dipped 3% QoQ; NII of $1.0M fell QoQ from $1.63M as expenses and financing costs remained elevated .
  • EPS volatility driven by marks/taxes: GAAP EPS -$0.44 reflected realized/unrealized losses and deferred tax expense; monitoring mark-to-market dynamics and tax effects is critical for quarter-to-quarter EPS volatility .
  • Credit quality optics modestly better: non‑accruals decreased (2 investments; $1.4M FV) vs Q1 (3; $1.5M), an incremental positive .
  • NAV pressure: NAV/share fell to $78.72 (from $80.59 in Q1), aligning with negative investment marks; the lower funding cost could help defend NAV through higher net income over time .
  • Insurance affiliate risk remains a watch item: AM Best actions are mixed; NSIC remains under review with negative implications pending recapitalization and performance improvement .
  • Near-term setup: Without formal guidance, the narrative hinges on deployment pace, credit outcomes, and cost-of-funds benefits; quarter-to-quarter EPS may remain volatile given realized/unrealized activity and tax items .

Citations: Q2 FY25 press release and 8‑K exhibit ; Q1 FY25 press release ; FY/Q4 FY24 8‑K ; AM Best press release .

Values marked with * retrieved from S&P Global.