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PhenixFIN Corp (PFX)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 total investment income was $6.16M and net investment income (NII) was $1.16M; GAAP EPS was $(0.74) due to $12.0M net realized losses partially offset by $9.28M net unrealized gains .
  • Revenue beat S&P Global consensus ($6.16M actual vs $6.02M estimate); Primary EPS also exceeded consensus ($0.57 vs $0.54). By contrast, GAAP EPS posted a loss given realized losses from affiliates and portfolio actions, highlighting the divergence between NII-based metrics and GAAP [Values retrieved from S&P Global]* .
  • Sequentially, NAV/share declined to $78.20 from $78.72, reflecting negative net assets from operations of $(1.50)M despite stronger origination and repayments; weighted average portfolio yield increased to 12.66% .
  • Funding cost reduced: credit facility repriced to SOFR+2.50% and maturity extended to April 17, 2030, creating a durable tailwind for interest expense and NII going forward .
  • Potential stock reaction catalysts: revenue/NII beats vs consensus, funding cost improvement, and portfolio monetization offset by GAAP loss and modest NAV decline [Values retrieved from S&P Global]* .

What Went Well and What Went Wrong

What Went Well

  • “We had a strong origination quarter…multiple portfolio companies repay and monetized one of our last remaining legacy investments,” with total investment income at $6.16M and fee income of $0.68M supporting NII .
  • Funding tailwind: facility amended to $100mm (with $50mm accordion), pricing cut to SOFR+2.50%, and maturity extended to 2030, positioning for lower interest expense and improved NII over time .
  • Weighted average yield improved to 12.66% on debt and other income-producing investments, up from 11.82% in Q2, supporting core earnings power .

What Went Wrong

  • GAAP EPS was $(0.74) driven by $12.0M net realized losses (primarily affiliated) offset by $9.28M unrealized gains, resulting in negative net assets from operations of $(1.50)M .
  • NAV/share declined to $78.20 from $78.72 sequentially and from $80.59 in Q1, indicating continued pressure on book amid realized losses and market movements .
  • Expenses remained elevated at $5.00M with interest and financing expense of $2.66M, constraining NII margin (18.8%) relative to prior-year Q3 (31.8%) .

Financial Results

MetricQ3 2024Q2 2025Q3 2025
Total Investment Income ($USD Millions)$6.23 $6.02 $6.16
Net Investment Income ($USD Millions)$1.98 $0.97 $1.16
GAAP EPS ($USD)$0.03 $(0.44) $(0.74)
NII Margin %31.8% 16.0% 18.8%
Total Expenses ($USD Millions)$4.25 $5.05 $5.00
NAV per Share ($USD)—$78.72 $78.20
Net Increase (Decrease) in Net Assets from Operations ($USD Millions)$0.07 $(0.90) $(1.50)
Investment Income BreakdownQ3 2024Q2 2025Q3 2025
Interest Income - Cash (Non-controlled, non-affiliated) ($)$2,971,965 $2,957,380 $3,758,928
Interest Income - PIK (Non-controlled, non-affiliated) ($)$231,113 $263,784 $213,590
Interest Income - Cash (Affiliated) ($)$10,682 $0 $0
Interest Income - Cash (Controlled) ($)$650,244 $626,790 $607,929
Interest Income - PIK (Controlled) ($)$334,398 $0 $0
Dividend Income (Non-controlled, non-affiliated) ($)$531,151 $378,232 $247,322
Dividend Income (Affiliated) ($)$0 $111,736 $0
Dividend Income (Controlled) ($)$982,903 $1,580,616 $617,056
Interest from Cash & Equivalents ($)$147,127 $45,812 $27,804
Fee and Other Income ($)$375,363 $29,673 $684,330
KPIsQ1 2025Q2 2025Q3 2025
NAV ($mm)$162.77 $158.99 $156.69
NAV per Share ($)$80.59 $78.72 $78.20
Portfolio Fair Value ($mm)$300.09 $286.84 $294.44
Portfolio Companies (#)43 36 34
Weighted Avg Yield (%)13.3% 11.82% 12.66%
Non-accrual (FMV, #)$1.5M; 3 co’s $1.4M; 2 co’s Not disclosed
Cash & Equivalents ($mm)$7.19 $8.69 $7.27
Credit Facility Outstanding ($mm)$84.0 $79.6 $87.0
Unsecured Notes ($mm)$59.2 $59.2 $59.2

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Credit Facility PricingQ3 2025SOFR+2.90% SOFR+2.50% (maturity extended to 4/17/2030) Lowered cost; extended term
DividendQ2 2025None disclosedSpecial dividend $1.43/share; paid 2/19/2025 (record 2/17/2025) Announced one-time payout
Financial Guidance (Revenue/Margins)Q3 2025Not providedNot providedMaintained N/A stance

Earnings Call Themes & Trends

No earnings call transcript located for Q3 2025; Q&A themes unavailable [functions.ListDocuments result].

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
Origination & Repayments“Growing our platforms…pursuing compelling investment opportunities” (Q1) ; “Robust opportunity set” (Q2) Strong origination; multiple repayments; monetized legacy investment Improving origination; active portfolio rotation
Funding Costs & LiquidityFacility upsize to $100mm; expectation of lower funding costs (SOFR+290→+250) (Q2) Facility pricing at SOFR+2.50%; maturity extended to 2030; $87.0M outstanding Structural tailwind to NII
Portfolio Yield13.3% (Q1) 11.82% (Q2) 12.66% (Q3)
NAV Trajectory$80.59/share (Q1) $78.72/share (Q2) $78.20/share (Q3)
NSG Integration & Portfolio ActionsNSG merger noted (Q1) —Monetized legacy investment; affiliated realized losses impacted GAAP
Non-accruals3 co’s ($1.5M FV) (Q1) 2 co’s ($1.4M FV) (Q2) Not disclosed (Q3)

Management Commentary

  • “We continue to see solid performance from the portfolio despite a more volatile macro environment…strong origination…multiple portfolio companies repay and monetized one of our last remaining legacy investments.” – CEO David Lorber (Q3) .
  • “Expecting reduced overall interest expense savings with our facility funding costs declining to SOFR+250 from SOFR+290…great time given the robust opportunity set.” – CEO David Lorber (Q2) .
  • “Focused on executing…growing our platforms, pursuing compelling investment opportunities and increasing NAV per share.” – CEO David Lorber (Q1) .

Q&A Highlights

  • No Q3 2025 earnings call transcript or Q&A available in the document set, and no additional call materials were found [functions.ListDocuments result].

Estimates Context

MetricQ3 2024Q2 2025Q3 2025
Revenue Consensus Mean ($USD)$5,171,000*$6,516,000*$6,019,000*
Actual Revenue ($USD)$6,234,946 $6,019,023 $6,156,959
Primary EPS Consensus Mean ($)$0.65*$0.82*$0.54*
Primary EPS Actual ($)$0.9804*$0.4783*$0.5738*
GAAP EPS ($)$0.03 $(0.44) $(0.74)
  • Bolded outcomes: Q3 2025 revenue beat vs consensus by ~$0.14M; Q3 2025 Primary EPS beat by ~$0.03; GAAP EPS negative vs prior year’s positive [Values retrieved from S&P Global]* .
  • Note: S&P “Primary EPS” reflects a normalized measure typically aligned with NII/share for BDCs, which can diverge from GAAP EPS when realized/unrealized gains/losses are significant [Values retrieved from S&P Global]* .

Key Takeaways for Investors

  • Core earnings power intact: NII of $1.16M and improving yield (12.66%) despite macro volatility; revenue/Primary EPS beat indicates resilient income generation .
  • GAAP loss driven by portfolio actions: $12.0M realized losses (affiliated) vs $9.28M unrealized gains led to negative net assets from operations; monitor realized losses’ trajectory .
  • Funding tailwind: facility repriced to SOFR+2.50% and extended to 2030 should lower interest expense and support NII in coming quarters .
  • NAV drift: $78.20/share continues to trend down modestly; watch mark-to-market dynamics and realized loss cadence .
  • Portfolio rotation: strong origination and repayments plus monetization of legacy exposures suggest proactive portfolio management; assess impact on fee income and dividend streams .
  • Liquidity & leverage: $7.27M cash, $87.0M credit facility drawn, and $59.2M notes outstanding; balance sheet capacity remains to deploy into higher-yield opportunities .
  • Estimates likely to tighten: With revenue and NII beats, consensus may modestly raise forward NII expectations; GAAP EPS will remain sensitive to realized/unrealized outcomes [Values retrieved from S&P Global]* .

Notes:

  • Values marked with an asterisk are retrieved from S&P Global.