SLR Investment Corp.

For Q2 2026, SLRC reported gross investment income of $48.8 million versus $49.3 million in Q1, expenses of $31.1 million versus $31.4 million, net investment income of $17.8 million or $0.33 per average share, and net income of $0.15 per share. Net unrealized losses were $9.5 million versus $700 thousand in the prior quarter, producing a net increase in net assets from operations of $8.3 million versus $17.1 million in Q1. NAV per share was $18.00 at June 30 versus $18.16 at March 31. Forward, management said it expects another solid quarter of originations with a similar weighting toward specialty finance, and said several growth initiatives are expected to lift NII over the next year; the board also declared a quarterly distribution of $0.31 per share payable September 25, 2026.

Michael Stuart Gross framed the quarter around discipline and a long-running shift toward specialty finance as a differentiator in a more challenging direct lending market. He stressed that the company is seeing less competition in specialty finance, better structure protection, and more liquid collateral, and said nearly all new originations last quarter were in specialty finance with that trend continuing in Q3. His tone was confident and strategic, emphasizing patience, portfolio churn as a positive, and more than $900 million of available capital to deploy.

Shiraz Kajee highlighted a stable balance sheet and funding profile: approximately $1.16 billion of debt outstanding, net debt to equity of 1.16x, and debt capital that is more than 40% unsecured. He noted total revolving commitments of $995 million after a $25 million increase in Q2, along with three unsecured maturities coming due in December 2026, January 2027, and March 2027. He also walked through the P&L and reiterated the dividend, saying SLRC remains well positioned to fund commitments and future portfolio growth.

Analysts focused on returns and leverage from the specialty finance mix, and management said around 11% asset-level yield remains a good target, with some cash flow opportunities in the 9s and specialty finance opportunities in the 12s. On leverage, Bruce Spohler said the company has been comfortable moving toward the higher end of its range, but repayments have kept leverage near 1.15x. Questions also centered on life sciences, AI, and sourcing; management said biotech and life sciences are improving, the team is leaning in, AI is more of an efficiency tool than a replacement in ABL, and sourcing is being expanded through regional bank relationships, partnerships, and tuck-in acquisitions.