Investment Strategy and Objectives - Fidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies with revenues between $10.0 million and $150.0 million[315]. - The investment objective is to generate attractive risk-adjusted returns through current income from debt investments and capital appreciation from equity investments[320]. - Investments typically range from $5.0 million to $35.0 million per portfolio company, with a focus on maintaining a diversified investment portfolio[320]. - The company aims to mitigate potential adverse economic effects by maintaining a diversified portfolio of investments[315]. Debt Investments - Fidus Investment Corporation's first lien debt investments are secured by a first priority lien on existing and future assets of the borrower[321]. - The majority of debt investments provide for a variable interest rate, generally with a prime or SOFR floor[322]. - Subordinated debt investments typically rank junior to first and second lien debt but senior to common and preferred equity in the capital structure[324]. - As of September 30, 2025, 72.0% of the debt investment portfolio, or $755.3 million, bore interest at a variable rate[330]. - First lien debt accounted for 72.1% of the fair value of the investment portfolio as of September 30, 2025, totaling $859.3 million[333]. Equity Investments - Equity investments may include direct minority equity investments or warrants to buy a minority equity interest, often made in conjunction with debt investments[325]. Financial Performance - For the nine months ended September 30, 2025, the company invested $284.5 million in debt and equity investments, compared to $274.2 million in the same period of 2024, reflecting a 4.7% increase[328]. - The company received proceeds from sales or repayments of $203.3 million in the nine months ended September 30, 2025, up from $154.1 million in 2024, representing a 32% increase[328]. - Total investment income for the three months ended September 30, 2025, was $37.3 million, a decrease of $1.1 million or 2.9% from $38.4 million in the same period of 2024[343]. - For the nine months ended September 30, 2025, total investment income increased to $113.7 million, up $5.0 million or 4.6% from $108.7 million in 2024[346]. - Net investment income decreased by $4.0 million, or 18.9%, to $17.4 million for the three months ended September 30, 2025, due to a decrease in total investment income[353]. - Net investment income for the nine months ended September 30, 2025, decreased by $1.8 million, or 3.2%, to $54.2 million[354]. Expenses and Losses - Total expenses, including income tax provision, for the three months ended September 30, 2025, were $19.9 million, an increase of $2.9 million or 17.2% from $17.0 million in 2024[346]. - The total net realized loss on investments for the three months ended September 30, 2025, was $(0.9) million, while the nine-month total was $4.8 million[355]. - The net change in unrealized appreciation for the three months ended September 30, 2025, was $3.4 million, compared to a depreciation of $(4.6) million in the same period of 2024[357]. Portfolio and Valuation - As of September 30, 2025, the fair value of the investment portfolio totaled $1.2 billion, consisting of 92 active portfolio companies, compared to $1.1 billion and 87 companies as of December 31, 2024[330][331]. - The weighted average yield on debt investments was 13.0% as of September 30, 2025, slightly down from 13.3% as of December 31, 2024[332]. - The weighted average investment rating of the portfolio as of September 30, 2025, was 2.0 on a fair value basis, unchanged from December 31, 2024[340]. - The fair value of portfolio investments is determined using a multi-step valuation process, with independent third-party valuation firms consulted for 34.1% and 27.5% of total portfolio investments as of September 30, 2025, and December 31, 2024, respectively[383]. Cash and Capital Management - As of September 30, 2025, the company had $62.3 million in cash and cash equivalents, with total net assets of $711.0 million[359]. - The company anticipates funding its investment activities through a combination of additional debt and equity capital[361]. - The company paid cash dividends to stockholders totaling $56.5 million during the nine months ended September 30, 2025[360]. Debt and Borrowing - The company has received SBIC licenses for Fund III and Fund IV, which will enhance returns to stockholders through the sale of SBA-guaranteed debentures[317]. - The company repaid $28.5 million of SBA debentures during the nine months ended September 30, 2025, with remaining outstanding SBA debentures maturing from 2029 to 2036[359]. - The company had $15.0 million in outstanding borrowings under the Revolving Credit Facility as of September 30, 2025, which was terminated after the fiscal quarter[366][367]. - The weighted average interest rates for SBA debentures and the Notes were 4.139% and 4.885%, respectively, as of September 30, 2025[373]. Market Conditions and Risks - The company is closely monitoring market volatility and its potential impact on portfolio companies amid economic uncertainties, including elevated interest rates and geopolitical instability[339]. - The Federal Reserve reduced its benchmark interest rate by 0.25% in September and October 2025, lowering it to the 3.75% to 4.00% range[410]. Recent Investments and Transactions - The Company invested $16.0 million in first lien debt and $1.0 million in common equity in Bobcat of Connecticut, LLC on October 1, 2025[398]. - On October 17, 2025, the Company invested $23.2 million in first lien debt in GPS Insight, Inc.[399]. - The Company realized a gain of approximately $2.3 million from exiting its preferred and common equity investments in Aldinger Company[399]. - The company issued an additional $100.0 million in March 2030 Notes on October 3, 2025, bringing the total outstanding principal amount to $200.0 million[401]. - The company issued an additional $3.5 million and $13.0 million in SBA debentures on October 14 and 21, 2025, respectively, with fixed interim interest rates of 4.74% and 4.73% until March 2026[402].

Investment Income - Total investment income for Q3 2025 was $37.3 million, a decrease of 2.9% compared to $38.4 million in Q3 2024[4] - Net investment income decreased by 18.9% to $17.4 million, or $0.49 per share, down from $21.4 million, or $0.64 per share in the same period last year[8] - Adjusted net investment income was $17.7 million, or $0.50 per share, compared to $20.4 million, or $0.61 per share in Q3 2024, reflecting a 13.2% decline[6] - Net investment income for the three months ended September 30, 2025, was $17,369,000, compared to $21,411,000 for the same period in 2024, reflecting a decrease of approximately 18.5%[32] - Adjusted net investment income for the three months ended September 30, 2025, was $17,723,000, down from $20,424,000 in 2024, reflecting a decline of 13.3%[36] - For the nine months ended September 30, 2025, net investment income totaled $54,219,000, slightly down from $55,988,000 in 2024, a decrease of 3.2%[36] - Adjusted net investment income for the nine months ended September 30, 2025, was $56,191,000, compared to $56,930,000 in 2024, a decline of 1.3%[36] Investment Activity - The company invested $74.5 million in debt and equity securities during the quarter, including one new portfolio company[4] - Subsequent to the quarter end, the company invested $40.2 million in two new portfolio companies, indicating a strong pipeline for future investments[3] Asset and Portfolio Valuation - As of September 30, 2025, the net asset value (NAV) was $711.0 million, or $19.56 per share[4] - The fair value of the investment portfolio totaled $1.2 billion, consisting of 92 active portfolio companies[10] - Total assets increased to $1,277,748,000 as of September 30, 2025, compared to $1,164,112,000 on December 31, 2024, representing a growth of approximately 9.7%[30] - Total investments at fair value rose to $1,192,748,000, up from $1,090,506,000, indicating an increase of about 9.4%[30] - Net asset value per common share increased to $19.56 as of September 30, 2025, from $19.33 at the end of 2024, a rise of approximately 1.2%[30] Expenses and Liabilities - Total expenses for Q3 2025 were $19.9 million, an increase of 17.2% from $17.0 million in Q3 2024[7] - Interest and financing expenses increased to $7,649,000 for the three months ended September 30, 2025, compared to $6,026,000 in 2024, an increase of approximately 26.9%[32] - The total liabilities increased to $566,714,000 as of September 30, 2025, from $508,446,000 at the end of 2024, representing a rise of approximately 11.5%[30] Dividends - The company declared total dividends of $0.50 per share for Q4 2025, consisting of a base dividend of $0.43 and a supplemental dividend of $0.07[13] - The company declared dividends of $0.57 per share for the three months ended September 30, 2025, consistent with the same period in 2024[32] Realized Losses - The company reported a net realized loss on investments of $930,000 for the three months ended September 30, 2025, compared to a loss of $366,000 in 2024[32] - The capital gains incentive fee expense for the three months ended September 30, 2025, was a reversal of $354,000, compared to an expense of $(987,000) in 2024[36] - The capital gains incentive fee expense for the nine months ended September 30, 2025, was $1,972,000, up from $942,000 in 2024[36]

Core Insights - Fidus Investment Corporation reported strong portfolio performance in Q3 2025, with adjusted net investment income covering the base dividend [3][9] - The company declared a base dividend of $0.43 and a supplemental dividend of $0.07 per share for Q3 2025, payable on December 29, 2025 [15][16] - Total investment income decreased by 2.9% year-over-year to $37.3 million, while net investment income fell by 18.9% to $17.4 million [6][9] Financial Highlights - Total investment income for Q3 2025 was $37.3 million, down from $38.4 million in Q3 2024 [6][7] - Net investment income was $17.4 million, or $0.49 per share, compared to $21.4 million, or $0.64 per share in the same period last year [6][9] - Adjusted net investment income was $17.7 million, or $0.50 per share, down from $20.4 million, or $0.61 per share in Q3 2024 [6][9] Investment Activity - Fidus made net originations of $37.8 million during the quarter and invested $40.2 million in two new portfolio companies post-quarter [3][11] - The fair value of the investment portfolio was $1.2 billion, consisting of 92 active portfolio companies [11][12] - The company invested $8.5 million in first lien debt and $4.3 million in preferred equity in Sogno Toscano LLC, a new portfolio company [13] Capital Resources - As of September 30, 2025, Fidus had $62.3 million in cash and cash equivalents and $125.0 million of unused capacity under its senior secured revolving credit facility [14] - The weighted average interest rate on total debt outstanding was 4.9% [14] - The company fully redeemed $100.0 million in January 2026 Notes on November 3, 2025 [26] Portfolio Performance - The net asset value (NAV) was $711.0 million, or $19.56 per share, as of September 30, 2025, compared to $655.7 million, or $19.33 per share at the end of 2024 [6][34] - The weighted average yield on debt investments was 13.0% as of September 30, 2025 [12]

Group 1 - The objective of investing is to create a stress-free portfolio that generates cash flow for consumption without reliance on a payroll [1] Group 2 - Roberts Berzins has over a decade of experience in financial management, assisting top-tier corporates in shaping financial strategies and executing large-scale financings [2] - Significant efforts have been made to institutionalize the REIT framework in Latvia to enhance the liquidity of pan-Baltic capital markets [2] - Contributions include the development of national SOE financing guidelines and frameworks for channeling private capital into affordable housing [2] - Roberts is a CFA Charterholder and holds an ESG investing certificate, with experience from an internship at the Chicago Board of Trade [2] - Actively involved in thought-leadership activities to support the development of pan-Baltic capital markets [2]

Core Points - Fidus Investment Corporation will report its third quarter 2025 financial results on November 6, 2025, after market close [1] - A conference call to discuss the results will be held on November 7, 2025, at 9:00 am ET [2] - A live webcast of the conference call will be available, with a replay accessible two hours after the call [3] Company Overview - Fidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies, defined as U.S. companies with revenues between $10 million and $150 million [4] - The company's investment objective is to generate attractive risk-adjusted returns through current income from debt investments and capital appreciation from equity-related investments [4] - Fidus is an externally managed, closed-end, non-diversified management investment company, treated as a business development company under the Investment Company Act of 1940 [4] - The company was formed in February 2011 and is licensed by the U.S. Small Business Administration as a Small Business Investment Company (SBIC) [4]

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Fidus Investment (FDUS) due to lower revenues, with actual results being crucial for stock price movement [1][3]. Earnings Expectations - Fidus Investment is expected to report quarterly earnings of $0.50 per share, reflecting an 18% decrease year-over-year [3]. - Revenues are projected to be $36.96 million, down 3.7% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.42% lower in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Fidus Investment is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.34% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [9][10]. - Fidus Investment currently holds a Zacks Rank of 4, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Fidus Investment exceeded expectations by delivering earnings of $0.57 per share against an expected $0.53, resulting in a surprise of +7.55% [13]. - The company has beaten consensus EPS estimates in the last four quarters [14]. Conclusion - Fidus Investment does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, but other factors should also be considered for investment decisions [17].

Group 1 - Business Development Companies (BDCs) are financial vehicles that aim to source capital at low costs and lend it at higher yields to businesses that cannot access traditional banking services [1] Group 2 - Roberts Berzins has over a decade of experience in financial management, focusing on helping corporates with financial strategies and large-scale financings [2] - He has contributed to institutionalizing the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [2] - His work includes developing national SOE financing guidelines and frameworks for channeling private capital into affordable housing [2]

Market Overview - U.S. stock futures showed mixed results, with Dow futures declining approximately 0.1% [1] Company-Specific Movements - Fidus Investment Corp (NASDAQ:FDUS) experienced a significant drop of 2.6%, trading at $19.80 in pre-market after announcing a $100 million public offering of 6.750% notes due 2030 [1] - Bolt Biotherapeutics Inc (NASDAQ:BOLT) shares fell sharply by 13.4% to $4.90 following an update on BDC-4182 and an extension of its cash runway into 2027 [3] - Equifax Inc (NYSE:EFX) saw a decline of 10.9%, trading at $226.00, after Seaport Global initiated coverage with a Neutral rating [3] - TransUnion (NYSE:TRU) shares dropped 8.8% to $75.00, also receiving a Neutral rating from Seaport Global [3] - Lithium Americas Corp (NYSE:LAC) fell 5% to $6.69 after a previous increase of 23% on Wednesday [3] - Erasca Inc (NASDAQ:ERAS) shares decreased by 3.2% to $2.14 in pre-market trading [3] - Petco Health and Wellness Company Inc (NASDAQ:WOOF) declined 3.1% to $3.79 [3] - Rocket Companies Inc (NYSE:RKT) slipped 3.1% to $18.99, with Western Union set to replace Mr. Cooper Group Inc. in the S&P SmallCap 600 effective prior to trading on October 6 [3]

Market Overview - U.S. stock futures showed mixed results, with Dow futures declining approximately 0.1% on Thursday [1] Company-Specific Movements - Fidus Investment Corp (NASDAQ:FDUS) experienced a significant drop of 2.6%, trading at $19.80 in pre-market after announcing a $100 million public offering of 6.750% notes due 2030 [1] - Bolt Biotherapeutics Inc (NASDAQ:BOLT) shares plummeted 13.4% to $4.90 following an update on BDC-4182 and an extension of its cash runway into 2027 [3] - Equifax Inc (NYSE:EFX) fell 10.9% to $226.00 after Seaport Global analyst John Mazzoni initiated coverage with a Neutral rating [3] - TransUnion (NYSE:TRU) saw a decline of 8.8%, trading at $75.00, also receiving a Neutral rating from Seaport Global [3] - Lithium Americas Corp (NYSE:LAC) dropped 5% to $6.69 after a notable increase of 23% on the previous day [3] - Erasca Inc (NASDAQ:ERAS) fell 3.2% to $2.14 in pre-market trading [3] - Petco Health and Wellness Company Inc (NASDAQ:WOOF) decreased by 3.1%, trading at $3.79 [3] - Rocket Companies Inc (NYSE:RKT) slipped 3.1% to $18.99, with the announcement that Western Union will replace Mr. Cooper Group Inc. in the S&P SmallCap 600 effective prior to the opening of trading on October 6 [3]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]